4-ATT B SOW.docx

Scope of Work Attachment B DL26-8: Road Salt

PURPOSE

The purpose of this State of Utah Cooperative Contract will be for the benefit and use of all Eligible Users, which includes the State of Utah’s government departments, institutions, agencies, political subdivisions (e.g., colleges, school districts, counties, cities, etc.), and, as applicable, nonprofit organizations, agencies of the federal government, or any other entity authorized by the laws of the State of Utah to participate in State Cooperative Contracts. This contract does not guarantee any sales.

ANTICIPATED PRODUCTS & SERVICES, & BACKGROUND

It is anticipated that the awarded contractors will provide bulk road salt.

Although there is no guarantee of usage for the resulting contracts, this portfolio historically receives two to four million dollars in usage annually. Notable users include cities, counties, and school districts in the State of Utah.

SCOPE OF WORK

All salt categories must be on the Clear Roads Qualified Product List found at https://clearroads.org/qualified-product-list/ and as Attachment F in the attachments section. If your product is not on this list, you must take the necessary steps to become qualified for the list as soon as practicable, but no more than 3 months following the award of a contract.

Category 8B: Insoluble Material less than 10%, and Moisture less than 5%.

Category 4B: Corrosion Inhibited Solid Sodium Chloride – Modified Gradation (Corrosion Percent Effectiveness 31% to 85%) Category 4C: Corrosion Inhibited Solid Sodium Chloride – Standard Gradation (Corrosion Percent Effectiveness 31% to 85%) Category 8A-R: Standard Gradation, Road Salt, Insoluble Material less than 10%, and Moisture less than 0.5%.

Gradation: Meets the gradation located in the Clear Roads Guidance Document and Qualified Products List and/or the below gradation:

Table 1 Salt Gradation

Chemical Constituents:

Do not supply products containing constituents exceeding total concentration limits listed in table 2. Test according to methodology listed below. Measure base product concentration levels prior to anti-freeze or chemical adulterant addition all per the Clear Roads Guidance document.

Chemical contaminant limit stated as parts per million (ppm) as listed in the Clear Roads testing standards.

Table 2 Allowable Chemical Contaminants

Test methods:

Test methods to be conducted in accordance with the standards set forth in the Clear Roads Guidance Document. (Attachment G) Submittals Submitted with product delivery, for each shipment, supply bill of lading showing:

Type and grade of material Destination Consignee's name Date of Shipment Truck identification Net weight in English units Bill of Lading number Manufacturer

Quality Assurance Quality Assurance Testing, and Price Adjustments. For quality assurance purposes and for price adjustment purposes, the following steps may be used by Eligible Users to determine out of compliance product and penalties:

Upon delivery, station supervisor will inspect delivery for obvious out of compliance issues (e.g..; puddling or running water). If the product is in question, the station supervisor will contact vendor to cure the problem prior to next delivery.

Second occurrence of obvious out of compliance issues will result in third party testing at vendor's site, which may result in price penalties if the test results show non-compliance.

Third occurrence of obvious out-of-compliance issues will result in a cure or quit notification letter and possible termination of the entire contract.

For the purpose of monitoring non-compliance, each delivery within a 7 day window that is out of compliance will count as one occurrence.

Testing will be performed by an independent third party laboratory. If the testing shows that the product was out of compliance, the cost of testing will be billed back to the supplier. If the testing shows that the product was in compliance, the State will absorb the cost of testing.

The third-party laboratory will test the Supplier's product. Tests may be performed for any or all of: Gradation, Moisture Content, or any other material property required by the specification suspected to be out of compliance.

If any properties are found to not meet the requirements of the contract, the State may assess a payment penalty that will remain in effect until the date of the next test for those properties.

Do not supply shipments contaminated with other materials; this may result in the rejection of the shipment, or a price reduction.

Testing Process If deemed necessary or after a second non-compliance event, testing will be scheduled by the State with an independent third-party Testing Contractor.

The Testing Contractor takes samples taken at Vendor's production facility (i.e. same location as for FOB purchases) and conducts tests on those samples.

Tests to be conducted may be any or all of:

(a) Gradation

(b) Moisture Content

(c) Tests for any other material properties required by the contract, as deemed necessary.

The Testing Contractor will send the results to the Eligible User requesting the test, as well as the vendor.

The State entity calculates any price reduction based on the test results. If imposed, price penalties will be effective until the vendor can prove the product in question is in compliance.

Vendor may request, in writing, subsequent sampling and testing of any or all items that were reported by the independent test. Vendor will bear full cost of such subsequent tests.

The State will not automatically resample or retest product at any prescribed interval or frequency.

Price Adjustments Price Adjustment, Gradation: Downward 5% price adjustment assessed for materials outside the specified gradation.

Price Adjustment, Moisture Content: 1 % downward price adjustment assessed for each full 1% moisture content over 4%. Round to the nearest full percentage. Example:

(d) 2.1% moisture delivered would not be reduced.

(e) 4.3% moisture delivered would not be reduced.

(f) 4.8% moisture delivered would be reduced by 1%.

The Net Price Reduction will be applied per ton to all product delivered until a subsequent test shows a different result.

Price Adjustment, General: products failing to meet any other specification requirements with an assessed 5% downward price adjustment. Price adjustments will be computed based on the largest adjustment computed. Price adjustments for gradation, moisture content, and other material properties will not be cumulatively summed; the largest value will be used.

EXAMPLE:

A delivery lot meets the specification requirements for gradation and moisture content, but contains lead in excess of the allowable value indicated in the specification. The Net Price Reduction would be 5%.

Price Adjustment, Performance: Downward price adjustment in dollars per ton for supplying material failing to meet vendor-specified melting power, ice penetration, or corrosiveness values is computed by the following formulae:

Equation 1:

For melting power performance below vendor-specified value, Where Mproposed > Mactual Price Reduction (Rmeit), percentage = 100%( (Mproposed-Mactua1)/Mproposed)] Equation 2:

For ice penetration performance below vendor-specified value, Where lproposed > lactual Price Reduction (Rice), percentage= 100% [(lproposed-lactua1)/lproposed)] Equation 3 For corrosiveness performance below vendor-specified value, Where Cproposed > Cactual Price Reduction (Rcorr) , percentage = 100% [(Cproposed-Cactua1)/Cproposed)] In each case, if the delivered product meets or exceeds the vendor-specified performance value, then the price reduction for that performance parameter is $0.00.

For the Equations above, terms are defined as:

Mproposed = MELTING POWER PROPOSED: the total volume melt of vendor's product using SHRP H-205.1 at 5°F after one hour specified by the vendor at the time of bidding.

Mactual = MELTING POWER ACTUAL: the actual total volume melt of vendor's product using SHRP H-205.1 at 5°F after one hour.

Iproposed = ICE PENETRATION PROPOSED: ice penetration of vendor's product in one hour using SHRP 205.3 at 20°F as specified by the vendor at the time of bidding.

lactual = ICE PENETRATION ACTUAL: the actual ice penetration of vendor's product in one hour using SHRP 205.3 at 20°F.

Cproposed = CORROSIVENESS INDEX PROPOSED: Corrosiveness Index, as defined herein, of the vendor's product, as specified by the vendor at the time of bidding.

Cactual = CORROSIVENESS INDEX ACTUAL: The actual Corrosiveness Index, as defined herein, of vendor's product.

R = Percent reduction in price for not meeting vendor's proposed value.

The Net Price Reduction will be computed based on the largest adjustment computed. Price adjustments for gradation, moisture content, melting power (Rmelt), ice penetration (Rice), and corrosion (Rcorr) will not be cumulatively summed. Instead, the largest value of the five price adjustment components will be used, with a maximum total price adjustment of 20%.

Example:

The Net Price Reduction will be applied per ton to all product delivered until the next test showing a different result.

Price Adjustment, General: the State may accept products failing to meet any other specification requirements with an assessed 5% downward price adjustment, in addition to any price adjustment imposed for gradation, moisture content, melting power, ice penetration, or corrosiveness. However, in no case will the total price adjustment exceed 20%.

Rejection Any product may be rejected if it fails to conform to the specifications. If the product fails to meet specifications the State may, at its option, impose a price adjustment as described in paragraph 8, allow the contractor to replace the defective product, or cancel the contract. In no instance will the State pay any cost associated with the remedy for the defective product. The return shipment of refused product will be at the Contractor's expense at no additional cost to the State.

Delivery Notify supervisor by telephone twenty-four hours prior to delivery. Unload material where directed. Butt loads against each other in such a manner as to occupy as small a total stockpile area as possible.

End-users may pick up the salt by use of State/local government trucks or, by the use of a third party. Pick up schedules will have to be coordinated with the vendor.

Delivery Methods:

Delivery Method One: Deliver using end-dump trucks only. No Trailers.

Delivery Method Two: Deliver using end-dump trucks, end-dump trucks with pups, or end-dump trailers.

Delivery Method Three: Deliver using end-dumps, end-dumps with pups, end dump trailers, walking trailers, belt dump trailers, or side dumps.

Delivery Method Four: Deliver using end-dumps, end-dumps with pups, end dump trailers, walking trailers, belt dump trailers, side dumps, or belly dumps.

Delivery Method Five: Load state trucks F.0.B. at supplier's production facility, stockpile, railhead, or other designated location. Supplier specifies point of delivery in writing if other than normal place of business.

Stockpiles: The method for stockpiling sodium chloride will be one of the following:

Method I: Stockpile by butting loads - Build stockpiles at designated locations. Butt loads one against the other in such a manner as to occupy as small a total stockpile area as possible. If equipment to keep the stockpile pushed up to cover an area no larger than a stockpile area produced by an end-dump. If Engineer is not satisfied with the stockpiling, supplier reshapes the stockpile to an acceptable configuration. If purchasing entity personnel reshape the stockpile, the cost of reshaping is deducted from the contract.

Method 2: Stockpile by supplier furnished loader - Build stockpiles at designated locations. Supplier places each load and load is "bucked up" using a supplier-furnished loader and operator. Stockpiles occupy as little space as possible and are bucked up to a uniform 10-foot height. If Engineer is not satisfied with the stockpiling, supplier reshapes the stockpile to an acceptable configuration. If purchasing entity personnel reshape stockpile, reshaping cost is deducted from the contract.

Method 3: Stockpile by purchasing entity shaping pile- Build stockpile at designated locations. Purchasing entity shapes stockpile.

Complete delivery of each order according to the following schedule for orders placed on or after October 31st:

Order size 400 tons or less: Complete delivery within two calendar days of order placement. Example: Order placed on December 1 is to be delivered by December 3.

Order size 401 tons to 1000 tons: Begin delivery within two calendar days. Complete Delivery within four calendar days of order placement.

Example: Order placed on December 1st Delivery to begin by December 3rd and completed by December 5th.

Order size 1001 tons or more: Begin delivery within two calendar days of order placement. Continue delivery at a rate of not less than 400 tons per day until complete. Example: Order placed on December. Delivery to begin by December 3 and to continue at a rate of 400 tons or more per day until complete.

Complete delivery of each order according to the following schedule for orders placed prior to September 15th:

For any order placed prior to September 15, the Supplier has up to 14 days to complete delivery. Example: Order placed on August 1 Delivery should be completed by August 15.

Ordering and Delivery Process:

Purchasing entity places order.

Minimum order size is one (1) truckload.

Vendor maintains order-taking capability within the State of Utah.

Vendor has twenty-four hour per day order taking. Vendor confirms order by email to purchasing entity placing order within eight (8) hours.

Vendor's confirmation contains:

Confirmation of total order quantity and destination Estimated first load dispatch time and date Type of delivery trucks (Dump truck, Dump truck with pup, etc.)

Scheduled order completion date and time Delivery coordinator name and Utah telephone number Order Details Orders placed before noon Mountain Time are considered to be placed the date of the order.

Orders placed after noon Mountain Time are considered placed 8:00 AM the next calendar day.

Delivery is deemed to start when the first load is dispatched AND the station supervisor is notified.

Delivery is complete when the last load is dumped at the delivery location.

Vendor calls station one hour or more prior to delivery.

Vendor confirms end of delivery with email.

PRICING INFORMATION

Pricing for all products and services, including any fees, will be detailed in Attachment C. Any products, services, or fees not listed cannot be charged to an Eligible User.

All pricing and rates are guaranteed for at least 12 months and are considered maximum pricing. After the price guarantee period is over, the Contractor may submit a request to amend the contract pricing if the following conditions are met:

The price guarantee period has been met.

The request is made at least 30 days in advance.

The price adjustment must not produce a higher profit margin than the original contract pricing The request includes a thorough market analysis (e.g. data from the Producer Price Index) or documentation with objective data from the Contractor’s suppliers of materials or products pricing adjustments.

New products or services with associated pricing may be added to the contract upon approval of the Division of Purchasing Contract Manager. Additions must be incorporated via amendment.