2017 IFB_DOR 17018-Envelopes Final v 3.pdf

Department of Revenue Purchasing and Contract Services

IFB #DOR17018/Envelopes

Date: May 8, 2017

Updated May 16, 2017

Department of Revenue, Purchasing and Contract Services IFB # DOR17018/Envelopes

TABLE OF CONTENTS

I. INTRODUCTION

A. Objectives

II. ADMINISTRATIVE INFORMATION

SCHEDULE OF ACTIVITIES AND TIMELINE:

III. REQUIREMENTS

IV. VENDORS RESPONSE

A. Administrative

B. Proposed Products and Pricing

I. INTRODUCTION

A. Objectives The State of Colorado Department of Revenue is seeking bids from qualified companies to provide standard and custom style envelopes.

The Department of Revenue anticipates those responding to this solicitation may be individuals, companies or corporations proposing the services individually or in conjunction with others and/or contractors and/or subcontractors. Therefore, the use of the terms “bidder”, “vendor”, and “contractor” may be read in individual or collective terms, refer to a company and/or its principals, and in all cases refer to the entity responding to this Invitation for Bid (IFB).

II. ADMINISTRATIVE INFORMATION

SCHEDULE OF ACTIVITIES AND TIMELINE:

ACTIVITY DATE

1. IFB Notice published in Vendor Self Service (VSS) https://codpa-vss.hostams.com/webapp/PRDVSS1X1/AltSelfService

May 8, 2017

2. Inquiries Deadline May 12, 2017 at 2:30 pm MT

3. BID SUBMISSION DEADLINE

(Submit One (1) original)

May 25, 2017 at 2:30 pm MT

4. Estimated Contract Term Start Date July 1, 2017

INQUIRIES: Vendors may make written inquiries via email concerning this IFB to obtain clarification of requirements. No inquiries will be accepted after the date and time indicated in the Schedule of Activities and Timeline. Send all inquiries to Purchasing Agent, April Carlson, at april.carlson@state.co.us. Inquiries must be clearly marked with “IFB #DOR17018/Envelopes.

Responses to vendor’s inquiries will be published, in a timely manner, on VSS. Vendors will not rely on any verbal statements that alter any specifications or other term or condition of this IFB. Such changes are valid only if provided in writing by the Purchasing Agent.

A. BID SUBMISSION: Responses must be received on or before the date and time indicated in the Schedule of Activities. Late bids will not be accepted. It is the responsibility of the vendor to ensure that the bid is received by the Department on or before the bid submission deadline. Vendors mailing their bids shall allow sufficient mail delivery time to ensure receipt of their bids by the time specified.

The bid package shall be delivered or sent by mail to:

Attn: April Carlson 1375 Sherman Street, RM 336 Denver, CO 80203 https://codpa-vss.hostams.com/webapp/PRDVSS1X1/AltSelfService mailto:april.carlson@state.co.us

Check the Vendor Self Service System (VSS) at: https://codpa-vss.hostams.com/webapp/PRDVSS1X1/AltSelfService for any updates or modifications. In the event that it becomes necessary to revise any part of this IFB, a modification notice will be posted on VSS. It is very important that vendors check VSS on a regular basis, as this is the sole method for communicating any changes. Modifications published on the VSS system take precedence over information in this Invitation for Bid.

One copy of the State Confirmation of Offer form (see Attachment A “Confirmation of Offer”) MUST be completed and signed in ink by a person who is legally authorized to bind the vendor to its bid.

Vendors also need to submit 1 (one) copy of your bid, see section IV titled “Vendors Response”.

Because of the limited competition expected from VSS vendors on this solicitation, the procuring agency intends to use both VSS and additional methods of vendor notification and may make the specifications available to non-registered vendors through additional means. However, quotes, bids, or offers submitted by non-registered VSS vendors will not be opened or considered (except as necessary to determine registration status) unless, after examination of quotes, bids, or offers submitted by VSS registered vendors, it is determined that there is not adequate competition among VSS registered vendors. If adequate competition (as defined in Colorado Procurement Rule R-24-103-101-01) exists among registered vendors, quotes, bids, or offers from non-registered vendors will not be considered. A vendor is considered registered if its registration is received in VSS prior to the solicitation opening date and time.

The State reserves the right to make multiple awards if deemed in the best interest of the State.

SERVICE DISABLED VETERAN OWNED SMALL BUSINESSES (SDVOSBS)

C.R.S. Section 24-103-211 sets a Service-Disabled Veteran Owned Small Business (SDVOSB) goal of at least 3% of all contracts by dollar value be awarded to SDVOSBs who must be incorporated or organized in Colorado or they must maintain a place of business or have an office in Colorado and must be officially registered and verified as a SDVOSB by the Center for Veteran Enterprise within the U.S.

Department of Veterans Affairs. See www.vip.vetbiz.gov. By responding to this solicitation, the successful vendors certify that it shall comply with the provisions of C.R.S. Section 24-103-211. Only SDVOSBs that meet minimum specifications can be considered for the percentage preference. SDVOSBs must submit documentation of SDVOSB certification issued through the U.S. Department of Veterans Affairs in their response to the solicitation.

B. ACCEPTANCE OF TERMS: A bid submitted in response to this IFB shall constitute a binding offer. The autographic signature of the vendor shall indicate acknowledgment of this condition. Signature shall be that of a person legally authorized to execute contractual obligations. A submission in response to this

IFB acknowledges acceptance by the vendor of all terms and conditions including compensation, as set forth herein.

C. BID PRICES: Estimated prices are not acceptable. Prices will be considered your best and final offer. The price will be considered in determining the successful vendor. Prices of the resulting purchase order/contract will remain firm during the period of the contract.

Pricing will be firm for the initial term of the award. Price increases may, in the State’s discretion, be allowed per extension year. If requesting a price increase, vendor must submit a written request for price increase, along with justification, to the above listed purchasing agent thirty (30) calendar days prior to the current end date. In the event the prices have decreased, this decrease shall be immediately extended by the vendor to the State.

Unless otherwise specified, pricing/costs must be inclusive of administrative support, supplies, offices supplies, pagers, cell phones, parking fees, meals, lodging, rents, mileage, travel expenses, training, after hours or weekend time, insurance, use of subcontractors, overhead, profit, and costs for all other items consumed, utilized, and/or required by vendor’s staff or subcontractor’s staff.

Total costs proposed will be used in the evaluation of the vendor’s response. All hardware and software deemed necessary by the vendor shall also be included in the proposed costs. Items or costs not identified in the vendor’s pricing proposal will be the sole responsibility of the vendor.

D. TERM OF AWARD: The term of the resulting contract will be from July 1, 2017 through June 30, 2017, with the option to renew for four (4) additional one (1) year periods. The Department reserves the right to add additional services that would be a natural extension of this procurement.

E. EVALUATION: The Department intends to make an award to a single vendor for services identified in this IFB. The Department reserves the right to make multiple awards from this IFB if determined to be in the best interest of the Department. Award will be made to the responsive and responsible vendor with the lowest bid.

F. SELECTION OF BID: The selection will be for award to the responsive and responsible vendor with the lowest bid.

G. AWARD OF PURCHASE ORDER: The State will issue a State Purchase Order.

H. STANDARD TERMS AND CONDITIONS: The Terms and Conditions for the State Purchase Order are on Attachment B “Purchase Order Terms and Conditions”. Modifications to these Terms and Conditions will not be accepted.

The vendor’s signature on the Invitation for Bid – Confirmation of Offer (see Attachment A, “Confirmation of Offer”) is confirmation the vendor understands and acknowledges that any award will require that a Purchase Order between the State and the vendor will contain the attached Terms and Conditions

I. INCURRING COSTS: The State is not liable for any cost incurred by vendors prior to issuance of a legally executed contract, purchase order, or other authorized acquisition document. No property interest, of any nature, shall occur until a contract is awarded and signed by all concerned parties and executed by the State Controller.

J. ADDITIONAL TERMS AND CONDITIONS: At a minimum, work performed must meet industry standards and best practices in all areas including documentation, performance, auditing, and security as related to areas of responsibility. All work performed must meet State and Department standards.

The State may, at its sole discretion, require background checks of any or all of the Vendor’s employees or subcontractors working at the designated location.

Background checks may include criminal reviews, as well as financial and credit reviews. These reviews may occur at any time during the term of the contract, including any extensions. If issues arise concerning the integrity, security or criminal history of the vendor or their employees, the State reserves the right to terminate the resulting purchase order or remove any vendor employees or supervisors assigned to the site.

KEY PERSONNEL The vendor shall notify the State in writing of any key personnel changes as soon as the vendor is aware of the changes. The State shall have the final approval of any personnel the vendor intends to perform services pursuant to the award. Such approval shall not be unreasonably withheld or delayed.

The State reserves the right to require the removal of any vendor staff providing services pursuant to award of this Invitation to Bid. The State shall have the final approval of any personnel the vendor intends to perform services pursuant to the purchase order or contract. Such approval shall not be unreasonably withheld or delayed.

REPRESENTATIONS, WARRANTIES, AND PERFORMANCE STANDARDS

The vendor shall perform the services described in this purchase order or contract in accordance with the highest standard of care, skill and diligence provided by a professional person or company in performance of work similar to the service. The vendor warrants that (a) services provided under this award shall meet the descriptions in this purchase order or contract, (b) there are no pending or threatened suits, claims, or actions of any type with respect to the services provided and (c) the services shall be free and clear of any liens, encumbrances, or claims arising by or through the vendor or any party related to the vendor.

CONFLICT OF INTEREST/GIFTS GRATUITIES During the term of this award, the vendor shall not engage in any business or personal activities or practices or maintain any relationships which conflict in any way with the full performance of the vendor’s obligations under this award.

Additionally, the vendor acknowledges that in governmental contracting, even the appearance of a conflict of interest is harmful to the interests of the State. Therefore, the vendor shall refrain from any practices, activities or relationships that could reasonably be considered to be in conflict with the full performance of vendor’s obligations to the State in accordance with the terms and conditions of this award, without the prior written approval of the State.

In the event that the vendor is uncertain whether the appearance of a conflict of interest may reasonably exist, the vendor shall submit to the State a full disclosure statement setting forth the relevant details for the State’s consideration and direction.

Failure to promptly submit a disclosure statement or to follow the State’s direction in regard to the apparent conflict shall be grounds for termination of the award.

The vendor shall not, by itself or through any officer, director, employee, agent, partner, subcontractor or other representative, offer, give, grant, or otherwise deliver any gift, gratuity, or anything of monetary or non-monetary value to any employee of the State or to any member of his/her immediate family or anyone living in his/her household. Failure by the vendor to ensure compliance with this provision may result, in the State’s sole discretion, in immediate termination of the purchase order or contract.

PRESS CONTACTS/NEWS RELEASES The vendor shall not initiate any press and/or media contact nor respond to press/media requests regarding this award and/or any related matters concerning the State without the prior written approval of the State.

NON-EXCLUSIVE RIGHTS It is understood and agreed by the vendor that the State does not grant the vendor exclusive rights to provide the products and/or services under this award. The State reserves the right to contract with and purchase products and services from persons and entities other than the vendor, as may be in the best interest of the State. This award shall remain in full force and effect should the State enter into other contracts for the same or similar goods and services as provided under this award.

III. REQUIREMENTS

A. Scope of Work and Specifications

ENVELOPE SPECIFICATIONS

The following specifications are for standard and custom sizes of 24# WHITE WOVEN paper and KRAFT envelopes. For the individual envelope specifications pertaining to window size and placement see below. The quantities are based on estimated usage and are not guaranteed. Prices should be per 1000.

Vendors are to provide pricing for recycled paper.

The following envelopes will be custom size on 24# WHITE WOVEN paper.

DR 1659 (Appendix A)

• Envelope Size: #10 Pollcy 4-1/8” x 9-1/2”

• Window: No Window Open End

• Window Size: NA

• Window Placement: NA

• Inside Tint: N/A

• Print: Black Ink

• Flap: Gummed Only

• Estimated Annual Usage: 20,000

DR 4003 (Appendix B)

• Envelope Size: 6 x 9-1/2 OSS

• Window: Yes

• Window Size: 1-7/8” X 4-1/4”

• Window Placement: 1-1/16" from left, 2-9/16" from bottom

• Inside Tint: Inside Security tint/ Linen

• Print: Black ink

• Flap: Diagonal Seam Die Cut/ Full Gum

• Estimated Annual Usage: 75,000

DR 4746 (Appendix C)

• Envelope Size: 3-7/8" X 9-1/8"

• Window: Yes

• Window Size: 1-1/2" X 3-7/8"

• Window Placement: 5/8" from left, 7/8 from bottom

• Inside Tint: Inside Security tint/ Linen

• Print: Black ink

• Estimated Annual Usage: 1,500

DR 4747 (Appendix D)

• Envelope Size: 3-7/8" X 9-1/8"

• Window: Yes

• Window Size: 1-1/2" X 3-7/8"

• Window Placement: 5/8" from left, 7/8 from bottom

• Inside Tint: Inside Security tint/ Linen

• Print: Black ink

• Estimated Annual Usage: 1,500,000

The following envelopes will be on KRAFT- Yellow-28# paper.

DR 4710 (Appendix E)

• Envelope Size: 9-1/16" X 12"

• Window: Inside Window Pocket

• Window Size: 1-5/16" X4"

• Window Placement: 2-1/4" from left, 4-7/8" from bottom

• Print: Black Ink

• Flap: Gummed

• Type-Color-Weight: Kraft-Yellow-28#

• Estimated Annual Usage: 50,000

DR 4717 (Appendix F)

• Envelope Size: 7" X 10"

• Window: Non-Window

• Window Size: NA

• Window Placement: NA

• Print: Black Ink

• Flap: Gummed

• Estimated Annual Usage: 40,000

DR 4716 (Appendix G)

• Envelope Size: 9-1/2” X 12-1/2"

• Window: Non-Window

• Window Size: NA

• Window Placement: NA

• Print: Black Ink

• Flap: Gummed

• Estimated Annual Usage: 100,000

DR 4715 (Appendix H)

• Envelope Size: 8" X 13"

• Window: Non-Window

• Window Size: NA

• Window Placement: NA

• Print: Black Ink

• Flap: Gummed

• Type-Color-Weight: Kraft- Yellow-28#

• Estimated Annual Usage: 30,000

The following envelopes will be standard size, with and without windows, on 24# WHITE WOVEN paper.

DR 5106 (Appendix I)

• Envelope Size: #9

• Window: Non-Window

• Window Size: NA

• Window Placement: NA

• Print: Black ink

• Tint: NA

• Die Cut: NA

• Estimated Annual Usage: 1,000

DR 4701 (Appendix J)

• Envelope Size: #10

• Window: Non-Window

• Window Size: NA

• Window Placement: NA

• Print: Black ink

• Tint: Inside Security tint/ Linen

• Die Cut: NA

• Estimated Annual Usage: 200,000

DR 4702 (Appendix K)

• Window: Window

• Window Size: Standard

• Window Placement: NA

• Print: Black ink

• Tint: Inside Security tint/ Linen

• Die Cut: Diagonal Seam Die Cut/ Full Gum

• Estimated Annual Usage: 200,000

DR 4709 (Appendix L)

• Window: Window

• Window Size: 5” X 1-1/2”

• Window Placement: 7/8’ from left, 1/2” from bottom

• Print: Black ink

• Tint: Inside Security tint/ Linen

• Estimated Annual Usage: 3,500,000

DR 4720 (Appendix M)

• Window: Window

• Window Size: 5’ X 1-1/2”

• Window Placement: 7/8’ from left, 1/2” from bottom

• Print: Black ink

• Tint: Inside Security tint/ Linen

• Estimated Annual Usage: 50,000

DR 4718 (Appendix N)

• Envelope Size: #9 Return Envelope

• Window: Non-Window

• Window Size: NA

• Window Placement: NA

• Print: Black ink

• Tint: NA

• Die Cut: Standard

• Estimated Annual Usage: 2,000,000

DR 4722 (Appendix O)

• Envelope Size: #9 Return Envelope

• Window: Non-Window

• Window Size: NA

• Window Placement: NA

• Print: Black ink

• Tint: NA

• Die Cut: Standard

• Estimated Annual Usage: 300,000

ADDITIONAL SPECIFICATIONS

1. Vendors will provide samples of paper to be used, along with their bid.

2. When quantities are ordered, ±3% of the total will be accepted for delivery.

ENVELOPE DELIVERY

1. The vendor shall include all shipping costs in the unit prices being submitted. No additional shipping costs will be allowed on standard orders. Standard shipments must be FOB Destination.

2. Delivery must be provided within a maximum of 21 working days from date of order from the Department.

3. The vendor shall provide an e-mail confirmation that shipment has left the plant along with tracking information. Please send confirmation to jon.svare@state.co.us. The Department will notify the vendor of changes in contact, contact information.

4. All deliveries to Department of Revenue require a truck with a lift gate and a pallet jack. Envelopes are to be boxed and palletized on pallets that are not larger than 35" x 48" (width by length) and there must not be an overhang on the width (overhang is acceptable on the length). Deliveries cannot be over six (6) feet in height. If deliveries are outside these measurements, the Department has the right to refuse delivery at no cost to the Department. The vendor would then have to redeliver the envelopes within the measurements. All deliveries will be inside deliveries to:

mailto:jon.svare@state.co.us

Loading Dock Attn: Jon Svare 1375 Sherman Street Denver, CO 80203

5. Freight carrier shall call for an appointment to deliver, at least 48 hours prior to delivery. Call Jon Svare in the Forms Section at 303-866-5617 to schedule the delivery.

6. The vendor shall provide a toll free number and/or website access to the Department for order placement.

EXPERIENCE

Experience in printing jobs of similar size and scope is required. Vendor will provide a description of past experience, along with their bid.

IV. VENDORS RESPONSE

A. Administrative

1. Vendors MUST submit a Confirmation of Offer form (Attachment A “Confirmation of Offer”) signed in ink by the vendor or an Officer of the vendor who is legally authorized to bind the vendor to the bid along with your Vendors Response.

2. Identify vendor point-of-contact for any questions or concerns relative to this response. Provide name, title, address, telephone number, fax number, and e-mail.

B. Proposed Products and Pricing

All costs must be inclusive of administrative support, supplies, office supplies, pagers, cell phones, parking fees, meals, lodging, rents, mileage, travel expenses, insurance, overhead, profit, and costs for all other items consumed/utilized/required by successful vendor’s staff. Total costs proposed will be used in the evaluation of the vendor’s response. Items or costs not identified in the successful vendor’s pricing bid will be the sole responsibility of the successful vendor.

In addition to the documentation required in the requirements, vendor must provide to the following items with bid submission:

1. Indicate that you are proposing the services as required in this IFB.

2. Provide a description of past experience of print jobs of similar size and scope.

3. Provide the cost for the proposed services on the pricing table (Attachment C

“Pricing Sheet”).

4. Confirm your ability to meet the dates/times of this IFB.

5. Provide samples of all the envelopes specified above with any printable text.

6. Include with your response up to three business references for which your firm has provided similar services. Please include the company name, contact person, address, telephone number and date and description of services performed for each listed reference.

7. Indicate if any services under the resulting award, including subcontracts, are anticipated to be performed outside the United States or Colorado. If so, identify where the services will be performed and explain why these services will be performed outside of the United States or Colorado.

Attachment A

STATE OF COLORADO

DEPARTMENT OF REVENUE

IFB – Confirmation of Offer

Purchasing and Contract Services Division

Attn: April Carlson 1375 Sherman Street, RM 336

Denver, CO 80203

IFB DOR17018/Envelopes must appear on front of the envelope/package.

The following information is submitted in response to IFB # DOR17018/Envelopes. The below named vendor is voluntarily submitting this offer and acknowledges that it is consistent and in compliance with the State’s included specifications, Purchase Order Terms and Conditions attached to this Invitation for Bid, except as replaced, modified, or supplemented by the Department in this Invitation for Bid.

COMPANY NAME:

ADDRESS: __________________________________________________________

CITY: _____________________________ STATE: ________ ZIP+4: ___________

F.E.I.N.*: ___________________________________________________________

DELIVERY DATE: _____________________________________________________

PAYMENT TERMS: ____________________________________________________

SIGNATURE: _________________________________________________________

Signer must be authorized / qualified to bind vendor.

TYPED/PRINTED NAME: ______________________________________________

TITLE: ___________________________________________________________

PHONE: (_______) _________________ FAX: (_______) __________________

EMAIL ADDRESS: _____________________________

*Vendor is required to submit Federal Employer Identification Number (F.E.I.N.) before payment can be made.

1. Quoted Prices - All prices must be bid delivered, F.O.B. Destination.

2. The State is not liable for any sales, use, excise, property or other taxes imposed by any federal, state or local government tax authority. The State of Colorado tax exemption number is 98-02565. The State is also not liable for any taxes of the Contractor for franchise or related to the income of the Contractor. No taxes of any kind shall be charged to the State.

Attachment B

1. Offer/Acceptance. If this purchase order (“PO”) refers to vendor’s bid or proposal, this PO is an ACCEPTANCE of vendor’s OFFER TO SELL in accordance with the terms and conditions of the “solicitation” identified in vendor’s bid or proposal. The solicitation includes an RFP, IFB, or any other form of order by buyer. If a bid or proposal is not referenced, this PO is an OFFER TO BUY, subject to vendor’s acceptance, demonstrated by vendor’s performance or written acceptance of this PO. Any COUNTER-OFFER TO SELL automatically CANCELS this PO, unless a change order is issued by buyer accepting a counter-offer. This PO shall supersede and control over any vendor form(s) or part(s) thereof included in or attached to any bid, proposal, offer, acknowledgment, or otherwise, in the event of inconsistencies or contradictions, regardless of any statement to the contrary in such form(s) or parts thereof. 2. Safety Information. All chemicals, equipment and materials proposed and/or used in the performance of this PO shall conform to the requirements of the Occupational Safety and Health Act of 1970. Vendor shall furnish all Material Safety Data Sheets (MSDS) for any regulated chemicals, equipment or hazardous materials at the time of delivery.

3. Changes. Vendor shall furnish products and/or services strictly in accordance with the specifications and price set forth for each item. This PO shall not be modified, superseded or otherwise altered, except in writing signed by purchasing agent and accepted by vendor. Each shipment received or service performed shall comply with the terms of this PO, notwithstanding invoice terms or acts of vendor to the contrary, unless this PO has been modified, superseded or otherwise altered in accordance with this section.

4. Delivery. Unless otherwise specified in the solicitation or this PO, delivery shall be FOB destination. Buyer is relying on the promised delivery date, installation, and/or service performance set forth in vendor’s bid or proposal as material and basic to buyer’s acceptance. If vendor fails to deliver or perform as and when promised, buyer, in its sole discretion, may cancel its order, or any part thereof, without prejudice to its other rights, return all or part of any shipment so made, and charge vendor with any loss or expense sustained as a result of such failure to deliver or perform as promised. Time is of the essence.

5. Intellectual Property. Any software, research, reports, studies, data, photographs, negatives or other documents, drawings or materials (collectively “materials”) delivered by vendor in performance of its obligations under this PO shall be the exclusive property of buyer. Ownership rights shall include, but not be limited to, the right to copy, publish, display, transfer, prepare derivative works, or otherwise use the materials. Vendor shall comply with all applicable Cyber Security Policies of the State of Colorado (the “State”), or buyer, as applicable, and all confidentiality and non-disclosure agreements, security controls, and reporting requirements.

6. Quality. Buyer shall be the sole judge in determining “equals” with regard to quality, price and performance. All products delivered shall be newly manufactured and the current model, unless otherwise specified.

7. Warranties. All provisions and remedies of the Colorado Uniform Commercial Code, CRS, Title 4 (“CUCC”), relating to implied and/or express warranties are incorporated herein, in addition to any warranties contained in this PO or the specifications.

8. Inspection and Acceptance. Final acceptance is contingent upon completion of all applicable inspection procedures. If products or services fail to meet any inspection requirements, buyer may exercise all of its rights, including those provided in the CUCC. Buyer shall have the right to inspect services provided under this PO at all reasonable times and places.

"Services" as used in this section includes services performed or tangible material produced or delivered in the performance of services. If any of the services do not conform to PO requirements, buyer may require vendor to perform the services again in conformity with PO requirements, without additional payment. When defects in the quality or quantity of service cannot be corrected by re-performance, buyer may (a) require vendor to take necessary action to ensure that future performance conforms to PO requirements and (b) equitably reduce the payment due vendor to reflect the reduced value of the services performed. These remedies do not limit the remedies otherwise available in this PO, at law, or in equity.

9. Cash Discount. The cash discount period will start from the later of the date of receipt of acceptable invoice, or from date of receipt of acceptable products/services at the specified destination by an authorized buyer representative.

10. Taxes. Buyer and the State are exempt from all federal excise taxes under Chapter 32 of the Internal Revenue Code [No. 84-730123K] and from all State and local government sales and use taxes [CRS, Title 39, Article 26, Parts I and II]. Such exemptions apply when materials are purchased for the benefit of State, except that in certain political subdivisions (e.g., City of Denver) vendor may be required to pay sales or use taxes even though the ultimate product or service is provided to buyer. Buyer shall not reimburse such sales or use taxes.

11. Payment. Buyer shall pay vendor for all amounts due within 45 days after receipt of products or services and a correct notice of amount due. Interest on the unpaid balance shall begin to accrue on the 46th day at the rate set forth in CRS §24-30-202(24) until paid in full. Interest shall not accrue if a good faith dispute exists as to buyer’s obligation to pay all or a portion of the amount due. Vendor shall invoice buyer separately for interest on delinquent amounts due, referencing the delinquent payment, number of day’s interest to be paid, and applicable interest rate.

12. Vendor Offset. [Not Applicable to Inter-governmental POs] Under CRS §24-30-202.4 (3.5), the State Controller may withhold payment under the State’s vendor offset intercept system for debts owed to State agencies for: (a) unpaid child support debts or arrearages; (b) unpaid balances of tax, accrued interest, or other charges specified in CRS §39-21-101, et seq.; (c) unpaid loans due to the Student Loan Division of the Department of Higher Education; (d) amounts required to be paid to the Unemployment Compensation Fund; and (e) other unpaid debts owing to the State as a result of final agency determination or judicial action.

13. Assignment and Successors. Vendor shall not assign rights or delegate duties under this PO, or subcontract any part of the performance required under this PO, without the express, written consent of buyer. This PO shall inure to the benefit of and be binding upon vendor and buyer and their respective successors and assigns. Assignment of accounts receivable may be made only upon written notice furnished to buyer.

14. Indemnification. If any article sold or delivered under this PO is covered by a patent, copyright, trademark, or application therefore, vendor shall indemnify and hold harmless buyer from any and all loss, liability, cost, expenses and legal fees incurred on account of any claims, legal actions or judgments arising out of manufacture, sale or use of such article in violation or infringement of rights under such patent, copyright, trademark or application. If this PO is for services, vendor shall indemnify, save, and hold harmless buyer, its employees and agents, against any and all claims, damages, liability and court awards including costs, expenses, and attorney fees and related expenses, incurred as a result of any act or omission by vendor, or its employees, agents, subcontractors or assignees, arising out of or in connection with performance of services under this PO.

15. Independent Contractor. Vendor shall perform its duties hereunder as an independent contractor and not as an employee. Neither vendor nor any agent or employee of vendor shall be deemed to be an agent or employee of buyer. Vendor and its employees and agents are not entitled to unemployment insurance or workers compensation benefits through buyer and buyer shall not pay for or otherwise provide such coverage for vendor or any of its agents or employees. Unemployment insurance benefits will be available to vendor and its employees and agents only if coverage is made available by vendor or a third party. Vendor shall pay when due all applicable employment, income, and local head taxes incurred pursuant to this PO. Vendor shall not have authorization, express or implied, to bind buyer to any agreement, liability or understanding, except as expressly set forth herein. Vendor shall (a) provide and keep in force workers' compensation and unemployment compensation insurance in the amounts required by law, (b) provide proof thereof when requested by buyer, and (c) be solely responsible for its acts and those of its employees and agents.

16. Communication. All communication concerning administration of this PO, prepared by vendor for buyer’s use, shall be furnished solely to purchasing agent.

17. Compliance. Vendor shall strictly comply with all applicable federal and state laws, rules, and regulations in effect or hereafter established, including, without limitation, laws applicable to discrimination and unfair employment practices.

18. Insurance. Vendor shall obtain, and maintain, at all times during the term of this PO, insurance as specified in the solicitation, and provide proof of such coverage as requested by purchasing agent.

19. Termination Prior to Shipment. If vendor has not accepted this PO in writing, buyer may cancel this PO by written or oral notice to vendor prior to shipment of goods or commencement of services.

20. Termination for Cause. (a) If vendor refuses or fails to timely and properly perform any of its obligations under this PO with such diligence as will ensure its completion within the time specified herein, buyer may notify vendor in writing of non-performance and, if not corrected by vendor within the time specified in the notice, terminate vendor's right to proceed with the PO or such part thereof as to which there has been delay or a failure. Vendor shall continue performance of this PO to the extent not terminated and be liable for excess costs incurred by buyer in procuring similar goods or services elsewhere. Payment for completed services performed and accepted shall be at the price set forth in this PO. (b) Buyer may withhold amounts due to vendor as buyer deems necessary to reimburse buyer for excess costs incurred in curing, completing or procuring similar goods and services.(c) If after rejection, revocation, or other termination of vendor's right to proceed under the CUCC or this clause, buyer determines for any reason that vendor was not in default or the delay was excusable, the rights and obligations of buyer and vendor shall be the same as if the notice of termination had been issued pursuant to termination under §21.

21. Termination in Public Interest. Buyer is entering into this PO for the purpose of carrying out the public policy of the State, as determined by its Governor, General Assembly, and Courts. If this PO ceases to further the public policy of the State, buyer, in its sole discretion, may terminate this PO in whole or in part and such termination shall not be deemed to be a breach of buyer’s obligations hereunder. This section shall not apply to a termination for vendor’s breach, which shall be governed by §20. Buyer shall give written notice of termination to vendor specifying the part of the PO terminated and when termination becomes effective. Upon receipt of notice of termination, vendor shall not incur further obligations except as necessary to mitigate costs of performance. For services or specially manufactured goods, buyer shall pay (a) reasonable settlement expenses, (b) the PO price or rate for supplies and

Purchase Order Terms and Conditions services delivered and accepted, (c) reasonable costs of performance on unaccepted supplies and services, and (d) a reasonable profit for the unaccepted work. For existing goods, buyer shall pay (e) reasonable settlement expenses, (f) the PO price for goods delivered and accepted, (g) reasonable costs incurred in preparation for delivery of the undelivered goods, and

(h) a reasonable profit for the preparatory work. Buyer’s termination liability under this section shall not exceed the total PO price plus a reasonable cost for settlement expenses.

Vendor shall submit a termination proposal and reasonable supporting documentation, and cost and pricing data as required by CRS §24-106-101, upon request of buyer.

22. PO Approval. This PO shall not be valid unless it is executed by purchasing agent. Buyer shall not be responsible or liable for products or services delivered or performed prior to proper execution hereof.

23. Fund Availability. Financial obligations of buyer payable after the current fiscal year are contingent upon funds for that purpose being appropriated, budgeted and otherwise made available. If this PO is funded in whole or in part with federal funds, this PO is subject to and contingent upon the continuing availability of federal funds for the purposes hereof. Buyer represents that it has set aside sufficient funds to make payment for goods delivered in a single installment, in accordance with the terms of this PO.

24. Choice of Law. State laws, rules and regulations shall be applied in the interpretation, execution, and enforcement of this PO. The CUCC shall govern this PO in the case of goods unless otherwise agreed in this PO. Any provision included or incorporated herein by reference which conflicts with such laws, rules, and regulations is null and void. Any provision incorporated herein by reference which purports to negate this or any other provision in this PO in whole or in part shall not be valid or enforceable or available in any action at law, whether by way of complaint, defense, or otherwise. Unless otherwise specified in the solicitation or this PO, venue for any judicial or administrative action arising out of or in connection with this PO shall be in Denver, Colorado. Vendor shall exhaust administrative remedies in CRS §24-109-106, prior to commencing any judicial action against buyer.

25. Public Contracts for Services. [Not Applicable to offer, issuance, or sale of securities, investment advisory services, fund management services, sponsored projects, intergovernmental POs, or information technology services or products and services] Vendor certifies, warrants, and agrees that it does not knowingly employ or contract with an illegal alien who will perform work under this PO and will confirm the employment eligibility of all employees who are newly hired for employment in the United States to perform work under this PO, through participation in the E-Verify Program or the Department program established pursuant to CRS §8-17.5-102(5)(c), Vendor shall not knowingly employ or contract with an illegal alien to perform work under this PO or enter into a contract or PO with a subcontractor that fails to certify to vendor that the subcontractor shall not knowingly employ or contract with an illegal alien to perform work under this PO. Vendor shall (a) not use E-Verify Program or Department program procedures to undertake pre-employment screening of job applicants during performance of this PO, (b) notify subcontractor and buyer within three days if vendor has actual knowledge that subcontractor is employing or contracting with an illegal alien for work under this PO, (c) terminate the subcontract if subcontractor does not stop employing or contracting with the illegal alien within three days of receiving notice, and (d) comply with reasonable requests made in the course of an investigation, undertaken pursuant to CRS §8-17.5-102(5), by the Colorado Department of Labor and Employment. If vendor participates in the Department program, vendor shall deliver to the buyer a written, notarized affirmation that vendor has examined the legal work status of such employee, and shall comply with all of the other requirements of the Department program. If vendor fails to comply with any requirement of this provision or CRS §8-17.5-101 et seq., buyer may terminate this PO for breach and, if so terminated, vendor shall be liable for damages.

26. Public Contracts with Natural Persons. Vendor, if a natural person eighteen (18) years of age or older, hereby swears and affirms under penalty of perjury that he or she (a) is a citizen or otherwise lawfully present in the United States pursuant to federal law, (b) shall comply with the provisions of CRS §24-76.5-101 et seq., and (c) has produced a form of identification required by CRS §24-76.5-103 prior to the date vendor delivers goods or begins performing services under terms of the PO.

Effective Date 01/01/09

Attachment C Pricing Sheet

PLEASE QUOTE PRICE PER THOUSAND ON ALL QUANTITY LEVELS WITHIN EACH ITEM.

24# WHITE WOVE ENVELOPES KRAFT ENVELOPES 24# WHITE WOVE ENVELOPES

ORDER INFORMATION DR 1659 DR 4003 DR 4746 DR 4747 DR 4710 DR 4717 DR 4716 DR 4715 DR 5106 DR 4701 DR 4702 DR 4709 DR 4720 DR 4718 DR 4722 ESTIMATED ANNUAL USAGE 0 0 1,000,000,000 1,500,000,000 150,000,000 0 0 10,000,000 0 100,000,000 100,000,000 4,000,000,000 0 3,000,000,000 0

ORDER QUANTITY

1,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

5,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

10,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

15,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

25,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

50,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

100,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

200,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

300,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

500,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

750,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

1,000,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $