Sole Source - Licensing for NIGP Codes

This state and local contracting opportunity is a sole source contract for the licensing of 11-digit NIGP codes from Periscope Holdings for use in the State of Illinois' procurement systems. The Executive Ethics Commission (EEC) of Illinois requires the NIGP code system, which serves as a standardized taxonomy to identify supplies and services, for use in their procurement processes, vendor certification, and the Business Enterprise Program. The proposed 5-year contract between the EEC and Periscope Holdings would begin on June 1, 2022 and end on June 30, 2027, with no renewal options. The estimated value of the contract is $126,545, representing a 7.7% discount compared to the standard annual cost increase. The EEC has contracted with Periscope Holdings for the NIGP code license annually since 2014, and the sole source justification cites that the NIGP code is copyrighted material and the only nationally recognized system designed specifically for government procurement.

This sole source contract is limited to Periscope Holdings, as they hold the exclusive worldwide rights to sublicense the NIGP codes. A public hearing will be held to receive comments from interested parties on whether the sole source award is appropriate, unless no written comments or requests for a public hearing are submitted by May 13th. There are no set-aside designations or restrictions on the types of organizations that can submit comments. The EEC has determined that there are no acceptable alternatives to the NIGP code system, as the United Nations Standard Products and Services Code (UNSPSC) is not as widely used by state governments and lacks the necessary level of detail.