Emergency Extension Notice - Revenue Enhancement Program

The Illinois Department of Children and Family Services is declaring an emergency extension of contract services for maintenance and development of federal-claiming application software and databases, with the extension running from August 24 through November 23, 2026, and an RFP for competitive procurement targeted for September 1, 2026. This is not a bid opportunity; it is a formal emergency extension to sustain critical services while DCFS rebuilds and reissues a solicitation after prior procurement planning failures.

The incumbent vendor, Diversified Services Network, will continue providing maintenance and support for complex application software and integrated IT systems in web-based and mainframe environments, including preparation and filing of quarterly Title IV-E reimbursement claims, Emergency Assistance claiming, Public Assistance Cost Allocation Plan maintenance, technical support for federal-claiming systems, first-level federal financial participation review, audit preparation and documentation review, and support for federal on-site reviews. DSN is 100% Business Enterprise Program (BEP) owned and satisfies the 25% BEP participation goal through all services provided.

The estimated extension contract amount is $762,111 with no scope change from the prior emergency contract. DCFS has declared three consecutive emergencies—the first on November 28, 2025, the second on February 26, 2026, and the current third on May 26, 2026—each triggered by structural deficiencies in the competitive procurement, including flawed evaluation methodology, incomplete scoring, and poor solicitation organization. DCFS acknowledges these failures reflect procurement planning and execution shortfalls. The extension serves as a checkpoint to allow DCFS to reconstruct the RFP from scratch and complete a competitive procurement while maintaining uninterrupted services. Service disruption would risk hundreds of millions in annual federal revenue, increase federal disallowance and penalty exposure, and result in loss of critical expertise.