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Subcommittee hears update on workers' compensation information system modernization; 10 vendor proposals received
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Summary
Department of Consumer and Business Services told the Joint Ways and Means subcommittee the Workers' Compensation Information System RFP drew 10 proposals after a pre-proposal conference with more than 25 vendors; the legislature previously approved $4.8 million in limitation for initial implementation, and DCBS expects to return for additional limitation after contract negotiations clarify full costs.
The Joint Ways and Means Subcommittee on Economic Development heard an update on the Department of Consumer and Business Services' effort to modernize the workers' compensation information system. DCBS officials said the program, launched in 2019 to replace legacy systems, has completed business process modeling and moved the procurement through stage-gate endorsements.
"We had over 25 unique vendors in attendance" at the pre-proposal conference and DCBS received more than 200 vendor questions, Matt West, administrator of the Workers' Compensation Division, told the committee. The agency extended the submission deadline to Jan. 16, 2026, and said 10 proposals arrived by that date and are now in DAS procurement's legal sufficiency review.
Why it matters: the modernization aims to reduce manual workarounds, improve data quality and regulatory efficiency across a division that has relied on applications some 30 years old.
DCBS described the procurement timeline: an evaluation committee with IT and business representatives will review and score proposals, host vendor demonstrations, select a vendor and issue an intent to award. Contract negotiations with the Department of Administrative Services and the Department of Justice will follow; officials said full implementation costs will be clearer during that negotiation phase.
The 2025–27 legislatively approved budget includes a $4,800,000 limitation for initial implementation costs, West said, and DCBS committed to returning to the legislature for the remaining limitation once it has a firmer cost estimate.
Members pressed for follow-up information. Representative Watanabe asked whether procurement used OregonBuys and whether minority- and veteran-owned bidders were participating; West said DCBS would ask DAS procurement to confirm bidder diversity. Representative Winn asked about in-state participation, noting the state spends roughly $7.1 billion on goods and services and expressing interest in keeping more work in-state; DCBS said it would report back after procurement completes its reviews. Senator Place asked whether the RFP was written to limit recurring replacement costs; DCBS said a cloud-forward, platform-oriented approach was a priority but that definitive answers would depend on vendor proposals.
The Legislative Fiscal Office and the DAS chief financial officer recommended the committee acknowledge receipt of the report; the committee approved the LFO recommendation by voice vote and the item will move to the full Ways and Means committee.
What comes next: DCBS will complete proposal scoring, host demonstrations, select a vendor, and enter contract negotiations; the agency said it will return to the legislature for additional limitation when it can present more detailed cost estimates.
