Sole economically feasible source / state disbursement unit

This is a notice of intent to award a sole source contract to Conduent State & Local Solutions, Inc. for the continued operation of the Illinois State Disbursement Unit (SDU). The SDU is responsible for collecting and disbursing over $1.5 billion in child support payments annually for approximately 243,203 families. The current SDU contract is set to expire on December 31, 2024, and the Illinois Department of Healthcare and Family Services (HFS) is seeking to retain the incumbent vendor through December 2027 to provide technical expertise and ensure uninterrupted service during the development and implementation of the new statewide child support enforcement system, EPIC. The contract includes a per-disbursement rate increase from $1.03 to $1.23, as well as higher hourly rates for the vendor's technical assistance. HFS has determined these pricing increases are fair and reasonable based on market research. Interested parties have until October 21, 2024, at 4 p.m. to submit written comments or request a public hearing on the sole source award.

The SDU contract is not subject to any set-aside designations or restrictions on the types of organizations that can respond. However, the procurement is limited to the incumbent vendor, Conduent State & Local Solutions, Inc., as HFS has determined that retaining the current provider is the sole economically feasible source to maintain continuity during the EPIC system rollout and avoid significant delays and additional costs. The current SDU contract value is not publicly disclosed, but the new contract is anticipated to have a similar annual value of over $50 million to process and disburse the child support payments.