Appendix B - Specifications.docx

APPENDIX B

SPECIFICATIONS and REQUIREMENTS

It is the intent of this contract to:

Provide a means of disposing of all salmon and steelhead carcasses generated from returning adult fish at WDFW hatchery facilities.

The contractor must take all fish and/or eggs offered in any category or at any location. Not all surplus fish and/or eggs will be offered to the Bidder. Surplus fish and/or eggs may be offered to local food banks, treaty tribes, used for nutrient enhancement, or diverted to other users or uses at the Department’s discretion.

Provide a funding source for the Regional Fisheries Enhancement Groups through the sale of salmon carcasses and eggs at state funded WDFW hatchery facilities.

All “good” and “low” quality fish from state-funded hatcheries will be sold to contractor at the bid rate on an output basis. Contractor must take and pay for all fish offered.

Unspawned females containing eggs that are offered to the contractor from state-funded hatcheries will be purchased by the contractor inclusive of egg (roe) value.

Provide a source of protein for Northwest Harvest’s statewide food bank program.

All “good” quality fish offered from federal and local funded hatchery facilities, and all “good” quality males from state-funded hatcheries, will be processed for, and donated to, Northwest Harvest. Fish from federal and local funded hatcheries are donations from WDFW to Northwest Harvest. Fish from state funded hatcheries are donated by the contractor to Northwest Harvest.

Provide for “best use” of otherwise unusable salmon carcasses “Unusable” quality fish from state hatcheries and “low” and “unusable” quality fish from federal and local funded facilities that are offered to the contractor may also be used for the production of Salmon Carcass Analogs (SCAs). Although not a required element of the contract, Bidders wishing to improve their chances of being awarded the contract may tender a commitment of SCAs. (See page 5, section #20 below for details.) Bidders agreeing to provide SCAs will be awarded 5% bonus points.

1. FIRM PRICE CLAUSE: Prices bid will be fixed for the limited contract period in accordance with the terms and conditions of this contract.

2. PERFORMANCE AND DEFAULT BOND (see Exhibit G for sample): WDFW requires the purchaser to provide, at purchaser’s cost, a performance bond in the amount of $500,000. The performance bond may be provided in the form of cash, a certified check or an Irrevocable Letter of Credit. Any certified check or irrevocable letter of credit must be provided by a bank or trust regulated by the State of Washington. The performance bond shall be issued by a company acceptable to the state, and shall be payable to the state on demand. The performance bond will be due thirty (30) days after notification of award

The bond shall ensure that, in the event the Bidder is awarded a contract, the Bidder agrees they will reimburse WDFW for any loss or additional expenses incurred by WDFW as a result of default or failure to satisfactorily perform the terms of the contract, including a sum for reasonable attorney fees. In the event litigation shall become necessary, venue will be laid in Thurston County, Washington.

WDFW reserves the right, at its sole discretion, to release the bond during the term of the contract if the agency feels it is no longer necessary. Necessity will be determined after the contractor has a proven record of successfully providing services.

3. CONDITION CATEGORIES

a. “Good” Adult Female Salmon with Eggs: Range from silver to bronze to tinges of brown or red skin color, may have some frayed fins, cosmetic blemishes. Quality - good to excellent (Bids should include value of eggs).

b. “Good” Male and Jack Salmon: Same as above, see description of Jacks on last page of this section. (Due to the long term use of jack data by WDFW Harvest Management staff, jack length will not be changed during this contract.)

c. “Low” Salmon: Dark, mature, worn and frayed fins, lacerated skin, abrasions, or spawned out Quality – low

d. “Low” Female Salmon with Eggs: Dark, fully mature, worn and frayed fins, lacerated skin, abrasion. (Bids should include value of eggs.)

e. Salmon Eggs (Non-Viable/Non-Fertilized): Eggs will be stripped by the Department and placed in containers for pickup by the purchaser.

f. Unusable Salmon (Inedible): Pond mortalities, badly fungused or medicated fish not fit for human consumption or animal feed.

g. Dead Salmon Eggs: The contractor shall haul away all offered unusable eggs at no cost to the state. The contractor may make any use possible of such eggs without the requirement of payment to the state. Such eggs will be placed in separate containers, provided by the contractor, at the point of pickup.

4. The contract resulting from an accepted bid is an output contract whereby the purchaser must take all the fish and fish eggs offered. The actual 2021 and 2022 data is given in good faith and for your convenience but should only be considered as an approximation of the amounts of surplus hatchery salmon carcasses (including egg bearing carcasses) that may be available. The Bidder should understand that the highly fluctuating nature of salmon runs and fisheries precludes a more accurate estimate of the output of salmon carcasses and salmon eggs that may be tendered to the Bidder. No claim shall be made against WDFW if the actual fish or eggs made available to the purchaser under the terms of the invitation to bid do or do not equal the sold fish volume numbers provided.

5. In this call for RFQQ, the following should be noted:

a. No fish or eggs will be released to the purchaser prior to submission by Bidder of the required performance bond.

b. Bids are based on a per fish basis. Bids for unspawned females containing eggs will also be on a per fish basis and should include egg (roe) value.

6. WDFW makes no guarantee, warranty or representation, expressed or implied, regarding the merchantability or fitness of the fish for any use or purpose except as to general appearance according to the categories indicated above at the time fish are made available for delivery.

7. WDFW and the purchaser hereby agree and stipulate that the hatchery specialist (at each facility) of the WDFW will determine which fish belong to each category, and his/her decision is final as to any particular load of fish. It is understood and agreed between the state and the purchaser that any discrepancies with respect to number and/or category determination shall be resolved by WDFW.

8. MANDATORY REQUIREMENT – Any person, firm, or corporation whose bid is accepted must be, or have a partner who is, licensed by the Department of Fish and Wildlife as a wholesaler, canner, processor, or byproducts manufacturer of fish and shellfish or parts thereof.

9. WDFW will, whenever possible, notify the purchaser a minimum of 24 hours prior to the actual availability of fish carcasses for pick-up. The purchaser must load the fish carcasses and/or eggs at each pick-up point at the time indicated by WDFW. This may include a Saturday, Sunday or holiday.

a. There may be instances when WDFW employees will assist the contractor in loading fish, including the utilization of WDFW equipment; or the contractor, his/her employees, or agents may briefly utilize WDFW equipment to load fish. Such participation by WDFW employees or utilization of equipment shall be at the convenience of WDFW, and WDFW assumes no duty or obligation to provide the same. The contractor assumes all liabilities and agrees to hold WDFW harmless from any claims, of whatever kind, including any claims under the Workmen's Compensation Act, which might arise from the acts of WDFW employees when assisting the contractor in loading fish or which might arise because of the use of state employees or equipment by the contractor, his employees or agents.

b. The utilization of WDFW equipment by the contractor, its employees or agents that is classified as "powered industrial truck" by the State Department of Labor and-Industries will be allowed only by operators that have received training and authorization under the Department of Labor and Industries' Washington Administration Code 296.24.23025. Verification of the operator's authorization shall be provided to the WDFW prior to any utilization of the equipment.

10. Time is of the essence on this contract. If the purchaser fails to perform any of the requirements of this contract at the time fixed for the performance thereof, WDFW may, at its election, terminate the contract. Initial notice of termination may be provided via telephone notice. A formal letter of termination will be sent the next business day after telephone notice of termination.

11. The purchaser must take all fish or eggs offered in any category or location, and is required to submit payment for same as indicated below.

12. Delay in pick-up by the purchaser will not change the category for payment purpose as determined by the hatchery manager.

13. Truck drivers and receivers must be properly identified and furnish information associating them with the purchaser if requested by the WDFW. All receivers will be required to use fish tickets which will be supplied by WDFW at each pick-up location. The vender will supply ID Cards to all employees picking up carcasses at hatchery facilities.

14. All pick-ups of salmon carcasses or salmon eggs will be recorded on forms titled "Fish & Egg Disposition Ticket." The bottom copy will be retained by the purchaser, while the first two copies will be retained by the WDFW.

15. WDFW, or their agents, may observe any and all handling, transportation, storage, and sale procedures of the purchaser or his/her agents.

16. The purchaser will be invoiced by the WDFW no more often than a monthly basis for all fish received in each category based on the "Fish & Egg Disposition Ticket" prepared by the hatchery specialist. During periods where there are lowers volumes of fish supplied, bills may be submitted covering several months of pick-ups by Bidder Payment is due within 30 days of the billing date on the invoice. The purchaser must also pay any excise taxes that may be required by Chapter 82.27. RCW.

17. In case of breach or default of any resulting contract by the purchaser, WDFW may dispose of any surplus salmon and/or eggs that have been offered to Bidder in any manner under state law. The purchaser must reimburse WDFW for any and all labor, costs, expenses, damages, attorney's fees and 12 percent annual interest that WDFW incurs directly or indirectly in the disposition of such salmon and eggs.

18. SPECIAL HANDLING REQUIREMENTS

The purchaser shall be required to handle all carcasses and eggs made available in a manner that meets with standards set forth by the State Department of Agriculture and/or the U.S. Food and Drug Administration. This shall include that the carcasses and eggs obtained by the purchaser be placed in clean food grade containers and shall be protected by refrigeration or icing or other approved methods and procedures of handling and transit. The purchaser shall provide the containers, ice, refrigeration, and other necessary items to ensure quality handling and transit.

WDFW reserves the right to color dye any specific lot of carcasses in any category if the State Department of Agriculture and/or the U.S. Food and Drug Administration indicate to the WDFW the purchaser has not met with the standards set forth by their agencies for the handling and transit of salmon carcasses. The act of color dying the carcasses will not be cause to change the category or price that is determined by the hatchery specialist.

19. COMMENTS/FISH HEALTH:

a. Hatchery salmon carcasses have been noted with the parasite Henneguya. This parasite appears to be primarily in coho salmon, with the heaviest concentration found in coastal hatcheries.

b. A past hatchery carcass contractor has reported the bacteria Listeria has been found to occur in hatchery salmon

20. ECOLOGICAL USE OF BIOMASS BYPRODUCTS:

a. Salmon Carcass Analogs

As stated on page one of this exhibit, not all surplus fish will be offered to the Bidder. Unusable or low quality fish received by the contractor may be used in the production of salmon carcass analogs (SCA).

Although not a required element of the contract, Bidders wishing to improve their chances of being awarded the contract may tender a commitment of SCAs. Bidders agreeing to provide the described analogs will be awarded 5% bonus points in their response to this solicitation.

Use the specifications below to determine your bid. Actual permitted specifications from the Washington Department of Ecology (ECY) may vary (see below). (This is based on the Bio-Oregon formula described in: Todd N. Pearsons, Dennis D. Roley & Christopher L. Johnson (2007): Development of a Carcass Analog for Nutrient Restoration in Streams, Fisheries, 32:3, 114-124). This formulation has previously been permitted by ECY.

· Have a solid form, such as a 1 inch or greater diameter pellet, in order to mimic the natural decay rate of a salmon carcass (approximately 30 days in the water).

· Have sufficient size and negative buoyancy to sink and remain close to the point of deposition in the stream during typical flow regimes for the period of use.

· Have a minimum of 50% marine derived nutrients, preferably from Pacific Northwest salmon.

· Be free of undesirable pathogens and heavy metals.

· Be sufficiently dried to provide a microbiologically stable pellet: less than 10% moisture to minimize mold and mildew development in storage.

· Meet the following nutritional/chemical standards:

· Meet any other permitting requirements of the Washington Department of Ecology (ECY).

SCAs meeting these standards have been permitted by ECY on an experimental basis, although ECY has not developed a firm definition of nutrient composition or physical properties. Existing ECY permit language is as follows:

“The intent of introducing the analogs is to reestablish nutrients and food to the stream’s food chains (especially for young salmonids) in amounts equivalent to that provided by a natural spawning population of salmon. To the extent that analogs mimic the natural nutrient signature of the streams where analogs would be added, the practice is not in conflict with the state’s water quality standards.”

The contractor will not be expected to provide their commitment of SCAs until/unless presented with one or more viable ECY permits by a Regional Fisheries Enhancement Group. The winning contractor will be expected to coordinate with the prospective permit holder(s) on the expected chemical composition, size, and shape of the SCAs in order to successfully obtain a permit. Delivery date will be based on the amount of lead time expressed by the contractor in the RFQQ unless a mutually agreeable timeframe has been agreed to by all parties.

If ECY’s permitting requirements change during this contract, and if those permitting requirements increase the cost of producing SCA’s that Bidder has committed to manufacture and supply as part of their bid package, the contractor will be allowed to reduce the amount of SCAs commensurate with the increase in cost. Evidence of the increased costs will be required to utilize this provision.

The amount of SCAs that must be provided will be the lesser of either the bid commitment or the amount allowed under the ECY permit(s). The required analogs will be provided to the permit holder(s) at no cost. If the combined sum of the permitted analogs from multiple permit holders exceeds the amount required under the contract, WDFW will make the decision as to the distribution of the SCAs provided by the contractor.

b. Testing and Reporting

A sample of the product/meal must be sent to a certified laboratory for analysis prior to manufacturing analogs. At a minimum the meal should be analyzed for: moisture, protein (crude), fat (acid hydrolysis), fiber (crude), ash, phosphorus (total), and nitrogen (total). Analysis for additional items may be required as needed for the permitting process.

The amount of SCAs that must be provided will be the lesser of either the bid commitment or the amount allowed under ECY permit(s). The required analogs will be provided to the permit holder(s) at no cost. If the combined sum of permitted analogs from multiple permit holders exceeds the amount required under the contract, WDFW will make the final call as to the distribution of the SCAs provided by contractor.

The nutrient content of the SCAs must be tested by an independent, certified laboratory for chemical analysis. A soak test, by placing a sample of the SCAs into the stream, must be conducted to determine decay rate.

Documentation of the fish pathogen screening shall be provided to WDFW and the permit(s) holders.

Reports of the testing shall be provided to WDFW and the permit(s) holders prior to shipment of the SCAs.

c. Packaging SCAs shall be packaged in bags with a maximum weight of 50 pounds.

d. Labeling

· The manufacture date of the SCAs shall be labeled on any bags of packaged analog.

· A batch number shall be generated for each batch of SCAs produced and shall be included as part of the required labeling.

e. Delivery & Delivery Location Contractor shall contact the permit holder(s) no less than two weeks prior to the delivery of any SCAs to confirm details of analog delivery. Delivery timing and location shall be coordinated between the contractor and the permit holder(s). Contractor is responsible for annual delivery of all analogs to permit holder(s).

f. Costs All labor, trucking, distribution, processing, delivery, and incidental costs associated with processing and delivery of SCAs that Bidder commits to provide as part of its bid package are the responsibility of the contractor and are not subject to reimbursement by WDFW or to offset the required contract payments to WDFW.

21. HATCHERY FACILITY LOCATIONS/ADDRESSES

For specific addresses and locations of hatchery facilities included in this solicitation, please go to:

http://wdfw.wa.gov/hatcheries/facilities.php

Also see the list provided as part of Exhibit C – Bid Sheet.

22. REPORTING REQUIREMENTS (may include but is not limited to):

The contractor is required to submit an annual report to WDFW by August 31st of each contract year for work done in the previous contract year (July – June). This report will include the following:

1. Number of fish received by facility and by species.

2. Pounds and types of processed product provided to Northwest Harvest.

3. Pounds of analogs produced and to which entities they are delivered, including delivery dates.

23. SITE VISITS

Site visits may be conducted by WDFW staff or their representative. Should a site visit be necessary, WDFW will contact the Contractor with at least 48 hours’ notice to arrange for the site visit

24. NORTHWEST HARVEST (NWH)

Northwest Harvest would like the contractor to provide the processed salmon product in two forms: boneless, skinless frozen fillets and/or frozen patties.

Northwest Harvest would like to determine the proportions of each product.

NWH would like the salmon patties delivered to be no less than 99% salmon, and any other ingredients to be pre-approved by NWH.

NWH would like to determine the packaging requirements of the final products so as to ensure the products are suitable for distribution to food bank customers.

All labor, trucking, distribution, processing, delivery and incidental costs associated with processing and delivery of processed salmon products to NWH that Bidder commits to provide as part of its bid package are the responsibility of the contract holder and are not subject to reimbursement by WDFW or as a set off to required contract payments to WDFW.

NWH may choose to have staff on hand at the hatchery and/or processor to oversee the disposition/processing of surplus salmon intended for food bank donation.

Contractor will be required to provide proof/accounting of all processed salmon product provided to NWH

The preferred location for delivery of the donated product is:

Northwest Harvest 22220 - 68th Avenue, South Kent, Washington 98032 Contact: EJ Vaiese ejv@northwestharvest.org

(206) 923-7450 ext. 2026

25. AUDIT REQUIREMENTS

WDFW may require an annual performance audit.

If WDFW requires a performance audit under this contract, items to review may include but are not limited to: numbers of carcasses sold and revenue received, pounds of analogs produced meeting requirements and pounds of processed fillets and patties provided to Northwest Harvest, etc..

26. LATE PAYMENTS AND LIQUIDATED DAMAGES

In the event of a breach of contract, WDFW may, in addition to any other available remedies, assess the following liquidated damages:

· 1% per month interest on all late payments (in excess of 30 days due).

· Additional late payment fees of 2% of total amount due for payments made more than 60 days late, or 5% for payments more than 90 days late (in addition to any monthly interest due).

· Costs incurred to WDFW by contractor’s failure to perform any aspect of the contract (to include, but not limited to, picking up fish from WDFW hatcheries, providing commitment of processed fish to Northwest Harvest, or providing commitment of SCAs), may result in WDFW accessing the contractor’s performance bond.

DESCRIPTION - JACK AND ADULT DETERMINATION AT WDFW FACILITIES

Puget Sound

Steelhead: All returning fish are assumed to be adults

Coast

Steelhead: All returning fish are assumed to be adults

Columbia River

Steelhead: All returning fish are assumed to be adults