B1._25-323_REBID_1_IFB.pdf

CALIFORNIA STATE TRANSPORTATION AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF MOTOR VEHICLES

ADMINISTRATIVE SERVICES DIVISION

P.O. BOX 932382

SACRAMENTO, CA 94232-3820

California Relay Telephone Service for the deaf or hard of hearing from TDD Phones: 1-800-735-2929; from Voice Phones: 1-800-735-2922

ADM 668 (REV. 1/2019) DMVWeb A Public Service Agency

25-323 REBID 1

INVITATION FOR BID

Notice to Prospective Bidders

February 20, 2026

You are invited to review and respond to this Invitation for Bid (IFB) entitled 25-323 REBID 1 – Presort Mail Services for the Department of Motor Vehicles (DMV). This IFB is advertised in the California State Contracts Register through Cal eProcure at:

http://www.caleprocure.ca.gov or http://www.dgs.ca.gov

Please note that you must register with Cal eProcure in order to download IFB packages and any other provided documents from the Cal eProcure website.

Bidders are advised to check the Cal eProcure website for addendums, modifications, and updates to the bid documents. The Department of Motor Vehicles (DMV) is not responsible for failure of the prospective bidder to check for any bid document updates, changes, or answers to questions posted on Cal eProcure. Failure to periodically check the website will be at the bidder's sole risk.

In submitting your bid, you must comply with the instructions found herein. Your bid must be submitted via email (the DMV will not accept a mailed or hand-delivered bid).

Note that all agreements entered into with the State of California will include by reference General Terms and Conditions and Contractor Certification Clauses that may be viewed and downloaded at Internet site:

http://www.dgs.ca.gov

In the opinion of the DMV, this IFB package is complete and without need of explanation. The contact person for this IFB is:

Allison Stanek Department of Motor Vehicles

Phone: (916) 818-2848 Email: allison.stanek@dmv.ca.gov

Please note that no verbal information given will be binding upon the state unless such information is issued in writing as an official addendum.

ALLISON STANEK

Contract Administrator http://www.dgs.ca.gov/

IFB/25-323 REBID 1

TABLE OF CONTENTS

SECTION

BIDDER REQUIREMENTS AND INFORMATION

1. Purpose and Description of Services

2. Bidder Qualifications

3. Schedule of Events

4. Written Questions

5. Submission of Bid

6. Bid Opening

7. Disposition of Bids

8. Evaluation and Selection

9. Subcontractors

10. Notice of Intent to Award Contract

11. Protest

12. Notice of Contract Award

13. Standard Conditions of Service

14. Required Documents (Awarded Contractor)

15. Bid Preference(s)

16. Bid Incentive(s)

17. Generative Artificial Intelligence (GenAI)

STANDARD AGREEMENT FORM (SAMPLE)

EXHIBIT A – Scope of Work

EXHIBIT B – Budget Detail and Payment Provisions

EXHIBIT C – General Terms and Conditions

EXHIBIT D – Special Terms and Conditions

EXHIBIT E – Additional Provisions

EXHIBIT F – Sample Monthly Report

APPENDIX A The United States Department of Transportation Standard Title VI/Non-Discrimination Assurances DOT Order No. 1050.2A

APPENDIX E The United States Department of Transportation Standard Title VI/Non-Discrimination Assurances DOT Order No. 1050.2A

REQUIRED BID DOCUMENTS CHECKLIST

ATTACHMENT 1 – Bid/Bidder Certification Sheet

ATTACHMENT 2 – Cost Sheet

ATTACHMENT 3 – Payee Data Record

ATTACHMENT 4 – Bidder Declaration & Subcontractor/Supplier List

ATTACHMENT 5 – Darfur Contracting Act

ATTACHMENT 6 – California Disabled Veteran Business Enterprise Participation Requirement and Incentive

ATTACHMENT 7 – California Civil Rights Laws Certification

ATTACHMENT 8 – Iran Contracting Act

1. Purpose and Description of Services

A. Presort Mail Services for the DMV. Term: June 1, 2026 or upon contract approval, whichever occurs later, through May 31, 2029. See Exhibit A, Scope of Work, for a complete description of services.

B. The award of this solicitation will result in two (2) contracts based upon the lowest responsive/responsible bid for the cumulative total of all the workloads. One (1) contract will be for the CLPI Mail Sorting Workloads. A second contract will be for the Letter Mail Workloads. Both contracts will be awarded to the same bidder based upon the lowest of cumulative total, irrespective of the individual subtotals of the workload bid amounts.

2. Bidder Qualifications

A. On March 4, 2022, Governor Gavin Newsom issued Executive Order N-6-22 regarding Economic Sanctions against Russia and Russian entities and individuals. “Economic Sanctions” refers to sanctions imposed by the U.S. government in response to Russia’s actions in Ukraine, as well as any sanctions imposed under state law. By submitting a bid, the bidder represents that it is not a target of Economic Sanctions. Should the State determine, at any time prior to the execution of a contract, that the bidder is a target of Economic Sanctions or is conducting prohibited transactions with sanctioned individuals or entities, that shall be grounds for rejection of the bidder’s bid by the DMV.

B. The nature of the information contained in and the processing of DMV mail is of critical importance to the State of California and to the health and safety of its motoring citizens.

Therefore, bidders must demonstrate to the satisfaction of the DMV, their ability to provide the required services by submitting the following with their bid:

(1). Written evidence of a secured facility located within thirty (30) miles of the DMV Mail Operations Unit located at 2415 First Avenue, Sacramento, CA 95818, with a minimum of 3,000 square feet for DMV property storage and processing areas (see Exhibit A, Scope of Work for requirements). Bidder shall provide a copy of the ownership document, lease agreement, or abstract of the lease as evidence of having a (proposed) place of business, at the time of award (included in their bid documents).

(2). Written evidence of at least three (3) government agency or private enterprise references for whom the bidder has successfully performed mail-sorting services that include similar types of mail workloads as listed below. All references shall include agency/business name, address, phone number, contact person, and the daily and monthly volumes of mail sorted for each entity. References must be included in the bid package. Bidders must have experience sorting the following types of mail:

a. Parcel Select Lightweight flat envelopes or Ground Advantage.

b. Comingled Presorted First Class Permit letter mail.

c. Presorted Pre-Metered First Class letter mail.

(3). Written evidence of the following:

a. Evidence that their company has been actively in business for a minimum of three (3) years, as of January 1, 2019. Corporations, Limited Liability Companies (LLCs), and Limited Partnerships (LPs) must provide written proof of a currently active registration with the California Secretary of State. The Secretary of State Certificate of Status or a Fictitious Business Name Statement must be included with the bid documents.

b. Evidence of currently valid Permit Indicia for use in large mailings of Ground Advantage, Comingled Presorted First Class Permit letter mail and Presorted Pre-Metered First Class letter mail. Evidence of permit is to be included in the bid package.

c. Evidence of historical USPS documentation that their company has continuously sorted similar types of mail as noted above, in volumes of at least 300,000 mail pieces per day, throughout the previous twelve (12) months, while meeting USPS requirements.

d. NOTE: Print-to-mail workloads in which the bidder creates, prints, folds and mails mail pieces are not analogous to the DMV mail workloads and as such shall not be submitted, as they will not be considered as evidence that is responsive to this bid effort.

e. Evidence that the Mail Service Provider is authorized by the USPS to submit permit mail under the USPS Mail Anywhere program in order to process DMV’s CLPI first class permit letter mail workload. The DMV is looking for a comingled process in order to allow the best sortation and discount available with a fixed price to the DMV for all pieces.

(4). If the bidder is submitting a bid based on a prime contractor/subcontractor relationship, the subcontractor’s qualifications shall not be used to satisfy the minimum bidder qualifications.

(5). The bidder shall provide a valid Motor Carrier Permit issued by the California DMV at the time of the bid opening.

(6). The awarded contractor shall furnish a performance bond in the amount of $300,000.00.

3. Schedule of Events

Event Date Time

(1). IFB available to prospective bidders: 2/20/2026 N/A

(2). Written questions regarding IFB are due by:

(Note: See additional info in Section 4.)

3/10/2026 10:00 a.m.

(3). Written responses to questions released by: 3/17/2026 5:00 p.m.

(4). Final date for bid submission:

(Note: See additional info in Section 5.)

3/24/2026 N/A

(5). Date of bid opening:

(Note: See additional info in Section 6.)

3/25/2026 10:00 a.m.

(6). Proposed start date of contract: 6/1/2026 N/A

4. Written Questions

A. Submit all written questions via email to the contact person indicated on the cover page of this IFB package no later than the date and time specified in the Schedule of Events. Written responses to IFB questions will be released by the date and time specified in the Schedule of Events and viewable in the online project advertisement in Cal eProcure at:

http:/www.caleprocure.ca.gov.

5. Submission of Bid

A. Bids must be received via email no later than the date specified in the Schedule of Events. The DMV will not accept any bids that are mailed or hand-delivered.

(1). Bids shall be emailed in non-fillable PDF format (one [1] file that includes all required bid documents) to DMVBIDS@dmv.ca.gov. Only bids sent to this email will be considered.

Bids that contain any bid information in the body of the email may be rejected. Bids shall be sent to the email address listed above and contain the following information in the Subject Line only:

a. Bid # 25-323 REBID 1 for ALLISON STANEK for PRESORT MAIL SERVICES FOR THE DMV Due: 3/24/2026 BY 11:59 P.M.

1. Bids may be deemed non-responsive if the subject line does not contain the above information.

(2). Emails shall not exceed one hundred (100) megabytes (MB) in size.

(3). Emailed bids will not be opened until after the date specified in the Schedule of Events.

(4). Bidders that send bid submission emails that are successfully received by the DMV at the above email address will receive an automated confirmation of bid received email response (the response will only acknowledge the receipt of an email and not identify the bid number or service/project description). In the event a bidder does not receive an automated confirmation of bid received email response after sending a bid submission email to the above email address, the bidder shall be responsible for confirming the DMV’s receipt of their bid with the contact person indicated on the cover page of this IFB package.

B. Bids must be received by the DMV no later than the date specified in the Schedule of Events.

Any bid received after the specified due date shall be rejected.

C. Bids shall include all required bid documents identified in the Required Bid Documents Checklist. Only submit the required bid documents with your bid, not the entire IFB package. Bids not including the required bid documents shall be deemed non-responsive. A non-responsive bid is one that does not meet the basic bid requirements.

D. Bidders are responsible for ensuring the accessibility and legibility of the submitted documents.

Bids that are not accessible or legible may be rejected.

E. All documents requiring a signature must bear an original signature of a person authorized to bind the bidding firm.

F. Bids must be submitted for the performance of all the services described herein. Any deviation from the work specifications shall not be considered and shall cause a bid to be rejected.

G. Costs for developing bids in anticipation of award of the contract are entirely the responsibility of the bidder and shall not be charged to the DMV.

H. An individual who is authorized to bind the bidding firm contractually shall sign the Bid/Bidder Certification Sheet (Attachment 1). The signature must indicate the title or position that the individual holds in the firm. An unsigned bid may be rejected.

I. A bidder may modify a bid after its submission by withdrawing its original bid and resubmitting a new bid prior to the bid submission deadline. Bidder modifications offered in any other manner, oral or written, shall not be considered.

mailto:DMVBIDS@dmv.ca.gov

J. A bidder may withdraw their bid by submitting a written withdrawal request to the DMV, signed by the bidder or an authorized agent. A bidder may thereafter submit a new bid prior to the bid submission deadline. Bids may not be withdrawn without cause subsequent to bid submission deadline.

K. The DMV may modify this IFB prior to the date fixed for submission of bids by the issuance of an addendum to all parties who received a bid package.

L. Bidders are cautioned to not rely on the DMV during the evaluation to discover and report to the bidder any defects and errors in the submitted documents. Bidders, before submitting their documents, should carefully proof them for errors and adherence to the IFB requirements.

M. Where applicable, bidders should carefully examine work sites and specifications. Bidders shall investigate conditions, character, and quality of surface or subsurface materials or obstacles that might be encountered. No additions or increases to the contract amount shall be made due to a lack of careful examination of work sites and specifications.

N. All documents submitted in response to this solicitation will become the property of the State of California and may be subject to the California Public Records Act (Government Code section 6250 et seq.). This includes any contact information within the documents, including that of references. Additionally, to the extent that a bidder believes its bid contains trade secret or proprietary information intended to be confidential, it is the bidder’s responsibility to identify and redact such information. A separate redacted copy of the bid must be submitted along with the original unredacted bid, and it will be the bidder’s responsibility to defend any redactions should a requester dispute them under the Public Records Act. In the absence of a pre-redacted bid, the DMV will treat the entire bid as a public record, except any information the DMV is required to redact under California law.

6. Bid Opening

A. If you plan to attend the public bid opening, you must email the contact person indicated on the cover page of this IFB no less than 24 hours prior to the bid opening date and time. The contact person will email the bid opening information, held virtually through Microsoft Teams.

7. Disposition of Bids

A. All documents submitted in response to this IFB shall become the property of the State of California, and shall be regarded as public records under the California Public Records Act (Government Code Section 6250 et seq.). However, the contents of all proposals, draft bids, correspondence, agenda, memoranda, working papers, or any other medium which discloses any aspect of a bidder's bid, shall be held in the strictest confidence until notice of award is released. The content of all working papers and discussions relating to a bid shall be held in confidence indefinitely, unless the public's interest is best served by an item’s disclosure because of its direct pertinence to a decision, agreement, or evaluation of a bid.

8. Evaluation and Selection

A. Each bid shall be checked for the presence or absence of required information in conformance with the submission requirements of this IFB.

B. The DMV shall put each bid through a process of evaluation to determine its responsiveness to the DMV's needs.

C. A bidder may be deemed not responsible and their bid may be rejected if they have previously been terminated for cause/breach for the same or similar services at the location designated in this IFB.

D. All bids may be rejected whenever the DMV determines that the cost is not reasonable or otherwise in the best interest of the DMV. There is no requirement to award a contract if, in the opinion of the DMV, no bids were received containing a reasonable contract price or if there is another business-based reason not to make an award.

E. Bids that contain false or misleading statements, or which provide references that do not support an attribute or condition claimed by the bidder, may be rejected. If, in the opinion of the DMV, such information was intended to mislead the DMV in its evaluation of the bid, and the attribute, condition, or capability is a requirement of this IFB, it shall be the basis for rejection of the bid.

F. A bid may be rejected if it is conditional or incomplete. The DMV may reject any or all bids and may waive any immaterial deviation in a bid. The DMV's waiver of immaterial defect shall in no way modify the IFB document or excuse the bidder from full compliance with all requirements if awarded the contract.

G. A bid may be rejected if it contains any alterations of form or other irregularities of any kind.

The DMV does not accept alternate contract language from prospective contractors. Bids with such language shall be considered a counter proposal and shall be rejected. The State’s General Terms and Conditions (GTC) are not negotiable. The GTC may be viewed on the internet at: http://www.dgs.ca.gov.

H. The final selection shall be made on the basis of the lowest responsible responsive bid. In the event there is tie, each of the tied bidders shall be contacted by the contact person indicated on the cover page of this IFB regarding a date and time for a flip of a coin. The bidder whose bid was received first shall make the call. Bidders or their authorized representative(s) are allowed to be present for the flip of the coin.

9. Subcontractors

A. No subcontracting will be allowed to circumvent competitive bidding. A certified Small Business/Microbusiness, Small Business/Nonprofit Veteran Service Agency or a certified Disabled Veteran Business Enterprise will only be permitted to subcontract in order to meet Department requirements and/or preferences. The subcontracting services and amount shall not exceed twenty-five percent (25%) of the bid. The Contractor shall be solely responsible for fulfilling the requirements of the bid. If it is anticipated that subcontractors will be used, the bid must include the name(s) of person(s) or firm(s), and must specify the portions and monetary percentages of the work to be done by them.

10. Notice of Intent to Award Contract

A. Upon written request by any bidder via email prior to the date of bid opening specified in the Schedule of Events, the DMV shall email bidders and post in a public accessible place, a written notice of intent to award contract no less than five (5) DMV business days prior to awarding the contract. All written requests must be submitted to and received by the contact person indicated on the cover page of this IFB prior to the date of bid opening.

B. Whenever a contract is awarded under a procedure which provides for competitive bidding, but the contract is not to be awarded to the lowest bidder, the DMV shall:

(1). Notify the lowest bidder in writing by email no less than five (5) DMV business days prior to the award of the contract.

11. Protest

A. If any bidder, prior to the award of the contract, files an initial protest with the DMV and the Department of General Services (DGS) on the grounds that the protesting bidder is the lowest responsive responsible bidder, the contract shall not be awarded until either the protest has been withdrawn or the Department of General Services has decided the matter.

B. Within five (5) calendar days after filing an initial protest with the DMV and DGS, the protesting bidder shall file a full and complete written statement with the DMV and DGS specifying the grounds for the protest, including: the IFB number, the name of the State agency involved, and the agency contract person. Protestants should also include their fax number if they have one.

C. A written protest must be sent by email to the DGS, Office of Legal Services (OLS) at OLSProtests@dgs.ca.gov, as well as the Contract Administrator listed on the cover letter of this

IFB.

12. Notice of Contract Award

A. The DMV shall email, fax, or mail bidding contractors a written notice of contract award.

13. Standard Conditions of Service

A. Following the release of the written notice of contract award, the DMV shall email, fax, or mail the awarded contractor a prepared contract for signature that includes a cover letter instructing the awarded contractor on how to proceed. The cover letter may request that additional information and/or required documents be provided by the awarded contractor before the contract can be fully executed.

B. Services shall be available on the expressed date set by the DMV after all approvals have been obtained and the contract is fully executed.

C. All performance under the contract shall be completed on or before the termination date of the contract.

D. No oral understanding or agreement shall be binding on either party.

14. Required Documents (Awarded Contractor)

A. Prior to approval of the contract, unless otherwise specified below, the awarded contractor shall provide the DMV with all of the following required documents within ten (10) calendar days after the contract has been forwarded to the awarded contractor for signature. If the awarded contractor fails to provide the DMV with all of the following required documents within the above specified number of calendar days after the contract has been forwarded to the awarded contractor for signature, the DMV may deem the awarded contractor as non-responsive and may rescind the contract award:

(1). Contractor Certification Clauses

a. The awarded contractor shall sign and submit to the DMV, page one (1) of the Contractor Certification Clauses (CCC) which can be found on the Internet at:

http://www.dgs.ca.gov.

(2). Insurance Requirements

a. When requested by the DMV, the awarded contractor shall provide the DMV with all of the following certificate(s) of insurance (Note: The DMV shall not be responsible for any premiums or assessments on insurance policies):

mailto:OLSProtests@dgs.ca.gov

1. Commercial General Liability

A. Coverage shall provide limits of not less than $1,000,000.00 per occurrence for bodily injury and property damage liability combined. The policy shall include coverage for liabilities arising out of premises operations, independent contractors, products/completed operations, personal and advertising injury and liability assumed under an insured contract. This insurance shall apply separately to each insured against whom claim is made or suit is brought subject to the Contractor’s limit of liability.

B. The insurance policy shall include the following additional insured endorsement that shall be under form acceptable to DGS, Office of Risk and Insurance Management (ORIM):

(1). The State of California, its officers, agents and employees are included as additional insured, but only with respect to work performed for the State of California.

2. Automobile Liability

A. Coverage shall provide limits of not less than $1,000,000.00 combined single limit per accident. Such insurance shall cover liability arising out of a motor vehicle including owned, hired, and non-owned motor vehicles.

(1). The insurance policy shall include the following additional insured endorsement that shall be under form acceptable to DGS, ORIM:

a. The State of California, its officers, agents and employees are included as additional insured, but only with respect to work performed for the State of California.

3. Cargo Liability

A. Coverage shall provide limits of not less than $300,000.00 covering DMV’s property while it is in the care, custody, or control of the awarded contractor.

4. Crime Insurance

A. Coverage shall provide limits of not less than $1,000,000.00 to protect the money and securities of the DMV from employee theft, forgery or alteration, and inside/outside theft of money and securities while it is in the care, custody, or control of the awarded contractor.

B. The insurance policy shall include the following additional insured endorsement that shall be under form acceptable to DGS, ORIM:

(1). The State of California, its officers, agents and employees are included as additional insured, but only with respect to work performed for the State of California.

C. The awarded contractor’s crime insurance policy shall name the DMV as loss payee. The awarded contractor shall provide a loss payable endorsement with the certificate of insurance.

5. Worker’s Compensation

A. Employer liability limits of not less than $1,000,000.00 are required if the awarded contractor employs any person, in any manner, that is subject to the Workers Compensation Laws of California. The awarded contractor shall maintain statutory workers compensation and employer’s liability coverage for all of its employees who will be engaged in the performance of the contract. If the awarded contractor does not employ any person, in any manner, so as to not become subject to the Workers’ Compensation laws of California, the awarded contractor shall contact the DMV Contract Administrator to request a Workers’ Compensation Exemption Certification form. This form shall be completed by the awarded contractor and submitted to the DMV prior to approval of the contract.

B. The awarded contractor’s workers compensation insurance policy shall be endorsed with a waiver of subrogation in favor of the State of California in the event the awarded contractor employs any person, in any manner, that is subject to the Workers Compensation Laws of California.

(3). Performance Bond

a. The awarded contractor shall provide a performance bond equal to $300,000.00 payable under the contract guaranteeing faithful performance of the work. The performance bond shall be issued by a corporate surety authorized to transact a general surety business in the State of California.

(4). Motor Carrier Permit

a. The awarded contractor shall provide a valid Motor Carrier Permit issued by the California DMV.

15. Bid Preference(s)

A. The following preferences are applicable to this IFB:

(1). Small Business Enterprise (SBE) Preference

a. SBE Preference information can be found at the following internet web site:

http://www.dgs.ca.gov.

(2). Non-Small Business (Non-SB) Preference

a. Non-SB preference information can be found at the following internet web site:

http://www.dgs.ca.gov (Note: Non-SB Preference cannot displace a direct award to a California certified Small Business or a California certified Micro Business).

16. Bid Incentive(s)

A. The following incentive is applicable to this IFB:

(1). Disabled Veteran Business Enterprise (DVBE) Participation Incentive

a. See Attachment 6 for DVBE Participation Incentive information (Note: DVBE Participation Incentive cannot displace a direct award to a California certified Small Business or a California certified Micro Business).

17. Generative Artificial Intelligence (GenAI)

A. The State of California seeks to realize the potential benefits of GenAI, through the development and deployment of GenAI tools, while balancing the risks of these new technologies.

B. Bidder must notify the State in writing if it: (1) intends to provide GenAI as a deliverable to the State; or (2), intends to utilize GenAI, including GenAI from third parties, to complete all or a portion of any deliverable that materially impacts: (i) functionality of a State system, (ii) risk to the State, or (iii) Contract performance. For avoidance of doubt, the term “materially impacts” shall have the meaning set forth in State Administrative Manual (SAM) § 4986.2 Definitions for GenAI.

C. Failure to report GenAI to the State may result in disqualification. The State reserves the right to seek any and all relief to which it may be entitled to as a result of such nondisclosure.

D. Upon notification by a Bidder of GenAI as required, the State reserves the right to incorporate GenAI Special Provisions into the final contract or reject bids that present an unacceptable level of risk to the State.

E. Government Code 11549.64 defines “Generative Artificial Intelligence (GenAI)” as an artificial intelligence system that can generate derived synthetic content, including text, images, video, and audio that emulates the structure and characteristics of the system’s training data.

The remainder of this page is intentionally left blank.

DO NOT COMPLETE OR SUBMIT WITH YOUR BID!

EXHIBIT A

SCOPE OF WORK

1. Contractor’s Full Business Name (to be completed by the DMV), hereafter referred to as the Contractor, agrees to provide the Department of Motor Vehicles (DMV) all labor, tools, materials, equipment, and travel necessary to perform complete presorting of mail and transporting services for DMV Mail Operations for the term of this Agreement. Complete presort mail services include the pick-up, presort, and delivery of letter size and light parcel mail to the United States Postal Service

(USPS).

2. The services shall be performed at: Contractor’s location (to be completed by the DMV).

3. Commencement of Work

A. The Contractor shall commence work under this Agreement on the specified start date provided by the DMV Project Manager following the execution of this Agreement by the State. The DMV Project Manager shall provide the Contractor with written notification of the start date prior to the Contractor commencing work under this Agreement.

4. The services shall be provided Monday through Friday, except state holidays, and as stipulated in the Scope of Work. The Contractor shall pick-up DMV mail at the following locations, during the following hours of operation:

A. Production Mail Center: 2730 Broadway, Sacramento, CA 95818. Hours of operation are 5:00 a.m. to 10:00 p.m., Monday through Friday, with intermittent work performed on weekends and state holidays.

B. Office Mail Processing Unit: 2415 First Avenue, Sacramento, CA 95818. Hours of operation are 6:00 a.m. to 5:00 p.m., Monday through Friday, except state holidays.

C. CLPI Mail Processing Contractor: 4251 Gateway Park Blvd., Sacramento, CA 95834. Hours of operation are 6:00 a.m. to 5:00 p.m., Monday through Friday, except state holidays.

5. The Project Managers during the term of this Agreement shall be:

Department of Motor Vehicles DMV Mail Operations

Contractor Name (TBD)

Name: TBD Name: TBD

Address: TBD Address: TBD

Phone: TBD Phone: TBD

Email: TBD Email: TBD

Department of Motor Vehicles DMV Outgoing Mail

Contractor Name (TBD)

Name: TBD Name: TBD

Address: TBD Address: TBD

Phone: TBD Phone: TBD

Email: TBD Email: TBD

6. Any questions or issues regarding the management of this Agreement shall be directed to the following Contract Coordinators:

Department of Motor Vehicles Contractor Name (TBD)

Name: TBD Name: TBD

Address: TBD Address: TBD

Phone: TBD Phone: TBD

Email: TBD Email: TBD

7. In the event of any changes to the name, address, and/or contact information for the Project Managers and/or Coordinators identified in this Exhibit, the party making the changes shall notify the other party in writing.

8. Detailed description of work to be performed and duties of all parties:

A. PRESORT MAIL SERVICES – CPLI MAIL SORTING WORKLOADS

(1). TYPES OF MAIL

a. The following types of DMV mail shall be presorted by the Contractor:

1. Ground Advantage, requiring Intelligent Mail Parcel Barcode.

2. Comingled Presorted First Class Permit letter mail, requiring Intelligent Mail Barcode.

(2). PRESORTING SERVICES

a. The Contractor shall provide mail presort services and reports per the specifications in this Agreement. The Contractor shall presort DMV mail in accordance with the mail requirements established by the United States Postal Service (USPS), and shall sort the mail by using the most descriptive Zip Code identifiers available in order to receive the best possible rate. It shall be the Contractor’s responsibility to ensure that DMV mail complies with all applicable USPS postal standards including Intelligent Mail Package Barcode (IMpb) and Intelligent Mail Barcode (IMb).

b. The Contractor shall create and apply IMpb labels to parcels conforming to USPS IMpb regulations, and apply IMb barcodes to letters conforming to USPS IMb regulations. USPS regulations may be subject to change. The Contractor shall adhere to USPS communications to ensure conformity with all USPS regulations throughout the term of this Agreement.

c. The Contractor shall transmit supporting electronic documentation using Shipping Services Electronic Manifest Files to USPS on a daily basis, excluding holidays and weekends. The Shipping Services Electronic Manifest File shall conform to all USPS IMpb and IMb regulations, which may be subject to change.

d. The Contractor shall be CASS™ certified and have USPS NCOALink/MPE address update technology onsite (formerly FASTforward® technology). The Contractor shall adhere to USPS technological requirements as updated by USPS throughout the term of this Agreement.

e. The DMV presort mail workload volumes may fluctuate throughout the term of this Agreement and are dependent upon both the DMV’s issuance schedules for each work product in addition to Mail Processing and CLPI workloads. The following are estimated quantities and shipping details for each workload.

TABLE 1.1. DMV – CLPI MAIL SORTING WORKLOAD REQUIREMENTS

Type of Mail: CLPI Workload Frequency Approx.

Weights

3 Year Volume

(ESTIMATED)

Ground Advantage

Vehicle License Plate (In a 6 ¾ by 12 ½ Kraft envelope)

Ongoing throughout each year.

5.1 oz to

6.9 oz

1,500,000 pieces

Comingled Presorted First Class Permit Letter Mail

Disabled Person Placard Identification Card/Receipt (Envelopes must accept barcode application in the barcode clear zone.)

Ongoing in smaller amounts thru 2023

Bulk release Jan - June every other year, starting in 2026

1 oz

2,500,000 pieces every other year.

4,500,000 for Contract

Comingled Presorted First Class Permit Letter Mail

OHV stickers (Off-Highway Motor Vehicle) and CVRA (Commercial Vehicle Registration Act.) stickers (Envelopes must accept barcode application in the barcode clear zone.)

Ongoing in smaller amounts. Bulk release of OHV workload in April/May/June every year.

1 oz 1,300,000 pieces

f. The daily mail volume to be processed by the Contractor may range from zero

(0) pieces to five hundred thousand (500,000) pieces or more, Monday through Friday. The DMV makes no guarantee as to the quantity of mail that will be given to the Contractor for processing under the terms of this Agreement.

g. The DMV shall identify which mail pieces may be re-dated or delayed when more than five hundred thousand (500,000) pieces are delivered in one day. The Contractor shall not re-date or delay the processing of mail at any time unless specifically directed by the DMV Project Manager or designee.

(3). PICK UP AND DELIVERY OF MAIL

a. CLPI MAIL and LETTER MAIL:

1. Pick up day: Monday – Friday: 6:00 a.m. to 5:00 p.m.

2. Processing Day: Next Day.

b. In the event that there is no mail to be picked up the DMV Project Manager, designee, or the CLPI Mail Processing Vendor shall notify the Contractor as soon as possible.

c. Additional mail pick-ups may be made throughout the term of this Agreement based on the DMV’s needs. The DMV will notify the Contractor of additional pick-ups by way of phone call and/or e-mail.

d. Operational hours are subject to change. The Contractor shall be notified of any changes in operational hours and pick up times by way of e-mail.

e. Holidays observed by the USPS may differ from the identified State holiday schedule. In addition, the USPS may operate under limited hours on or about various holidays. In the event the USPS observes a holiday not observed by the DMV or they operate within limited hours, the DMV Project Manager and the Contractor shall agree upon alternative pick up times acceptable to both parties.

f. The DMV Project Manager shall call the Contractor on the first day of each work week to identify the anticipated amount of mail to be processed by the Contractor during that week. The first day of each work week will be Monday. If Monday is a State holiday, the call shall be made to the Contractor the first business day immediately following the holiday.

g. At the time of pick up each day, the CLPI Mail Processing Vendor and/or the DMV as applicable, shall provide the Contractor a tray count for each delivery and a daily total of items by a batch (tally) sheet to be reconciled against the monthly payment record submitted by the Contactor to DMV at the end of each month. At the time of pick up, the Contractor shall sign and date the provided documents identifying the number of pieces in each delivery and provide a copy for DMV records.

h. The CLPI Mail Processing Vendor and/or the DMV as applicable, shall provide mail for processing by the Contractor in postal cages, postal hampers, and/or on pallets. Cages, hampers or pallets that are picked up and are not full shall be taken by the Contractor partially full or the Contractor may choose to consolidate the number of cages, hampers, or pallets prior to transport.

i. All mail shall be sorted and delivered to the USPS on the date specified on the mail piece.

j. The Contractor shall sort mail workloads using USPS NCOALink/MPE address update technology onsite (formerly FASTforward® technology), or other technology compliant with USPS standards. The Contractor shall deliver presorted mail to the USPS on the meter date shown on the mail pieces.

(4). SECURITY/INTEGRITY OF MAIL

a. The DMV mail shall be transported, received, stored, handled, and shipped in a manner that ensures the integrity and security of the documents and information contained therein. The Contractor shall not leave mail unattended or unsecured at any time.

b. The Contractor shall ensure that their employees do not open, use, access, look at, read, remove or copy any documents or records contained within the DMV mail.

c. Failure to adhere to this security policy constitutes a security breach and may result in the immediate termination of the Agreement.

(5). VEHICLE REQUIREMENTS

a. The transport vehicle must be of a size that will accommodate all cages, hampers, and/or pallets utilized for transporting mail. The vehicle bed must be a minimum of forty- eight inches (48”) high (dock height) or be equipped with a power lift gate to load and unload the cages, hampers and/or pallets.

b. The Contractor shall provide all equipment necessary to perform the loading and unloading of the cages, hampers, and/or pallets including pallet jacks, walkies, or any other equipment utilized for such purposes. At no time shall the Contractor be allowed to utilize the DMV’s equipment for the purpose of fulfilling the obligations of this Agreement.

c. The transport vehicle shall be lockable from the inside and the outside, large enough to transport the contents, sturdy and reliable to protect the contents from all types of hazardous elements, unauthorized access and loss.

d. At the beginning of the Contract term, the Contractor shall allow the DMV personnel to inspect any transport vehicle(s) to be utilized for this Agreement. If another transport vehicle is to be substituted for any reason, the DMV must be notified and allowed to inspect the substitute vehicle prior to use.

e. The Contractor shall maintain current and appropriate California vehicle registration and insurance for any secured vehicle used in the performance of this Agreement, throughout the Agreement term. The Contractor shall provide registration and insurance information upon request by the DMV.

f. In the event that the Contractor’s vehicle breaks down, the Contractor shall ensure that the replacement vehicle used is comparable to the required secured vehicle. The transfer of mail to the replacement vehicle shall occur as quickly as practicable, and the delivery under the terms of this Agreement shall be accomplished as expeditiously as possible.

g. The Contractor shall keep all mail locked in the truck while transporting it for processing and for delivery to the USPS. During transporting, any mail left in the vehicle shall be locked in the vehicle as well. No mail, under any circumstances, shall be left in the truck overnight or left unsecured at any time. Violations of this requirement shall constitute cause for immediate termination of the Agreement.

(6). TRANSPORT VEHICLE DRIVER

a. All transport vehicle drivers must possess a valid State of California Driver License appropriate for the type of vehicle driven, and the license shall remain valid during the term of this Agreement.

b. The Contractor is required to have a back-up driver available at all times to assume the responsibility of delivering DMV property.

c. The Contractor shall ensure the security of the DMV property and shall not transport employees or any other individuals unauthorized to fulfill contractual obligations of this Agreement.

d. Any breach of security as specified in this Agreement or Contractor’s noncompliance with driver requirements shall be cause for immediate termination of this Agreement.

(7). CONTRACTOR FACILITY REQUIREMENTS

a. The Contractor shall provide the DMV documentation of ownership or lease agreement of the facility to be used during the term of this Agreement. The lease term must cover the agreement service period.

b. The Contractor shall provide a secure facility with a minimum of 3,000 square feet to accommodate the workload and to allow efficient processing of the work covered in the Agreement.

c. The Contractor’s facility shall be located within thirty (30) miles of the DMV Mail Operations Unit located at 2415 First Ave, Sacramento, CA 95818.

d. The Contractor’s facility shall be secured at all times, allowing only authorized personnel access to the equipment during processing of any mail covered under this Agreement.

e. The Contractor’s facility shall be fully lockable, with fire and entry alarm systems fully installed and operational throughout the term of this Agreement. The fire and entry alarm systems shall be installed and monitored by a licensed alarm company.

f. The DMV reserves the right to inspect the Contractor’s facility at any time, within normal business hours without prior notification, throughout the term of this Agreement in order to ensure the security and integrity of the DMV’s property.

(8). POSTAGE METERING GUIDELINES AND REQUIREMENTS

a. Parcel Select Lightweight Flat Mail (Vehicle License Plates)

1. All Ground Advantage the Contractor processes shall indicate postage paid on the IMpb label. Any changes in the USPS rates for First Class parcel automation sort will be applied to the DMV mail effective the date of the USPS change. The parcel mail will be submitted to the USPS in accordance with the USPS regulations for permit parcel mailing. Any changes in the USPS rates for First Class parcel automation sort will be applied to the DMV mail effective the date of the USPS change.

A. The Contractor shall create and apply IMpb labels to all appropriate parcels in addition to staying in conformity with USPS IMpb regulations, which may change over time.

B. All Ground Advantage shall have the postage paid by the Contractor to the USPS on a daily basis, to be invoiced to the DMV monthly in arrears.

b. The Contractor shall deliver presorted mail to the USPS on the meter date shown on the mail pieces.

c. The Contractor shall not re-date mail under any circumstances without the prior approval of the DMV Project Manager or their designee.

(9). REJECTED MAIL

a. The Contractor shall return all letter or parcel mail rejected by the Contractor’s sorting machine or the USPS to the DMV Mail Operations, at the address listed on page 1 of this Exhibit, the following business day.

(10). LATE DELIVERY TO USPS

a. If, for any reason, the mail delivery is late or cannot be delivered to the USPS on the meter date, the Contractor shall immediately notify the DMV Project Manager to state the reason. In the event the DMV chooses to pick up the mail from the Contractor to complete processing and delivery to the post office, the DMV may assess liquidated damages of $500.00 per load.

1. One (1) occurrence is defined as one (1) delivery to the USPS that is late or not accepted. There can be more than one (1) occurrence for each workload under the terms of this Agreement. Each occurrence may be assessed $500.00 in Liquidated Damages.

b. Upon notification the DMV may choose to pick up the mail from the Contractor or accept late delivery by the Contractor to the USPS. In the event the DMV permits the Contractor to deliver the mail to the USPS late, the Contractor shall change the postage date on all pieces of mail as necessary at no additional cost to the DMV.

(11). REDATING CAPABILITY

a. The Contractor shall not re-date or delay the processing of mail at any time unless specifically directed by the DMV Project Manager or Designee.

b. Re-dating of mail by the Contractor shall be provided at no cost to DMV.

(12). MANAGEMENT REPORTS

a. The Contractor shall maintain accurate daily files that summarize the work that has been processed by the Contractor on behalf of the DMV. One (1) report shall be provided for each pick up location. Weekly reports will be provided to the DMV Project Manager via email identifying each pick up location, and mail piece count.

b. The Contractor shall provide a quarterly account summary to include the following: Presort Volume, Machine Rejected Mail Volume, Read Rate, Postage Rate, Full Postage Costs and Cost Avoidance.

c. Weekly, monthly and/or year-to-date cumulative summaries per location shall be provided to the DMV Project Manager via email upon request.

(13). LEGAL IMMIGRANTS

a. The Contractor shall ensure that all workers employed by the Contractor and utilized to perform any of the duties detailed under this Agreement are United States Citizens or legal immigrants in accordance with the employment verification provisions of the Immigration and Nationality Act, according to the Illegal Immigration Reform and Immigrant Responsibility Act (IIRIRA) signed on September 30, 1996, and any revisions of such Act. The Contractor shall be responsible to verify legal immigrant’s compliance with current laws and regulations of the United States and the State of California as they pertain to immigration status and employment.

(14). ADDITIONAL REQUIREMENTS

a. Technicians:

1. The Contractor shall provide fully trained and qualified technicians to perform the work specified under this Agreement. The Contractor and the Contractors’ employees may be subject to the DMV security clearance requirements.

(15). GUARANTEES

a. The Contractor shall guarantee that:

1. The services shall be performed promptly, with diligence, in a competent and professional manner in accordance with the description of services identified under this Agreement and to the satisfaction of the DMV.

A. If the DMV believes that there has been a breach of service, the DMV Project Manager will notify the Contractor and set forth the nature of such claimed breach. The Contractor shall promptly investigate the claimed breach and shall either:

(1). Provide information satisfactory to the DMV that no breach of service occurred.

OR

(2). Promptly take action as may be required to correct the breach.

B. If two (2) or more service breaches occur within any thirty (30) day period, or if a breach of service is based on the Contractors failure to adhere to the DMV security requirements, the DMV shall have the right to immediately terminate this Agreement.

(16). UNSUITABLE REPORT

a. If the DMV Project Manager finds that a prospective employee is unsuitable or unfit for the Contractor’s assigned duties, the Contractor shall be advised immediately that such employee cannot continue to work or be assigned to work under this Agreement. The DMV shall have and exercise full and complete control over granting, denying, withholding, or terminating clearances for the Contractor’s employees. The DMV may, as it deems appropriate, authorize and grant temporary clearance to the employees of the Contractor. However, the granting of temporary clearance to any such employee shall not be considered as assurance that full clearance will follow as a result of the condition, and the granting of either temporary or full clearance shall in no way prevent, preclude, or bar the withdrawal or termination of any such clearance by the DMV.

(17). QUARTERLY MEETING

a. The Contractor shall attend a quarterly meeting with the DMV Project Manager on a mutually agreed upon day and time to evaluate services.

B. PRESORT MAIL SERVICES - LETTER MAIL WORKLOADS

(1). TYPES OF MAIL

a. The following types of DMV mail shall be presorted by the Contractor:

1. Presorted Pre-Metered First Class letter mail:

A. Production Mail consisting of computer generated and printed mail of like letters and produced in large quantities.

B. Outgoing white mail consisting of desktop printed or handwritten letters of single items or small quantities of similar letters.

(2). PRESORTING SERVICES

a. The Contractor shall provide mail presort services and reports per the specifications in this Agreement. The Contractor shall presort DMV mail in accordance with the mail requirements established by the United States Postal Service (USPS), and shall sort the mail by using the most descriptive Zip Code identifiers available in order to receive the best possible rate. It shall be the Contractor’s responsibility to ensure that DMV mail complies with all applicable USPS postal standards including Intelligent Mail Package Barcode (IMpb) and Intelligent Mail Barcode (IMb).

b. The Contractor shall transmit supporting electronic documentation using Shipping Services Electronic Manifest Files to USPS on a daily basis excluding holidays and weekends. The Shipping Services Electronic Manifest File shall conform to all USPS IMpb and IMb regulations, which may be subject to change.

c. The Contractor shall be CASS™ certified…