Notice of Special Procurement: NAIC State Based Systems

Notice of Special Procurement: NAIC State Based Systems Department of Consumer and Business Service is renewing a Special Procurement with NAIC for SBS. THIS IS A NOTICE, NOT A SOLICITATION. SEE ATTACHMENTS FOR INFORMATION. 166150 SP DCBS SBS Page 1 of 5 REQUEST FOR SPECIAL PROCUREMENT (SP) No. REQ-DASOBO-00166150 (previously SP368-09), Amendment No. 2 PART A. Requesting Agency must complete Items 1 through 13. 1. Requesting Agency Name: Department of Consumer and Business Services (DCBS) 2. Date of Request: November 17, 2025 3. Agency Number: 4400 4. Agency Contact Name: Nicholas Brooks 5. Phone: 971-375-7762 6. Type of Request: ___ Class Special Procurement _X_ Contract-specific Special Procurement 7. Amendment Time Period Requested: From: December 7, 2025 To: December 7, 2030 8. Total Estimated Cost for Amendment Time Period: $0 9. Title: Supplies and/or Services to be acquired: State Based Systems (SBS) 10. Amendment Request, Background, Current Need, and Proposed Contracting Procedure: a. Amendment Request: The Department of Consumer and Business Services (DCBS), Division of Financial Regulation requests approval of this Special Procurement (SP) No. 368-09, Amendment No. 2 request to amend and extend Contract No. PO-44000-00015275 for up to five (5) additional years. The current contract terminates December 7, 2025. b. Background: DCBS has contracted with the National Association of Insurance Commissioners (NAIC) for SBS since October 1, 2009. The NAIC is the national standard-setting and regulatory support organization created and governed by the chief insurance regulators from 50 states. Chronology of the agreement:

• SP-368-09 was approved by DAS on October 9, 2009 and no protests were received to the public

notice.

• Contract DCBS-1374-10 was executed on December 12, 2010. The initial term was for five

years.

• Amd 1 to DCBS-1374-10 was executed on January 4, 2011, updating the contact information
• Amd 2 to DCBS-1374-10 was executed on October 29, 2015, extending the contract one year.
• Amd 3 to DCBS-1374-10 was executed on December 16, 2016, extending the contract one year.

166150 SP DCBS SBS Page 2 of 5

• Amd 4 to DCBS-1374-10 was executed on December 19, 2017, extending the contract one year

and updating contact information.

• Amd 5 to DCBS-1374-10 was executed on November 30, 2018, extending the contract one year.
• Amd 6 to DCBS-1374-10 was executed on January 8, 2020, extending the contract one year.
• Amd 1 to SP368-09 was approved by DAS on March 31, 2020. No protests were received to the

public notice. This allowed the contract to be extended to December 7, 2025

• Amd 7 to DCBS-1374-10 was executed on April 9, 2020, extending the contract six months.
• Amd 8 to DCBS-1374-10 was executed on October 9, 2020, extending the contract three months
• Amd 9 to DCBS-1374-10 was executed on Decemeber 29 2020, extending the contract three

months

• Amd 10 to DCBS-1374-10 was executed on March 30, 2021, extending the contract three

months

• Amd 11 to DCBS-1374-10 was executed July 28, 2021, extending the contract seven months.
• Amd 12 to DCBS-1374-10 was executed January 28, 2022, extending the contract four months.
• Amd 13 to DCBS-1374-10 was executed May 20, 2022, extending the contract three months.
• Amd 14 to DCBS-1374-10 was executed August 30, 2022, extending the contract two months
• Amd 15 to DCBS-1374-10 was executed October 26, 2022, extending the contract two months.
• Amd 16 to DCBS-1374-10 was executed December 21, 2022, extending the contract two

months.

• PO-44000-00015275 was executed January 26, 2023 and replaced DCBS-1374-10 in its entirety.

PO-44000-00015275 was approved for legal sufficiency by DOJ on January 11, 2023 and by EIS on December 12, 2022. The expiration date for this PO is December 7, 2025 to align with SP 368-09 Amd 1. For additional historical and background information, see Attachment 1 Original SP 368-09 and Attachment 2, SP 368-09 Amd 1. c. Current Need: DCBS seeks continued use of the State Based System (SBS). Currently, 29 states use the SBS system for receipt and processing of producer, adjuster and other individual and business entity licenses. With about 60% of states using this system, it allows states to better coordinate license processing and facilitate a uniform process. DCBS also has contracts with other vendors for services such as criminal background checks, which are programmed to be electronically delivered to SBS. Additionally, SBS is programmed to track licensee education and testing with additional vendors. Any change in this system would not only require moving information, re-training all the staff, but also interrupting existing channels for delivery of information. d. Proposed Contracting Procedure: 1. DCBS will issue a public notice on the OregonBuys, as required by Oregon Administrative Rule (“OAR”) 125-247-0287, regarding approval of the SP Amendment Request. Advertisement of the SP Amendment will include provisions that any affected person may protest the approval of the SP Amendment. 166150 SP DCBS SBS Page 3 of 5 2. DAS PS, along with DCBS, will respond to and resolve protests, if any. If no protests to this SP Amendment are received or sustained, DCBS will proceed amending and extending Contract No. PO-44000-00015275 for up to five (5) additional years as described in this SP Amendment, and will obtain DOJ legal sufficiency review and EIS approval, as may be required. 11. Justification for use of Special Procurement: Describe the circumstances that justify the use of a Special Procurement. Attach relevant documentation.

• Continuation of contract would not diminish competition. Previously market research

identified only two possible vendors that provide these services. Incumbent provides system to 60% of state insurance departments.

• Existing integration to existing data systems. Transition to another vendor would require

significant information technology resources and cost to develop interfaces and conduct extensive testing to ensure compatibility and successful functionality.

• SBS is part of the NAIC, an organization DCBS is a member. SBS provides a comprehensive

set of regulatory tools with the current system tailored to the requirements of NAIC members.

• Staff would have to undergo training to learn to utilize a different system. Additional training

would also be required on how to share information with other states through a non-standard process. 12. Findings to Satisfy the Required Standards: This proposed special procurement: __X___ (a) will be unlikely to encourage favoritism in the awarding of public contracts or to substantially diminish competition for public contracts because: This is a unique situation where the insurance regulators of all states assisted in the creation of the system and participate in the maintenance of the system requirements to ensure coordination and uniformity for the insurance industry. See also the reasons justifying the use of a Special Procurement listed in Section 11 above. and ______ (b)(i) will result in substantial cost savings to the contracting agency or to the public because: or ___ (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: 166150 SP DCBS SBS Page 4 of 5 Using the system that has been developed by and for the insurance regulators of all states creates a seamless system for insurance licensing. The system is set up to enforce business rules for things such as a person not being able to receive a license here if they are not licensed in their home state, checking applicant information against a central source that includes licensing and other administrative actions taken against the person by any state, and other similar actions to ensure that our licenses are issued to those that meet the criteria and can service the insurance buying public in an appropriate manner. It seamlessly interfaces with regulatory databases. There is no other system that coordinates the information from so many areas in an efficient and effective system for processing applications to ensure qualified insurance agents to help the insurance buying public.

• Movement to a new vendor will cost the agency and the public a significant amount of

money to move from a fully integrated system with national data sets and processes. A move to another platform would incur expenses for training, data transfer, connectivity to other systems, and other resources.

• It will also be difficult and confusing for our customers, producers and companies who

would have to change their processes to integrate with a new system as well. 13. Signature: The actual signature of the Agency Head or designee (e.g., Designated Procurement Officer) is not required on the Request submitted through OregonBuys. Agency may elect to attach a signed Request as a pdf file through OregonBuys® or submit a signed hard copy Request. Signature: e.g. Electronically in OregonBuys® _________________ Name/Title: Date: PART B. STATUTORY AND RULE AUTHORITY: ORS 279B.085(2) 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(4) 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 of the Department of Administrative Services to approve special procurements to the State Chief Procurement Officer. OAR 125-247-0285 through 125-247-0288 implement ORS 279B.085. 166150 SP DCBS SBS Page 5 of 5 OAR 125-247-0700(2) Protests and Judicial Review of Special Procurements designates the State Chief Procurement Officer as the Contract Review Authority. FINDINGS: The findings are accepted, adopted, and incorporated by reference herein. CONDITIONS OF APPROVAL: 1. Notice Period. The Authorized Agency shall post the Public Notice on OregonBuys. 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 Written protests are received by the Contract Review Authority, State Chief Procurement Officer, from an Affected Person in response to the notice, or b. If any protest is received during the notice period, then not until: i. the State Chief Procurement Officer or delegate issues a written disposition of the protest in accordance with ORS 279B.400 and OAR 125-247-0700 and OAR 137-047-0700, and ii. confirms in writing the first possible date of use of the Special Procurement. 2. ORS 279A.165 Requirements. Agency shall comply with the requirements of ORS 279A.165 and OAR 125-247-0287(12) regarding a report about this Special Procurement. Agency shall use a form and follow the instructions provided by the State Chief Procurement Officer or delegate. APPROVED: Jay R. Jackson, Procurement Policy Officer Date: Department of Administrative Services, State Procurement Services 11/24/2025