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OREGON HEALTH AUTHORITY

REQUEST FOR SPECIAL PROCUREMENT no. 776-15

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Requesting agency name:

Oregon Health Authority

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Date of request:

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OHA contact name:

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Type of request:

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Time period requested:

From:

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Total estimated cost:

$50,000,000*

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Supplies and/or services to be acquired: The Oregon Health Authority (OHA) through its Office of Health Information Technology (OHIT) seeks a Contractor to serve as a Systems Integrator that will deliver three (3) Health Information Exchange/Health Information Technology (HIT/HIE) solutions, to include a Provider Directory, Common Credentialing System, and Clinical Quality Metrics Registry (CQMR).

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7/27/2015 ----=-'--="--===----Susan Otter

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OHA number:

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Phone:

D Class special procurement August 1, 2015

44300

--'-=-=-----------503.373.1817

~ Contract-specific special procurement To:

Dec 31, 2020

*OHA estimates that $3 to 5 Million of the total cost will go to the Contractor for Systems Integration and Project Management. The estimated cost ofthe subcontracted software solutions and operations and maintenance constitutes the remaining $45 Million.

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Background and proposed contracting procedure: Provide a description of what has been done in the past and the propased pracedure. OHA may, but is not required to, also include the following types of documents: notice/advertising, soficitation(s), bid/proposai formes), controctformls), and any other documents or forms to be used in the proposed controcting procedure. Attach additional sheets as needed. Project background Oregon's HIE Strategic Plan In 2010, OHA developed Oregon's HIE Strategic Plan in response to federal and state health care reform legislation. lhe Strategic Plan included a phased approach to services implementation, as well as a prioritization of services within each phase. The Strategic Plan also envisioned a combination of funding through federal, state, and user fees to implement and sustain these services. Phase 1 of the Strategic Plan included initial technology and business services that adhered to nationally recognized standards and processes, and would facilitate widespread HIE between organizations and providers within the state of Oregon. Provider Directory was one of three Core HIE Services that would provide the minimum functionality necessary for Oregon Eligible Professionals and Eligible Hospitals to meet Meaningful Use criteria as well as provide the opportunity and capability for any and all potential HIE Participants to utilize the services,

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regardless of their eligibility for Meaningful Use incentive payments. The Strategic Plan also envisioned the need to integrate clinical data and quality metrics from provider EHRs into a robust system for enabling provider improvement activities. Initial strategies included supporting eligible providers in their reporting of quality metrics related to Medicaid incentive payments and projects. Subsequent strategies expand the reach and reporting of quality metrics to include EHR-based data. In addition to facilitating HIE, the Strategic Plan called for ongoing public/private collaboration on administrative simplification efforts directed toward improving efficiencies for providers and health plans. A single source for information used in physician credentialing was specified as one of the priorities.' In 2013, Senate Bill (SB) 604 for a common credentialing program was signed into law. SB 604 requires aHA to establish a program and database to provide credentialing organizations access to information necessary to credential or re-credential all health care practitioners in the state. SB 604 authorizes fees as the funding source for the implementation and sustainability of the credentialing program. RFP 3261- Oregon HIE Solution In 2011, OHA issued RFP 3261 and awarded a contract to Harris Corporation to provide an HIE solution and a Provider Directory, with the option of adding additional projects that fell within the scope of Oregon's HIE Strategic Plan. The contract is currently at $4.5 million. Under OHA's HIE contract, Harris successfully implemented and maintains CareAccord", the state's Direct secure messaging solution. Recent developments have allowed aHA to move forward with the Provider Directory services and other strategic projects originally envisioned in the contract. OHA received federal matching funds for a provider directory and clinical quality metrics registry, and the passage of House Bill 2294 this legislative session allows OHA to collect fees for the sustainability of statewide HIT services. Use of a Systems Integrator OHA posted Requests for Information (RFI) in 2014 and early 2015 seeking information on solutions for the state's HIT/HIE priorities including Common Credentialing, Provider Directory, CQMR, and the supporting System Integration, and Operational and Fiscal services for each system. There was significant interest in the RFI from the vendor community. OHA received responses indicating many viable technical solutions are available in the marketplace. However, there was limited market interest in solely providing the systems integrator services. aHA wishes to avoid using a single vendor to provide in-house technical solutions and perform systems integration, as (1) limited options existed in the marketplace, and (2) using one vendor to provide all three technical solutions limited aHA's likelihood of obtaining the best option for each solution. Together with the Office of the State Cia, aHA determined the best course of action was to use a systems integrator that would acquire solutions from vendors who best meet each project's reqUirements while overseeing the implementation of, and ensuring integration between, the

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Common Credentialing, Provider Directory, and CQMR solutions. As systems integrator, the Contractor will have the following responsibilities: • Serve as a single point of accountability to deliver the portfolio of solutions •

Develop the technical requirements and architectural roadmap for the integration of disparate systems

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Deliver systems integration, ensuring interoperability of disparate systems while maintaining privacy and security

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Provide professional services relating to project and risk management

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Maintain a single contract with the State and subcontract for the best solutions based on OHA's business requirements, including services for operations.

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Ensure successful adoption through effective change management and end user training

Qualifications of Harris Corporation Given the size and complexity of the project, the Contractor must have the following characteristics to provide systems integration services: • Have extensive, vendor-agnostic experience with systems integration • Have demonstrated experience with healthcare system integration • Be a financially sound, top tier, national firm with the capital necessary to deliver the total portfolio OHA determined that Harris meets and exceeds these expectations: • Harris has extensive experience as a systems integrator, particularly for government agencies,'making their continued partnership with OHA,advantageous to the State • Harris does not offer software solutions for Provider Directory, CQMR or Common Credentialing and as such OHA can be assured that the company's sole focus will be on the successful management and integration of these projects. , • Harris has knowledge of, and experience with, the State's healthcare transformation efforts and has successfully partnered with OHA since 2011 to manage and deliver phase 1 ofthe State's HIE strategy • Harris is a multi-billion dollar, international firm with a 120 year history By amending its current contract with Harris to exercise the options under RFP 3261's scope of work, OHA intends to leverage Harris's partnership and work experience to produce the best possible solution for Oregon's HIE/HIT needs. OHA anticipates staging deliverables based on continued satisfaction of performance of services. Contractor's Use of Subcontractors In the Contract for this project, OHA may include provisions that Contractor meet the following

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aHA requirements for subcontracting out the technical solutions: •

Contractor shall utilize its best skill, efforts and judgment in the selection and contracting of subcontractors to further the interest of the aHA. The Contractor shall provide all necessary plans, specifications, and instructions to its subcontractors to enable them to properly perform their work. No use of a subcontractor shall relieve the Contractor of its obligations or liabilities under the proposed written agreement.

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Contractor shall include in any contract with a subcontractor provisions necessary to ensure that aHA will receive the benefit of the subcontractor performance as if the subcontractor were the Contractor.

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Contractor shall select all subcontractors through competitive procurement in a manner that will not encourage favoritism or substantially diminish competition. The Contractor shall follow a process that conforms with the following procedures, in general compliance with the Oregon Public Contracting Code and Attorney General's Model Public Contract Rules: a

Solicitations must be posted in Oregon's Procurement Information Network (aRPIN) and any other method considered best practice by the Contractor.

a Subcontracts must be awarded to a responsive and responsible proposer having met defined criteria using evaluation criteria approved by aHA. a

aHA shall have final approval of all subcontractors selected by Contractor.

a

The Contractor or its employees participating in the selection of subcontractors must not have any ownership or financial stake with the subcontractors.

Proposed Special Procurement Procedure a) Notice: Special Procurement Notice will be issued through aRPIN and serve as advertisement and notice to the vending community. If a firm believes it can provide the same level of services as described in this Notice, it must notify the Sole Point of Contact within the 7 day posting period of this Notice as follows: Any such proposer must clearly document its capability of providing the services referenced in this Notice, have the required experience, and demonstrate its ability to implement HIE/HIT solutions on similar scale to aHA's current need as set forth in this Special Procurement OHA-4068-15. If aHA determines that one or more firms present reasonable competition, aHA may consider including those firms in an expedited solicitation. The decision to include any other firms will be at the sole discretion of aHA. b) Expedited Solicitation: If aHA determines it is in its best interest to issue an expedited RFP for the services described above, it will invite firms who demonstrated an ability to compete through the process described in section a, above. In the expedited RFP, aHA will further describe the services to be required, the process for submitting proposals, the evaluation criteria, scoring methodology and the award process. aRPIN will be the official source of OHA Special Procurement Request no. 776-1S

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information to be shared between OHA and the firms invited to participate. (i) Solicitation Protest: Due to the short time frames, OHA will not provide a formal solicitation protest period for the expedited RFP, but will establish dates for submission of vendor questions and comments and respond to the entire pool of potential vendors. (ii) Response Period: Agency intends to grant proposers approximately two weeks to respond to the expedited RFP unless circumstances justify a shorter or longer response time, as determined by OHA. (iii) Award: OHA shall select the top ranked proposer and issue Intent to Award a contract to the proposer whose proposal best meets the needs of OHA by a date yet to be determined, considering the evaluation process and criteria specified in the expedited RFP. OHA will provide a protest period of seven (7) calendar days after the Notice of Intent to Award has been released. (Iv) Negotiation: The selected proposer and OHA will negotiate a final contract following the notice of intent to award. (v) Contract Period: Any resultant contract shall have available the term including extensions described in this Special Procurement and the expedited RFP. (vi) At the option of OHA, it may amend or extend the term of the resulting contract to add additional HIE Functionality. 11. Justification for use of special procurement: Describe the circumstances that justify the use of a speciai procurement.

The work described in this Notice is already within the scope of the RFP 3261, under which Harris's current contract was procured. As such, OHA could amend its contract with the Contractor to implement the new services without further public notice. However, because the original RFP reflected the cost of the phase 1 services, OHA is issuing this special procurement to make clear that the system integrator work includes the new services that are within the scope of the original RFP, as part of the HIE Strategic Plan incorporated into the RFP. RFP 3261 was competitive and included the option for the successful proposer to perform the desired work within the advertised scope. Harris Corporation competed with six other proposers and was awarded a contract. To date, the contract has reached $4.5 million for services to implement and maintain the initial goals ofthe project. Harris Corporation has successfully demonstrated its ability to perform the required services. OHA seeks to continue leveraging this partnership and work experience to produce the best possible solution for the state's HIE/HIT needs by exercising the options under the RFP 3261's scope of work. OHA can leverage the Contractor's partnership with OHA and experience with Oregon's HIE system by exercising the options within RFP's scope and continuing to work with the Contractor. Contractor's understanding and knowledge ofthe state's HIE system and HIT needs, as well as its depth of experience and success in systems integration are valuable in OHA Special Procurement Request no. 776-15

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expanding the state's HIT efforts. Based on RFI responses received, there was limited market interest in solely providing the systems integrator services that Harris can provide by amending its current contract. Procuring a new contractor to provide these services would duplicate effort, eliminate economies of scale, extend time and increase cost. The statewide HIT services that aHA intends to provide are linked to one another and have critical dependencies between them that will benefit from a single Contractor acting as a systems integrator. Each of these projects are building blocks necessary to achieve the state's plan for HIT-optimized health care for all Oregonians. Using an incumbent Contractor who has successfully delivered a key component of the state's HIT strategy will allow aHA to maximize its collective success and experience to realize the state's vision. 12.

Findings to satisfy the required standards: This proposed special procurement: cg] (a) will be unlikely to encourage favoritism in the awarding of public contracts or to substantially diminish competition for public contracts because: This procurement does not diminish competition. The Contractor was selected through a competitive process pursuant to RFP 3261, which included options to expand the work to include related projects within the Oregon HIE Strategic Plan. aHA received multiple proposals and went through a thorough evaluation process to select a Contractor. Moreover, opportunities for vendors still are available to provide the technical solutions, as the Contractor will be subcontracting out the work for the specific solutions. The Contractor will have a duty to ensure a competitive system for selecting subcontractors that is designed to provide proposers with an opportunity to identify solutions and any value added options or ideas that may benefit the'state. The implementation budget for the systems integration Contract projected over 12-18 months is estimated at $3-5 million. The remaining $45 million of the total estimated cost is for the subcontracted solutions and four years of operations and maintenance.

This Special Procurement's expedited approach is not designed to prevent firms from participating but rather is necessary and designed to give aHA and the selected Contractor the ability to meet legislatively mandated deliverables. and

D

(b)(i) will result in substantial cost savings to aHA or to the public because:

or

cg] (b )(ii) will otherwise substantially promote the public interest in a manner that could not practicably be realized by complying with the requirements of ORS 279B.055, 279B.060, 279B.065, or 279B.070, or any rules adopted thereunder because: OHA Special Procurement Request no. 776-15

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A proven history of success mitigates risk to the agency, and ultimately to taxpayers. OHA has established a proven partnership with the Contractor in the implementation and operations of its HIE project, CareAccord. OHA intends to leverage this relationship and services already developed to ensure continuity in the oversight and management ofthe interconnected solutions in the state's HIT strategy. There is certainty of project execution with a known partner who has proven success with OHA for procurement, implementation, and integration of HIT projects. Furthermore, the systems integrator model requires shared risk with the Contractor through hold backs on deliverable-based payments and releases those holdbacks to the Contractor only if and when the OHA provides Final System Acceptance after implementation of each of the solutions.

Subject to OAR 125-247-0700, any entity or individual may submit a written protest of the approval of this special procurement to the agency contact identified on the ORPIN posting.

APPROVED:

Kirk N. Rhoades, Designated Procurement Officer Oregon Health Authority

STATUTORY AND RULE AUTHORITY: ORS 279B.085(3) states the Director of the Department of Administrative Services may approve a special procurement if the Director finds that a written request submitted under ORS 279B.085(2) demonstrates that the use of a special procurement as described in the request, or an alternative procedure prescribed by the Director will: (a) Be unlikely to encourage favoritism in the awarding of public contracts or to substantially diminish competition for public contracts; and (b)(A) Result in substantial cost savings to the contracting agency or to the public; or (B) otherwise substantially promote the public interest in a manner that could not practicably be realized by complying with requirements that are applicable under ORS 279B.055, 279B.060, 279B.065 or 279B.070 or under any rules adopted thereunder. OAR 125-246-0170 delegates the authority of the Director to approve special procurements to the Chief Procurement Officer ofthe Procurement Policy Group, Department of Administrative Services. OAR 125-247-0285 through 125-247-0288 implement ORS 279B.085. FINDINGS: The findings are accepted, adopted, and incorporated by reference herein.

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CONDITIONS OF APPROVAL: 1. Notice Period before Award. Procurement Services shall post the notice. The Special Procurement may not be used until after the completion of the seven (7) day notice period required pursuant to OAR 125-247-0287(4), and either: a. No protests or objections were received by Procurement Services in response to this notice, or . b. If any protest or objection is received during the notice period, then not until: i. A copy of it is delivered to the Procurement Policy Group Analyst for this Special Procurement, and ii. The Chief Procurement Officer or delegate confirms in writing the first possible award date. 2. ORS 279A.165 Requirements. Procurement Services shall comply with the requirements of ORS 279A.165 (S8 1518), regarding a report about this Special Procurement. Agency shall use a form and follow the instructions provided by the Chief Procurement Officer or delegate. APPROVED:

Jay R. Jackson for Dianne Lancaster, Chief Procurement Officer, Department of Administrative Services

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