A12_2024-05_Model_Contract_Exh_B_-_Budget_and_Payment.docx

MODEL CONTRACT IFB Number 2024-05 Page 34 of 37 State Lands Commission | [Contractor Name] Platform Holly Caretaker Services

EXHIBIT B

BUDGET DETAIL AND PAYMENT PROVISIONS

1) Invoicing – Contractor shall submit progress billings to the State on a monthly basis in arrears. Each invoice shall be accompanied by forms provided by the State, providing sufficient scope and detail to define the actual work performed and specific milestones completed, including a description of the activities of the Contractor and subcontractors; a description of the problems encountered; the status of various tasks underway and up-to-date planning and milestone schedule; a statement of tasks and milestones completed; and a statement of funds budgeted and expended to date for each task including identification of personnel used with time, compensation, and expenses paid or payable to each worker by the Contractor including expenses paid to subcontractors if any, material purchased and any other costs incurred during the payment period. Comment by Shrestha, Dev@SLC: Bidder to update the header of this Model Contract Exhibit B with the Bidder's business name.

a) Billing rates for services rendered shall not exceed those as set forth in the Exhibit B Cost Worksheets.

i) The Contractor shall not receive payment for work performed prior to approval of the Contract and before receipt of notice to proceed by the State Contract Officer.

ii) Full compensation for providing all the labor, materials, tools, equipment, and incidentals as delineated in the scope of work will be considered as included in the rates set forth in this Exhibit B for the various related items of work and no separate payment shall be made.

b) Invoices shall include:

i) The word “Invoice”

ii) A unique identifier such as an Invoice number

iii) The Agreement Number (TBD)

iv) Financial tracking according to this Exhibit B, Sections 5, 6, and 8

v) Supporting documentation according to this Exhibit B, Section 1

vi) Project Coordinator approval emails if applicable

c) Electronic delivery of invoices or supporting documentation is now accepted. Invoices and supporting documents can be submitted via email or physical mail:

i) Email to: CSLC.AccountsPayable@slc.ca.gov

ii) State Lands Commission 100 Howe Avenue, Suite-100 South Sacramento, CA 95825-8202 Attn: Accounting

d) Direct all inquiries regarding invoice submittal and payments to: CSLC.AccountsPayable@slc.ca.gov.

2) Prevailing Wage – In compliance with Labor Code Section 1775, the Contractor shall pay prevailing wage rates recognized in the collective bargaining agreement applicable in the County in which the work is to be performed and applicable to the particular craft, classification, or type of worker employed on the project.

a) Contractor shall forfeit to the State a penalty of $50 for each calendar day, or portion thereof, for each worker paid by the Contractor or subcontractor less than the prevailing wage so stipulated.

b) Contractor agrees to pay to each worker the difference between the actual amounts paid for each calendar day or portion thereof, and the stipulated prevailing wage rate. https://www.dir.ca.gov/OPRL/DPreWageDetermination.htm

3) Financial Reporting

a) Firm invoicing shall track the following but not limited to:

i) Billing and hours by Task – per invoice and cumulative.

ii) Retention by invoice and cumulative. See Section Withhold 1 below.

iii) Progress towards one percent (1.0%) DVBE participation goal by invoice and cumulative.

iv) Progress towards twenty-five percent (25%) SB suggested participation by invoice and cumulative.

b) Progress Payments - In lieu of payment in arrears (PCC § 10346, California Constitution, Article XVI, section 3 and section 6, State Contracting Manual Volume 1, 1901.2 Advance Payments) Progress Payments are permitted for work performed under this Agreement. Payments of any sums under this section shall not constitute acceptance by the State of any work performed and shall not be a waiver of any claim against the Firm.

i) Withhold 1 – Per Invoice - Retention In accordance with the requirements set forth in the State Contracting Manual, Section 7.33.B, the State shall withhold, from each invoiced payment, an amount equal to ten percent (10%) of that payment. Such retained amount shall be held by the State and only released to the Firm upon the State’s staff determination that the Firm has satisfactorily completed all of the required services under this Agreement.

c) Withhold 2 – Close-out Reporting If applicable, Firm shall submit a complete and accurate Prime Firm’s Certification – DVBE Subcontracting Report (Std. 817) upon Agreement completion.

i) The Commission shall withhold $10,000, or full payment if less than $10,000, from a prime firm’s final payment pending receipt of a complete and accurate Prime Firm’s Certification. If the Firm does not fully comply with this provision within sixty (60) calendar days of receiving a notice to cure by the Commission, the withheld amount will be permanently deducted. The Firm must maintain records supporting the information submitted on the Prime Firm’s Certification and supporting that all payments to the DVBE subcontractor(s) were made. For more information see Department of General Services Broadcast Bulletin P-05-21.

d) A person or entity that knowingly provides false information shall be subject to a civil penalty for each violation. (Military & Veterans Code (M&VC) section 999.5(d)).

4) Contingencies | Subcontractors | Special Services - When subcontractors or special services are required in the performance of the work and have been approved in writing by the Project Representative, the Contractor will be compensated for invoiced costs of the services plus markup cost not to exceed five percent (5%). Said markup shall reimburse the Contractor for profit and additional administrative costs, and no other additional payment will be made by reason of the performance of the work by a subcontractor.

a) Said markup shall not be applied to equipment and labor quoted in Exhibit B Cost Worksheets, Exhibit B, Tables B-1 and B-2.

b) Subcontractor/Special Services invoices shall be provided with delivery of the Contractor Services invoices.

5) Cost Worksheet Table B-1, Task Rates

(4 hours)

$XX.XX

(8 hours)

$XX.XX

6) Cost Worksheet Table B-2, Hourly Wage Determinations (Bidder to edit the Red Text with their bid) Comment by Shrestha, Dev@SLC: Bidder to fill out the Cost Worksheet B-2 and provide wage determinations for this project

a) A list of the hourly fee rates for the specific classes of employees and/or services that may be used for this project. A detailed rate sheet for all personnel classifications is proposed. Cost Worksheet B-2 is not a scored item.

(2x) Hol.

(2x or 3x) Determination

7) Repairs – All repairs to state-owned facilities and equipment shall be performed strictly on a work-order basis. No repair work shall commence without a duly authorized work order issued by the Commission.

8) Task Approval Process

a) The designated Commission representative shall maintain control and direction at all times over the scope of work being performed by the Contractor under this Contract. The State reserves the right to modify, reject, cancel, or stop any and all plans, schedules, or work in progress.

b) In such event, the Contractor agrees to use all reasonable efforts to mitigate expenses and obligations under this Contract and all plans, schedules, or work in progress.

1) Deliverable Acceptance Criteria

a) Each concluded Work Order must be submitted to the Commission for review and approval or rejection. Payment for all tasks performed under this Agreement will be based on deliverables. It will be the Commission’s sole determination as to whether any tasks have been successfully completed and are acceptable.

b) Throughout the Agreement, the Commission will review and validate services performed. In addition, the PC, per the final executed Agreement will verify and approve the Contractor’s invoices. Signed acceptance is required from the Commission representative to approve an invoice for payment.

c) Deliverable acceptance criteria consist of the following:

i) Deliverable-specific work was completed as specified and the final deliverable product or service was rendered.

ii) Plans, schedules, designs, documentation, digital files, photographs and reports (deliverables) were completed as specified and approved.

iii) All deliverable documentation and artifact gathering have been completed.

iv) All deliverables are in a format useful to the Commission.

d) If a deliverable is not accepted, the Commission will provide the reason, in writing, within ten (10) business days of receipt of the deliverable.

9) Materials – Cost of materials will be the cost to the Contractor. Only materials furnished by the Contractor and required for the performance of work will be considered for payment. Commission staff reserves the right to furnish such materials as it deems advisable, and the Contractor shall have no claim for costs and markup on such materials.

10) Wet Rates – Rates paid for equipment owned shall include the cost of fuel, oil, lubrication, supplies, small tools, necessary attachments, repairs and maintenance of any kind, depreciation, storage, insurance, and all incidentals.

11) Rental Equipment (if applicable)

a) Payment for rental equipment at invoice rates may be allowed by Project Coordinator after a review of pertinent information provided by the Contractor. This information includes a minimum of three (3) quotes from rental firms.

b) A separate allowance may be permitted for fuel and lube of rental equipment if those costs are not included in the rental agreement.

12) Small Equipment and Tools (if applicable) – Individual pieces of equipment or tools, such as disposable items or items that may be used on other projects, and having a replacement value of less than $500, whether or not consumed by use, shall be considered to be small tools and not eligible for compensation under this Agreement.

13) Additional Funding - If mutually agreed by the Commission and the Contractor, this contract may be amended to include additional funding at the same rates provided in the Bidder’s original proposal.

14) Change Order

a) In the event that additional work must be performed, which was wholly unanticipated and was not identified in either the State’s solicitation document or the Contractor’s proposal submitted in response hereto, the Contractor shall submit the intended change in required work and the proposed cost supported by full and complete documentation as a Change Order.

b) Each Change Order shall identify the following:

i) The purpose, objective, or goals to be undertaken by the Contractor, in a detailed statement,

ii) The tasks necessary to accomplish the goals,

iii) The deliverables, including all relevant documentation or modification to existing documentation,

iv) A time schedule for the provision of these deliverables,

v) The completion criteria for the work to be performed,

vi) The Contractor’s personnel to be assigned,

vii) The job classification or approximate skill level of such personnel,

viii) The quantity(ies) of labor-hours by job classification or skill level, and of labor-hours by job classification or skill level, and;

ix) The quantity(ies) of deliverables

c) The bill rates in the Change Order submittal shall be consistent with that of the cost worksheets in Exhibit B.

d) Contract Bonds - Upon notice of intent to award the Contractor shall furnish a payment bond and a performance bond. Payment and performance bonds shall each be in a sum equal to the amount of the Contract value.

i) Payment Bond - The Payment bond shall secure the payment of the claims of laborers, mechanics, or material-persons employed for work under this Contract.

(1) Payment bond must be issued by a company authorized by the California Insurance Commissioners to transact surety business in California.

(2) Two copies of the bond shall be submitted on State Form STD 807.

ii) Performance Bond – The Performance Bond shall guarantee the faithful performance of this Contract.

(1) A notarized statement from the bonding company your organization proposes to use, stating that the surety shall unconditionally guarantee the Contractor’s performance in all respects of the terms, conditions, and provisions of this bid and the resulting Contract in the sum equal to the amount of the contract.

(2) This bond must guarantee Contractor’s compliance with the terms of this Contract.

(3) Upon notice of intent to award the contract, Contractor shall furnish two copies of the performance bond made payable to the “California State Lands Commission.”

(4) Performance bond must be issued by a company authorized by the California Insurance Commissioners to transact surety business in California.

15) Payment of fees and fines - The Contractor shall be responsible for payment of fees associated with environmental permits, applications, and/or notices obtained by the Contractor. All costs associated with environmental permits, applications, and/or notices obtained by the Contractor shall be included in Cost Worksheet B1 billing rates. The Contractor shall be responsible for:

a) Payment of all fines/fees for violation or non-compliance with permit requirements Federal, State, Regional, and local laws and regulations.

b) Payment of any civil fines or penalties that may be assessed by any Federal, State, or local regulatory agency as a result of the Contractor's or any subcontractor's violation of any applicable Federal, State, or local environmental law or regulation, or damage of any kind or contamination to State property.

16) Replacement of Personnel

a) BY CONTRACTOR - This Contract is for services to be provided by specific persons listed and described in Exhibit A, Attachment 1 Personnel Experience Narrative and Resumes. The State enters into this Contract relying on the skills and qualifications of those persons identified for them by the Contractor. Contractor acknowledges that in the event any or all of these individuals are removed, replaced, or reassigned by the Contractor, such removal, replacement, or reassignment may result in serious harm to the State. Contractor agrees not to remove, replace, or reassign such individuals without the written approval of the State Project Coordinator. Such approval shall not be unreasonably withheld or delayed provided that any replacement or additional personnel proposed during the life of this Contract meet or exceed the skill level and experience that the Contractor proposed. The State Project Coordinator shall have the final decision and has the authority as to whether substitute personnel meet the qualifications and whether to approve the substitution of the Contractor team members. Contractor shall provide to the State’s Project Coordinator the name and resume of such person and the work to be performed, along with a justification of the necessity for the substitution or additional and the rate to be charged.

b) BY STATE - If State finds the performance of any of Contractor’s employees or subcontractors to be unsatisfactory, and so notifies the Contractor in writing, the Contractor shall have a reasonable time, not to exceed 30 days, to remedy that person’s unsatisfactory performance or replace said employee or subcontractor. This provision does not in any way require, endorse, or approve (expressed or implied) the termination of employment by the Contractor of any employee removed, replaced, or reassigned under the terms of this paragraph.

17) No Additional Work – All work is subject to amendment requirements as specified in Exhibit A, Section 9. No additional work shall be performed by the Contractor unless authorized by the PC and unless all requirements are met.

18) Reimbursement Clause – If mileage, lodging, or meals are requested for reimbursement, costs shall be according to the California Department of Human Resources (CalHR) current state rates. No travel outside the State of California by Contractor shall be reimbursed unless there is prior written authorization obtained from the Commission.

19) Reimbursement Rates for Travel - No travel shall be ordered or performed under this Contract.

20) Settlement of Disputes - In the event of a dispute, Contractor shall file a notice of dispute with the California State Lands Commission, Executive Officer, or her designee within ten (10) days of discovery of the problem. Within ten (10) days, the Executive Officer or her designee shall meet with the Contractor and project coordinator for the purposes of resolving the dispute. The decision of the Executive Officer or her designee shall be final. Notwithstanding the foregoing, the failure by Contractor to notify the Executive Officer or her designee within ten (10) days of discovery of the problem shall be deemed a waiver by Contractor of the dispute unless such delay is materially detrimental to the State.

21) Budget Contingency Clause

a) It is mutually agreed that, if the Budget Act of the current year and/or any subsequent years covered under this Contract does not appropriate sufficient funds for this Contract, the State may cancel this Contract and it shall be of no further force and effect provided, however, that the State’s payment obligation to the extent of work already performed by the Contractor shall survive any such cancellation. In this event, the State shall have no liability to pay any funds whatsoever to Contractor or to furnish any other considerations under this Contract for work not yet performed by Contractor and Contractor shall not be obligated to perform any provisions of this Contract.

b) In the alternative, the State shall have the right to amend this Contract to reflect the reduced funds available for it. In such event, State shall meet with Contractor to negotiate a reduced scope of work. If a mutually agreed upon amendment cannot be reached by the parties, either party may cancel this Contract and it shall be of no further force and effect; provided, however, that the State’s payment obligation to the extent of work already performed by the Contractor shall survive any such cancellation.

22) Taxes - Payments to be paid to the Contractor, as specified herein, shall include all taxes of any description, federal, state, and municipal, assessed against Contractor by reason of this contract.

23) Prompt Payment - The Commission shall pay properly submitted, undisputed invoices, refunds, or other undisputed payments due to individuals within 45 days of receipt or notification thereof, or automatically calculate and pay the appropriate late payment penalties as specified Government Code 927.