26RS0007_-_All_Exhibits.pdf

California Department of Veterans Affairs Contract Number: 26RS0007 Exhibit A – Scope of Work Contractor: TBD

BARBER AND BEAUTY SHOP SERVICES

1. INTRODUCTION/SERVICES

A. The Contractor shall provide services to the California Department of Veterans Affairs (CalVet) at the Redding Veterans Home (“the Home”), located at 3400 Knighton Road, Redding, CA 96002. Contractor must provide all labor, equipment, materials, transportation, license, permits, and every other item of expense necessary, unless otherwise stated, to provide barber and beauty shop services. Services must be provided in compliance with the terms of this Agreement.

B. All work must be coordinated and pre-approved by the Contract Manager or designee. Services must be performed during standard business hours, 8:00 a.m. to 5:00 p.m., Monday through Friday, unless otherwise specified. No work is to be performed on State holidays or after standard business hours unless prior approval is received in writing from the Contract Manager. Any services performed outside the scope of this Agreement or not approved by the Contract Manager, or designee, will be at the sole risk and expense of the Contractor.

C. Contractor must be able to perform the tasks associated with providing services under the scope of their license. Contractor will provide services in accordance with federal and state laws and regulations and CalVet policies.

D. The Contractor is not authorized to deliver or commence performance of services as described in the Agreement until written approval has been obtained from CalVet Contract Manager and the Contractor has received an executed contract from CalVet. Any delivery or performance of service commenced prior to the Contractor obtaining all written approvals shall be considered voluntary on the part of the Contractor.

2. MINIMUM QUALIFICATIONS

All services performed under this Agreement requiring licensure must be performed by properly licensed barbers and cosmetologists in accordance with the requirements under section 5(A) of this Agreement.

Contractor must be licensed to conduct business in California.

3. CONTRACTOR RESPONSIBILITIES

A. The Contractor shall provide barber and beauty services two to three days per month, four hours each session, for a total not to exceed twelve (12) hours per month, to Skilled Nursing Facility (SNF) residents of the Home. Exact dates and times of services will be mutually agreed upon by the Contractor and Contract Manager. These services include, but are not limited to:

1. Haircuts with ear and eyebrow trim;

2. Beard and mustache trim; and

B. Contractor is responsible for paying his or her own applicable taxes, permits, or inspection fees.

C. Contractor must perform services in the Home’s Barbershop or, upon request, at a resident’s bedside.

Requested changes to the agreed-upon schedule must be coordinated with the Home’s Contract Manager. Contractor may accommodate appointments made in advance for hours other than listed.

D. Contractor must comply with all applicable federal, state, and local safety and fire regulations and codes.

E. Contractor must maintain records on a daily basis of services provided to all Residents. The record must contain the date of service, name of resident, type of service, appointment time or time service started, residents’ signature or Home staff to verify the service was performed. Contractor must complete an invoice provided by the Home (Exhibit A - Attachment 1) upon completion of billable services. The original invoice must be submitted to the Contract Manager as a record of services provided. Service records and invoices must be submitted to the Contract Manager after each visit when services are provided.

F. Contractor must, after performing services on each resident, remove hair clippings from the floor, cabinetry, shelving, furniture, and fixtures.

G. Contractor must clean and sanitize all tools in accordance with the Dept. of Consumer Affairs Board of Barbering and Cosmetology regulations using EPA-registered disinfectants after each use with appropriate germicide and fungicide solution.

H. Contractor must use fresh, sanitized, laundered towels, sheets, or gowns for each resident.

I. When providing bedside services in the SNF, Contractor must report to the Unit Charge Nurse prior to and upon completion of services.

J. A hand-held vacuum is recommended for cleanup when providing bedside service.

K. Contractor must:

1. Visit the Home’s Contract Manager within seven (7) business days of contract award to prepare for initial service including, but not limited to hanging permits, licenses, and placement of service price list; organizing space, acquiring resident appointments, stocking supplies, assessing space, and identifying any needs prior to providing services.

2. Be available to begin services thirty (30) calendar days from date of award or soon, as mutually agreed upon by Contractor and Contract Manager.

L. In the event of changes to the schedule, the Contractor must notify the Supervising Rehabilitation Therapist at (530) 224-2829 or Recreation Therapy staff.

M. Contractor must immediately notify the Contract Manager if the Contractor will be late or there is an unexpected change to the day’s schedule. Frequent lateness based on the failure to perform provision in Exhibit D, unscheduled changes, or multiple failures to notify may result in termination of the Agreement.

N. Contractor must not use State telephones unless for official State business.

O. The Contractor must furnish all personal tools, equipment and supplies required for the performance of the services. These items include, but are not limited to: shampoo, conditioner, sterilizing solutions, combs, brushes, scissors, clippers, protective drapes, and hand-held vacuum.

P. All equipment must be kept clean and in good repair (free of breaks, corrosion, open seams, frayed electrical cords, cracked and chipped areas) and preapproved by the Home’s Plant Operations manager prior to use.

Q. In the event of any accident or unusual occurrence involving a resident or the Salon, Contractor must immediately report to the Coordinator of Volunteer Services or Supervising Rehabilitation Therapist and cooperate with the completion of an incident report form.

4. HOME RESPONSIBILITIES

The Home agrees to:

A. Provide a salon equipped with electricity, hot and cold running water, trash removal, and cleaning service.

B. Provide identification badges to Contractor and Contractor’s employees.

C. Coordinate scheduling of residents requiring services. Changes to the schedule will be posted at the Reception Desk.

D. Assist and escort residents to and from the appointments as needed.

E. Provide fresh, sanitized and laundered towels in the salon.

F. Provide reading material to the salon.

G. Issue Preventive Protective Equipment (PPE) in situations where PPE is required. The charge nurse will issue appropriate PPE and advise Contractor of policies and protocols as needed.

H. Coordinate with the Contractor for:

1) Facility orientation to include but not limited to, Building Safety, Resident Rights, Confidentiality, Privacy Protection, Discrimination, Harassment, and Zero Tolerance of Elder Abuse.

2) Electrical equipment inspection by the Home’s Plant Operations manager.

5. LICENSES, PERMITS, AND CERTIFICATION REQUIREMENTS

A. Contractor shall be licensed by the State of California, Department of Consumer Affairs, Board of

Barbering & Cosmetology in compliance with California Code of Regulations (CCR), Title 22, Division 5, Chapter 3, Article 3, §72315(d) during the entire term of this Agreement.

B. Contractor licenses must be displayed in the location where work is being performed, and a copy provided to the Contract Manager.

C. Contractor must ensure all licenses, permits, and certification requirements for its employees or assistants are verified and current throughout the term of this Agreement.

D. Contractor’s employees or assistants not licensed by the Department of Consumer Affairs, Board of Barbering and Cosmetology are not allowed to provide services that fall under the scope of a cosmetology or barber license.

6. WORK AREA

A. The Contractor must ensure that the work area is kept clean and free of debris in order to maintain a safe working environment. All tools, equipment and other materials belonging to the Contractor must be removed from the Home at the end of each working day. The State is not responsible for storage of any of Contractor’s property.

B. Contractor must maintain areas and equipment in a clean and attractive appearance, arranging equipment and décor to achieve not only a pleasing and workable overall effect, but also one which will require minimum maintenance.

C. Chair arms, seat, and footrest must be wiped after service to each customer. Shop tools must be cleaned and sanitized after each customer use, with EPA-registered approved germicide and fungicide solutions. Clippers must be sanitized with approved clipper spray after each use. A reserve supply of linen and other supplies must be stored neatly in appropriate closed cabinets.

7. HEALTH CLEARANCE

A. Contractor, its employees, and providers shall, prior to providing services, complete the following health clearances required by Home policy of all state employees, contract employees and volunteers in order to meet state facility licensure requirements.

a. Initial and annual tuberculosis (TB) screening

b. Annual influenza vaccination (flu shot) during annual flu season as determined by the California Department of Public Health, or a written declination, plus wear an isolation face mask .

c. Contractor has the option to utilize the Home’s on-site clinic for the tests in subsections a and b at no cost or Contractor may utilize its own provider at Contractor’s own expense.

B. TB Initial and Annual Screening: Initial TB screening may include, but not be limited to, 2-step TST/PPD testing and/or X-ray, and TB questionnaire. Annual TB screening may include, but not be limited to, 1-step TST/PPD testing and/or X-ray, and TB questionnaire. The TB clearance process must be completed prior to initiation of services or technician assignment, and within the required timeframe stipulated by the Home for the annual requirement.

C. Contractor shall request from the Contract Manager or designee permission to utilize the Contractor’s own health care provider for health clearances as described in this Agreement. When utilizing Contractor’s own health care provider, Contractor shall submit medical documentation to the Home’s Ambulatory Care Clinic indicating the individual is cleared to perform his or her duties and is free of communicable disease. The medical documentation must be submitted prior to initiation of services or employee assignment, and annually thereafter as required by the Home.

D. Contractor agrees that failure to comply with the Home’s infection control policies shall result in immediate provider suspension, contract suspension, or termination of this Agreement. Provider and contract suspension shall remain in effect until the Contractor provides the appropriate medical clearance to the Home’s Infection Control Specialist, Contract Manager, or designee.

8. LIVE SCAN CLEARANCE

A. Home policy requires Contractors, Contract’s employees or providers obtain Live Scan Clearance prior to start date of assignment in order to meet State facility licensure requirements. Failure of a Contractor, Contractor’s employees or providers to pass the Live Scan Clearance precludes the individual from providing services at the facility. If, after initial clearance, the Home is notified that the individual is no longer cleared, the individual shall not be allowed to provide services until the Home receives proof of an exemption.

B. Contractor shall be responsible for all costs associated with Live Scan Clearance Contractor, its employees, providers or technicians selected to perform services at the Home.

C. The Home’s Human Resources Office will coordinate fingerprinting in conjunction with the Contractor and the Home’s Live Scan provider. Live scan is the only acceptable form of fingerprinting for the Home.

a. If the Contractor uses its own Live Scan provider, the Contractor shall direct its provider to provide results to the Home using the Home’s facility number.

D. In the event the Contractor or its employees or providers fail to appear for the Live Scan fingerprinting set up by the Home within the prescribed period or on the appointment date, the individual may not be considered for assignment at the Home. The Contractor agrees to be responsible for coordinating the next appointment.

9. BACKGROUND CLEARANCE

A. Background clearance involving fingerprinting is required by Home policy of state employees, contract employees and volunteers prior to assignment to the Home in order to meet state facility licensure requirements.

B. In the event the prospective Contractor or Contractor’s employee(s) fails to appear for the Live-Scan fingerprinting within the prescribed period or appointment, the individual will not be considered for assignment at the Home.

10. INDEPENDENT CONTRACTOR STATUS

A. The Contractor and its employees or assistants are considered independent contractors and not employees of CalVet. As such, the Contractor and its employees or assistants are not entitled to any employee benefits from the CalVet or the State.

11. PERSONNEL

A. Contractor and his or her employee(s) must attend the Home’s orientation, and Live Scan in addition to the required health clearances as described in Section 8 of this Agreement. . According to Title 22, Contractor shall be responsible for the initial, refresher or annual training, certificates, permits, licenses, etc., at Contractor’s sole expense.

B. Contractor and its employee(s) must exercise and adhere to all necessary caution to avoid injury to persons, or property damage.

C. Contractor must have a plan of action in place for continuous service on planned days of absence(s).

The Contractor must inform the Contract Manager and the Contract Manager has final approval on substitute personnel.

D. Contractor must participate and assist, if necessary, in all emergencies or drills conducted at the Home.

E. Contractor must meet at least quarterly with the Contract Manager at times mutually agreeable to the

Contractor and Contract Manager to discuss performance of this Agreement.

F. Contractor is responsible for maintaining professional standards of appearance, competency, conduct, and integrity of its employees.

G. Contractor must not unlawfully discriminate against its employees, other contractors, Home staff or agents, and will fully comply with all applicable local, state, and federal non-discrimination and employee-related regulations, statues, and judicial decisions.

12. CONTACT INFORMATION

A. The project representatives during the term of this agreement will be:

Contract Manager:

Contractor:

TBD

B. Contract Managers may be changed by issuing a 20-day prior written notification and does not require a formal amendment to this Agreement. The notifying party must provide complete contact information for the replacement Contract Manager, including name, title, mailing and email addresses, phone and fax numbers. All other changes require a formal written amendment to this Agreement.

California Department of Veterans Affairs Agreement Number: 26RS0007 Exhibit B - Budget Detail and Payment Provisions TBD

1. STANDARD BUDGET DETAIL AND PAYMENT PROVISIONS

A. Invoicing and Payment

1. For services satisfactorily rendered, and upon receipt and approval of the invoices, the State agrees to compensate the Contractor for services rendered in accordance with the rates in Exhibit B-1.

2. Invoices shall include the Agreement Number and shall be submitted in not more frequently than monthly in arrears to:

Original Invoice Approval Copy Department of Veterans Affairs CalVet Accounting Office 1227 “O” Street Room 402 Sacramento, CA 95814 APInvoices@calvet.ca.gov

Redding California Veterans Home

TBD

B. Budget Contingency Clause

1. It is mutually agreed that if the Budget Act of the current year and/or any subsequent years covered under this Agreement does not appropriate sufficient funds for the program, this Agreement shall be of no further form and effect. In this event, the State shall have no liability to pay any funds whatsoever to Contractor or to furnish any other considerations under this Agreement and Contractor shall not be obligated to perform any provisions of this Agreement.

2. If funding for any fiscal year is reduced or deleted by the Budget Act for purposes of this program, the State shall have the option to either cancel this Agreement with no liability occurring to the State, or offer an Agreement amendment to Contractor to reflect the reduced amount.

C. Prompt Payment Clause

Payment will be made in accordance with, and within the time specified in, Government Code, Chapter 4.5, commencing with Section 927.

2. SPECIAL BUDGET DETAIL AND PAYMENT PROVISIONS

Submissions of Invoices/Claims

A. All invoices/claims must be completed thoroughly and legibly, with all applicable fields completed.

Invoices/claims that are submitted to the appropriate location but have been altered, or are inaccurate, or do not provide all necessary information will not be accepted and will be returned to the Contractor for correction.

B. Any changes to this provision relating to the invoice/claim submittal process, including but not limited to an address, form, or process change, shall be an administrative change managed through the appropriate designated CalVet office and shall not require a contract amendment.

C. Contractor shall submit monthly invoices to the CalVet Contract Manager for approval and processing.

Invoices/claims submitted shall include the following information in order to be considered complete and acceptable for processing, or the invoice/claim will be returned:

1) Contractor’s Company name exactly as it appears on the Payee Data Record (STD.204)

2) Contractor’s Company address, phone number and e-mail

3) Date of invoice/claim

4) Invoice/claim number

5) CalVet location where services were performed

Exhibit B - Budget Detail and Payment Provisions TBD

6) Contract/Agreement Number

7) Date(s) of Service

8) Total dollar amount being billed

9) First and Last name of Contractor or Provider performing services, if applicable

10) Contractor’s or Provider’s Classification, whichever is applicable

11) When applicable, Contractors shall include the following information on the invoice/claim submitted for hourly reimbursement:

a) Hourly Rate

b) Time in and time out

c) Total hours worked

d) Any other information or documentation reasonably required to verify and substantiate the provision of services and the charges for such services.

3. CONTRACTOR OVERPAYMENTS

A. If the State determines that an overpayment has been made to the Contractor, the State will seek recovery immediately upon discovery of the overpayment by: (a) calling the Contractor’s accounting office to request a refund of the overpayment amount, or (b) offsetting subsequent Contractor payments by the amount of the overpayment if Contractor repayment or credit is not received within thirty (30) days from the date of notice.

B. If Contractor discovers it has received an overpayment, Contractor must notify the State and refund the overpayment immediately.

Exhibit B 1 – Rate Sheet TBD

BARBER SERVICES

The Contractor must be able to provide services to the Home indicated below and subcontractors may be used to comply with this requirement. If Subcontractors are used, Subcontractor information must be submitted on the Bidder’s Declaration. If additional Subcontractors are added during the term of the contract, an updated Bidder’s Declaration must be submitted.

The rate listed below is in effect for the term of the Agreement, including any extension of the term through an amendment.

Description of Service Rate Per Service

Hair Cut

Beard and Mustache Trim

Mustache Trim

Bedside Service – Surcharge to go to Resident’s Bed

Exhibit C, General Terms and Conditions TBD

1. General Terms and Conditions

A. General Terms and Conditions (GTCs)

The (GTCs) are hereby incorporated by reference and made part of this agreement as if attached.

hereto. These documents may also be viewed at the California Department of General Services website: https://www.dgs.ca.gov/-/media/Divisions/OLS/Resources/GTC-Updates/GTC-225- February-2025.pdf https://www.dgs.ca.gov/-/media/Divisions/OLS/Resources/GTC-Updates/GTC-225-February-2025.pdf https://www.dgs.ca.gov/-/media/Divisions/OLS/Resources/GTC-Updates/GTC-225-February-2025.pdf

Exhibit D – Special Terms and Conditions TBD

1. EXCISE TAX

The State of California is exempt from Federal Excise Taxes, and no payment will be made for any taxes levied on employees' wages. The State will pay for any applicable State of California or local sales or use taxes on the services rendered or equipment or parts supplied pursuant to this Contract. California may pay any applicable sales or use tax imposed by another state.

2. STATUTORY AND REGULATORY PROVISIONS

A. This Contract shall be governed and construed in accordance with all applicable statutory and regulatory provisions including, but not limited to:

1) Title XVIII of the Federal Social Security Act

2) Title XIX of the Federal Social Security Act

3) Chapters 7 and 8 (commencing with Section 14000), Part 3, Division 9, Welfare and Institutions Code

4) Division 3, Title 22, California Code of Regulations (CCR)

5) Health and Safety Code Section 1340 et seq.

6) All applicable Federal provisions which regulate the administration of health care programs and budget revisions, as contained in the Code of Federal Regulations (CFR), Title 42, and Title 45, Part 74, Title 42 United States Code, Sections 1395 et seq. and 1396 et seq.

7) Sub-chapter 13 (commencing with Section 6800), Chapter 4, Part 1, Title 17, CCR; and

8) All other applicable laws and regulations.

B. Any provision of this Contract in conflict with the applicable laws and regulations is hereby amended to conform to the provisions of those laws and regulations. Such amendment of the Contract shall be effective on the effective date of the statutes or regulations necessitating it, and shall be binding on the parties even though the amendment may not have been reduced to writing and formally agreed upon and executed by the parties. If, due to amendment in laws of regulations, Contractor is unable or unwilling to comply with the provisions of the amendment(s), State or Contractor may terminate this Contract in accordance with the Termination provision of this Contract.

3. EXAMINATION AND AUDIT

A. Contractor shall allow the State and its related entities, the Comptroller General of the United States, Department of Justice (DOJ), and the Bureau of Medi-Cal Fraud, or their duly authorized representatives, to inspect or otherwise evaluate the quality, appropriateness, and timeliness of services performed under this Contract, and to inspect, evaluate, and audit any and all books, records, and facilities maintained by the Contractor and Subcontractors pertaining to services under this Contract at any time during normal business hours.

B. Contractor shall be subject to the examination and audit of the State Auditor for a period of three (3) years after final payment under this Contract in accordance with Government Code, Section 85467.7. The examination and audit shall be confined to those matters directly connected with the performance of the contract, including, but not limited to, the costs of administering the Contract.

C. Books and records include, but are not limited to, all physical records originated or prepared pursuant to the performance under this Contract, including working papers, reports, financial records, and books of account, Medical Records, prescriptions files, Subcontracts, and any other documentation pertaining to medical and non-medical services for residents of the Home. Upon request, at any time during the term of this Contract, the Contractor shall furnish any record or copy.

4. RESOLUTION OF DISPUTES

A. The Contractor may dispute and appeal a decision or action by the State arising out of the Interpretation or administration of this Contract. A written dispute notice shall be submitted to the Contract Manager within thirty (30) calendar days from the date the Contractor receives notice of the decision or action in dispute.

The Contractor’s dispute notice shall state the following, based on the most accurate information available to the Contractor:

1) That it is a dispute pursuant to this Section.

2) The date, nature, and circumstances of the conduct, which is the subject of dispute.

3) The names, telephone numbers, function, and activity of each contractor, subcontractor, State official, or employee involved in or knowledgeable about the conduct.

4) The identification of any documents and the substance of any oral communications involved in the conduct. Copies of all identified documents shall be attached.

5) The reason why the Contractor is disputing the conduct.

6) The cost impact to the Contractor directly attributable to the alleged conduct, if any.

7) The Contractor’s desired remedy.

B. The State and the Contractor agree to try to resolve all contractual issues by negotiation and mutual agreement at the Contract Manager level. The parties recognize that the implementation of this policy depends on open-mindedness, and the need for both sides to present adequate supporting information on matters in question. The Contract Manager, in a written decision stating the factual basis for the decision, will decide any disputes concerning performance of this Contract. Before issuance of the Contract Manager’s decision, informal discussions between the parties by the individuals who have not participated substantially in the matter in dispute will be considered by the parties in efforts to reach mutual agreement.

C. The Contract Manager will render a decision or request additional substantiating documentation from the

Contractor within thirty (30) days of receipt of the Contractor’s appeal. A copy of the decision will be provided to the Contractor. The decision shall be final and conclusive unless, within thirty (30) days from the date of the decision, the Contractor files a written appeal addressed to the Undersecretary, California Department of Veterans Affairs.

D. The Undersecretary’s decision shall be final and conclusive unless the decision is arbitrary, capricious, grossly erroneous or if any determination of fact is unsupported by substantiating evidence. The Undersecretary’s decision will be in writing and may encompass facts, interpretations of the Contract, and determination or application of law. The Contractor may, prior to the Undersecretary’s decision, present oral or documentary evidence, and arguments in support of the Contractor’s appeal. The decision will either:

1) Find in favor of the Contractor, in which case the Undersecretary may:

a) Countermand the earlier conduct which caused the Contractor to file a dispute; or

b) Reaffirm the conduct and, if there is a cost impact sufficient to constitute a change in obligations pursuant to the payment provisions, direct the State to comply with that Section.

2) Deny the Contractor’s dispute and, where necessary, direct the manner of future performance; or

3) Request additional substantiating documentation in the event the information in the Contractor’s dispute or appeal is inadequate to permit a decision to be made under paragraphs (1) or (2) above, advise the Contractor as to what additional information is required, and establish how that information will be furnished. The Contractor shall have thirty (30) days to respond to the Undersecretary’s request for further information. Upon receipt of this additional requested information, the Undersecretary will have thirty (30) days to respond with a decision. Failure to supply additional information required by the Undersecretary within the time period specified above shall constitute waiver by the Contractor of all claims.

E. Attorney’s fees and costs for any dispute or subsequent trial shall be borne by the respective parties.

Both parties waive trial by jury, and any trial in superior or municipal court shall be by a judge alone. Any litigation arising out of this Contract shall be conducted in a California Court pursuant to California law.

F. Contractor shall continue with the responsibilities under this Contract during any dispute.

5. AGENCY LIABILITY (Applies only to Federally Funded Contracts)

The Contractor warrants by execution of this Contract, that no person or selling agency has been employed or retained to solicit or secure this Contract upon Contract or understanding for a commission, percentage, brokerage, or contingent fee, excepting bona fide employees or bona fide established commercial or selling agencies maintained by the Contractor for the purpose of securing business. For breach or violation of this warranty, the State shall, in addition to other remedies provided by law, have the right to annul this Contract without liability, paying only for the value of the work actually performed, or otherwise recover the full amount of such commission, percentage, brokerage, or contingent fee.

6. POTENTIAL SUBCONTRACTORS

For all Agreements, with the exception of Interagency Agreements and other governmental entities/auxiliaries exempt from bidding, nothing contained in this Contract or otherwise shall create any contractual relation between the State and any subcontractors, and no subcontract shall relieve the Contractor of Contractor’s responsibilities and obligations hereunder. The Contractor agrees to be as fully responsible to the State for the acts and omissions of its subcontractors and of persons either directly or indirectly employed by any of them, as it is for the acts and omissions of persons directly employed by the Contractor.

The Contractor's obligation to pay its subcontractors is an independent obligation from the State’s obligation to make payments to the Contractor. As a result, the State shall have no obligation to pay or enforce the payment of any moneys to any subcontractor.

7. INSURANCE REQUIREMENTS

A. Upon contract award, contractor must furnish to the State an original certificate(s) of insurance stating that the contractor has the following types of coverage, if applicable:

1) Commercial General Liability: Combined Single Limit (CSL) for no less than $1,000,000 per occurrence for bodily injury and property damage. The policy must include coverage for liabilities arising out of premises, operations, independent contractors, products/completed operations, personal & advertising injury, and liability assumed under an insured contract. This insurance shall apply separately to each insured against whom claim is made or suit is brought subject to the contractor’s limit of liability.

2) Professional Liability: (Applies to any contract in which the work is of a professional nature such as, but not limited to, physicians, architects, engineers, accountants, or consultants) Covering any damages caused by an error, omission, or any negligent acts. Limits of not less than $1,000,000 per occurrence and $3,000,000 aggregate.

3) Automobile Liability (Applies to any contract in which the contractor will likely use a vehicle to complete the project or drive a vehicle onto State property): Limits of not less than $1,000,000 per accident. Such insurance shall cover liability arising out of an automobile including owned, hired, and non-owned autos.

a) MCS90 endorsement on the Automobile policy (required whenever contractor will be transporting Hazardous materials i.e. Pest Control and Waste contracts.)

4) Pollution Liability/Environmental Impairment Liability (Applies only to Pollution Contracts – i.e. Pest

Control and Waste Contracts): In addition, the certificate evidencing general liability must include evidence of one of the following if applicable to the service:

a) Pesticide/Herbicide Endorsement, OR

b) An endorsement deleting the general liability pollution exclusion, OR

c) A separate environmental/pollution liability policy with limits not less than $1,000,000 covering bodily injury and property damage from pollution and related clean-up costs incurred arising out of the work or services to be performed under this contract.

5) Workers’ Compensation (Mandatory for all Contractors who have at least one employee): Contractor shall maintain workers’ compensation and employer’s liability coverage for all its employees who will be engaged in the performance of the contract, including special coverage extensions where applicable. Contractor shall furnish a certificate for Workers’ Compensation issued by an insurance carrier licensed to write Workers’ Compensation insurance in the State of California, including the name of the carrier and the date of expiration of insurance, or a Certificate of Consent to Self-Insure issued by the Department of Industrial Relations.

6) Fidelity Bond/Crime Insurance: (Applies only to contracts handling State money or securities – i.e.

Armored Car Service Contracts) Contractor shall maintain Employee Dishonesty and, when applicable, Inside/Outside Money & Securities coverages for state-owned property in the care, custody and control of the Contractor. Coverage limits shall not be less than the amount scheduled in the contract. The policy shall include as Contractor. Coverage limits shall not be less than the amount scheduled in the contract. The policy shall include as loss payee the California Department of Veterans Affairs

7) The certificate(s) of insurance shall be on an ACORD form, or equivalent, and must show

“occurrence” coverage. The certificates of insurance must also contain all of the following provisions:

a) Name and address of the insurance company, policy number, and beginning and ending dates of the policy.

b) Statement that the insurer will not cancel the insured’s coverage without 30 days prior written notice to the State.

c) Statement that the State of California, its officers, agents, employees, and servants are included as additional insured on the policy, but only insofar as the operations under this contract.

8) Contractor agrees that any insurance herein provided shall be in full force and effect at all times during the term of the contract. In the event said insurance coverage expires at any time during the term of this contract, Contractor agrees to provide, at least ten (10) days prior to said expiration date, a new certificate of insurance evidencing insurance coverage as provided for herein for not less than the remainder of the term of the contract, or for a period of not less than one (1) year. In the event contractor fails to keep in effect at all times insurance coverage herein provided, State may, in addition to any other remedies it may have, terminate the contract upon the occurrence of such event, subject to the provisions of the contract.

9) Contractor shall notify the State within five (5) days if any insurance coverage identified in the contract is altered in any way.

8. RIGHT TO TERMINATE

A. The State reserves the right to terminate this Contract subject to thirty (30) days written notice to the Contractor. Contractor may submit a written request to terminate this Contract only if the State should substantially fail to perform its responsibilities as provided herein. However, the Contract can be immediately terminated for cause. The term “for cause” shall mean that the Contractor fails to meet the terms, conditions, and/or responsibilities of the contract. In this instance, the contract termination shall be effective as of the date indicated on the State’s notification to the Contractor.

B. This Contract may be suspended or cancelled without notice, at the option of the Contractor, if the Contractor or State’s premises or equipment are destroyed by fire or other catastrophe, or so substantially damaged that it is impractical to continue service, or in the event the Contractor is unable to render service as a result of any action by any governmental authority.

9. FORCE MAJEURE

Neither party shall be liable to the other for any delay in or failure of performance, nor shall any such delay in or failure of, performance constitute default, if such delay or failure is caused by “Force Majeure.” As used in this section, “Force Majeure” is defined as follows: Acts of war and acts of god such as earthquakes, floods, and other natural disasters such that performance is impossible.

10. EVALUATION OF CONTRACTOR

Performance of the Contractor under this Agreement will be evaluated. The evaluation shall be prepared on Contract/Contractor Evaluation Sheet (STD 4), and maintained in the Agreement file. For consultant agreements, a copy of the evaluation will be sent to the Department of General Services, Office of Legal Services, if it is negative and over $5,000.

11. SB/DVBE PARTICIPATION

In accordance with requirements set forth by the State, the CalVet shall enforce all laws, rules, and regulations pertaining to this program. It is the Contractors responsibility to provide CalVet with all required documents as outlined in this agreement. The CalVet reserves the right to contact each SB and DVBE identified by the Contractor to verify compliance. Failure to meet SB/DVBE requirements under Exhibit B, and Exhibit C (GTC 04/2017), paragraphs 19.a and 19.b. may deem the Contractor to be non-responsible and rejected from future bid and contract opportunities with the CalVet.

12. LICENSES AND PERMITS

The Contractor shall be an individual or firm licensed to do business in California and shall obtain at his/her expense all license(s) and permit(s) required by law for accomplishing any work required in connection with this contract.

If you are a Contractor located within the State of California, a business license from the city/county in which you are headquartered is necessary; however, if you are a corporation, a copy of your incorporation documents/letter from the Secretary of State’s Office can be submitted. If you are a Contractor outside the State of California, you will need to submit to the California Department of Veterans Affairs a copy of your business license or incorporation papers for your respective State showing that your company is in good standing in that state.

In the event any license(s) and/or permit(s) expire at any time during the term of this contract, Contractor agrees to provide agency a copy of the renewed license(s) and/or permit(s) within 30 days following the expiration date. In the event the Contractor fails to keep in effect at all times all required license(s) and permit(s), the State may, in addition to any other remedies it may have, terminate this contract upon occurrence of such event.

13. CONSULTANT – STAFF EXPENSES

The Contractor represents that it has or shall secure at its own expense, all staff required to perform the services described in this Agreement. Such personnel shall not be employees of or have any contractual relationship with any governmental entity.

14. HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT (HIPAA) STANDARDS FOR

PRIVACY OF INDIVIDUALLY IDENTIFIABLE HEALTH INFORMATION

For the purpose of this contract, contractor shall comply with the federal Health Insurance Portability and Accountability Act (HIPAA), as well as State and Federal requirements for privacy protection. The definitions and obligations required by the HIPAA Standards for Privacy of Individually Identified Health Information (U.S.C. 1320d et seq.), and implementing regulations including but not limited to 45 Code of Federal

Regulations parts 142, 160, 162, and 164, hereinafter referred to as the Privacy Rule, remain enforce and applicable for access to protected health information, including electronic protected health information.

15. Executive Order N-6-22 – Russia Sanctions

On March 4, 2022, Governor Gavin Newsom issued Executive Order N-6-22 (the EO) regarding Economic Sanctions against Russia and Russian entities and individuals. “Economic Sanctions” refers to sanctions imposed by the U.S. government in response to Russia’s actions in Ukraine, as well as any sanctions imposed under state law. The EO directs state agencies to terminate contracts with, and to refrain from entering any new contracts with, individuals or entities that are determined to be a target of Economic Sanctions.

Accordingly, should the State determine Contractor is a target of Economic Sanctions or is conducting prohibited transactions with sanctioned individuals or entities, that shall be grounds for termination of this agreement. The State shall provide Contractor advance written notice of such termination, allowing Contractor at least 30 calendar days to provide a written response. Termination shall be at the sole discretion of the State.

16. LEGAL CONTRACTS (applies only to Legal Services Contracts)

In accordance with (Public Contract Code Section (10353.5) The Contractor shall:

A. Agree to adhere to legal cost and billing guidelines designated by the State.

B. Adhere to litigation plans designated by the state agency.

C. Adhere to case phasing of activities designated by the state agency.

D. Submit and adhere to legal budgets as designated by the state agency.

E. Maintain legal malpractice insurance in an amount not less than the amount designated by the state agency.

F. Submit to legal bill audits and law firm audits if requested by the state agency. The audits may be conducted by employees and designees of the state agency or by any legal cost control providers retained by the state agency for purpose.

G. Submit to a legal cost and utilization review, as determined by the state agency.

17. Generative Artificial Intelligence (GenAI) Use and Reporting

“The State of California seeks to realize the potential benefits of GenAI, through the development and deployment of GenAI tools, while balancing the risks of these new technologies.

During the term of the contract, Contractor must notify the State in writing if their services or any work under this contract includes, or makes available, any previously unreported GenAI technology, including GenAI from third parties or subcontractors. Contractor shall immediately complete the GenAI Reporting and Factsheet (STD 1000) to notify the State of any new or previously unreported GenAI technology. At the direction of the State, Contractor shall discontinue the use of any new or previously undisclosed GenAI technology that materially impacts functionality, risk or contract performance, until use of such GenAI technology has been approved by the State.

Failure to disclose GenAI use to the State and submit the GenAI Reporting and Factsheet (STD 1000) may be considered a breach of the contract by the State at its sole discretion and the State may consider such failure to disclose GenAI and/or failure to submit the GenAI Reporting and Factsheet (STD 1000) as grounds for the immediate termination of the contract. The State is entitled to seek any and all relief it may be entitled to as a result of such non-disclosure.

The State reserves the right to amend the contract, without additional cost, to incorporate GenAI Special Provisions into the contract at its sole discretion and/or terminate any contract that presents an unacceptable level of risk to the State.