FY 21 - DHS - purchase under SS conditions OBS - equipment & software for sorter equipment

This state and local contracting opportunity is for the Illinois Department of Human Services (DHS) to procure a new Apex front-end, Postjet printer, and 32 2-tier X-class pockets for the existing Criterion sorter equipment located in Springfield, Illinois. The procurement is a sole source awarded to Fluence Automation, LLC, as the original equipment manufacturer and the only provider of the required services, including maintenance, service, and equipment upgrades for this specific sorter. The sorter upgrade is needed due to the approaching end of serviceable life for the 11 Infinity Meters currently used, which are proprietary to Pitney Bowes. The new equipment from Fluence Automation is also proprietary, and the DHS has an existing Repair & Maintenance agreement that would cover the new equipment. The total cost for this sole source procurement is $405,780, and the justification cites operational similarities that will minimize staff training, as well as a projected 3% increase in qualified USPS pre-sort discounts, resulting in estimated annual savings of over $183,000.

This is a sole source procurement, meaning it is economically feasible for only one vendor - Fluence Automation - to provide the required goods and services. The DHS reached out to Fluence to explore using a NASPO ValuePoint contract, but determined there would be no cost savings to the state. A public hearing on the sole source procurement will be canceled unless an interested party submits written comments or requests a public hearing by Friday, December 4, 2020 at 4 p.m. The procurement is for the Illinois Department of Human Services, and there are no set-aside designations or restrictions on the types of organizations that can respond.