CTR054962 Demand for Assurance 2021-07-14.pdf

One ADOT in service to all

ARIZONA DEPARTMENT OF TRANSPORTATION

1739 W. Jackson St. | Suite A, MD 100P | Phoenix, AZ 85007 | azdot.gov

Procurement Douglas A. Ducey, Governor John S. Halikowski, Director

Sonya Herrera, Division Director

July 14, 2021

Appraisal Technology ATTN: Zach Sinay 220 South River Drive Tempe AZ 85024 Email: ZSinay@atiaz.com

Subject: CTR054962 / Real Estate Appraisal and Valuation Services, Statewide

Dear Mr. Sinay:

On May 7, 2021, an award letter was sent to Appraisal Technology notifying of contract award. Included in the letter was the request for Certificate(s) of Insurance.

Pursuant to the contract Special Terms and Conditions, Paragraph 16, Insurance Requirements, “The Contractor shall furnish Certificate(s) of Insurance inclusive of the following requirements to the Department. Certificate(s) shall be received within ten (10) calendar days of notification of contract award by the Procurement Officer.” As of this date, complete Certificates of Insurance have not been received by ADOT Procurement or Risk Management.

This letter serves as a demand for assurance, per Uniform Terms and Conditions, Paragraph 8.1 Right to Assurance along with a reminder to Appraisal Technology of its contractual responsibilities and requires immediate action and resolution to bring this contract into compliance.

Please submit the required Certificates of Insurance to stohtsoni@azdot.gov no later than close of business July 21, 2021. Failure to provide the required documents, the Department will have no other choice than to terminate Appraisal Technology for default, per the Uniform Terms and Conditions, Paragraph 9.5, Termination for Default.

Please provide a written response as to what steps your company will take to ensure that this deficiency is immediately rectified. The written response is due to Procurement no later than close of business July 16, 2021 and should be emailed to my attention at stohtsoni@azdot.gov.

Should you have any questions regarding this notice, please contact me at 602-712-8595.

Sincerely, Sharon L Tohtsoni Procurement Officer cc: file

DocuSign Envelope ID: 96B72BCC-BB6F-48EF-ADBA-843B01ABFB62

June 16, 2021

TO: Arizona Department of Transportation

Procurement

1739 W. Jackson Street, Suite A, MD 100P

Phoenix, AZ 8500716

ATTN: Ms. Sharon L. Tohtsoni

Senior Procurement Officer

RE: CTR054962 / Real Estate Appraisal and Valuation Services, Statewide

Dear Ms. Tohtsoni:

Prior to this letter, I believe that Appraisal Technology has sent over the proper documents to satisfy the required Certificates of Insurance and I am hopeful that they will allow Appraisal

Technology be compliant with the insurance requirements.

I realize that in my most recent email dated July 14, 2021, we included a separate Workmen’s

Compensation Certificate, however I believe that the required Workman’s Compensation

Insurance was also referenced within the COI that was sent on June 25, 2021.

We sent our insurance certificates within days of the Award Letter notification and were then advised about the documents we did not supply correctly. After speaking with our insurance carrier to obtain the appropriate documents, we were told that our provider was unable and/or unwilling to provide the requested certificates. At that time, we notified ADOT of the situation and asked our broker to locate a new insurance carrier. This was the point where the time-line became very difficult for us, as it was somewhat out of our hands as we waited for a response from our insurance broker. Our broker indicated that they were working on it, yet they were being very unresponsive to our requests. After many weeks, we finally contacted a different broker to obtain a quote and received the information the next day and immediately sent the new insurance information to

ADOT. I believe that we had all of the information required in the COI attachment within our June

25, 2021 email but there was also a comment that a Workmen’s Compensation certificate would be forthcoming. Although it appears that the COI supplied on June 25 did include Workmen’s

Compensation, I think this is where the miscommunication happened. Unfortunately, a

Workmen’s Compensation certificate (separated from the COI sent on June 25) was not sent, as was mentioned in the June 25 email and this is where the culpability of our company occurred.

It was a challenge for us dealing with the apparent indifference of our old insurance broker and carrier, but now with a new more responsive insurance broker I think we are better off. I do apologize for the inconvenience of this having dragged on for so long.

APPRAISAL TECHNOLOGY, INC.

220 South River Drive ❖ Tempe, Arizona 85281 ❖ (480) 446-9600 ❖ Fax: (480) 446-9615

As I mentioned, I am hopeful that the documents supplied on June 14, 2021 are all that are required and we will become compliant.

Thank you, Sharon.

Sincerely, Zach Sinay, MAI, R/W-AC

Certified General Real Estate Appraiser No. 31199

480.285.3868 zsinay@atiaz.com

220 South River Drive ❖ Tempe, Arizona 85281 ❖ (480) 446-9600 ❖ Fax: (480) 446-9615