Attachment 08 Written Inquiry Responses.docx
DOCX document 26 KB Posted
- Attached to
- Master Agreement AZ|CTR060124
- Contract number
- CTR060124
- Issued by
- Arizona
About this file
This document is a written inquiry response for an Electronic Benefits Transfer (EBT) Service Request for Proposal (RFP #2022000005), involving the Western States Electronic Alliance (WSEA) States. The document appears to be a series of contractual clarification questions and proposed modifications submitted by a potential contractor seeking standardized terms across multiple state jurisdictions, including Idaho and potentially other WSEA member states.
The document focuses on negotiating contract terms for an EBT service, with the potential contractor seeking standardization in areas such as liability caps, payment terms, termination compensation, intellectual property rights, insurance language, performance schedules, and force majeure provisions. The proposed contract appears to be for a state-level Electronic Benefits Transfer service, with the contractor requesting flexibility in contract terms that would allow for more competitive pricing and equitable risk allocation. The RFP suggests that final contract terms will be individually negotiated with each participating state after the award is made.
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Electronic Benefits Transfer (EBT) Service, RFP #2022000005
| RFP Section |
| Comment/Clarification/Question |
| Response |
| 1. |
| Attachment 8: WSEA States Terms and Conditions |
| Will the WSEA States consider capping Contractor liability to an amount equal to the total amount that the customer has paid the Contractor in the 12 months prior to the relevant incident? |
In order to offer the best possible price, Offeror respectfully requests a cap on liability consistent with industry standards and reasonable apportionment of risk on programs of similar size and complexity.
Caps to Contractor liability will be established by contract with each state.
For Idaho’s response, please see Attachment 08 – Idaho responses 20210902.
| 2. |
| Attachment 8: WSEA States Terms and Conditions |
| Will all WSEA States agree to pay all invoices within net 30 days, as Arizona does? |
Offeror seeks standard payment return times in order to offer the best pricing possible to our customers and to meet our payment obligations to our own employees and vendors.
Payment parameters will be established by contract with each state.
For Idaho’s response, please see Attachment 08 – Idaho responses 20210902.
| 3. |
| Attachment 8: WSEA States Terms and Conditions |
| Will all WSEA States consider limiting Contractor liability, as Idaho does (Idaho-12), to damages directly resulting from Contractor’s own negligent or wrongful acts or omissions? |
In accordance with equitable principles and industry standards, Contractor respectfully requests that its indemnification liability be commensurate to its failure to perform in accordance with its contractual duties.
Contractor liability will be established by contract with each state.
For Idaho’s response, please see Attachment 08 – Idaho responses 20210902.
| 4. |
| Attachment 8: WSEA States Terms and Conditions |
| Will each WSEA State agree that in the event of a termination for convenience it will compensate the Contractor as Guam does (Guam 4.4), or at least that, in addition to all work completed by the date of termination, it will compensate the Contractor for all unamortized and reasonable wind-down costs? |
a. the contract price for performance of work, which is accepted by the State, up to the effective date of the termination.
b. reasonable and necessary costs incurred in preparing to perform the terminated portion of the contract
c. reasonable profit on the completed but undelivered work up to the date of termination
d. the costs of settling claims arising out of the termination of subcontracts or orders, not to exceed 30 days’ pay for each subcontractor
e. reasonable accounting, legal, clerical, and other costs arising out of the termination settlement.
The Offeror respectfully requests that in the event of any termination for reasons other than default by the Contractor, the relevant State reimburse the Contractor in a fair and equitable manner.
Compensation process will be established by contract with each state.
For Idaho’s response, please see Attachment 08 – Idaho responses 20210902.
| 5. |
| Attachment 8: WSEA States Terms and Conditions |
| Will the WSEA States please confirm that, despite the presence of clauses claiming rights over intellectual property developed under the contract, licensing of software, and escrow requirements, the actual scope of work for this project does not, in fact, involve the creation of intellectual property for the WSEA States or the licensing of software to the WSEA States? |
Relatedly, will the WSEA States also confirm that, in the event that the creation of intellectual property ever does become part of the scope of work, all intellectual property developed prior to or independently of this project shall continue to be owned by the Contractor or any relevant third parties?
The Offeror respectfully seeks confirmation that title to and licensing of intellectual property that the Contractor or third parties have developed prior to or independently of this project will be sufficiently protected.
Ownership of Intellectual Property clauses will be established by contract with each state.
For Idaho’s response, please see Attachment 08 – Idaho responses 20210902.
| 6. |
| Attachment 8: WSEA States Terms and Conditions |
| Will the WSEA States agree to provide the Contractor with a reasonable cure period prior to any termination for cause? |
The Offeror respectfully requests that in accordance with industry standards, common business practice, and the principles of equity and fairness, the Contractor be granted the opportunity to correct any alleged default prior to termination.
Termination clauses will be established by contract with each state.
| 7. |
| Attachment 8: WSEA States Terms and Conditions |
| Will the WSEA States agree to negotiate insurance wording to match the Contractor’s standard policies? |
The Offeror’s policies, while offering good protection, provide standard wording to cover thousands of customers and projects. While the Offeror is often able to retain riders to adjust such language, the Offeror’s best pricing can be obtained without requiring such riders. The Offeror is happy to contact any State’s insurance contact post-award to work through and explain any divergent wording.
Insurance wording will be established by contract with each state.
For Idaho’s response, please see Attachment 08 – Idaho responses 20210902.
| 8. |
| Attachment 8: WSEA States Terms and Conditions |
| For clarification, would the WSEA States please confirm that, wherever used, “Time is of the essence” is defined to mean that the Contractor will adhere to the mutually agreed upon schedule for performance? |
The Offeror affirms its intention of meeting all deadlines in a timely manner but seeks to distinguish between catastrophic failures and de minimis infractions.
Time is of the essence will be defined in the contract with each state that uses the terminology.
For Idaho’s response, please see Attachment 08 – Idaho responses 20210902.
| 9. |
| Attachment 8: WSEA States Terms and Conditions – Idaho-33 |
| Will all WSEA States agree to negotiate language to cover circumstances for excused non-performance, such as the force majeure language in the Idaho contract (Idaho-33)? |
The Offeror respectfully requests the insertion of a force majeure clause, common in the industry, for the protection of both parties as well as other scenarios of excused non-performance that are just and equitable.
Force majeure language will be agreed upon by contract with each state.
For Idaho’s response, please see Attachment 08 – Idaho responses 20210902.
| 10. |
| Attachment 8: State Contract Terms and Conditions |
| As required in RFP Section 1.7 on page 8, we understand that all concerns or questions on the States’ terms and conditions are to be provided during this question and response period and that no modifications will be considered that were not raised and agreed to during the question and response period. In order to best present our suggested modifications for the States’ consideration, we have submitted redlines of Attachment 8, States Contract Terms and Conditions, with this Question submission document. Requested additions are in blue underlined font and requested deletions are in red struck through font. Please see the file titled “Requested Modifications to WSEA EBT RFP Attachment 08 State Contract Terms and Conditions Q and A Submission_7 23 2021”. |
| This document is being reviewed by the states and will be negotiated after award. |
For Idaho’s response, please see Attachment 08 – Idaho responses 20210902.
File details come from the government source that posted it. Updated .