Addendum_2.pdf

TO: All Proposers FROM: Coraly Vazquez, CPPB, FCCM

DATE: 02/08/2019

RE: AR #19-023-CV, OVERHEAD AND UNDERGROUND MATERIALS

ADDENDUM #2

Bidders are hereby notified that this addendum shall be made a part of the above-named Invitation for Bid and agreement documents. The items listed below are issued to add, modify, and/or clarify the solicitation document and agreement documents. The items shall have the same force and effect as the original bidding and agreement documents, and cost involved shall be included in the bid pricing. Bids, to be submitted, shall confirm with the addition and revision listed herein. Return this sheet with your bid response.

I. QUESTIONS AND ANSWERS.

Q1. We are trying to clarify how KUA will evaluate this portion as it is impossible to forecast product pricing 13-60 months out with any level of confidence. Will the cost portion of this be based on year one cost as it relates to the low total bid?

A1. No. The evaluation will be based on Years 1-5.

Q2. There are (10) lots that this bid is broken into. Is it KUA's intention to award this business to distributors by lot or on the total business – all items combined? Example Lot #1 (Bolts/Screws/Washers) has (37) items. Will the total low cost on that lot be awarded to a distributor? Same going down Lot 2-10.

A2. The award will be based on Section 1, #44. However, in accordance with section 3 of the solicitation document, KUA reserves the right to make award to one bidder, to split the award between bidders, to not award some or all items, or designate a primary and secondary awardee depending on the best interest of KUA. KUA may accept any item or group of items on any bid unless the offeror qualifies his bid by specific limitations. The evaluation will be based on a fix low pricing and the intent is to award based on lots per contractors.

Q3. Is this going to be awarded as low cost per item, low cost by total bid, or low cost per lot?

A3. Please see response on A2. of addendum #2.

Q4. Section 37: Period of offer Validity “Prices quoted in the bid must remain open for a period of ninety (90) days from the date of the bid opening.”

Does this mean that the year blanket should be valid until 03/31/2020?

A4. The contract fix pricing shall be firm annually from award date.

Q5. For what period exactly are the prices required to be firm? Are you expecting firm prices for multiple years?

A5. Yes.

II. DELETE & REPLACE.

DELETE SECTION 15. Extension Option and Escalation/De-Escalation: and replace with the following:

15.1 KUA will enter into an agreement with contractor for a three (3) year term to begin upon approval and execution by KUA; with the opportunity for additional two (2) one (1) year renewal periods when in the best interest of KUA. The decision to renew or extend shall be at the discretion of KUA. By furnishing any services in response to a P.O. and/or giving any other indication of acceptance or renewal by P.O., the contractor agrees to be bound by all the terms and conditions set forth herein. Every P.O. issued under this above numbered AR will be considered an enforceable addition to the Contract Documents.

15.2 In the event that KUA chooses not to renew the Contract, KUA also reserves the right to not invite contractor to submit a bid for the next period.

15.3 Bid prices shall remain firm for a period set forth herein. If a substantial increase occurred in the manufacturer's production cost the successful Contractor can submit a written request for price increase. This shall not result in any way in an increase of the vendor's margin of profit.

15.4 All written requests for price increases must include supporting documentation from the manufacturer as to the nature of the increase and shall be submitted to the Procurement Services Division. Approval of each request shall be by written confirmation from the Procurement Services Division within 30 days of initial submittal. Should KUA consider said increases unwarranted or unreasonable, KUA reserves the right to terminate the contract with the vendor, select a second supplier and/or re-advertise.

KUA also reserves the right to not invite said contractor to submit a bid.

15.5 Any price declines at the manufacturer's level shall be reflected in an immediate reduction of the bid prices and the vendor shall notify the Manager of Accounting and Procurement Services of said decline.

Bidder(s) must acknowledge receipt of this amendment by signing this form below and returning it with your bid response.

Acknowledgement is hereby made of Addendum # 2 to AR #19-023-CV, OVERHEAD AND UNDERGROUND MATERIALS.

Bidder Signature Date

Bidder Printed Name Company Name

This addendum is issued to provide additional information, clarification, corrections, additions, deletions and/or to answers questions concerning the above referenced solicitation. All information provided in this addendum is incorporated into the solicitation document as if set forth therein. All other parts of the solicitation have been maintained as originally distributed. This addendum supersedes any verbal or other instructions given to any proposer qualified to respond pursuant to the requirements set forth in the solicitation document.