CTR065087_Contract_Documents.pdf

Procurement OFFER AND ACCEPTANCE

Solicitation No: BPM004979 Available online at https://app.az.gov

Rev 09/2022

OFFER

TO THE STATE OF ARIZONA:

The undersigned hereby offers and agrees to perform in compliance with all terms, conditions, specifications and amendments of this solicitation and any written exceptions in the offer. Signature also acknowledges receipt of all pages indicated in the Table of Contents.

Offeror (Company) Name Signature of Person Authorized to Sign Offer

Address Printed Name Date

City State Zip Title

Email Address Phone Number

Company Email Address Fax Number

By signature in the Offer section above, the Offeror certifies that the submission of the Offer did not involve collusion or other anticompetitive practices.

ACCEPTANCE OF OFFER (FOR DEPARTMENT USE ONLY)

The Contractor is now bound to perform based upon Contract Number _________________________________including all terms, conditions, specifications, amendments, etc., and the Contractor's offer as accepted by the state.

The Contractor is hereby cautioned not to commence any billable work or provide any material, service or construction under this contract until contractor receives a purchase order document.

State of Arizona

Effective this day of 20

Procurement Officer Awarded Date

RR Donnelley

35 West Wacker Drive

Chicago, IL 60601

Timothy.Macey@rrd.com support@rrd.com

602-717-6864

Account Manager

Timothy Macey

DocuSign Envelope ID: 00863366-F1B7-4D13-85F9-9130BD4620D5

3/27/2023

2327th

CTR065087

March

Procurement

ARIZONA DEPARTMENT OF TRANSPORTATION

1739 W. Jackson Street, MD 100P

Phoenix, AZ 85007 602.712.7211

Solicitation Amendment Summary SOLICITATION NO.: BPM004979 AMENDMENT NO.: One (1)

DESCRIPTION: Central Production Forms & Equipment

Rev. 04/2020

Pursuant to the Uniform Instructions to Offerors, Item B.6, Solicitation Amendments, the above referenced solicitation shall be amended as follows:

1. The Pre-Offer Conference has been re-scheduled for December 12, 2022 at 1:00 PM MST. The Meeting will be held via Google Hangouts Meet.

2. The following Commodity Codes have been added to the Solicitation: 44101503 – Multifunction Machines, 55121607 – Decals, 81111802 – Mainframe Administration Services, 81111812 – Computer Hardware Maintenance Support Services, and 82000000 – Editorial and Design and Graphic Fine Art Services.

3. All other terms, conditions and provisions of this solicitation remain unchanged.

602.712.7211

Solicitation Amendment Summary SOLICITATION NO.: BPM004979 AMENDMENT NO.: Two (2)

Pursuant to the Uniform Instructions to Offerors, Item B.6, Solicitation Amendments, the above referenced solicitation shall be amended as follows:

1. The numbering sequence on the Solicitation Requirements has been corrected, to include Section 17 through Section 43 of the Special Terms and Conditions.

2. All other terms, conditions and provisions of this solicitation remain unchanged.

STATE OF ARIZONA

1739 W. Jackson St., Ste. A

REQUEST FOR PROPOSAL

SOLICITATION NUMBER: BPM004979

QUESTIONS: Inquiries regarding the solicitation are to be submitted online through the State’s e-Procurement system, Arizona Procurement Portal (APP) (https://app.az.gov/) using the Discussion Forum tab.

OFFERORS ARE STRONGLY ENCOURAGED TO READ THE ENTIRE SOLICITATION.

Tiffany Connell Procurement Officer Phone: 602-712-8544 Email: tconnell2@azdot.gov

This solicitation is issued in accordance with A.R.S. §41-2534 and A.A.C. R2-7-C301 et seq., Competitive Sealed Proposals.

“An Equal Opportunity Agency”

The Arizona Department of Transportation, in accordance with the provisions of Title VI of the Civil Rights Act of 1964 (78 Stat. 252.42 U.S.C. §§ 2000d-4) and the Americans with Disabilities Act (ADA), hereby notifies all bidders that it will affirmatively ensure that any contract entered into pursuant to this advertisement, disadvantaged business enterprises will be afforded full and fair opportunity to submit bids in response to this invitation and will not be discriminated against on the grounds of race, color, national origin in consideration for an award.

Persons that require a reasonable accommodation based on language or disability should contact ADOT’s Procurement Office by phone (602) 712-2089. Requests should be made as early as possible to ensure the State has an opportunity to address the accommodation.

Las personas que requieran asistencia (dentro de lo razonable) ya sea por el idioma o discapacidad deben ponerse en contacto con ADOT (602) 712-2089.

https://app.az.gov/ mailto:tconnell2@azdot.gov

TABLE OF CONTENTS

SECTION PAGE

Notice 1

Table of Contents 2

Scope of Work 3

Special Terms and Conditions 17

Uniform Terms and Conditions 37

EXHIBITS

1 - Title VI/Non-Discrimination Assurances Appendix A 56

2 - Title VI/Non-Discrimination Assurances Appendix E 57

3 - Quarterly Contract Usage Report 58

SCOPE OF WORK

1. Statement of Need

1.1. Pursuant to the Arizona Procurement Code, A.R.S. §41-2501 et seq., the State of Arizona Department of Transportation (Department), Motor Vehicle Division (MVD), intends to establish a term contract for a solution that provides forms and equipment for the printing of vehicle registrations with decals, vehicle registration renewal forms, court mandated letters and general correspondence.

2. Introduction and Background

2.1. The Arizona Department of Transportation Central Production Services is part of the Support

Services unit. This unit provides high-speed printer operations which includes but are not limited to the printing, sealing, insertion of USPS regular and certified mail, preparation of reports and documents including checks, licenses, registrations, notices, permits, summonses, vehicle titles and registrations and other transaction based documents for the State.

2.2. In fiscal year 2021, the operation produced over Six (6) million pages of output which consisted of pressure sealed and non-pressure sealed documents. It is important to note that the Department is receptive to innovative business practices that may result in the reduction of printing paper-based documents such as letters and other transaction-based print jobs. The legislative mandate or direction by the State could change the projected volumes. The previous output levels are not an indication or promise of said volume for the selected offeror of the proposed work.

2.3. The Contractor shall provide a two part solution consisting of the following:

2.3.1. Primary focus on providing the forms.

2.3.2. Secondary focus on providing equipment and maintenance as needed to the Department Central Production unit.

3. General Requirements

3.1. The Contractor shall provide pressure-seal vehicle registration forms with decals, blank pressure-seal stock for letters, tested contractor approved printers ensuring print adhesion and the pressure-seal equipment to process these forms at the volume described into self mailers for the State of Arizona.

4. Specific Requirements

4.1 Print Protocols - Current Environment

4.1.1 The output for the central production print environment will come from the Department’s production print system (ManagePrint), which is a Microsoft Windows-based application comprised of Commercially Off-The Shelf (COTS) software and proprietary programs written specifically for ADOT. ManagePrint processes files in batch for printing vehicle registrations, registration renewals, insurance suspension notices, correspondence, and the like. The data for these documents originates in Departments MAX host system and is transmitted to ManagePrint which composes the print job using predefined templates and business rules. Dashboard functionality in ManagePrint allows Print Users to determine the destination for the print job and monitor the status after the job has been transmitted. Additional roles-based functionality in ManagePrint includes:

4.1.1.1. Design Users (manage and test templates)

4.1.1.2. Data Users (manage processing and data for prod runs)

4.1.1.3. Administrative Users (manage system-level functionality and access)

4.2. The print jobs created are in Printer Command Language (PCL) 5 format, and transmitted to the central production print center via TCP/IP or LPR protocol over The Departments in-house network. When released by a print user, they are sent to windows print queues for transmission to printers. The print queues are defined as either TCP/IP or LPR. After sending a job to the production print environment, ManagePrint sends the following reconciliation data back to MAX:

4.2.1. Job name

4.2.2. Printer

4.2.3. Data filename

4.2.4. Number of records processed

4.2.5. Number of records received

4.2.6. Status (success/fail)

4.3. The fields are provided back in JavaScript Object Notation (JSON) format via the same network and protocols used to transmit the original print job from MAX to ManagePrint.

4.4. In the event print jobs need to be directed to third party(ies) for additional capacity or disaster recovery, the print jobs are sent from ManagePrint via Secure File Transfer Protocol (SFTP) to the third party and the same status back fields are provided back to ManagePrint.

4.5. Average print records per day are 45,000 and peak periods require capacity for up to 250,000 print records per day.

4.6. The Contractor shall utilize the ability to process JSON data files using the existing ManagePrint print manager that was developed and is supported by Taylor Communications. However, as agency systems evolve or are replaced during the term of the contract, other print streams may become part of the print jobs inventory and those jobs will also have to be printed.

ADOT COMPUTING HARDWARE

Hardware Type Processor Model

Enterprise Application

Servers x64

Azure Government VM and App

Services

Office Physical Server x64 HP ML350 or higher

Workstations /

Desktops X64 HP Business Class

Notebooks X64 HP Business Class

Printers N/A

Hewlett Packard LaserJet, Konica

Minolta, Lexmark LaserJet, Ricoh

LaserJet, Riso Ink Jet

ADOT COMMUNICATIONS

Software Purpose Manufacturer Title/ Type

Server operating system Microsoft Server 2019

Database platform Microsoft SQL Server 2017

Web Server Microsoft IIS 10

Enterprise e-mail system Microsoft Office 365 Government

Internet e-mail Microsoft Office 365 Government

Client operating system Microsoft Windows 10 Pro

Office Applications Microsoft Office 365

Standard Document

Types

Microsoft;

Adobe Office 365, Adobe Reader DC e-mail client software Microsoft Outlook 365

Browser Microsoft Google Chrome

Antivirus Microsoft Windows Defender

Reporting Services Microsoft

SQL Server Reporting Services, PowerBI

ADOT NETWORK ARCHITECTURE

Purpose Type

Physical Cabling Category 5 or better

Network

Exclusively TCP/IP Protocol(s)

Local / Campus Area

Network Architecture Ethernet 100 Mb/s or 1000 Mb/s Full Duplex

Wide Area Network

Architecture IPSec Tunnels with Palo Alto Firewalls on each end.

Available Internet

Connectivity Up/ Down: 300 Mb/s

All inbound / outbound traffic protected by Palo Alto FW.

4.7. Inventory

Description/Com Size

Paper

Wt.

Paper

Color

# of

Ink

Colors

(F/B) Bleed Perf

Est

Yly

Qty

(Mi llio

ns) App

Item Supp

By

Imaged

(F/B)

96-0356B

(Registration

Stock)

8.5 X

28#

Pressure

Seal White 1/1 No Yes 4 Reg Decals Contractor F

96-0440B

(Renewal

Invitation)

8.5 X

28#

Pressure

Seal White 1/1 No Yes 3.5

Renewal

Notice Contractor F

N14EZ (Letter)

8.5 X

28#

Pressure

Seal White 1/1 No Yes 1.5

Misc

Letters Contractor F

4.8. All stock shall be supplied by the Contractor. The Contractor shall work with the MVD Distribution

Center to store and manage all stock inventory used in the Departments Central Print Production unit, which includes adjusting the inventory levels based upon projected annual demand and actual usage with special consideration given to any additional special project needs. The

Department will provide as much advance notice as possible to the Contractor via the MVD Distribution Center Contract Manager of special projects to ensure inventory availability.

4.9. Retro Reflective Characteristics

4.9.1. The reflectivity characteristics of the issued validation decal requires that the printed reflective decals shall have the following minimum coefficients of retro reflection express as candlepower per foot candle per square foot of material (candelas per lux per square meter). Test samples shall be oriented as specified in the manufacturer’s instructions.

The coefficient of retro reflection shall be measured in accordance with (American Society of Testing Materials) ASTM E-810, “Standard Test Method for coefficient of Retro reflection Sheeting,” except that only one reading shall be taken at each position; the sample shall not be rotated 90 degrees.

4.9.1.1. Vehicle Registration Renewal Decals - White

Observation Angles .2 Degrees .5 Degrees

Entrance Angles -4 Degrees 50.0 30.0

40 Degrees 10.0 8.0

4.9.1.2. Nighttime Color – Must reflect same color at night as diffuse color seen during daylight.

4.9.1.3. Validation Sheeting Retro Reflective Characteristics

4.9.1.4. The coefficient of Retro reflection shall be measured on flat, clean Validation

Sheeting and shall have the following values at 0.2 degrees observation angle, expressed on candlepower per foot-candle per square foot (candelas per lux per square meter) of material. Measurements shall be in conducted in accordance with

ASTM E-810, “Standard Test Method for Coefficient of Retro Reflection of Retro

Reflective Sheeting”.

Entrance Angles

Integral colored sheeting

White 40/50 40/10

Yellow 30 8

Lemon-Yellow 28 11

Green 28 8

Blue 14 5

Red 10 3

Orange 6 2

Gold 30 10

Yellow-Green 24 8

Magenta 12 3

4.10. Rainfall Performance

4.10.1. The coefficient of retroreflection of the same decals, totally wet by rain, shall not be less than 90% of the above values. Wet performance measurements shall be conducted at 0.2 degrees of observation and -4 degrees entrance angle in accordance with ASTM-8 10 and using the test set-up described in Federal Highway Administration (FHWA) Specification FP-96, the latest revision of American Association of State Highway and Transportation Officials (AASHTO) M 268 and ASTM D 4956.

4.11. Adhesive and Protective Liner

4.11.1. The first pre-coated pressure-sensitive adhesive shall be from a durable, vandal resistant bond to clean, dry, properly painted or reflective sheeting license plate surfaces or decal surfaces of the same material. The protective liner of adhesive number one shall be removed by peeling without soaking in water or other solvents and shall be easily removed after storage for four hours at 150 degrees F. (66 degrees C.) under a weight of

2.5 lbs. Per square inch (0.17 kg/cm squared). The adhesive shall not exude from the decal’s edges as to cause pieces to stick together during printing handling or while packaged in shipment and distribution as long as the contractor follows the sheeting manufacturer’s recommendations for printing, handling and shipping.

4.12. Diffuse Daytime Color

4.12.1. Through instrumental color testing, the diffuse daytime color of the reflective decals shall conform to color requirements as determined spectrophotometrically in accordance with ASTM E-1164 and E-1349, utilizing either 45/0 or 0/45 degree illumination/viewing conditions as described in E-1164 and E-1349, for Retro reflective materials. Chromaticity and the Luminance factor based on Commission Internationale de l'Eclairage (CIE) tristimulus values for the 2-degree observer and Illuminant D65, shall be calculated in accordance with ASTM E308. The color of the decals, after processing or imagining, shall remain the same for daytime or nighttime viewing.

Chromaticity Coordinate

Corner Points Luminance Factor

Color X Y Y%

White 0.303 0.29 35 Min

0.365 0.354

0.34 0.378

0.278 0.316

4.13. Directional Security Marks (Custom Designed)

4.13.1. The decals shall have protective Custom Designed directional security marks which are an integral part of the sheeting, and which make unauthorized decal reproduction extremely difficult. As an example, to assume authenticity, the integral security marks used on a nominal 1 inch x 1.5 inch (2.54 cm x 3.81 cm) decal shall be separated by no more than .75 inch (1.91 cm). The security marks shall be of a design mutually agreed upon by the Department and the sheeting manufacturer.

4.14. Printed Colors

4.14.1. If so desired by the Department, in addition to meeting all of the serviceability aspects of this specification, any pre-printed color must be transparent. Adequate transparency is indicated when the printed color appears the same under both diffused and retro reflected light. The Retro reflective intensity of the printed region shall be no less than 70% of the specified minimum for integrally colored sheeting.

4.15. Clean ability

4.15.1. The sheeting processed into finished decals and applied in accordance with the recommendations of the reflective sheeting manufacturer shall be readily cleansed of normal dirt accumulation by washing with water and mild detergent. The surface shall also be sufficiently solvent-resistant to permit cleaning with solvents commonly used to clean vehicle paint finishes. Accordingly, the surface printed colorant shall show no wear after exposure to 25 cycle rubs (one rub cycle equals one rub back and forth) with a “Q-tip” type cotton swab with alcohol, 409 cleaner, window cleaners, and other common cleaners used to clean automotive paint finishes.

4.16. Toner adhesion solvent testing

4.16.1. The purpose of the test is to determine that an imprint remains and does not smear when:

4.16.1.1. A strip of Scotch brand cellophane tape Number 600 ¼” wide, applied to a properly cured area is removed in one quick motion;

4.16.1.2. The printed area is rubbed with bare finger pressure;

4.16.1.3. The printed area is rubbed with a normal pencil/typewriter eraser;

4.16.1.4. The following solvents are applied to the surface and the surface is scrubbed as described below:

4.16.1.4.1. Water

4.16.1.4.2. 409 cleaner

4.16.1.4.3. Dish detergents

4.16.1.4.4. Car wax

4.16.1.4.5. Chemicals used in car washes

4.16.1.4.6. Windex

4.16.1.4.7. Caustic Cleaner

4.16.1.4.8. Naphtha

4.16.1.4.9. Paint Thinner

4.17. Wet Abrasion Resistance

4.17.1. Finished decals shall show good wet abrasion resistance after 25 cycles of Wet Scrub testing. No appreciable wear shall be observed.

4.18. Abrasion Resistance of Organic Coatings

4.18.1. Finished decals shall show good abrasion resistance after the “Falling Sand” test. No appreciable wear shall be observed.

4.19. Performance Life and History

4.19.1. Finished decals including surface printed colorants shall remain clear and durable and shall provide a compatible surface for direct application of additional annual validation decals of the same material. Contractor must warrant the retro-reflective materials for the decals and adhesive of the decals has the durability to last five (5) years with the decal information (printing) having a two (2) year service life with solvent exposure. The warranty must be the sole responsibility of the contractor and may be met and proved through a subcontractor. If any validation decals sold to the Department under this contract fail to perform according to the specifications of this RFP, the contractor must compensate the Department for its actual losses as outlined:

4.19.1.1. Reimbursement to the Department is based on the cost of the registration/decal and administrative costs (i.e. postage for replacement, labor for distribution, handling, etc.) Due to failure to meet the warranty requirements listed in this section the compensation must be based upon agreed on cost per form and decal plus the administrative cost delineated above that will be justified by the

Department. The quantity of defective decals will be determined by the Department and their production lot will identify defective decals.

4.19.1.2. A validation decal may be determined to be defective if the sheeting material:

4.19.1.2.1. Becomes brittle, flaky, discolored, or fails to adhere to substrate and other layers of decal;

4.19.1.2.2. Will blister, lift, delaminate, fade, disintegrate or come off from extended exposure within a period of two (2) years, when subjected to water, steam, and cleaning detergents normally encountered in cleaning and washing service; or

4.19.1.2.3. Printed information can be removed, fades or smears from normal cleaning with the solvents listed in this RFP.

4.20. Form Specifications

4.20.1. Registration Forms shall comply with the following requirements:

4.20.1.1. 8 ½” X 11”

4.20.1.2. Z-fold pressure seal form with embedded 1 ½” X 1 ¼” white decal

4.20.1.3. 28# white paper

4.20.1.4. Paper must contain a laser imprint able bond

4.20.1.5. 2/2 color print

4.20.1.6. 8-digit black sequential number

4.20.1.7. 2 full parallel perforations

4.20.1.8. 5-full perpendicular perforations for the pressure seal form

4.20.1.9. Must ship on 36” X 48” pallet

4.20.1.10. Poly wrapped 250 per pack

4.20.1.11. Pack 1,000 forms per case

4.20.2. Renewal Notice Forms shall comply with the following requirements:

4.20.2.1. Non standard eccentric Z fold pressure seal

4.20.2.2. 8 ½” X 14” with ½” stub on top, bottom and sides

4.20.2.3. 28# white paper

4.20.2.4. Paper must contain a inkjet imprint able bond

4.20.2.5. color print

4.20.2.6. 2 full parallel perforations

4.20.2.7. 4 full perpendicular perforations

4.20.2.8. Return envelope portion has rewet glue that must be laser printer friendly

4.20.2.9. Must ship on 36” X 48” pallet

4.20.2.10. Poly wrapped 500 per pack

4.20.2.11. Packed 2,000 per case

4.20.3. Business Letters Forms shall comply with the following requirements:

4.20.3.1. Non standard eccentric Z fold pressure seal

4.20.3.2. 8 ½” X 14” with a ½” stub on top, bottom and sides

4.20.3.3. 28# white paper

4.20.3.4. Paper must contain an inkjet imprintable bond

4.20.3.5. 1/1 color

4.20.3.6. 2 full parallel perforations

4.20.3.7. 4 full perpendicular perforations

4.20.3.8. Must ship on 36” X 48” pallet

4.20.3.9. Poly wrapped 500 per pack

4.20.3.10. Packed 2,000 per case

4.21. Production Equipment

4.21.1. The sheeting manufacturer shall only warrant performance of their decals through preapproved production equipment. If equipment used has not been tested for print durability, media path or if additional processes diminished the overall reflectivity of the decal, the sheeting manufacturer cannot be held accountable for poor performance of finished validation decal.

4.22. The Departments Central Support Model

4.22.1. The Central Production environment is located at 1655 W Jackson, Phoenix AZ 85007. All equipment delivery and service will be at that location. The MVD Distribution Center is located at 1309 N 21st Avenue, Phoenix AZ 85009 all paper stock will be shipped to that location.

4.22.2. The contractor shall work in coordination with the MVD Distribution Manager and The

Departments Central Production Manager to manage raw materials, equipment purchase equipment service, stock orders, shipping and receiving.

4.22.3. The Distribution Manager and Central Production Manager will provide stock usage trends and needs on an ongoing basis. Orders will be placed in bulk and scheduled for delivery either in full or partial shipments, but all stock must be delivered by the end of the State of Arizona’s fiscal year from July 1 to June 30 annually.

4.22.4. The Contractor shall be responsible to work with the Distribution Manager ensuring that stock is on order, on hand and available prior to any out of stock scenarios based on the current usage provided. In the event there are supply chain issues, the Contractor must provide updates to ensure stock is ordered and received prior to any out of stock scenarios.

4.22.5. The Contractor shall provide the Department with evidence of each printer certification including a detailed description of the test methods used along with the formal test results. Contractor shall provide the Department with a current listing of certified printers on a monthly basis or upon request.

4.22.6. Existing Equipment (All with a cycle count of approximately 3 million annually):

4.22.6.1. Laser Mate LM20 pressure sealer; purchased in 2019

4.22.6.2. Laser Mate LM25 Pressure sealer; Purchased in 2021

4.22.6.3. Ricoh 8200 Toner printer; purchased in 2019

4.22.6.4. Ricoh 8310 Toner printer; purchased in 2021

4.22.7. Yearly assessments will be conducted to identify equipment needs and replacements as well as anticipated stock requirements. Any printer equipment proposed by the contractor to replace any existing ADOT printing equipment by the contractor must meet the toner retention requirements outlined in Section 4.15. Clean Ability, Section 4.16.

Toner Adhesion Solvent Testing, Section 4.17, Wet Abrasion Resistance, Section 4.18.

Abrasion Resistance of Organic Coatings and Section 4.19 Performance Life and History.

4.22.8. For all pressure seal equipment the contractor must ensure that the forms and sealing equipment are compatible prior to proposing the equipment for replacement.

4.22.9. The contractor is responsible to ensure that the overall life cycle and page per minute production volume for all equipment are at least the same as the existing equipment or greater.

4.22.10. The expected service level agreement will be a 1-hour response to a service call and a 4-hour response to technicians being on site for the equipment repair including weekends.

4.22.11. The Contractor shall be responsible for all equipment maintenance, service and parts.

4.22.12. The contractor will need to ensure that common failure parts are in stock and on site for expedited repairs. Each service call will require a detailed report provided to the Central Production Manager consisting of the failure, repairs performed and any cost associated. Any additional costs that are needed outside the contracted service agreement must be approved by the Central Production manager prior to any cost encumbrance.

4.22.13. The service level contract must include all parts, labor and consumables, including toner for the printers and sealers each year.

4.23. Technical Requirements Maintenance & Service

4.23.1. The Department requires on-going maintenance and support for its existing equipment.

This equipment includes, but is not limited to the following: (1) LaserMate LM-20 Pressure Seal Mailing System; (1) LaserMate LM-25 Pressure Seal Mailing System; (1) Ricoh 8200 Toner printer; (1) Ricoh 8310 Toner printer. The Contractor shall provide maintenance for the Department’s existing equipment, and shall keep the equipment in operating condition consistent with the Original Equipment Manufacturer (OEM) requirements. This shall include all parts, labor, travel, shipping, tools, diagnostic software, equipment and supplies for service, repair and preventative maintenance.

4.23.2. The Contractor shall perform equipment repair only after receiving a verbal authorization from an authorized representative of the Department. The Contractor shall provide the Department with a point of contact for such requests. The contact person shall be available via telephone (voice mail, cellular phone) or email. The Contractor shall provide the Department with evidence of each printer certification including a detailed description of the test methods used along with the formal test results. Contractor shall provide the Department with a current listing of certified printers on a monthly basis or upon request.

5. Contractor’s Responsibilities

5.1. The Contractor shall have sole responsibility for the complete effort specified in the contract.

Payment will be made only to the Contractor. The Contractor shall have sole responsibility for all payments due any Subcontractor.

5.2. The Contractor is responsible for the professional quality, technical accuracy and timely completion and submission of all deliverables, services or commodities required to be provided under the contract. The Contractor shall, without additional compensation, correct or revise any errors, omissions, or other deficiencies in its deliverables and other services. The approval of deliverables furnished under this contract shall not in any way relieve the Contractor of responsibility for the technical adequacy of its work. The review, approval, acceptance or payment for any of the services shall not be construed as a waiver of any rights that the State may have arising out of the Contractor’s performance of this contract.

5.3. Ownership of Material

5.3.1. All data, technical information, materials gathered, originated, developed, prepared, used or obtained in the performance of the contract, including, but not limited to, all reports, surveys, plans, charts, literature, brochures, mailings, recordings (video and/or audio), pictures, drawings, analyses, graphic representations, software computer programs and accompanying documentation and print-outs, notes and memoranda, written procedures and documents, regardless of the state of completion, which are prepared for or are a result of the services required under this contract shall be and remain the property of the State of Arizona and shall be delivered to the State of Arizona upon thirty (30) days notice by the State. With respect to software computer programs and/or source codes developed for the State, the work shall be considered “work for hire”, i.e., the State, not the Contractor or Subcontractor, shall have full and complete ownership of all software computer programs and/or source codes developed. To the extent that any of such materials may not, by operation of the law, be a work made for hire in accordance with the terms of this Contract, Contractor or Subcontractor hereby assigns to the State all right, title and interest in and to any such material, and the State shall have the right to obtain and hold in its own name and copyrights, registrations and any other proprietary rights that may be available.

5.3.2. Should the Contractor anticipate bringing pre-existing intellectual property into the project, the intellectual property must be identified in the proposal. Otherwise, the language in the first paragraph of this section prevails. If the Contractor identifies such intellectual property ("Background IP") in its proposal, then the Background IP owned by the Contractor on the date of the contract, as well as any modifications or adaptations thereto, remain the property of the Offeror. Upon contract award, the Contractor shall grant the State a non-exclusive, perpetual royalty free license to use any of the Bidder/Contractor's Background IP delivered to the State for the purposes contemplated by the contract.

5.4. Data Confidentiality

5.4.1. All financial, statistical, personnel, customer and/or technical data supplied by the State to the Contractor are confidential. The Contractor must secure all data from manipulation, sabotage, theft or breach of confidentiality. The Contractor is prohibited from releasing any financial, statistical, personnel, customer and/or technical data supplied by the State that is deemed confidential. Any use, sale, or offering of this data in any form by the Contractor, or any individual or entity in the Contractor’s charge or employ, will be considered a violation of this contract and may result in contract termination and the Contractor suspension or debarment from State contracting. In addition, such conduct may be reported to the State Attorney General for possible criminal prosecution.

5.4.2. The Contractor shall assume total financial liability incurred by the Contractor associated with any breach of confidentiality. If confidential data is given to the Contractor, the Contractor and all project staff including its Subcontractor must complete and sign confidentiality and non-disclosure agreements provided by the State and require all staff to view yearly security awareness and confidentiality training modules provided by the Contractor. It shall be the Contractor responsibility to ensure that any new staff sign the confidentiality agreement and complete the security awareness and confidentiality training modules within one month of the employees’ start date.

5.5. News Release

5.5.1. The Contractor is not permitted to issue news releases pertaining to any aspect of the services being provided under this contract without the prior written consent of the Director.

5.6. Additional Work and/or Special Products

5.6.1. The Contractor shall not begin performing any additional work or special projects without first obtaining written approval from The Departments Logistics Administrator. In the event of additional work and/or special projects, the Contractor must present a written proposal to perform the additional work to the State Contract Manager. The proposal should provide justification for the necessity of the additional work. The relationship between the additional work and the base contract work must be clearly established by the Contractor in its proposal.

5.6.2. The Contractor’s written proposal must provide a detailed description of the work to be performed broken down by task and subtask. The proposal should also contain details on the level of effort, including hours, labor categories, etc., necessary to complete the additional work.

5.6.3. No additional work and/or special project may commence without the Contract

Managers written approval. In the event the Contractor proceeds with additional work and/or special projects without the Contract Manager written approval, it shall be at the Contractor’s sole risk. The State shall be under no obligation to pay for work performed without the Contract Managers written approval.

6. Department’s Responsibilities

6.1. Work Acceptance

6.1.1. The Project Manager or Department Representative shall have final decision for all questions that may arise as to the quality and acceptability of any work performed under the contract.

SPECIAL TERMS AND CONDITIONS

1. CONTRACT TERM

The term of any resultant contract shall commence on the effective date of award and shall continue for a period of twenty-four (24) months thereafter, unless terminated, canceled or extended as otherwise provided herein.

2. CONTRACT EXTENSION

By mutual written contract amendment, any resultant contract may be extended for supplemental periods of up to a maximum of ninety-six (96) months.

3. ELIGIBLE AGENCIES

This contract shall be for the exclusive use of the Arizona Department of Transportation.

4. NON-EXCLUSIVE CONTRACT

This contract shall be for the sole convenience of the Department. The Department reserves the right to obtain like goods or services from another source when necessary. The Off-Contract Purchase Authorization and subsequent procurement shall be consistent with the Arizona Procurement Code.

5. ORDERING PROCESS

The Department shall issue a purchase order to the Contractor. Each purchase order must cite the contract number. This purchase order shall be the only document required for the Department to order and the Contractor to deliver the material and/or service.

Any attempts to represent any material and/or service not specifically awarded as being under contract is a breach of the contract and a violation of 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.

6. INVOICING REQUIREMENTS

Separate invoices are required for each delivery of service. Invoices shall be submitted on a quarterly basis using Billing Summary and Reimbursement Request form and shall include at a minimum:

● Department Location’s Name and Address

● Vendor Name, Remit to Address and Contact Information

● Contract Number

● Purchase Order Number

● Invoice Number and Date

● Date the items were shipped to the Department

● Contract Line Item Number

● Line Item Description or Item or Service

● Quantity Purchased

● Line Item Unit of Measure

● Price per Unit and Total per Unit

● Catalog or Other Discount (if applicable)

● Net Unit Price and Total per Unit (if applicable)

● Applicable taxes

● Applicable Shipping/Freight Charges

● Total Invoice Amount Due

Invoices not sent to the proper address, or not containing the necessary and required information may delay payment. A Contractor whose payments are delayed due to improper invoicing shall make no claim against the Department or the State for late or finance charges.

The Department will make every effort to process payment for the purchase of product within thirty

(30) calendar days after the Department has conducted the necessary reviews, inspections and acceptance as described herein.

The department acceptance date will be the valid date for starting the thirty (30) calendar day payment period.

Payment due dates, including discount periods, will be computed from the date of acceptance or date of correct invoice (whichever is later) to the date the Department’s warrant is mailed.

7. ESTIMATED USAGE

The Department anticipates considerable usage under this contract. The Department reserves the right to increase or decrease actual quantities ordered as circumstances may require. No guarantees are made concerning actual purchases under this contract.

8. PRICE REDUCTION

A price reduction adjustment may be offered at any time during the term of the contract and shall become effective upon notice through a written contract amendment.

9. PRICE INCREASE

The Department will review fully documented requests for price increases for any contract which will or has been in effect for twelve (12) months. The request shall be submitted no less than 60 days prior to the contract renewal date. The Contractor shall provide fully documented information which supports the price increase request. Fully documented means that the request shall present detailed information and calculations that make it clear how the claimed increase has an impact on the contract unit prices. All assumptions regarding cost factors that have an impact on the requested increase shall also be clearly identified and justified. The requested price increase must be based upon a cost increase that was clearly unpredictable at the time of the offer and can be shown to directly affect the price of the item concerned. Any price increase adjustment request prior to the time of contract extension will be a factor in the extension review process. The Department will determine whether the requested price increase or an alternate option, is in the best interest of the State.

10. SAFETY STANDARDS

Items supplied under this contract shall comply with all current applicable safety standards and regulations including the Occupational Safety and Health Standards of the State of Arizona Industrial Commission, the National Electric Code and the National Fire Protection Association Standards.

11. WARRANTY

The Contractor warrants:

1. That all services performed hereunder shall conform to the requirements of this contract and shall be performed by qualified personnel in accordance with the highest professional standards.

2. That all items furnished hereunder shall conform to the requirements of this contract and shall be free from defects in design materials and workmanship. Any defects of design, workmanship or materials shall be fully corrected by the Contractor (including parts and labor) without cost to the Department.

3. The warranty period on workmanship and materials shall be based on a minimum of twelve (12) months from the time of acceptance by the Department.

12. CURRENT PRODUCTS

All products supplied under this contract shall be in current and ongoing production; shall have been formally announced for general marketing purposes; shall be a model or type currently functioning in a user (paying customer) environment and capable of meeting or exceeding all specifications and requirements set forth in the contract.

13. PRODUCT DISCONTINUANCE

In the event that a product or model is discontinued by the manufacturer, the Department at its sole discretion may allow the Contractor to provide a substitute for the discontinued item. The Contractor shall request authorization to substitute a new product or model and provide the following:

1. A formal announcement from the manufacturer that the product or model has been discontinued.

2. Documentation from the manufacturer that names the replacement product or model.

3. Documentation that provides clear and convincing evidence that the replacement meets or exceeds all specifications required by the original solicitation.

4. Documentation that provides clear and convincing evidence that the replacement will be compatible with all the functions or uses of the discontinued product or model.

5. Documentation confirming that the price for the replacement is the same as or less than the discontinued product or model.

14. CONTRACT ADMINISTRATION

The Contractor shall contact the Procurement Officer for guidance or direction in matters of contract interpretation or questions regarding the terms, conditions or scope of the contract.

15. NOTICES

All notices, requests, demands, consents, approvals, and other communications which may or are required to be served or given hereunder (for the purposes of this provisions collectively called “Notices”), shall be in writing and shall be sent by certified United States mail, return receipt requested, or by any other method that provides evidence of receipt, addressed to the party or parties to receive such notice as follows:

a. If intended for the State, to:

Arizona Department of Transportation, Procurement Group

Phoenix, Arizona 85007-3276

b. If intended for the Contractor, to the address as identified in the Contractor’s electronic vendor profile.

Or to such other address as either party may from time to time furnish in writing to the other by notice hereunder. Any notice so mailed shall be deemed to have been given as of the date such notice is received as shown on the return receipt. Furthermore, such notice may be given by delivering personally such notice, if intended for the State, to the Arizona Department of Transportation, Procurement Officer and, if intended for the Contractor, to the person named on the Offer & Contract Award of this contract, or to such other person as either party may from time to time furnish in writing to the other by notice hereunder. Any notice so delivered shall be deemed to have been given as of the date such notice is personally delivered to the other party.

16. REVIEW OF CONTRACTOR’S WORK

Work performed by the Contractor shall be subject to periodic reviews and partial acceptance at various stages. The Department reserves the right to make such reviews and pass upon the acceptability of the Contractor’s work. Partial acceptance shall not relieve the Contractor’s obligation to correct, without charge, any errors in the work performed under this contract.

17. ACCURACY OF WORK

The Contractor shall be responsible for the accuracy of the work and shall promptly make all the necessary revisions or corrections resulting from errors and omissions on the part of the Contractor without additional compensation. Acceptance of the work by the Department shall not relieve the Contractor of the responsibility for subsequent correction of any such errors and clarification of ambiguities.

18. CANCELLATION FOR POSSESSION OF WEAPONS ON ADOT PROPERTY

This Contract may be cancelled if the Contractor or any subcontractors or others in the employ or under the supervision of the Contractor or subcontractors is found to be in possession of weapons.

Possession of weapons (firearms, explosive devices, knives or blades of more than three (3) inches, or any other instrument designed for lethal or disabling use) is prohibited on ADOT property.

Further, if the Contractor or any subcontractors or others in the employ of under the supervision of the Contractors or subcontractors, are asked by an ADOT official to leave the ADOT property, they are advised that failure to comply with such a request shall result in cancellation of the Contract and anyone who refuses, whether armed or not, is subject to prosecution under A.R.S. §13-1502, “Criminal trespass in the third degree: classification.”

19. INDEMNIFICATION

To the fullest extent permitted by law, Contractor shall defend, indemnify, and hold harmless the State of Arizona, and its departments, agencies, boards, commissions, universities, officers, officials, agents, and employees (hereinafter referred to as “Indemnitee”) from and against any and all claims, actions, liabilities, damages, losses, or expenses (including court costs, attorneys’ fees, and costs of claim processing, investigation and litigation) (hereinafter referred to as “Claims”) for bodily injury or personal injury (including death), or loss or damage to tangible or intangible property caused, or alleged to be caused, in whole or in part, by the negligent or willful acts or omissions of Contractor or any of its owners, officers, directors, agents, employees or subcontractors. This indemnity includes any claim or amount arising out of, or recovered under, the Workers’ Compensation Law or arising out of the failure of such Contractor to conform to any federal, state, or local law, statute, ordinance, rule, regulation, or court decree. It is the specific intention of the parties that the Indemnitee shall, in all instances, except for Claims arising solely from the negligent or willful acts or omissions of the Indemnitee, be indemnified by Contractor from and against any and all claims. It is agreed that Contractor will be responsible for primary loss investigation, defense, and judgment costs where this indemnification is applicable. In consideration of the award of this contract, the Contractor agrees to waive all rights of subrogation against the State of Arizona, its officers, officials, agents, and employees for losses arising from the work performed by the Contractor for the State of Arizona.

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

The Contractor shall furnish certificate(s) of insurance inclusive of the following requirements as stated within to the Department. Certificate(s) shall be received within five (5) calendar days of notification of contract award by the Procurement Officer.

20.1. Insurance Requirements

Contractor and subcontractors shall procure and maintain, until all of their obligations have been discharged, including any warranty periods under this Contract, insurance against claims for injury to persons or damage to property arising from, or in connection with, the performance of the work hereunder by the Contractor, its agents, representatives, employees or subcontractors.

The Insurance Requirements herein are minimum requirements for this Contract and in no way limit the indemnity covenants contained in this Contract. The State of Arizona in no way warrants that the minimum limits contained herein are sufficient to protect the Contractor from liabilities that arise out of the performance of the work under this Contract by the Contractor, its agents, representatives, employees or subcontractors, and the Contractor is free to purchase additional insurance.

20.2. Minimum Scope and Limits of Insurance

Contractor shall provide coverage with limits of liability not less than those stated below.

20.2.1. Commercial General Liability (CGL) – Occurrence Form

Policy shall include bodily injury, property damage, and broad form contractual liability coverage.

● General Aggregate $2,000,000

● Products – Completed Operations Aggregate $1,000,000

● Personal and Advertising Injury $1,000,000

● Damage to Rented Premises $50,000

● Each Occurrence $1,000,000

a. The policy shall be endorsed, as required by this written agreement, to include the State of Arizona, and its departments, agencies, boards, commissions, universities, officers, officials, agents, and employees as additional insureds with respect to liability arising out of the activities performed by or on behalf of the Contractor.

b. Policy shall contain a waiver of subrogation endorsement, as required by this written agreement, in favor of the State of Arizona, and its departments, agencies, boards, commissions, universities, officers, officials, agents, and employees for losses arising from work performed by or on behalf of the

Contractor.

20.2.2. Business Automobile Liability

Bodily Injury and Property Damage for any owned, hired, and/or non- owned automobiles used in the performance of this Contract.

● Combined Single Limit (CSL) $1,000,000

a. Policy shall be endorsed, as required by this written agreement, to include the State of Arizona, and its departments, agencies, boards, commissions, universities, officers, officials, agents, and employees as additional insureds with respect to liability arising out of the activities performed by, or on behalf of, the Contractor involving automobiles owned, hired and/or non-owned by the Contractor.

b. Policy shall contain a waiver of subrogation endorsement as required by this written agreement in favor of the State of Arizona, and its departments, agencies, boards, commissions, universities, officers, officials, agents, and employees for losses arising from work performed by or on behalf of the Contractor.

20.2.3. Workers’ Compensation and Employers’ Liability

● Workers’ Compensation Statutory

● Employers’ Liability o Each Accident $1,000,000 o Disease – Each Employee $1,000,000 o Disease – Policy Limit $1,000,000

a. Policy shall contain a waiver of subrogation endorsement, as required by this written agreement, in favor of the State of Arizona, and its departments, agencies, boards, commissions, universities, officers, officials, agents, and employees for losses arising from work performed by or on behalf of the Contractor.

b. This requirement shall not apply to each Contractor or subcontractor that is exempt under A.R.S. § 23-901, and when such Contractor or subcontractor executes the appropriate waiver form (Sole Proprietor or Independent Contractor).

20.2.4. Technology Errors & Omissions Insurance

● Each Claim $2,000,000

● Annual Aggregate $2,000,000

a. Such insurance shall cover any, and all errors, omissions, or negligent acts in the delivery of products, services, and/or licensed programs under this contract.

b. Coverage shall include copyright infringement, infringement of…