250000000580.pdf

This is a Notice of Contract and Statement of Work for the State of Michigan Department of Technology, Management and Budget (DTMB) awarding an indefinite delivery contract to Hoekstra Transportation, Inc., a Michigan corporation located in Grand Rapids. The contract was solicited through Request for Proposal #250000001056 and is designated as Contract No. 250000000580. The contract authorizes the provision of Small Class non-lift and lift transit buses to the State of Michigan and eligible MiDEAL members, which include local units of government, school districts, universities, community colleges, and nonprofit hospitals. The State reserves the right to extend the contract to other states and state employees upon written agreement with the contractor.

The contract provides for the purchase of Small Class of Non-Lift and Lift Transit Buses, with an estimated contract value of $54,000,000 at the time of execution. The initial contract term runs from May 1, 2025, through April 30, 2027, with options for two additional one-year renewal periods at the State's sole discretion. Pricing is firm for the first 365-day period with provisions for price adjustments of $100 or more for chassis manufacturer OEM standard equipment changes and $300 or more for model year changes, subject to written approval and cost/price analysis. The contractor must deliver all buses within 210 business days of order receipt, with delivery occurring between 8:00 a.m. and 4:00 p.m., Monday through Friday. The contractor is responsible for parts and service support for seven years after vehicle delivery and must provide body replacement parts within five business days. The contract includes liquidated damages provisions of $5,000 plus $100 per day for late or improper completion, and $1,000 per individual per day for unauthorized removal or unapproved replacement of key personnel. The State retains the right to perform inspections at pilot model, production, and plant stages, with the contractor responsible for travel expenses for up to three State representatives. A 0.25% administrative fee applies to all payments made under the contract, including transactions with MiDEAL members and other authorized entities.