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This is an Information Letter No. 1 from the California Department of Water Resources (DWR) dated March 28, 2023, addressing all holders of bidding documents regarding contractor obligations related to U.S. sanctions against Russia. The letter serves as an official notice of Executive Order N-6-22 issued by Governor Gavin Newsom on March 4, 2022, which requires contractors to comply with economic sanctions imposed by the U.S. government in response to Russia's actions in Ukraine.

For contracts valued at $5 million or more, contractors must report to the Department regarding their compliance with economic sanctions and detail steps taken in response to Russia's actions in Ukraine. These steps include avoiding new investments or financial transactions with Russian entities, preventing technology transfers to Russia, and providing support to Ukraine. Failure to comply with these sanctions may result in contract termination. Questions can be directed to the Contract Coordination Section, Project Delivery Branch at doe_specs@water.ca.gov.

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STATE OF CALIFORNIA – CALIFORNIA NATURAL RESOURCES AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF WATER RESOURCES

P.O. BOX 942836

SACRAMENTO, CA 94236-0001

GENERAL INFORMATION LETTER

TO ALL HOLDERS OF

BIDDING DOCUMENTS

INFORMATION LETTER NO. 1

Question No. 1 In regard to U.S. sanctions in response to Russian aggression in Ukraine, are there any sanctions that may affect the Contractor’s responsibilities under this Contract?

Answer: Yes. On March 4, 2022, Governor Gavin Newsom issued Executive

Order N-6-22 (EO) regarding sanctions in response to Russian aggression in Ukraine. The EO is located at https://www.gov.ca.gov/wp-content/uploads/2022/03/3.4.22-Russia- Ukraine-Executive-Order.pdf

The EO directs all agencies and departments that are subject to the Governor’s authority to take certain immediate steps, including notifying contractors of their obligations to comply with existing economic sanctions imposed by the U.S. government in response to Russia's actions in Ukraine, as well as any sanctions imposed under state law.

This Information Letter serves as notice under the EO that the Contractor to this contract will be required to comply with the economic sanctions imposed in response to Russia’s actions in Ukraine including with respect to, but not limited to, the federal executive orders identified in the EO and the sanctions identified on the U.S. Department of the Treasury website (https://home.treasury.gov/policy-issues/financial-sanctions/sanctions-programs-and-country-information/ukraine-russia-related-sanctions). Failure of the Contractor to comply with these sanctions may result in the termination of this contract.

In addition, for contracts valued at $5 million or more, the EO requires that the contractor report to the Department regarding its compliance with economic sanctions, and to report on steps it has taken in response to Russia's actions in Ukraine, including, but not limited to, desisting from making new investments in, or engaging in financial transactions with Russian entities, not transferring technology to Russia or Russian entities, and directly providing support to the government and people of Ukraine.

DocuSign Envelope ID: B1DC1BC3-AB37-481F-8455-EFCFB711F2B3

3/28/2023 https://www.gov.ca.gov/wp-content/uploads/2022/03/3.4.22-Russia-Ukraine-Executive-Order.pdf https://www.gov.ca.gov/wp-content/uploads/2022/03/3.4.22-Russia-Ukraine-Executive-Order.pdf https://home.treasury.gov/policy-issues/financial-sanctions/sanctions-programs-and-country-information/ukraine-russia-related-sanctions https://home.treasury.gov/policy-issues/financial-sanctions/sanctions-programs-and-country-information/ukraine-russia-related-sanctions https://home.treasury.gov/policy-issues/financial-sanctions/sanctions-programs-and-country-information/ukraine-russia-related-sanctions

Information Letter No. 1

If there are any questions or additional information is required, you may contact the Contract Coordination Section, Project Delivery Branch at doe_specs@water.ca.gov.

Sincerely, Judy Li, Manager Contract Coordination Section Division of Engineering

DocuSign Envelope ID: B1DC1BC3-AB37-481F-8455-EFCFB711F2B3

3/28/2023 mailto:doe_specs@water.ca.gov

2023-03-28T15:26:25-0700
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