200000001187.pdf

NOTICE OF CONTRACT

NOTICE OF CONTRACT NO. 200000001187 .

between

THE STATE OF MICHIGAN

and

C O

N T

R A

C T

O R

American Canadian Fisheries, Inc.

S T

A T

E P ro g ra m

M a n a g e r Aaron Switzer DNR

6069 Hannegan Road 231-325-4611 x15

Bellingham, WA 98226 SwitzerA1@michigan.gov

John Zollner C o n tr a c t

A d m in is tr a to r Lisa Crozier-Green DNR

360-510-9087 517-284-5938 john@amcanfisheries.com CrozierGreenL@michigan.gov

CV0066185

CONTRACT SUMMARY

DESCRIPTION: Salmon and Salmon Egg Harvest Services

INITIAL EFFECTIVE DATE INITIAL EXPIRATION DATE INITIAL AVAILABLE OPTIONS

EXPIRATION DATE BEFORE

CHANGE(S) NOTED BELOW

July 22, 2020 July 21, 2022 EIGHT 1-Year Options to Renew July 21, 2022

PAYMENT TERMS DELIVERY TIMEFRAME

Net 45 N/A

ALTERNATE PAYMENT OPTIONS EXTENDED PURCHASING

☐ P-card ☐ Payment Request (PRC) ☐ Other ☐ Yes ☒ No

MINIMUM DELIVERY REQUIREMENTS

N/A

MISCELLANEOUS INFORMATION

The terms and conditions of this Contract are those of RFP 200000001805, this Contract Agreement and the vendor's quote dated June 25, 2020. In the event of any conflicts between the specifications and / or terms and conditions indicated by the State and those indicated by the vendor, those of the State take precedence. This Contract is pursuant to approval by the State Administrative Board on July 21, 2020.

ESTIMATED CONTRACT VALUE AT TIME OF EXECUTION $795,000.00

STATE OF MICHIGAN PROCUREMENT

Department of Natural Resources 525 West Allegan, Constitution Hall, Third Floor Lansing, MI 48933

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CONTRACT NO. 200000001187

FOR THE CONTRACTOR:

American Canadian Fisheries, Inc.

Company Name

Dianna Gay

Authorized Agent Signature

Dianna Gay

Authorized Agent (Print or Type)

7/13/2020

Date

FOR THE STATE:

Signature

Laura L. Gyorkos, Procurement Services Manager

Name & Title

Agency

Date

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STATE OF MICHIGAN

Contract Number 200000001187

Fisheries Division Salmon and Egg Harvesting Services

SCHEDULE A - STATEMENT OF WORK

BACKGROUND

Pacific salmon were introduced in Michigan in 1967 and have become an important part of the Great Lakes recreational fishery. Some of the characteristics which make salmon desirable in open water fisheries make them unsatisfactory for small stream fisheries when salmon populations are large. An overabundance of salmon in small stream fisheries can result in habitat loss caused by salmon spawning beds and the resulting increase of anglers in areas where salmon congregate, or increased competition with resident trout and anadromous salmon for habitat and feed sources.

The spawning salmon returning to Michigan weirs each fall can produce up to one million pounds of waste which will decay on site or be sent to landfills. Pursuant to Part 487 of 1994 PA 451, MCL 324.48735, the surplus salmon and salmon eggs are not required for fish culture purposes or to maintain fishery resources of Michigan inland waters. Removal of these fish will protect the State’s inland waters from ecological damage and imbalance. Harvesting surplus salmon in specific streams where large numbers of fish are stocked helps maintain and protect the State’s inland water resources and provides useful products such as fish fillets, salmon roe, fertilizer and pet feed. The State of Michigan makes no warranty, either express or implied, as to the suitability or marketability of Michigan Coho and Chinook salmon or salmon eggs, or to the fitness of salmon and salmon eggs for any particular purpose, or for human consumption, animal feed, or bait. The Michigan DNR hatcheries produce enough fish to ensure an adequate quantity of adults return to produce eggs for hatchery requirements or to create open-water fisheries in areas of the Great Lakes where large, suitable rivers are lacking.

Under State Circuit Court Order, no processing of surplus salmon may take place within the Platte River Watershed, Fig. 1.

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SCOPE

This Contract is for professional services for Salmon and Salmon Egg Harvesting and Processing:

1. Harvest Component. The Contractor agrees to provide all labor, supplies and equipment necessary to harvest salmon and surplus salmon eggs, from five (5) salmon harvest and egg-taking weirs located on four (4) streams in Michigan.

2. Production Component. The Contractor agrees to provide a central processing facility, all labor, utilities, supplies and equipment necessary to process and market salmon and salmon eggs for human consumption, bait, fertilizer, pet food or other novel products, as a priority over disposing of surplus fish in landfills. Salmon and salmon eggs harvested which are processed for sale must comply with all applicable local, state, and federal laws controlling the sale of fish and fish eggs, must be clearly marked as Michigan salmon and Michigan salmon eggs and may not be adulterated with salmon or salmon eggs harvested outside the State of Michigan. Fish and any parts of fish harvested, including wastewater and offal resulting from processing, shall either be legally sold or legally disposed of by the Contractor.

REQUIREMENTS

1. General Requirements

1.1. Specifications

1) The Contractor agrees to provide all necessary labor, personnel, supplies, equipment, tools, materials, supervision, and other items and services necessary and appropriate to provide the required services for both the Harvest Component and the Production Component, including one staff person at the Contractor’s Central Processing Facility to assist the DNR in collection of biological data from the salmon run.

A. Harvest Component Specifications:

1. The Contractor understands and agrees to provide work crews, supplies, equipment and utilities for the Harvest Component appropriate for the operations of all functions of each weir as specified.

2. The Contractor agrees to provide work crews, supplies, equipment and utilities for the Harvest Component appropriate for the operation of all functions of each weir as directed by the DNR, pursuant to Schedule B1 – Estimate of Labor, Equipment and Other Direct Costs, and subject to the calendar or schedule provided by the DNR and the Contractor’s Work Plan.

3. The annual fall salmon run typically begins in late August. The start date may vary depending on water temperature and weather conditions. There may be several runs and the harvest may be extended through January of the following year.

4. Harvest operations at the weirs will normally occur during daylight hours of Monday through Friday, September 1 through November 15. Harvest operations at other times may be required by the DNR depending on the number of fish, however, will be held to a minimum.

5. The Contractor understands and agrees to operate the salmon harvest weirs under the direction and control of the DNR Program Manager or designee.

6. The Contractor understands and agrees to the anticipated timeframes, potential for multiple runs, normal harvest hours, and other times required by the DNR.

7. Locations: The surplus salmon and salmon eggs will be harvested from three (3) to five (5) weirs located on four (4) designated rivers. All harvest sites are in the Lower Peninsula and have improved access roads allowing use of tractor-trailers. The salmon weir sites are located at:

- Little Manistee River Harvest Weir / Egg-Taking Station (Manistee County)

- Platte River Fish Hatchery (Upper Platte) (Benzie County)

- Swan River Harvest Weir / Egg-Taking Station (Presque Isle County)

- Lower Platte River Harvest Weir (Benzie County)

- Boardman River Harvest Weir (Grand Traverse County)

8. Contractor Acceptance: The Contractor agrees to accept all surplus salmon and salmon eggs from each site regardless of species, sex, grade or condition INCLUDING ANY STRIPPED FISH, MORTALITIES, FERTILIZED OR DEAD HATCHERY EGGS, ETC.

9. Weir Site Contractor Employees / Work Crews.

a. The Contractor’s weir employees shall be able to lift 40 pounds of fish, occasionally above head level.

b. Weir laborers will assist with pulling seines used to gather fish into areas where individual dip nets can be used to lift the fish from the water, operate mechanical equipment, and sort and ice fish.

c. The Contractor agrees to provide work crews with waders and rain gear, employee identification in the form of marked caps, jackets, badges or other suitable identification, and any other necessary safety equipment required to comply with MIOSHA standards.

d. Work Crews. The Contractor agrees to refer to Schedule B1 – Estimate of Labor, Equipment and Other Direct Costs for the required number of Watchmen required at specified weirs, and hours of coverage. The Contractor’s weir work crews may include up to five (5) employees assigned to, and capable of performing the following functions:

i. Foreman – must be capable of and licensed to operate a fork lift.

ii. Laborers. For weir sites without a foreman, one laborer must be capable of and licensed to operate a fork lift:

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1 – Laborer*

1 – Egg-Take Laborer 1 – General Laborer

iii. Watchman (security and weir monitoring) at specified weirs. Some locations may require more than one Watchman and 24-Hour Coverage. Refer to Schedule B1 - Estimate of Labor, Equipment and Other Direct Costs for specified weirs, required number of watchmen and hours of coverage.

iv. Any Contractor personnel operating a forklift shall be licensed and the Contractor agrees to provide proof of training to the DNR annual per MIOSHA standards (MIOSHA-STD-1119).

Little Manistee River Harvest Weir / Egg-Take Station

Quantity Function / Job Title Able to Lift 40lbs. Overhead Cert. Forklift Operator

1 Foreman ☒ Yes ☐ No ☒ Yes ☐ No

1 Laborer ☒ Yes ☐ No ☐ Yes ☒ No

1 Egg-Take Laborer ☒ Yes ☐ No ☐ Yes ☒ No

1 General Laborer ☒ Yes ☐ No ☐ Yes ☒ No

Platte River State Fish Hatchery (Upper Platte)

1 Foreman ☒ Yes ☐ No ☒ Yes ☐ No

1 Laborer ☒ Yes ☐ No ☐ Yes ☒ No

Swan River Harvest Weir

0 Foreman ☐ Yes ☐ No ☐ Yes ☐ No

1 Laborer ☒ Yes ☐ No ☒ Yes ☐ No

1 Egg-Take Laborer ☒ Yes ☐ No ☐ Yes ☒ No

1 Watchman Hours: 5 pm – 8 am

Lower Platte Pier Harvest Weir

1 Foreman ☒ Yes ☐ No ☒ Yes ☐ No

1 Laborer ☒ Yes ☐ No ☐ Yes ☒ No

Boardman River Harvest Weir

1 Foreman ☒ Yes ☐ No ☒ Yes ☐ No

1 Laborer ☒ Yes ☐ No ☐ Yes ☒ No

1 Egg-Take Laborer ☒ Yes ☐ No ☐ Yes ☒ No

2 Watchman Hours: 5 pm – 5 am

e. Weir Protection: The Contractor agrees to ensure only the Contractor, Contractor staff, or designated hauler remove the salmon and salmon eggs from the rivers and / or weirs during the harvest component.

The Contractor agrees to provide the required number of watchmen (guards) at specified weirs, for the required coverage.

f. Transport: The Contractor agrees to provide trucks, fish totes or boxes, 5-gallon pails and ice at the weir the morning of any scheduled harvest or egg take operation.

i. The Contractor intends to transport using a minimum of one (1) leased vehicle and two (2) Contractor employees as drivers.

g. Transport Totes and Pails: The Contractor agrees fish shall not be held or transported off-site in bulk unless provided for under a non-human consumption clause of the Health Code.

i. The Contractor agrees to provide plastic 4’ x 4’ 1,200 lb. capacity totes suitable for the purpose of holding, weighing, and transporting the harvested fish.

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ii. The Contractor agrees to provide plastic, graduated 5-gallon, 35 lb. capacity pails for holding and transporting loose salmon eggs in compliance with Health Code Standards and Regulations.

iii. The State reserves the right to require replacement of any totes the DNR Weir Supervisors deem inadequate for transport without breaking.

iv. The Contractor agrees that all Contractor supplied totes and pails shall be of a uniform standard size to allow the quantity and weight of fish in the tote and eggs in pails to be generally estimated when totes and / or pails are full or partially full.

v. The Contractor agrees to provide a minimum of TWELVE (12) “stand-by” totes and pails at each designated wire site. DNR Weir Supervisors may request additional totes or pails as needed.

vi. The Contractor agrees totes and pails shall be available at weir sites by 9:00 a.m. on the day of harvest.

h. Icing:

i. The Contractor agrees to provide approximately 800 lbs. of ice per day at weir sites for all salmon and salmon eggs harvested and to provide ice, refrigerators and / or freezers at the central processing facility. Ice for weir sites shall be stored in a freezer located at the Contractor’s central processing facility and transported to weir sites as required.

ii. The Contractor agrees icing will not impact the weight of salmon in totes or boxes.

iii. The Contractor agrees icing will be performed without creating a delay to the DNR.

i. The Contractor agrees to ice any fish (or parts of fish) that remain at weirs more than 24 hours after harvest, and understands any fish or fish parts not transported or iced within 24 hours may be subject to disposal by the DNR with associated costs for disposal charged to the Contractor including, but not limited to personnel time, transportation, and disposal.

i. Weight Measuring:

i. The Contractor does not intend to provide scales at weir sites.

ii. The Contractor agrees the quantity and weight of surplus salmon harvested shall be estimated by

DNR staff after the fish arrive at the Contractor’s central processing facility.

- The estimate shall be based on a sub-sample of the average fish weight in the daily harvest from each weir site. The sub-sample shall be random and based on at least 10% of the number of salmon in the daily harvest at each weir site. Estimates of the total number and weight of salmon, based on the sub-samples, shall be proved to the Contractor by DNR staff.

iii. The weight of loose salmon eggs shall be based on the volume of salmon eggs placed in marked, graduated buckets. The volume of loose salmon eggs shall be converted to pounds based on the ratio of eight (8) lbs. per gallon of salmon eggs.

j. Equipment. The Contractor agrees to provide a minimum of one (1) 5,000 lb. capacity forklift (rented) and one (1) 5,000 capacity pallet jack (Contractor owned) and all equipment necessary for its staff to implement this service at all weirs and the central processing facility.

k. Daily Harvest Counts: The Contractor agrees the daily number of totes of surplus salmon and the volume (or weight) of loose salmon eggs harvested at each site, each day, shall be recorded on a pre-numbered Salmon Shipping Report.

i. The Contractor does not intend to provide scales at weir sites, therefore the estimated (not actual) weight of salmon shall be recorded on the Salmon Shipping Report.

ii. All pre-numbered Salmon Shipping Reports must be signed by a DNR representative.

iii. Salmon or salmon eggs may not be shipped or transported without a Salmon Shipping Report signed by a DNR representative.

l. Picking Up from Weir Site: The Contractor agrees fish, fish totes / egg pails shall only be picked up at the weir site by the Contractor, Contractor employees, or the Contractor’s designated hauler / sub-contractor.

i. The DNR may require trucks used by the Contractor to be marked with the name of the Contractor or designated hauler.

ii. Fish, totes, and / or pails may not be picked up at the Weir by individuals other than the Contractor, Contractor’s employees or Contractor’s designated hauler.

iii. Shipments of surplus salmon shall be transported directly to the Contractor’s Central Processing

Facility.

iv. Shipment of surplus salmon from the weir to multiple locations or local fish retail operations without passing through the processing facility will not be permitted unless prior arrangement has been made with the DNR On-Site Coordinator. In the event surplus salmon is shipped without passing through the processing facility, the Contractor must include the alternate shipping location on the Salmon Shipping Report, and have it signed by a DNR Representative prior to the shipment leaving the Weir.

B. Production Component Specifications:

The Production Component includes providing a Central Processing Facility, fish totes, pails, ice, transport trucks, and processing in a timely manner which will not delay or impede the harvest operation.

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1. Contractor Central Processing Facility: The Contractor agrees to provide a central processing facility, subject to DNR approval.

a. The Contractor understands there is a State Circuit Court Order in effect which prohibits processing of surplus salmon within the Platte River Watershed, Fig. 1.

b. The Contractor agrees to operate the Central Processing Facility under the direction and control of the

DNR Program Manager or Designee.

c. The Contractor agrees the central processing facility shall be located at 11903 Chippewa Highway, Bear

Lake, Michigan. The central processing facility shall:

- Include a 500 square foot (minimum) work area for DNR to sub-sample salmon to estimate the weight of the harvest for billing and auditing purposes, and to collect biological information from the harvested salmon.

- The DNR work area must be adjacent to the Contractor’s processing line,

- Accessible to fork trucks or pallet jacks,

- Have hot and cold running water available for DNR staff use.

- Noise levels which allow normal verbal communication,

- Functional electric outlets and

- Adequate work lighting.

d. Processing operations at the Central Processing Facility will normally occur during daylight hours of Monday through Friday, September 1 through November 15. Processing operations at other times may be required by the DNR depending on the number of fish, however, will be held to a minimum.

2. Work Crews: The Contractor agrees to provide work crews for the Production Component appropriate for the operation of all functions of processing as directed by the DNR, pursuant to the calendar or schedule provided by the DNR and the Contractor’s Work Plan.

a. The Contractor’s processing employees shall be able to lift 40 pounds of fish, occasionally above head level.

b. The Contractor agrees to provide one key-staff person at the central processing facility to assist DNR staff with the collection of biological data from the salmon run as needed, and if requested, by the DNR. Duties of the key-staff person will include accurately recording information collected from the fish and may include handling the fish through the data collection procedure. The key-staff person shall be able to lift 40 lbs. overhead and be certified to operate a forklift.

C. Processing and Sale of Salmon and Salmon Eggs:

1. Under State Circuit Court Order, no processing of surplus salmon may take place within the Platte River Watershed, Fig. 1.

2. The Contractor agrees to make salmon available to local Michigan fish markets, Michigan food banks, or other similar types of charitable organizations.

3. The Contractor agrees any salmon and salmon eggs harvested may be sold by the Contractor, provided sales comply with all applicable local, state, and federal laws controlling the sale of fish and fish eggs.

4. The Contractor agrees to comply with all laws and regulations which govern food processing facilities, aspects of food safety and processing and, food product packaging and labeling: Michigan Food Law of 2000 as amended: Code of Federal Regulations (CFR), Part 110, Good Manufacturing Practices, and others that may apply.

5. The Contractor agrees to clearly label all salmon and salmon eggs harvested as Michigan salmon and Michigan salmon eggs. Salmon and eggs harvested shall not be adulterated or combined with salmon or salmon eggs harvested outside the State of Michigan.

6. If the Contractor chooses to market the salmon, eggs, or any other portion of the fish for any purpose that would depend upon the presence of, or levels of, contaminants, the Contractor agrees to abide by testing procedures required by any regulatory agency having jurisdiction. Any tests required shall be at the Contractor’s expense prior to marketing.

a. If test results are to be used as evidence by the Contractor, samples must be tested at a Michigan

Department of Agriculture and Rural Development (MDARD) approved laboratory, with the approved laboratory remitting copies of all test results to MDARD.

b. If eggs or fish flesh to be marketed for other than human consumption exceed guidelines, policies or statutes set by the Michigan Department of Agriculture or the U.S. Food and Drug Administration, those products must be dyed prior to sale with a color approved by the Michigan Department of Agriculture.

7. The Contractor shall leave salmon “in the round” and pack in ice for distribution to food banks and the Contractor’s list of retailers. The Contractor will not cut the fish, prepare or portion for resale any fish sold locally. Any fish not sold locally will be cut to remove any eggs (roe) then frozen and shipped to the Contractor’s business location in Bellingham, WA to grind for pet food.

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D. Waste Disposal

1. The Contractor agrees to remain responsible for proper disposal of all waste from harvesting and processing salmon and / or salmon eggs, including approval from the State of Michigan to dispose of any fish waste.

2. The Surface Water Quality Division of the Michigan Department of Environment, Great Lakes and Energy (EGLE) has determined that wash and wastewater from fish processing facilities are classified as industrial waste and must be disposed of by wastewater treatment plants or by other methods approved by the State and local governments (i.e. local public health departments). Since regulations vary by location, it shall be the sole responsibility of the Contractor to arrange disposal of wastewater in full compliance with all legal and regulatory requirements.

3. The Contractor agrees to dispose of waste from harvesting or processing salmon or salmon eggs at the Manistee Landfill and pursuant to the applicable laws of the State. The Contractor agrees to provide the landfill license number(s) to the DNR on an annual basis.

4. Any portion of fish that cannot be sold due to contaminant level shall be considered waste and subject to proper disposal.

5. Specific guidelines for disposing of carcasses, offal, waste eggs, etc., are outlined in the Fish Waste Exemption document issued on September 30, 2011, by the DEQ’s Solid Waste Section Manager, Rhonda Oyer. Copies may be obtained from the following website location:

https://www.michigan.gov/documents/deq/deq-whmd-swp-Exemption-FishWaste_247536_7.pdf

6. During implementation of this project, any questions pertaining to this exemption must be directed to Duane Roskoskey, Environmental Engineer Specialist, Materials Management Division, Department of Environment, Great Lakes, and Energy, 525 West Allegan, Lansing, Michigan 48909, (517) 582-3445, with a copy to the respective State Weir On-Site Coordinator for this project.

7. Surface Water Quality Division of the Michigan Department of Environment, Great Lakes and Energy (EGLE) has determined that wash and wastewater from fish processing facilities are classified as industrial waste and must, therefore, be disposed of by wastewater treatment plants or by other methods approved by the State and local governments (i.e. local public health departments). Since regulations vary by location, it shall be the sole responsibility of the Contractor to arrange disposal of such wastewater in full compliance withal legal and regulatory requirements. The State shall not be liable for waste disposal, or for the expense of waste disposal.

1.2. Warranties – RESERVED

1.3. Recall Requirements and Procedures - RESERVED

1.4. Quality Assurance Program – RESERVED

1.5. Incentives

The Contractor is not offering any special incentives or services including, but not limited to, quick payment terms, policies, quantity discounts, etc.

2. Service Levels

2.1. Time Frames

A. The Contractor agrees all Contract Activities shall be performed within the calendar timeframe provided by the DNR each Harvest Season which is typically late August through early December but may extend into January the following year on occasion.

B. The Contractor will receive a Delivery Order each year, in anticipation of the Harvest Season each year. The receipt of order date is pursuant to Section 2, Notices, of the Standard Contract Terms.

C. Unless otherwise authorized by the DNR Program Manager, the Contractor agrees their response to DNR directive (by telephone notification to the Contractor’s office) for crew mobilization shall be within 24 hours.

2.2. Delivery - RESERVED

2.3. Installation - RESERVED

2.4. Technical Support and Repairs - RESERVED

2.5. Maintenance - RESERVED

2.6. Training - RESERVED

2.7. Reporting

A. The Contractor agrees to submit the following reports to the Program Manager as indicated:

1. Annual Work Plan prior to weir operations each Fall. Shall include, but is not limited to:

a. The Contractor’s organization information and required disclosures, certifications and representations,

b. The Contractor’s Market Plan providing detail on how the Contractor will create and implement additional opportunities to market and sell Michigan salmon and salmon eggs harvested from the project, https://www.michigan.gov/documents/deq/deq-whmd-swp-Exemption-FishWaste_247536_7.pdf

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c. Calendar providing proposed activities for all locations include harvest, production, testing, water treatment, meetings with DNR staff, etc.

d. Location Operation Plan for each location including:

i. Operational Plan detailing overall service implementation, wastewater treatment, and issues specific to the location.

ii. Staffing Plan with personnel names, background checks and disclosures, roles / positions, projected hours of work for each position and a calendar or schedule.

iii. Supplies and equipment provided to staff and supplies provided for use during the project period.

iv. Equipment used to carry out the project.

e. Annual Project Summary including an analysis of operations, issues, risks and recommended changes.

2. Daily Salmon Shipping Report

3. Bi-Weekly Phone Updates

a. To Project Manager during the fall salmon harvest. Updates to include a brief summary of progress, work accomplished during the prior period, work to be accomplished during the upcoming period, problems (real or anticipated), any significate deviation from previously agreed upon work plans or calendars requiring the attention of the Program Manager.

4. Verification of Certified Forklift Operators

5. Annual Salmon Retailers List

6. Final Distribution Report

a. At the time of the final invoice (January 31), the Contractor agrees to provide the DNR Project Manager with a report specifying the major categories for distribution from the products of the harvest.

b. At a minimum the report shall include the percent of salmon or eggs distributed for food consumption, to the food bank, or similar charitable program(s), for pet food, bait, fertilizer, and the amount sent to a licensed landfill.

c. The report shall detail the total number of pounds of fish and the total number of pounds of eggs harvested at all weirs combined. These numbers will be used to construct the final billing invoice for the season.

B. The Contractor shall maintain a record system that documents the service and item(s), as defined in the Contract, delivered during the term of this Contract. These records shall document the specific units/items billed to the State under the Contract.

C. The Contractor must explain its reporting capabilities and any reporting that is included in its proposal.

2.8. Meetings

A. The Contractor agrees to attend any meetings required by the DNR.

B. The State may request meetings as it deems appropriate.

a. In late July or early August each Contract year, the Contractor and key weir staff shall meet with respective DNR staff to review the Contractor’s Annual Work Plan, to report and review any operational issues from the prior year, and detail any potential issues, risks or changes in operations or personnel for the coming year.

b. Prior to service delivery, the Contractor will provide a work plan, calendar and staffing table for final review and approval by DNR Program Manager.

2.9 Issue Management

A. The Contractor agrees to monitor Contractor work crews to ensure issues and conflicts are resolved immediately, including employee termination when warranted.

3. Staffing

3.1. Contractor Representative

A. The Contractor agrees to appoint ONE (1) individual, specifically assigned to State of Michigan accounts, that will respond to State inquiries regarding the Contract Activities and answer questions related to ordering and delivery, harvest operations, processing, etc. (the “Contractor Representative”).

B. The Contractor must notify the Contract Administrator at least TEN (10) calendar days before removing or assigning a new Contractor Representative.

Contractor Representative: Alan Mitchell, General Manager Email: Alan@amcanfisheries.com Telephone: 360-510-9087 Days / Times Available: Monday – Friday 8:00 a.m. – 5:00 p.m. PST

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3.2. Key Personnel

The Contractor agrees to identify Key Personnel, indicate where they will be physically located, describe the functions they will perform, and provide current chronological résumés.

A. The Contractor must appoint ONE (1) individual who will be directly responsible for the day to day operations of the Contract (“Key Personnel”).

B. The individual appointed may be the same individual as the Contractor Representative.

C. Key Personnel must be specifically assigned to this account, be knowledgeable on the contractual requirements, and respond to State inquires within FOUR (4) business hours.

D. Contractor’s Key Personnel must be on-site at the Harvest Weirs or Central Processing Facility during the Harvest

Season.

E. The Contractor may not remove or assign Key Personnel without the prior consent of the State.

1. Prior consent is not required for reassignment for reasons beyond the Contractor’s control, including illness, disability, death, leave of absence, personal emergency, resignation, or termination for cause.

2. The State may request a résumé and conduct an interview before approving a change.

3. The State may require a 30-calendar day training period for replacement personnel.

F. The Contractor must identify the Key Personnel, indicate where they will be physically located, describe the functions they will perform, and provide current chronological résumés.

3.3. Disclosure of Subcontractors

A. The Contractor does not intend to utilize subcontractors. If the Contractor requires the use of a subcontractor for any portion of the Contract Activities, the Contractor agrees to provide the information required. Subcontractors may include, but are not limited to, work crews, equipment providers / rental companies, transport services, vehicle rentals, or other suppliers.

B. If the Contractor intends to utilize subcontractors for any portion of the Contract Activities, the Contractor must disclose the following:

1. The legal business name, address and telephone number,

2. a description of subcontractor’s organization and the services it will provide; and

3. information concerning subcontractor’s ability to provide the Contract Activities.

4. The relationship of the subcontractor to the Contractor. Whether the Contractor has a previous working experience with the subcontractor, and details of that previous relationship.

5. A complete description of the Contract Activities that will be performed or provided by the subcontractor.

3.4. Security

A. The Contractor agrees to provide work crews with identification badges and / or gear with American Canadian logo to ensure Contractor employees are identifiable at weir sites and at the Contractor’s central processing facility.

B. The State may require the Contractor’s personnel to wear State issued identification badges.

4. Pricing

4.1. Price Term

Pricing is firm for the entire length of the Contract.

4.2. Price Changes

A. Any adjustments will be based on changes in actual Contractor costs. Any request for adjustment must be supported by written evidence documenting the change in costs.

Key Personnel: John Zollner Physical Location:

Email: John@amcanfisheries.com Telephone: 360-510-9087 Days / Times Available:

Functions Performed:

Subcontractor:

Address:

Telephone Number:

Email Address:

Description of subcontractor organization:

Services provided:

Relationship to Contractor:

Description of Contract Activities to be performed:

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B. The State may consider sources, such as the Consumer Price Index; Producer Price Index; other pricing indices as needed; economic and industry data; manufacturer or supplier letters noting the increase in pricing; and any other data the State deems relevant.

C. Following the presentation of supporting documentation, both parties will have 30 days to review the information and prepare a written response. If the review reveals no need for modifications, pricing will remain unchanged unless mutually agreed to by the parties. If the review reveals that changes are needed, both parties will negotiate such changes, for no longer than 30 days, unless extended by mutual agreement.

D. The Contractor remains responsible for Contract Activities at the current price for all orders received before the mutual execution of a Change Notice indicating the start date of the new Pricing Period.

5. Ordering

5.1. Authorizing Document

The appropriate authorizing document for the Contract will be a properly executed Delivery Order.

5.2 Order Verification

The Contractor must have internal controls, approved by DNR Procurement Services, to verify abnormal orders and to ensure that only authorized individuals place orders.

6. Delivery - RESERVED

7. Acceptance

7.1. Acceptance, Inspection and Testing

A. Acceptance is pursuant to Section 14, Acceptance, of the Standard Contract Terms.

B. Acceptance will occur when the Salmon Shipping Report has been completed by the Contractor and signed by the

DNR Program Manager or designee.

7.2 Final Acceptance

A. Final Acceptance is pursuant to Section 14, Acceptance, of the Standard Contract Terms.

B. Final Acceptance is issued by the State when the Contractor’s invoice(s) for service delivery is approved for payment.

C. Upon successful completion of the harvest season, the Contractor will provide the DNR Program Manager with a

Final Distribution Report and final invoice.

8. Invoice and Payment

8.1. Invoice Requirements

A. Invoices are pursuant to Section 15 of the Standard Contract Terms.

B. The DNR will process invoices based upon satisfactory performance and submission of required documentation and reports.

C. Payments will be made in accordance with P.A. 279 of 1984.

D. Contractor shall maintain a record system that documents the service and item(s), as defined in the Contract, delivered during the term of the Contract. These records shall document the specific units / items billed to the State under the Contract.

E. All invoices shall accurately represent the service and item delivered, the rate by type of service/item, and the total amount being claimed, and must be submitted to the State within thirty (30) days from the end of the billing period.

F. For the month of September each year of the Contract, any billings or invoices shall be submitted as reasonably directed by the Program Manager or designee to meet fiscal year-end closing deadlines. The State’s fiscal year ends on September 30.

G. The first invoice of the year will be submitted on the 3rd Monday in August. It will not exceed 25% of the harvest project. The invoice must include documentation of all preparations required for the season’s harvest and indicate that all weirs stand ready for operations.

H. The second invoice will be submitted the 3rd Monday in September. It will not exceed 25% of the harvest project.

I. The third invoice will be submitted on the 3rd Monday in October. It will not exceed 25% of the harvest project.

J. The fourth and final invoice for the harvest season will be paid following final approval and acceptance by DNR that all Contractor obligations have been met. The fourth invoice will be the final amount owing to the Contractor, less deductions for telephone and utility charges for the Contract period and the per pound fee for the salmon and eggs harvested through the contract period.

K. All invoices submitted to the State must include:

1) date

2) delivery order number / document ID

3) quantity

4) description of the Contract Activities

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5) unit price

6) shipping cost (if any) and

7) total price.

8.2. Payment Methods

A. The State will make payment for Contract Activities by Electronic Funds Transfer (EFT) only.

B. The Contractor must be registered and active in SIGMA VSS and must be EFT compliant.

9. Contractor’s Project Plan

A. The Contractor will carry out this project under the direction and control of the Program Manager.

B. Within 30 calendar days of the Effective Date, the Contractor will submit a project plan to the Program Manager for final approval. The plan must include:

1. The Contractor's organizational chart with names and title of personnel assigned to the project, which must align with the staffing stated in accepted proposals; and

2. The Contractor’s project breakdown showing estimated timeframes, sub-projects, tasks, and resources required.

10. Licensing Agreement The Contractor must provide a copy of any applicable licensing agreement.

11. Liquidated Damages

A. Late or improper completion of the Contract Activities will cause loss and damage to the State and it would be impracticable and extremely difficult to fix the actual damage sustained by the State.

B. If there is late or improper completion of the Contract Activities the State is entitled to collect liquidated damages in the amount of $1,000 and an additional $500 per day for each day Contractor fails to remedy the late or improper completion of the Work.

C. Unauthorized Removal of Key Personnel will interfere with the timely and proper completion of the Contract, to the loss and damage of the State, and it would be impracticable and extremely difficult to fix the actual damage sustained by the State. The State reserves the right to assess liquidated damages against Contractor as specified below.

1. The State is entitled to collect $1,000 per individual per day for the removal of any Key Personnel without prior approval of the State.

2. The State is entitled to collect $1,000 per individual per day for an unapproved or untrained key personnel replacement.

12. Additional Requirements

12.1. Environmental and Energy Efficient Products

The Contractor agrees to identify any energy efficient, bio-based, or otherwise environmentally friendly products or processes used. The Contractor must include any relevant third-party certification, including the verification of a United States Department of Agriculture certified bio-based product label or process.

12.2. Hazardous Chemical Identification

In accordance with the federal Emergency Planning and Community Right-to-Know Act, 42 USC 11001, et seq., as amended, the Contractor agrees to provide a Material Safety Data Sheet listing any hazardous chemicals, as defined in 40 CFR §370.2, to be delivered. Each hazardous chemical must be properly identified, including any applicable identification number, such as a National Stock Number or Special Item Number.

12.3. Mercury Content

Pursuant to MCL 18.1261d, mercury-free products must be procured when possible. The Contractor agrees to explain if it intends to provide products containing mercury, the amount or concentration of mercury, and whether cost competitive alternatives exist. If a cost competitive alternative does exist, the Contractor must provide justification as to why the specified product is essential. All products containing mercury must be labeled as containing mercury.

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SCHEDULE B – PRICING

1. The Contractor’s price proposal includes all costs, including but not limited to, any one-time or set-up charges, fees, and potential costs that Contractor may charge the State (e.g., shipping and handling, per piece pricing, and palletizing).

2. The Contractor is not offering quick payment terms.

3. The Contractor certifies that prices were arrived at independently, and without consultation, communication, or agreement with any other Contractor.

CONTRACTOR SHALL PAY THE STATE

Harvest Return Past 3 Years Price per Pound Total Proposed

CHINOOK AND COHO SALMON 876,691 lbs. $0.00 $0.00

LOOSE EGGS 62,225 lbs. $0.50 $31,112.50

TOTAL FOR PROPOSAL EVALUATION ONLY - DO NOT ENTER IN SIGMA VSS $0.00

STATE SHALL PAY THE CONTRACTOR

Contractor’s Price per Season to include all Harvest Component and Production Component services per Schedule A – Statement of Work Specifications. No other costs shall be reimbursed.

Price per Year Total for 3 Years

Contractor’s Base Bid for: Little Manistee, Upper Platte and Swan River Weirs $200,000.00 $600,000.00

Contractor’s Bid to Add: Lower Platte Weir $ 20,000.00 $ 60,000.00

Contractor’s Bid to Add: Boardman Weir $ 25,000.00 $ 75,000.00

Contractor’s Bid to Add: Medusa Weir $ 20,000.00 $ 60,000.00

Total for THREE YEAR Contract $795,000.00

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EXHIBIT A

DNR ESTIMATE OF LABOR, EQUIPMENT AND OTHER DIRECT COSTS

LITTLE MANISTEE RIVER HARVEST WEIR / EGG-TAKING STATION

FOREMAN

Number Required ONE, certified to operate forklift

Estimated Starting Date August 15

Estimated Ending Date November 15

SALMON HARVEST / EGG-TAKE LABORERS

Number Required THREE minimum, ONE certified to operate forklift

Approximate Hours Required 384 hours

Estimated Days Needed 12 Days

WATCHMEN No watchmen required

PLATTE RIVER STATE FISH HATCHERY (UPPER PLATTE)

FOREMAN

Number Required ONE, certified to operate forklift (May also be used as Foreman at Lower Platte River)

Estimated Starting Date August 15

Estimated Ending Date November 15

SALMON HARVEST LABORERS

Number Required THREE minimum, ONE certified to operate forklift

Approximate Hours Required 250 hours

Estimated Days Needed 10 Days

SWAN RIVER HARVEST WEIR / EGG-TAKING STATION

FOREMAN No foreman required

SALMON HARVEST / EGG-TAKE LABORERS

Number Required THREE minimum, ONE certified to operate forklift

Approximate Hours Required 240 hours

Estimated Days Needed 10 Days

WATCHMAN

Approximate Hours Required 200 hours

Estimated Starting Date September 15

Estimated Ending Date October 31

Estimated Days Required 20 days

Coverage – 15 Hours (every night pumps are running) ONE present from 5 p.m. – 8 a.m.

CONTRACTOR’S CENTRAL FISH PROCESSING FACILITY

In addition to workers required for the Contractor’s Central Fish Processing Facility, the Contractor must also employ:

PROCESSING ASSISTANT FOR DNR

Number Required ONE minimum

Approximate Hours Required 80 hours

Estimated Starting Date September 1

Estimated Ending Date October 31

Estimated Days Needed 20 Days

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INCLUDED AS ALTERNATE BIDS

LOWER PLATTE RIVER HARVEST WEIR

FOREMAN

Number Required ONE, certified to operate forklift

Estimated Starting Date August 15

Estimated Ending Date November 15

SALMON HARVEST LABORERS

Number Required THREE minimum, ONE certified to operate forklift

Approximate Hours Required 400 hours

Estimated Days Needed 10 Days

BOARDMAN RIVER HARVEST WEIR

FOREMAN

Number Required ONE, certified to operate forklift

Estimated Starting Date September 1

Estimated Ending Date October 31

SALMON HARVEST LABORERS

Number Required THREE minimum, ONE certified to operate forklift

Approximate Hours Required 300 hours

Estimated Days Needed 6 Days

WATCHMEN

Approximate Hours Required 1,800 hours

Estimated Starting Date September 1

Estimated Ending Date October 1

Estimated Days Required 45 days

Coverage – 24 Hours ONE present from 8 a.m. – 5 p.m.

ONE present from 5 p.m. – 8 a.m.

EQUIPMENT

The Contractor must supply the minimum designated equipment at each weir site:

Weir Sites

Fork Lift Truck

Pallet Jack

Blocking Net

Portable Toilet

Little Manistee River Harvest Weir / Egg-Taking Station Yes Yes

Platte River Fish Hatchery (Upper Platte) Yes Yes

Swan River Harvest Weir / Egg-Taking Station Yes Yes Yes

Lower Platte River Harvest Weir Yes Yes

Boardman River Harvest Weir Yes Yes

ESTIMATE OF TELEPHONE AND UTILITY COSTS

The contractor will be responsible for 100% of all utility costs and 50% of landline telephone costs at each weir site. The quotes below are estimates based on recent history and are provided for informational purposes only. Estimates are not a guarantee of the actual telephone and utility costs that may be incurred during the Salmon and Salmon Egg Harvest at each location.

Salmon Weir Sites

Telephone

Electricity

Propane

CO2 &

Propane

Natural Gas

Diesel Fuel

Little Manistee River Harvest Weir/Egg Taking Station $100 $3,600 $500 $200

Platte River Fish Hatchery (Upper Platte)

Swan River Harvest Weir/Egg Taking Station $1,500

Lower Platte River Harvest Weir $10 $200

Boardman River Harvest Weir $60 $4,000

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EXHIBIT B

MICHIGAN DEPARTMENT OF NATURAL RESOURCES

FISHERIES DIVISION

SALMON SHIPPING REPORT

Required under authority of Part 487, Section 48735, of 1994 PA 451, MCL 324.48735. Failure to comply with any provisions of this Act is a misdemeanor subject to a fine and/or imprisonment and may result in revocation of permit and cancellation of contract.

REPORT NO. WEIR DATE

CHINOOK

COHO

(or other as indicated)

Category

Number of

Boxes (Totes)

Number of Fish

Total Weight f Fish

Number of

Boxes (Totes)

Number of Fish

Total Weight f Fish

Female, Round

Male, Round

Jacks

Female, Stripped

SUB-TOTAL

Mortalities

TOTAL

Received:

Contractor’s Printed Name

Shipped:

DNR Representative ‘s Printed name

Contractor’s Signature

DNR Representative ‘s Signature

Distribution: ORIGINAL – DNR Weir Management Unit

Copy - Receiver

Loose Eggs Shipped: Number of Buckets Number of Pounds

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EXHIBIT C

CERTIFIED FORKLIFT OPERATORS

CONTRACTOR NAME: __________________________________________________

CONTACT PERSON: ____________________________________________________

EMAIL ADDRESS: ______________________________________________________

PHONE / CELL: ________________________________________________________

CERTIFIED FORKLIFT OPERATORS:

PLATTE:

1. _____________________________________________________

2. _____________________________________________________

MADUSA:

SWAN:

LITTLE MANISTEE:

BOARDMAN:

TRUCK DRIVER:

1. __________________________________________________

MANAGER:

1. __________________________________________________

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EXHIBIT D

List of Salmon Retailers

HARVEST YEAR: ____

RETAILER PRODUCT INTENDED USE

RETAILER:

ADDRESS:

CONTACT:

EMAIL:

PHONE:

☐ SALMON

☐ SALMON EGGS

ADDRESS:

CONTACT:

EMAIL:

CONTACT:

EMAIL:

CONTACT:

EMAIL:

CONTACT:

EMAIL:

CONTACT:

EMAIL:

CONTACT:

EMAIL:

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This STANDARD CONTRACT (“Contract”) is agreed to between the State of Michigan (the “State”) and American Canadian Fisheries, Inc. (“Contractor”), a Washington State Corporation. This Contract is effective on July 22, 2020 (“Effective Date”), and unless terminated, expires on July 21, 2022.

This Contract may be renewed for up to EIGHT additional 1-Year Option to Renew. Renewal is at the sole discretion of the State and will automatically extend the Term of this Contract. The State will document its exercise of renewal options via Contract Change Notice.

The parties agree as follows:

1. Duties of Contractor. Contractor must perform the services and provide the deliverables described in Schedule A – Statement of Work (the “Contract Activities”). An obligation to provide delivery of any commodity is considered a service and is a Contract Activity. The Contractor must furnish all labor, equipment, materials, and supplies necessary for the performance of the Contract Activities, and meet operational standards, unless otherwise specified in Schedule A.

Contractor must: (a) perform the Contract Activities in a timely, professional, safe, and workmanlike manner consistent with standards in the trade, profession, or industry; (b) meet or exceed the performance and operational standards, and specifications of the Contract; (c) provide all Contract Activities in good quality, with no material defects; (d) not interfere with the State’s operations; (e) obtain and maintain all necessary licenses, permits or other authorizations necessary for the performance of the Contract; (f) cooperate with the State, including the State’s quality assurance personnel, and any third party to achieve the objectives of the Contract; (g) return to the State any State-furnished equipment or other resources in the same condition as when provided when no longer required for the Contract; (h) not make any media releases without prior written authorization from the State; (i) assign to the State any claims resulting from state or federal antitrust violations to the extent that those violations concern materials or services supplied by third parties toward fulfillment of the Contract; (j) comply with all State physical and IT security policies and standards which will be made available upon request; and (k) provide the State priority in performance of the Contract except as mandated by federal disaster response requirements. Any breach under this paragraph is considered a material breach.

Contractor must also be clearly identifiable while on State property by wearing identification issued by the State, and clearly identify themselves whenever contacting the State.

2. Notices. All notices and other communications required or permitted under this Contract must be in writing and will be considered given and received: (a) when verified by written receipt if sent by courier; (b) when actually received if sent by mail without verification of receipt; or (c) when verified by automated receipt or electronic logs if sent by facsimile or email.

If to State: If to Contractor:

Lisa Crozier-Green Department of Natural Resources 525 West Allegan, Constitution Hall, Third Floor Lansing, MI 48933 CrozierGreenL@michigan.gov 517-388-6626

John Zollner 6069 Hannegan Road Bellingham, WA 98226 John@amcanfisheries.com 360-510-9087

3. Contract Administrator. The Contract Administrator for each party is the only person authorized to modify any terms of this Contract, and approve and execute any change under this Contract (each a “Contract Administrator”):

If to State: If to Contractor:

Lisa Crozier-Green Department of Natural Resources 525 West Allegan,…