Equipment Rental Specific Terms and Conditions.pdf

Equipment Rental Specific Terms and Conditions

Mandatory Pre-bid Conference: There will be a mandatory pre-bid conference to participate in this solicitation. Suppliers must be in attendance to the location listed in the RFB and will be required to sign in. If you fail to attend the site visit, your bid will be rejected. If have any questions before the site visit, please contact the buyer, Wayne Gautney at Wayne.Gautney@purchasing.alabama.gov

Purpose: To establish a statewide contract for heavy equipment rental. Contract prices must be made available to all local governmental agencies, schools, and universities in the State of Alabama.

Award: Multiple contracts may be awarded as a result of this solicitation. Award will be made all or none to multiple bidders offering the highest discount and meeting all specifications.

***Note: Only one discount per line will be accepted. Suppliers that have multiple discounts will need to enter their lowest discount. The State of Alabama will accept higher discounts when items are quoted.

Contract period: Establish a 12-month contract with an option to extend for a second, third, fourth, and fifth 12-month period with the same pricing, terms and conditions. The second, third, fourth, or fifth 12-month period, if agreed by both parties, would begin the day after the first, second, third, or fourth 12-month period expires. Any successive extension must have written approval of both the state and supplier no later than 30 days prior to expiration of the previous 12-month period.

Bid Submission Instructions: Beginning on the Alabamabuys supplier portal page, select the desired sourcing project. Once project is opened make sure the left panel is expanded. If not, click on small double arrows to expand. Be sure to review each tab for necessary information, documentation and enter bid amounts on item grid as needed. After you have checked and completed each tab, you can validate and submit your bid.

***Note: Bid prices for product line items 1-3 must be a percentage (%) discount off standard catalog rate. When bidding on a product item, supplier must enter the percent discount in the Unit Price section of the item grid. Percentage discounts can have up to two (2) digits to the right of the decimal place

(Example: If you are bidding a 25.30% discount off list price, you will enter 25.30 in the unit price). Bid prices for mileage, line 4 must be a dollar ($) amount per mile.

Suppliers may enter “NA” in the supplier part number section of the item grid.

Note: Lines 1 – 4 must all be completed in order for your bid to be accepted. Line 5 will be a quotable line, please enter $0.00 in line 5.

Requested information: Any additional information requested from a supplier must be furnished within five (5) days from receipt of request.

Administrative fee: Awarded bidder(s) are to pay the State an administrative fee for all sales paid under this contract. This fee will be 1.0% (0.01) of the total dollar amount for all sales paid. The fee is to be remitted the first month of each quarter before the 20th and will represent a single, one-time payment mailto:Wayne.Gautney@purchasing.alabama.gov for all sales paid during the prior quarter and as adjusted for errors associated with earlier quarters.

This fee is not to be listed as a separate cost on invoices. The awarded bidder(s) will be required to provide a summary report each quarter before the 20th listing sales paid during the prior calendar quarter. This report is to include the quarter being reported, the master agreement number, purchasing entity, sales amount, and fee amount. A report is due even when there is no activity. This report is to be sent electronically to telecom.admin@oit.alabama.gov. A copy of the summary report is to also accompany the payment. The remittance is to be identified with the reporting quarter and master agreement number. Failure to comply with provisions of this paragraph will be grounds for termination of the contract(s).

Reports and Payments will be due according to the following schedule:

October, November, December – Due by January 20th

January, February, March – Due by April 20th

April, May, June – Due by July 20th

July, August, September – Due by October 20th

Remittance is to be payable to the "State of Alabama Department of Finance" and be sent to:

Alabama Department of Finance

Division of Accounting and Administration

PO Box 300658

Montgomery, Alabama 36130-0658

Quote Requirement: All quotes to end users shall include the catalog price as well as the discounted price.

An awarded supplier may offer volume discounts for large quantity purchases.

When ordering, the agency will request a quote from the contract supplier. All quotes must show the catalog list price less the percentage discount off catalog price for each line item to equal the quoted contract price.

Delivery/Pick-up: Equipment is to be delivered to various locations throughout the 67 counties in

Alabama. The exact locations will be provided by the ordering agency, school, or university. An equipment loaded mileage rate will be added for delivery. The agency, school, or university may also choose to pick-up the equipment with no equipment loaded mileage rate for that line item.

Electronic Payment: suppliers awarded in response to this RFB must accept multiple forms of electronic payment at no additional cost to the State. Payment forms include but are not limited to state issued credit cards, P-cards, EFT or other forms of electronic payment.

Price Escalation Clause: If, during the performance of this contract, the price of the material significantly increases, through no fault of the vendor, a price increase may be considered based upon product cost ONLY. Documentation of the price increase is required from the manufacturer. All price increases must be approved by both the state and the vendor in writing. Any de-escalation in price shall be passed onto the state immediately while still meeting all specifications, terms, and conditions of the contract.

Equipment Rental Specifications: All suppliers who bid on this contact must be able to provide service and delivery throughout the state of Alabama. All rentals must be executed within a reasonable time frame to the using agency. Documented failures to provide adequate rental service and delivery statewide shall be grounds to cancel the contract for non-performance. The contract suppliers are to deliver the equipment in good operating condition. If the using agency determines the equipment is not in good operating condition, the using agency has the right to refuse the equipment at the time of delivery. The equipment refusal must be documented as failure to perform per the specification and terms and conditions of the contract, and a copy of the document sent to the buyer listed on the front of the contract. Repeated offenses of failure to perform per the specifications and terms and conditions of the contract may result in the cancelation of the contract and the contract supplier being debarred from bidding for an indeterminate period. Insurance for the protection of the equipment must be carried by the contract supplier. Supplier is required to go over all maintenance and safety requirements prior to acceptance by the using agency. Using agency is required to provide all employees names who are responsible for operating and maintaining the equipment’s welfare under the rental contract. It shall be the contract supplier’s responsibility to ensure this requirement has been documented and part of the rental agreement. The contract supplier will be responsible for any repairs relating to the equipment, unless the supplier can provide documented proof to state purchasing that the using agency abused or neglected the rented equipment. The burden of proof rest solely on the contract supplier.

Rental fees do not accrue during equipment’s downtime. Downtime starts from the time the supplier is notified by phone with a backup by email. The using agency is to email the supplier a report of what problems the agency is experiencing with the equipment. When the using agencies, project requires immediate replacement/repair of the downed equipment, the contract supplier has a maximum of 2 hours to respond to those concerns. In providing the using agency with response information, the agency can decide of whether the equipment should be repaired/replaced by contract supplier. If the equipment is to be replaced it shall be the responsibility of the using agency to approve the time for the delivery of equipment. No additional delivery cost shall be incurred by using agency for the equipment’s replacement.

Fuel and Preventive Maintenance: All rentals shall come fully fueled and lubricated by the contract supplier. The using agency shall be responsible for preventive maintenance work such as greasing & oil changes (contract supplier must specify frequency of preventive maintenance in rental document supplied to the using agency at the time of rental.) Upon completion of rental, the equipment is to be fully fueled and lubricated prior to pick up or return to the contract supplier.

Rental: a day’s rental will be based on an eight-hour day which will be minimum rental period. Any usage longer than this period within the same day shall be computed at the hourly rate of the day rental. Any usage which would require the equipment being left on the job site for an additional day shall be computed as another 8-hours work. A work week’s rental will be based on a five (5) 8-hour day or 40-hour workweek. All over 40 hours will be computed at the weekly hours rate until time worked reaches monthly rental. One (1) month rental will be based on twenty-two (22) workdays at 8-hours or

176 hours. Any part of a month over this amount shall be computed at the monthly rate. Note: any time equipment is used any part of a day, rate will be based on an 8-hour day charged on day, weekly or monthly hour basis, whichever is applicable.