CTR073891_Contract_Documents.pdf

OO

Procurement

ATTACHMENT ONE

OFFER AND ACCEPTANCE

Solicitation No: BPM006131 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

3M Company

3M Center, Bldg 223-3S-33

St. Paul MN 55144

Maria Paraschou 06/19/2024

Senior Proposal & Contract Manager mparaschou@mmm.com

3msupport.tsdcsr.us@mmm.com

651-650-1420; 800-553-1380 (customer service)

Docusign Envelope ID: 9E53908C-EFBA-4D27-ACC9-3CA3F93ABBC3

9/24/2024

24September

Docusign Envelope ID: 2FEBF53B-B924-452D-A6B1-9F2BB4B39DB2

CTR073891

https://app.az.gov/

Rev. 05/2023

STATE OF ARIZONA

ARIZONA DEPARTMENT OF TRANSPORTATION

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

REQUEST FOR PROPOSAL

SOLICITATION NUMBER: BPM006131

DESCRIPTION: Preformed Pavement Marking Tape

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.

Gary Henry Senior Procurement Specialist Phone: (602)712-7304 Email: Ghenry@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) 712-7466.

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.

mailto:Ghenry@azdot.gov

TABLE OF CONTENTS

SECTION PAGE

Notice 1

Table of Contents 2

Scope of Work 3

Special Terms and Conditions 12

Uniform Terms and Conditions 21

EXHIBITS

1 - Title VI/Non-Discrimination Assurances Appendix A 34

2 - Title VI/Non-Discrimination Assurances Appendix E 35

3 - Usage Report 36

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), has a requirement for Type I Preformed Pavement Marking Tape, Prefabricated, Reflective, Stripes and Legends.

2. Introduction and Background

2.1. The supplied materials will be used by Department crews in the Northern, Central and Southern regions for the maintenance and installation of pavement markings. Long line and Transverse markings are those normally placed across and/or in traffic lanes, such as crosswalk lines, stop lines, turn arrow symbols, word legends, skips and lane lines.

2.2. The installation of pavement markings shall be designed to be accomplished with a one (1) or two (2) person crew, little if any, special equipment and minimal or no surface preparation. The installation requirements shall be straightforward and simple. The pavement markings shall be designed to be installed on clean dry pavement.

3. General Requirements

3.1. The pavement marking material supplied shall account for all applicable Federal, State and local rules and regulations.

3.2. The Type I preformed marking materials, hereafter referred to pavement markings are a pavement marking system in which symbols, legends, skips and lines are supplied in their final form and applied by means of adhesive fusion. The pavement markings are to fully compatible to the applicable requirements of the Manual of Uniform Traffic Control Devices (MUTCD) Part 3, Markings and any other related Federal Highway Administration (FHWA) documents. Refer to the following links:

• MUTCD Standards: https://mutcd.fhwa.dot.gov

• FHWA: https://www.fhwa.dot.gov/

3.3. The pavement markings shall conform to all applicable requirements of the American Association of State Highway and Transportation Officials (AASHTO) Standard Specifications relate to those relevant differences that the pavement markings need to achieve its preformed state and its application and performance characteristics herein described and required. Refer to the following link:

http://www.aashto.org/

3.4. The requirements for this material differ from that specified in the Department’s Standard Specifications for Road and Bridge Construction – Section 705 Preformed Pavement Marking. The formulation differences are intended to allow the Department the ability to better assess cost and performance to help ensure resources are being properly allocated. Refer to the following link:

https://azdot.gov/sites/default/files/media/2021/04/2021_Standard_Specifications_for_Road_and_Bridge_ Construction_Tablet.pdf

3.5. The pavement marking products supplied shall be fully compatible and suitable for all pavement surfaces to be placed on, including but not limited to, newly laid asphaltic pavement surfaces, micro-sealed surfaces, chip-sealed surfaces, Portland cement concrete surfaces and surfaces that have been previously striped with paint, thermoplastic or epoxy pavement marking materials.

https://app.az.gov/ https://mutcd.fhwa.dot.gov/ https://www.fhwa.dot.gov/ http://www.aashto.org/ https://azdot.gov/sites/default/files/media/2021/04/2021_Standard_Specifications_for_Road_and_Bridge_Construction_Tablet.pdf https://azdot.gov/sites/default/files/media/2021/04/2021_Standard_Specifications_for_Road_and_Bridge_Construction_Tablet.pdf

3.6. The pavement markings shall be suitable as a re-stripe material. The material shall have a resealing characteristic that allows it to fuse to previously applied hydrocarbon or alkyd thermoplastics.

3.7. Upon application, the material shall be immediately ready for traffic. Additionally, after being applied to the pavement surface the material shall maintain all of its performance characteristics that make it a useful and durable pavement marking symbol, legend, skip or line (i.e. shape, color, skid resistance, retroreflective appearance).

3.8. The pavement markings shall be specifically formulated to withstand Arizona’s desert to alpine roadway environment while maintaining its needed shape, color, skid resistance, presences and retroreflective appearance. The materials shall last, at a minimum, per the manufacturer’s warranty.

This requirement assumes that the pavement markings are properly installed and the underlying pavement stays in place and does not fail.

3.9. Unless otherwise stated, all symbols and legends shall be designed for single lane applications. The symbol and legend dimensions indicated on the line items are nominal and may vary within a reasonable number. A tolerance in the range of between +/- 2” to 4” would appear to account for most inconsistencies within the standards. The length dimensions (the height of the legend or symbol) shall be regarded as the most important dimension. The stroke width, radius, widths and spacing/font/style (as applicable) can vary; however, they need to be consistent with the current adopted Federal and State standards The Department will either use the current adopted edition of the MUTCD, related Federal documents and/or update its own version as shown in the Traffic Engineering Group’s Signing & Marking Standard Drawings. Refer to the following link: https://azdot.gov/business/engineering-and-construction/traffic/signing-and-marking-standard-sms-drawings

3.10. The pavement markings shall not break into pieces under normal handling and installation practices.

The material supplied shall be easy to use and forgiving in its ability to achieve adequate or better performance during installation and as a pavement marking or adhesive. A material, which results in reoccurring field problems, excessive breakage and/or an increase in installation time, does not meet this requirement.

3.11. The standard color for symbols and legends shall be white, unless otherwise noted (i.e. handicap symbol with blue background). The standard colors for lines are yellow and white. Other colors can be offered if available. The pigments selected shall conform to the applicable federal requirements for highway colors. Refer to the following link: https://mutcd.fhwa.dot.gov

3.12. The straight lines are to come in the widths indicated in rolls. The rolls shall be 30 yard long. All lines shall be supplied at or slightly wider (up to a 1/4 inch) than the widths and lengths indicated.

3.13. Satisfactory Performance

3.13.1. All pavement marking materials, when applied per the manufacturer’s recommendation shall be considered as providing satisfactory performance life if they do not deteriorate due to natural causes and normal wear that is directly attributable to the fault of the preformed tape formulation within the specified warranty time.

3.14. Unsatisfactory Performance – conditions include, but not limited to, the display of the following (as applicable to the product’s specified function) https://app.az.gov/ https://azdot.gov/business/engineering-and-construction/traffic/signing-and-marking-standard-sms-drawings https://azdot.gov/business/engineering-and-construction/traffic/signing-and-marking-standard-sms-drawings https://mutcd.fhwa.dot.gov/

3.14.1. Cracks or breaks on any portion of the applied material that cause it to become unsightly as viewed from a vehicle. Cracks or breaks caused by movement in the surface underneath the applied material are exempt.

3.14.2. Any shrinkage that would cause the markings to become unsightly. Any shrinkage caused by a new pavement surface is exempt. The Contractor shall provide recommendations regarding how pavement markings should be applied on new pavement surfaces (slurry seals, chip seals, flushes, AR-ACFC, etc.)

3.14.3. Significant discoloration of the specified color. For example, if the yellow begins to appear white or white begins to appear gray, yellowish or brownish. Discoloration due to road oil tracking and dirt build up is exempt. However, the pavement markings shall be able to regain much of its initial color when subject to rain or some other mode of natural or manual cleaning.

3.14.4. A loss of the materials ability to cover the underlying surface and still maintain an adequate appearance as a pavement marking. Physical damage caused by gravel, other road debris, snow plows or road maintenance are exempt.

3.14.5. Cracking, crazing, blistering, ripping, flaking or chipping that can be easily observed from a vehicle.

3.14.6. Loss of retroreflectivity as specified under section 705-2.01 and 705-2.05 of the 705 Preformed Pavement Marking stored specifications. Refer to the following link:

• ADOT’s Standard Specifications for Road and Bridge Construction, and stored specifications:

https://azdot.gov/business/contracts-and-specifications/specifications-pay-items-list

4. Specific Requirements

4.1. Preformed Pavement Markings – Type I (Permanent)

4.1.1. The pavement markings shall be a general purpose high durability retroreflective, pliant, polymer film form preformed long line and short line striping, arrows, symbols, and legends to be used for final permanent pavement markings. The pavement markings shall be capable of performing as specified herein when subjected to high traffic volumes and severe wear conditions such as repeated shear action from crossover or encroachment on edge and channelization lines, starting,

4.1.2. The pavement markings material shall consist of a homogeneous, extruded, prefabricated white or yellow film of specified thickness and width that shall be capable of being affixed to Portland cement concrete or non-bleeding bituminous pavements per the manufacturer’s requirements, either on the pavement surface or, when specified on the plans, inlaid into a cut-out groove. The preformed plastic film shall be weather resistant and through normal traffic wear shall show no appreciable fading, lifting, loss of skid resistance, or shrinkage or significant tearing, roll back, or other signs of poor adhesion throughout the useful life of the marking.

https://azdot.gov/business/contracts-and-specifications/specifications-pay-items-list

4.1.3. When applied, the plastic film without adhesive shall be a minimum 0.060 inch thick. The plastic film as supplied shall be of good appearance, free of cracks and discolorations, and the edges shall be clean cut and well defined. The plastic film shall be supplied complete with a precoated, factory applied pressure sensitive backing with a protective release paper, or it may be furnished with separate adhesive as recommended by the manufacture. A surface preparation primer shall also be applied if recommended by the manufacture. Whether the adhesive is precoated or supplied separately, the adhesive shall be such as to allow the plastic film to be repositioned on the pavement surface to which it is applied before permanently fixing it in its final position with a downward pressure.

4.2. Physical Requirements: Preformed Pavement Marking Type I

4.2.1. Color: The pigments shall be selected and blended to provide a white or yellow marking film which conforms to standard highway colors, when tested according to American Society of Testing and Materials (ASTM) D 6628, throughout the expected life of the film. Refer to the following link: https://www.astm.org

4.2.2. Bend Test: The plastic film shall be sufficiently flexible so that at a temperature of 78 to 82 degrees Fahrenheit (F) an unmounted piece of material (without adhesive and paper backing), three by six inches in size, may be bent over a one-inch mandrel until the end faces are parallel and one inch apart without showing any fracture lines in the uppermost surface.

4.2.3. Tensile Strength: The plastic film (without adhesive or paper backing) shall have a minimum tensile strength of 40 pounds per square inch when a specimen six inches long by one inch wide is tested in accordance with the requirements of ASTM D 638. The rate of pull of the test shall be 0.25 of an inch per minute. The test shall be conducted at a temperature between 70 and 80 degrees F. The elongation shall be no greater than 75 percent.

4.2.4. Plastic Pull Test: A six inch long by one inch wide section of the plastic film (without adhesive and paper backing) shall support a dead load weight of four pounds for not less than five minutes at a temperature between 70 and 80 degrees F.

4.2.5. Abrasion Resistance: The plastic film shall have a maximum loss in weight of 0.25 grams in 500 revolutions when abraded according to ASTM D 4060.

4.2.6. Skid Resistance: The surface of the material shall provide a minimum resistance value of 45 BPN when tested according to ASTM E 303.

4.2.7. Retroreflectance: All white and yellow pavement marking materials shall have the following minimum retroreflectance values when measured by the Department, using an LTL-X Delta Retrometer or similar device, within 30 days after application to the roadway surface.

Table 1 Long Line Markings Retroreflective (millicandelas/m²/lux)

White 500 Yellow 300 https://www.astm.org/

Table 2

Arrows, Symbols, Legends, Short Lines Retroreflectance (millicandelas/m²/lux) White 350 Yellow 200

4.2.8. For sections determined to be deficient in retroreflectivity, the pavement markings shall be removed in a manner approved by the Engineer, and new markings shall be reapplied in accordance with the manufacturer’s recommendations. For long lines, the limits of reapplication shall start from the location of a passing test, across the failure area(s), to the next passing test location. The minimum length of reapplication shall be 0.4 miles. For arrows, symbols, legends and short lines, the entire defective unit shall be reapplied.

4.3. Composition

4.3.1. All items shall be manufactured in such a manner that they are consistent in formulation, function, performance and color from order to order.

4.3.2. The type and amount of other pigments (I.e. blue, black, gray) are to be at the option of the manufacture, providing that the color achieved when applied in the field has long term durable color function (it appears as it should both day and night).

4.3.3. The pavement markings shall consist of the following components:

Minimum Percent by Weight Resins and Plasticizers 20 Pigments 30 Reflective Glass Beads* 20* *Applicable only when glass beads are used to reflectorize Type I markings

• Refer to the following link: ADOT Standard Specifications for Road and Bridge Construction:

4.4. Physical Characteristics of the Composition

4.4.1. The units of retroreflectance are millicandelas per square meter per lux. The retroreflectometer shall have an 86.5 degree entrance angle and a 1.5 degree observation angle. All measurements should be made in the direction of traffic.

4.4.2. Compliance with the retroreflectance requirements will be based on a random number of measurements, which are taken at representative portions of the applied pavement marking.

The exact sample locations and number of measurements to be taken will be determined by the Department.

4.4.3. For Transverse lines two measurements are to be taken per lane (one wheel path and center of the lane) for which the line crosses (up to a maximum of 20 measurements)

4.4.4. For Long line pavement markings (continuous longitudinal lines), the testing will be performed every 0.2 mile, with four (4) readings (averaged) taken at each location. The four readings shall be taken randomly within a 10 foot section. A minimum of 20 readings shall be taken per line.

The spacing of these measurements is to be roughly at the start, midpoint and end point for the line being measured. The minimum distance between any one measurement should be three

(3) feet.

4.4.5. For Long line pavement markings (skip or 12 inches white turn lanes) lines a total of four (4) readings per lane line are to be taken with a minimum number of ten lane lines to be sampled.

The spacing of the lines to be sampled should be at the start, midpoint and end point in the area to be measured. The minimum distance between the two measurements should be two

(2) feet.

4.4.6. Retroreflectance testing will be performed in the direction of traffic. On roadways where yellow stripes separate opposing traffic, testing is done in both directions (two locations per 0.2 miles, one in each direction).

4.4.7. For Short line pavement marking (symbol and legends) three (3) measurements should be taken on each individual symbol (arrow) or legend letter. The location of the measurements should be near the top, midpoint and bottom of the symbol or legend.

4.4.8. For lines, if 15% of the measurements are below the required minimum then the line segment is to be considered acceptable if no other failure factors (i.e. discoloration, loss of adhesion, etc.) are involved. For the legends and symbols the average of the three readings should be above the minimum required value for it to be considered acceptable.

4.5. Preformed Pavement Marking Glass Bead Properties

4.5.1. When glass beads are used to achieve retroreflectivity, the beads shall be manufactured from glass of a composition designed to be highly resistant to traffic wear and to the effects of weathering.

4.5.2. Physical Requirements

4.5.2.1 Roundness: The roundness of the glass beads shall be determined in accordance with the requirements of ASTM D 1155. A minimum of 75 percent of the beads shall be water-white true spheres free from imperfections of all types including air inclusions, film scratches, clusters, and surface scoring. Refer to the following link:

https://www.astm.org

4.5.2.2. Refractive Index: The glass beads used with the preformed pavement marking material shall have a minimum refractive index of 1.50 when tested by a liquid immersion method (Becke Line Method or equivalent, as specified in ASTM C 1648) at a temperature of 25 ± 5 °C.

4.5.2.3. Gradation: The gradation of the glass beads shall be such that performance requirements for the preformed pavement marking material shall be met.

https://www.astm.org/

4.5.2.4. Heavy Metal Concentration: Heavy metal concentration in glass beads shall be as specified in the following table, when tested by an independent laboratory, approved by the Engineer, using EPA Method 3052 and EPA Method 6010B. A Certificate of Analysis conforming to Subsection 106.05 shall be furnished to the Engineer prior to use. Refer to the following links:

• ADOT Standard Specifications for Road and Bridge Construction:

• EPA: https://www.epa.gov

Heavy Metal Concentration

Arsenic < 75 ppm Antimony < 75 ppm

Lead < 100 ppm

4.6. Corrective Action

4.6.1. The Department shall notify the Contractor, verbally and in writing, of any deficiencies found within the contract limits. If deficiencies are noted, the Department will submit a Vendor Performance Report to the Procurement Officer, identifying the contractual deficiency and the expected resolution. A copy will be furnished to the Contractor.

4.6.2. When written notice of performance deficiencies delivered to the Contractor, the Contractor shall, at no cost to the Department, correct the deficiencies to the approval of the Department.

5. Contractor’s Responsibilities

5.1. Testing and Quality Control

5.1.1. The Contractor shall have a quality control process that involves sampling and testing of all pavement marking materials that are delivered to the Department. The tests conducted on each batch of material shall be of sufficient quantity and quality to ensure that the materials made and delivered are in conformance to the requirements of the specifications. This quality control process shall maintain records of these batch tests for a minimum of three (3) years after the pavement markings are made and delivered to the Department. Solid samples of the material shall be maintained, at a minimum, two (2) years after a batch is delivered to the Department.

5.1.2. At any time during this contract, the Department may conduct testing to verify the compositional and physical characteristics requirements stated herein. If this testing is done, it will be conducted using the appropriate methods referenced and/or specified. The Department reserves the right to utilize, modify and/or develop other test methods if they are deemed relevant to the practice of verifying that the requirements of the specifications are being met.

5.1.3. The Department may also request the Contractor obtain a compositional verification test from their own internal or independent lab.

https://www.epa.gov/

5.1.4. Each batch of material manufactured and shipped to the Department shall have a separate number.

5.1.5. The Contractor’s quality control program, which is to be applied to each batch of pavement marking material made for the Department, shall embrace as many tests as possible that provide assurance of consistent quality.

5.1.6. A quality control process which is found to be lacking may be grounds for either contract suspension or contract cancellation. The Contractor shall take immediate measures to correct any issues. The Department reserves the right to reject any shipments, not found in compliance with the quality control process.

5.2. Packaging

5.2.1. All packaging of material shall be clearly marked to identify the color of the contents, the binder type (alkyd), formulation type (extrude), summary of use instructions, SDS sheet, manufacture’s name and contact information, batch number (traceable code) and manufactured date.

5.2.2. All containers are to be marked as necessary per the applicable Hazardous Material Identification System, National Fire Protection Association (NFPA) and any other applicable Federal requirements.

5.2.3. Each pallet shall be neatly packed, securely wrapped and clearing marked with its destination and contents.

5.2.4. All symbols, legends and flat line segments shall be in individual containers or boxes that are easy to handle and store. The containers/boxes shall protect the material from damage during handling, shipping, storing and used in the field. Large shipments shall be placed on pallets.

5.3. Delivery

5.3.1. All deliveries to the locations specified on the purchase order (PO) shall be completed as soon as possible, but no later than thirty (30) days after receipt of an order (ARO), unless otherwise directed or approved by the requesting location. Extensions to delivery and/or phased delivery times are allowable if approved by the Department.

5.3.2. Deliveries are accepted during normal business hours excluding holidays and weekends.

5.3.3. The delivery date and time shall be verified with the Department’s receiving facility (listed below) at least two (2) working days in advance. This provision is intended to ensure the Department’s personnel and equipment (i.e. forklift) is available to unload shipment. All deliveries requiring the use of a forklift to unload shall be made in an open (stake bed) trailer.

The Department is not responsible for any delay due to unavailable personnel or equipment to unload.

Regional Traffic Sign and Striping Maintenance Contacts:

Central Regional Traffic Sean McHugh 2209 W. Durango Street Phoenix, Arizona 85009 Phone: (602) 320-4561

North Central/North West Regional Traffic Kyle Seisinger 6989 E. Second Street Prescott Valley, Arizona 86314 Phone: (928) 277-2925

South Central Traffic Regional Traffic Xavier Casillas 1444 West Grant Road, MD T170 Tucson, Arizona 85745 Phone: (520) 838-2825

In most cases the above referenced addresses will be the delivery locations.

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 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. SHIPPING TERMS

Delivery shall be F.O.B. Destination, freight prepaid 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 of the Contractor. All claims for visible or concealed damage shall be filed by the Contractor. The Department will notify the Contractor promptly of any damaged goods and shall assist the Contractor in arranging for inspection.

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 fifteen (15) calendar 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 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

• 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.

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 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 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.

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 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

The Contractor or any subcontractors are prohibited from having weapons in their possession or on their person within the building. Weapons shall be stored securely, consistent with A.R.S. § 13-3118, in the Contractor’s or any subcontractor’s vehicle if there are no storage amenities available at the ADOT facility.

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 except in the manner stated above.

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 CLAUSE

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.

21. INSURANCE

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.

Minimum Scope and Limits of Insurance

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

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.

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.

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).

Additional Insurance Requirements

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

1. 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).

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

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.

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.

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 or 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 State of Arizona project/contract number and project description shall be noted on the certificate of insurance. The State of Arizona reserves the right to require complete copies of all insurance policies required by this Contract at any time.

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 the Contract, proof from the Contractor that its subcontractors have the required coverage.

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 but may be made by administrative action.

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 REPORT

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 3. 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. CATALOG PRICING

Contract prices shall be in the form of a fixed percentage of discounts off the most recent established catalog or manufacturer’s price list. The published price list may be in the form of an Internet website. The internet website shall include at a minimum, part numbers (if applicable) and descriptions (Photos Optional) of all contracted products or groups of products.

An established Catalog or Manufacture’s Price List shall be defined as one that:

• Is regularly maintained by a manufacturer, distributor or contractor;

• Is either published or otherwise available for inspection by contract customers; and states prices at which sales are currently or were last made to the contractor’s general contract buying public for the items involved.

Multiple percentage discount structures are acceptable.

The Department reserves the right to add new products to the Contractor’s Discount Catalog. These products shall be subject to the same discounts, as like products already available in the Discount Catalog. Percentage discounts shall apply to all current and future part numbers supplied in published catalogs and price lists.

The Department, at its sole discretion, may maintain the contractor's electronic catalog data and price lists or provide electronic links to it through the Arizona Procurement Portal (APP),website: app.az.gov

Catalogs and Price Lists shall be made available either in an electronic format upon award, annually at renewal, when the manufacturer…