101-005-0040 Procurement and Renewal Processes (1) Formal Selection Procedure: This procedure will be used for the procurement of Benefits Exceptions to this procedure are specified in sections (2), (3), (4) and (5). (a) Announcement: The Board will give notice of intent to contract for Benefits via the Oregon Procurement Information Network (ORPIN). The notice shall include a description of the Benefits or services sought the scope of the services required, and a description of special requirements, if any. The notice will invite qualified prospective contractors to apply. The notice will specify when and where the application may be obtained, to whom it must be returned, and the closing date. (b) Proposal: The Proposal from the prospective contractors will consist of a statement that describes the prospective contractor's credentials, performance data and other information sufficient to establish contractor's qualifications for providing the Benefits or services sought, as well as any other information requested in the announcement. (c) Evaluation: The Board or its designees will evaluate the qualifications of all applicants and select prospective contractors as set forth in OAR 101-005-0110. (d) Award of Contracts: The Board will make final selections based on the criteria included in OAR 101-002-005(3) in addition to criteria included in the Request for Proposal (RFP). (2)(a) Informal Selection Procedure: This procedure may be used at the Board's discretion, when the informal selection procedure will not interfere with competition among prospective contractors, reduce the quality of services, is an amount less than $150,000 in contract costs, or will not increase costs. The Board will contact a minimum of three prospective contractors known to the Board to be qualified to propose the sought-after services. The selection will be made by the Board based upon the factors described in paragraph (1) (d) of this rule. If three quotes are not received, the Board will make a written record of its efforts to obtain quotes. (b) When informal selection procedure has been used, the cumulative amendment(s) to the contract shall not increase the total contract cost to sum that is greater than twenty-five percent (25%) of the original contract cost. (3)(a) Sole Source Procedure: PEBB may award a contract for Benefits without competition when the Administrator of PEBB determines in writing that the services are available from only one source, or the contractor is defined as a Qualified Rehabilitation Facility as defined in Oregon’s public contracting code. (b) The determination of a sole source must be based on written findings that may include: (A) That the efficient utilization of existing services requires the acquisition of compatible services; (B) That the services required for the exchange of software or data with other public or private agencies are available from only one source; (C) That the services are for use in a pilot or an experimental project, or; (D) Other findings that support the conclusion that the goods or services are available from only one source. (c) To the extent reasonably practical, PEBB shall negotiate with the sole source to obtain contract terms advantageous to PEBB. (4) Small Procurement Procedure: PEBB may procure Contractor services in an amount less than $10,000 in any manner it deems practical, including by direct selection, negotiation and award. (a) Award of Contracts. PEBB will base selections on evaluation criteria which may include, but is not limited to, contractor availability; capability; experience; approach; compensation requirements; previous litigation and remedy applied; customer service history with PEBB, members and clients; debarment status; and references. Emphasis will be placed on quality customer service, creativity, affordability, and innovation and the improvement of employee health. (b) Contract. The selected Contractor must promptly execute the Contract. PEBB will execute the Contract only after obtaining all applicable required documents and approvals. (c) An amendement for additional services shall not increase the total contract cost to a sum that is greater than twenty-five percent of the original contract cost. (5) Renewal Procedure: If the Board does not issue an RFP or Single Source procurements to solicit formal proposals from qualified potential Contractors or Vendors, the Board may directly negotiate and enter into renewal contracts each plan year with Renewal Contractors to provide Benefits and other services without following the procedures set forth in sections (1) and (2) above. The Board may renew contracts with Renewal Contractors for as many years as the Board determines is in the best interest of the state and employees. The Board may invite renewal Proposals from those Contractors or Vendors who provided the same or similar employee Benefit Plan or other services in the year immediately prior. An employee Benefit Plan or other services contract is similar if it is reasonable related to the scope of work described in the procurement under which such a contract was awarded. The Board will negotiate with Renewal Contractors and enter into contracts with them after giving full consideration to the factors listed in paragraph (1)(d) or to such of those factors as the Board determines shall be evaluated for the renewal. (6) Emergency Appointment Procedure: The Board may select a Benefit Plan or other service Contractor without following any of the above procedures when Emergency conditions require. In such instance, the recommended appointment and a written description of the conditions requiring the use of this appointment procedure shall be submitted to the Board. The Board will determine if an Emergency exists, declare the Emergency and negotiate a contract with the Contractor after giving full consideration to the factors listed in paragraph (1)(d). Statutory/Other Authority: ORS 243.061 - 243.302 Statutes/Other Implemented: ORS 243.135 History: PEBB 2-2019, amend filed 03/19/2019, effective 03/19/2019 PEBB 10-2018, temporary amend filed 09/11/2018, effective 09/11/2018 through 03/09/2019 Reverted to PEBB 3-2010, f. 9-23-10, cert. ef. 10-1-10 PEBB 2-2013(Temp), f. & cert. ef. 10-2-13 thru 3-28-14 PEBB 3-2010, f. 9-23-10, cert. ef. 10-1-10 PEBB 2-2009, f. 7-29-09, cert. ef. 8-1-09 PEBB 1-2009(Temp), f. & cert. ef. 2-24-09 thru 8-22-09 PEBB 2-2005, f. 7-26-05, cert. ef. 7-29-05 PEBB 1-2004, f. & cert. ef. 7-2-04 PEBB 1-2003, f. & cert. ef. 12-4-03