FY27 BPCSS RX Works-Sole Source

The State of Illinois, through the Department of Human Services (IDHS), Bureau of Pharmacy and Clinical Support, is procuring RxWorks Pro Software with Maintenance and Support from ARxIUM, Inc. via sole source award. This procurement covers software licensing, annual maintenance and support services, and Electronic Data Interface (EDI) transaction services for the RxWorks drug inventory management system serving 14 state-operated Mental Health and Developmental Disabilities center pharmacies. The deliverables include annual license fees for the core single-site installation and 11 additional locations, an in-transit module, and EDI annual transaction fees necessary to facilitate all inventory management, drug ordering, and pharmaceutical receipt processes across the designated facilities. The justification for sole source procurement is predicated on the proprietary nature of the RxWorks system, which can only be maintained and updated by ARxIUM as the exclusive intellectual property owner, combined with the system's extensive customization to meet IDHS's strict medication handling policies and its incompatibility with alternative off-the-shelf products. The contract term runs from July 1, 2026, through June 30, 2027, for one year with no renewal options specified. The public hearing is scheduled for May 13, 2026, at 2:00 PM via WebEx, and interested parties must submit written comments or requests for a public hearing by 4:00 PM on May 8, 2026, to Dianne Richman at Dianne.Richman@illinois.gov or 217-622-1857; the hearing will be canceled if no written comments or hearing requests are received by the deadline.

This procurement is not subject to set-aside designations or restrictions limiting eligible respondents, as it is designated as a sole source award to ARxIUM, Inc., the incumbent vendor with a continuous procurement history dating to January 2019 and eight prior contracts ranging from $61,036.85 to $139,549.99. ARxIUM is established as the sole qualified vendor capable of providing the necessary RxWorks pharmacy technology solutions and support services, as confirmed by their exclusive ownership of the intellectual property and authorization to conduct all maintenance and support activities through ARxIUM personnel or ARxIUM-approved third-party service providers and trained customer employees. The proposed contract value is $154,063.23, comprising annual license fees of $60,615.00 for the core single-site installation and $75,566.81 for 11 additional locations, an in-transit module fee of $1,717.42, and EDI transaction fees of $16,164.00, representing a modest cost increase aligned with inflation from the prior year contract. The contract is funded through State Appropriate Funds and is subject to the Illinois Chief Procurement Office's comprehensive cloud hosting security requirements, IT terms and conditions, and DHS-specific provisions including HIPAA compliance and six-year record retention obligations. The State has determined that replacing the entire RxWorks system would cost approximately $5 million or more, and the absence of this system would prevent IDHS from tracking approximately $6 million in annual drug inventory and would result in significant audit findings for the State of Illinois.