BPM007099 Solicitation Requirements.pdf

STATE OF ARIZONA

DEPARTMENT OF HEALTH SERVICES

NOTICE OF REQUEST FOR PROPOSAL (RFP)

ARIZONA DEPARTMENT OF

HEALTH SERVICES

150 N. 18th Avenue, Suite 530 Phoenix, Arizona 85007/

SOLICITATION NUMBER:

BPM007099 – SOLICITATION REQUIREMENTS, LOT ONE (1), ROUND ONE

(1)

SOLICITATION DUE DATE/TIME: Tuesday, January 6, 2026 at 3:00:00 PM Local AZ Time

SUBMITTAL LOCATION: https://app.az.gov

DESCRIPTION: Warehouse, Receiving, Repacking and Distribution Services

PRE-OFFER CONFERENCE:

Wednesday, December 10, 2025 at 11:00 AM Local AZ Time meet.google.com/wzv-trrc-gfx (US) 1-641-569-8584 PIN: 405 472 534#

In accordance with A.R.S. § 41-2534, competitive sealed proposals for the services specified will be received by the Arizona Department of Health Services (ADHS) online in the State of Arizona’s online procurement system, https://app.az.gov (Arizona Procurement Portal – APP). Proposals received by the due date and time will be opened. The name of each Offeror will be publicly available. Proposals must be submitted in the State APP system on or prior to the date and time indicated.

Late proposals will not be considered. It is the responsibility of the supplier/offeror to routinely check the APP website for Solicitation Amendments. Additional instructions for preparing an Offer are included in this solicitation.

With seventy-two (72) hours prior notice, persons with disabilities may request special accommodations such as interpreters, alternative formats, or assistance with physical accessibility. Such requests must be addressed to the Solicitation contact person named below.

OFFERORS ARE STRONGLY ENCOURAGED TO READ THE ENTIRE SOLICITATION CAREFULLY.

Solicitation Contact:

Michelle Fink, CPPB Procurement Officer Senior Michelle.Fink@azdhs.gov

(480) 521-2700 https://app.az.gov/ https://app.az.gov/ mailto:Michelle.Fink@azdhs.gov javascript:window.parent.navigate(%22/media_461531632/Arizona_State_Seal.html%22);

SOLICITATION REQUIREMENTS

TABLE OF CONTENTS

ARIZONA DEPARTMENT

OF HEALTH SERVICES

150 N. 18th Avenue, Suite 530 Phoenix, Arizona 85007

REQUEST FOR PROPOSAL NO. BPM007099

WAREHOUSE, RECEIVING, REPACKING

AND DISTRIBUTION SERVICES

*The following table of contents applies to all attachment documents in APP for this Solicitation*

SECTION CONTENT

Solicitation Requirements Notice Page

Table of Contents

Scope of Services

Special Terms and Conditions

Uniform Terms and Conditions

Exhibits Exhibit One (1): Insurance Requirements

Exhibit Two (2): 2 CFR Form

Exhibit Three (3): ADHS Observed Holidays

Solicitation Instructions Special Instructions to Offerors

Uniform Instructions to Offerors

Attachments Located in APP Attachment A: Offer and Acceptance

Attachment B: Notices, Correspondence, Reports, and Payments

Attachment C: Designation of Confidential, Trade Secret and Proprietary Information

Attachment D: Proposed Subcontractors

Attachment E: Participation of Boycott of Israel

Attachment F: Forced Labor of Ethnic Uyghurs Ban

Attachment G: Conformance Statements and Exceptions Request

Attachment H: Letter of Insurability

Attachment I: References

SCOPE OF WORK

ARIZONA DEPARTMENT

OF HEALTH SERVICES

150 N. 18th Avenue, Suite 530 Phoenix, Arizona 85007

REQUEST FOR PROPOSAL NO. BPM007099

I. SCOPE OF WORK

1. BACKGROUND

1.1. The Arizona Department of Health Services (ADHS) Bureau of Operational Readiness and Response (BORR) are responsible for receiving, storing, and distributing personal protective equipment (PPE), other public health-related supplies, and/or the Strategic National Stockpile (SNS) managed collection of life-saving pharmaceuticals and equipment. In the event of a declared emergency, public health incident, or due to supply chain shortages, these needed supplies will be received, stored, repackaged, and shipped to locations to support impacted jurisdictions. ADHS currently maintains a cache of PPE and other public health-related supplies.

1.2. The Arizona Department of Emergency and Military Affairs (DEMA-EM) coordinates the State of Arizona’s all hazard emergency preparedness, response, recovery, and mitigation efforts in order to reduce the impact of emergencies and disasters on people and property. During declared emergencies, logistics coordinates the allocation of equipment, services, and personnel to support emergency operations.

DEMA-EM is responsible for receiving, storing, and distributing a variety of supplies needed to respond to all hazard events.

1.3. The State’s address is 150 N. 18th Avenue, Suite 310, Phoenix, Arizona 85007.

2. OBJECTIVE

To obtain warehousing service for both ADHS and DEMA-EM to utilize warehousing services encompassing, at a minimum, storage (both non-air-conditioned and temperature-controlled), receiving, inventory management, distribution, and disposal.

3. SCOPE OF SERVICES

The resulting Contract aims to guarantee that ADHS maintains operational readiness to receive, store, stage, and distribute critical life-saving medications, PPE, hospital supplies and equipment, and other essential all-hazards supplies to communities and populations in need. By upholding its warehousing capacity, ADHS/ DEMA-EM will be equipped to fulfill the requirements of our communities, ensuring that public health needs and all-hazards emergencies are adequately addressed through the supplies currently held by ADHS/ DEMA-EM, and with additional support from federal sources or through procurement as necessary.

4. REQUIREMENTS

4.1. The Contractor shall:

4.1.1. Have in place and abide by hiring practices as required by Federal and Arizona State laws.

4.1.2. Require essential warehouse Point of Contacts (POC) to participate in ADHS Receive, Stage, Storage (RSS) Activation Drills/exercises when requested. Contractor shall identify a primary, secondary, and POC to participate in each drill conducted by ADHS.

4.1.3. Provide Operating Licenses and keep current all federal, state, and local licenses and permits required for the operation of the business conducted on behalf of the State.

4.1.4. Provide a current and valid Certificate of Liability Insurance (COI) as outlined in Exhibit One (1) prior to commencement of the Contract and throughout the term of the Contract. A Purchase Order will not be issued for the Contractor to perform services without the COI on file in the Contract.

ARIZONA DEPARTMENT

OF HEALTH SERVICES

150 N. 18th Avenue, Suite 530 Phoenix, Arizona 85007

REQUEST FOR PROPOSAL NO. BPM007099

4.1.5. The State may require a copy of all-hazards performance plan at any time prior or post post-award of contract. At a minimum, the all-hazards performance plan shall include key succession and performance planning if there is a sudden significant decrease in the Contractor’s workforce.

4.1.6. Have a primary terminal in Phoenix, Arizona, and have several satellite terminal locations which shall be used if the primary terminal is not operational.

4.1.7. Ensure written approval from an authorized signatory prior to any enhancement or additional work begins.

4.1.8. Be able to perform services immediately upon receipt of a valid Purchase Order.

4.2. The warehouse shall:

4.2.1. Be primarily located in Phoenix, Arizona with agreed upon square footage, at a minimum 15,000 square feet, which may increase or decrease based on need, to store all items.

4.2.1.1. Have at least one (1) satellite terminal located within the Phoenix metro area. Additional satellite terminals may be beyond the fifty (50) mile radius.

4.2.2. Be a primary warehouse terminal located within a fifty (50) mile radius from State.

4.2.3. Include an air-conditioned or temperature-controlled area, but it is not necessary for the entire facility to have climate control.

5. TASKS

The Contractor shall:

5.1. Transport Material:

5.1.1. Pick up, transport, and deliver material from any pre-designated location (within or out of state) to all designated receiving location(s) identified by the State.

5.1.2. During non-emergency operations, make delivery to identified receiving locations within two (2) to five (5) calendar days.

5.1.3. During an emergency, make deliveries based on the timeframe determined by the State.

5.2. Provide Loading and Unloading:

5.2.1. Contractor driver and driver teams shall oversee the proper loading, securing, and unloading of material into/from vehicles and/or trucks/trailers to ensure the appropriateness of the load, its arrangement, and to ensure the safe operation of those vehicles, trucks, and trailers. Industry standards shall be used in the securing of loads inside the vehicles and trailers.

5.2.2. Should ADHS receive material, unload, inspect and inventory all items and communicate to

ADHS of the received items and status, by using this form: ADHS Warehouse Product Verification Form.

5.3. Provide Operating Hours:

5.3.1. Normal and or straight-time working hours shall be Monday through Friday, 8:00 a.m. to 5:00 p.m. Arizona Local Time. If additional hours are needed to complete work, hours of operation may be extended to support the completion of work, with the State’s approval.

javascript:window.parent.navigate(%22/media_461531632/Arizona_State_Seal.html%22);

https://docs.google.com/document/d/11718ZGngeOVj0a-qUiFAY2cVZCMvlcXZ/edit

ARIZONA DEPARTMENT

OF HEALTH SERVICES

150 N. 18th Avenue, Suite 530 Phoenix, Arizona 85007

REQUEST FOR PROPOSAL NO. BPM007099

5.3.2. If a critical incident arises outside of normal operating hours, including holidays (See Exhibit Three (3) for a list of State holidays), warehouse staff and transportation may be needed and is at the discretion of the State’s POC.

5.4. Provide Transport Vehicle Specifications:

5.4.1. Have or have access to a fleet that includes but is not limited to, bobtail trucks with lift gates, tractor-trailers, and pack vans to ensure safe and proper transportation of products to the end customer. Additionally, the Contractor shall have or have access to drivers who are fit to operate the fleet and have the appropriate equipment to accomplish transportation operations. The contractor shall locate additional vehicles as required by the State. The contractor shall ensure all drivers have the appropriate licenses to operate all trucks and machinery.

5.4.2. Utilize the most efficient means of transportation to ensure distribution costs are minimized as much as possible.

5.5. Provide Transportation Liaison:

Identify and make available to the State’s POC twenty-four (24) hours a day, seven (7) days a week a POC with authority to assign transportation assets. Contractor shall pre-assign a RSS based Transportation Liaison who shall provide on-site coordination with the State’s POC and RSS site management team as needed.

5.6. Prioritize Receipt and Delivery of Material:

The State shall be given priority assignment of warehousing space, drivers, trucking assets, and labor for receipt and delivery of essential material in the event of an emergency or should the critical need arise.

Contractor shall make available to the ADHS-POC tracking and response time information for those assets.

5.7. Provide Facility Location and Capabilities:

5.7.1. Have the means to deliver and/or pick-up material at a designated place which may be located within the state of Arizona, continental United States (US) or internationally.

5.7.2. Have a primary terminal within a 50-mile radius from ADHS, and also have several satellite terminal locations which shall be used if the primary terminal is not operational.

5.7.3. Contractor location shall be primarily located in Phoenix, Arizona, at a minimum 15,000 square feet, with agreed upon square footage, which may increase or decrease based on need, to store all items including but not limited to:

5.7.3.1. Personal Protective Equipment (PPE).

5.7.3.2. Vaccine related supplies.

5.7.3.3. Infectious disease testing supplies.

5.7.3.4. Durable medical equipment (DME).

5.7.3.5. Hospital/facility operational supplies.

5.7.3.6. Consumable hospital-related supplies.

5.7.3.7. Other all-hazards related countermeasures and equipment.

ARIZONA DEPARTMENT

OF HEALTH SERVICES

150 N. 18th Avenue, Suite 530 Phoenix, Arizona 85007

REQUEST FOR PROPOSAL NO. BPM007099

5.7.4. Ensure that sufficient climate-controlled and non-climate-controlled space is available and can comply with all product manufacturer storage requirements.

5.7.5. Designated State staff shall have access to the facility after hours and on weekends as needed to ensure access to the material.

5.7.6. Demonstrate ability to maintain uninterrupted operations in the event of landlord bankruptcy, lease termination, foreclosure, or other disruptions. In such cases, the vendor shall be solely responsible for all costs associated with securing and transitioning to an alternative facility to ensure continuity of service, with no disruption to the scope of work outlined in this Contract.

5.7.7. Have or be able to access a functioning back-up generator on-site to ensure continuous operations and prevent any disruption to services in the event of a power outage.

5.7.8. Provide dedicated, secure office space for State staff, including necessary furniture (desks, chairs), access to a phone line, and reliable internet connectivity, to facilitate on-site management and oversight.

5.8. Provide Inventory Management:

5.8.1. Ensure products stored are within their shelf life. Contractor shall not ship the product to receiving locations if any product is past its expiration date as defined by the manufacturer.

5.8.1.1. At the discretion of the State, the Contractor shall dispose of any damaged and/or expired products, per manufacturer standards of disposal.

5.8.2. Utilize an inventory management system that has the following capabilities:

5.8.2.1. First-In First-Out (FIFO) methodology, unless otherwise directed by the State’s POC.

5.8.2.2. Invoicing.

5.8.2.3. Inventory control.

5.8.2.4. Inventory level reporting to include but not limited to inventory description, make/model, product/item numbers, quantities, lot numbers, and expiration dates.

5.9. Establish a critical point of contact list that covers regular working hours as well as critical response times (after-hours, weekends, and holidays) to guarantee the State contacts can reach vendor immediately.

5.10. When aware of an issue, immediately communicate in writing (email) with the State regarding issues involving but not limited to change management, distribution problems, etc., immediately upon obtaining this knowledge and propose a solution. The State reserves the right to evaluate and approve or deny the solution. If the solution is denied by the State as not meeting the requirements, the Contractor is responsible for proposing another solution.

5.11. Notify the State of any breaches in data confidentiality as soon as practical after becoming aware of the breach.

5.12. Provide reports electronically, including but not limited to the following:

5.12.1. As requested, On-Hand inventory reporting to include:

5.12.1.1. Inventory description.

ARIZONA DEPARTMENT

OF HEALTH SERVICES

150 N. 18th Avenue, Suite 530 Phoenix, Arizona 85007

REQUEST FOR PROPOSAL NO. BPM007099

5.12.1.2. Make/model.

5.12.1.3. Product/item numbers.

5.12.1.4. Quantities.

5.12.1.5. Lot numbers.

5.12.1.6. Expiration dates.

5.12.2. Outbound delivery reports to include:

5.12.2.1. Date of request.

5.12.2.2. Date of delivery.

5.12.2.3. Delivery address.

5.12.2.4. Product description.

5.12.2.5. Make and model.

5.12.2.6. Product number and/or item numbers.

5.12.2.7. Quantities.

5.12.2.8. Lot numbers.

5.12.2.9. Expiration dates.

5.12.2.10. Signature indicating receipt of item(s).

5.12.3. Damaged Inventory (incoming and outgoing).

5.12.4. The State reserves the right to request the Contractor submit additional or revised reports related to the service provisions and contract performance. Reporting requirements, methods, and/or formats may change during the contract term. The Contractor will be notified in writing about any change in reporting formats or requirements.

5.13. Contractor shall utilize the ADHS Warehouse Product Verification Form for any incoming shipments and email a completed form with pictures of the received shipment and individual products to the designated

ADHS POC.

5.14. Submit a detailed statement for shipping charges and vehicles used to the State’s POC at 150 North 18th Ave, Suite 300, Phoenix, Arizona, 85007.

6. STATE PROVIDED ITEMS

The State will provide:

6.1 An allocation and distribution report of items needed to pick, pack, and distribute.

6.2 ADHS Warehouse Product Verification Form that the Contractor shall utilize for receiving any incoming shipments.

ARIZONA DEPARTMENT

OF HEALTH SERVICES

150 N. 18th Avenue, Suite 530 Phoenix, Arizona 85007

REQUEST FOR PROPOSAL NO. BPM007099

7. APPROVALS

ADHS will require prior approval of:

7.1. Acceptance of any incoming deliveries for the State.

7.2. Any designated pick-ups and deliveries.

7.3. Disposal of any items.

7.4. Extension of the hours of operation to support the completion of work.

8. DELIVERABLES

The Contractor shall submit to the State:

8.1. Shipping Charges shall be submitted within five (5) business days after service is provided.

8.2. Invoices shall be submitted within five (5) business days after service is provided.

9. NOTICES, CORRESPONDENCE REPORTS AND INVOICES

9.1. Notices, correspondence, reports, invoices, and program specific requests relative to this Contract from the Contractor shall be sent to:

Arizona Department of Health Services Christina Blood Information Services Group Section Chief

BORR

150 North 18th Avenue, Suite 300, Phoenix, AZ 85007 Email: isggtt@azdhs.gov and invoices@azdhs.gov.

Phone: (480)322-6637

Arizona Department of Emergency and Military Affairs Sheldon B. Ross Logistics Section Chief & Branch Manager Emergency Management Logistics Branch 5636 E. McDowell Road, Bldg. M5103 Phoenix, AZ 85008-3495 Phone (602) 464-6242 Cell (480) 653-1564 Fax (480) 546.4983 sheldon.ross@azdema.gov logistics@azdema.gov dema.az.gov ap@azdema.gov

9.2. AUTOMATED CLEARING HOUSE.

9.2.1. ADHS may pay invoices for some or all Orders through an Automated Clearing House (ACH). In order to receive payments in this manner, the Contractor must complete an ACH Vendor Authorization Form (form GAO-618) within thirty (30) days after the effective date of the Contract.

The form is available online at: https://gao.az.gov/publications/forms.

mailto:isggtt@azdhs.gov mailto:invoices@azdhs.gov mailto:ap@azdema.gov https://gao.az.gov/publications/forms

ARIZONA DEPARTMENT

OF HEALTH SERVICES

150 N. 18th Avenue, Suite 530 Phoenix, Arizona 85007

REQUEST FOR PROPOSAL NO. BPM007099

9.2.2. ACH Vendor Authorization Form shall be emailed to Vendor.Payautomation@azdoa.gov.

mailto:Vendor.Payautomation@azdoa.gov

SPECIAL TERMS AND CONDITIONS

ARIZONA DEPARTMENT OF

HEALTH SERVICES

150 North 18th Ave, Suite 530

Phoenix, Arizona 85007

REQUEST FOR PROPOSAL NO. BPM007099

II. SPECIAL TERMS AND CONDITIONS

1. Purpose

Pursuant to provisions of the Arizona Procurement Code, A.R.S. 41-2501 Et Seq., the State of Arizona, ADHS, and DEMA-EM intend to establish a Contract for the materials or services as listed herein.

2. Term of Contract (1 Year)

The term of any resultant Contract shall commence upon final signature, and shall continue for a period of one (1) year thereafter, unless terminated, canceled, or extended as otherwise provided herein.

3. Contract Extensions (5 Year Maximum)

The Contract term shall begin as specified in the section Two (2) above, and shall continue for a period of one

(1) year subject to additional successive periods of twelve (12) months per extension with a maximum aggregate including all extensions not to exceed five (5) years.

4. Contract Type

X Fixed Price / Contractor Relationship

5. Contract Funding Type

X Federally Funded

6. Licenses

The Contractor shall maintain in current status, all federal, state and local licenses and permits required for the operation of the business conducted by the Contractor.

7. Information Disclosure

The Contractor shall establish and maintain procedures and controls that are acceptable to the State for the purpose of assuring that no information contained in its records or obtained from the State or from others in carrying out its functions under the Contract shall be used or disclosed by it, its agents, officers, or employees, except as required to efficiently perform duties under the Contract. Persons requesting such information should be referred to the State. The Contractor also agrees that any information pertaining to individual persons shall not be divulged other than to employees or officers of Contractor as needed for the performance of duties under the Contract, unless otherwise agreed to in writing by the State.

8. Key Personnel

8.1 It is essential that the Contractor provide adequate experienced personnel, capable of and devoted to the successful accomplishment of work to be performed under this Contract. The Contractor must agree to assign specific individuals to the key positions.

8.2 The Contractor agrees that, once assigned to work under this Contract, key personnel shall not be removed or replaced without written notice to the State. Such notice shall be given thirty (30) days prior to the reassignment or personnel’s last day assigned to the Contract.

8.3 Key personnel not available for work under this Contract for a continuous period exceeding thirty (30)

ARIZONA DEPARTMENT OF

HEALTH SERVICES

150 North 18th Ave, Suite 530

Phoenix, Arizona 85007

REQUEST FOR PROPOSAL NO. BPM007099

calendar days, or are expected to devote substantially less effort to the work than initially anticipated, the Contractor shall immediately notify the State, and shall, subject to the concurrence of the State, replace such personnel with personnel of substantially equal ability and qualifications.

8.4 The State Agency reserves the right to review resumes and participate in interviews for the hiring of any staff assigned to this Contract. Further, the State Agency reserves the right to deny or refuse any offered replacement personnel by the Planning Contractor.

9. Pricing

Most-Favored Customer - Throughout the life of the contract, the Contractor shall always offer the State the Most- Favored Customer or Highest Tier Customer price discount rate on contracted product(s) concurrent with a published price discount rate made to other Customers (both Private and Public sectors). The Contractor shall extend to the State that most-favored customer or Highest Tier Customer price discount on all new product lines during the life of the contract.

10. Non-Exclusive Contract

This Contract is issued with the understanding and agreement that it is for the sole convenience of the State of Arizona. The State reserves the right to obtain like goods or services from another source when necessary, or when determined to be in the best interest of the State.

11. Volume of Work

The State does not guarantee a specific amount of work either for the life of the Contract or on an annual basis.

12. Employees of the Contractor

All employees of the Contractor employed in the performance of work under the Contract shall be considered employees of the Contractor at all times, and not employees of the ADHS or the State. The Contractor shall comply with the Social Security Act, Workman’s Compensation laws and Unemployment laws of the State of Arizona and all State, local and Federal legislation relevant to the Contractor’s business.

13. Order Process

The award of a Contract shall be in accordance with the Arizona Procurement Code. Any attempt to represent any material and/or service not specifically awarded as being under Contract with State is a violation of the Contract and the Arizona Procurement Code. Any such action is subject to the legal and contractual remedies available to the state inclusive of, but not limited to, Contract cancellation, suspension and/or debarment of the Contractor.

14. Contractor Performance Reports

Program management shall document Contractor performance, both exemplary and needing improvements where corrective action is needed or desired. Copies of corrective action reports will be forwarded to the ADHS Procurement Office for review and any necessary follow-up. The Procurement Office may contact the Contractor upon receipt of the report and may request corrective action. The Procurement Office shall discuss the Contractor’s suggested corrective action plan with the Procurement Specialist for approval of the plan.

15. Payment Procedures

15.1. The State’s accounting will not make payments to any Entity, Group or individual other than the Contractor with the Federal Employer Identification (FEI) Number identified in the Contract. Contractor invoices

ARIZONA DEPARTMENT OF

HEALTH SERVICES

150 North 18th Ave, Suite 530

Phoenix, Arizona 85007

REQUEST FOR PROPOSAL NO. BPM007099

requesting payment to any Entity, Group or individual other than the contractually specified Contractor shall be returned to the Contractor for correction.

15.2. The Contractor shall review and ensure that the invoices for services provided show the correct Contractor name prior to sending them to the State Accounting Office for payment.

15.3. If the Contractor Name and FEI Number change, the Contractor must complete an “Assignment and Agreement” form transferring Contract rights and responsibilities to the new Contractor. ADHS must indicate consent on the form. A written Contract Amendment must be signed by both parties and a new W-9 form must be submitted by the new Contractor and entered into the system prior to any payments being made to the new Contractor.

16. Financial Management

16.1. For all contracts, the practices, procedures, and standards specified in and required by the Accounting and Auditing Procedures Manual for Arizona Department of Health Services funded programs shall be used by the Contractor in the management of Contract funds and by the ADHS when performing a Contract audit.

Funds collected by the Contractor in the form of fees, donations and/or charges for the delivery of these Contract services shall be accounted for in a separate fund.

16.2. State Funding. Contractors receiving state funds under this Contract shall comply with the certified

Compliance provisions of A.R.S. § 35-181.03.

16.3. Federal Funding. Contractors receiving federal funds under this Contract shall comply with the certified finance and compliance audit provision of the Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards (2 CFR 200) if applicable. The federal financial assistance information shall be stated in a Change Order or Purchase Order.

17. Inspection and Acceptance

All services, data and required reports are subject to final inspection, review, evaluation and acceptance by the State. The ADHS may withhold payment for services that are deemed to not meet Contract standards.

18. Authorization for Services

Authorization for purchase of services under this Contract shall be made only upon State issuance of a Purchase Order that is signed by an authorized agent. The Purchase Order will indicate the Contract number and the dollar amount of funds authorized. The Contractor shall only be authorized to perform services up to the amount on the Purchase Order. State shall not have any legal obligation to pay for services in excess of the amount indicated on the Purchase Order. No further obligation for payment shall exist on behalf of State unless a) the Purchase Order is changed or modified with an official State Procurement Change Order, and/or b) an additional Purchase Order is issued for purchase of services under this Contract.

19. Indemnification Clause

19.1. Contractor shall indemnify, defend with counsel reasonably approved by the State, and hold harmless, the

State, its departments, agencies, boards, commissions, universities, officers, agents and employees (collectively, the "Indemnitee") from and against any and all claims, actions, damages, costs (including attorneys' fees), and losses arising under this Contract, including, but not limited to, bodily injury or personal injury (including death) or loss or damage to tangible or intangible property, but excluding damages arising solely from the gross negligence or willful misconduct of the Indemnitee. This indemnification obligation includes any claim or amount arising out of, or recovered under, the Workers' Compensation Law or arising

ARIZONA DEPARTMENT OF

HEALTH SERVICES

150 North 18th Ave, Suite 530

Phoenix, Arizona 85007

REQUEST FOR PROPOSAL NO. BPM007099

out of the failure of Contractor to comply with any federal, state or local law, statute, ordinance, rule, regulation or court decree. Contractor shall have control, subject to the reasonable approval of the State, of the defense of any action on such claim and all negotiations for its settlement or compromise, provided, however, that when substantial principles of government or public law are involved, or when involvement of the State is otherwise mandated by law, the State may elect, in its sole and absolute discretion, to participate in such action at its own expense with respect to attorneys' fees and costs, but not liability, and the State shall have the right to approve or disapprove any settlement, which approval shall not be unreasonably withheld or delayed. The State shall reasonably cooperate in its defense and any related settlement negotiations.

19.2. This indemnity shall not apply if the Contractor or Sub-contractor(s) is/are an agency, board, commission or university of the State of Arizona.

20. Insurance Requirements

Insurance requirements are outlined in Exhibit One (1).

21. Health Insurance Portability and Accountability Act of 1996

21.1. The Contractor warrants that it is familiar with the requirements of HIPAA, as amended by the Health Information Technology for Economic and Clinical Health Act (HITECH Act) of 2009, and accompanying regulations and will comply with all applicable HIPAA requirements in the course of this Contract. Contractor warrants that it will cooperate with the Arizona Department of Health Services (ADHS) in the course of performance of the Contract so that both ADHS and Contractor will be in compliance with HIPAA, including cooperation and coordination with the Arizona Department of Administration-Arizona Strategic Enterprise Technology (ADOA-ASET) Office, the ADOA-ASET Arizona State Chief Information Security Officer and HIPAA Coordinator and other compliance officials required by HIPAA and its regulations. Contractor will sign any documents that are reasonably necessary to keep ADHS and Contractor in compliance with HIPAA, including, but not limited to, business associate agreements.

21.2. If requested by the ADHS Procurement Office, Contractor agrees to sign a “Pledge To Protect Confidential

Information” and to abide by the statements addressing the creation, use and disclosure of confidential information, including information designated as protected health information and all other confidential or sensitive information as defined in policy. In addition, if requested, Contractor agrees to attend or participate in HIPAA training offered by ADHS or to provide written verification that the Contractor has attended or participated in job related HIPAA training that is: (1) intended to make the Contractor proficient in HIPAA for purposes of performing the services required and (2) presented by a HIPAA Privacy Officer or other person or program knowledgeable and experienced in HIPAA and who has been approved by the ADOA-ASET Arizona State Chief Information Security Officer and HIPAA Coordinator.

22. Pandemic Contractual Performance

22.1. The State shall require a written plan that illustrates how the Contractor shall perform up to contractual standards in the event of a pandemic. The State may require a copy of the plan at any time prior or post award of a Contract. At a minimum, the pandemic performance plan shall include:

22.1.1. Key succession and performance planning if there is a sudden significant decrease in Contractor’s workforce;

22.1.2. Alternative methods to ensure there are products in the supply chain; and

22.1.3. An up to date list of company contacts and organizational chart.

ARIZONA DEPARTMENT OF

HEALTH SERVICES

150 North 18th Ave, Suite 530

Phoenix, Arizona 85007

REQUEST FOR PROPOSAL NO. BPM007099

22.2. In the event of a pandemic, as declared the Governor of Arizona, U.S. Government or the World Health Organization, which makes performance of any term under this Contract impossible or impracticable, the State shall have the following rights:

22.2.1. After the official declaration of a pandemic, the State may temporarily void the Contract(s) in whole or specific sections, if the Contractor cannot perform to the standards agreed upon in the initial terms;

22.2.2. The State shall not incur any liability if a pandemic is declared and emergency procurements are authorized by the Director as per A.R.S. 41-2537 of the Arizona Procurement Code; and

22.2.3. Once the pandemic is officially declared over and/or the Contractor can demonstrate the ability to perform, the State, at is sole discretion, may reinstate the temporarily voided Contract(s).

22.3. The State, at any time, may request to see a copy of the written plan from the Contractor. The Contractor shall produce the written plan within seventy-two (72) hours of the request.

23. Contracting; Procurement; Investment; Prohibitions

23.1. A public entity may not enter into a contract with a company to acquire or dispose of services, supplies, information technology or construction unless the contract includes a written certification that the company is not currently engaged in, and agrees for the duration of the contract to not engage in, a boycott of Israel.

23.2. A public entity may not adopt a procurement, investment or other policy that has the effect of inducing or requiring a person or company to boycott Israel.

24. Fraud, Waste, and Abuse

24.1. ADHS requires all employees to abide by the State’s Personnel System Rules, R2-5A-501; Standards of Conduct which includes maintaining high standards of honesty, integrity, and impartiality, free from personal considerations and/or favoritism, and Code of Conduct for individuals engaged in Accounting, Financial and Budgeting Activities which depicts the moral, ethical, legal and professional aspects of personal conduct.

ADHS requires the same conduct of its consultants, vendors, contractors, subrecipients, or persons doing business with the agency.

24.2. Any State employee, consultant, vendor, contractor or subrecipient or person doing business with the

Agency who receives a report of improper activity must report the information within one (1) business day.

Note: Federal Award policy denotes awardees must disclose, in a timely manner, in writing to ADHS all violations of Federal Criminal Law, involving fraud, bribery, or gratuity violations potentially affecting Federal Awards.

24.3. Anyone suspecting Fraud, Waste, or Abuse related to ADHS activities are required to report Fraud, Waste, or abuse through any of the following reporting channels:

24.3.1. ADHS Ethics Action Hotline at (602) 542-2347,

24.3.2. ADHS Ethics Action Email at reportethics@azdhs.gov ,or

24.3.3. General Accounting Office (GAO) Fraud Reporting Email at reportfraud@azdoa.gov to report Fraud, Waste, or Abuse incidents mailto:reportethics@azdhs.gov mailto:reportfraud@azdoa.gov

ARIZONA DEPARTMENT OF

HEALTH SERVICES

150 North 18th Ave, Suite 530

Phoenix, Arizona 85007

REQUEST FOR PROPOSAL NO. BPM007099

25. General Provisions for Services

25.1 Applicability. Section 25 applies to the extent the Work is or includes Services.

25.2 Comprehensive Services. Contractor shall provide the comprehensive range of Services for which a price is established in the Contract for ordering.

25.3 Additional Services. State at its discretion may modify the scope of the Contract by Contract Amendment to include additional Services or service categories that are within the general scope of the ones originally covered by the Contract. Once the Contract Amendment is fully executed, Contractor shall then update all applicable pricing and make them available. Either party may make the request to add Services to the Contract; regardless of who makes the request, the parties shall negotiate in good faith a fair price for any additional Services, but State may elect not to add some or all of the Services in question if no agreement is reached on pricing in a timely manner. Contractor’s request or proposal in response to State’s request shall include documentation demonstrating that the proposed price for the additional Services is both fair and reasonable and comparable to the original prices.

25.4 Off-Contract Services. Contractor shall ensure that the ordering process for the Services prevents Orders for Services not included in the scope of the Contract (and for which no price or compensation has been established in the Contract) or Services explicitly excluded from the Contract. Notwithstanding that State might have its own internal administrative rules regarding off-contract or excluded ordering of Services, and endeavors to prevent such Orders from occurring, Contractor is responsible for not accepting any such Orders. State may, at its discretion, cancel any such Order without obligation.

25.5 Removal of Personnel. Notwithstanding that Contractor is in every circumstance responsible for hiring, assigning, directing, managing, training, disciplining, and rewarding its personnel, State may at its discretion, and without the obligation to demonstrate cause, instruct Contractor to remove any of its personnel from State’s facilities or from further assignment under the Contract. In such cases, Contractor shall promptly replace removed personnel with other personnel that have equivalent qualifications, experience, and capabilities.

25.6 Accuracy of Work. Contractor is responsible for the accuracy of the Services, and shall promptly make all necessary revisions or corrections resulting from errors and omissions on its part without additional compensation. Acceptance by State shall not relieve Contractor of responsibility for correction of any errors discovered subsequently or necessary clarification of any ambiguities.

25.7 Requirements at Location of Services

25.7.1 Contractor personnel shall perform their assigned portions of the Services at the specific location indicated in the Order. Contractor acknowledges that the location might be inside an industrial building, institutional building, or one of various office types and classes.

25.7.2 If performing the Services requires Contractor personnel to work inside a secured perimeter at certain institutional facilities (including but not limited to the Arizona State Hospital) where prior clearances may be required, Contractor shall contact the facility directly in advance of performing the Services to confirm its current security clearance procedures, allowable hours for work, visitor dress code, and other applicable rules. State shall not pay any additional fees (including but not limited to services charges) or excuse late performance, if Contractor has failed to comply with these requirements.

25.8 Acceptance of Services. State has the right to accept Services subject to acceptance criteria. State may apply acceptance criteria to the Contract or a specific Order, which may include, but are not limited to, accuracy, completeness, conformance to requirements, or quality. State shall not pay Contractor for

ARIZONA DEPARTMENT OF

HEALTH SERVICES

150 North 18th Ave, Suite 530

Phoenix, Arizona 85007

REQUEST FOR PROPOSAL NO. BPM007099

unaccepted Services, and State may, at its discretion, withhold or make partial payment for any rejected Services, while Contractor is in the process of re-performing or otherwise curing the grounds for State’s rejection.

25.9 Corrective Action Required. Notwithstanding any other guarantees, general warranties, or particular warranties Contractor has given under the Contract, and in addition to any other rights and remedies available under the Contract, if Contractor fails to perform any material portion of the Services including, but not limited to, failure to complete any contractual deliverable or failure to meet agreed-upon service levels or service standards set out in or referred to in the Contract, then Contractor shall perform a root-cause analysis to identify the source of the failure and use all commercially reasonable efforts to correct the failure and meet the Contract requirements as promptly as is practicable.

25.9.1 Contractor shall provide State a report detailing the identified cause and setting out its detailed corrective action plan promptly after the date the failure occurred (or the date when the failure first became apparent, if it was not apparent immediately after occurrence).

25.9.2 State may demand to review and approve Contractor’s analysis and plans, and Contractor shall make any and all reasonable corrections State instructs and adopt State’s recommendations, including any measures State determines to be necessary for employee or public safety, or the protection of property or the environment.

25.9.3 Contractor shall take the necessary action(s) to avoid any like failures in the future.

26. Federal Funding Provisions (Applicable for All Federally Funded Contracts)

The Federal Funding Accountability and Transparency Act (FFATA or Transparency Act - P.L.109-282, as amended by section 6202(a) of P.L. 110-252), found at https://www.fsrs.gov/

If applicable, the subrecipient or sub-awardee is required to abide by the Federal Funding Accountability and Transparency Act (FFATA or Transparency Act – P.L. 109-282, as amended by section 6202(a) of P.L. 110-252), found at https://www.fsrs.gov/. The associated Grant Reporting Certification Form and completion instructions will be sent to the subrecipient from ADHS Program(s) responsible for the specific contract. The subrecipient or sub-awardee must return the completed form to ADHS Program(s) by the 15th of the month following that in which the award was received. Failure to complete a required Grant Reporting Certification Form may result in loss of funding.

27. Unique Entity Identifier (UEI) Requirement

Pursuant to 2 CFR 25.100 et seq., no entity (defined as a Governmental organization, which is a State, local government, or Indian tribe; foreign public entity; domestic or foreign nonprofit organization; domestic or foreign for-profit organization; or Federal agency, but only as a sub-recipient under an award or sub-award to a non-Federal entity) may receive a sub-award from ADHS unless the entity provides its Unique Entity Identifier Number to ADHS.

The number can be created in SAM.gov. If already registered the UEI has been assigned and can be viewed in SAM.gov

28. §200.216 Prohibition on Certain Telecommunications and Video Surveillance Services or Equipment

28.1 Recipients and sub-recipients are prohibited from obligating or expending loan or grant funds to:

28.1.1 Procure or obtain;

28.1.2 Extend or renew a contract to procure or obtain; or

28.1.3 Enter in a contract (or extend or renew a contract) to procure or obtain equipment, services, or https://www.fsrs.gov/

ARIZONA DEPARTMENT OF

HEALTH SERVICES

150 North 18th Ave, Suite 530

Phoenix, Arizona 85007

REQUEST FOR PROPOSAL NO. BPM007099

systems that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system. As described in Public Law 115-232, section 889, covered telecommunications equipment is telecommunications equipment produced by Huawei Technologies Company or ZTE Corporation (or any subsidiary or affiliate of such entities).

28.1.3.1 For the purpose of public safety, security of government facilities, physical security surveillance of critical infrastructure, and other national security purposes, video surveillance and telecommunications equipment produced by Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company, or Dahua Technology Company (or any subsidiary or affiliate of such entities).

28.1.4 Telecommunications or video surveillance services provided by such entities or using such equipment. Telecommunications or video surveillance equipment or services produced or provided by an entity that the Secretary of Defense, in consultation with the Director of the National Intelligence or the Director of the Federal Bureau of Investigation, reasonably believes to be an entity owned or controlled by, or otherwise connected to, the government of a covered foreign country.

29. Point of Contact

29.1 It is essential that the Contractor provide a Point of Contact, capable of and devoted to the successful accomplishment of work to be performed under this Contract. The Contractor must agree to assign a specific individual to serve as a primary day-to-day contact.

29.2 The Contractor agrees that, once assigned to work under this Contract, the Point of Contact shall not be removed or replaced without written notice to the State.

29.3 If the Point of Contact is not available for work under this Contract for a continuous period exceeding thirty

(30) calendar days, or is expected to devote substantially less effort to the work than initially anticipated, the Contractor shall immediately notify the State, and shall, subject to the concurrence of the State, replace such personnel with personnel of substantially equal ability and qualifications.

30. Most-Favored Customer

Throughout the life of the Contract, the Contractor shall always offer the State the Most-Favored Customer or Highest Tier Customer price discount rate on contracted product(s) concurrent with a published price discount rate made to other Customers (both Private and Public sectors). The Contractor shall extend to the State that most-favored customer or Highest Tier Customer price discount on all new product lines during the life of the contract.

31. Non-Exclusive Contract

Any contract resulting from this solicitation shall be awarded with the understanding and agreement that it is for the sole convenience of the State of Arizona. The State reserves the right to obtain like goods or services from another source when necessary, or when determined to be in the best interest of the State.

32. Volume of Work

The ADHS does not guarantee a specific amount of work either for the life of the Contract or on an annual basis.

ARIZONA DEPARTMENT OF

HEALTH SERVICES

150 North 18th Ave, Suite 530

Phoenix, Arizona 85007

REQUEST FOR PROPOSAL NO. BPM007099

33. Information Disclosure

The Contractor shall establish and maintain procedures and controls that are acceptable to the State for the purpose of assuring that no information contained in its records or obtained from the state or from others in carrying out its functions under the Contract shall be used or disclosed by it, its agents, officers, or employees, except as required to efficiently perform duties under the Contract. Persons requesting such information should be referred to the State.

The Contractor also agrees that any information pertaining to individual persons shall not be divulged other than to employees or officers of the Contractor as needed for the performance of duties under the Contract, unless otherwise agreed to in writing by the State.

34. Employees of the Contractor

All employees of the Contractor employed in the performance of work under the Contract shall be considered employees of the Contractor at all times, and not employees of the ADHS or the State. The Contractor shall comply with the Social Security Act, Workman’s Compensation laws and Unemployment laws of the State of Arizona and all State, local and Federal legislation relevant to the Contractor’s business.

35. NEW PRODUCTS/SERVICES

The State, at its sole discretion may allow new products or services identified by the Contractor or ADHS to be incorporated. The request may be submitted at any time during the Contract period. The requested products or services shall align with the current Scope of Work and Price List. environment and capable of meeting or exceeding all stated requirements. No substitutions shall be offered and accepted, including remanufactured or second tier offerings.

36. THE FEDERAL FUNDING ACCOUNTABILITY AND TRANSPARENCY ACT (FFATA OR TRANSPARENCY ACT

- P.L.109-282, AS AMENDED BY SECTION 6202(A) OF P.L. 110-252), FOUND AT HTTPS://WWW.FSRS.GOV/

If applicable, the subrecipient or sub-awardee is required to abide by the Federal Funding Accountability and Transparency Act (FFATA or Transparency Act – P.L. 109-282, as amended by section 6202(a) of P.L. 110-252), found at https://www.fsrs.gov/. The associated Grant Reporting Certification Form and completion instructions will be sent to the subrecipient from ADHS Program(s) responsible for the specific contract. The subrecipient or sub-awardee must return the completed form to ADHS Program(s) by the 15th of the month following that in which the award was received. Failure to complete a required Grant Reporting Certification Form may result in loss of funding.

37. 2 CFR §200.216 PROHIBITION ON CERTAIN TELECOMMUNICATIONS AND VIDEO SURVEILLANCE

SERVICES OR EQUIPMENT

Recipients and sub-recipients are prohibited from obligating or expending loan or grant funds to:

37.1 Procure or obtain.

37.2 Extend or renew a contract to procure or obtain; or

37.3 Enter in a contract (or extend or renew a contract) to procure or obtain equipment, services, or systems that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system. As described in Public Law 115-232, section 889, covered telecommunications equipment is telecommunications equipment produced by Huawei Technologies Company or ZTE Corporation (or any subsidiary or affiliate of such entities).

37.3.1 For the purpose of public safety, security of government facilities, physical security surveillance of critical infrastructure, and other national security purposes, video surveillance and telecommunications equipment produced by Hytera Communications Corporation, Hangzhou…