Attachment_1_Exhibit_A-_Statement_of_Work.docx

State Controller’s Office IFB Number 0000034673 Standard Agreement, Exhibit A, Attachment 2

ATTACHMENT 1 EXHIBIT A: STATEMENT OF WORK

A. Description of Services

The Contractor shall provide the State Controller's Office (SCO) Disbursements Bureau (DISB) with two production folder mailing inserters with native tracking software. SCO intends to lease this equipment. The Contractor shall deliver, install, and provide system configuration and on-site training of the production folder mail inserting equipment and production folder mail inserting software, as well as five years of software and hardware maintenance services at the location specified in Table 1.

Table 1

Agreement Term

The maintenance term of this Agreement will be for five years in total upon completion of acceptance testing exclusive of warranty services with the options to amend to extend the term of this agreement for up to two optional one-year extensions, add and/or delete software maintenance and/or hardware maintenance services and add funds as deemed necessary by SCO upon completion of SCO acceptance testing. The rates quoted on Standard Agreement, Exhibit B, Attachment 1, Cost Worksheet will not change as a result of any amendment to this agreement. This agreement may be terminated by SCO with 30 days’ written notice to the Contractor.

Contractors are cautioned that no services will begin until the Agreement has been fully executed. If services are performed prior to agreement approval, and the Agreement for any reason is not approved, all previous services performed by the Contractor is considered donated to SCO and no payment shall be made for that work.

Agreement Amount

The Contractor and the SCO Contract Manager (CM) listed in Standard Agreement, Exhibit A, Statement of Work (SOW), Section H. Contacts, Item 2 are responsible for monitoring the Agreement to not exceed the maximum amount of the Agreement without an executed amendment.

B. Background and Business Processes

SCO is mandated by California Constitution Article XVI § 7 to issue warrants (i.e. checks) and electronic funds transfers (EFTs) from the State Treasury. Examples of these payments include In-Home Supportive Services and Medi-Cal provider payments, Franchise Tax Board tax refunds, and California State Payroll. An SCO warrant is the only means to draw money from the State Treasury. The procurement of the two production folder mailing inserters with native tracking software and five years of software and hardware maintenance services will assist SCO in fulfilling its constitutional duties of printing and disbursing 70 million warrants, EFTs, and payment advice notices annually.

Certain business processes related to this equipment are included for reference purposes below:

· An automated changeover occurs when the Contractor’s technician or SCO operator enters the job specifications prior to job start and saves the job specifications as a job profile. Prior to the start of an insert job, and once the applicable job profile is selected, the inserter adjusts its components to meet the job profile requirements.

· Duplicate warrants are identified when the inserter reads the control file, insert job begins, inserter tracks activity/identifiers against control file, inserter recognizes activity/identifiers it previously tracked, inserter diverts pull for operator review.

· Operator pulls are when an operator enters warrant numbers, then the inserter tracks activity/identifiers against a control file. Once the inserter recognizes the warrant number, the inserter diverts pull for operator review.

· The general process for close-loop verification starts with reading the control file, insert job begins, the inserter tracks activity, job completes, inserter compares tracked activity against control file, generating a rating of job completion, and reports warrants that were not seen during the insert job.

C. Contractor Responsibilities

1. The Contractor shall:

a. Ensure that equipment, software, and maintenance services provide SCO with a complete production folder mailing inserting solution that meets or exceeds the requirements outlined in the Invitation for Bid (IFB) Bid Specifications and the Standard Agreement, Exhibit A, SOW. Additional software, hardware, or modifications required to complete the work described herein will be provided to SCO at no cost.

b. Factory Acceptance Testing

1) Within five business days following the completed manufacturing of the production folder mailing inserters, conduct factory acceptance testing to ensure that both machines can successfully complete SCO insert processes before equipment is shipped and installed at the permanent destination.

2) Factory acceptance testing shall include both machines and be comprised of:

a) Testing of all components.

b) Functional testing of the operation systems, barcode readers, and paper streams.

c) System test using SCO provided material.

d) Provide a video of testing processes and destruction of SCO provided materials for SCO review. Video shall be sent via overnight mail with tracking on an encrypted compact disk or thumb drive to the SCO Representative listed in Standard Agreement, Exhibit A, SOW, Section H. Contacts, Item 1. The password required to unencrypt data shall be emailed to the SCO Representative listed in Standard Agreement, Exhibit A, SOW, Section H. Contacts, Item 1.

c. Delivery, Installation, and Configuration of the Production Folder Mailing Inserters:

1) Deliver both production folder mailing inserters to the precise location of installation.

2) Responsible for labor and materials, unpacking, removal, and disposal of all packing and delivery materials.

3) Perform an on-site pre-installation walkthrough of the SCO facility destination within 15 business days of Agreement execution to ensure adequate spacing and machine requirements are met by SCO prior to delivery.

a) Provide a pre-installation checklist which includes operating environment requirements, power requirements, and overall measurements of the system with space requirements, network requirements, and detailed network diagrams, to the SCO Representative listed in Standard Agreement, Exhibit A, SOW, Section H. Contacts, Item 1.

4) Comply with California Code of Regulations Title 24 to ensure no infringements exist on any space requirements or specifications.

5) Coordinate the installation date with the SCO Representative listed in Standard Agreement, Exhibit A, SOW, Section H. Contacts, Item 1.

6) Provide a certified forklift driver, aisle forklift, and any necessary equipment to unload and set up the new equipment.

7) Provide on-site installation and initial configuration of both production folder mailing inserters and the native tracking software.

8) Additional software, hardware, or modifications required to complete the work described herein will be provided to SCO at no cost.

9) Configure the equipment as agreed upon in writing by the Contractor and SCO Representative listed in Standard Agreement, Exhibit A, SOW, Section H. Contacts, Item 1.

a) SCO reserves the right to adjust the desired floor plan until five business days prior to installation start unless otherwise agreed upon with the SCO Representative listed in Standard Agreement, Exhibit A, SOW, Section H. Contacts, Item 1.

10) During delivery, installation, and configuration, the Contractor shall make all reasonable efforts to minimize SCO workplace disruptions.

a) If SCO believes excessive or avoidable workplace disruptions have occurred, SCO will immediately request a written corrective action plan from the Contractor Representative listed in Standard Agreement, Exhibit A, SOW, Section H. Contacts, Item 1.

b) The Contractor shall provide a written corrective action plan with 48 hours of receiving SCO’s request.

c) Failure to respond within 48 hours could result in a cease work order until a mutually agreed upon solution is determined.

d. On-Site Training

1) Provide initial 40 hours of on-site in-person training for the production folder mailing inserters with native tracking software to the SCO staff identified by the SCO Representative listed in Standard Agreement, Exhibit A, SOW, Section H. Contacts, Item 1. Upon mutual written agreement, this schedule may be altered to better suit delivery and installation requirements.

a) Training costs shall include all costs associated with providing training services including travel.

b) Training costs shall be included in the delivery and installation of all production folder mail inserting equipment.

2) Conduct two daily training sessions: the first between 8:00 a.m. to 12:00 p.m. and the second session between 1:00 p.m. to 5:00 p.m.

3) The training curriculum must include:

a) Operational training, including the setup and adjustment all production folder mailing inserters and advanced operator training to change worn out operator replaceable components.

b) The skill sets and procedures needed to perform day-to-day operations and utilizations of the production folder mailing inserters with native tracking software.

4) Provide a hardcopy and digital files 20 business days prior to training start that include, but are not limited to, modules for:

a) System overview.

b) System specifications.

c) Managing the system.

d) Changing system parameters.

e) Workstation operation.

f) Operator functions.

g) Troubleshooting.

h) Maintenance.

i) Review and certification.

5) Any virtual training provided in addition to the initial required in-person training, such as a video library or other follow-up training, shall be fully operational and properly reflect the equipment systems.

6) Schedule a debriefing immediately following the last day of training to include the Contractor, SCO management, and trainees to discuss any questions or concerns.

7) Provide a daily operations end-user manual for production folder mail inserting equipment systems in both portable document format (PDF) and hard copy formats.

8) Provide certifications to all SCO staff who complete and pass the Contractor supplied training.

e. On-Site Acceptance Testing

1) Conduct on-site acceptance testing in two phases: validation and production. Validation testing shall be completed by Contractor trained technicians and begin after the Contractor certifies that the production folder mail inserting equipment meets production standards. Production testing will be completed by SCO staff and shall begin after staff are trained to perform each test.

a) Validation Testing

i. Validation testing is expected to last 15 state business days.

ii. Testing will verify the equipment and software consistently performs according to its intended purpose and meets the required specifications outlined in the IFB Bid Specifications and Standard Agreement, Exhibit A, SOW, Section C. Contractor Responsibilities.

iii. DISB Mail Operations staff will observe and evaluate the ability of the equipment systems to perform in accordance with the validation testing requirements detailed in Standard Agreement, Exhibit A, Attachment 1, Acceptance Criteria – Validation Test Phase Matrix. These tests were established to verify that the equipment specifications required to perform a given test job are in full compliance.

iv. All validation tests described in Standard Agreement, Exhibit A, Attachment 1, Acceptance Criteria – Validation Test Phase Matrix shall adhere the following requirements:

v. A failed validation test will be repeated until the failed equipment system is able to pass each validation test. For failed validation testing, the Contractor and the State will follow the process defined in Standard Agreement, Exhibit A, SOW, Section D. Performance and Acceptance Criteria.

b) Production Testing

i. Production testing will ensure that the equipment is operating consistently to its stated performance specifications without excessive maintenance during normal production workloads.

ii. Testing will begin after each equipment system passes the validation tests. Acceptance testing criteria is listed in Standard Agreement, Exhibit A, Attachment 1, Acceptance Criteria – Validation Test Phase Matrix.

iii. Production testing will be considered successful if 20 continuous state business days have elapsed without more than one hour of production delay due to any malfunction of the equipment hardware or software provided by the Contractor.

iv. Routine or planned preventive maintenance performed will not be counted as Contractor downtime during the test period.

v. Should a single or any combination of malfunctions exceed one hour delay during the test period, the 20 continuous state business days test period will restart from the beginning once the malfunctions(s) are corrected.

f. On-site Preventive Maintenance and Repairs

1) Provide five years of unlimited non-emergency on-site preventive maintenance (PM) and repair services for all equipment systems.

2) Perform services during SCO core business hours, Monday through Friday, 8:00 a.m. to 5:00 p.m. Pacific Time (PT), excluding weekends and State holidays. A list of holidays observed by the State may be found at http://www.calhr.ca.gov/employees/pages/state-holidays.aspx.

3) Provide at least one dedicated journey-level factory certified service technician to remain on site during SCO business hours. Technician shall have the necessary training and mastery to perform all but the most unusual or difficult PM or repair tasks independently on the equipment systems listed in this Agreement. A copy of the service technician’s valid, active certification must be provided.

a) If the regularly scheduled, primary on-site service technician is unable to work either a full shift or a partial shift, a dedicated journey-level, factory certified, backup service technician with the same requisite training will perform duties, independently, as required. A copy of the service technician’s valid, active certification must be provided.

b) Notify the SCO Representative listed in Standard Agreement, Exhibit A, SOW, Section H. Contacts, Item 2 when the primary on-site service technician has pre-scheduled time off and provide the name of the backup technician.

c) Notify the SCO Representative listed in Standard Agreement, Exhibit A, SOW, Section H. Contacts, Item 2 before replacing the dedicated service technician. The Contractor shall not add or replace a key staff member without prior notification.

i. The replacement service technician must meet the IFB minimum requirements.

d) Provide an additional factory trained service technician if the primary on-site service technician is unable to perform the scheduled PM tasks per Standard Agreement, Exhibit A. SOW, Section C.1.f.3)f. The additional technician will provide services independently at no additional cost to SCO.

i. If SCO has requested that the PM be rescheduled, the Contractor is not obligated to provide an additional resource at no cost.

e) At the end of each shift, the service technician will email a daily turnover report to the SCO Representative listed in Standard Agreement, Exhibit A, SOW, Section H. Contacts, Item 1, or their designee. The email must include:

i. All work performed that day by the on-site technician.

ii. A list of parts that were replaced.

iii. Whether any equipment is non-functional, and if so, an estimated date when the equipment will be available for use.

iv. Total overtime hours worked, if any. Failure to provide this overtime information may result in invoice disputes and delayed payment.

v. The service technician shall additionally provide suggestions for any future work needed to ensure continued operating efficiency.

f) Coordinate with the SCO Representative in Standard Agreement, Exhibit A, SOW, Section H. Contacts, Item 1 to schedule PM regularly, based on manufacturer’s recommendation, depending on the equipment and model. This shall include, but not limited to:

i. Cleaning.

ii. Lubrications and adjustments to the equipment as necessary.

iii. A thorough inspection for worn parts with the obligation to replace any parts identified during inspection.

iv. Should the technician need to order the part, Contractor must provide notice to the Representative listed in Standard Agreement, Exhibit A, SOW, Section H. Contacts, Item 1 within 24 hours.

v. Replacement of unserviceable parts.

vi. Testing equipment with production materials as appropriate.

g) Regularly perform required PM as prescribed by manufacturer for continued warranty coverage and to maintain fully operational equipment.

i. An annual schedule of PM will be provided to the SCO Representative listed in Standard Agreement, Exhibit A, SOW, Section H. Contacts, Item 1 no later than June 30th of each calendar year.

h) Sign the SCO Contractor/Consultant Confidentiality and Non-Disclosure Acknowledgement form (ISO-004b).

g. On-Call After-Hours Maintenance and Repair Services

1) Provide five years of on-call after-hours maintenance and repair services by a journey-level factory certified service technician meeting the IFB requirements with for all equipment systems as needed, Monday through Friday, 5:00 p.m. to 8:00 a.m. Pacific Time (PT), and 24 hours a day on weekends and holidays. Technician shall have the necessary training and mastery to perform all but the most unusual or difficult PM or repair tasks independently on the equipment systems listed in this agreement. A copy of the service technician’s valid, active certification must be provided. On-call after-hours maintenance and repair services are reserved for any necessary repairs that require immediate service outside the hours of 8:00 a.m. to 5:00 p.m. PT, Monday through Friday.

a) Respond within 30 minutes after a service ticket is placed and provide a status update (i.e., a technician has been notified and the technician’s arrival time) via telephone or e-mail to the SCO Representative who placed the request.

b) Report to the SCO facility within two hours of the initial request for service unless the SCO Representative listed in Standard Agreement, Exhibit A, SOW, Section H. Contacts, Item 1, or their designee, accepts another specified time.

c) Invoice on-call after-hours maintenance and repair services separately from on-site preventive maintenance and repair services, in accordance with the rates depicted in Exhibit B, Attachment 1, Cost Worksheet, and include a list of parts replaced during that call with the invoice.

i. Scheduled: Requests initiated for on-call services not covered by the on-site dedicated technician occurring during SCO core business hours, and scheduled 24 hours in advance, will be invoiced at the hourly rate specified on Exhibit B, Attachment 1, Cost Worksheet.

ii. Overtime: Requests initiated for on-call maintenance services occurring during SCO core business hours that extend into overtime hours will be invoiced at the “Overtime” rate specified on Standard Agreement, Exhibit B, Attachment 1, Cost Worksheet.

iii. Unscheduled Emergency Repair: Requests initiated for on-call maintenance services occurring outside SCO core business hours will be billed at the “Unscheduled/Emergency” rates listed on Standard Agreement, Exhibit B, Attachment 1, Cost Worksheet. Rates will be determined by the date and time of service.

d) Contact the SCO Representative listed in Standard Agreement, Exhibit A, SOW, Section H. Contacts, Item 1 for after-hours building access protocols within two weeks of Agreement execution.

h. Repairs and Replacement Parts

1) Ensure all repairs, adjustments, and maintenance are compliant with the original equipment manufacturer (OEM) specifications and must adhere to their safety requirements, unless prior authorization is obtained in writing by the SCO Representative listed in Standard Agreement, Exhibit A, SOW, Section H. Contacts, Item 1 or their designee.

2) Ensure neither the Contractor nor SCO staff remove or bypass any safety devices in order to facilitate repair or normal operation of equipment. Temporary removal of covers or guards for routine maintenance and repair services may be done by the Contractor staff while performing diagnostic or repair services.

3) Replace parts, when deemed necessary by the Contractor and with written approval by the SCO Contact, with OEM parts, of good quality, free from damage or defects. Parts shall be replaced (labor and installation included) at no additional cost to SCO, except for parts damaged by the carelessness, misuse or improper handling by SCO.

4) Damaged or defective parts that are removed become the property of the Contractor upon inspection and written approval by SCO.

5) Ability to produce or procure all parts necessary to keep the equipment operational for the duration of this contract, with little to no downtime.

i. Software Maintenance and Support

1) Software maintenance and support shall include the following:

a) Provide a toll-free telephone number and email address for SCO staff to contact the Contractor for general assistance with software, obtain answers to specific software questions, and receive assistance diagnosing suspected software problems.

b) Send SCO the latest revision of the operator’s manual as it becomes available by either hard copy or electronic media.

c) Make software revisions at no charge for software deemed by Contractor as “current” release versions to customers covered under an active Contractor software maintenance contract. Software revisions are defined as enhancements, modifications, updates, and improvements to the software that the Contractor classifies and dot releases meaning the software revisions code changes only in the fractional portion of the program level. (i.e., v1.20 > v1.25 >v1.41, etc.) (“Dot Release”).

d) Notify the SCO Representative in Standard Agreement, Exhibit A, SOW, Section H. Contacts, Item 1 by email of any pending software revisions a minimum of three days prior to release.

D. Performance and Acceptance Criteria

1. The SCO Representative listed in Standard Agreement, Exhibit A, SOW, Section H. Contacts, Item 2 will notify the Contractor in writing within five business days after completion of each phase of any acceptance problems by identifying the specific inadequacies and/or failures in the services performed and/or the products produced by the Contractor. An email from SCO to the Contractor will be allowed as the initial problem notification document.

a. Within five business days after initial problem notification, the Contractor will respond to SCO by submitting a detailed explanation describing precisely how the identified services and/or products adhere to and satisfy all applicable requirements, and/or a proposed corrective action plan to address the specific inadequacies and/or failures in the identified services and/or products.

1) Failure by the Contractor to respond to the initial problem notification within the required time may result in immediate contract termination. In the event of such termination, the Contractor will remove the production folder mailing inserter equipment systems from the SCO site within 30 days and the order will be cancelled at no cost to the SCO. An email from Contractor to the SCO Representative listed in Standard Agreement, Exhibit A, SOW, Section H. Contacts, Item 1 will be allowed as the response to the initial problem notification document.

a) Within five business days after receipt of Contractor’s detailed explanation and/or proposed corrective action plan, SCO will notify the Contractor in writing whether it accepts or rejects the explanation and/or plan.

i. If SCO rejects the explanation and/or plan, the Contractor will submit a revised corrective action plan within three business days of notification of rejection. Emails are allowed as the communication medium.

b) Failure by the Contractor to respond to the state’s notification of rejection by submitting a revised corrective action plan within the required time limits may result in immediate contract termination. In the event of such termination, the Contractor will remove the production folder mailing inserters from the SCO site within 30 days and the order will be canceled at no cost to SCO.

2) Within three business days of receipt of the revised corrective action plan, SCO will notify Contractor in writing whether it accepts or rejects the revised corrective action plan.

a) Rejection of the revised corrective action plan will result in immediate contract termination. In the event of such termination, the Contractor will remove the production folder mailing inserters from the SCO site within 30 days and the order will be cancelled at no cost to SCO. Emails are allowed as the communication medium.

E. Background Checks and Subcontractors

1. The Contractor’s staff dedicated to performing PM and equipment repairs shall be required to complete and pass a Live Scan background check prior to starting work and receiving an SCO asset and permission to access the SCO network. SCO provides all necessary background check forms and location information for each offered staff to complete the process.

a. If contractor staff are located in the Sacramento area, they must be fingerprinted at SCO.

b. If contractor staff are located outside the Sacramento area, but in California, they may go to a Live Scan location of their choosing.

c. If contractor staff are located outside of California, they must go to a local law enforcement agency or to another entity licensed to roll fingerprints and request completion of a standard FBI applicant fingerprint card (FD-258), provided by SCO.

1) Contractor staff shall mail the completed forms and FD-258 back to SCO via the United States Postal Service (USPS).

2. If Contractor’s staff does not pass the Live Scan background check process, the Contractor must replace the proposed individual with a new service technician.

3. The Contractor shall ensure that each staff performing services under the Agreement is made aware of, understands, and complies with the provisions of SCO Live Scan background checks. Any additional or replacement individuals added to the Agreement will be subject to the same terms.

4. SCO shall not compensate the Contractor for any time or effort required to prepare the new staff member for work on the project. The Contractor shall recover and return any state-issued identification card or equipment provided to the Contractor’s employee(s) upon their departure or termination, if applicable.

5. If the Contractor committed to subcontract a portion of the work to a California certified Disabled Veterans Business Enterprise (DVBE), the Contractor must complete and submit to the SCO CM a Prime Contractor’s Certification - DVBE Subcontracting Report (STD 817) at the time of final invoicing or within 60 days of expiration of the Agreement.

F. SCO Responsibilities

1. SCO shall:

a. Delivery and Installation of the Production Folder Mailing Inserters

1) Ensure that adequate space, power, and compressed air, if necessary, are available at the installation sites for both equipment systems as designated by the Contractor and mutually agreed upon by SCO.

2) Provide access to a loading dock to facilitate delivery.

3) Provide a workspace for the Contractor staff to layout drawings, installation manuals, and other materials related to the install.

4) Ensure that SCO staff will be made available for scheduled Contractor-provided training.

5) Provide testing materials for factory, validation, and production testing of the production folder mailing inserters equipment and software.

b. Acceptance Criteria

1) Conduct acceptance testing after delivery and installation is complete.

2) Determine whether a deliverable has been successfully completed and accepted. Written acceptance documentation certifying each deliverable is acceptable must be sent by the SCO Representative listed in Standard Agreement, Exhibit A, SOW, Section H. Contacts, Item 1 and received by the Contractor before invoices can be processed for payment. An email from the SCO Representative listed in Standard Agreement, Exhibit A, SOW, Section H. Contacts, Item 1 to the Contractor will be allowed as the acceptance document.

3) Acceptance criteria shall consist of the following:

a) The equipment systems (i.e., equipment, hardware and software) shall be deemed accepted by the State when the equipment has been installed and meets all requirements.

b) Completion and passing of all appropriate acceptance testing requirements to the satisfaction of SCO.

c) Successful completion of staff training hours.

d) Demonstration of the equipment systems performing as required. The performance must be repeatable and accomplished by SCO without intervention from Contractor staff.

4) The acceptance testing period shall be considered successful if the Contractor provided equipment can:

a) Be operated by SCO staff without Contractor assistance for a complete production cycle.

b) Complete all validation testing defined in Standard Agreement, Exhibit A, Attachment 1, Acceptance Criteria – Validation Test Phase Matrix.

c) Complete production testing which shall consist of the equipment operating for a period of 20 continuous state business days as defined in Standard Agreement, Exhibit A, SOW, Section C.1.e., On-Site Acceptance Testing.

d) Meet or exceed the net average production throughputs specified in Standard Agreement, Exhibit A, Attachment 1, Acceptance Criteria – Validation Test Phase Matrix.

e) Final acceptance testing period shall be 20 state business days or less of continuous operation without more than one hour of production delay due to any malfunction of the equipment hardware or software provided by the Contractor.

c. Training

1) Maintain all training and operating manuals with up-to-date information concerning the production folder mailing inserters and native tracking software.

2) Provide a list of training participants to the Contractor.

d. On-Site Dedicated Technician

1) Provide the Contractor technician with a workspace, guest access to internet and network connections, and email support available during SCO core business hours.

2) Be responsible for any charges for phone line installation or monthly usage charges associated with telephone or email assistance.

3) Provide the Contractor with at least one business day prior notice if scheduled preventive maintenance needs to be rescheduled.

4) SCO reserves the right to ban any Contractor employee from the worksite.

e. Protect the Contractor’s equipment, to the best of its ability, against theft, physical damage by SCO personnel, and against natural elements.

f. Software Maintenance and Support

1) With the written approval and oversight of SCO Information Technology (IT) staff, integrate software maintenance releases into SCO equipment and software environment.

G. Unanticipated Tasks

1. In the event that additional work must be performed that was wholly unanticipated and is not specified in the SOW, but that is, in the opinion of both parties, necessary to the successful accomplishment of the delivery, installation, and software configuration outlined in the SOW, and the estimated cost of that work does not exceed 10 percent limited to the total cost of delivery, installation, and software configuration, the procedures outlined in this section will be employed.

2. For each item of unanticipated work not specified in the SOW, a Work Authorization Form will be prepared in accordance with the sample attached as Exhibit A, Attachment 2, Work Authorization Form (Sample).

3. It is understood and agreed upon by both parties to this contract that all of the terms and conditions of this contract shall remain in force with the inclusion of any such Work Authorization Form. Such Work Authorization shall in no way constitute a contract other than as provided pursuant to this contract nor in any way amend or supersede any of the other provisions of this contract.

4. If notice is given to proceed, the Contractor may expend the estimated additional work hours or services. SCO agrees to reimburse the Contractor for such additional work hours. Exhibit A, Attachment 2, Work Authorization Form (Sample) will contain the following:

a. Title of the work or task to be authorized.

b. Work Authorization number - as applicable.

c. Task Summary - a complete detailed description of the task to be performed.

d. Schedule Dates:

1) Start Date – date when work is scheduled to start.

2) Estimated Completion Date – date when work is estimated to complete.

e. Contractor Personnel to Be Assigned – name of the Contractor’s identified key staff to be assigned to complete the work.

f. Job Classification / Skill Level – job classification must meet or exceed the minimum qualifications and skill level as identified in the Request for Offer.

g. Total Labor Hours – total number of labor hours required to complete the work.

h. Hourly Labor Rate – cost of hourly labor rate indicated in Exhibit B-1, Cost Worksheet.

i. Total Cost – total labor hours times hourly labor rate.

j. Acceptance criteria for the work to be performed.

k. Signatures of both the SCO CM and the Contractor. Contractor’s signature must be from someone who is authorized to bind the Contractor.

5. SCO shall not pay the Contractor for any cost related to the development of Work Authorization Forms.

6. All Work Authorization Forms must be in writing and signed by the Contractor and SCO CM prior to beginning work.

7. SCO has the right to require the Contractor to stop or suspend work on any Work Authorization pursuant to the “Stop Work” provisions of General Services Procurement Division - Information Technology General Provisions (Non-Cloud Goods and Services) – DGS PD 403-ITGP (Non-Cloud) (Revised and Effective 2/20/2025) and General Services Procurement Division - Information Technology General Provisions – (Cloud Computing Services) – DGS PD 402-ITGP (Cloud) (Revised and Effective 2/20/2025).

8. The Contractor must follow the SCO Work Authorization procedure outlined below in order to expend key staff resources on task accomplishment in excess of the previously estimated work hours.

a. If, in the performance of the work, the Contractor determines that a Work Authorization cannot be accomplished within the estimated work hours, the Contractor will immediately notify the SCO CM in writing of the Contractor's estimate of the work hours required to complete the Work Authorization in full.

b. The SCO CM will notify the Contractor in writing of its decision within five business days after receipt of the Contractor's notification.

c. Upon receipt of such notification, SCO may:

1) Authorize the Contractor to expend the estimated additional work hours or service in excess of the original estimate necessary to accomplish the Work Authorization (such an authorization not unreasonably to be withheld); or,

2) Terminate the Work Authorization; or,

3) Alter the scope of the Work Authorization in order to define tasks that can be accomplished within the remaining estimated work hours.

d. If notice is given to proceed, the Contractor may expend the estimated additional work hours or services. SCO agrees to reimburse the Contractor for such additional work hours.

H. Contacts

1. Direct all technical inquiries to:

State Controller’s Office Disbursements Bureau Contractor

(TBD)

Name:

Name:

Address:

Address:

Phone:

Phone:

E-mail:

E-mail:

2. Direct all contract management inquiries to:

State Controller’s Office Disbursements Bureau Contractor

(TBD)

Name:

Name:

Address:

Address:

Phone:

Phone:

E-mail:

E-mail:

3. Direct all agreement inquiries to:

State Controller’s Office Contracts & Procurement Office Contractor

(TBD)

Name:

Name:

Address:

Address:

Phone:

Phone:

E-mail:

E-mail:

4. Contacts may be changed upon written notice to either party without an agreement amendment.

Standard Agreement, Exhibit A

ACCEPTANCE CRITERIA – VALIDATION TEST PHASE MATRIX

Native tracking software will generate a tracking file.

This test will include integrity requirements. Refer to Test Job Numbers 2, 4, and 9.

The tracking file is updated and corresponds with the contents of the envelope immediately following test job completion.

1. Duplicate warrants presented to the inserter for inserting.

2. PIT warrant 24 lb. bond, 8 ½” x 11”, one-up, perforation at 7 ½” from page bottom.

1. PIT warrant 24 lb. bond, 8 ½” x 11”, one-up, perforation at 7 ½” from page bottom.

2. Insert one pre-folded FTB 5949 Return Information Notice Explanation, 24 lb. paper bond, 6 ¾” x 9 ½”, C Fold, positioned behind the warrant.

Only one insert is inserted into each envelope.

Standard Agreement, Exhibit A, Attachment 1

Jobs printed on 30% PCRC paper are processed without machine jams or malfunctions.

Jobs using both middle seam and side seam paper are processed without machine jams or malfunctions.

· 24 lb. bond

· 8 ½” x 11”, 1-up

· Perforation at 7 ½” from page bottom.

· Into #10 envelopes

Native tracking software will generate a tracking file.

This test will include integrity requirements. Refer to Test Job Numbers 2, 4, and 9.

Insert test jobs that consist of the following criteria:

1 page, size 8 ½” x 11”, on 24 lb. bond, 1-up, Perforation at 7 ½” from page bottom The production rates must be achieved for the corresponding number of sheets being folded into the #10 envelopes.

Mail pieces will be evaluated against the original job file.

The test job meets a net average of 17,000 mail pieces per hour.

All mail pieces in the file are inserted correctly with address information properly positioned in the envelope window and in the proper paper sequence.

The tracking file is updated and corresponds with the contents of the envelope.

· 24 lb. bond

· 8 ½” x 11”, 1-up

· Perforation at 7 ½” from page bottom.

· Into #10 envelopes

Native tracking software will generate a tracking file.

This test will include integrity requirements. Refer to Test Job numbers 2, 4, and 9.

Insert test jobs that consist of the following criteria:

4 pages, size 8 ½” x 11”, on 24 lb. bond, 1-up, Perforation at 7 ½” from page bottom The production rates must be achieved for the corresponding number of sheets being folded into the #10 envelopes.

Mail pieces will be evaluated against the original job file.

The test job meets a net average of 17,000 mail pieces per hour.

All mail pieces in the file are inserted correctly with address information properly positioned in the envelope window and in the proper paper sequence.

The tracking file is updated and corresponds with the contents of the envelope.

The changeover must be completed without manual adjustment.

Operator inputted warrant pulls.

PIT warrant 24 lb. bond, 8 ½” x 11”, one-up, perforation at 7 ½” from page bottom.

The inserter should divert the operator pull to the diversion channel.

Mail pieces will be evaluated against the original job file.

The inserter diverts warrants entered by the operator.

Böwe Systec North America Inc.

Agreement Number DIS70123 Exhibit B

1. 1 sheet, size 8 ½” x 3 ½”, on 24 lb. bond, 1-up

2. 1 sheet, size 8 ½” x 3 ½”, on 24 lb. bond, 1-up

The Production Folder Mailing Inserters will read the 2-D barcode on each insert and process the mail piece successfully.

Both inserts are inserted into a single envelope. Envelopes contain a maximum of two inserts each, one from each feeder.

The tracking file is updated and corresponds with the contents of the envelope immediately following test job completion.

WORK AUTHORIZATION FORM (SAMPLE)

Title

Work Authorization Number

Task Summary

Schedule Dates

Completion Criteria

This task will be performed in accordance with this Work Authorization and the provisions of IFB Number 0000034673.

Approved By:

State Controller's Office

Contractor Name - TBD

(Name / Title –Type or Print)

Signature

Date

(Name / Title –Type or Print)

Signature

Date