Sole Source- BPCSS ATP2 Service Agreement

The Illinois Department of Human Services is issuing a sole source service agreement for extended maintenance and support of Parata Systems LLC ATP2 automated medication packaging machines and their associated Lower Packaging Units (LPUs) located across nine DHS mental health and developmental centers, including Packard, Ludeman, Elgin, Murray, Chester, Madden, Choate, Alton, and Chicago Read. The procurement covers annual maintenance, software licensing, and comprehensive technical support for the nine ATP2 systems during the contract period of July 1, 2026, through June 30, 2027. Deliverables include ongoing warranty maintenance, software updates, technical troubleshooting, and equipment support necessary to ensure uninterrupted medication distribution to vulnerable populations under state care. The sole source justification is based on the proprietary and patented nature of the ATP2 equipment, exclusive software licensing requirements, and compatibility concerns that preclude alternative vendors, as third-party maintenance would void warranties and service agreements while equipment replacement costs approximately $430,000 per unit. The State of Illinois initiated the procurement with a need identification date of March 1, 2026, and the State Purchasing Officer approved the sole source justification on March 27, 2026. The public hearing regarding the sole source procurement method is scheduled for April 17, 2026, at 2:00 PM via WebEx, with interested parties required to submit written comments or requests for a public hearing by 4:00 PM on April 17, 2026, to avoid cancellation of the hearing; the contract posting date was April 1, 2026, with a due date of April 22, 2026.

As a sole source procurement award, this opportunity is restricted to Parata Systems LLC, the incumbent vendor and current contractor, with no open competition permitted. The State of Human Services has documented a significant prior purchasing history with Parata BD (Parata Systems LLC), including multiple sole source awards dating back to 2019 that total over $4.5 million, establishing the vendor as the existing infrastructure and technology provider for these critical pharmacy automation systems. The total contract value for this one-year service agreement is $163,995, with individual machine and LPU maintenance fees of $18,115 and $2,115 respectively per location, funded through state appropriated funds. The contract represents a one-time purchase term agreement for one year with no renewal options specified. Vendors must comply with the IT Terms and Conditions v.26.1 with DHS Provisions, which establish requirements including independent contractor status, HIPAA compliance for protected health information, six-year record retention obligations, and provision of their own equipment and supplies. Additionally, if cloud hosting services are involved, vendors must meet the Cloud Hosting Appendix v.26.1 security requirements, including SOC 2 Type 2 audit certifications, FIPS 140-compliant AES 256-bit encryption, federated authentication with multifactor authentication for privileged accounts, and comprehensive logging and data protection protocols.