1024-024_Well_Log_Digitization_IFB.pdf

Gavin Newsom, Governor Jennifer Luchessi, Director

INVITATION FOR BID

Notice to Prospective Bidders

March 13, 2025

BID NO.: 1024-024

TITLE: Well-Log Digitization

The California State Department of Conservation (Department) requires the digitization of raster geophysical well-logs into LAS files within California primarily covering the Central Valley (San Joaquin Valley and Sacramento Valley) of California that will be used to identify, survey and assess the suitability of subsurface geologic reservoirs in California for carbon sequestration by the California Geological Survey (CGS) in compliance with California state legislation (SB 9051). You are invited to review and respond to this Invitation for Bid (IFB), entitled 1024-024 Well Log Digitization. In submitting your bid, you must comply with these instructions listed herein. The Department must receive bids by March 28, 2025 at 5:00pm.

Note that all agreements entered into with the State of California will include by reference General Terms and Conditions (02/2025) and Contractor Certification Clauses (04/2017). If you do not have Internet access, a hard copy can be provided by contacting the person listed below.

In the opinion of the Department, this IFB is complete and without need of explanation. However, the Department may release, in a timely manner, an addendum to this IFB. Potential bidders may submit questions regarding intent, expectations, or other topics pertaining to the actual bid by contacting Samantha Brooks via email at: ServiceContracts@conservation.ca.gov. Questions must be received by March 18, 2025 at 3:00pm. All questions received by the Department will be answered and posted to Cal eProcure by March 21, 2025 at 3:00pm.

Please note that no verbal information given will be binding upon the State unless such information is issued in writing as an official addendum.

Samantha Brooks Department Contracts Analyst ServiceContracts@conservation.ca.gov

1 https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220SB905 https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-Services-Resources-List-Folder/Standard-Contract-Language https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-Services-Resources-List-Folder/Standard-Contract-Language mailto:ServiceContracts@conservation.ca.gov https://www.caleprocure.ca.gov/pages/index.aspx mailto:ServiceContracts@conservation.ca.gov https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220SB905

Department of Conservation Bid Number 1024-024

Well Log Digitization

Table of Contents I. Description of Services

A. Overview

B. Period of Performance/Available Funding

C. Work to Be Performed

D. Contractor Shall

E. Executive Order N-6-22 – Russia Sanctions

II. Budget Detail and Payment Provisions

A. Invoicing and Payment

B. Budget Contingency Clause

C. Prompt Payment Clause

III. Bidder Minimum Qualifications

IV. Bid Requirements and Information A. Key Action Dates and Times

B. Questions and Answers

C. References

D. Cost Detail Format and Requirements

E. Submission of Bid

F. Evaluation and Selection

G. Award and Protest

H. Disposition of Bids

I. Payee Data Record

J. Contractor Certification Clauses (CCC 04/2017)

K. Generative Artificial Intelligence Notification Clause

L. Tax Delinquent Status Verification

M. Preference Programs

N. Commercially Useful Function (CUF)

V. Required Attachments

Attachment 1: Required Attachment Checklist

Attachment 2: Bid Sheet and Response

Attachment 3: Bid/Bidder Certification Sheet

Attachment 4: Bid/Bidder Declaration

Attachment 5: Darfur Act Certification

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Attachment 6: Disabled Veteran Business Enterprise Declarations (STD 843)

Attachment 7: Bidder References

Attachment 8: Bidder’s Summary of Contract Activities and Labor Hours (DGS/PD 526)

Well Log Digitization

I. Description of Services

A. Overview

The Department of Conservation (Department) requires the digitization of raster geophysical well-logs from tagged image file format (TIFF) into Log ASCII Standard (LAS) formatted files within California. This effort will primarily cover the Central Valley (San Joaquin Valley and Sacramento Valley) of California and will be used to identify, survey and assess the suitability of subsurface geologic reservoirs in California for carbon sequestration by the California Geological Survey (CGS) in compliance with California state legislation (SB 9052).

The CGS recently formed a Geologic Carbon Sequestration Group (GCSG) to comply with California state legislation (SB 9051) mandating the creation of a Geologic Carbon Sequestration Group within the CGS. Specifically, the law mandates the GCSG with the task of identifying high quality, suitable locations3 for the geologic sequestration of carbon dioxide, commonly known as carbon capture and sequestration (CCS) or carbon dioxide removal (CDR). To understand where there is high quality, suitable underground geologic reservoirs for CCS, it is necessary to have a map of the pertinent underground geologic units in three dimensions. 3D subsurface geologic mapping and methodologies of characterization and modeling can be used to screen for potential sequestration reservoirs, using various geoscientific data as input. The fundamental data used for this type of geologic characterization and investigation are geophysical well-logs. More specifically, digital geophysical well-logs are required for investigation and geologic mapping of subsurface rock formations, facies identification and corresponding reservoir quality, geologic structures, and fault interpretation as well as to make quantifiable reservoir quality estimations including porosity and permeability for geostatistical inputs in 3D geologic models, and geophysical velocity modeling including well-ties for seismic stratigraphic interpretation. These data will provide the GCSG with urgently needed, quantifiable geologic sequestration resources to support developmental and regulatory efforts. The currently available data are raster geophysical well-logs, which are image files limited to qualitative applications only, whereas fully quantitative analytical measurements derived from digital geophysical well-logs are required.

The CGS has identified at least 36% of California’s land area4 to assess the potential of geologic CO2 sequestration and removal systems in different geologic formation types (such as sedimentary or igneous rocks). Each of these needs urgent resource potential and associated induced risk assessments. There are more suitable areas to be identified. Additionally, there are likely many areas that are also unsuitable for sequestration activities due to the likelihood of inducing geologic hazards.

Statewide assessments for each of these CO2 sequestration and removal locations have been undertaken at varying levels and, in some cases, none. However, all are largely lacking detail to adequately inform wise land use decisions needed toward regulatory oversight and developmental support. These critical assessments have been successfully provided by similar state geological surveys5, and have provided significant time and cost savings to past and present projects, both in

2 https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220SB905 3 Underground reservoirs that have been modeled to be capable of maintaining integrity for at least 1,000 years 4 150,000 square kilometers, or about 58,000 square miles 5 https://www.beg.utexas.edu/gccc; https://geology.utah.gov/energy-minerals/carbon-sequestration/;

https://www.wsgs.wyo.gov/energy/co2-storage; https://www.kgs.ku.edu/PRS/ICKan/reports.html https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220SB905 https://www.beg.utexas.edu/gccc https://geology.utah.gov/energy-minerals/carbon-sequestration/ https://www.wsgs.wyo.gov/energy/co2-storage https://www.kgs.ku.edu/PRS/ICKan/reports.html

Well Log Digitization site selection and completion of permitting requirements6. Geologic mapping and modeling, central tasks of these assessments, have been shown to provide economic gains many times over public investment7.

There are three important levels of assessment that other state geological surveys have already undertaken (for example, Utah, Illinois, & Texas). These include assessments at a low-resolution, or state level, using geologic data of limited detail and attribution to estimate the rough area of sequestration space over each reservoir and then multiply by a factor determined by reservoir quality data to define potential sequestration volumes and mass. The next step taken usually is to assess one or more areas using intermediate-resolution, or regional level, geologic data. This resolution is typically adequate for accelerating site development but not sufficient for regulatory support. A more detailed level occasionally taken by state surveys, is to assess reservoirs using high-resolution, or reservoir-level, geology data, which will likely be useful for most, but not all, regulatory functions. The high-resolution level of analysis is what is required from CGS to produce the information needed to inform the regulatory framework called for by SB 905.

Evaluating sequestration reservoirs throughout the state – considering relative ground movement and seismic risk, leakage potential, and potential risk to harm groundwater resources – can also help the state optimize the use of geologic storage reservoirs. For example, a statewide assessment of potential sequestration sites and their possible geologic risks and induced seismicity potential will allow California to optimize sites for compressed air or hydrogen gas storage, or other forms of energy storage, based on an evaluation of gas interaction in the ground, recoverability, and methodologies to monitor movement and leakage.

The Department intends to award one (1) service contract for this IFB.

B. Period of Performance/Available Funding

The schedule of performance of the Agreement shall be from April 7, 2025, or upon Department approval, whichever is later, through April 6, 2028. The Contractor agrees to start work no later than thirty (30) days after Department approval, or a mutually agreed upon time.

The Department will award a maximum of $100,000 for the agreement at a rate of not more than $20 per geophysical well-log curve.

Upon mutual consent, the Department and the Contractor may execute amendments to the executed Agreement for time due to schedule conflicts. A variation of the terms (i.e. change in project representative) requires mutual consent from the Department and Contractor and may be done through email. No verbal understanding, or agreement not incorporated into the executed Agreement is binding on either party.

6 Anecdotal evidence gained from recent communications with researchers, site developers, and regulators suggests time savings of ~3-9 months 7 https://static.ags.aer.ca/files/document/SPE/SPE_112_CH04.pdf;

https://onlinelibrary.wiley.com/doi/10.1002/9781119163091.ch4 https://static.ags.aer.ca/files/document/SPE/SPE_112_CH04.pdf https://onlinelibrary.wiley.com/doi/10.1002/9781119163091.ch4

Well Log Digitization

C. Work to Be Performed

Contractor agrees to provide to the Department all services as described herein:

The contractor will provide the digitization of raster geophysical well-logs to Log ASCII Standard (LAS) formatted files for a minimum of 5,000 geophysical well-log curves (e.g. one gamma ray log from one geophysical well-log recording in a raster file is equal to one well-log curve) with geophysical well-log curves to be chosen by CGS within 3 years of contract start date. LAS files produced by the contractor must include well header information including but not limited to state name, county name, API number, log description, datum reference, datum elevation, number of runs, log year, log maximum depth, log minimum depth, well total depth, mud density, and maximum temperature where available for all log runs in addition to an image of the log header for reference.

The contractor must deliver dashboard access to data products with a map search tool and tools for filtering data content as data becomes available. Final data products will be provided by File Transfer Protocol or equivalent with file names defined by API number and geophysical well-log curve names including a file index with associated header and location information. The State of California will be the owner with complete rights to the final products.

D. Contractor Shall

The contractor will provide the digitization of raster geophysical well-logs to Log ASCII Standard (LAS) formatted files for a minimum of 5,000 geophysical well-log curves (e.g. one gamma ray log from one geophysical well-log recording in a raster file is equal to one curve) with geophysical well-log curves to be chosen by CGS within 3 years of contract start date. LAS files produced by the contractor must include well header information including but not limited to state name, county name, API number, log description, datum reference, datum elevation, number of runs, log year, log maximum depth, log minimum depth, well total depth, mud density, and maximum temperature where available for all log runs in addition to an image of the log header for reference.

The contractor must deliver dashboard access to data products with a map search tool and tools for filtering data content as data becomes available. Final data products will be provided by File Transfer Protocol or equivalent with file names defined by API number and geophysical well-log curve names including a file index with associated header and location information. The State of California will be the owner with complete rights to the final products.

E. Executive Order N-6-22 – Russia Sanctions

On March 4, 2022, Governor Gavin Newsom issued Executive Order N-6-22 (the EO) regarding Economic Sanctions against Russia and Russian entities and individuals. “Economic Sanctions” refers to sanctions imposed by the U.S. government in response to Russia’s actions in Ukraine, as well as any sanctions imposed under state law. By submitting a bid or proposal, Contractor represents that it is not a target of Economic Sanctions. Should the State determine Contractor is a target of Economic Sanctions or is conducting prohibited transactions with sanctioned individuals or entities, that shall be grounds for rejection of the Contractor’s bid/proposal any time prior to

Well Log Digitization contract execution, or, if determined after contract execution, shall be grounds for termination by the State.

II. Budget Detail and Payment Provisions

A. Invoicing and Payment

Payment for services performed under the Agreement will be made upon receipt of an acceptable invoice. The Contractor shall invoice the Department upon successful completion of services rendered. Invoices may be submitted annually to:

715 P Street, MS XX-XX Sacramento, CA 95814

ATTN: TBD

Please note that invoices not submitted to one of the above listed addresses run the risk of not being received by the appropriate unit for processing or the appropriate unit not being aware that an invoice has been submitted. To ensure an invoice is received for processing and to start the Prompt Payment process it must be delivered to one of the addresses listed above.

An acceptable invoice must include:

• Date(s) of work performance

• Contractor’s name and address

• Department’s name and address

• Department Agreement number

• Appropriate itemization, that matches the Budget Detail

Please note that invoices not submitted to one of the above listed addresses run the risk of not being received by the appropriate unit for processing or the appropriate unit not being aware that an invoice has been submitted. To ensure an invoice is received for processing and to start the Prompt Payment process it must be delivered to one of the addresses listed above.

The Department will verify and approve or disapprove the invoice item(s). If the Department does not approve the invoice item(s), the Department will dispute the invoice, per Prompt Payment Act, and provide opportunity to the Contractor to resolve the dispute.

B. Budget Contingency Clause

It is mutually agreed that if the State Budget Act of the current year and/or any subsequent years covered under the Agreement does not appropriate sufficient funds for the program, the Agreement shall be of no further force and effect. In this event, the State shall have no liability to pay any funds whatsoever to the Contractor or to furnish any other considerations under the Agreement and the Contractor shall not be obligated to perform any provisions of the Agreement.

Well Log Digitization

If funding for any fiscal year is reduced or deleted by the Budget Act for purposes of this program, the State shall have the option to either cancel the Agreement with no liability occurring to the State or offer an Agreement amendment to the Contractor to reflect the reduced amount.

C. Prompt Payment Clause

Payment will be made in accordance with and within the time specified in the California Government Code Chapter 4.5, commencing with Section 927.

III. Bidder Minimum Qualifications

In order for bids to be considered responsive, Bidders must provide proof of meeting or exceeding the below minimum qualifications:

• Bidder has the ability to convert 5,000 raster well logs to LAS file within 3 years.

• Bidder has proof of providing digitized well logs in the form of LAS files with associated data derived from raster logs well header information including but not limited to state name, county name, API number, log description, datum reference, datum elevation, number of runs, log year, log maximum depth, log minimum depth, well total depth, mud density, and maximum temperature where available for all log runs in addition to an image of the log header for reference.

• Bidder performs quality checks to verify that the LAS files created are accurately representing the original raster logs.

• Bidder has proof of the ability to give dashboard access for final data products with a map search tool and tools for filtering data content. Final data products will be provided by File Transfer Protocol or equivalent with file names defined by API number and geophysical well-log curve names including a file index with associated header and location information.

IV. Bid Requirements and Information

A. Key Action Dates and Times

The following schedule has been established for informational purposes. Efforts will be made to adhere to this plan, but the Department reserves the right to adjust the dates and times as required by circumstances. All deadline times are Pacific Time Zone.

Event Dates and Times

IFB available to prospective Bidders March 13, 2025 at 2:00pm Written Questions Submission Deadline March 18, 2025 at 3:00pm Responses to Questions March 21, 2025 at 3:00pm Final Date for Bid Submission March 28, 2025 at 5:00pm

Public Bid Opening April 1, 2025 at 2:00 pm

Proposed Award Date** April 2, 2025

Well Log Digitization

**All dates and times after Submission of Final Bids are approximate and may be adjusted as conditions indicate, without addendum to this IFB.

B. Questions and Answers

Bidders requiring clarification of the intent or content of this IFB or on procedural matters regarding the competitive bidding process may request clarification by submitting questions in an email to the Department’s contact person listed on page one. To ensure a response, questions must be received in writing by the scheduled date specified in the above Key Action Dates and Times section. At the sole discretion of the Department, questions may be paraphrased by the Department for clarity.

Written responses to all questions will be collectively compiled and posted through an official addendum, according to the Key Action Dates and Times section, to the Cal eProcure website. It is the responsibility of the Bidder to check Cal eProcure for the list of questions and associated answers.

C. References

Provide two (2) references with a brief description of services provided. References must be provided using the attached, Bidder References Form.

Substitute personnel must meet the same minimum qualifications as described in this IFB. During performance of the Agreement, the Contractor must request prior written approval from the Department in advance of substitutions to receive reimbursement for associated costs.

D. Cost Detail Format and Requirements

The cost of the proposed work shall be broken down according to the work detailed in the Description of Services. The prices, set forth, shall remain in force for the stated term of the Agreement and shall include the cost of insurance, State sales tax, travel costs, and every other item of expenses, direct or indirect, to the total bid. The total costs of all tasks and milestones for the base bid cannot exceed $100,000. Use the Bid Sheet and Response Attachment to prepare the cost proposal.

E. Submission of Bid

1. Bids should provide straightforward and concise descriptions of the Bidder’s ability to satisfy the requirements of this IFB. The bid must be complete and accurate. Omissions, inaccuracies, or misstatements may be sufficient cause for rejection of a bid.

2. The bid package should be prepared in the least expensive method.

3. All bids must be submitted under sealed cover and sent to the Department by dates and times shown in the Key Action Dates and Times section. Bids received after this date and time will not be considered.

4. Bidders are encouraged to email their bid to: ServiceContracts@conservation.ca.gov. If a bidder prefers to mail in their bid, a minimum of one (1) original and two (2) copies of the bid must be https://www.caleprocure.ca.gov/pages/index.aspx https://www.caleprocure.ca.gov/pages/index.aspx mailto:ServiceContracts@conservation.ca.gov

Well Log Digitization submitted. Bidders submitting their bid via email must include the IFB number and IFB name (IFB Number 1024-024 Well Log Digitization) in the email subject line.

5. The original bid must be marked “ORIGINAL COPY”. All documents contained in the original bid package must have original signatures and must be signed by a person who is authorized to bind the bidding firm. All additional bid sets may contain photocopies of the original package.

6. If the Bidder submits proprietary or personal information within their bid, the information shall be redacted by the bidder as a separate email attachment or physical document. The redaction shall not interfere with the public’s ability to fully, completely, and accurately comprehend the bid content and should not otherwise be edited or altered as in Government Code 6250-6270.7.

7. The bid envelopes must be plainly marked with the IFB number and title, your firm name and address, and must be marked with "DO NOT OPEN", as shown in the following example:

715 P Street, MS 1807 Sacramento, CA 95814

ATTN: Samantha Brooks 1024-024 Well Log Digitization

DO NOT OPEN

Bids not submitted under sealed cover and marked as indicated may be rejected.

8. All bids may include the documents identified in the Attachment Checklist. Bids not including the proper "required attachments" shall be deemed non-responsive. A non-responsive bid is one that does not meet the basic bidder requirements.

9. Mail or deliver bids to the following address:

715 P Street, MS 1807 Sacramento, CA 95814

10. Bids must be submitted for the performance of all the services described herein. Any deviation from the work specifications will not be considered and may cause a bid to be rejected.

11. A bid may be rejected if it is conditional or incomplete, or if it contains any alterations of form or other irregularities of any kind. The Department may reject any or all bids and may waive an immaterial deviation in a bid package. The Department's waiver of an immaterial deviation shall in no way modify the IFB document or excuse the Bidder from full compliance with all requirements if awarded the agreement.

12. Costs incurred for developing bids and in anticipation of award of the agreement are entirely the responsibility of the Bidder and shall not be charged to the State of California.

https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?division=7.&chapter=3.5.&lawCode=GOV&title=1.&article=1.

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13. An individual who is authorized to bind the Bidder contractually shall sign the Bid/Bidder Certification Sheet. The signature should indicate the title or position that the individual holds in the firm. An unsigned bid may be rejected.

14. A Bidder may modify a bid after its submission by withdrawing its original bid and resubmitting a new bid prior to the bid’s submission deadline as set forth in the Key Action Dates and Times section. Bidder modifications offered in any other manner, oral or written, will not be considered.

15. A Bidder may withdraw its bid by submitting a written withdrawal request to the Department, signed by the Bidder or an authorized agent. A Bidder may thereafter submit a new bid prior to the bid’s submission deadline. Bids may not be withdrawn without cause subsequent to bid’s submission deadline.

16. The Department may modify the IFB prior to the date fixed for submission of bids by the issuance of an addendum to all parties who received a bid package.

17. The Department reserves the right to reject all bids. The Department is not required to award a contract.

18. Before submitting a response to this solicitation, Bidders should review, correct all errors, and confirm compliance with the IFB requirements.

19. Where applicable, Bidder should carefully examine work sites and specifications. No additions or increases to the agreement amount will be made due to a lack of careful examination of work sites and specifications.

20. More than one (1) bid from an individual, firm, partnership, corporation or association under the same or different names, will not be considered.

21. The State does not accept alternate contract language from a prospective Contractor. A bid with such language may be considered a counter bid and may be rejected. The State’s General Terms and Conditions (GTC 02/2025) are not negotiable.

22. No oral understanding or agreement shall be binding on either party.

23. Bids will be opened on the date and time listed in the Key Action Dates and Times at Microsoft

Teams Meeting. Phone Number (916) 318-8892 Phone Conference ID 559 022 561#.

F. Evaluation and Selection

1. At the time of bid opening, each bid will be checked for the presence or absence of required information in conformance with the submission requirements of this IFB.

2. The Department will evaluate each bid to determine its responsiveness to the published requirements. Pass/Fail determination is made for responsiveness of all IFB requirements. Items listed in Attachment 1 must be completed and signed (as required) to be considered responsive.

The Department will evaluate Bidders based on criteria according to the table below.

https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-Services-Resources-List-Folder/Standard-Contract-Language https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-Services-Resources-List-Folder/Standard-Contract-Language

Well Log Digitization

Administrative Criteria Evaluation Pass Fail Mandatory Minimum Qualifications Commercially Useful Function (CUF) (if applicable)

Tax Delinquent Status Verification Completed Bid Sheet and Response Bid/Bidder Certification Sheet Bid/Bidder Declaration Corporation in Good Standing with the State List of Subcontractors (if applicable) References All Other Required Attachments

3. Bids that contain false or misleading statements claimed by the Bidder, may be rejected.

4. Award, if made, will be to the most responsive responsible Bidder offering the lowest cost for their services after eligible preferences and/or incentives have been applied.

5. In the event of a tie, award will be determined by a coin toss. The coin toss will be witnessed and documented by two (2) or more Department representatives and the affected Bidders will be invited to attend.

In the event of a precise tie between the low responsible bid of a certified small business and the low responsible bid of a certified disabled veteran owned business that is also a small business, the contract will be awarded to the certified disabled veteran owned small business.

G. Award and Protest

1. Whenever a contract is awarded under a procedure, which provides for competitive bidding, but the contract is not to be awarded to the low bidder, the low bidder shall be notified by telegram, electronic facsimile transmission, overnight courier, or personal delivery five (5) working days prior to the award of the agreement.

2. Upon written request by any Bidder, notice of the proposed award shall be posted in a public place in the office of the Department at least five (5) working days prior to awarding the agreement.

3. If any Bidder, prior to the award of a contract, files a written protest with the Department of General Services, Office of Legal Services, 707 Third Street, 7th Floor, Suite 7-330, West Sacramento, CA 95605 and the Department on the grounds that the (protesting) bidder is the lowest responsive responsible bidder, the agreement shall not be awarded until either the protest has been withdrawn or the Department of General Services has decided the matter.

4. Within five (5) days after filing the initial protest, the protesting bidder shall file with the Department of General Services and the Department a detailed written statement specifying the grounds for the protest. The written protest must be sent to the Department of General Services, Office of Legal Services, 707 Third Street, 7th Floor, Suite 7-330, West Sacramento, California 95605. A

Well Log Digitization copy of the detailed written statement should be mailed to the Department. It is suggested that you submit any protest by certified or registered mail.

H. Disposition of Bids

1. Upon bid opening, all documents submitted in response to this IFB will become the property of the State of California, and will be regarded as public records under the California Public Records Act (Government Code Section 6250 et seq.) and subject to review by the public.

2. Bid packages may be returned only at the bidder's expense, unless such expense is waived by the Department.

I. Payee Data Record

1. The Bidder awarded the contract must complete and submit form STD 204 Payee Data Record, listing their taxpayer identification number if the Department does not have a current copy on file.

2. No payment will be made unless the Payee Data Record form has been completed and returned to the Department.

J. Contractor Certification Clauses (CCC 04/2017)

1. The Bidder awarded the contract must complete and submit the Contractor Certification Clauses (CCC 04/2017) if the Department does not have a current copy on file.

2. No payment will be made unless the Contractor Certification Clauses have been completed and returned to the Department.

K. Generative Artificial Intelligence Notification Clause

“The State of California seeks to realize the potential benefits of GenAI, through the development and deployment of GenAI tools, while balancing the risks of these new technologies.

Bidder / Offeror must notify the State in writing if it: (1) intends to provide GenAI as a deliverable to the State; or (2), intends to utilize GenAI, including GenAI from third parties, to complete all or a portion of any deliverable that materially impacts: (i) functionality of a State system, (ii) risk to the State, or (iii) Contract performance. For avoidance of doubt, the term “materially impacts” shall have the meaning set forth in State Administrative Manual (SAM) § 4986.2 Definitions for GenAI.

Failure to report GenAI to the State may result in disqualification. The State reserves the right to seek any and all relief to which it may be entitled to as a result of such non-disclosure.

Upon notification by a Bidder / Offeror of GenAI as required, the State reserves the right to incorporate GenAI Special Provisions into the final contract or reject bids/offers that present an unacceptable level of risk to the State.

Government Code 11549.64 defines “Generative Artificial Intelligence (GenAI)” as an artificial intelligence system that can generate derived synthetic content, including text, images, video, and audio that emulates the structure and characteristics of the system’s training data.”

https://www.documents.dgs.ca.gov/dgs/fmc/pdf/std204.pdf https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-Services-Resources-List-Folder/Standard-Contract-Language https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-Services-Resources-List-Folder/Standard-Contract-Language

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L. Tax Delinquent Status Verification

1. Effective July 1, 2012 Public Contract Code 10295.4, requires state agencies to verify the tax delinquent status of bidders responding to state solicitations.

2. At the time of bid evaluation, prior to contract award and execution, the Department will verify all bidders and identified subcontractors as not listed as tax delinquent by the Franchise Tax Board and the California Department of Tax and Fee Administration. Any bidders or subcontractor listed as tax delinquent shall result in a bid rejection and will not be considered for contract award.

Bidders wanting further clarification can refer to the statute above or the web sites listed below for additional information.

California Department of Tax and Fee Administration – Top 500 Sales Tax and Use Delinquencies in California

Franchise Tax Board – Top 500 Delinquent Tax Payers

M. Preference Programs

1. Small Business Preference

The small business preference offers certified small businesses or micro businesses a calculation preference in the amount of five percent (5%) of the lowest responsible bid when a responsible non-small business has submitted the lowest priced, responsive bid pursuant to the same evaluation submitted by a Bidder who is a certified small business. The small business preference is used as a calculation for determining the lowest Bidder and does not affect the actual price bid.

The Department will grant certified small businesses a five percent (5%) small business preference on a bid evaluation when a responsible non-small business has submitted the lowest-priced, responsive bid pursuant to the same evaluation of a solicitation method when a certified small business:

• Includes in its bid a notification to the Department that it is a certified small business or that it has submitted to DGS Office of Small Business and Disabled Veteran Business Enterprise Services (OSDS) a complete application no later than 5:00 p.m. on the bid due date, and is subsequently certified by DGS as a small business

• Submits a timely, responsive bid

• Has been determined to be a responsive bidder

Bidders having pending Small Business Certification applications under review by DGS concurrent with the bid timeframe should contact OSDS to request an expedite review/approval of their application in order to be considered for the small business preference during the evaluation of this bid. Contact OSDS at (916) 375-4940 to obtain information about the application expedite process.

https://www.cdtfa.ca.gov/taxes-and-fees/top500.htm https://www.cdtfa.ca.gov/taxes-and-fees/top500.htm https://www.ftb.ca.gov/about-ftb/newsroom/top-500-past-due-balances/corporate-income-tax-list.html

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Bidders must notify the Department, in writing, at the time of bid submission that they have an application for Small Business Certification under review at the OSDS, and that they wish to be considered for the Small Business Preference Calculation.

Calculating Small Business Preference

The preference will be computed as follows:

Bidder A (Low Bid) non-small business:

$50,000.00

Bidder B certified small business:

$51,000.00

Calculation Preference:

$51,000.00 X .05 = $2,550.00

Bidder B Subtract calculated preference

$51,000.00 -$2,550.00 $48,450.00

Award is made to Bidder B as the low Bidder at the price of $51,000.00

2. Non-Small Business Preference

Non-small business Bidders will be granted a five percent (5%) small business preference on a bid evaluation when a responsive non-small business has agreed to subcontract at least twenty-five percent (25%) of their bid price with one (1) or more California certified Small Business if the non-small business Bidder’s bid is not the low bid. Responding Bidders must:

• Include in its bid a notification to the Department that it commits to subcontract at least twenty-five percent (25%) of its net bid price with one (1) or more California certified Small Business

• Submits a timely responsive bid

• Has been determined to be a responsive bidder

• Identify the California certified small business subcontractor(s) it commits to subcontract with. The Bidder will list certified small business subcontractor(s) and include their name, address, phone number, a description of the work to be performed, and the percentage (as specified in the solicitation) per subcontractor. The certified small business subcontractor(s) shall be identified on the Bidder Declaration.

Calculating Non-Small Business Preference

The non-small business calculation preference of five percent (5%) is used for bid evaluation purposes only. Awards made as a result of the non-small business preferences will be awarded at the Bidder’s original bid price.

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The preference will be computed as follows:

Bidder A, (Low Bid) non-small business: $100,000.00

Bidder B, non-small business subcontracting 25% to a certified small business:

$103,000.00

Calculation Preference:

100,000.00 x .05 = $5,000.00

Bidder B Subtract calculated preference

$103,000.00 -$5,000.00 $98,000.00

Award is made to Bidder B as the low Bidder at the price of $103,000.00.

3. Disabled Veteran Business Enterprise (DVBE) Program

Under California Code of Regulations 1896.99.100, the California DVBE incentive provides responsive/responsible Bidders the opportunity to receive additional incentive calculations. The incentive is applied at the time of IFB cost evaluation when a Bidder has identified a California-certified DVBE subcontractor to provide services or commodities in support of the overall contract effort. Application of the DVBE incentive shall not displace an award to a certified small business with a non-small business.

The following are elements of the DVBE incentive program:

• The DVBE incentive is applied during the evaluation process and is only applied to responsive bids from responsive Bidders proposing the percentage(s) of DVBE participation for the incentive(s) specified in the solicitation.

• DVBE incentive participation is at the discretion of the Bidder and is optional when overall DVBE program requirements are exempt by the State for that solicitation.

• A Bidder must complete and return the DVBE incentive application request included within this solicitation with their bid at the time of submission.

• Services or commodities provided by the DVBE firm must meet the definition of Commercial Useful Function (CUF) as defined under Military and Veterans Code 999 (B)(i)(iii) and under California Code of Regulations 1896.71 (I). A DVBE Bidder determined as not meeting CUF regulations will render the responding Bidder ineligible for the DVBE incentive application and the bid will be deemed non-responsive.

DVBE participation incentives are calculated according to the table below.

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DVBE Participation Level Incentive Applied Less than 1% 0% Incentive 1% to 1.99% 1% Incentive 2% to 2.99% 2% Incentive 3% to 3.99% 3% Incentive 4% to 4.99% 4% Incentive 5% or Higher 5% Incentive

4. Maximum Allowable Preferences

In no event shall the amount of the certified small business or non-small business subcontractor preferences awarded on a single bid exceed $50,000.00, and in no event shall the combined cost of the certified small business or non-small business subcontractor preferences and preferences awarded pursuant to other provision of law exceed $100,000.00. The five percent (5%) calculation preference is used for computation purposes only and does not alter or affect the actual bid price or the amount of the executed contract. When a certified small business is the lowest responsive, responsible bidder, then there is no need to compute the small business preference as the certified small business is the low bidder.

5. Disabled Veteran Business Enterprise (DVBE) Program

Under California Code of Regulations 1896.99.100, the California DVBE incentive provides responsive/responsible Bidders the opportunity to receive additional incentive calculations. The incentive is applied at the time of IFB cost evaluation when a Bidder has identified a California-certified DVBE subcontractor to provide services or commodities in support of the overall contract effort. Application of the DVBE incentive may not displace a certified small business low bidder.

The following are elements of the DVBE incentive program:

• The DVBE incentive is applied during the evaluation process and is only applied to responsive bids from responsive Bidders proposing the percentage(s) of DVBE participation for the incentive(s) specified in the solicitation.

• DVBE incentive participation is at the discretion of the Bidder and is optional when overall DVBE program requirements are exempt by the State for that solicitation.

• A Bidder must complete and return the DVBE incentive application request included within this solicitation with their bid at the time of submission.

• Services or commodities provided by the DVBE firm must meet the definition of Commercial Useful Function (CUF) as defined under Military and Veterans Code 999 (B)(i)(iii) and under California Code of Regulations 1896.71 (I). A DVBE Bidder determined as not meeting CUF regulations will render the responding Bidder ineligible for the DVBE incentive application.

DVBE participation incentives are calculated according to the table below.

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DVBE Participation Level Incentive Applied Less than 1% 0% Incentive 1% to 1.99% 1% Incentive 2% to 2.99% 2% Incentive 3% to 3.99% 3% Incentive 4% to 4.99% 4% Incentive 5% or Higher 5% Incentive

N. Commercially Useful Function (CUF)

A certified small business, micro-business, or DVBE must meet commercial useful function (CUF) requirements under Government Code section 14837(d)(4). Selected firms must perform a “commercially useful function” relevant to this bid. A Contractor is deemed to perform a CUF by executing all of the following:

• Is responsible for the execution of a distinct element of the work of the Agreement.

• Carries out contractual obligations by performing, managing, or supervising the work involved.

• Performs work that is normal for its business services and functions.

• Is not further subcontracting a portion of the work that is greater than expected to be subcontracted by normal industry practices.

• Is responsible, with respect to products, inventories, materials, and supplies required for the contract, for negotiating price, determining quality and quantity, ordering, installing, and, if applicable, making payment.

• Its role is not an extra participant in the transaction, contract, or project through which funds are passed in order to obtain the appearance of DVBE participation.

The Department will determine, to the best of its ability, that the Contractor meets the criteria above for CUF. In responding to this IFB, the Bidder is confirming that, under Government Code 14837 (d)(4), your business provides goods and/or services that meet the definition of CUF. All Bidders are required to provide CUF documentation using the Bid/Bidders Declaration, included in this IFB. When completing the declaration, Bidders must identify all subcontractors proposed for participation in the contract. Any Bidder awarded a contract is contractually obligated to use the subcontractor for the corresponding work defined unless the Department agrees to a substitution.

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V. Required Attachments

Attachment 1: Required Attachment Checklist

A complete bid package should include all of the items identified below.

Complete and return this checklist to confirm the items in your bid. Place a check mark or “X” next to each item that you are submitting to the State. For your bid to be responsive, all required attachments should be returned and this attachment shall be signed.

Attachment Attachment Name/Description

☐ Attachment 1 Required Attachment Checklist (this page or a copy of this page)

☐ Attachment 2 Bid Sheet and Response

☐ Attachment 3 Bid/Bidder Certification Sheet

☐ Attachment 4 Bid/Bidder Declaration

☐ Attachment 5 Darfur Act Certification

☐ Attachment 6 Disabled Veteran Business Enterprise Declarations (STD 843)

☐ Attachment 7 References (2)

☐ Attachment 8 Bidder’s Summary of Contract Activities and Labor Hours (DGS/PD

526) (Required if TACPA Preference is included)

Printed Name: _________________________

Title: _________________________

Signature: _________________________

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Attachment 2: Bid Sheet and Response

A Bid Sheet and Response shall be submitted with your bid package in the format below.

By submitting a bid, the Bidder is accepting the terms and conditions contained in this solicitation. The Bidder hereby proposes and agrees to furnish all labor, materials, and equipment, to perform all work described herein, and such addenda thereto as may be issued prior to the submission deadline.

The Bidder is required to bid on each item. Failure to indicate a dollar amount in any item, or a zero-dollar ($0.00) amount listed for any item will be interpreted and understood by the Department to mean that the Bidder is indicating a zero-dollar ($0.00) amount, and will perform any such services, up to and including the quantity indicated, at no cost to the Department.

In the event of a computational error, unit prices will prevail over extended totals. The Department will check bid calculations and recalculate bid totals.

The total will be determined by adding all of the maximum allowable costs together.

Project Manager Title: ______________________________________________________________

Item Item Name Item Description Maximum Allowable Cost

1 Geophysical well-log digitization

Digitization of geophysical well-logs from raster format to

LAS file format

Total:

Printed Name: _________________________

Title: _________________________

Signature: _________________________

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Attachment 3: Bid/Bidder Certification Sheet

This Bid/Bidder Certification Sheet shall be signed (original signature) and returned. By signing this Certification Sheet, the Bidder is declaring that:

• All required attachments are included with this certification sheet.

• The signature affixed hereon and dated certifies compliance with all the requirements of this solicitation.

• The signature below is the authorized signer and authorizes the verification of this certification.

1. Company Name 2. Telephone Number

3. Email Address

4. Address

5. Indicate your organization type:

Indicate the applicable employee and/or corporation number:

6. Federal Employee ID No. (FEIN) 7. California Corporation No.

8. Indicate applicable license and/or certification information:

9. Bidder’s Name (Print) 10. Title

11. Signature 12. Date

13. Are you, or a subcontractor providing at least 25% (twenty five percent) of the work on this contract certified with the Department of General Services, Office of Small Business or Disabled Veteran Business Enterprise as:

a. California Small Business

Yes No If yes, enter certification number:

b. Disabled Veteran Business Enterprise Yes No

If yes, enter your service code below:

NOTE: A copy of your Certification is required to be included if either of the above items is checked “Yes”.

Date application was submitted to OSDS, if an application is pending:

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Complete the numbered items on the Bid/Bidder Certification Sheet by following the instructions below.

Item Numbers Instructions

1, 2, 3, 4 Shall be completed. These items are self-explanatory.

A sole proprietorship is a form of business in which one person owns all the assets of the business in contrast to a partnership and corporation.

The sole proprietor is solely liable for all the debts of the business.

A partnership is a voluntary agreement between two or more competent persons to place their money, effects, labor, and skill, or some or all of them in lawful commerce or business, with the understanding that there shall be a proportional sharing of the profits and losses between them. An association of two or more persons to carry on, as co-owners, a business for profit.

A corporation is an artificial person or legal entity created by or under the authority of the laws of a state or nation, composed, in some rare instances, of a single person and his successors, being the incumbents of a particular office, but ordinarily consisting of an association of numerous individuals.

The other option would consist of non-sole proprietorships, partnerships, or corporations.

6 Enter your federal employee tax identification number.

Enter your corporation number assigned by the California Secretary of State’s Office. This information is used for checking if a corporation is in good standing and qualified to conduct business in California.

Complete if your firm holds a California contractor’s license. This information will be used to verify possession of a contractor’s license, when required.

Complete if your firm holds a PUC license. This information will be used to verify possession of a PUC license, when required.

9, 10, 11, 12 Shall be completed. These items are self-explanatory. Signature

REQUIRED.

If certified as a California Small Business, place a check in the "Yes" box, and enter your certification number on the line. If certified as a Disabled Veterans Business Enterprise, place a check in the "Yes" box and enter your service code on the line.