BPM007032_Solicitation_Requirements.pdf

Request for Proposal under A.R.S. § 41-2534

Notice Page

Arizona Department of Administration State Procurement Office 1802 W. Jackson, #100

Phoenix, AZ 85007

Solicitation Requirements | Revision No. 8 | Revised 03-24 | Page 1 of 71

Solicitation Number: BPM007032

Description: Hard Copy Records and Magnetic Media Storage

Solicitation Due Date and Time: As indicated in APP

Pre-Offer Conference: Thursday, August 28, 2025 11:00AM – 12:00PM (Arizona Time)

Google Meet joining info Email eric.bell@azdoa.gov to request invitation to Pre-Offer Conference (The use of audio, video or AI recording of Pre-Offer conferences is prohibited and may result in the rejection of your Offer)

Proposals will only be accepted online in the “State’s eProcurement System”, Arizona Procurement Portal (APP), at https://app.az.gov until the “Bid/Offer Due Date” indicated in the “State’s eProcurement System” for the Solicitation No. shown at the top of this page. Proposals must be in the State Procurement Office’s possession online no later than that deadline.

Submit technical inquiries about navigating and/or submitting proposals in the State’s eProcurement System to the State’s eProcurement System Help Desk by phone at (602) 542-7600, option 2; or by email to app@azdoa.gov.

LATE PROPOSALS WILL NOT BE CONSIDERED. No extension or grace period will be given for delays or incomplete proposals caused by internet connectivity problems, file uploading difficulties, or misunderstanding of the requirements or procedures for online submission in the “State’s eProcurement System”.

It is the responsibility of the Prospective Offeror to routinely check the APP website for Solicitation Amendments. Additional instructions for preparing an Offer are included in this solicitation.

Persons with a disability may request a reasonable accommodation, such as a sign language interpreter, by contacting the Solicitation contact person. Requests shall be made as early as possible to allow time to arrange for the accommodation.

mailto:eric.bell@azdoa.gov https://app.az.gov/ https://app.az.gov/ mailto:app@azdoa.gov

Table of Contents Request for Proposal under A.R.S. § 41-2534

Solicitation No. BPM007032 Hard Copy Records and Magnetic Media Storage

Arizona Department of Administration State Procurement Office

Solicitation Requirements | Revision No. 9 | Revised 09-24 | Page 2 of 71

Click here to return to the Table of Contents

Notice Page

Table of Contents

Solicitation Summary 3

Scope of Work 5

Special Terms and Conditions 7

Addendum A to the Special Terms and Conditions 43

Addendum B to the Special Terms and Conditions 44

Uniform Terms and Conditions 10.5 49

Exhibit A – Reserved 67

Solicitation Summary

Solicitation No. BPM007032 Hard Copy Records and Magnetic Media Storage

Arizona Department of Administration State Procurement Office

Solicitation Requirements | Revision No. 9 | Revised 09-24 | Page 3 of 71

Solicitation Summary

1. What is the State Soliciting?

The Arizona Department of Administration, State Procurement Office (the State), as authorized under A.R.S. § 41-2501 et seq. is seeking to establish one or more statewide Contracts to support all State Agencies, Boards, and Commissions and participating Cooperative Members (collectively hereinafter referred to as Eligible Agencies), to provide storage space as required for Hard Copy Records and Magnetic Media Storage.

The State anticipates awarding contract(s) with the intent to secure service coverage statewide.

Whether or not it actually enters into any contracts, how many contracts it enters into, and how the work is awarded between those contracts are all at the State’s discretion. Furthermore, the State will use any awarded contracts on an as-needed basis, with no guarantee as to its actual spending under them.

The State reserves the right to accept any item or combination of items specified in the Solicitation, unless the Offeror expressly restricts an item or combination of items in its Offer, and conditions its response on receiving all items for which it provided a proposal. In the event of such restriction, the State will evaluate if an award on such a basis will result in the best value and is in the best interest for the State. The State may otherwise determine, at its sole discretion, that such restriction is non-responsive and deem the Offeror ineligible for further evaluation.

2. What is in the Solicitation?

2.1. At the time of publication, the following documents are included in the Solicitation:

2.1.1. Attachment: BPM007032 Solicitation Requirements

2.1.1.1. Notice / Cover Page

2.1.1.2. Table of Contents

2.1.1.3. Solicitation Summary

2.1.1.4. Scope of Work

2.1.1.5. Special Terms and Conditions

2.1.1.6. Addendum A to the Special Terms and Conditions

2.1.1.7. Addendum B to the Special Terms and Conditions

2.1.1.8. Uniform Terms and Conditions

2.1.1.9. Exhibits (if applicable)

2.1.2. Attachment: BPM007032 Solicitation Instructions

2.1.2.1. Special Instructions to Offerors

2.1.2.2. Standard Instructions to Offerors (RFP)

2.1.3. Solicitation Attachments

Solicitation Summary

Solicitation No. BPM007032 Hard Copy Records and Magnetic Media Storage

Arizona Department of Administration State Procurement Office

Solicitation Requirements | Revision No. 9 | Revised 09-24 | Page 4 of 71

2.1.3.1. Offer and Acceptance

2.1.3.2. Confidential Information Designation

2.1.3.3. Conformance Statements and Exceptions Requests

2.1.3.4. Key Personnel

2.1.3.5. Letter of Insurability

2.1.3.6. Proposed Subcontractors

2.1.3.7. Offeror Questionnaire

2.1.3.8. References

2.1.3.9. HIPAA BAA

2.1.3.10. Pricing

2.2. The State may issue a Solicitation Amendment at any time after Solicitation publication and before the Offer due date. It is the responsibility of the Prospective Offeror to routinely check the APP website for any Solicitation Amendments and revised documents.

Scope of Work

Solicitation No. BPM007032 Hard Copy Records and Magnetic Media Storage

Arizona Department of Administration State Procurement Office

Solicitation Requirements | Revision No. 9 | Revised 09-24 | Page 5 of 71

Scope of W ork

Scope of Work

1. Purpose and Background

1.1. The purpose of this Solicitation is to establish Contracts for the State’s Agencies, Boards, and Commissions (“State”), as well as Participating Members of the State Purchasing Cooperative (“Co-Op Buyer”), for the Offsite storage of Hard Copy Records and Magnetic Media.

1.2. The State, comprised of hundreds of state agencies, boards, commissions, councils, administrations, registrars, offices, and institutions, has requirements for offsite records storage, both hard copy records and magnetic media. This resultant contract(s) shall be made available to all of these state entities. Co-Op Buyers may also have similar storage requirements.

1.3. The State currently has over 300,000 boxes in the Phoenix area with a records storage vendor. These boxes do not belong to just one entity. The boxes belong to multiple state entities.

1.4. Each State entity has discretion over their own records decisions such as moving in-house records to a vendor’s facility, retrieving records from a vendor’s location, or having a vendor perform document destruction services after documents have exceeded the required retention requirements.

2. Definitions

2.1. Task Order: “Task Order” means a written authorization to a contractor to perform specific work within the scope of an existing contract. The Task Order shall outline the details of a particular project, including the scope of work, deliverables, schedule, and cost. For the purpose of this Contract, some projects may, at the State’s discretion, by performed via a Task Order.

2.2. Federal Tax Information (“FTI”): FTI means any tax return or tax return information received from the IRS or any secondary source which is protected by the confidentiality provisions of Internal Revenue Code section 6103

3. Service Description

3.1. Projected Awards: It is the intent of the State to award multiple contracts for the required services that will provide support for all Eligible Agencies and Co-Op Buyers (Customers).

Each selected contractor may have different areas of specialization, skill sets or capabilities. The contract will be established with an initial contract term of three (3) years

Solicitation No. BPM007032 Hard Copy Records and Magnetic Media Storage

Arizona Department of Administration State Procurement Office

Solicitation Requirements | Revision No. 9 | Revised 09-24 | Page 6 of 71 with up to seven (7) additional years of optional extensions, with the aggregate contract term not to exceed ten (10) years.

3.2. Projected Utilization: This contract will be used on an as-needed basis; the State makes no guarantee as to actual spend under the resultant contract.

4. General Requirements

The Contractor shall:

4.1. Provide personnel, facilities, equipment, security, tracking, user interfaces, environmental controls and any transportation necessary to perform all services for secure document storage and secure full service pickup and delivery, FOB destination focused in the metropolitan area consistent with needs within the State of Arizona. As this resultant contract will also be available to Co-Op Buyers located throughout the State, the State shall give preference to Contractors who have the ability to provide these services statewide.

4.2. Follow these Transportation Requirements: Documents and Media (“Deposits”) shall be transported in a well-maintained, enclosed, locked, and secured vehicle. Reasonable security precautions shall be followed that are designed to prevent the unauthorized use or disclosure of Deposits. Once a Deposit has been taken out to be transferred from vehicle to building, or building to vehicle, the vehicle shall remain locked. The Contractor must be able to meet all transportation demands as outlined in this Scope of Work, for multiple locations during the course of a business day, with a preference given to Contractors who can provide these services throughout the entire state of Arizona.

4.3. Adhere to the following funding considerations. No particular funding considerations have been identified. Each Eligible Agency or Co-Op Buyer Account will be financially responsible for their usage of services through the Records Management center and be eligible for reduced pricing (ex: volume pricing) by the Contractor.

4.4. Adhere to the following Storage Requirements: Proper storage and inventory of Deposits is of strict importance. In order to maintain proper quality for the documents stored, the following are requirements that the Contractor shall meet:

Contractor will implement and maintain in its Deposit storage facilities commercially reasonable safeguards designed to protect unauthorized use or disclosure of the Deposits at all times. For the purpose of this Contract, the term "commercially reasonable" shall mean the care that a reasonably careful person would exercise under similar circumstances. Fire detection and protection systems that are American National Standards Institute (ANSI) and/or National Fire Protection Agency (NFPA) complaint are preferable.

Solicitation No. BPM007032 Hard Copy Records and Magnetic Media Storage

Arizona Department of Administration State Procurement Office

Solicitation Requirements | Revision No. 9 | Revised 09-24 | Page 7 of 71

Room temperature in document storage area shall be maintained as set forth below:

Standard Storage. Room temperature in the standard document storage area shall be maintained at ambient temperatures appropriate for the Deposits being stored in accordance with industry practice. Contractor shall maintain high volume evaporative coolers to minimize temperature fluctuations as needed.

Premium Storage. Room temperature in the long-term document storage area shall be maintained continuously between 66 degrees Fahrenheit at the minimum and 77 degrees Fahrenheit at the maximum. The relative humidity in the storage area is approximately 25% to 40% throughout the calendar year. If applicable, Deposit storage areas that are ANSI compliant based on media type are preferable.

4.5. Adhere to the following Security Requirements: Deposits shall be afforded commercially reasonable security at all times, including continuous video surveillance. Access to Deposits shall be controlled and fully documented. Only authorized personnel are to be permitted in the controlled storage areas with Contractor issued photo identification. Video surveillance recordings shall be stored for a minimum of 30 days. Contractor's authorized personnel shall be permitted to view the surveillance recordings immediately upon request.

4.6. Adhere to the following Facility Location requirements: The facility(ies) responsible for providing the services required by this contract shall be located within the State of Arizona.

4.7. Adhere to the following regarding Media Storage: “Media” shall mean digital information stored on magnetic tape using digital recording. Proper storage and inventory of Media is of strict importance. In order to maintain proper quality for the media stored, the following are requirements that the Contractor shall meet:

Contractor will implement and maintain commercially reasonable safeguards designed to protect unauthorized use or disclosure of media. Fire detection and protection systems that are American National Standards Institute (ANSI) and/or National Fire Protection Agency (NFPA) compliant are preferable;

Room temperature in the media storage area shall be maintained continuously at approximately 70 degrees Fahrenheit with 66 degrees Fahrenheit the minimum and 73 degrees Fahrenheit the maximum. The relative humidity in the storage area shall be maintained between 20% and 50%. If applicable, media storage areas that are ANSI compliant are preferable.

Media shall be afforded commercially reasonable security at all times, including continuous video surveillance. Access to State Media shall be controlled and fully documented. Only authorized personnel are to be permitted in the controlled storage areas with Contractor issued photo identification.

Solicitation No. BPM007032 Hard Copy Records and Magnetic Media Storage

Arizona Department of Administration State Procurement Office

Solicitation Requirements | Revision No. 9 | Revised 09-24 | Page 8 of 71

Video surveillance recordings shall be stored for a minimum of 30 days. Contractor's authorized personnel shall be permitted to view the surveillance recordings immediately upon request.

Storage containers shall be specifically designed to hold magnetic media products and shall be made of 22- gauge steel, heavy duty plastic or product of equal performing material.

4.8. Adhere to the following reporting requirements. The following reports shall be required by this Contract. The Eligible Agency or Co-Op Buyer may add additional reporting requirements as necessary.

4.8.1. Inventory Report. The Contractor shall provide an inventory report to be included with the applicable monthly invoice which will include detail on all activities (pick-up/delivery, destruction, re-boxing, etc.). This inventory report shall also be provided on the request of any authorized personnel from an Eligible Agency or Co-Op Buyer.

4.8.2. Access Report. Contractor reports for any unauthorized access or disclosure of Deposits by a third party is set forth in this Scope of Work.

4.8.3. Spend Report. The Contractor shall provide a breakdown, by account, of monthly spend on this resultant contract.

4.9. Adhere to the following specific account requirements: The Contractor shall consult with each Eligible Agency or Co-Op Buyer with respect to storing any Deposits and shall discuss any account requirements in regard to pick-up and delivery schedules, special handling, documentation or any other job, delivery, or identification format requirements.

4.10. Adhere to the following regarding scheduling: Normal hours of pick-up and daily delivery service shall be from 8:00 A.M. to 5:00 P.M. Arizona Time, Monday through Friday. On request, the Contractor shall provide daily, 2 day per week, weekly, biweekly, monthly, on-demand and emergency pick-up and delivery service at the charge indicated the Pricing Attachment.

The following scheduling standards shall be required by the resultant Contract. The State may add additional scheduling requirements upon mutual agreement between the State and Contractor. Cost is outlined in Pricing Attachment

Daily pick-up and delivery shall be made each day at the time agreed upon between Contractor and Agency or Co-Op Buyer. Cost is outlined in Pricing Attachment.

Solicitation No. BPM007032 Hard Copy Records and Magnetic Media Storage

Arizona Department of Administration State Procurement Office

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Two days per week pick-up and delivery shall be made each day at the time agreed upon between Contractor and Agency or Co-Op Buyer. Cost is outlined in Pricing Attachment;

Weekly pick-up and delivery shall be made one day each week on the day and at the time agreed upon between Contractor and Agency or Co-Op Buyer; Cost is outlined in Pricing Attachment;

Biweekly pick-up and delivery shall be made one day, each two weeks, on the day and at the time and at the time agreed upon between Contractor and Agency or Co-Op Buyer.

Cost is outlined in Pricing Attachment;

Monthly pick-up and delivery shall be made one day each month on the day and at the time agreed upon between Contractor and Agency or Co-Op Buyer. Cost is outlined in Pricing Attachment;

On demand pick-up and delivery service shall be made at the time agreed upon between Contractor and Agency or Co-Op Buyer. Cost is outlined in Pricing Attachment; and

Next Day Delivery: Order by 3:00 pm for delivery next business day.

Half Day Delivery: Order by 10:00 am for delivery same business day or order by 3:00pm for delivery next business day by 12:00 pm. .

Pickup: Orders placed before 4:00 pm on a business day will be picked up within the following two business days

Emergency pick-up and delivery service shall be made in accordance with the time agreed upon between Contractor and Agency or Co-Op Buyer. Cost is outlined in Pricing Attachment;

Business Day Delivery: Within 3 hours of placement of order (for orders received not later than 2:00 PM) on a business day.

Weekends/Holidays/After Hours Delivery: Within 4 hours of placement of Order.

Pickup: Pickup orders placed before 4:00 pm on a business day will be picked up on the following business day.

4.11. Adhere to the following regarding personnel: The Contractor shall provide experienced personnel that are fully trained in services offered under this contract. All such personnel will have passed regular drug screening and full background checks provided by the Contractor. Contractor shall assign one individual as the primary point of contact for this Contract. Contractor shall assign one individual as the primary point of contact for each account under this Contract.

Solicitation No. BPM007032 Hard Copy Records and Magnetic Media Storage

Arizona Department of Administration State Procurement Office

Solicitation Requirements | Revision No. 9 | Revised 09-24 | Page 10 of 71

5. Task Order Process of Engagement

At its discretion, the State may solicit work to be performed under this contract using the following Task Order process. The State and Contractor(s) have a mutual responsibility to ensure accurateness and completeness of all information exchanged via this process. The information presented in the Task Orders will be governed by the terms and conditions of this resultant Contract. Pricing included in the Task Order shall not exceed pricing submitted during this Solicitation.

5.1. The State may issue an Task Order Request and invite Contractor(s) to provide a Task Order Response;

5.2. The State shall respond to Contractor’s questions within 30 days. Replies shall be to the individual Contractor(s) that submits a question. Notwithstanding the prior sentence, the State may distribute replies to Contractor questions to all Contractors if it deems the reply provides clarification to the Task Order Request and does not compromise the approach of the Contractor submitting the question;

5.3. Contractors may choose to participate or not to participate to a Task Order Request. If a Contractor(s) chooses to participate to a Task Order Request, specific requirements, as defined below, shall be utilized in order for the Task Order Response to be considered by the State. If a Contractor chooses to not participate to a Task Order Request then the Contractor must provide written confirmation to the State of the choice to not participate and the reason;

5.4. Based on the Task Order Response(s) the State may choose one or more final Contractor(s) it deems most acceptable or choose to not select any Task Order Response;

5.5. The State may choose to execute a selected Task Order Response(s) or to discuss specific items in a selected Task Order Response with the Contractor; and upon successful discussion and/or negotiation of the specific item(s), the State may accept the discussed Task Order Response.

5.6. Task Order Element

The State shall specify in each Task Order Request the following minimum elements:

• Description of Project;

• Purpose of the Project;

• Anticipated length of engagement;

• Key project deliverables and milestones (if applicable);

• Documentation requirements;

• Business and/or technical requirements;

• Reporting requirements;

Solicitation No. BPM007032 Hard Copy Records and Magnetic Media Storage

Arizona Department of Administration State Procurement Office

Solicitation Requirements | Revision No. 9 | Revised 09-24 | Page 11 of 71

• Service Level Agreements (SLA's), if any;

• Penalties (if any) for late delivery of key deliverables and/or SLA deficiency; and

• Due date of the Task Order Response.

5.7. Contractor Task Order Response

Contractor(s) shall respond to a Task Order Request using a Task Order Response format that lists mandatory information to be included in each Task Order Response. Contractor may add sections to the template to clarify their Task Order Response. All terms or conditions added by the Contractor to their Task Order Response that are not consistent with the Contract or failure to respond to mandatory information in the template shall disqualify the Task Order Response.

5.8. Task Order Term Extension and Terminations

The term of a Task Order may be extended upon mutual agreement of the State and Contractor(s). However, a Task Order may not be exceed the active term or term extensions of the Contract.

The termination of a particular Task Order shall not affect the duties and obligations of the State and the Contractor(s) regarding any other Task Orders then in effect.

6. Federal Tax Information (“FTI”) Security Requirements

6.1. PERFORMANCE

In performance of this contract, the Contractor agrees to comply with and assume responsibility for compliance by officers or employees with the following requirements:

(1) All work will be performed under the supervision of the contractor.

(2) The contractor and contractor’s officers or employees to be authorized access to

FTI must meet background check requirements defined in IRS Publication 1075.

The contractor will maintain a list of officers or employees authorized access to FTI. Such list will be provided to the agency and, upon request, to the IRS.

(3) FTI in hardcopy or electronic format shall be used only for the purpose of carrying out the provisions of this contract. FTI in any format shall be treated as confidential and shall not be divulged or made known in any manner to any person except as may be necessary in the performance of this contract. Inspection or disclosure of FTI to anyone other than the contractor or the contractor’s officers or employees authorized is prohibited.

Solicitation No. BPM007032 Hard Copy Records and Magnetic Media Storage

Arizona Department of Administration State Procurement Office

Solicitation Requirements | Revision No. 9 | Revised 09-24 | Page 12 of 71

(4) FTI will be accounted for upon receipt and properly stored before, during, and after processing. In addition, any related output and products require the same level of protection as required for the source material.

(5) The contractor will certify that FTI processed during the performance of this contract will be completely purged from all physical and electronic data storage with no output to be retained by the contractor at the time the work is completed. If immediate purging of physical and electronic data storage is not possible, the contractor will certify that any FTI in physical or electronic storage will remain safeguarded to prevent unauthorized disclosures.

(6) Any spoilage or any intermediate hard copy printout that may result during the processing of FTI will be given to the agency. When this is not possible, the contractor will be responsible for the destruction of the spoilage or any intermediate hard copy printouts and will provide the agency with a statement containing the date of destruction, description of material destroyed, and the destruction method.

(7) All computer systems receiving, processing, storing, or transmitting FTI must meet the requirements in IRS Publication 1075. To meet functional and assurance requirements, the security features of the environment must provide for the managerial, operational, and technical controls. All security features must be available and activated to protect against unauthorized use of and access to FTI.

(8) No work involving FTI furnished under this contract will be subcontracted without the prior written approval of the IRS.

(9) Contractor will ensure that the terms of FTI safeguards described herein are included, without modification, in any approved subcontract for work involving FTI.

(10) To the extent the terms, provisions, duties, requirements, and obligations of this contract apply to performing services with FTI, the contractor shall assume toward the subcontractor all obligations, duties and responsibilities that the agency under this contract assumes toward the contractor, and the subcontractor shall assume toward the contractor all the same obligations, duties and responsibilities which the contractor assumes toward the agency under this contract.

(11) In addition to the subcontractor’s obligations and duties under an approved subcontract, the terms and conditions of this contract apply to the subcontractor, and the subcontractor is bound and obligated to the contractor hereunder by the same terms and conditions by which the contractor is bound and obligated to the agency under this contract.

(12) For purposes of this contract, the term “contractor” includes any officer or employee of the contractor with access to or who uses FTI, and the term “subcontractor” includes any officer or employee of the subcontractor with access to or who uses FTI.

Solicitation No. BPM007032 Hard Copy Records and Magnetic Media Storage

Arizona Department of Administration State Procurement Office

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(13) The agency will have the right to void the contract if the contractor fails to meet the terms of FTI safeguards described herein.

6.2. CRIMINAL/CIVIL SANCTIONS

(1) Each officer or employee of a contractor to whom FTI is or may be disclosed shall be notified in writing that FTI disclosed to such officer or employee can be used only for a purpose and to the extent authorized herein, and that further disclosure of any FTI for a purpose not authorized herein constitutes a felony punishable upon conviction by a fine of as much as $5,000 or imprisonment for as long as 5 years, or both, together with the costs of prosecution.

(2) Each officer or employee of a contractor to whom FTI is or may be accessible shall be notified in writing that FTI accessible to such officer or employee may be accessed only for a purpose and to the extent authorized herein, and that access/inspection of FTI without an official need-to-know for a purpose not authorized herein constitutes a criminal misdemeanor punishable upon conviction by a fine of as much as $1,000 or imprisonment for as long as 1 year, or both, together with the costs of prosecution.

(3) Each officer or employee of a contractor to whom FTI is or may be disclosed shall be notified in writing that any such unauthorized access, inspection or disclosure of FTI may also result in an award of civil damages against the officer or employee in an amount equal to the sum of the greater of $1,000 for each unauthorized access, inspection, or disclosure, or the sum of actual damages sustained as a result of such unauthorized access, inspection, or disclosure, plus in the case of a willful unauthorized access, inspection, or disclosure or an unauthorized access/inspection or disclosure which is the result of gross negligence, punitive damages, plus the cost of the action. These penalties are prescribed by IRC sections 7213, 7213A and 7431 and set forth at 26 CFR 301.6103(n)-1.

(4) Additionally, it is incumbent upon the contractor to inform its officers and employees of the penalties for improper disclosure imposed by the Privacy Act of 1974, 5 U.S.C. 552a. Specifically, 5 U.S.C. 552a(i)(1), which is made applicable to contractors by 5 U.S.C. 552a(m)(1), provides that any officer or employee of a contractor, who by virtue of his/her employment or official position, has possession of or access to agency records which contain individually identifiable information, the disclosure of which is prohibited by the Privacy Act or regulations established thereunder, and who knowing that disclosure of the specific material is so prohibited, willfully discloses the material in any manner to any person or agency not entitled to receive it, shall be guilty of a misdemeanor and fined not more than $5,000.

(5) Granting a contractor access to FTI must be preceded by certifying that each officer or employee understands the agency’s security policy and procedures for safeguarding FTI. A contractor and each officer or employee must maintain

Solicitation No. BPM007032 Hard Copy Records and Magnetic Media Storage

Arizona Department of Administration State Procurement Office

Solicitation Requirements | Revision No. 9 | Revised 09-24 | Page 14 of 71 their authorization to access FTI through annual recertification of their understanding of the agency’s security policy and procedures for safeguarding FTI. The initial certification and recertifications must be documented and placed in the agency's files for review. As part of the certification and at least annually afterwards, a contractor and each officer or employee must be advised of the provisions of IRC sections 7213, 7213A, and 7431 (see Exhibit 4, Sanctions for Unauthorized Disclosure, and Exhibit 5, Civil Damages for Unauthorized Disclosure). The training on the agency’s security policy and procedures provided before the initial certification and annually thereafter must also cover the incident response policy and procedure for reporting unauthorized disclosures and data breaches. (See Section 10) For the initial certification and the annual recertifications, the contractor and each officer or employee must sign, either with ink or electronic signature, a confidentiality statement certifying their understanding of the security requirements.

6.3. INSPECTION

The IRS and the Agency, with 24 hour notice, shall have the right to send its inspectors into the offices and plants of the contractor to inspect facilities and operations performing any work with FTI under this contract for compliance with requirements defined in IRS Publication 1075. The IRS’ right of inspection shall include the use of manual and/or automated scanning tools to perform compliance and vulnerability assessments of information technology (IT) assets that access, store, process or transmit FTI. Based on the inspection, corrective actions may be required in cases where the contractor is found to be noncompliant with FTI safeguard requirements.

Special Terms and Conditions

Solicitation No. BPM007032 Hard Copy Records and Magnetic Media Storage

Arizona Department of Administration State Procurement Office

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The Special Terms and Conditions modify the Uniform Terms and Conditions. It can modify them by replacing, deleting, appending to, or revising the text of an existing provision or by inserting a new paragraph into an existing article. No other document modifies or adds to the Uniform Terms and Conditions, except as may subsequently be otherwise and expressly agreed and incorporated by Contract Amendment.

1. Definition of Terms: As used in the Contract, the terms listed below are defined as follows:

1.1. Acceptance: The document titled “Offer and Acceptance Form” bearing the state contract number once Procurement Officer has signed it to signify (1) State’s formal acceptance of the Accepted Offer and (2) the formation of the Contract. For clarity of intent, the foregoing is not to be confused with the term “acceptance” used throughout the Contract in the context of delivery, inspection, etc., with respect to Materials or Services.

1.2. Accepted Offer:

1.2.1. If State did not request a Revised Offer, then “Accepted Offer” means the Initial Offer.

1.2.2. If State requested a Revised Offer but not a Best and Final Offer, then “Accepted Offer” means the latest Revised Offer.

1.2.3. If State requested a Best and Final Offer, then “Accepted Offer” means the Best and Final Offer.

1.3. “AI” means the science and engineering of making machines capable of performing tasks that are typically associated with human intelligence, such as learning and problem-solving, and includes without limitation: AI systems, classic AI, external AI, generative AI, and large language model (LLM) AI.

1.4. Arizona Procurement Code: The Arizona Procurement Code consists of Arizona Revised Statutes (A.R.S.) §§ 41-2501 et seq. and Arizona Administrative Code (A.A.C.) R2-7-101 et seq. There is additional information in the Solicitation Instructions regarding how to access these state statutes and rules.

1.5. Arizona Transaction Privilege Tax (TPT): For information, refer to the Arizona Department of Revenue (DOR) website at: https://azdor.gov/transaction-privilege-tax-tpt

1.6. Attachment. Any item that:

1.6.1. The Solicitation required Offeror to submit as part of the Offer (e.g., Initial Offer, Revised Offer, or Best and Final Offer);

1.6.2. Was attached to an Offer when submitted; and

https://azdor.gov/transaction-privilege-tax-tpt

Solicitation No. BPM007032 Hard Copy Records and Magnetic Media Storage

Arizona Department of Administration State Procurement Office

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1.6.3. Was included in the Accepted Offer.

1.7. Cloud Services: Cloud or Cloud Services means any Software as a Service (SaaS), Infrastructure as a Service (IaaS), or Platform as a Service (Paas) involving the transfer, processing, or storage of state Data outside the control of state-managed and controlled networks.

1.8. Contract Terms and Conditions: The Special Terms and Conditions and the Uniform Terms and Conditions taken collectively.

1.9. Contractor: The Person identified on the Accepted Offer who has entered into the Contract with the State.

1.10. Contractor Indemnitor: Contractor or any of its owners, officers, directors, agents, employees, or Subcontractors.

1.11. Co-Op Buyer: A member of the State Purchasing Cooperative that has entered into a “Cooperative Purchasing Agreement” with the Arizona Department of Administration State Procurement Office under A.R.S. § 41-2632. Unless there is an applicable Cooperative Purchasing Agreement in effect at the time, a State Purchasing Cooperative member cannot be a Co-Op Buyer. For reference, “Co-Op Buyer” is to be construed as encompassing an “eligible procurement unit” under A.A.C. R2-7-101(23).

NOTE: Membership in the State Purchasing Cooperative is open to all Arizona political subdivisions, including cities, counties, school districts, and special districts. Membership is also available to non-profit organizations, other state governments, the federal government and tribal nations. For reference, “non-profit organizations” are defined in A.R.S. § 41-2631(4) as any nonprofit corporation as designated by the I.R.S. under Section 501(c)(3) through 501(c)(6) of the tax code.

1.12. Data Breach: Data Breach is used herein as defined as stated in A.R.S. Title 18, chapter 5, article 4 (Data Security Breaches), or in any relevant state or federal standard, to indicate an unauthorized acquisition of and unauthorized access that materially compromises the security or confidentiality of unencrypted and unredacted computerized personal information maintained as part of a database of personal information regarding multiple individuals.

1.13. Eligible Agency:

1.13.1. If the Special Terms and Conditions indicate that the Contract is a “single-agency” contract, then “Eligible Agency” means the particular State of Arizona agency, university, commission, or board identified therein.

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Arizona Department of Administration State Procurement Office

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1.13.2. If the Special Terms and Conditions indicate that the Contract is a mandatory statewide contract, then “Eligible Agency” means any State of Arizona department, agency, university, commission, or board.

1.13.3. If the Special Terms and Conditions indicate that the Contract is a “cooperative” contract available for use by Co-Op Buyers, then “Eligible Agency” means any State of Arizona department, agency, university, commission, board, or any Co-Op Buyer.

1.14. Instructions to Offerors: The Solicitation Instructions document of the Solicitation.

1.15. NIST: NIST is the National Institute of Standards and Technology. For more information, see https://www.nist.gov/.

1.15.1. NIST Low Impact: If a Contractor may process, transmit, or store Public State Data (per State Data Classification Policy P8110), metadata, and/or Data that may be released to the public that requires no additional levels of protection during its work under the Contract, or as directed by the State Chief Privacy Officer (Arizona Department of Homeland Security Governance, Risk, and Compliance team), then the Contractor shall comply with NIST Low Impact security controls.

1.15.2. NIST Moderate Impact: If a Contractor may process, transmit, or store Confidential State Data (per State Data Classification Policy P8110) or metadata during its work under the Contract, then the Contractor shall comply with NIST Moderate Impact security controls.

1.16. Order: The instrument by which the Eligible Agency or Co-Op Buyer authorizes a Contractor to perform some or all of the Work. Whether the Contract will have one Order or many Orders depends on the scope of the Contract and how the State will use it. The Special Terms and Conditions provide that information. Any of the following are construed as an “Order”: “Purchase order,” “task order,” “service order,” or “job order”.

1.17. State’s eProcurement System: The State’s official electronic procurement system, established pursuant to A.A.C. R2-7-201 as set forth in the Arizona Department of Administration State Procurement Office policy document Technical Bulletin No. 020, The State’s eProcurement System–The Official State eProcurement System. Technical Bulletin No. 020 is available online at:

https://spo.az.gov/sites/default/files/documents/files/TB_020_APP_20181024.pdf

1.18. State: With respect to the Contract generally, “State” means the State of Arizona and its department, agency, university, commission, or board that has executed the Contract.

With respect to administration or rights, remedies, obligations and duties under the https://www.nist.gov/ https://spo.az.gov/sites/default/files/documents/files/TB_020_APP_20181024.pdf

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Arizona Department of Administration State Procurement Office

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Contract for a given Order, “State” means each Eligible Agency or Co-Op Buyer who has issued the Order.

1.19. State Indemnitees: Collectively, the State of Arizona, its departments, agencies, universities, commissions, and boards and, and their respective officers, agents, and employees.

1.20. Work: The totality of the Materials and the Services and all the acts of administration, creation, production, and performance necessary to fulfill and incidental to fulfilling all of Contractor's obligations and duties under the Contract in conformance with the Contract and applicable laws.

2. Contract Interpretations

2.1. Usage. Where the Contract:

2.1.1. assigns obligations to Contractor, any reference to “Contractor” is to be construed to be a reference to the Contractor and all Subcontractors, whether they are first-tier Subcontractors, sub-subcontractors, suppliers, sub-suppliers, consultants, or sub-consultants, as well as all of Contractor’s and the Subcontractor’s respective agents, representatives, and employees in every instance unless the context plainly requires that it is a reference only to Contractor as apart from Subcontractors.

2.1.2. uses the permissive “may” with respect to a party’s actions, determinations, etc., the terms is to be interpreted as in A.A.C. R2-7-101(32) [Definitions]. For clarity of intent, any right given to State using “State may” or a like construction denotes discretion and freedom to act so far as any regulatory or operative constraints permit in the relevant circumstances, provided that: (a) where written “may, at its discretion,” the discretion extends to whatever is most advantageous to State; and (b) where written only as “may,” the discretion is constrained by what is fair, reasonable, and as accommodating of the respective best interests of both parties as practicable under the circumstances;

2.1.3. uses the imperative “shall” with respect to a party’s actions, duties, etc., the term is to be interpreted as in A.A.C. R2-7-101(44) [Definitions]. Conversely, the phrase “shall not” is to be interpreted as an imperative prohibition.

2.1.4. uses the term “must” with respect to a requirement, criterion, etc., the term is to be interpreted as conveying compulsion or strict necessity;

Solicitation No. BPM007032 Hard Copy Records and Magnetic Media Storage

Arizona Department of Administration State Procurement Office

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2.1.5. uses the term “might” with respect to an event, outcome, action, etc., the term is to be interpreted as conveying contingency or non-discretionary conditionality; and

2.1.6. uses the term “will” or the phrases “is to be” or “are to be” with respect to an event, outcome, action, etc., the term or phrase is to be interpreted as conveying such certainty or imperativeness that “shall” is either unnecessary or irrelevant in that instance.

2.2. Contract Order of Precedence

2.2.1. Complementary Documents. All of the documents forming the Contract are complementary. If certain work, requirements, obligations, or duties are set out only in one but not in another, Contractor shall carry out the Work as though the relevant Work, requirements, obligations, or duties had been fully described in all, consistent with the other documents forming the Contract and as is reasonably inferable from them as being necessary to produce complete results.

2.2.2. Conflicts. In case of any inconsistency, conflict, or ambiguity among the documents forming the Contract and their provisions, they are to prevail in the following order, descending from most dominate to most subordinate, provided that, among categories of documents or provisions having the same rank, the document or provision with the latest date prevails. Information being identified in one document, but not in another, is not to be considered a conflict or inconsistency.

2.2.2.1. Contract Amendments;

2.2.2.2. The final Solicitation Documents, in the following order:

(1) Special Terms and Conditions;

(2) Exhibits to the Special Terms and Conditions;

(3) Uniform Terms and Conditions;

(4) Scope of Work;

(5) Exhibits to the Scope of Work;

(6) Specifications; and

(7) Any other documents referenced or included in the

Solicitation;

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Arizona Department of Administration State Procurement Office

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2.2.2.3. Orders, in reverse chronological order; and

2.2.2.4. Accepted Offer.

2.2.3. Attachments and Exhibits. For clarity of intent, if an item was an Attachment in the Solicitation Documents or an Offer (either Initial, Revised, Best and Final, or Accepted) and was subsequently made into an Exhibit, or its content was incorporated into one of the other Contract documents, then that Attachment no longer exists contractually as an “Attachment” since it has at that point been made into some other Contract document. In every other case, an Attachment and the Offeror Data therein remain part of the Accepted Offer for purposes of precedence and contractual effect.

3. Contract Administration and Operation

3.1. Term of Contract. The term of the Contract will commence on the date indicated on the Acceptance and continue for three (3) years unless canceled, terminated, or permissibly extended.

3.2. Contract Extensions. State may at its discretion extend the initial Contract term in increments of one (1) or more years and do so one or more times, provided that the maximum aggregate term of the Contract including extensions cannot exceed the maximum aggregate term of ten (10) years.

3.3. Notices and Correspondence

3.3.1. To Contractor. State shall address all Contract correspondence other than formal notices to the email address indicated as “Default for Type” for “General Mailing Address” in Contractor’s corresponding State’s eProcurement System Vendor Profile; and address any required notices to Contractor to the “Contact Name and Title” at the “Mailing Address” indicated on the Accepted Offer, as that address might have been amended during the term of the Contract.

3.3.2. To State. Contractor shall address all Contract correspondence other than formal notices to the email address indicated in “Contact Instructions” in the State’s eProcurement System Summary for State; and address any required notices to State via email to the Procurement Officer identified as “Purchaser” in the State’s eProcurement System and via mail to the following mailing address:

Arizona Department of Administration State Procurement Office 1802 W. Jackson, #100, Solicitation No. BPM007032 Hard Copy Records and Magnetic Media Storage

Arizona Department of Administration State Procurement Office

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3.3.3. Changes. State may change the designated Procurement Officer, update contact information, or change the applicable mailing address.

3.4. Signing of Contract Amendments. Contractor’s counter-signature (or “approval” in the State’s eProcurement System, in the case of an amendment) is not required to give effect if the Contract Amendment only covers either:

3.4.1. extension of the term of the Contract within the maximum aggregate term; or

3.4.2. modifications of a clerical nature that have no effect on terms, conditions, price, scope, or other material aspect of the Contract.

In every case other than those listed in 3.4.1 and 3.4.2 above, both parties’ signatures (or “approval” in the State’s eProcurement System in the case of an Amendment) are required to give it effect.

3.5. Click-through Terms and Conditions. If either party uses a web-based ordering system, an electronic purchase order system, an electronic order acknowledgement, a form of an electronic acceptance, or any software based ordering system with respect to the Contract (each an “Electronic Ordering System”), the parties acknowledge and agree that an Electronic Ordering System is for ease of administration only, and Contractor is hereby given notice that the persons using Electronic Ordering Systems on behalf of State do not have any actual or apparent authority to create legally binding obligations that vary from the terms and conditions of the Contract. Accordingly, where an authorized State user is required to “click through” or otherwise accept or be made subject to any terms and conditions in using an Electronic Ordering System, any such terms and conditions are deemed void upon presentation. Additionally, where an authorized State user is required to accept or be made subject to any terms and conditions in accessing or employing any Materials or Services, those terms and conditions will also be void.

3.6. Books and Records

3.6.1. Retain Records. In addition to the audit rights detailed in the Uniform Terms and Conditions, State also requires that, pursuant to A.R.S. § 41-2548(B), Contractor shall retain and shall contractually require each Subcontractor to retain books and records relating to any cost and pricing Data submitted in satisfaction of § 41-2543 for the period specified in the statute.

3.6.2. Usage Information. Additionally, any and all information (including, but not limited to, documentation or Data) related to Eligible Agency and Co-Op Buyer usage retained solely within the Contractor’s system (for example, related to punch-out or Contractor catalog sales) shall be considered public information or information that can be shared with and distributed by the State freely and

Solicitation No. BPM007032 Hard Copy Records and Magnetic Media Storage

Arizona Department of Administration State Procurement Office

Solicitation Requirements | Revision No. 9 | Revised 09-24 | Page 22 of 71 for any purpose under the State’s government purpose rights detailed in Section 3 of the Uniform Terms and…