Contract Summary

This document is a NASPO ValuePoint Participating Addendum for Statewide Small Parcel Delivery Services between the State of Michigan Department of Technology, Management and Budget (DTMB) and United Parcel Service (UPS). The contract is administered under Master Agreement MA065, led by the State of Utah, and is effective from February 22, 2025, through November 27, 2026. The contract permits usage by all Michigan state agencies and MiDEAL members, including local units of government, school districts, universities, community colleges, and nonprofit hospitals. Primary contacts include Ben Pena for UPS and Emily Massa as Contract Administrator for the State of Michigan, with Thomas Goodine serving as Program Manager.

UPS provides small parcel delivery services under negotiated pricing rates detailed in the attached Addendum B, which includes incentive-based pricing for various service types including Next Day Air, Next Day Air Saver, 2nd Day Air, 3 Day Select, Ground services, and international Worldwide Express services. The estimated contract value at time of execution was $10,000,000. The contract incorporates price increases through amendments, including a 9.1% increase effective January 21, 2023, and a 6.9% increase effective February 5, 2024. Payment terms are net 30 days from receipt of invoice, with the State exempt from sales tax. A 1% administrative fee on all payments is due quarterly, and the contractor must maintain minimum on-time delivery performance of 95% annually or face service credits up to $50,000. Insurance requirements include General Liability ($2,000,000 General Aggregate), Automobile Liability ($1,000,000 Per Accident), and Workers' Compensation coverage. The State reserves the right to terminate for convenience with 30 days' notice or for cause if performance standards are not met.