Unclaimed Property Database Management System Application

DocuSign Envelope ID: 5E77916D-282C-46F2-9D61-BB8561C41A69 i DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES E By a4 Set OF PROCUREMENT SERVICES STATE OF MAINE PROCUREMENT JUSTIFICATION FORM (PJF) This form must accompany all contract requests and sole source requisitions (RQS) over $5,000 submitted to the Division of Procurement Services. INSTRUCTIONS: Please provide the requested information in the white spaces below. All responses (except signatures) must be typed; no hand-written forms will be accepted. See the guidance document posted with this form on the Division of Procurement Services intranet site (Forms page) for additional instructions. Na Od AY = Department Office/Division/Program: | Office of the State Treasurer Department Contract Administrator or | Amber Griffin Grant Coordinator: (If applicable) Department Reference #: Amount: Advantage CT / RQS : (Contract/Amendment/Grant) $ 1,090,476.61 # 20220513000000002865 CONTRACT | Proposed Start Date: | 7/4/2022 oe

6/30/2025 Original Start Date: Effective Date: aE as Previous End Date: New End Date: RAN Project Start Date: Grant Start Date: - r Project End Date: Grant End Date: Vendor/Provider/Grantee Name, | Kelmar Associates, LLC City, State: | Wakefield MA Brief Description of | Unclaimed Property Database Management System Goods/Services/Grant: | Application PART Il: JUSTIFICATION FOR VENDOR SELECTION Check the box below for the justification(s) that applies to this request. (Check all that apply.) O A. Competitive Process fal G. Grant EJ B. Amendment el H. State Statute/Agency Directed C. Single Source/Unique Vendor Oo |. Federal Agency Directed eB D. Proprietary/Copyright/Patents O J. Willing and Qualified O E. Emergency O K. Client Choice El F. University Cooperative Project O L. Other Authorization REV 11/18/2021 Page 1 of 3 DocuSign Envelope ID: 5E77916D-282C-46F2-9D61-BB8561C41A69 Procurement Justification Form (PJF) Please respond to ALL of the questions in the following sections. PART Ill: SUPPLEMENTAL INFORMATION 1, Provide a more detailed description and explain the need for the goods, services or grant to supplement the response in Part |. The Office of the State Treasurer requires Database Management Software for the administration of the State's Unclaimed Property program. M.R.S.A. Title 33, Chapter 41, stipulates that the State must retain custody of unclaimed financial assets of Mainers and hold them in perpetuity. Owners of this property may initiate claims on these assets by contacting the Treasurers staff via phone, mail, or the web. An Unclaimed Property management software system is unique and highly specialized and must offer capabilities including, but not limited to, claims processing, claims payment, holder report processing, cash and securities receipt processing, tangible content management, owner notification and verification, audit capability, website search capacity, fraud detection, document imaging, and data security. , 2. Provide a brief justification for the selected vendor to supplement the response in Part Il. Reference the RFP number, if applicable. KAPS is our current vendor as well as being the only vendor offering a "commercial off-the-shelf", full-scope, hosted operating system capable of managing Maine's Unclaimed Property program. The KAPS system is hosted in a secure, enterprise level data center which isolates the State's data from all other clients and offers components that are fault tolerant. KAPS provides a robust system offering every function required to manage the state's UP program, as well as additional functions that would enable the State's program to be more efficient, effective, and prepared for new technologies. KAPS streamlined operating environment allows for timelier and higher capacity reporting of unclaimed property by holders, as well as the increased return of unclaimed property to the citizens of Maine. The KAPS environment requires no state resources for maintenance of the system. KAPS has demonstrated that they have in depth experience in all realms of Unclaimed Property operations and have exemplified that their commitment to these operations afford certainty that the necessary system support will be available going forward. 3. Explain how the negotiated costs or rates are fair and reasonable; or how the funding was allocated to grantee. The cost of the database software, web claim service, OnBase (document storage), ThreatMetrix & KFI (fraud prevention), transactional fees, ongoing support and maintenance will be $201,248.95 for the first year of the contract. This is a 3% increase over the last year of the current contract. Each of the following years will include a 3% increase. 4. Describe the plan for future competition for the goods or services. The Treasurer's Office is aware of another vendor who could provide comparable software. However, the software is currently being utilized only in states that administer their Unclaimed Property programs in conjunction with their revenue departments, which is not the case in Maine. The Unclaimed Property database management system provided by this vendor has not been proven as a standalone system. OST has met with, and will continue to meet with, any interested party to communicate our business needs and remain open to fostering competition in this extremely specialized market. Once a second provider is operating successfully with a State program, we will transition this contract from sole source procurement to a competitive award. REV 11/18/2021 Page 2 of 3 DocuSign Envelope ID: 5E77916D-282C-46F2-9D61-BB8561C41A69 6/24/2022Jaime Schorr Procurement Justification Form (PJF) PART IV: AMERICAN RESCUE PLAN ACT (ARPA) / MAINE JOBS & RECOVERY PLAN (MJRP) Does this request utilize ARPA/MJRP funds? O Yes If Yes, please attach the approved Business Case(s). No If No, proceed to Part V. PART V: APPROVALS The signatures below indicate approval of this procurement request. Signature of requesting Department's Commissioner (or designee): Posed, - = Typed Name: | Laura J Hudson Date: 6/6/2022 Signature of DAFS Procurement Official: Typed Name: Date: REV 11/18/2021 Page 3 of 3 DocuSigned by: ine Sou 6D6437754DD0459...