Program 2551-S R-1 Specification.pdf

Specifications by LLP Page 1 of 37 Reviewed by SAB Program 2551-S (R1)

U.S. GOVERNMENT PRINTING OFFICE

Columbus, Ohio

GENERAL TERMS, CONDITIONS, AND SPECIFICATIONS

For the Procurement of

IRS Field Office Envelopes as requisitioned from the U.S. Government Printing Office (GPO) by the Internal Revenue Service

Single Award

TERM OF CONTRACT: The term of this contract is for 1 year (base year period of Date of Award through September 30, 2009) and 4 option year periods (October 1, 2009 through September 30, 2010; October 1, 2010 through September 30, 2011; October 1, 2011 through September 30, 2012; and October 1, 2012 through September 30, 2013). Special attention is directed to the following provision and clauses in Section 1 of this contract: “Option to Extend the Contract Term” and “Economic Price Adjustment”.

BID OPENING: Bids shall be publicly opened at 2:00 p.m., prevailing Columbus, Ohio, time, on October 1, 2008.

MAIL BID TO: U.S. Government Printing Office, 1335 Dublin Road, Suite 112-B, Columbus, Ohio 43215-7034.

Envelope must be marked with program number and bid date opening.

BIDS MUST BE RECEIVED BY ABOVE DATE AND TIME, LATE QUOTES WILL NOT BE CONSIDERED.

BIDDERS PLEASE NOTE: Significant revisions have been made. Bidders are cautioned to familiarize themselves with all provisions of this contract before bidding. NOTE: Added on-line ordering and payment.

NOTE: This solicitation is being re-advertised with significant revisions.

1. Page 1, “TERM OF CONTRACT”, starting term changed to “Date of Award”.

2. Page 4, Added “EXCEPTION TO GPO CONTRACT TERMS (GPO PUB. 310.2)” and “BID PRICES” clauses.

3. Page 5, Under “ONLINE ORDERING”, changes to paragraphs 1, 4, and 5. Added paragraph 6.

4. Page 7, Added second paragraph on page and changed last paragraph on page.

5. Page 8, Under “CREDIT CARD ORDERS”, added paragraph 2, changes to paragraph 5.

6. Page 9, Changes to second paragraph on page.

7. Page 12, Under “GOVERNMENT TO FURNISH”, Change paragraph 2, change “GRAND TOTAL”.

8. Page 19, Added “CAUTION…” paragraph.

Abstract is available on GPO Web Site at http://winapps.access.gpo.gov/ppd/abstracts/columbus/default.asp.

BEFORE AWARD: ANY QUESTIONS CONCERNING THESE SPECIFICATIONS CALL

Linda Price at 614-488-4616, extension 22.

AFTER AWARD: REFER ALL QUESTIONS TO YOUR CONTRACT ADMINISTRATOR

Ted Mack, 612-488-4616, extension 21.

NO COLLECT CALLS

IRS Field Office Envelopes Page 2 of 37 2551-S (R1) (09/09)

SECTION 1. – GENERAL TERMS AND CONDITIONS

GPO CONTRACT TERMS: Any contract which results from this Invitation for Bid will be subject to GPO Contract Terms (GPO Pub. 310.2, effective December 1, 1987 (Rev. 6-01)) and Quality Assurance Through Attributes Program for Printing and Binding (GPO Pub. 310.1, effective May 1979 (Rev. 8-02)).

GPO PUB. 310.2 IS AVAILABLE ON GPO WEB SITE AT

http://www.gpo.gov/printforms/index.html

GPO PUB. 310.1 IS AVAILABLE ON GPO WEB SITE AT

http://www.gpo.gov/printforms/index.html

REGULATIONS GOVERNING PROCUREMENT

The U.S. Government Printing Office (GPO) is an office in the legislative branch of the United States Government. Accordingly, the Federal Acquisition Regulation is inapplicable to this, and all GPO procurements. However, the text of certain provisions of the Federal Acquisition Regulation as contained in the Code of Federal Regulations (CFR), are referenced in this solicitation. The offeror should note that only those provisions of the Federal Acquisition Regulation which are specifically incorporated by reference into this solicitation, are applicable.

FACSIMILE BIDS: The solicitation provision in GPO Contract Terms (Pub. 310.2) permitting facsimile bids means a bid that has been transmitted to and has been received by a commercial enterprise via facsimile and subsequently delivered to the Government. Facsimile bids transmitted to GPO offices will not be considered.

SUBCONTRACTING: The predominant production function may be either the manufacture of the envelopes or the printing of the envelopes. Bidder who must subcontract both operations will be declared non-responsible.

QUALITY ASSURANCE LEVELS AND STANDARDS: The following levels and standards shall apply to these specifications:

Product Quality Levels:

(a) Printing (page related) Attributes -- Level IV.

(b) Finishing (item related) Attributes -- Level IV.

Inspection Levels (from ANSI/ASQCZ1.4):

(a) Non-destructive Tests - General Inspection Level I.

(b) Destructive Tests - Special Inspection Level S-2.

Specified Standards: The specified standards for the attributes requiring them shall be:

Attribute Specified Standard P-7. Type Quality and Uniformity Envelope Specification Sheet/Manuscript Copy P-9. Solid and Screen Tint Color Match Pantone Matching System

OPTION TO EXTEND THE CONTRACT TERM: The Government may extend the term of this contract by written notice to the contractor not later than 30 days before the contract expires. If the Government exercises an option, the extended contract shall be considered to include this clause. The duration of this contract, including the exercise of any options under this clause, shall not exceed September 30, 2013.

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Notwithstanding the above paragraph, at the request of the Government, the term of any contract resulting from this solicitation may be further extended for such period of time as may be mutually agreeable to the GPO and the contractor.

ECONOMIC PRICE ADJUSTMENT: The prices set forth in this contract shall be adjusted in accordance with the provisions of this clause, provided that, in no event will prices be revised to exceed the maximum permissible under any law existing as of the date of the contract or as may be hereafter promulgated.

PRICE ADJUSTMENT PERIOD: For the purpose of this clause, the program years shall comply with the Contract Term clause. There shall be no price adjustment for orders placed during the first program year of this contract.

PRICE ADJUSTMENT: The prices shall be adjusted on the basis of the "Consumer Price Index For All Urban Consumers – Commodities Less Food, Seasonally Adjusted,” published monthly in the CPI Detailed Report by the Department of Labor, Bureau of Labor Statistics, in the following manner:

(1) The contract price of orders placed during the adjusted period (excluding reimbursable postage or transportation costs) shall be adjusted by the percentage increase or decrease in the average, seasonally adjusted Consumer Price Index For All Urban Consumers – Commodities Less Food (seasonally adjusted) as follows: An index shall be calculated by averaging the 12 seasonally adjusted months ending 3 months prior to the expiration of the first period of this contract. This average is then compared with the average index for the 12-month period ending 3 months prior to the beginning of the contract, called the base index. The percentage increase or decrease by comparing these two indexes shall be applied to the contractor's invoices for orders placed during the price adjustment period.

(2) The Government will notify the contractor in writing of the percentage increase or decrease to be applied to any invoices to be submitted for orders subject to price adjustment in accordance with this clause. Such percentage will be determined from the published index as set forth above. The contractor shall apply the percentage increase or decrease against the total price of the invoice less reimbursable postage or transportation costs. Any applicable discounts will be calculated on the basis of the invoice price as adjusted.

If the Government exercises an option, the extended contract shall be considered to include this economic price adjustment clause.

ASSIGNMENT OF PURCHASE AND ENVELOPE ORDERS: A GPO purchase order will be issued to the contractor to cover work performed. The purchase order will be supplemented by an individual "Envelope Order Form 9880" for each job placed with the contractor. The Envelope Order Form, when issued, will indicate the quantity to be produced and any other information pertinent to the particular order.

CONTRACTOR'S QUALITY CONTROL PROCEDURES: The contractor shall, prior to start-up, put into effect within his own organization, and maintain throughout the life of this contract, an independent quality assurance organization. This unit shall be of sufficient size, and expertise, to monitor, perform or have performed, the process controls, inspections, and tests necessary to assure that the production and delivery of envelopes meets these specifications and Government requirements. The contractor shall be required to correct each defect or error found during the inspection of work either in process or completed.

The contractor shall submit in writing to the Contracting Officer within 5 workdays after notification that they are the low bidder, the details of their Quality Control Program. THE PROPOSED PROGRAM IS SUBJECT TO GOVERNMENT APPROVAL. This program shall, at a minimum, address the following:

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(1) Where and by whom daily process controls and inspections will be performed. Contractor shall state the number of people and the assignments that shall be permanently assigned to this program.

(2) Appointment of an official who shall be responsible for the operation of the quality control system/department and for investigating and ascertaining the causes of defects/deficiencies found in envelopes shipped, as reported by IRS.

(3) How and when daily inspections and tests or reviews will be held to check for:

• Correct addressing

• Acceptable printing

• Size, squareness, and parallelism measurements.

(4) Actions that will be taken when defects/deficiencies are detected.

Failure to maintain the Quality Control Program in accordance with the plan submitted and approved by the Government may result in the Government's termination of the contract for default.

PREAWARD SURVEY: In order to determine the responsibility of the prime contractor or any subcontractor, the Government reserves the right to conduct an on-site preaward survey at the contractor’s/subcontractor’s facility or to require other evidence of technical, production, managerial, financial, and similar abilities to perform, prior to the award of a contract.

POSTAWARD CONFERENCE: The total requirements of the job as indicated in these specifications will be reviewed by Government representatives with the contractor's representatives at the Government Printing Office, 1335 Dublin Road, Suite 112-B, Columbus, Ohio immediately after award.

EXCEPTION TO GPO CONTRACT TERMS (GPO PUB. 310.2): Under Article 12. Discount (a) Evaluation is altered on this solicitation to read: No prompt payment discount will be considered in evaluating bids for award.

BID PRICES: The contractor will issue GPO a check for 7% of the value of all credit card orders (See page 8 under “Credit Card Orders” and GPO will make payment to the contractor at 93% of the bid prices on non-credit card orders. See pages 8 and 9 under “Traditional Orders”.

ORDERING: Items to be furnished under the contract shall be ordered by the issuance of IRS Form 9880, Envelope Order Form (see attachments 14 and 15) by the Government. Orders may be issued under the contract from October 1, 2008 through September 30, 2009 (plus options). All envelope orders issued hereunder are subject to the terms and conditions of the contract. The contract shall control in the event of conflict with any print order. An order shall be "issued" for purposes of the contract, when it is either deposited in the U.S. Postal Service mail or otherwise furnished to the contractor in conformance with the schedule.

NOTE: Attachment No. 14, IRS Form 9880, Envelope Order Form, is for representation only, final version will be provided to the contractor after award.

Upon receipt of each IRS Form 9880, the contractor must ensure that approval signatures are present for the use of the Government Purchase Cards (2 different signatures in boxes 13 & 16), and if appropriate (Envelopes E-25BR and E-25CR) must also have a local Mail Coordinator's signature (box 9). Contractor is to accept only the official, current revision of the IRS Form 9880. Any other versions must be faxed to the attention of the IRS Envelope Program Specialist at 859-669-3147, and returned to the requestor for resubmission. Incomplete orders average approximately 75 per month. Final version of the form (Rev. 10- 2008) will be supplied to the contractor after award.

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ONLINE ORDERING: The contractor must provide a web-based on-line ordering system site that permits IRS employees to order envelopes. Ninety-five percent (95%) of orders for envelopes must be electronically processed from start to finish. Once information is entered on website, it will automatically be populated on all subsequent screens. No data re-entry or re-keying will be required.

In addition to the web-based system, the contractor must be able to process orders via the IRS Paper Form 9880 (attachments 14 and 15). Both systems must provide methods of order tracking by date, IRS employee, or envelope (attachments 1 through 13).

The contractor is required to provide the following on-line application with the ability to make enhancements as necessary to accommodate changes in IRS procedures, content, or other changes required by the Government during the contract term.

The contractor’s online application is required to be capable of accepting valid credit cards for orders, and is required to comply with the following:

• Contractor must meet Payment Card Industry (PCI) standards and must be certified for PCI operations.

• Contractor must encrypt all credit numbers using Federal Information Processing Standard (FIPS) compliant encryption (Triple DES or AES encryption) when credit card numbers are stored or when credit card numbers are transmitted over a computer network.

• No credit card number shall ever be transmitted over a computer network without FIPS compliant encryption protection.

• No credit card number shall ever be stored in a database without FIPS compliant encryption protection. GPO and IRS must be notified if the contractor ever detects a breach of the contractor’s system in which credit card numbers are believed to have been copied or compromised.

The website must be in full operation within 90 days of award of the contract. The first 90 days of the contract orders will be submitted via facsimile, see “Facsimile Equipment” on page 6 of these specifications.

Screen information and “Order Authorization” provided below is a general format of what is required of the contractor at the time of bid. Exact screen content will be determined during development of website.

The website will contain screen information that mirrors the IRS Form 9880, see attachments 14 and 15. The following screen information is required on the website:

NOTE: The term “user” refers to IRS employees that will be placing orders on the website.

SCREEN 1

Users will be prompted for a user i.d. (format to be established at postaward conference) and password. New users will be prompted to enter their name, e-mail, phone number, fax number, manager’s name, and manager’s e-mail. This information will be auto-populated for returning users after entry of user i.d. and password. The user will be able to overwrite the auto-populated information. The website will ask for confirmation of change to populated fields.

NOTE: If the user’s password is forgotten, there will be a system in place to have it reset and emailed to the IRS employee.

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SCREEN 2

Order boxes, similar to IRS Form 9880’s boxes 23 (a) through (f), for each envelope will be required. Each envelope will have an order number box (to be filled in during Screen 8 below), a quantity box with a drop down menu with quantities from 500 to 25,000 in increments of 500, a price per 1,000 envelopes, the total dollar value (calculated by multiplying appropriate quantity by price per 1,000 envelopes), and a grand total (calculated by adding all total dollar values).

Screen will auto-populate with last order information. The user will be able to overwrite the auto-populated information. The website will ask for confirmation of change to populated fields.

SCREEN 3

Order boxes, similar to IRS Form 9880’s boxes 5, 7 (E-25BR and/or E-25CR envelopes), 7 (a) (E-25BR envelopes), 7 (b) (E-25 CR envelopes), 8 (E-25BR and/or E-25CR envelopes), and 9 will be required. Box 9 of IRS Form 9880 is for the Mail Coordinator Signature. The website will require an entry of the mail coordinator’s e-mail address in place of the signature.

IRS employee will enter 2 to 6 lines of information for each “Copy Change Area” (see attachments 1 through 13). The screen will show a mock up of what a finished envelope will look like with addresses positioned appropriately.

NOTE: Upon receipt of on-line order, the contractor must match these addresses with a master list of addresses provided by IRS and report any discrepancies to the IRS administrator or his designee within 24 hours of receipt of order by contractor.

SCREEN 4

An expandable drop down box for each envelope number ordered on Screen 2 will be required. System will generate an enlarged mock up envelope giving the IRS employee the option to approve or edit prior to submission.

A printer friendly button will allow the user to print out each mock up envelope.

SCREEN 5

An order box, similar to IRS Form 9880’s box 6 will be required. User will enter shipping information, attention name, and phone number.

SCREEN 6

An order summary will be provided showing all the data input to this point and the estimated delivery date in accordance with the contract, see “Schedule”. The user will be given the option to cancel or finalize order.

SCREEN 7

The user will choose either “Credit Card Payment” or “Publishing Funded Payment”.

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The “Credit Card Payment” screen will require order boxes similar to IRS Form 9880’s boxes 11, 12, 13, 14, and 15. The “Publishing Funded Payment” will require order boxes similar to IRS Form 9880’s boxes 17, 18, 19, 20, and 21.

See the requirements above in the “Online Ordering” section for the required capabilities for the processing and handling of credit card payment information by the contractor’s online application.

SCREEN 8

The system will generate a completed and print friendly IRS Form 9880 including individual contractor order numbers for each envelope ordered, similar to IRS Form 9880 box 23b. IRS employee is given the option of revising envelopes within 24 hours. IRS administrator will be given this ability also.

The screen must contain a simple text box (max 256 characters) for special comments. The simple text box and comments will print in addition to the IRS Form 9880.

ORDER AUTHORIZATION

The user’s manager must approve all orders. The mail coordinator must approve all orders for the E-25BR and E-25CR. The IRS administrator must approve all orders requiring a different address than listed on the master list of addresses provided by IRS. The IRS administrator must also approve all orders requiring Publishing Funded Payments (screen 7).

The website must be able to receive e-mail responses from the manager, the mail coordinator, and the IRS administrator that will approve or disapprove order and record the date the e-mail response is received. The schedule will begin upon receipt of all approvals.

The website will make a first attempt at order approval. If appropriate responses are not received after one work day (excluding Federal holidays), the website will make a second attempt at order approval. If appropriate responses are not received after one work day (excluding Federal holidays) of second attempt, the website will make a third attempt at order approval. If appropriate responses are not received after one work day (excluding Federal holidays) of third attempt, website will generate an e-mail to the user rejecting the order due to failure to authorize order.

The contractor will maintain a database of existing users. The IRS official will need to have access to the database and be able to query on the order via order number, name or order number. The information from previous orders should be stored in the database so when the IRS employee re-orders it will come up and they can make changes or leave as is to reduce the amount of time required to reorder.

FACSIMILE EQUIPMENT: Due to the number of IRS offices that will be utilizing this contract, and, as some orders placed will have to be faxed, the contractor will be required to have a minimum of two facsimile machines in operation. No single machine may be down more than one hour per day for maintenance or repair. Faxed orders may be placed between the hours of 8:00 a.m. Eastern Standard Time through 5:00 p.m.

Pacific Standard Time.

NOTE: Until the website is established, all orders will be placed via facsimile.

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SECURITY: The contractor shall take all necessary precautions to insure against mishandling and misuse of credit card information provided by the IRS. The minimum precautions must include that the facsimile machines are located in a secure location and have limited accessibility or that the contractor maintain encrypted facsimile machines.

FINANCIAL REQUIREMENTS: The contractor shall provide real-time updates and online database access to all invoices and account activity by agency and specific user including the date and cost of each transaction. Each user shall be assigned a username and password to access their account information, and account activity and should be able to create ad hoc reports that can be exported into Excel or PDF. Master access shall also be designated to supervisors who can oversee the account activity of several users within a department or agency.

The contractor will be paid for only those services actually performed.

The contractor’s bid price shall include a 7 percent surcharge for GPO which will also be the on-line prices.

Anticipate 95% of the orders will be ordered via on-line website with payment made directly to contractor using Government Credit Card. Anticipate 5% of the orders will be ordered via facsimile with payment made by traditional billing methods.

CREDIT CARD ORDERS: The contractor shall have the capability to accept credit card payment at the customer’s option and to validate the payment method prior to delivery of the product. The contractor will indemnify and hold the GPO and the U.S. Government harmless and the contractor assumes full liability and responsibility for the loss, misuse, or fraudulent (by contractor or its employees or agents) use of any and all credit card information obtained from GPO-designated customers relating to this agreement.

The website will contain pricing information (see “Screen 2”). Prices on the website will be the bid prices submitted under “Schedule of Prices” with applicable Economic Price Adjustment.

The contractor shall handle all billing questions, invoice disputes and issues related to each agency order in progress or closed out.

The contractor shall provide Proof of Delivery receipts via fax or through the website.

The contractor will provide a check to GPO consisting of the bid prices submitted under “Schedule of Prices” with applicable Economic Price Adjustment, less 93% from credit card transactions by the fifteenth of each month (consisting of the previous month’s activity). In addition, a monthly account detail of shipments supporting the monthly surcharge check is due to the GPO by the fifth of each month. This report should include: agency name, last 4 digits of credit card number, order number, contractor invoice number, date of purchase, description of purchase (product), dollar amount of product, delivery address, and date of shipment.

TRADITIONAL PAYMENT ORDERS: On a weekly basis, the contractor will complete and transmit a billing dataset to GPO. This dataset, referred to as a “user report”, contains records of IRS Envelope Order Forms completed and shipped since the last user report was transmitted. Elements of partially completed order may not be included in the user report.

The user report must include the following data: IRS Billing Address Code (BAC), envelope number, contractor order number, IRS requisition number, IRS order date, quantity and date shipped for each item on the order, and shipping zone number. As completed orders are being recorded in the user reports, system-generated reports for control purposes are available at any time.

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For each envelope order in a transmitted user report, the contractor must submit supporting envelope order forms, proof of shipment, and standard company invoice. The documentation should be sent by overnight mail so as to arrive at: Comptroller, STOP FMCE, Office of Financial Management, U.S. Government Printing Office, Washington, D.C. 20401 within 24 hours of the arrival of the user report.

The GPO will pay the contract “Schedule of Prices” minus 7%, via Electronic Funds Transfer within 30 days of receipt.

The contractor must submit a copy of the Envelope Order Form (upon receipt of order), contractor’s invoice and all mailing and/or delivery receipts (at time of invoicing) via e-mail to infocolumbus@gpo.gov or fax to 614-488-4577. One complete sample (at time of invoicing) may be required to be mailed to: US GPO;

Columbus RPPO; ATTN: Program/Print Order Numbers; 1335 Dublin Road, Suite 112-B; Columbus, OH 43215.

DATABASE & REPORTING REQUIREMENTS: The successful contractor shall provide the necessary support in working with GPO functions and create a database to assist in the administration of this procurement vehicle.

The Contractor shall accurately report the dollar value, in U.S. dollars, of all sales under this contract weekly.

The contractor shall submit weekly production reports to the GPO detailing the program activities completed by the contractor for each week. The contractor shall submit reports for additional timeframes as may be required by GPO. The reports must be in Microsoft Excel spreadsheet format or a format approved by the Contracting Officer and includes the following information itemized by each individual customer. The Contractor shall maintain a consistent accounting method of sales reporting, based on the Contractor’s established commercial accounting practice.

(1) Number of orders placed by agency.

(2) Quantity and dollar value of each order.

(3) Number of orders placed online.

(4) Number of orders placed via facsimile

(5) Number of quality complaints; pending and resolved.

(6) Totals for all items (1) through (5).

EXAMINATION OF RECORDS: The Contractor agrees that the Contracting Officer or any duly authorized representative shall have access to and the right to examine any books, documents, papers and records of the Contractor involving transactions related to this contract for sales, credit cards, billing, contract compliance, etc. This authority shall expire 3 years after final payment. The basic contract and each option shall be treated as separate contracts for purposes of applying this clause.

The contractor will allow GPO or its designee access to records/files to verify/audit customer transactions/records received by the contractor via the website. The contractor will allow GPO or its designee access to contractor shipping records related to orders received and processed under this contract. Contractor to provide GPO personnel or their designee, on an as-needed basis, access to the contractor’s annual sales statements.

TECHNICAL SUPPORT REQUIREMENTS: Contractor must have in-house technical support personnel available to resolve computer and printer hardware and software configuration problems.

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REQUIREMENTS: This is a requirements contract for the items and for the period specified herein.

Shipment/delivery of items or performance of work shall be made only as authorized by orders issued in accordance with the clause entitled "Ordering". The quantities of items specified herein are estimates only, and are not purchased hereby. Except as may be otherwise provided in this contract, if the Government's requirements for the items set forth herein do not result in orders in the amounts or quantities described as "estimated", it shall not constitute the basis for an equitable price adjustment under this contract.

Except as otherwise provided in this contract, the Government shall order from the contractor all the items set forth which are required to be purchased by the Government activity identified on page l.

The Government shall not be required to purchase from the contractor, requirements in excess of the limit on total orders under this contract, if any.

Orders issued during the effective period of this contract and not completed within that time shall be completed by the contractor within the time specified in the order, and the rights and obligations of the contractor and the Government respecting those orders shall be governed by the terms of this contract to the same extent as if completed during the effective period of this contract.

If shipment/delivery of any quantity of an item covered by the contract is required by reason of urgency prior to the earliest date that shipment/delivery may be specified under this contract, and if the contractor will not accept an order providing for the accelerated shipment/delivery, the Government may procure this requirement from another source.

The Government may issue orders which provide for shipment/delivery to or performance at multiple destinations. Subject to any limitations elsewhere in this contract, the contractor shall furnish to the Government all items set forth herein which are called for by Envelope Order Forms issued in accordance with the "Ordering" clause of this contract.

DELIVERY/SHIPPING STATUS INFORMATION: The contractor is to use the GPO furnished form to report the delivery/shipment status on each order. The form is to be reproduced as needed by the contractor.

This information MUST be furnished to GPO - Columbus, RPPO on each order. The information as contained on this form is to be faxed or called to the Columbus RPPO.

Fax Number (614) 488-9618 Telephone Number (614) 488-4616, extension 24

NO COLLECT CALLS

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SECTION 2. – SPECIFICATIONS

SCOPE: These specifications cover the production of envelopes requiring such operations as composition, reproducibles, printing, construction, packing, and distribution.

TITLE: IRS Field Office Envelopes

NUMBER/FREQUENCY OF ORDERS: Based on prior year usage it is anticipated that approximately 1 to 40 Envelope Order Forms (average 12) per day for approximately 1 to 110 items (average 31) per day will be ordered, from up to approximately 2,000 IRS locations nationwide. Some days may not have any Envelope Order Forms issued.

QUANTITY: It is impossible, due to the volume of orders placed and numerous order points, to state with any degree of accuracy the exact quantities that will be ordered on this contract, therefore the estimated yearly quantities indicated below could vary significantly.

Orders will range from 500 to 25,000 envelopes per order. Orders may be placed for multiple types of envelopes, however, no less than 500 nor more than 25,000 envelopes may be ordered in any particular type.

Envelope Number

Revision Date

Specification Sheet

Revision Date Envelope Size

Estimated Annual Quantity

E-19 10-2006 12847-A 10-2006 8-7/8 x 3-7/8” 400,000 to 700,000 E-20 10-2006 12847-B 10-2006 12-1/4 x 9-1/4” 1,000,000 to 2,500,000 E-25BR 8-1996 12847-C 10-2002 8-7/8 x 3-7/8” 600,000 to 900,000 E-25CR 5-2001 12847-D 10-2002 8-7/8 x 3-7/8” 1,000,000 to 2,500,000 E-44 8-1996 12847-E 10-2002 12-1/2 x 9-1/2” 2,000,000 to 3,000,000 E-44B 10-2004 12847-F 10-2004 9 x 12” 500,000 to 800,000 E-47 8-1996 12847-G 10-2002 15 x 10” 300,000 to 600,000 E-125L 10-1994 12847-K 10-2002 9-1/2 x 4-1/8” 2,000,000 to 4,000,000 E-125R 10-1994 12847-L 10-2002 9-1/2 x 4-1/8” 200,000 to 500,000 E-130 10-1994 12847-M 10-2002 9-1/2 x 4-1/8” 1,000,000 to 3,500,000 E-142B 10-2006 12847-O 10-2006 9-1/2 x 6-1/8” 100,000 to 400,000 E-178 9-2003 12847-R 9-2003 9-3/4 x 4-3/8” 20,000 to 50,000 E-200A 1-2007 12847-U 1-2007 9-1/2 x 6” 900,000 to 1,500,000

Anticipate the following for percentage of orders placed containing quantities as listed:

• 500 to 1,000 envelopes = 50%

• Over 1,000 to 2,000 envelopes = 25%

• Over 2,000 to 5,000 envelopes = 21%

• Over 5,000 to 25,000 envelopes = 4%

NO QUANTITY VARIATION ALLOWED.

INVENTORY ON HAND: During the first 9 months of the contract period, the Government will not be liable for more than 35% of the lower amount of the estimated yearly totals.

During months 10 and 11 of the contract period, the quantities must not be replenished at a level of more than 20% of the lower amount of the estimated yearly totals. Once the quantity falls below 20% during months 10 and 11 of the contract, the inventory must not exceed that amount.

During the last month, the contractor must contact GPO, and receive written authorization, to replenish the supply of envelopes in inventory.

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Contractor is authorized to preprint inventory on hand with text matter that is common to all field offices.

Individual field office data (e.g. name, address, barcode) must not be preprinted. Preprinting will be discussed at the post-award conference.

NOTE: Upon termination of this contract, the agency will issue IRS Form 9880, Envelope Order Forms for any inventory that was not used during the term of this contract (unless the current contractor is again the successful bidder). Reimbursement for these orders will be made at 75% of the contract schedule of prices.

These envelopes must only be printed with text matter that is common to all field offices.

GOVERNMENT TO FURNISH: Composition instruction on IRS Forms 12847 series (Envelope Specification Sheet), Manuscript Copy on IRS Form 9880 (Envelope Order Form) for setting text matter on balance of envelopes. Envelope Specification Sheets provide additional printing specifications. See attachments 1 through 13.

Upon award, the Government will provide to the contractor’s plant, up to the following quantities:

Envelope Number Estimated Total Quantity Estimated Total Price E-19 140,000 $3,814.65 E-20 300,000 $12,930.75

E-25BR 120,000 $4,018.50

E-25CR 150,000 $5,023.13

E-44 500,000 $28,556.25 E-44B 14,000 $1,229.03 E-47 100,000 $7,542.75 E-125L 362,500 $12,593.25 E-125R 100,000 $3,474.00 E-130 397,500 $13,367.93 E-142B 60,000 $3,525.30 E-178 10,000 $587.55 E-200A 140,000 $6,608.70

GRAND TOTAL $103,271.78

The contractor must make payment to the Government for the above furnished envelopes in the listed estimated amounts within 90 days of award. The exact details and amounts will be agreed upon during the postaward conference.

One reproduction proof of shipping label, IRS Form 6153 (Rev. 3-2006) Cat. No. 62724N with labeling and marking specifications. See attachment 17.

Identification markings such as register marks, ring folios, rubber stamped jacket numbers, commercial identification marks of any kind, etc., including GPO imprint, carried on copy or film, must not print on finished product.

The facsimiles of envelopes, attachments 1 through 13 are representative of the requirements which will be ordered under this contract, however addresses and barcoding will change with each order. Other items such as a mail indicia may be requested to be added as manuscript on individual orders. Envelope Specification Sheets may change during the term of the contract.

CONTRACTOR TO FURNISH: All materials and operations, other than those listed under "Government to Furnish”, necessary to produce the products in accordance with these specifications.

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COMPOSITION: Contractor will be required to typeset all line matter printing on envelopes, from Government furnished manuscript copy or Envelope Specification Sheet. Approximately 6 to 28 point Helvetica or Helvetica Bold (or equal) will be required.

NOTE: Contractor must produce and position individual bar codes to match the destination address on the envelope as required by Postal regulations, and/or to achieve Postal discounts.

REPRODUCIBLES: The contractor must make all reproducibles required. The contractor is responsible for determining what type reproducibles will be used but must maintain the quality level specified in the contract.

No separate charges will be allowed for the various types of reproducibles that may be used.

Further, the contractor is responsible for outputting all images contained on furnished material, regardless of the production process, at the highest effective resolution possible. The contractor is responsible for determining the appropriate output resolution to achieve optimal results for such design elements as blends, gradients, halftones, type and other images. This determination should be made using factors such as stock, imaging device (or press) being used, and other factors unique to the contractors production environment.

PROOFS: None required, however, the contractor will be responsible for performing all necessary proofreading to insure that the final product is in conformity with the copy submitted, and USPS postal regulations.

NOTE: It is the intention of the IRS to perform routing of the online orders to certain employees for approval of the order and verification of the submitted address for adherence to IRS Addressing Guidelines. In the event of the electronic routing is unavailable, or paper order forms are submitted, the contractor may be required to manually forward the orders to said persons.

STOCK/PAPER: The specifications of all paper furnished must be in accordance with those listed herein.

All stock/paper used in each copy must be of a uniform shade.

White Writing or Wove, grammage 90 g/m2 (basis weight: 24 lbs. per 500 sheets, 17 x 22") (E-19, E-20, E-

25BR, E-25CR, E-125L, E-125R, E-130, E-142B, E-178, E-200A).

White Writing or Wove, grammage 105 g/m2 (basis weight: 28 lbs. per 500 sheets, 17 x 22") (E-44, E-44B, E- 47).

PRINTING: Print face and back in black ink or black ink and one additional color. Printing shall be in accordance with the requirements for the style envelope ordered. Overprinting shall be as specified on the IRS Form 9880, Envelope Order Form.

NOTE: It is anticipated that the E-142B envelope will print in black and PMS 347 green and all other envelopes will print in black ink only.

All printing shall comply with all applicable U.S. Postal Service regulations. Envelope printing (e.g. print contrast ratio, postnet barcodes, etc.) must meet U.S. Postal Service Automation guidelines/requirements (refer to latest version of USPS Publication 25, Designing Business Letter Mail, and the Domestic Mail Manual).

NOTE: It is the responsibility of the contractor to keep up to date on all USPS regulations.

The envelope shall accept printing, ink writing and bar coding without feathering, blurring, smearing, or penetrating to the reverse side.

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All envelopes require a security tint printed on the inside of the envelope in black ink. Contractor may use their own design, but must guarantee that the product will ensure complete opacity, and prevent show through of any material contained therein.

Match Pantone number as indicated on the print order/specification sheet.

MARGINS: Follow furnished Envelope Specification Sheets, for margins and proper placement of information for each type of envelope.

CONSTRUCTION OF ENVELOPES: Envelopes shall be diagonal or side seam construction rounded flap or pointed “V” flap or tapered “V” flap. Contractor’s option which type seam or flap may be used unless the Envelope Specification Sheet indicates style of seam or flap required.

Envelopes shall be of sufficient throat depth and flap length so as to prevent the flap adhesive from contacting the envelope contents. The sealed seams shall not adhere to the inside of the envelope. Envelopes shall be free from cuts, folds, tears, machine marks, foreign matter, dirt, ink smears and adhesive stains.

FLAP ADHESIVE: All sealing flap adhesive shall be a water-activated type of such a consistency to prevent premature sealing of the flap and curling of the envelope after drying.

1. The flap adhesive shall be uniformly applied and have a minimum thickness of 0.015 mm (0.0006 inch). The flap shall be capable of being quickly and securely sealed using finger tips after moistening the adhesive. When opened 15 to 20 seconds after sealing, the flap shall pull fibers from the body of the envelope from not less than 75% of the adhesive area of the flap beyond the throat, up to a maximum width of one inch gum strip from the edge of the flap.

2. Size of flap: The minimum flap size shall be as follows:

(a) For envelopes equal to or less than 6 x 9-3/4" sealing flap must exceed the throat by at least 3/4" and not more than 1-1/2”.

(b) For envelopes larger than 6 x 9-3/4" the sealing flap must exceed the throat by at least 1-1/2" and not more than 2-1/4”.

SPLIT GUMMING: Split gumming is not permitted on any envelope. All adhesives shall be clean and free from offensive odors and ingredients that would discolor the paper.

WINDOWS: Windows for the E-44B, E-125L, E-125R, E-142B and E-178 envelopes, shall have rounded or slightly rounded corners, shall be the size and location specified on the Envelope Specification Sheets included in this contract, and shall comply with all applicable U.S. Postal Service regulations. The window shall be covered on the inside with a transparent polystyrene window material glued securely on all edges so as not to interfere with insertion of contents. The transparent polystyrene window material shall be free of conditions which would prevent the address from being distinctly legible.

PACKING: Envelope numbers may not be intermixed within a box or shipping container.

Envelope sizes up to and including 6 x 9-3/4": Pack in units of 500 envelopes, in close-fitting boxes.

Envelopes shall be unbanded and sealing flap on open side shall be folded down. Pack five close fitting boxes into shipping container and close/seal in accordance with GPO Contract Terms. If an order is received for less than 2,500 envelopes (5 boxes), a suitably sized shipping container, with appropriate packing material placed in shipping container to prevent internal boxes from moving during shipment.

Envelope sizes larger than 6 x 9-3/4": Pack in units of 500 envelopes, in close-fitting shipping containers.

Envelopes shall be unbanded and sealing flap on open side shall be folded down. The box shall be closed/sealed in accordance with GPO Contract Terms.

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CARTON LABELING AND PALLET SPECIFICATIONS: See attachments 16 and 17. Strict adherence to this attachment is necessary to meet requirements of IRS storage facilities. Receipt of incorrect pallets may result in a charge assessed against the contractor for each incorrect pallet. This charge will cover costs incurred by the Government in re-palletizing the shipment onto correct pallets. Pallets shall be stacked with reverse layer pattern to insure acceptance and safe delivery by common carriers. If this is not possible due to irregular shape of cartons, pallets may be “chimney stacked”, but must include corner beads cut no higher than the top of the pallet, with sufficient stretch wrap as to provide a safe and secure pallet. Multiple types of envelopes may be palletized together for a single destination however, pallet must clearly indicate the pallet contains multiple types and list them on the pallet label.

CARTON SHIPPING INSTRUCTIONS, IRS FORM 6153: Reproduce shipping container label from furnished repro, fill in appropriate blanks (Carton Count, Contractor Name, Consignee's Address, Envelope Style Number, Revision Date, Carton Quantity, GPO Program Number, and Jacket Numbers), and attach to shipping containers. See attachment 16.

NOTE: Each order must contain a packing slip. See “CONTRACTOR RESPONSIBILITIES FOR ORDER PROCESSING” under “SCHEDULE”.

STAGING AREA: Envelope orders, consisting of various types, must be assembled and delivered, in accordance with the schedule to several hundred different destinations each month. PROSPECTIVE

BIDDERS ARE ADVISED TO CAREFULLY CONSIDER THE NECESSARY SPACE REQUIRED TO

STAGE THE ORDERS.

NOTE: All orders must deliver complete. No partial deliveries will be allowed.

DISTRIBUTION: Deliver f.o.b. destination by small package carrier by traceable means, or freight carrier for palletized shipments, up to approximately 2000 nationwide destinations including Alaska, Hawaii and Puerto Rico. Deliveries to many destinations will require inside delivery to specific room numbers. These room numbers will be indicated on the order form and contractor will be required to deliver to each of the rooms individually.

Anticipate the following:

• Zone 1: ME, VT, NH, MA, CT, RI, NY, PA, NJ: = 20% of the orders

• Zone 2: MD, DE, DC, NC, SC, GA, FL, MS, AL, LA: = 20% of the orders

• Zone 3: TN, KY, WV, OH, IN, IL, MI, WI, VA: = 18% of the orders

• Zone 4: MO, IA, MN, NE, ND, SD, KS, OK, AR, TX: = 17% of the orders

• Zone 5: NM, AZ, CO, UT, WY, MT, ID, NV, WA, OR, CA: = 24% of the orders

• Zone 6: AK, HI, PR: = 1% of the orders

REPORTS FROM CONTRACTOR: Contractor shall create and maintain a database on Microsoft Excel (version 2007 or 2003) at their plant that will generate the following monthly reports:

1. Orders Received for Month xx/xx: to include date, number of forms received, total envelope orders, number of line items on forms, and number of line items of 1,000 envelopes or less.

2. Shipping Report for Month xx/xx: to include envelope number, ship to office name, street address, city, state, quantity and date shipped.

3. Total Envelopes Shipped: by month (cumulative), in bar graph format, including previous year’s data for comparison.

4. Monthly Averages/Totals: to include totals shipped by envelope number with averages.

5. Incomplete Orders: to include monthly total of Forms 9880 returned to requester for additional information to process order.

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Reports are to be sent as an e-mail attachment on a monthly basis to: brian.l.anderson@irs.gov;

jack.custis@irs.gov, lprice@gpo.gov, msommer@gpo.gov, and tmack@gpo.gov.

SCHEDULE: Adherence to this schedule must be maintained. Contractor must not start production of any job prior to receipt of the IRS Form 9880.

Orders will be placed by IRS offices nationwide, including Alaska, Hawaii and Puerto Rico, by ordering on-line or via facsimile. See attachments 14 and 15 for IRS Form 9880 requirements.

CONTRACTOR RESPONSIBILITIES FOR ORDER PROCESSING: Contractor must verify upon receipt of the form that approval signatures are present for use of credit card (2 different signatures) and, if appropriate, for the local mail coordinator. Contractor to accept only official versions of the IRS Form 9880 and any other versions must be brought to the attention of the IRS Envelope Program Specialist at 859-669-3123. See attachment 15 for additional information to be perfected on the IRS Form 9880.

Contractor must include a packing slip with each order shipped, and a photocopy of the IRS Form 9880. This form can be used as a packing slip by indicating an internal job or tracking number next to the line item on the form. If an IRS office has a question about an order they must be able to call the contractor and by providing the internal order number from the packing slip, obtain information about that line item.

Other contacts may be made by IRS offices to confirm receipt of faxed form, provide credit card information, or inquire about order status. Please note that any request by an IRS office to deviate from contract specifications must be reported immediately to the IRS Envelope Program Specialist at 859-669-3123. The IRS Envelope Program Specialist will direct the contractor to proceed with the order, or refer the contractor to the GPO Contracting Officer for additional approval.

The GPO Contracting Officer has the sole authority to make modifications to the contract which result in monetary changes. IRS approval to proceed does not relieve the contractor of the responsibility of obtaining a modification or waiver to secure additional charges on an order.

The following schedule begins the workday after receipt of faxed Envelope Order Form; the workday after receipt will be the first workday of the schedule.

ACCELERATED SCHEDULE: Approximately 3% to 5% of the orders placed on this Program will require an accelerated schedule. Complete production and shipping of envelopes must be made within 5 workdays after receipt of the Envelope Order Form.

NORMAL SCHEDULE: Complete production and shipping of envelopes must be made within 10 workday(s) after receipt of Envelope Order Form.

TRANSIT TIME (ACCELERATED AND NORMAL SCHEDULE): Transit time from scheduled shipping date to delivery at destination(s) must be no more than 6 workdays for all destinations within the continental United States and 15 workdays to Alaska, Hawaii, and Puerto Rico.

RECEIPT FOR DELIVERY: Contractor must furnish their own receipts for delivery. These receipts must include the GPO jacket, program and print order numbers, total quantity delivered, number of cartons and quantity per carton, date delivery made, and signature of the Government agent accepting delivery. The original copy of this receipt must accompany the contractor's voucher for payment.

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Unscheduled material such as shipping documents, receipts or instructions, delivery lists, labels, etc., will be furnished with each order or shortly thereafter. In the event such information is not received in due time, the contractor will not be relieved of any responsibility in meeting the shipping schedule because of failure to request such information.

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