27-MedSelect License & Support SP w SS

The State of Illinois is soliciting a small purchase with sole source conditions for MedSelect proprietary software licenses and associated support services through the Department of Human Services and Department of Innovation and Technology. MedSelect is a medical item storage and tracking system protected by 24 U.S. patents held by ARxIUM, Inc., establishing ARxIUM as the exclusive supplier of all MedSelect equipment, proprietary software, software interfaces, interface engines, databases, add-on stations, and related support services in the United States. The procurement requires vendors to comply with comprehensive IT terms and conditions, cloud hosting security standards including SOC 2 Type 2 certification, AES-256 encryption for data at rest and in transit, 24-hour data breach notification protocols, Third-Party Risk Management program engagement, and Software Bill of Materials submission. Additionally, vendors must maintain detailed logging systems covering input/output validation, authentication, system events, privileged activities, and data access in accordance with state specifications, and must comply with the Illinois Information Technology Accessibility Act standards. The proposal due date is April 24, 2026, with the posting date of April 21, 2026, allowing an extremely limited submission window. Vendors are required to certify compliance with 34 distinct certification requirements covering legal, financial, ethical, and operational standards, including prohibitions against bribery, felony convictions, environmental violations, and collusion, as well as mandatory compliance with drug-free workplace policies, equal employment opportunity standards, and tax obligations.

This procurement is designated as a sole source acquisition, restricting eligibility to ARxIUM, Inc., as the only authorized vendor capable of providing the proprietary MedSelect system and its integrated support services. The sole source designation is based on ARxIUM's extensive patent portfolio (Patent Nos. 6,963,791 through 10,342,740) that protects the technology's unique design, functionality, and operational methods, thereby eliminating the requirement for competitive bidding. Vendors must provide their own equipment and supplies, with any State-provided equipment restricted to official State business only, and vendors are classified as independent contractors with no employee status or benefits. The State will not compensate vendors for travel, lodging, or meal expenses, and reserves the right to reduce amounts payable based on budgetary considerations at DHS's sole discretion, with DHS required to negotiate in good faith regarding corresponding reductions in supplies and services. For contracts exceeding one year in duration, vendors must recertify compliance annually by January 1 of each fiscal year and must maintain six-year record retention requirements if HIPAA protections apply. The specific contract award value or budget range is not provided in the available procurement documents.