PENNSYLVANIA NEW HIRE REPORTING PROGRAM

Date: November 24, 2010

To: Thomas Teprovich, Commodity Specialist Dept. of General Services, Bureau of Procurement

From: Dennis Marsh, Supervisor Pennsylvania New Hire Reporting Program

Copy: Randy Murphy, Division Chief Mark Hoover, Fiscal/Administration Manager

Subject: PA New Hire Reporting Program Back Office Support, Change in Sole Source Emergency Procurement Pricing

The purpose of this letter is to inform you of a change in price for vendor operations in support of the Pennsylvania New Hire Reporting Program. As you are aware, the current vendor contract for data collection and back office support operations expires as of December 31, 2010. To prevent a lapse in service and disruption of the Program while a new vendor is being secured under a Request for Proposals bid process, a three (3) month emergency Sole Source with optional three (3) month extension is being pursued, under instruction from the Department of General Services.

The original price quoted to the Department of Labor & Industry by the current vendor for these data collection and back office support activities during the emergency Sole Source period included a base fee of $40,000 per month, plus transactional costs (of $0.24 per electronic transaction and $0.35 per manual transaction). However, it was determined to be in the best interests of the Program and the Department to negotiate the base fee price lower, to save additional operational costs.

Accordingly, the current vendor, Deloitte, has agreed to a renegotiated base price of $27,000 per month from January 1, 2011 through March 31, 2011; the additional base fee will also be in place if the 3 month extension option is needed, extending the Sole Source from April 1, 2011 through June 30, 2011. Per transaction fees will remain unchanged at $0.24 per electronic record and $0.35 per manual transaction.

Additionally, the vendor agreed to a rebate of $10,000 per month off of the current contract base price for the months of November and December 2010, in effect through December 31, 2010. For these two months, a $10,000 rebate will be applied each month to the current base fee price of $50,000. Per transaction fees will remain unchanged at $0.24 per electronic record and $0.35 per manual transaction.

Please let me know if there are any questions or concerns regarding these changes; I may be contacted at [email protected], or by phone at 717-783-0706.

Sincerely,

Dennis Marsh, Supervisor Pennsylvania New Hire Reporting Program

PA New Hire Reporting Program | Center for Workforce Information & Analysis | PA Department of Labor & Industry Room 220 | 651 Boas Street | Harrisburg, PA 17121 | Phone: 717.783.0706 | Fax: 717.772.2168 www.paworkstats.state.pa.us

Auxiliary aids and services are available upon request to individuals with disabilities. Equal Opportunity Employer/Program