0180023358a.pdf

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Corning Tower, Empire State Plaza, Albany, NY 12242 | https://ogs.ny.gov/procurement | customer.services@ogs.ny.gov | 518-474-6717

Contract Award Notification

Title : Group 01800 – Road Salt, Treated Salt, & Emergency Standby Road Salt (Statewide)

Classification Code(s): 12

Award Number : 23358 (Replaces Award 23315)

Contract Period : September 20, 2024 through August 31, 2025

Bid Opening Date : July 18, 2024

Date of Issue : September 20, 2024

Specification Reference : As Incorporated In The Invitation for Bids

Contractor Information : Appears on Pages 4 & 5 of this Award

Address Inquiries To:

Name :

Title :

Phone :

E-mail :

Jamison Ott Contract Management Specialist 1 518-473-2663 OGS.sm.SST_roadsalt@ogs.ny.gov

Procurement Services Customer Services

Phone :

E-mail :

518-474-6717 customer.services@ogs.ny.gov

Procurement Services values your input.

Complete and return "Contract Performance Report" at end of document.

Description Road Salt is used for snow and ice control. Treated Salt is granular sodium chloride (Rock Salt) treated with corrosion inhibited liquid magnesium chloride – Types 1 and 2.

These are filed requirement contracts which require the Authorized User to purchase 50% of their filed requirement.

Automatic price increase becomes effective once deliveries exceed 120% of the Authorized User’s filed requirement.

There are MBE and WBE participation goals totaling 30% for certain counties on this contract.

There are 0% SDVOB participation goals.

PR # 23358

https://ogs.ny.gov/Award-23358

GROUP 01800 – Road Salt, Treated Salt, & Emergency Standby Road Salt (Statewide) PAGE 2

23358a

Table of Contents

SECTION 1: INTRODUCTION

1.1 Contractor Information

1.2 Overview

1.3 Scope

1.4 Estimated Quantities

1.5 Small, Minority and Women-Owned Businesses

1.6 Recycled, Remanufactured and Energy Efficient Products

1.7 Note to Authorized Users

SECTION 2: PRICING

SECTION 3: CONTRACT ADMINISTRATION

SECTION 4: TERMS AND CONDITIONS

4.1 Contract Term and Extensions

4.2 Short Term Extension

4.3 Price

4.3.1 Storage Fees

4.3.2 Price Escalation Based on Quantities Exceeding 120% & 130% of Filed Requirement

4.3.3 Fuel Price Adjustment

4.3.4 Additional Notes on Fuel Price Adjustment

4.3.5 Price Adjustment for Renewals

4.3.6 Price Reductions

4.4 Best Pricing Offer

4.5 Price Structure

4.6 Ordering

4.7 Purchasing Card Orders

4.8 Minimum Order

4.9 Minimum/Maximum Purchase Obligations

4.10 Invoicing and Payment

4.11 Delivery Terms

4.11.1 Delivery Schedule

4.11.2 Compliance with Delivery Schedule & Purchase Orders

4.11.3 Ordering Timeliness

4.11.4 Holidays/Weekends

4.11.5 Prevention of Contamination

4.11.6 Non-Complying Product – Price Deduction

4.11.7 Acceptance

4.11.8 Weight Tickets

4.11.9 Delivery Timetable

4.11.10 Delivery Rate Guarantees/Exceptions

4.11.11 Liquidated Damages

GROUP 01800 – Road Salt, Treated Salt, & Emergency Standby Road Salt (Statewide) PAGE 3

4.11.12 Buy Against

4.12 Emergency Standby Road Salt Provision - Use Guidelines

4.12.1 Lot I – Road Salt

4.12.2 Lot II and Lot III – Treated Salt

4.12.3 Emergency Standby Road Salt Provision – Ordering Process

4.12.4 Emergency Standby Road Salt Provision – Buy Against Process

4.13 On Ground/Delivered Inventory

4.14 NYS Financial System (SFS)

4.15 Americans with Disabilities Act (ADA)

4.16 N.Y. State Finance Law § 139-l

4.17 Insurance

4.18 Report of Contract Usage

4.19 Contractor Requirements and Procedures for Business Participation Opportunities for NYS

Certified Minority- and Women-Owned Business Enterprises and Equal Employment Opportunities for Minority Group Members and Women

4.20 Participation Opportunities For New York State Certified Service-Disabled Veteran Owned Businesses

4.21 Environmental Sustainability and NYS Executive Order Number 22

4.22 Consumer Products Containing Mercury

4.23 Prohibition On Contracting For Certain Telecommunications And Video Surveillance

Services Or Equipment

4.24 Overlapping Contract Products

4.25 Preferred Source Products

4.26 Non-State Agencies Participation in Centralized Contracts

4.27 Extension of Use

4.28 New Accounts

4.29 Drug and Alcohol Use Prohibited

4.30 Traffic Infractions

4.32 New York State Buy American Salt Act

GROUP 01800 – Road Salt, Treated Salt, & Emergency Standby Road Salt (Statewide) PAGE 4

SECTION 1: INTRODUCTION

1.1 Contractor Information

NOTE: See individual contract items to determine actual awardees.

See separate document PRICING for contact information to place NYS Contract Orders.

Contract # Contractor Name & Address Contract Admin Federal ID#/ NYS Vendor ID#

PC70460 American Rock Salt Co LLC 16-1516458 PO Box 190 Phone #: 888-762-7258 1000008297 Mt. Morris, NY 14510 Contact: Jamie A. McClain Title: Marketing Manager Email: Jamie.McClain@AmericanRockSalt.com

Contractor does not accept NYS Procurement Card

PC70461 Apalachee LLC Toll Free #: 800-724-5037 47-2089879 SB 1423 Highland Ave Phone #: 585-442-4131 1100213604 Rochester, NY 14620 Contact: Ellen Pouthier Title: VP Sales Email: Sales@ApalacheeSalt.com

PC70462 Atlantic Salt Inc Phone #: 978-453-4911 13-2914699 134 Middle Street, Suite 210 Contact: Donna Capillo 1000026327 Lowell, MA 01852 Title: Assistant Corporate Secretary Email: DCapillo@EasternMinerals.com

PC70463 Cargill Incorporated – Salt, Road Safety 41-0117680 24950 Country Club Blvd, Suite 450 Toll Free #: 800-600-7258 1000048669 North Olmsted, NY 44070 Contact: Adam Donegan Title: Government Sales Lead Email: Salt_customercareroadsafety@Cargill.com

Contractor accepts NYS Procurement Card orders for up to $50,000.

GROUP 01800 – Road Salt, Treated Salt, & Emergency Standby Road Salt (Statewide) PAGE 5

Contract # Contractor Name & Address Contract Admin Federal ID#/ NYS Vendor ID#

PC70464 Compass Minerals America Inc 800-323-1641 x2 48-1047632 9900 W. 109th St Phone #: 913-344-9369 1000031899 Overland Park, KS 66210 Contact: Austin Hilbrands Title: Manager Highway Sales Email: highwaygroup@CompassMinerals.com

Contractor accepts NYS Procurement Card for orders up to $50,000.

PC70465 Morton Salt Inc 27-3146174 444 West Lake Street, Suite 3000 Phone #: 312-807-2384 1100010394 Chicago, IL 60606 Contact: Na-Tia Douglas Title: Senior Bid Analyst Email: NDouglas@MortonSalt.com

Contractor accepts NYS Procurement Card for orders up to $50,000

Cash Discount, If Shown, Should be Given Special Attention.

Authorized Users should notify New York State OGS Procurement Services promptly if the Contractor fails to meet delivery or other terms of this contract. Products or services which do not comply with the specifications or are otherwise unsatisfactory to the Authorized User should also be reported to OGS Procurement Services.

1.2 Overview

This Solicitation is issued by the New York State (“NYS”) Office of General Services (“OGS”), Procurement Services for Road Salt, Treated Salt, and Emergency Standby Road Salt as specified herein for all Authorized Users eligible to purchase through this Solicitation.

1.3 Scope

The resultant Contract(s) are to provide Road Salt (Rock) in bulk, Treated Salt (Types 1 & 2) in bulk, and Emergency Standby Road Salt (Rock & Solar) in bulk, to various locations throughout the State.

State and eligible non-State agencies may participate.

Lot I Road Salt (Rock), Lot II Treated Salt – Type 1 Lot III Treated Salt – Type 2

GROUP 01800 – Road Salt, Treated Salt, & Emergency Standby Road Salt (Statewide) PAGE 6

1.4 Estimated Quantities

The quantities listed for Road Salt and Treated Salt are based on the requirements filed for each using entity. The Contractor must furnish all quantities actually ordered at or below Contract prices.

The anticipated dollar value of the award for this Invitation for Bids, based on historical purchases under previous awards, and filed requirements, is approximately $240,000,000.00 annually.

The individual value of each resultant Contract is indeterminate and will depend on the number of Contracts issued and the competitiveness of the pricing offered. See also, Appendix B, Estimated/Specific Quantity Contracts and Participation in Centralized Contracts.

Numerous factors could cause the actual quantities of Products purchased under a Contract resulting from this Solicitation to vary substantially from the estimates in the Solicitation. Such factors include, but are not limited to, the following:

• Such Contracts may be non-exclusive Contracts.

• There is no guarantee of quantities to be purchased, nor is there any guarantee that demand will continue in any manner consistent with previous purchases.

• The individual value of each Contract is indeterminate and will depend upon actual

Authorized User demand and actual quantities ordered during the contract period.

• The State reserves the right to terminate any Contract for cause or convenience prior to the end of the term pursuant to the terms and conditions of the Contract.

• Contract pricing that is lower than anticipated could result in a higher quantity of purchases by

Authorized Users than anticipated.

• Contract pricing that is higher than anticipated could result in a lower quantity of purchases by

Authorized Users than anticipated.

By submitting a Bid, Bidder acknowledges the foregoing and agrees that actual good faith purchasing volumes during the term of the resulting Contracts could vary substantially from the estimates provided in this Solicitation.

1.5 Small, Minority and Women-Owned Businesses

The letters SB listed under the Contract Number indicate the contractor is a NYS small business.

Additionally, the letters MBE and WBE indicate the contractor is a Minority-owned Business Enterprise and/or Woman-owned Business Enterprise.

1.6 Recycled, Remanufactured and Energy Efficient Products

Procurement Services supports and encourages the purchase of recycled, remanufactured, energy efficient and "energy star" products. If one of the following codes appears as a suffix in the Award Number or is noted under the individual Contract Number(s) in this Contract Award Notification, please look at the individual awarded items for more information on products meeting the suffix description.

RS, RP, RA Recycled RM Remanufactured SW Solid Waste Impact EE Energy Efficient E* EPA Energy Star ES Environmentally Sensitive

GROUP 01800 – Road Salt, Treated Salt, & Emergency Standby Road Salt (Statewide) PAGE 7

1.7 Note to Authorized Users

When placing purchase orders under the contract(s), the authorized user should be familiar with and follow the terms and conditions governing its use which usually appears at the end of this document.

The authorized user is accountable and responsible for compliance with the requirements of public procurement processes. The authorized user must periodically sample the results of its procurements to determine its compliance. In sampling its procurements, an authorized user should test for reasonableness of results to ensure that such results can withstand public scrutiny.

The authorized user, when purchasing from OGS contracts, should hold the contractor accountable for contract compliance and meeting the contract terms, conditions, specifications, and other requirements. Also, in recognition of market fluctuations over time, authorized users are encouraged to seek improved pricing whenever possible.

Authorized users have the responsibility to document purchases, particularly when using OGS multiple award contracts for the same or similar product(s)/service(s), which should include:

• a statement of need and associated requirements,

• a summary of the contract alternatives considered for the purchase,

• the reason(s) supporting the resulting purchase (e.g., show the basis for the selection among multiple contracts at the time of purchase was the most practical and economical alternative and was in the best interests of the State).

GROUP 01800 – Road Salt, Treated Salt, & Emergency Standby Road Salt (Statewide) PAGE 8

SECTION 2: PRICING

For specific pricing information per county and salt type please refer to the price pages’ link published at the webpage for this contract on the OGS Procurement Services website:

https://ogs.ny.gov/procurement/ogs-centralized-awards-list

SECTION 3: CONTRACT ADMINISTRATION

Contractor shall provide a sufficient number of Customer Service employees who are knowledgeable and responsive to Authorized User needs and who can effectively service the Contract. Contractor shall also provide an Emergency Contact in the event of an emergency occurring after business hours or on weekend/holidays.

Contractor shall provide a dedicated Contract Administrator to support the updating and management of the Contract on a timely basis. Contractor must notify OGS within five Business Days if it’s Contract Administrator, Emergency Contact, or Customer Service employees change, and provide an interim contact person until the position is filled. Changes shall be submitted electronically via e-mail to the OGS Contract Management Specialist.

GROUP 01800 – Road Salt, Treated Salt, & Emergency Standby Road Salt (Statewide) PAGE 9

SECTION 4: TERMS AND CONDITIONS

4.1 Contract Term and Extensions

A. Base Term. The Contract shall be in effect for a term of up to one (1) year. The Contract term shall commence after all necessary approvals and shall become effective September 1, 2024 or upon the date of OSC approval of the final executed documents, whichever is later, and the Contract term shall end August 31, 2025.

B. Extensions: If mutually agreed between OGS and the Contractor, and subject to the approval of OSC, the Contract may be extended under the same terms and conditions for up to two (2) additional one (1) year extensions. . Whether the optional extensions are exercised is at the sole discretion of the State. Any extensions provided under this section shall apply in addition to any rights set forth in Appendix B, Contract Term - Extension.

C. The Contract term provided for in this section shall extend 6 months beyond its termination date only for Authorized Users whose contracts must be registered with the Office of the New York City Comptroller. During the 6-month period the definition of Authorized User shall be deemed to refer only to Authorized Users whose contracts must be registered with the Office of the New York City Comptroller. This extension is in addition to any other extensions available under the Contract. The extension provided for in this paragraph shall be upon the then-existing terms and conditions; provided, however, during such extension an Authorized User, as defined in this paragraph, may agree to amend such terms and conditions solely to comply with changes in statutory requirements (e.g. changes in minimum, prevailing or living wages, or regulated services).

4.2 Short Term Extension

This section shall apply in addition to any rights set forth in Appendix B, Contract Term – Extension, and may be used either before the extension referenced in Appendix B, or after. In the event that OGS determines that a short term extension is in the best interests of the State, (e.g., a replacement Contract has not been issued, or an extended period is needed for Authorized Users to transition to another procurement method), any Contract let and awarded hereunder by the State may be extended unilaterally by the State for an additional period of up to 30 calendar days upon notice to the Contractor with the same terms and conditions as the original Contract and any previously approved modifications. With the concurrence of the Contractor, the extension may be for a period of up to 90 calendar days in lieu of 30 calendar days. However, unless otherwise noted in the extension notification or agreement, this extension automatically terminates should a replacement Contract be issued in the interim.

GROUP 01800 – Road Salt, Treated Salt, & Emergency Standby Road Salt (Statewide) PAGE 10

4.3 Price

Pricing will be collected using Attachment 1 – Pricing in accordance with the Instructions tab listed within Attachment 1.

Price shall include all customs and duties and be net per ton, FOB destination designated on purchase order, including unloading of the bulk salt. Contract prices shall be firm except for price revisions permitted in accordance with the following clauses:

• Price Escalation Based on Exceeding 120% of Filed Requirement

• Price Escalation Based on Exceeding 130% of Filed Requirements

• Fuel Price Adjustment

• Price Adjustment for Renewals

Furthermore, the stated prices may be adjusted periodically based on various provisions.

4.3.1 Storage Fees

Submission of pricing for Storage Fees shall be collected on Attachment 1 - Pricing.

Price per ton is not to exceed $3.60/ton to store salt on behalf of the Authorized User from September 1, 2025 until December 31, 2025. Salt stored from January 1, 2026 and beyond will be priced per ton, per month not to exceed $8.00/ton.

4.3.2 Price Escalation Based on Quantities Exceeding 120% & 130% of Filed Requirement A price escalation will be permitted when delivered quantities exceed 120%, and again at 130% of an Authorized User’s filed requirement.

Contractors shall notify Authorized Users of the applicable price escalation amount at the time an order is placed (if an escalation in price for future purchases is to be applied).

A unit price increase of 10% will be allowed once quantities delivered are over 120% of an Authorized User’s filed requirement. Once deliveries exceed 130% of an Authorized User’s filed requirement the price increase will change to 15%.

Once the Contractor notifies the Authorized User that a price escalation is applicable, Authorized Users are allowed to solicit prices from other suppliers. If a lower price is secured, the awarded Contractor for the specific location/salt type must be given an opportunity to match or better the price offered by the other supplier offering the lower price.

If the awarded Contractor will not or cannot match or better the lower offered price, Authorized Users may meet their needs from the supplier offering the lower price.

Authorized Users with multiple delivery sites (e.g. NYSDOT, NYS Thruway and County Highways) shall have their minimum/maximum delivery quantities determined based on the sum of all their sites serviced by awarded Contractor.

Contractors will continue to deliver to all Authorized Users including up to 130% of the Authorized User’s filed requirement. Failure to deliver may result in a “Buy Against” or a delivery deduction to the Contractor.

GROUP 01800 – Road Salt, Treated Salt, & Emergency Standby Road Salt (Statewide) PAGE 11

4.3.3 Fuel Price Adjustment

A fuel price adjustment may be made to Contract pricing in accordance with the following procedure:

• On a monthly basis an amount may be added or deducted from Contract pricing based on calculations made referencing prices posted in the "EIA Retail On-Highway Diesel Prices".

• The New England PADD 1A shall be the designated posting for the adjustments. If this source becomes unavailable, unworkable, unsuitable, or not reflective of the market conditions, then another source may be selected by the Commissioner of General Services in his/her sole discretion.

• Fuel Price adjustments will be applicable for deliveries of road salt & treated salt made during the Contract period. The fuel price adjustment shall be applied for the date of delivery.

Ex.: If a purchase order for salt is received on January 30, and the salt is delivered on February 2, the fuel price adjustment used will be that for the month of February.

• The base rate used for calculating adjustments shall be the rate shown in the referenced EIA on the date of the Bid Opening indicated on the page 1 of this Invitation for Bids and adjustments will be permitted monthly.

• The monthly average will be arrived at by using the Monday prices for a given month as displayed in the EIA Retail On-Highway Diesel Prices and determining an average for that month. The previous month's prices shall be used to determine the monthly average (i.e. – August’s prices will be used to determine September’s adjustment). All prices will be rounded to two decimal places.

Fuel Price Adjustment calculations will be posted to the OGS website monthly:

https://ogs.ny.gov/procurement/ogs-centralized-awards-list.

EXAMPLE FUEL PRICE ADJUSTMENT INCREASE:

Published rate on date of bid opening $4.07 Monthly Average Price $4.17 Monthly Average Price – Published rate on date of bid opening = Fuel Price Adjustment $4.17 - $4.07 = $0.10 = Additional amount allowed to be added to price per ton.

EXAMPLE FUEL PRICE ADJUSTMENT DECREASE:

Published rate on date of bid opening $4.07 Monthly Average Price $3.97 Monthly Average Price – Published rate on date of bid opening = Fuel Price Adjustment $3.97 - $4.07 = - $0.10 = Amount allowed to be deducted from price per ton.

Deliveries made to meet minimum filed requirement obligations after contract expiration on August 31, 2025 (where no extension has been granted) will apply the Fuel Price adjustment average for the month in which the product was delivered which will be calculated using the base price established for the Invitation for Bids.

GROUP 01800 – Road Salt, Treated Salt, & Emergency Standby Road Salt (Statewide) PAGE 12

4.3.4 Additional Notes on Fuel Price Adjustment

Should postings become unavailable, not reflective of market conditions, or differ from current description and/or format, a posting determined by the Commissioner of General Services in his/her sole discretion to be most reflective of market conditions will be used.

Corrections to posted prices will be considered only when caused by a typographical or clerical error on the part of said posting.

The following shall apply to all additional price amounts under any Contract awarded:

• Price adjustments are limited to changes in pre-selected posting as noted above.

Increases in Contract costs or prices to compensate for other increases in the cost of doing business, regardless of the cause or nature of such costs of the Contractor, will not be allowed during the Contract period, except as indicated under the fuel price adjustment and price escalation clause herein.

• Should the price structure utilized by the parties become unworkable for the State, detrimental or injurious to the State, or result in prices which are not truly reflective of current market conditions and the price is deemed unreasonable or excessive by the Commissioner of General Services, and no adjustment in price is mutually agreeable, the Commissioner of General Services reserves the sole right upon 10 days written notice mailed to the Contractor to terminate any Contract resulting from this bid opening.

If the Contractor is unable or unwilling to meet contractual requirements in whole or in part, it shall immediately notify the State of that fact in order that the State may take appropriate action. Such notification shall be in writing and shall be directed to the OGS Procurement Services. Such notification shall not relieve the Contractor of its responsibilities under the Contract.

In the event of an extension, the base rate for calculating adjustments will be the rate shown in the referenced EIA on the date of the next bid year’s bid opening and for subsequent years additional extensions would follow this format. If there is no bid opening date for the next year, the base rate for calculating adjustments will be the rate shown in the referenced EIA one year after the last bid opening date. If the date is not a business date when the posting occurs, the next business day will be the date used for the adjustment.

4.3.5 Price Adjustment for Renewals

Price adjustments for extensions or renewals shall be negotiated and mutually agreed upon by OGS and each Contractor. OGS’s review may include appropriate indices as determined by OGS, market conditions reflecting supply and demand, and other economic factors deemed appropriate by OGS. Each Contractor's review will be independent.

4.3.6 Price Reductions

Contractors shall be permitted to reduce their pricing any time during the Contract term.

4.4 Best Pricing Offer

During the Contract term, if the Commissioner becomes aware that the Contractor is selling substantially the same or a smaller quantity of a Product outside of this Contract upon the same or similar terms and conditions as that of this Contract at a lower price to a federal, state or local governmental entity, the price under this Contract, after consultation with the Contractor, may be reduced to a lower price on a prospective basis at the discretion of the Commissioner. The Commissioner reserves the right to request information to verify pricing for the purposes of this clause.

GROUP 01800 – Road Salt, Treated Salt, & Emergency Standby Road Salt (Statewide) PAGE 13

4.5 Price Structure

If, during the Contract Term, the Contractor is unable or unwilling to meet contractual requirements in whole or in part based on the price structure of the Contract, it shall immediately notify the Office of General Services, Procurement Services in writing. Such notification shall not relieve the Contractor of its responsibilities under the Contract. The State may, but is not required to, consider an equitable adjustment in the Contract terms and/or pricing in the circumstances outlined in Appendix B, Savings/Force Majeure.

Should the Commissioner in his or her sole discretion determine during the Contract Term that (i) the Contract price structure is unworkable, detrimental, or injurious to the State, or (ii) the Contract price structure results in prices which are unreasonable, excessive, or not truly reflective of current market conditions, and no adjustment in the Contract terms and/or pricing is mutually agreeable, the State may terminate the Contract upon 10 business days written notice mailed to the Contractor.

4.6 Ordering

Purchase Orders shall be made in accordance with the terms set forth in Appendix B, Purchase Orders. Authorized Users may submit orders over the phone, and, if available, may submit orders electronically via web-based ordering, e-mail, or facsimile at any time. Orders submitted shall be deemed received by Contractor on the date submitted.

All orders shall reference Contract number, requisition, and/or Purchase Order number (if applicable). Upon Contractor’s receipt of an order, confirmation is to be provided to the Authorized User electronically or via facsimile. Order confirmation should be sufficiently detailed, and include, at a minimum, purchase price, date of order, delivery information (if applicable), Authorized Username, and sales representative (if applicable).

4.7 Purchasing Card Orders

If the Contractor accepts orders using the State’s Purchasing Card (see Appendix B, Purchasing Card), also referred to as the Procurement Card, the Contractor shall not charge or bill the Authorized User for any additional charges related to the use of the Purchasing Card, including but not limited to processing charges, surcharges or other fees.

4.8 Minimum Order

The minimum order for this Contract is 22 tons.

4.9 Minimum/Maximum Purchase Obligations

Authorized Users are obligated to take a minimum of 50% of their filed requirements during the Contract period:

Contractors are obligated to deliver up to 130% of the filed requirement for Road Salt and Treated Salt.

Authorized Users with multiple delivery sites (e.g., NYSDOT, County Highways and NYS Thruway) shall have their minimum/maximum delivery quantities determined based on the sum of all their sites serviced by a Contractor per lot.

When the Authorized User is not able to take the minimum filed requirement amount, the awarded Contractor for the specific location will store salt for the Authorized User until December 31, 2025 for a one time/per ton storage fee not to exceed $3.60/ton. If storage is necessary for an Authorized User from January 1, 2026 and beyond, the awarded Contractor may offer storage at a per month per ton rate.

GROUP 01800 – Road Salt, Treated Salt, & Emergency Standby Road Salt (Statewide) PAGE 14

4.10 Invoicing and Payment

Invoicing and payment shall be made in accordance with the terms set forth in Appendix B, Contract Invoicing.

The Contractor is required to provide the Authorized User with one invoice for each Purchase Order at the time of delivery. The invoice must include detailed line item information to allow Authorized Users to verify that pricing at point of receipt matches the Contract price on the original date of order.

At a minimum, the following fields must be included on each invoice:

• Contractor Name

• Contractor Billing Address

• Contractor Federal ID Number

• NYS Vendor ID Number

• Account Number

• NYS Contract Number

• Name of Authorized User indicated on the Purchase Order

• NYS Agency Unit ID (if applicable)

• Authorized User’s Purchase Order Number

• Order Date

• Invoice Date

• Invoice Number

• Invoice Amount

• Product Descriptions

• Unit Price

• Quantity

• Unit of Measure

• Dates of Service (if applicable)

Cost centers or branch offices within an Authorized User may require separate invoicing as specified by each Authorized User. The Contractor's billing system shall be flexible enough to meet the needs of varying ordering systems in use by different Authorized Users. Visit the following link for further guidance for vendors on invoicing: https://bsc.ogs.ny.gov/nys-vendors.

4.11 Delivery Terms

Road salt and treated salt shall be shipped bulk delivery as outlined below.

4.11.1 Delivery Schedule

The Delivery Schedule for this Solicitation is included as an Attachment. It is provided as a guide to indicate proposed delivery points and estimated annual requirements. Contractors shall be obligated to add to the delivery schedule any State Agency that submits filed requirement(s) on or before December 31 of the Contract term. Any State Agency that submits filed requirement(s) after December 31 shall be eligible to be added to the delivery schedule and receive deliveries at the Contractor’s discretion only.

Any political subdivision or other non-state entity which has not filed a requirement with OGS Procurement Services as of the date of the bid opening shall be eligible to be added to the delivery schedule and receive deliveries at the Contractor’s discretion only.

Contractors will be advised regarding political subdivisions or other non-State entities which have filed on a timely basis but do not appear on the delivery schedule.

GROUP 01800 – Road Salt, Treated Salt, & Emergency Standby Road Salt (Statewide) PAGE 15

4.11.2 Compliance with Delivery Schedule & Purchase Orders

Delivery shall be made in accordance with instructions on the Purchase Order from each Authorized User and delivery instructions/conditions as shown in the referenced Delivery Schedule. Contractors should carefully review the delivery schedule and make note of these requirements. If there is a discrepancy between the purchase order and what is listed in the Contract and/or within the delivery schedule, it is the Contractor’s obligation to seek clarification from the ordering Authorized User and, if applicable, from OGS Procurement Services.

If no representative of the Authorized User is available at the time of delivery, the Contractor shall make a reasonable effort to notify the Authorized User of the delivery, either by phone or by email.

4.11.3 Ordering Timeliness

Orders must be placed before 2 p.m. Any orders placed after 2 p.m. shall be deemed as having been placed on the next business day.

4.11.4 Holidays/Weekends

If the scheduled delivery is to occur on a holiday or weekend, the next weekday will be the delivery date, unless the Contractor and the ordering Authorized User mutually agree differently.

4.11.5 Prevention of Contamination

Delivery trucks shall be inspected (and cleaned if necessary) prior to loading to prevent contamination of salt loads by residual materials found in the truck bodies. Any loads found to be contaminated may be subject to rejection with all related cleanup and/or replacement costs to be borne by the Contractor.

All shipments of salt shall be totally covered with a waterproof, non-porous tarpaulin, or similar sheeting material. Torn, ripped or mesh coverings may be cause for rejection of shipment. Also, evidence of free-flowing water/brine in particular shipments may be cause for rejection.

Upon inspection of delivered salt, the material shall be uniform in appearance, free flowing and free from visual evidence of foreign matter including but not limited to dirt, stone, chips, trash or any other material that could reasonably be expected to interfere with the use, handling or storage of the salt. Salt shall be received in a free-flowing and usable condition.

The right is reserved to consider truckloads of salt delivered by the Contractor to any one Authorized User on a single day to be a single delivery. Price deductions imposed because of contamination may be imposed on the total day’s delivery.

If the Authorized User accepts contaminated salt (or salt delivered in a lumpy condition which requires reprocessing in order to make it usable) this shall be cause for rejection of the entire delivery, with a replacement delivery to be made at no additional charge to the Authorized User.

If, because of emergency conditions, it is necessary for the Authorized User to accept and reprocess the Salt for use, all costs of reprocessing will be charged to the Contractor.

For operational reasons, an additional 10% price deduction may be placed on the Contractor by the Authorized User after consultation with the Contractor and OGS Procurement Services.

Agencies will submit to OGS supporting documentation for price deduction in regard to contamination. OGS Procurement Services will review and will have final approval as to price deduction applied.

GROUP 01800 – Road Salt, Treated Salt, & Emergency Standby Road Salt (Statewide) PAGE 16

4.11.6 Non-Complying Product – Price Deduction

A non-complying product price deduction is not to be assessed unless the proper analysis and test procedures are followed. If the Contractor consistently delivers salt found to be outside the specification requirements for moisture content, or consistently not conforming to the gradation requirements, the Contract shall be subject to cancellation either in whole or in parts.

The right is reserved to consider truckloads of salt delivered by the Contractor to any one Authorized User on a single day to be a single delivery. Price deductions imposed because of deviation from specifications may be imposed on the total day’s delivery.

4.11.7 Acceptance

The salt may be rejected if it fails to conform to any of the requirements of this Solicitation or the specifications in Attachment 10 – Road & Treated Salt Specifications.

4.11.8 Weight Tickets

All shipments of bulk salt shall be accompanied by a weight ticket of a licensed weigh master indicating the producer, net weight of the delivery, and in the case of bulk delivery, the stockpile source. Tickets should be completely filled out with hauler name (printed and signed) and AU rep name printed and signed (if AU rep is present at the time of delivery).

The certification must bear the weigh master’s signature; weights shall be recorded from a scale equipped with a weight printing device. Handwritten weights are not acceptable without prior approval of OGS.

In the event that handwritten tickets must be used, the Contractor must contact OGS Procurement Services to obtain approval prior to delivery of the order.

4.11.9 Delivery Timetable

Completed delivery, at the latest, is required as follows:

• Contractor is required to deliver orders of 600 tons or less* within three (3) Business Days of Authorized User placing an order.

• Contractor will be required to deliver a minimum of 200 tons per day after the initial 600-ton delivery.

• Multiple orders placed for the same delivery site that overlap will be viewed as a single order, still subject to the overall 200 tons per day minimum delivery.

Authorized Users are advised not to place orders that exceed their maximum storage capacity.

See below, Delivery Timetable Example for more information.

Single Order Placed on

First 600 Tons or Less*

Delivered by 601 - 800 Tons Delivered by

801 -1000 Tons Delivered by

Over 1000 Tons Delivered by

Monday Thursday Friday Monday 200 Tons/Day/Location Tuesday Friday Monday Tuesday 200 Tons/Day/Location Wednesday Monday Tuesday Wednesday 200 Tons/Day/Location Thursday Tuesday Wednesday Thursday 200 Tons/Day/Location Friday Wednesday Thursday Friday 200 Tons/Day/Location

*if full amount of order is less than 600 tons

GROUP 01800 – Road Salt, Treated Salt, & Emergency Standby Road Salt (Statewide) PAGE 17

Delivery Timetable Example An order of 1,400 tons placed on Monday shall be delivered as follows (or sooner):

Note: Authorized Users are advised that their supply should be replenished on an ongoing basis, as it is depleted. It is not advised to allow the supply of product on-hand to reach a level that is dangerously low. This can cause undue stress to the delivery network during high levels of demand, which can be compounded by inclement weather conditions that adversely impact transit times for deliveries.

4.11.10 Delivery Rate Guarantees/Exceptions

From September 1 through the following May 31 of each Contract term, Contractors shall be required to make deliveries within the timetables set forth in Section 6.10.9, Delivery Timetable. However, from June 1 through August 31 of each Contract term, delivery shall be at the discretion of the Contractor.

Contractor shall notify the Authorized User and OGS Procurement Services promptly regarding anticipated performance issues such as low supply, late delivery, lack of Product, and insufficient hauling capability. Failure by the Contractor to do so may result in liquidated damages and/or a buy against in accordance with Section 6.10.11 - Liquidated Damages and Section 6.10.12 - Buy Against.

Although Contractors are expected to make every effort to meet these delivery timeframes, some exceptions may be made for extreme road and/or weather conditions (e.g. roadways that are closed, obstructed, or impassable due to winter weather conditions). Allowances for exceptions must be approved by the Office of General Services, Procurement Services, whose decision shall be final. Delivery will be allowed during the weekend and on State holidays only if the Contractor and the ordering Authorized User mutually agree. No additional remuneration will be made for a Saturday, Sunday, or holiday delivery.

4.11.11 Liquidated Damages

During the Contract period, each September through the following May 31, deliveries that do not meet the daily delivery tonnage requirements and/or the established order completions period specified, shall be considered cause for interruption of the proper implementation of the State's winter roadway safety. If it is determined that the interruption is caused by non-performance or negligence on the part of the Contractor, OGS Procurement Services and the Contractor presume that in the event of any such delay, the amount of damage that is sustained from a delay in daily delivery tonnage requirements and/or the established order completions period specified, is the greater of either:

1. $100.00 per Business Day per Purchase Order or individual orders against blanket Purchase Orders, as applicable; or

2. 1% of the value of the Purchase Order or individual orders against blanket Purchase Orders, as applicable, for each Business Day that the breach is not cured by the Contractor.

OGS Procurement Services and the Contractor agree that in the event of any such delay the awarded Contractor shall pay such amount as liquidated damages.

During times when an Authorized User must work with the Contractor to prioritize/coordinate deliveries due to delays, the Contractor is not absolved from meeting delivery timetable requirements at other locations. During times of extreme weather activity that impact deliveries system-wide, OGS may consider waiving liquidated damages.

Order Placed on

Thursday Delivery

Friday Delivery

Monday Delivery

Tuesday Delivery

Wednesday Delivery

Monday 600 tons 200 tons 200 tons 200 tons 200 tons

GROUP 01800 – Road Salt, Treated Salt, & Emergency Standby Road Salt (Statewide) PAGE 18

The following options may be used by Authorized Users for deducting amounts due to the Contractor because of liquidated damages:

1. Authorized User may deduct such amount from any money payable to the Contractor, or

2. Authorized User may bill the Contractor separately.

Costs incurred include, but are not limited to the following:

• Increased personnel costs due to demurrage.

• Increased costs incurred for treatment of salt on hand to extend usage;

• Costs for clean-up after required application of alternative snow and ice control materials (i.e. salt mixed with sand).

Liquidated damages may be applied to the Contractor by the Authorized User only after consultation with the Contractor and OGS Procurement Services. A request for the application of liquidated damages must be made to OGS within thirty (30) days of the event. Damages must be memorialized by supporting documentation that must be provided to OGS Procurement Services for review and approval.

4.11.12 Buy Against

Contractors must supply Product in accordance with the terms of the Contract and instructions on Purchase Orders. In the event of the Contractor’s failure to deliver in accordance with Contract requirements, purchase of a specific quantity (pre-determined by OGS), utilizing the Emergency Standby Provision or the open market at the Contractor’s expense may be authorized by OGS. Such authorized purchases will result in chargeback of the cost above the Contract price to the Contractor who fails to comply with delivery terms.

The Authorized User must make OGS Procurement Services aware of the non-delivery and allow OGS Procurement Services to ascertain if immediate delivery can be made by the Contractor prior to obtaining authorization from OGS Procurement Services to make an Emergency Standby purchase or a purchase on the open market.

If open market Treated Salt is not readily available, the Authorized User at their discretion may purchase Road Salt, in lieu of Treated Salt, for the undelivered quantity utilizing the Emergency Standby Road Salt Provision and if that option is not available, from the open market.

Any price difference above the Contract price of Treated Salt (Lot II and/or Lot III) will be deducted from future payments or billed to the Treated Salt Contractor. The Contractor of the Road Salt in this case may not be the non-performing Contractor of the Treated Salt (Lot II and/or Lot III). The Authorized User must obtain authorization to use this option also from OGS Procurement Services.

4.12 Emergency Standby Road Salt Provision - Use Guidelines

It is the intention of the Emergency Standby Road Salt Provision to be utilized only when emergency purchases of Road Salt are determined to be necessary (e.g., to be used for an impending storm when reserves are insufficient, and/or if the primary Contractor is unable to make a delivery when needed by the Authorized User).

Emergency Standby Road Salt will be able to be provided by any Contractor that holds an active award with NYS OGS Procurement Services under any Group 01800 Road Salt, Treated Salt, & Emergency Standby Road Salt contract.

GROUP 01800 – Road Salt, Treated Salt, & Emergency Standby Road Salt (Statewide) PAGE 19

These Emergency Standby Road Salt purchases may be made only after:

A. The Contractor has failed to perform, or an Authorized User has a need to purchase due to an extenuating circumstance; and B. Authorization for the purchase has been granted by OGS Procurement Services

4.12.1 Lot I – Road Salt

In the event that a Contractor has failed to perform, State agencies and municipalities who filed requirements for the current Road Salt Contracts under Group 01800 – Lot I, may make purchases using the Emergency Standby Road Salt Provision.

If the current awarded Contractor for Road Salt is unable to supply needed Product, the Authorized User may “charge back” the difference in price to the awarded Contractor under the applicable Group 01800 – Lot I. For more information see section “Emergency Standby Road Salt Provision – Buy Against” below.

In the event that an Authorized User has been impacted by extenuating circumstances, approval to purchase using the Emergency Standby Road Salt Provision may be granted by OGS Procurement Services. This action will not result in a charge back to the awarded Contractor and is not dependent on the Authorized User having filed requirements for the current Road Salt Contracts under Lot I.

4.12.2 Lot II and Lot III – Treated Salt

OGS Procurement Services may, on a case-by-case basis, approve emergency purchases to be made by State agencies and municipalities (i.e. Authorized Users) who filed requirements under Group 01800 – Lots II and III (Treated Salt – Type 1 and Type 2)

In these cases, Road Salt would be provided in lieu of Treated Salt. State agencies and municipalities may charge back the difference in price to their original Treated Salt Contractor under Group 01800, as applicable. For more information see section “Emergency Standby Road Salt Provision – Buy Against Process” below.

The Contractor providing Emergency Standby Road Salt in lieu of Treated Salt shall not be the non-performing supplier of the Treated Salt (Lot II and Lot III).

4.12.3 Emergency Standby Road Salt Provision – Ordering Process After receiving OGS Procurement Services approval, Authorized Users should contact any Contractors awarded a NYS OGS Procurement Services contract under Group 01800 contracts to provide Road Salt.

The Authorized User may request a quote from all awarded Contractors and use the results to place a Purchase Order. The quote should specifically address delivery time and ability to deliver which may be a determining factor in the choice of Contractor.

4.12.4 Emergency Standby Road Salt Provision – Buy Against Process In the event that the awarded Contractor has failed to perform, the difference between the current awarded price for Road Salt (Lot I) and the amount paid for the provision of salt under the Emergency Standby Road Salt Provision may either be deducted or “charged back” by the Authorized User in one of the following ways:

a). When an invoice is due:

Authorized User may deduct the additional increased amount from the amount due to the Contractor in that invoice under the applicable current Lot I Award b). When an invoice is not due:

GROUP 01800 – Road Salt, Treated Salt, & Emergency Standby Road Salt (Statewide) PAGE 20

The awarded Contractor will issue a credit or refund to the Authorized User for the difference in price between the amount owed under Lot I Award and the amount due to the Contractor

In either case, OGS Procurement Services will have already given authorization and receive a copy of the final invoice for the delivery. Authorized Users should document in detail the following:

• The date Purchase Orders were placed with their current Contractor,

• The quantity(ies) ordered,

• The date(s) and quantity(ies) received,

• Current Inventory, and

• All correspondence with current Contractor relative to late delivery(ies).

This information should be emailed to OGS Procurement Services at:

OGS.sm.SST_roadsalt@ogs.ny.gov

Upon receipt, the information will be reviewed, and the Authorized User will be contacted by OGS. If permission is granted for a purchase, Contractor and Authorized User will be contacted via e-mail. The Authorized User must attach the e-mail granting permission and all documentation previously submitted to OGS (as referenced in the above bullets) to their Purchase Order when processing for payment.

Tonnage purchased as a result of the application of the Emergency Standby Road Salt Provision will be deducted from the Authorized Users minimum filed requirement thereby reducing the final tonnage amount required to meet the 50% minimum purchase requirement.

If at any time during the Contract period, extenuating circumstances arise, and it is determined by the Office of General Services that the Contractor does not have adequate inventory, award may be made at documentation previously submitted to OGS (as referenced in the above bullets) to their Purchase Order when processing for payment.

4.13 On Ground/Delivered Inventory

Contractor shall have the following on-ground/delivered inventory reserved solely for Office of General Services Authorized Users as follows:

• October 1, 2024 - 35% of filed requirement for awarded counties

• November 1, 2024 - 50% of filed requirement for awarded counties

After November 1, 2024, the Contractor is obligated to maintain inventories adequate to provide deliveries as requested in the time frames and quantities requested. Any failure by the Contractor to deliver pursuant to Contract terms may result in a “buy against” to that Contractor in accordance Section 6.10.12 - Buy Against.

Upon request, Contractor shall be required to provide OGS Procurement Services with biweekly status updates of inventory on hand throughout the winter season that is dedicated to Authorized Users under the Contract. This shall include detailed information regarding tonnage currently in inventory at stockpile locations which is dedicated to Authorized Users of the Contract, and anticipated production or delivery of additional tonnage necessary to meet contractual requirements.

4.14 NYS Financial System (SFS)

New York State is currently operating on an Enterprise Resource Planning (ERP) system, Oracle PeopleSoft software, referred to as the Statewide Financial System (SFS). SFS supports requisition-to-payment processing and financial management functions.

The State may be implementing additional PeopleSoft modules in the near future. Further information regarding business processes, interfaces, and file layouts currently in place may be found at: http://www.sfs.ny.gov and http://www.osc.state.ny.us/agencies/guide/MyWebHelp/

GROUP 01800 – Road Salt, Treated Salt, & Emergency Standby Road Salt (Statewide) PAGE 21

4.15 Americans with Disabilities Act (ADA)

The federal ADA bars employment discrimination and requires all levels of government to provide necessary and…