B & B Schedule A-SOW.docx

Michigan.gov/MiProcurement Schedule a – statement of work contract activities

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Michigan.gov/MiProcurement Schedule a – statement of work contract activities Request for Proposal (RFP) No. 210000000583 Bicentennial and Blossomland Lift Bridge Operational and Custodial Services

This schedule identifies the anticipated requirements of any Contract resulting from this RFP. The term “Contractor” in this document refers to a bidder responding to this RFP, as well as the Contractor who is awarded the contract. The term “bidder” is used to identify where specific responses to the RFP are required.

The Contractor must respond to each requirement or question and explain how it will fulfill each requirement. Attach any supplemental information and appropriately reference within your response.

BACKGROUND

This Contract is for operational and custodial services for the Blossomland and Bicentennial bascule bridges – a moveable lift bridge (drawbridge) owned by the State of Michigan Department of Transportation (MDOT). The Blossomland bridge is located in the City of St. Joseph and the Bicentennial Bridge is located in the City of Benton Harbor. Both drawbridges are located in Berrien County and cross the St. Joseph River.

The Contractor will be required to provide custodial services and operate the bridge as necessary and as required by law. The drawbridge operations must comply with the United States Coast Guard Code of Federal Regulations, Title 33 Navigation and Navigable Waters, part 117 Drawbridge Operation Regulations (33CFR117) (see https://www.govinfo.gov/app/details/CFR-2010-title33-vol1/CFR-2010-title33-vol1-part117).

SCOPE

The Contractor must provide all personnel, equipment, tools, materials, supervision, and other items and services necessary to perform the Contract Activities described in this RFP, including, but not limited to:

A. Opening and closing operations as required by law; 24 hours per day, 7 days a week, from March 15 to December 15 of each year as mandated by the United States Coast Guard 33CFR117. Arrangements may also need to be made for occasional navigational transportation during the months of December, January and February.

B. Provide trained personnel to operate the bridge 24 hours a day, 7 days a week and 365 days a year. The Contractor must be responsible to schedule all regular and back-up personnel for all work shifts, as determined by the Contractor and in accordance with United States Coast Guard regulations.

C. Performing visual inspections of all electrical, mechanical and hydraulic equipment at the start of each shift (at all towers).

D. Performing all duties required for routine custodial services (at all towers) as outlined in Attachment A-III Custodial Duties of Bridge Operators.

In the event of contract termination, within two (2) weeks of termination, MDOT must receive all daily work logs, records and any other documentation produced by the Contractor under the Contract prior to the Contractor being reimbursed.

NOTE: Subcontracting is permitted provided Awarded Contractor will perform no less than 50% of the original contract amount.

The Contractor must be ready to begin Contract Activities by the March 1, 2021 start date. Contractor will be given two (2) weeks advance notice prior to starting.

If any of the three movable bridges included in this Contract are closed due to construction, discovery of critical findings during inspection, emergency repairs or for any reason deemed necessary by Berrien County, City of Benton Harbor or the Michigan Department of Transportation, the Michigan Department of Transportation will issue a stop work order pursuant to Section 22, of the Standard Contract Terms.

1. General Requirements

1.1 Work and Deliverables

Contractor must provide Deliverables/Services and staff, a detailed work plan, and otherwise do all things necessary for or incidental to the performance of work, as set forth below:

A. Operate the bridge using certified bridge operators. (Certified means documented training and testing provided by the Contractor Program Manager (PM)).

B. Post the Acknowledgment Forms.

C. Provide MDOT Program Manager with complete bridge operator’s competency certification form.

D. Provide proper supervisory personnel.

E. Update and provide to the MDOT PM all bridge opening logs.

F. Inform the MDOT PM of mechanical/electrical malfunction and/or failure to correct malfunction.

G. Inform the MDOT PM of malfunctioning navigation lights.

H. Inform the MDOT PM of events that may have jeopardized bridge structural integrity, such as hits from vehicular traffic, vessel collision, etc.

I. Inform the MDOT PM any time bridge operation is limited or stopped.

J. Contractor PM or a designee respond within 15 minutes to any telephone call made to the Contractor by MDOT.

K. Contractor PM or a designee respond in person within 30 minutes when requested.

L. Advise the MDOT PM when the Contractor PM serves as a bridge operator.

M. Inform the MDOT PM of any complaints from citizens or public agencies.

N. Notify the U.S. Coast Guard and the MDOT PM within thirty 30 minutes of any restriction to waterborne traffic.

O. Update and provide to the MDOT PM all forms as required by MDOT and the U.S. Coast Guard.

P. Resolve discrepancies noted on the Contractor/Operator’s Inspection form (provided in Attachment A-II) within five calendar days.

Q. Perform VISUAL inspections of all electrical, mechanical, and hydraulic equipment at the start of each shift. Inform MDOT of any irregularities found immediately upon the completion of the inspection.

R. Provide signs identifying the Contractor as the operator of the bridges. These signs will be affixed to the door of the bridge houses.

S. Cost for attire, identification cards and providing and affixing the signs is included in the unit price for mobilization.

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1.2. Bridge Operator Duties

The Contractor shall be responsible for bridge operations as outlined in Attachment A-VI General Bridge Operating Manual for the Blossomland and Bicentennial Bascule Bridges.

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1.3. Custodial Duties

The Contractor shall be responsible for routine custodial services (at all towers) as outlined in Attachment A-III Custodial Duties of Bridge Operators.

The Contractor must furnish all supplies required for routine custodial duties as outlined in Attachment A-l Approved Materials List. Only materials conforming to the requirements of the Approved Materials List shall be used in the Contract Activities. The MDOT PM, or designee, may reject any material not meeting specifications. The Contractor shall remove and replace all rejected materials. Any rejected material will be taken off the bridge property at once and not used on this Contract. Costs for removing and replacing rejected materials will be at the Contractor’s expense.

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1.4. Training

MDOT will train the Contractor PM in the operations of the bridges.

The Contractor will train bridge operator candidates to ensure a sufficient number of competent personnel are trained as bridge operators in accordance with the Contract. Training of bridge operators shall be accomplished through a training program mutually developed by MDOT and the Contractor.

A. The bridge operator candidates shall comply with all provisions of Attachment A-V Bridge Operator Qualifications as adopted by MDOT.

B. The training program shall include minimum operating procedures for the bridge, and contain information on Coast Guard Regulations, MDOT and Coast Guard authority, and emergency procedures.

C. The training program will be a minimum of eight (8) hours Classroom training and additional On-Site training on the bridges to be operated.

1. Classroom training shall include but not be limited to:

a) normal operational procedures,

b) emergency operational procedures,

c) communications procedures for telephone and marine radio,

d) form preparation, and contact procedures.

2. On-Site training will be conducted between 10:00 pm and 6:00 am Eastern Time or as approved by MDOT PM. Openings of the bridges for training purposes will be coordinated to minimize traffic disruption.

D. The Contractor must provide all training documentation and materials.

E. All Classroom and On-Site training and materials may be monitored by MDOT.

F. The Contractor’s training personnel will be responsible for training and performance testing of all bridge operators.

G. The Contractor must implement the final written and operational tests. Final written and operational tests must not be given to any bridge operator candidate unless and until the Contractor has certified in writing to MDOT that the Candidate has received all training that is required by the Contract.

H. MDOT reserves the right to verify the competency of any Contractor’s personnel at any time.

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1.5 Miscellaneous Requirements

A. At the beginning of the Contract the Contractor must inventory the bridge for all the equipment on the "Monthly Equipment Check List" form (see Attachment A-II, Forms) and sign the form as receiving the equipment. At the first of each month the Contractor must survey the equipment and fill out a Monthly Equipment Check List, sign it and submit to the MDOT PM. The Contractor shall replace any missing or damaged equipment at their cost. If such discrepancies are not resolved within five calendar days, MDOT will correct the deficient items and the Contractor will be billed for the entire cost incurred by MDOT to correct such items. A determination of non-conformance and assessment of liquidated damages will be added to MDOT’s cost and billed to the Contractor as detailed in Section 8 Liquidated Damages.

B. The Contractor must establish and maintain bridge operator’s reports, unnecessary bridge openings, contractor’s/operator’s inspection logs, equipment check ED lists, and accident incident reports (see Attachment A-II Forms).

C. Attachment A-II includes all forms required for reporting purposes for this Contract. The Contractor shall reproduce/copy forms on Attachment A-II for use during the Contract term. Completed forms must be legible.

D. Preservation of Property: The Contractor must take reasonable effort to protect MDOT property from damage. Negligence by the Contractor may require payment to correct these damages.

E. Employee Safety: The Contractor must have a safety program in compliance with all safety policies/ regulations/standards and practices of Michigan Occupational Safety and Health Administration (MIOSHA). The Contractor must provide all employees, the appropriate personal protective equipment to safely accomplish each task assigned. At a minimum the Contractor must provide safety equipment needed at various locations on the bridge sites that includes: life preservers, safety vests, hard hats, safety shoes, safety glasses, latex gloves for cleaning, 6-foot step ladder.

F. Utilities: MDOT will pay utility charges required for the operation of the bridge.

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2. Acceptance

2.1. Acceptance, Inspection and Testing

The State will use the following criteria to determine acceptance of the Contract Activities:

A. Weekly inspection of all shifts must be conducted by the Contractor’s Program Manager using the "Contractor/ Operator’s Inspection” form (provided in Attachment-II) to ensure continued compliance with this specification. This form is to be signed, dated as today and time, and submitted to the MDOT Program Manager at the first of each month.

B. MDOT may make inspections at various times, and shifts, using the "Contractor's Operations Inspection" form. The Contractor must immediately resolve any and all discrepancies. Failure to resolve noted discrepancies within five calendar days will result in a determination of non-conformance and assessment of Liquidated Damages as detailed in Section 7.

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3. Staffing MDOT reserves the right to temporarily and/or partially staff the bridges with state employees in lieu of contracted employees. At least 28 days’ notice will be given to the Contractor before replacement of Contractor’s personnel. Any cost adjustments to the Contract will be addressed when notice is given for use of state employees.

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3.1 General Staffing Requirements

A. The Contractor must assure that all bridge operators employed are trained consistent with Section 1.4. Training. All such employees must have sufficient skill and experience to properly perform the work assigned to them, or the MDOT Program Manager may take action as prescribed below.

B. The Contractor must at all times be responsible for the conduct and discipline of its employees. Whenever the MDOT Program Manager shall determine that any person employed by the Contractor is not performing consistent with the contract requirements such person must, upon notice to the Contractor, be removed from the Contract and must not be re-employed on the Contract without written consent of the MDOT Program Manager. Should the Contractor fail to remove such persons, the MDOT Program Manager may withhold all payments, which are or may become due until such determinations are complied with.

C. The Contractor must respond in writing within ten days to the MDOT Program Manager answering any complaints filed by the public, the Coast Guard, or MDOT concerning the conduct of employees or operation of the bridges.

D. The Contractor must comply with the United States Department of Labor Standards Act. Employees working under the Contract must be considered as non-exempt workers and covered by minimum wage, overtime, record-keeping and child labor standards as established by this act. The Contractor must compensate its employees a minimum hourly rate equal to or greater than the current Federal minimum wage.

E. The Contractor must establish drug and alcohol program procedures as outlines in Attachment A-IV.

F. The Contractor must guarantee that the personnel hired is able to perform duties as outlined in Attachment A-III, Custodial Duties of Bridge Operators, and ensure the personnel hired must be able to follow procedures outlined in “General Bridge Operating Manual” (Attachment A-VI).

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3.2. Key Personnel

The Contractor must appoint a program manager(s) and bridge operators who will be directly responsible for the day-to-day operations of the Contract (“Key Personnel”). Key Personnel must be specifically assigned to the State account, be knowledgeable on the contractual requirements, and respond to State inquiries within 15 minutes.

At least one Contractor Key Personnel must be on-site at the Blossomland and Bicentennial Bascule Bridges 24 hours a day, 7 days a week from March 15 to December 15 each year.

The State has the right to recommend and approve in writing the initial assignment, as well as any proposed reassignment or replacement, of any Key Personnel. Before assigning an individual to any Key Personnel position, Contractor will notify the State of the proposed assignment, introduce the individual to the State’s Project Manager, and provide the State with a resume and any other information about the individual reasonably requested by the State. The State reserves the right to interview the individual before granting written approval. In the event the State finds a proposed individual unacceptable, the State will provide a written explanation including reasonable detail outlining the reasons for the rejection. The State may require a 30-calendar day training period for replacement personnel.

Contractor will not remove any Key Personnel from their assigned roles on this Contract without the prior written consent of the State. The Contractor must notify the MDOT PM at least 14 calendar days before removing or assigning new Key Personnel. The Contractor’s removal of Key Personnel without the prior written consent of the State is an unauthorized removal (“Unauthorized Removal”). An Unauthorized Removal does not include replacing Key Personnel for reasons beyond the reasonable control of Contractor, including illness, disability, leave of absence, personal emergency circumstances, resignation, or for cause termination of the Key Personnel’s employment. Any Unauthorized Removal may be considered by the State to be a material breach of this Contract, in respect of which the State may elect to terminate this Contract for cause under the Termination for Cause section of the Standard Contract Terms. It is further acknowledged that an Unauthorized Removal will interfere with the timely and proper completion of this Contract, to the loss and damage of the State, and that it would be impracticable and extremely difficult to fix the actual damage sustained by the State as a result of any Unauthorized Removal. Therefore, Contractor and the State agree that in the case of any Unauthorized Removal in respect of which the State does not elect to exercise its rights under Termination for Cause, Contractor will issue to the State the corresponding credits set forth below (each, an “Unauthorized Removal Credit”):

A. For the Unauthorized Removal of any Key Personnel designated in the applicable Statement of Work, the credit amount will be $10,000.00 per individual if Contractor identifies a replacement approved by the State and assigns the replacement to shadow the Key Personnel who is leaving for a period of at least 30-calendar days before the Key Personnel’s removal.

B. If Contractor fails to assign a replacement to shadow the removed Key Personnel for at least 30-calendar days, in addition to the $10,000.00 credit specified above, Contractor will credit the State $500.00 per calendar day for each day of the 30-calendar day shadow period that the replacement Key Personnel does not shadow the removed Key Personnel, up to $10,000.00 maximum per individual. The total Unauthorized Removal Credits that may be assessed per Unauthorized Removal and failure to provide 30-calendar days of shadowing will not exceed $25,000.00 per individual.

Contractor acknowledges and agrees that each of the Unauthorized Removal Credits assessed above: (i) is a reasonable estimate of and compensation for the anticipated or actual harm to the State that may arise from the Unauthorized Removal, which would be impossible or very difficult to accurately estimate; and (ii) may, at the State’s option, be credited or set off against any fees or other charges payable to Contractor under this Contract.

The Contractor must identify the Key Personnel, indicate where they will be physically located, describe the functions they will perform, and provide current chronological résumés.

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1) Bridge Operator(s) for Bicentennial (Name, Cell Phone, Work Phone, E-mail):

2) Bridge Operator(s) for Blossomland (Name, Cell Phone, Work Phone, E-mail):

3) Current Chronological Résumés (attach):

3.3. Contractor Program Manager

The Contractor must appoint a Program Manager responsible for handling all Contract related issues and obligations.

C. The Contractor PM shall be responsible for supervising, training, scheduling and coordinating the Contract with the MDOT PM. Duties shall include, but not be limited to,

1) Preparing and submitting billings to MDOT.

2) Ensuring all required insurance remain in effect.

3) Ensuring the Contractor has sufficient personnel and supplies to perform Contract Activities.

4) Overseeing bridge operations on the job site.

5) Assigning bridge operators to work shifts.

6) Summarizing daily activities in the logbook.

7) Notifying the MDOT PM, or designated MDOT representative, if any mechanical or electrical abnormalities occur.

D. The Contractor PM must have complete authority over the bridge operators and will be responsible for employee removal, discipline, schedule etc.

E. The Contractor PM, or designee, will be the contact person for the Contractor in case of problems, disputes, etc.

F. The Contractor’s PM, or designee, must have the authority to take immediate action to correct conditions determined by MDOT to be unsafe or not in compliance with the Contract.

G. The Contractor PM may serve as a bridge operator.

The MDOT PM must be advised at all times as to identification and means of contacting the PM.

The Contractor must notify the Contract Administrator at least 14 calendar days before removing or assigning a new Contractor PM.

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1. Contractor Program Manager:

2. Mobile Phone:

3. Office Phone:

4. E-mail:

3.3. Contractor Representative

The Contractor must appoint at least one individual specifically assigned to State of Michigan accounts, who will respond to State inquiries regarding the Contract Activities, answer questions related to ordering and delivery, etc. (the “Contractor Representative”). The Contractor Representative must be available for calls 24 hours a day, 7 days a week and 365 days a year.

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1. Contractor Representative:

2. Mobile Phone:

3. Office Phone:

4. E-mail:

The Contractor must notify the MDOT PM at least 14 calendar days before removing or assigning a new Contractor Representative.

3.4. Work Hours

The Contractor must provide Contract Activities 24 hours a day, 7 days a week, March 15 to December 15 each year. The Contractor shall utilize a schedule that covers two 12-hour shifts per day, which allows for 24 hours a day, 7 days a week coverage. The shift plan offers a rotating option for every other weekend off, essentially giving two operators (Team 1) a 60-hour workweek and the other two operators (Team 2) a 24-hour workweek. The second week each team flips so that the team who had 60 hours now works 24 hours and 24 hours now works 60 hours. Daytime operators only work the day and evening operators only work at night unless they are needed to complete shift gaps due to time off or vacation. Supervisors, PMs, and the Owner will do routine visits and surprise drop-in visits to make ensure all Contract specifications are being met.

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3.5. Organizational Chart

The Bidder must provide an overall organizational chart that details staff members, by name and title, and subcontractors - either in this response box or identified here as an attachment to this RFP labeled as Contractor’s Organizational Chart.

3.6. Disclosure of Subcontractors

If the Contractor intends to utilize subcontractors, the Contractor must disclose the following:

A. The legal business name; address; telephone number; a description of subcontractor’s organization and the services it will provide; and information concerning subcontractor’s ability to provide the Contract Activities.

B. The relationship of the subcontractor to the Contractor.

C. Whether the Contractor has a previous working experience with the subcontractor. If yes, provide the details of that previous relationship.

D. A complete description of the Contract Activities that will be performed or provided by the subcontractor.

E. Of the total bid, the price of the subcontractor’s work.

Bidder must provide detailed information as requested in the requirement(s):

The legal business name, address, telephone number of the subcontractor(s):

A description of subcontractor’s organization and the services it will provide and information concerning subcontractor’s ability to provide the Contract Activities:

The relationship of the subcontractor to the Bidder:

Whether the Bidder has a previous working experience with the subcontractor.

If yes, provide the details of that previous relationship:

A complete description of the Contract Activities that will be performed or provided by the subcontractor:

Of the total bid, the price of the subcontractor’s work:

3.7. Security

Contractor must maintain a secure environment while servicing the facility. The Contractor must comply with all security regulations and special working conditions as required by MDOT:

A. No more than two Contractor personnel shall be in the tower at one time. No one is allowed into the facility other than those individuals responsible for performing services.

B. Failure to maintain a secure environment will result in issuance of a complaint and possible cancellation of the Contract.

C. The MDOT PM may require the Contractor to immediately remove any employee(s) from the agency's premises for just cause. The Contractor will assume any and all responsibilities relating to this removal.

D. The MDOT PM must make final determination of a Contractor’s employee’s suitability for assignment to a specific location. Problems of this nature will be addressed with the Contractor's management.

E. Contractor personnel must be dressed in MDOT approved shirts with collars and sleeves, long pants, and safety shoes when on MDOT property. The Contractor’s name or logo and the employee's name must be printed or stitched on the shirt or on a patch sewn on the shirt. All shirts must be one standard color.

F. A photo identification card shall be issued to all Contractor personnel, which must be worn on MDOT property. The ID card must include the individual’s photo, name, job title and company’s name and must be approved by the MDOT PM.

G. A security alarm system is not currently installed in the bridge facility. However, if a security alarm system is installed during the Contract term, the following requirements will apply:

1) The Contractor must properly set the security alarm when leaving.

2) Failure to set the security alarm will result in issuance of a complaint and possible cancellation of the Contract.

3) The Contractor will be responsible for any cost incurred from either a security service or a local police department for false alarms caused by failure by the Contractor to properly set the security alarm.

The Contractor must explain any additional security measures in place to ensure the security of State facilities. The State may require the Contractor’s personnel to wear State issued identification badges.

The Contractor’s staff may be required to make deliveries to or enter State facilities. The Contractor must: (a) explain how it intends to ensure the security of State facilities, (b) whether it uses uniforms and ID badges, etc., (c) identify the company that will perform background checks, and (d) the scope of the background checks.

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Bidder must describe how they comply with the above requirement(s):

4. Project Management

4.1. Project Plan

The Contractor will carry out this project under the direction and control of the specified Program Manager. Within 14 calendar days of the Effective Date, the Contractor must submit a project plan to the MDOT Program Manager for final approval. The plan must include: (a) the Contractor's organizational chart with names and title of personnel assigned to the project, which must align with the staffing stated in accepted proposals; and (b) the project breakdown showing sub-projects, tasks, and resources required.

A project work plan for managing implementation of the services must be specified and submitted to the MDOT Program Manage for review and approval.

Project management plan must identify methods, tools and processes proposed to oversee the project, address issues and changes as may arise, and keep the appropriate parties apprised of progress.

Contractor’s Work Plan, which must be approved prior to commencement of work, must include the following:

A. Material List (Attachment A-I) - indicating description, age, manufacturer, model and serial number of each piece. Materials must meet or exceed all requirements defined in Attachment A-I. All materials must be in the Contractor’s possession, available for use and fully operational, prior to Contract award.

B. Schedule of Operations - personnel expected to complete work on the Contract.

C. Name(s) of supervisors – 24-hour contact telephone numbers and best contact times.

D. Proof of Insurance as defined in the Standard Terms and Conditions must be provided to State of Michigan prior to Contract award.

E. Any misrepresentation by the Contractor of its ability to perform the work described in this RFP will be grounds for immediate termination. In such case, the Contract will be awarded to the next qualified bidder who can demonstrate the ability to perform the work.

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Bidder must provide detailed information as required above – either in this response box or identified here as an attachment to this RFP.

4.2. Meetings

Contractor must meet with the MDOT Program Manager and other department project-leads, on a basis to be established by Program Manager and the Contractor, but must meet quarterly, at a minimum, for the purpose of reviewing progress and providing necessary guidance to the Contractor in solving problems that arise, and to continuously communicate with the agency/departmental project-lead.

The Contractor must attend the following meetings:

A. Kick Off Meeting B. Annual Service Review and Progress Meeting. The MDOT PM may request an audit of the services provided each year under the specifications, terms, and conditions of the Contract.

1) The audit will consist of an evaluation of the total service quality, including responsiveness, timeliness of required reporting, and any other specifics as required under the terms of the Contract. The results of the audit along with Contract recommendations will be published by MDOT Purchasing Unit and distributed to the respective Agency(s).

2) An unsatisfactory audit may result in cancellation of the Contract as provided under the Standard Contract Terms, Section 23, Termination for Cause. Further, should the Contract be cancelled for cause, the Contractor so cancelled will not be allowed to participate in request(s) for continuation of this service.

3) Should the Contractor desire, a meeting will be arranged between all concerned parties within 10 calendar days of the date the Contractor received, or could have reasonably been expected to receive, his/her copy of the audit. This meeting will provide an opportunity for the Contractor to present his/her reactions to audit recommendations, including but not limited to:

a) Timely and accurate submission of invoices

b) Implementation and adherence to contractor’s safety plan

c) Quality of safety and operations training

d) Emergency response, and MDOT/US Coast Guard/County/City notification procedures

e) Timeliness of adjustments based on MDOT/County/City comments

f) Coordination with MDOT/County/City maintenance activities

g) Maintaining clean facilities The State may request other meetings, as it deems appropriate.

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4.3. Reporting

The Contractor must submit, to the Program Manager, the following written reports (Provided in Attachment A-II):

A. Bridge Operator’s Report B. Unnecessary Bridge Openings C. Contractor/Operator’s Inspection D. Equipment Check List E. Accident Incident Report

The above listed reports are desired on a monthly basis. The Contractor must explain its reporting capabilities and any reporting that is included in its proposal. The reports can either be hand-written or typed (preferred). The reports need to be electronically sent to the MDOT Program Manager.

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The Contractor must explain any reporting that is included in its proposal and any additional reporting capabilities:

4.4. Record Keeping

In addition to, or superseding, Standard Contract Terms, Section 36, Records Maintenance, Inspection, Examination, and Audit, the Contract must:

A. Establish and maintain accurate records, in accordance with generally accepted accounting principles, of all expenses incurred for which payment is sought or made under the Contract and said records to be hereinafter referred to as the "records". Separate accounts must be established and maintained for all costs incurred under the Contract.

B. Maintain the records for at least three years from the date of final payment made by MDOT under the Contract. In the event of a dispute with regard to the allowable expenses or any other issue under the Contract, the Contractor must thereafter continue to maintain the records at least until that dispute has been finally decided and the time for all available challenges or appeals of that decision has expired.

C. Permit MDOT, or its representative, to inspect, copy, or audit the records at any reasonable time after giving reasonable notice. The Contractor will provide final accounting, which MDOT may audit. Any audit will be for information only and will not affect the lump sum payments made under the Contract.

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5. Ordering

5.1. Authorizing Document

The appropriate authorizing document for the Contract will be a State Issued Purchase Order which must be approved by the MDOT Program Manager to order any deliverables under the Contract.

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6. Pricing. See Schedule B for submitting pricing. Prices are firm for the entire length of the Contract.

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7. Invoice and Payment

7.1. Invoice Requirements

A. The Contractor must submit monthly billings on the Contractor’s letterhead for a lump sum payment for the services performed during the prior month billing period. The monthly billing period is defined to be from the sixteenth day of a month to the fifteenth day of the following month. In the event that the date of execution of the Contract falls within a billing period, the Contractor will be reimbursed on a prorated basis for the billing period assuming a 30-day billing period. For those occasional navigational transportation openings during the months of December, January and February billings will be submitted on a weekly basis for a per opening payment.

B. All billings submitted to MDOT must include: (a) date; (b) Delivery Order number; (c) quantity; (d) description of the Contract Activities; (e) unit price; (f) total price and (h) contract number. Overtime, holiday pay, and travel expenses will not be paid.

C. A lump-sum mobilization fee shall be paid each year at the beginning of the contract year. Mobilization is defined as a summary of all costs for annual start-up including, but not limited to, training, relocation expenses (if applicable), purchase of custodial supplies, equipment, safety equipment, clothing, materials, insurance, office overhead, and supplies, etc.

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7.2. Payment Methods

The State will make payment for Contract Activities via Electronic Funds Transfer (EFT).

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As required by MCL 18.1283, the Contractor must electronically register with the State at www.michigan.gov/cpexpress to receive EFT payments.

7.3 Payment terms. Payment terms are net 45 days.

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8. Liquidated Damages Late or improper completion of the Contract Activities will cause loss and damage to the State and it would be impracticable and extremely difficult to fix the actual damage sustained by the State. Therefore, if there is late or improper completion of the Contract Activities the State is entitled to collect liquidated damages.

When the State determines that the Contractor has failed to conform to the terms of the Contract, as set forth in this contract, after the third written warning an assessment of liquidated damages may be made by the State against the Contractor. Sums assessed as liquidated damages shall not be considered penalties, but as damages due the State from the Contractor for failure to complete the work as contractually required. It is agreed that because of the potential damage to the public and because actual damages would be virtually incapable of determination, both as to amount and existence, at the time of the breech, liquidated damages shall be assessed according to the following:

A. Abandonment of Bridge In the event the bridge is left unattended (unattended means not on the bridge site) by a bridge operator or if the MDOT Program Manager or representative finds it necessary to remove a bridge operator due to his inability to perform the duties listed in the Contract as determined by the MDOT Program Manager, the Contractor must replace the bridge operator within one hour. After the third incident, an assessment shall be made of $200.00 per hour for each continuous whole hour the bridge is left unattended.

For purposes of this section, if the bridge is left unattended, the MDOT Program Manager shall assume that the bridge operator abandoned the bridge at the time of the last entry in the bridge opening log unless other compelling evidence can be presented to show otherwise.

B. Other Cases of Non-Conformance All other cases of non-conformance may result in an assessment of up to $200.00 per occurrence after the third written warning as determined by the MDOT Program Manager, until conformance is achieved.

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