CTR067301_Contract_Documents.pdf

Rev. 05/2023

Procurement

STATE OF ARIZONA

ARIZONA DEPARTMENT OF TRANSPORTATION

1655 W. Jackson St., MD 100P Phoenix, AZ 85007

INVITATION FOR BID

SOLICITATION NUMBER: BPM005531

DESCRIPTION: Liquid Deicer

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.

Stacy Wiesner Procurement Officer Phone: 602.712.6939 Email: swiesner@azdot.gov

This solicitation is issued in accordance with A.R.S. §41-2533 and A.A.C. R2-7-B301 et seq., Competitive Sealed Bidding.

“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) 712-7466. 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) 712-7466.

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

TABLE OF CONTENTS

Solicitation No: BPM005531 Available online at

SECTION PAGE

Notice 1

Table of Contents 2

Specifications 3

Special Terms and Conditions 10

Uniform Terms and Conditions 19

EXHIBITS

1 - Title VI/Non-Discrimination Assurances Appendix A 36

2 - Title VI/Non-Discrimination Assurances Appendix E 37

3 - Maintenance Unit Location Map 38

4 - Unit Deicer Location Map 39

5 - Maintenance Unit Locations 44

6 - Liquid Deicer Storage Capacity 46

7 - Request for Delivery 48

8 - Vendor Performance Report 49

8 - Quarterly Usage Report 50

SPECIFICATIONS

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), has a requirement for Liquid Deicing Chemicals.

1.2. The Department intends to establish a term contract for Liquid Deicer, for ADOT winter road maintenance throughout the State of Arizona.

2. General Requirements

2.1. Work Locations/Storage Capacity

2.1.1. The delivery service area is statewide. Refer to Exhibit 3, Maintenance Unit Location

Map, Exhibit 4, Unit Deicer Location Map and Exhibit 5, Maintenance Unit Locations.

2.1.2. The liquid deicer and storage capacities are listed in Exhibit 6, Liquid Deicer Storage Capacity.

2.1.3. The Department reserves the right to add or delete maintenance and/or liquid storage locations as deemed necessary to meet the needs of the Department.

2.2. The Contractor shall furnish all necessary tools, labor, equipment, supplies and materials necessary to effectively perform the required services.

3. Specific Requirements

3.1. Material

3.1.1. The below specifications are based on the current Clear Roads formally Pacific Northwest

Snowfighters (PNS), Snow and Ice Control Chemical Products, Specifications and Test Protocols. Clear Roads strive to serve the traveling public by evaluating and establishing specifications for products used in winter maintenance that emphasize safety, environmental preservation, infrastructure protection, cost-effectiveness and performance.

3.1.2. Clear Roads has assumed the responsibilities of the Qualified Products List (QPL). The QPL is composed of products that have been tested and found to be in conformance with Clear Roads established specifications. Any material changes to a product that is listed on the QPL, either by the manufacturer or the Contractor, which in any way makes the product different from the original qualified material, shall be grounds for disqualifying the product. The new product will have to be requalified before it will be allowed.

3.1.3. All products listed on the QPL may be tested for compliance to the material that was originally submitted for qualification. The most current QPL can be viewed at the Clear Roads website. Refer to the following link: https://clearroads.org/qualified-product-list/ or by contacting the Statewide Road Weather Manager at 602.712.7012.

https://clearroads.org/qualified-product-list/

3.2. Calcium Chloride

3.2.1. This specification covers calcium chloride based chemical composition in a solid form and bagged for use as a deicer and snow melter for road maintenance purposes.

3.2.2. Calcium Chloride flakes must contain a minimum of 74%-78% calcium chloride and shall conform to chemical composition of CaC12.

3.2.3. The specifications for the chemical composition of calcium chloride is listed below:

Total Alkali Chloride (as NaCI) % 5.0 Max

Total Magnesium (as MgC12) % 0.07 Max

Other Impurities % 0.85 Max

Calcium Hydroxide % 0.15 Max

Sulfate (as SO4) % 0.15 Max

Heavy Metals (as Pb) % 0.002 Max

Calcium Carbonate (from CO2) % 0.07 Max

3.2.4. The size analysis is listed below:

16 mm and above 0%

8 mm – 16 mm 10 – 15%

0.3 – 8 mm 80 -90%

0 – 0.3 mm 2 – 4%

3.3. Corrosion Inhibited Liquid Magnesium Chloride – Chemical Product Category 1

3.3.1. The corrosion inhibited liquid magnesium chloride has the following requirements:

3.3.1.1. The product must contain no less than 25% magnesium chloride.

3.3.1.2. The product will contain the corrosion control inhibitor in quantities not less than those indicated by the Contractor. The finished deicing product, including corrosion inhibitors, must be completed accomplished at the original manufacturing plant location. Post adding of corrosion inhibitors or any other ingredients and splash mixing is unacceptable after the product has left the original manufacturing plant.

3.4. Corrosion Inhibited Liquid Calcium Chloride – Chemical Product Category 2

3.4.1. The corrosion inhibited liquid calcium chloride has the following requirements:

3.4.1.1. The product must contain no less than 25% calcium chloride.

3.4.1.2. The weight per gallon will be established according to the specific gravity and percentage of calcium chloride contained in the product as indicated by the Contractor.

3.4.1.3. The product will contain the corrosion control inhibitor in quantities not less than those indicated by the Contractor. The finished deicing product, including corrosion inhibitors, must be completely accomplished at the original manufacturing plant location. Post adding of corrosion inhibitors or any other ingredients and splash mixing is unacceptable after the product has left the original manufacturing plant.

3.5. Sodium Chloride (Salt) Brine Product Category A-1

3.5.1. This specification is for a liquid corrosion inhibitor for field addition to concentrated sodium chloride (salt) brine.

3.5.2. The finished corrosion inhibited sodium chloride shall have a minimum sodium chloride concentration of no less than 21% and shall have a corrosion percent effectiveness rrating of 30% or less.

3.5.3. This liquid corrosion inhibitory when added to concentrated sodium chloride brine will provide a finished product that is complaint to all the general provisions of the Clear Roads specifications.

3.5.4. The finished product shall provide eutectic temperature points equal to or lower than that of a standard uninhibited liquid sodium chloride brine of 23.3% concentration. The manufacturer shall provide a eutectic temperature graph and table showing both eutectic curves of the finished product and the standard uninhibited liquid sodium chloride solution of 23.3 % concentration for direct comparison.

3.5.5. The inhibitor shall be capable of being homogenously mixed with 23% to 24% concentration of sodium chloride brine and resulting in a finished product that does not separate or settle out.

3.5.6. The corrosion inhibitor product shall be flowable and have the capability to be mixed fully into the concentrated soldium chloride brine solution at a minimum temperature of 15°F.

3.5.7. The corrosion inhibitor must be capable of being stored at a minimum temperature class as delivered until time of use with no separation or settling.

3.5.7.1. Class 1: 10°F

3.5.7.2. Class 2: 0°F

3.5.8. This chemical product shall not contain greater than 1.0% (V/V) total settleable solids.

3.6. Sodium Chloride Plus Calcium Chloride Brine – Inhibitor Product Category A-2

3.6.1. This specification is for a field added liquid corrosion inhibitor to produce corrosion inhibited sodium chloride/calcium chloride brine.

3.6.2. The finished corrosion inhibited product shall have a minimum concentration of 15% sodium chloride and a minimum concentration of 2% calcium chloride. The product shall have a minimum of 10% inhibitor added to the product. The finished product shall have a corrosion percent effectiveness rating of 30% or less as tested by Clear Roads

3.6.3. The finished product shall provide eutectic temperature points lower than that of a standard uninhibited liquid sodium chloride brine of 23.3% concentration. The manufacturer shall provide a eutectic temperature graph and table showing both eutectic solution of 23.3# concentration of direct comparison.

3.6.4. The process by which this is achieved is classified into the following types:

3.6.4.1. Type I – The corrosion inhibitor contains sufficient calcium chloride that additional calcium chloride is not required to be added to the salt brine.

3.6.4.2. Type II – The corrosion inhibitor, salt brine, and calcium chloride are added separately.

3.6.5. The inhibitor shall be capable of being homogenously mixed with the 23% to 24%

3.6.6. The corrosion inhibitor product shall be flowable and have the capability to be mixed fully into the concentrated brine solution at a minimum temperature of 15°F.

3.6.7. The corrosion inhibitor must be capable of being stored at a minimum temperature class

3.6.7.1. Class 1: 10°F

3.6.7.2. Class 2: 0°F

3.6.8. This chemical product shall not contain greater than 1.0% (V/V) total settleable solids.

3.7. Corrosion Inhibitor for Sodium Chloride Brine (Min. 15% NaCI) – Inhibitor Product Category A-3

3.7.1. This specification is for a field added liquid corrosion inhibitor to produce corrosion inhibited sodium chloride brine, which improves melting capacity of the blended product over that of standard uninhibited liquid sodium chloride brine of 23.3.% concentration.

3.7.2. The finished corrosion inhibited sodium chloride shall have a minimum sodium chloride concentration of no less than 15% and shall have a corrosion percent effectiveness rating of 30% or less.

3.7.3. The liquid corrosion inhibitory when added to concentrated sodium chloride brine will provide a finished product that is complaint to all the general provisions of the Clear Roads

3.7.4. The finished product shall provide eutectic temperature points lower than that of a standard uninhibited liquid sodium chloride brine of 23.3% concentration. The manufacturer shall provide a eutectic temperature graph and table showing both eutectic solution of 23.3# concentration of direct comparison/

3.7.5. The inhibitor shall be capable of being homogenously mixed with 23% to 24%

3.7.6. The corrosion inhibitor product shall have a low viscosity and have the capability to be mixed fully into the concentrated sodium chloride brine solution at a minimum temperature of 15°F.

3.7.7. The corrosion inhibitor must be capable of being stored at a minimum temperature class

3.7.7.1. Class 2: 0°F

3.8. Sampling and Testing

3.8.1. Sampling and testing the materials and mixture for quality control purposes shall be the

Contractor’s responsibility. The Contract shall perform sufficient testing to assure that the Liquid Deicer/Calcium Chloride produced meets all specified requirements. The Department reserves the right to request a sample of materials and mixtures to be tested when necessary to determine that they reasonably conform to the requirements specified herein.

3.9. Delivery/Shipping

3.9.1. A Purchase Order must be received by the Contractor prior to the delivery of the product and shall contact the maintenance unit identified on the purchase order 24 hours prior to delivery.

3.9.2. Delivery of the product must be completed within ten (10) calendar days after receipt of purchase order, unless otherwise directed by the requesting location.

3.9.3. For Bulk Liquid delivery, the Contractor will be responsible for all necessary equipment to transfer liquid chemical products to the Department’s storage tanks. Prior to unloading, the Contractor shall visually inspect the discharge valve for the presence of any foreign materials.

3.9.4. The Contractor is responsible for all necessary equipment required for the unloading of all products delivered. The Contractor must use anti-foaming agent when needed to control foaming during loading, unloading and agitation of liquid chemical products. This will be done at no additional charge to the Department.

3.9.5. Delivery of all products under this contract shall be made from the nearest plant location to the specified maintenance unit location, refer to Exhibit 3, Maintenance Location Map, Exhibit 4, Unit Deicer Location Map and Exhibit 5, Maintenance Unit Locations.

3.9.6. The Contractor shall notify the Department, in writing, of any changes to their business that may affect the delivery and supply of material(s) requested in this contract. This includes any opening, addition, acquisition, joint venture, merger, dissolution or closure of the Contractor’s listed Plant Locations, Attachment 6.

3.9.7. The Contractor’s plant location(s) shall include any neighboring states (if applicable) and counties wherever is closest to the State of Arizona districts or unit locations referenced in Maintenance Unit Locations Map, Exhibit 3, and Unit Deicer Locations Map, Exhibit 4.

The Contractor shall immediately notify the Procurement Officer and the Department of any changes to the Contractor’s plant location, identified on the Plant Location, Attachment 6. It is encouraged that the Contractor provides an alternate plant location that may substitute the fall in supply. The Plant Locations attachment shall remain current at all times and any revisions shall be submitted to the Procurement Officer immediately.

The Department will review all documentation and incorporate the changes into the contract in writing in the best interest of the Department.

3.9.8. Orders delivered in split deliveries will NOT constitute authorization from the Department for short load fees. Short load fees may not be applied by the Contractor for split order deliveries.

3.9.9. The Contractor shall ensure all products be protected from the weather elements and secured in a manner to prevent it from dislodging during transit.

3.9.10. A Certificate of Compliance with each shipment to certify that all products delivered meet Clear Roads Qualified Product List and specifications herein.

3.9.11. A Safety Data Sheet (SDS) shall be provided with each shipment.

3.9.12. All delivery tickets must be signed by the Department for payment to be processed. Any deliveries that are done by the Contractor without proper authorization will not be eligible for payment.

3.9.13. The Department shall not compensate drivers for lodging expenses if required to stay overnight to complete the delivery.

3.9.14. In lieu of delivery will be at the Department’s discretion. Plant pick up shall be billed at the contracted material price. No other charges shall be billed to the Department.

4. Contractor’s Responsibilities

4.3. The Contractor shall comply with all applicable laws and regulations governing safety, health and sanitation. Attention is directed to Federal, State and local laws, rule and regulations concerning construction safety and health standards.

4.4. The Contractor shall notify the Department immediately of any incidents or conditions relative to public health or safety.

4.5. The Contractor is responsible for all expenses of any product that is delivered, which is found to be contaminated and is a cause of environmental concerns.

5. Department’s Responsibilities

5.3. The Department shall address all questions which may arise as to the quality and acceptability of any work performed under this contract.

5.4. The Department may reject the shipment if problems are noted and immediately halt the unloading process. If this occurs, the Department will not be responsible for the rejected product and associated delivery cost of the product.

SPECIAL TERMS AND CONDITIONS

1. Contract Term

The term of any resultant contract shall commence on the effective day of award and shall continue for a period of twelve months (12) thereafter, unless terminated, cancelled 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 forty-eight (48) 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 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. Shipping Terms

Delivery shall be F.O.B. Destination to the location designated herein. Contractor shall retain title and control of all goods until they are delivered. All risk of transportation and related charges shall be the responsibility.

7. Delivery

Deliveries shall be completed in accordance with the requirements of the contract.

Delivery of the product does not constitute acceptance.

8. Inspection and Acceptance

Each item delivered shall be subject to a complete inspection by the Department within 10 days after delivery. Inspection criteria shall include, but not be limited to, conformity to the specifications, workmanship, quality and materials.

If the delivered product is not accepted and returned for corrective action, an additional fifteen (15) calendar days shall be allowed for inspection of the corrected or replacement product.

The Contractor shall be responsible for the transport of the material to and from the Department for the correction of items or workmanship not in compliance with the specifications.

Product returned for corrective action may delay payment. Invoices will be processed for payment only after the product is accepted.

9. Invoicing and Payment

Separate invoices are required for each shipment of product or delivery of service 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 products 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.

10. 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.

11. Price Reduction

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

12. 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.

13. 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.

14. 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.

15. 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 listed on the Pacific Northwest Snowfighters (PNS) Association’s Qualified Products List (QPL) and 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.

16. 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 replacements 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.

17. Contract Administration

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

18. 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 1655 W. Jackson Street, MD 100P

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 the 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.

19. Cancellation for Possession of Weapons on ADOT Property

This contract may be cancelled if 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 device, knife or blade of more than three 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 or 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.”

20. 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 lossess arising from the work performed by the Contractor for the State of Arizona.

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

21. Insurance Requirements

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

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.

A. Minimum Scope and Limits of Insurance

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

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.

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 $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.

3. Workers’ Compensation and Employers’ Liability

Workers’ Compensation and Employers’ Liability Statutory

Employers’ Liability Each Accident $1,000,000 Disease – Each Employee $1,000,000 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).

B. Additional Insurance Requirements

The policies shall include, or be endorsed to include, as required by this written agreement, the following provisions:

a. The Contractor’s policies, as applicable, shall stipulate that the insurance afforded the

Contractor shall be primary and that any insurance carried by the Department, its agents, officials, employees or the State of Arizona shall be excess and not contributory insurance, as provided by A.R.S. § 41-621 (E).

b. Insurance provided by the Contractor shall not limit the Contractor’s liability assumed under the indemnification provisions of this Contract.

C. Notice of Cancellation

Applicable to all insurance policies required within the Insurance Requirements of this Contract, Contractor’s insurance shall not be permitted to expire, be suspended, be canceled, or be materially changed for any reason without thirty (30) days prior written notice to the State of Arizona. Within two (2) business days of receipt, Contractor must provide notice to the State of Arizona if they receive notice of a policy that has been or will be suspended, canceled, materially changed for any reason, has expired, or will be expiring. Such notice shall be sent directly to the Department and shall be mailed, emailed, hand delivered or sent by facsimile transmission to Arizona Department of Transportation, Procurement Group, 1655 W. Jackson Street, Phoenix, Arizona 85007-3276.

D. Acceptability of Insurers

Contractor’s insurance shall be placed with companies licensed in the State of Arizona or hold approved non-admitted status on the Arizona Department of Insurance List of Qualified Unauthorized Insurers. Insurers shall have an “A.M. Best” rating of not less than A- VII. The State of Arizona in no way warrants that the above-required minimum insurer rating is sufficient to protect the Contractor from potential insurer insolvency.

E. Verification of Coverage

Contractor shall furnish the State of Arizona with certificates of insurance (valid ACORD form or equivalent approved by the State of Arizona) evidencing that Contractor has the insurance as required by this Contract. An authorized representative of the insurer shall sign the certificates.

1. All such certificates of insurance and policy endorsements must be received by the State before work commences. The State’s receipt of any certificates of insurance of policy endorsements that do not comply with this written agreement shall not waive or otherwise affect the requirements of this agreement.

2. Each insurance policy required by this Contract must be in effect at, or prior to, commencement of work under this Contract. Failure to maintain the insurance policies as required by this Contract, or to provide evidence of renewal, is a material breach of contract.

3. All certificates required by this contract shall be sent directly to the Department. The certificate shall state that the insurance applies to any and all work performed for or on behalf of the State of Arizona/ADOT. The State of Arizona reserves the right to require complete copies of all insurance policies required by this contract at any time.

F. Subcontractors

Contractor’s certificate(s) shall include all subcontractors as insureds under its policies or Contractor shall be responsible for ensuring and/or verifying that all subcontractors have valid and collectable insurance as evidenced by the certificates of insurance and endorsements for each subcontractor.

All coverages for subcontractors shall be subject to the minimum Insurance Requirements identified above. The Department reserves the right to require, at any time throughout the life of this contract, proof from the Contractor that its subcontractors have the required coverage.

G. Approval and Modifications

The Contracting Agency, in consultation with State Risk, reserves the right to review or make modifications to the insurance limits, required coverages, or endorsements throughout the life of this contract, as deemed necessary. Such action will not require a formal Contract amendment buy may be made by administrative action.

H. Exceptions

In the event the Contractor or subcontractor(s) is/are a public entity, then the Insurance Requirements shall not apply. Such public entity shall provide a certificate of self-insurance. If the Contractor or subcontractor(s) is/are a State of Arizona agency, board, commission, or university, none of the above shall apply.

22. Usage Reports

The Contractor shall furnish the Department a quarterly report showing purchasing activity under this Contract. This usage report shall be provided in a form substantially equivalent to Exhibit 9. Usage reports shall be submitted to the Procurement Officer no later than 30 days after the end of each quarter.

Usage report quarters shall be defined as follows:

January through March – Report due April 30

April through June – Report due July 30

July through September – Report due October 30

October through December – Report due January 30

23. Licenses, Permits, Certifications

Contractor, at their expense, shall maintain in current status without any violations, complaints, or suspensions during the term of this contract all Federal, State, and Local licenses, permits and certifications required for the operation of a business conducted by the Contractor.

24. Post Award Meeting

At the discretion of the Department, the Contractor, at their expense, shall attend and participate in post award meetings as schedule by the Procurement Officer.

UNIFORM TERMS AND CONDITIONS

1. Definition of Terms. As used in this Solicitation and any resulting Contract, the terms listed below are defined as follows:

1.1. “Attachment” means any item the Solicitation which requires the Offeror to submit as part of the Offer.

1.2. “Contract” means the combination of the Solicitation, including the Instructions to

Offerors, the Uniform and Special Terms and Conditions, and the Specifications and

Statement or Scope of Work; the Offer and any Best and Final Offers; and any

Solicitation Amendments or Contract Amendments.

1.3. "Contract Amendment" means a written document signed by the Procurement

Officer that is issued for the purpose of making changes in the Contract.

1.4. “Contractor” means any person who has a Contract with the State.

1.5. “Data” means recorded information, regardless of form or the media on which it may be recorded. The term may include technical data and computer software. The term does not include information incidental to contract administration, such as financial, administrative, cost or pricing, or management information.

1.6. “Days” means calendar days unless otherwise specified.

1.7. “Exhibit” means any item labeled as an Exhibit in the Solicitation or placed in the

Exhibits section of the Solicitation generally containing maps, schematics, examples of reports, or other documents that will be used to perform the requirements of the

Scope of Work after contract award.

1.8. “Gratuity” means a payment, loan, subscription, advance, deposit of money, services, or anything of more than nominal value, present or promised, unless consideration of substantially equal or greater value is received.

1.9. “Materials” means all property, including equipment, supplies, printing, insurance and leases of property but does not include land, a permanent interest in land or real property or leasing space.

1.10. “Procurement Officer” means the person, or his or her designee, duly authorized by the State to enter into and administer Contracts and make written determinations with respect to the Contract.

1.11. “Services” means the furnishing of labor, time or effort by a Contractor or

Subcontractor which does not involve the delivery of a specific end product other than required reports and performance, but does not include employment agreements or collective bargaining agreements.

1.12. “State” means any department, commission, council, board, bureau, committee, institution, agency, government corporation or other establishment or official of the executive branch or corporation commission of the State of Arizona that executes the

Contract.

1.13. “State Fiscal Year” means the period beginning with July 1 and ending June 30.

1.14. “Subcontract” means any Contract, express or implied, between the Contractor and another party or between a Subcontractor and another party delegating or assigning, in whole or in part, the making or furnishing of any Materials or any Services required for the performance of the Contract.

1.15. “Subcontractor” means a person who contracts to perform work or render Services to a Contractor or to another Subcontractor as a part of a Contract with the State.

2. Contract Interpretation

2.1. Arizona Law. The Arizona law applies to this Contract including, where applicable, the Uniform Commercial Code as adopted by the State of Arizona and the Arizona

Procurement Code, Arizona Revised Statutes (A.R.S.) Title 41, Chapter 23, and its implementing rules, Arizona Administrative Code (A.A.C.) Title 2, Chapter 7.

2.2. Implied Contract Terms. Each provision of law and any terms required by law to be in this Contract are a part of this Contract as if fully stated in it.

2.3. Contract Order of Precedence. In the event of a conflict in the provisions of the

Contract, as accepted by the State and as they may be amended, the following shall prevail in the order set forth below:

2.3.1. Special Terms and Conditions;

2.3.2. Uniform Terms and Conditions;

2.3.3. Statement or Scope of Work;

2.3.4. Specifications;

2.3.5. Attachments;

2.3.6. Exhibits; then

2.3.7. Any other documents referenced or included in the Solicitation including, but not limited to, any Bid or Offer documents provided by the Contractor that do not fall into one of the above categories.

2.4. Relationship of Parties. The Contractor under this Contract is an independent

Contractor. Neither party to this Contract shall be deemed to be the employee or agent of the other party to the Contract.

2.5. Severability. The provisions of this Contract are severable. Any term or condition deemed illegal or invalid shall not affect any other term or condition of the Contract.

2.6. No Parol Evidence. This Contract is intended by the parties as a final and complete expression of their agreement. No course of prior dealings between the parties and no usage of the trade shall supplement or explain any terms used in this document and no other understanding either oral or in writing shall be binding.

2.7. No Waiver. Either party’s failure to insist on strict performance of any term or condition of the Contract shall not be deemed a waiver of that term or condition even if the party accepting or acquiescing in the nonconforming performance knows of the nature of the performance and fails to object to it.

3. Contract Administration and Operation

3.1. Records. Under A.R.S. § 35-214 and § 35-215, the Contractor shall retain and shall contractually require each Subcontractor to retain any and all Data and other

“records” relating to the acquisition and performance of the Contract for a period of five (5) years after the completion of the Contract. All records shall be subject to inspection and audit by the State at reasonable times. Upon request, the Contractor shall produce a legible copy of any or all such records.

3.2. Non-Discrimination. The Contractor shall comply with State Executive Orders No.

2023-09, 2009-09, and any and all other applicable Federal and State laws, rules and regulations, including the Americans with Disabilities Act. Contractor shall include these provisions in contracts with Subcontractors when required by Federal or State

Law.

3.3. Audit. Pursuant to A.R.S. § 35-214, at any time during the term of this Contract and five (5) years thereafter, the Contractor’s or any Subcontractor’s books and records shall be subject to audit by the State and, where applicable, the Federal Government, to the extent that the books and records relate to the performance of the Contract or Subcontract.

3.4. Facilities Inspection and Materials Testing. The Contractor agrees to permit access to its facilities, Subcontractor facilities, and the Contractor’s processes or services, at reasonable times for inspection of the facilities or Materials covered under this

Contract as required under A.R.S. § 41-2547. The State shall also have the right to test, at its own cost, the Materials to be supplied under this Contract. Neither inspection of the Contractor’s facilities nor Materials testing shall constitute final acceptance of the Materials or Services. If the State determines non-compliance of the Materials, the Contractor shall be responsible for the payment of all costs incurred by the State for testing and inspection.

3.5. Notices. Notices to the Contractor required by this Contract shall be made by the

State to the person indicated on the Offer and Acceptance form submitted by the

Contractor unless otherwise stated in the Contract. Notices to the State required by the Contract shall be made by the Contractor to the Solicitation Contact Person indicated on the Solicitation, stated in the Contract, or listed on the State’s eProcurement system. An authorized Procurement Officer and an authorized

Contractor representative may change their respective person to whom notice shall be given by written notice to the other and an amendment to the Contract shall not be necessary.

3.6. Advertising, Publishing and Promotion of Contract. The Contractor shall not use, advertise or promote information for commercial benefit concerning this Contract without the prior written approval of the Procurement Officer.

3.7. Continuous Improvement. Contractor shall recommend continuous improvements on an on-going basis in relation to any Materials and Services offered under the

Contract, with a view to reducing State costs and improving the quality and efficiency of the provision of Materials or Services. State may require Contractor to engage in continuous improvements throughout the term of the Contract.

3.8. Other Contractors. State may undertake on its own or award other contracts to the same or other suppliers for additional or related work. In such cases, the Contractor shall cooperate fully with State employees and such other suppliers and carefully coordinate, fit, connect, accommodate, adjust, or sequence its work to the related work by others. Where the Contract requires handing-off Contractor’s work to others, Contractor shall cooperate as State instructs regarding the necessary transfer of its work product, Materials, Services, or records to State or the other suppliers.

Contractor shall not commit or permit any act that interferes with the State’s or other suppliers’ performance of their work, provided that, State shall enforce the foregoing section equitably among all its suppliers so as not impose an unreasonable burden on any one of them.

3.9. Ownership of Intellectual Property

3.9.1. Rights In Work Product. All intellectual property originated or prepared by

Contractor pursuant to the Contract, including but not limited to, inventions, discoveries, intellectual copyrights, trademarks, trade names, trade secrets, technical communications, records reports, computer programs and other documentation or improvements thereto, including

Contractor’s administrative communications and records relating to the

Contract, are considered work product and Contractor’s property, provided that, State has Government Purpose Rights to that work product as and when it was delivered to State.

3.9.2. “Government Purpose Rights” are:

3.9.2.1. the unlimited, perpetual, irrevocable, royalty free, non-exclusive, worldwide right to use, modify, reproduce, release, perform, display, sublicense, disclose and create derivatives from that work product without restriction for any activity in which State is a party;

3.9.2.2. the right to release or disclose that work product to third parties for any State government purpose; and

3.9.2.3. the right to authorize those to whom it rightfully releases or discloses that work product to use, modify, release, create derivative works from the work product for any State government purpose; such recipients being understood to include the federal government, the governments of other states, and various local governments.

3.9.3. “Government Purpose Rights” do not include any right to use, modify, reproduce, perform, release, display, create derivative works from or disclose that work product for any commercial purpose, or to authorize others to do so.

3.9.4. Joint Developments. The Contractor and State may each use equally any ideas, concepts, know-how, or techniques developed jointly during the course of the Contract, and may do so at their respective discretion, without obligation of notice or accounting to the other party.

3.9.5. Pre-existing Material. All pre-existing software and other Materials developed or otherwise obtained by or for…