DHS SS Mailroom R&M for Inserter Equipment

The state of Illinois, through the Department of Human Services (DHS), is procuring a 5-year Repair and Maintenance (R&M) agreement for four automated intelligent Producer Inserters utilized by the Office of Business Services (OBS) Mail Processing Unit (MPU). The R&M agreement will provide all required repair and maintenance services, software updates/installations, sorting software subscriptions, and monthly preventative maintenance services on the equipment, with the work being performed by a dedicated Resident Technician housed on-site. The services include making repairs, technical adjustments, and replacing and/or cleaning parts using only Original Equipment Manufacturer (OEM) parts. The estimated contract term is from July 1, 2023 to June 30, 2028, with an actual value of the initial 5-year term of $1,734,420. DHS invested nearly $3M in FY22 to purchase the new inserting equipment through a competitive bid process, with Bell & Howell emerging as the winning vendor. Failing to secure this R&M agreement would result in the interruption or loss of benefits to customers/clients, loss of Federal funding, fines, lawsuits, and wasted capital investment.

This is a sole source procurement, as Bell & Howell holds proprietary rights to the equipment, parts, components, and software, making them the only vendor capable of providing the required maintenance and support services. The hearing will be canceled unless an interested party submits written comments or requests a public hearing by June 16, 2023. If a public hearing is held, the purchasing agency will present testimony justifying the sole source procurement, and interested parties may present testimony for or against the award. The incumbent vendor for this contract is Bell & Howell Group Holdings, and no other pricing, set-aside, or funding details are provided.