SOLE SOURCE-Small Rural Hospital Improvement Program- CRF

The Illinois Department of Public Health is issuing a sole source procurement (Bid/Buy No. 26-482DPH-RCHE4-B-51259) to contract with the Illinois Critical Access Hospital Network for administration and management of the federal Small Rural Hospital Improvement Program (SHIP) grant. The contract scope encompasses comprehensive grant administration including subgrant execution and monitoring, federal reporting and compliance with Health Resources and Services Administration (HRSA) requirements, development of 59 grant agreements to serve 59 eligible Illinois critical access hospitals and small rural hospitals, site visits to at least 25 percent of participating hospitals (minimum 15 hospitals), delivery of technical assistance to hospitals, subgrantee monitoring, and final reporting to the IDPH. The contract period runs from February 28, 2026, through May 31, 2028, covering the remaining federal project period awards within the current five-year federal grant cycle. The purchasing agency will present testimony justifying sole source procurement at a public hearing scheduled for March 18, 2026, at 2:00 PM via WebEx, with interested parties able to submit written comments or written requests for public hearing by 4:00 PM on March 13, 2026. The hearing will be cancelled if no interested parties submit comments or hearing requests by the deadline.

The procurement is restricted to sole source selection and is designated exclusively for the Illinois Critical Access Hospital Network due to its 23 years of continuous SHIP administration experience since 2002, exclusive statewide representation of eligible critical access hospitals, established HRSA-compliant infrastructure, and institutional knowledge of Illinois rural hospital operations that would be essential for uninterrupted program administration. The contract is funded entirely by federal HRSA grant funds (grant number H3HRH00033, CFDA 93.301) with a not-to-exceed contract value of $2,448,568, comprising remaining SHIP federal awards: FY 2025 ($798,152), FY 2026 ($825,208), and FY 2027 estimated ($825,208). The administrative cost is capped at less than 10 percent of the total award, below the HRSA-allowed maximum of 15 percent, with remaining funds distributed directly to eligible hospitals for HRSA-approved projects. As the incumbent vendor since 2002, the Illinois Critical Access Hospital Network has already established relationships with participating hospitals and maintains the infrastructure required for seamless continuation of the program. A market review confirmed that no alternative organization meets the statutory, federal, and operational requirements necessary for uninterrupted program administration.