CTR049354_Contract_Amendment_No._2_06182024.pdf

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CONTRACT AMENDMENT

CONTRACT NO.:

AMENDMENT NO.:

TITLE:

CONTRACTOR:

CTR049354

ARIZONA VEHICLE EMISSIONS INSPECTIONS PROGRAM

(CENTRALIZED)

GORDON-DARBY ARIZONA TESTING, INC.

ADEQ PROCUREMENT

1110 W. Washington Street

Phoenix, AZ 85007

602-771-2666

Pursuant to the Uniform Terms and Conditions, Provision 5.0 Contract Changes, Section 5.1 Amendments, the Contract is hereby amended as follows which with an effective date of July 1, 2024:

1. The Contract term is hereby extended by two (2) years to remain in effect through June 30, 2026 with no ‘Contractor’ contract test fee increase.

2. Emissions Station Test fees are based on Test Type in Area A (Phoenix Area) and Area B (Tucson Area) and posted on

ADEQ’s myAZcar.com website and are as follows: https://www.myazcar.com/testing-info-and-fees:

Area A (Phoenix Area) Fees Test Type Fee

On-board Diagnostic (OBD) $17.00

IM147 $17.00

Steady State Loaded/Idle $16.00

Loaded Opacity $16.00

Snap Opacity $25.00

Area B (Tucson Area) Fees

Test Type Fee

On-board Diagnostic (OBD) $12.25

Steady State Loaded/Idle $12.25

Loaded Opacity $12.25

Snap Opacity $12.25 https://www.myazcar.com/testing-info-and-fees

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3. Area A (Phoenix Area) and Area B (Tucson Area) Additional Customer Fees Outside of Standard Emission Testing Fees are as follows:

Area A and Area B Additional Customer Fees Outside of Standard Emission Testing Fees Note: ADEQ and/or Contractor Involved in the Fee Transaction as Noted in the Table Below

4. Section 2-A Scope of Work, 1.0 Centralized Vehicle Emissions Inspection, 4. Arizona Vehicle Emissions Inspection

Program Operation, Section 4.1 Hours of Operation is amended for Operations to be closed on the ten (10) Arizona

State Holidays and amend the Hours of Operations as follows:

a. Add the following four (4) Arizona Department of Administration recognized State Holidays to when Vehicle

Emissions Facilities and Operations will be closed:

Martin Luther King, Jr. / Civil Rights Day

Lincoln / Washington / Presidents’ Day

Columbus Day

Veterans Day

b. Vehicle Emissions Facilities and Operations will be open on Christmas Eve.

c. Emissions Testing Station Hours of Operation will be modified from “8:00 am to 7:00 pm, weekdays, and 8:00 am to 5:00 pm Saturdays” to “8:00 am to 5:00 pm Monday thru Saturday”. Waiver/Referee Lane Station Hours of Operation will remain as “8:00 am to 4:30 pm Monday thru Friday” as posted on ADEQ’s myAZcar.com website https://www.myazcar.com/locations-waivers.

d. Section 4.1 is hereby amended to read as follows:

“4.1 Emission Testing Station Hours of Operation: The days and daily hours that the VEIP Program shall be operated are from 8:00 am to 5:00 pm Monday thru Saturday (Waiver/Referee Lane Station 8:00 am to 4:30 pm

Monday thru Friday), unless variations (such as early summer hours) are pre-approved by ADEQ. Contractor need not operate stations on the following ten (10) Arizona State Holidays, A.R.S. § 1-301: New Year’s Day;

Martin Luther King, Jr. / Civil Rights Day; Lincoln / Washington / Presidents’ Day; Memorial Day; 4th of July;

Labor Day; Columbus Day; Veterans Day; Thanksgiving, and Christmas Day.

5. Contract Pricing Sheet, Liquidated Damages. The Maximum Amount of Liquidated Damages Payable to the

Contractor for each potential contract year (as shown in table below) for years July 1, 2024-June 30, 2025, July 1, 2025-

June 30, 2026, July 1, 2026-June 30, 2027, and July 1, 2027-June 30, 2028 are hereby incorporated into Contract. Level I is the maximum amount if there is no reasonable compensation paid to the Contractor because the State does not acquire the Contractor’s assets. Level II is the maximum amount if reasonable compensation is paid to the Contractor for the

State’s acquisition of assets.

Contract Year Time Period Maximum amount of Liquidated Damages

Level 1 Level II

July 1, 2024 - June 30, 2025 $ 1,116,979 $ 1,683,368

July 1, 2025 - June 30, 2026 $ 676,280 $ 838,105

July 1, 2026 - June 30, 2027 $ 525,183 $ 548,301

July 1, 2027 - June 30, 2028 $ - $ -

Out of State Exemption Fee $9.50 ADEQ

Vehicle Emission Waiver Fee $15.00 ADEQ & Contractor

Director's Certificate $9.50 ADEQ & Contractor

Certificate of Inspections $11.50 ADEQ

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6. IM Readiness Checker Program. Contractor to continue to manage and maintain the IM Readiness Checker Program and all IM Ready Checker assets. Contractor to provide its IM Readiness Checker Program standard operating procedures

(SOP) / processes, Readiness Checker Program business rules, and Communication Plan with ADEQ Program for approval prior to IM Readiness Checker Program implementation by Contractor. Contractor informational brochure will contain

Contractor Contact Center number and will serve as the point of contact for customer complaints for the IM Readiness

Checker Program. Contractor will train Contact Center staff on handling calls. Contractor maintains full financial responsibility for the Readiness Checker Program. ADEQ shall have no financial responsibility for the Readiness Checker

Program. For the duration of Contract, Contractor is to submit any SOP updates to ADEQ Program for review/approval prior to SOP implementation. Specifically, Contractor intends to implement the Readiness Checker Program in two Phases as this phase structure allows for time for equipment procurement and certification. Phase 1- Continue to run the Readiness

Checker Program as currently implemented. Phase 2- Implement no later than December 31, 2024. ADEQ is to review/approve all that is associated with Phase 2 prior to implementation. This includes, but is not limited to, the cost of the device if not returned to Contractor and all brochures/forms. Readiness Checker Program SOP (Version June 5, 2024) is attached (4 pages).

7. All other Requirements, Specifications, Terms and Conditions, and Pricing as awarded remain unchanged.

GORDON-DARBY ARIZONA TESTING, INC.

ARIZONA DEPARTMENT OF ENVIRONMENTAL QUALITY

The Contractor hereby acknowledges receipt and understanding of the above Amendment.

The above referenced contract Amendment is hereby executed this day at Phoenix, Arizona.

Signature of Authorized Individual Date

Date

Typed or Printed Name and Title Louis Anaya, MPA, C.P.M., CPPB

Chief Procurement Officer Available online at Arizona Procurement Portal (APP) eProcurement System https://appstate.az.gov

Joseph CampanellaProgram Manager

6/18/2024 6/18/2024 https://appstate.az.gov/

READINESS CHECKER PROGRAM SOP (Version June 5, 2024) – ADEQ shall be notified regarding any proposed changes to this SOP and will have the ability to review and approve prior to any changes.

The purpose of this program is to provide customers with an additional tool to know when their OBD equipped vehicle is ready to be tested after having been initially rejected from testing due to an unreadiness condition.

The program is completely voluntary and will not cost the customer anything unless the Ready Checker (RC) device is not returned to the VEIP station. The customer will be made aware of this single condition for participation in the program.

Readiness Checker Program Revisions (from Pilot)

The Readiness Checker Program will be implemented in two phases, as detailed below. This phase in structure allows time for equipment procurement and certification.

Phase I- July 01, 2024:

• The Ready Checker program will continue as is until Phase II.

Phase II- No later than December 31, 2024: ADEQ to review and in collaboration with GD approve changes associated with Phase II prior to implementation. This includes but is not limited to cost of the device if not returned and all brochures/forms.

• The Ready Checker Program will be automated with the ability to charge customers if devices are not returned. Customers will receive a revised Customer Brochure at the time of distribution. The customers who participate in the program will also be required to sign (written or electronically) a form regarding responsibility for returning the ready checker and the amount of the charge if the device is not returned.

Readiness Checker Device Cost

Gordon-Darby will not seek to make any profit in the case when a customer is charged for non-return of a Readiness Checker device. The non-return fee is simply intended to increase the device return rate and allow the program to replace devices lost or not returned. While the cost of devices fluctuates, Gordon- Darby will seek to keep costs as low as possible. The current cost of the devices, and the amount that customers will be made aware of when participating in the program, is $75.00. Gordon-Darby will inform ADEQ of any future changes in the cost of these devices before modifying the cost to the customer.

Readiness Checker Program Steps

1. A vehicle presented for testing is identified as OBD unready. Therefore, the vehicle is not ready to complete the emissions testing.

2. The inspection process will reject the vehicle for unreadiness and provide the customer with a VIR identifying the monitors that are unready and the reason for the rejection.

3. The customer is briefly made aware of the Ready Checker program by the inspector and is directed to the station lobby for a further explanation.

Version June 5, 2024

4. GDAT office staff will explain the OBD Unreadiness condition that is preventing the completion of the test, as well as offer the customer the option to use a Ready Checker to identify when the vehicle will be ready for testing. The customer may return the ready checker to any station and receive their inspection.

Note: This RC opportunity will not be provided to mechanics, dealerships, or shop employees who are testing vehicles on behalf of their customers. In practice, these mechanics do not enter the office lobby for explanation given they have their own tools for diagnosis.

5. If the customer agrees to participate in the Ready Checker program, GDAT office personnel will select a Ready Checker from the available stock and perform the following:

- “Check out” the Ready Checker from available inventory by scanning a barcode label affixed to the device and assign it to the VIN in question.

- The customer will be required to supply a valid credit card, which will be run for an “Authorization” transaction to ensure the card is valid and allow the system to securely store the card information. At this time, the customer will acknowledge the statement “I agree to return the Ready Checker, or my credit card will be charged $75.00 for the replacement cost of the device”. The customer’s signature will be captured and made available to ADEQ upon request. Customer card information collected this way will be stored in a manner in keeping with PCI-DSS compliance regulations and best practices. It is important to note that no funds will be collected unless the customer does not return the device.

6. GDAT office staff will explain how the Ready Checker device works and provide the Customer Brochure. The Ready Checker operation is very easy for a customer to understand. The device has 3 lights, providing the following guidance:

Light Indicators

Yellow Light = Not Ready (Customer will be instructed to continue driving the vehicle until the light turns green)

Green Light = Ready (Customer will be instructed to return to the station for their inspection)

Red Light = Ready/Fail (Customer will be instructed that the vehicle is ready, but also in a failing status and should seek repairs prior to returning.)

7. Upon return to the VEIP, the system will alert the lane inspector that the customer’s vehicle has a Ready Checker assigned and the inspector will then ask the customer for the device prior to conducting the reinspection.

VEHICLE RETEST:

• After scanning the vehicle’s VIN or VIR barcode, the lane software will prompt the inspector to ask for the Ready Checker device when a device has been assigned to the vehicle. If returned to the inspector, the lane software will place the device back into inventory and disassociate it from the vehicle. If the device is not returned, the lane software will prompt the lane inspector to notify the customer that an additional charge for the replacement of the RC will be charged to the credit card used to enroll in the Ready Checker Program.

Scenario 1 - Ready Checker is present at time of retest:

• If Yes, lane software (SW) will ask “Is Vehicle Ready to Test, Yes, or No?”

(The inspector will confirm the Ready Checker is showing either an illuminated Green or Red light.)

o If Yes, “Vehicle is ready to test,” is selected, the SW will Prompt, “Remove the Ready Checker and Scan Ready Checker Barcode,” (By scanning the barcode, the SW is automatically returning Ready Checker to stations inventory.)

1. Inspector performs an inspection on the vehicle.

o If NO is selected, indicating vehicle is NOT ready to test, the software will prompt, “Will

Ready Checker be returned”? Yes or No.

1. If Yes, Ready Checker is returned, the Inspector will call for the manager to scan

RC barcode and the manager’s RFID confirming return and then deposit it into the RC drop box on one of the center cabinets.

• Vehicle will be tested and rejected as OBD Unready. (Once the customer returns the Ready Checker and is still not ready, the 1, 3, 7-day return clock is activated.) The Manager, Assistant Manager or the TA will be responsible for physically returning the Ready Checker to the TA office/station inventory.

2. If No, Ready Checker is not returned, the Inspector will reject the vehicle to maintain a record of the visit. The inspector will re-attach Ready Checker and instruct the customer to go into lobby if additional information is needed.

Scenario 2 - Ready Checker is not present at time of retest:

• In this situation, the lane software has alerted the inspector that a device is to be returned but the customer does not have the device. The customer will be notified that in addition to the appropriate test fee, the credit card used to enroll in the Ready Checker program will be charged the amount indicated in the affidavit they signed when they enrolled in the program.

• If the customer refuses the reinspection and wishes to return later with the device, the vehicle will be rejected to maintain a record of the visit.

• If the customer does not refuse, the inspector will continue with the OBD test, charging the appropriate test fee, and Ready Checker non-return fee if applicable. The customer will be able to return the Ready Checker later and request a refund. Refunds will be granted if the Ready Checker is returned in working order.

REPORTING:

• The Ready Checker inventory will be automatically updated with each transaction (device issuance and device return). A portal report will be created that provides operations with the current RC inventory by model year groups, so inventory can be rebalanced as needed.

DDS REPORTING:

• The DDS reporting will be revised to separate Ready Checker reimbursement from testing funds.

END