ESBD_374294_1724429867274_1_304T-25-915M1 Pre-Sort Mail Services Part A.pdf

03-2024 Solicitation No. 304T-25-915M1

Page A1

TEXAS COMPTROLLER OF PUBLIC ACCOUNTS

STATEWIDE PROCUREMENT DIVISION

REQUEST FOR PROPOSALS

Pre-Sort (Barcode) Mail Services

Letters, Flats, and Postcards

RFP No. 304T-25-915M1

NIGP CLASS-ITEMS

915-57

915-58

963-57

SCHEDULE OF EVENTS

ESBD Posting Date August 23, 2024

Pre-Bid Conference Date and Time September 4, 2024 at 9:00am

Questions Submission Deadline Date September 6, 2024

Response to Questions through Addendum Date, or as soon thereafter as practical September 11, 2024

RESPONSE DUE DATE September 19, 2024

RESPONSE DUE TIME 1:30 pm Central Time in Austin TX

**NOTE** This Solicitation is composed of two parts: (1) Part A: Special Instructions, (including attachments and appendices, if any) and (2) Part B: General Instructions and Contract Terms and

Conditions (including attachments and appendices, if any). In the event an instruction or term in Part A conflicts with an instruction or term in Part B, the instruction or term in Part A prevails, and any addenda or amendments to either Part A or Part B control over the original versions.

Page A2

SUBMISSION CHECKLIST

COMMUNICATIONS WITH ANYONE OTHER THAN THE POINT OF CONTACT LISTED

IN SECTION A.13.4 MAY RESULT IN DISQUALIFICATION OF A RESPONSE.

CPA will disqualify any response received without the required documentation identified below.

ATTACHMENT A - EXECUTION OF RESPONSE

MANDATORY PRICE SHEET

CPA may disqualify any response received without the required documentation identified below.

IDENTIFICATION OF CLAIMED CONFIDENTIAL/PROPRIETARY INFORMATION if any

ATTACHMENT B - RESPONDENT INFORMATION

ATTACHMENT C - PREFERENCES

ATTACHMENT D - INSURANCE STATEMENT OF INTENT

RESPONDENT QUALIFICATIONS STATEMENT – Reference Section A.9.2

DISASTER RECOVERY PLAN – Reference Section A.9.14

CONTINGENCY PLAN – Reference Section A.10

IDENTIFICATION OF ALL EXCEPTIONS AND ASSUMPTIONS to terms of this Solicitation or

Contract if any

CONFLICT OF INTEREST DISCLOSURE, if applicable – Reference Part B.1.1

CURRENT USPS POSTAGE RATES

SIGNED COPIES OF ALL ADDENDA to this Solicitation if any

REFERENCE SECTION A.18 AND SECTION A.19 FOR SUBMISSION REQUIREMENTS

Page A3

PART A: SPECIAL INSTRUCTIONS

Table of Contents

A.1 DEFINITIONS

A.2 DESCRIPTION

A.3 TERM OF THE CONTRACT

A.4 PRICING

A.4.1 PRICING STRUCTURE – FIRM PRICE (RESPONDENT SERVICE FEES)

A.4.2 PRICING STRUCTURE – USPS DISCOUNTED POSTAGE RATES

A.5 USPS DISCOUNTED RATE ADJUSTMENTS

A.5.1 DISCOUNT INCREASES

A.5.2 DISCOUNT RATE ADJUSTMENTS

A.5.3 TARIFFS

A.6 INSURANCE

A.7 CUSTOMER RESPONSIBILITIES

A.7.1 POSTAGE

A.7.2 REPORTING

A.8 CONTRACTOR PERSONNEL, VEHICLES, AND EQUIPMENT

A.8.1 CUSTOMER SERVICE REPRESENTATIVE

A.8.2 PERSONNEL SCREENING

A.8.3 VEHICLES AND EQUIPMENT

A.9 SCOPE OF WORK

A.9.1 SCOPE OF WORK

A.9.2 MAIL PIECES

A.9.3 PRE-SORT (BARCODE) MAIL SERVICES REQUIREMENTS

A.9.4 MAIL PICK UP

A.9.5 PICK UP RECEIPT

A.9.6 MAIL PROCESSING

A.9.7 DELIVERY TO USPS (SAME DAY OR NEXT DAY)

A.9.8 CHANGE OF ADDRESS PROCESSING

A.9.9 SHORT PAID MAIL

A.9.10 NON-ELIGIBLE MAIL

A.9.11 QUALITY CONTROL PLAN

A.9.12 SECURITY REQUIREMENTS

A.9.13 CONTRACTOR FACILITY LOCATIONS

A.9.14 DISASTER RECOVERY

A.9.15 PRE-PRODUCTION SAMPLE RUN - POST AWARD

A.9.16 CONDITION OF PRODUCTS

A.9.17 QUANTITIES

A.10 CONTINGENCY SERVICES FOR CUSTOMERS

A.11 SHIPPING, DELIVERY, AND PACKAGING

A.11.1 IDENTIFICATION OF SHIPMENTS AND DOCUMENTATION

A.11.2 PICK UP DELAYS

A.12 PURCHASE ORDERS, INVOICES AND REPORTING

A.12.1 CUSTOMER PURCHASE ORDERS

A.12.2 INVOICES AND EXPEDITED PAYMENT DISCOUNTS

A.12.3 REPORTING REQUIREMENTS (MANAGED)

A.12.4 STATEWIDE CONTRACT DEVELOPMENT REPORTING

A.13 RESPONSE INFORMATION

A.13.1 SCHEDULE OF EVENTS

Page A4

A.13.2 SOLICITATION ADDENDA

A.13.3 QUESTIONS AND ANSWERS

A.13.4 POINTS OF CONTACT

A.13.5 PRE-BID

A.13.6 DOCUMENTS AND ATTACHMENTS INCLUDED WITH THIS SOLICITATION

A.14 HUB SUBCONTRACTING PLAN

A.15 DISCLOSURE OF INTERESTED PARTIES

A.16 EVALUATION OF RESPONSE

A.16.1 RESPONSIVENESS

A.16.2 RISK OF NON-PERFORMANCE

A.16.3 BEST VALUE

A.16.4 TIES

A.16.5 EVALUATION PROCESS

A.16.6 EVALUATION FACTORS

A.17 AWARDS

A.17.1 AWARD APPROACH

A.17.2 NON-AWARD

A.17.3 AWARD NOTICE

A.17.4 SUBSTITUTIONS

A.18 ORGANIZATION OF THE RESPONSE FOR SUBMISSION

A.18.1 CONFIDENTIAL/PROPRIETARY INFORMATION

A.18.2 ATTACHMENT A - EXECUTION OF RESPONSE

A.18.3 ATTACHMENT B - RESPONDENT INFORMATION

A.18.4 ATTACHMENT C - PREFERENCES

A.18.5 ATTACHMENT D – INSURANCE STATEMENT OF INTENT

A.18.6 RESPONDENT QUALIFICATIONS

A.18.7 DISASTER RECOVERY PLAN

A.18.8 CONTINGENCY SERVICES PLAN

A.18.9 MANDATORY PRICE SHEET

A.18.10 NEGOTIATIONS, ASSUMPTIONS, AND EXCEPTIONS

A.18.11 USPS POSTAGE RATE LIST

A.18.12 SIGNED ADDENDA TO SOLICITATION

A.19 SUBMITTING THE RESPONSE TO CPA

A.19.1 ELECTRONIC SUBMISSION (PREFERRED)

A.19.2 HARD COPY SUBMISSION

Page A5

A.1 DEFINITIONS

In this Contract, the following terms and acronyms have the meaning set forth below.

TERM DEFINITION

Agency Code

Number

A unique number assigned to each state agency that allows for the proper assignment of fees.

Automation

Compatible

Mail

Mail that complies with the automation requirements as set forth in the DMM.

Coding

Accuracy

Support System

(CASS)

Certification process is designed in cooperation with the mailing industry to improve the accuracy of postal codes, i.e., Five-Digit ZIP Code®, ZIP + 4®, delivery point (DPCs), and carrier route codes that appear on mail pieces.

Contract Any Contract resulting from this Solicitation, consisting of the Contract documentation as provided in Section B.3.2.

Contractor Any Respondent awarded a Contract based on this Solicitation.

CPA

The Texas Comptroller of Public Accounts, the state agency issuing this

Solicitation.

Customer

State of Texas agencies, institutions of higher education, and cooperative purchasing members, including CPA, that are required or permitted by law to purchase goods and services under contracts established by CPA.

Customer

Service

Representative

(CSR)

An employee of a Contractor, other than the Project Manager, that is responsible for responding to issues from Customers.

Delivery Point

Barcode

(DPBC)

A POSTNET barcode that consists of 62 bars with beginning and ending frame bars and 5 bars each for the nine digits of the ZIP+4 code, the last two digits of the primary street address number (or post office box, etc.), and a correction digit. The DPBC allows automated sorting of mail to the carrier level in walk sequence.

ESBD

The Electronic State Business Daily, which is available online at http://www.txsmartbuy.com/esbd

Fast Forward

A USPS-licensed multiline optical character reader system that updates addresses by identifying names and addresses for which current change-of-address orders are on file.

First-Class Mail

A class of mail that includes all matter wholly or partly in writing or typewriting, all actual and personal correspondence, all bills and statements of account, and all matter sealed or otherwise closed against inspection. Priority Mail is a subclass of First-Class Mail. Any mailable matter may be sent as First-Class

Mail.

Flats

As defined by the DMM, envelopes with a minimum size of 6.12 x 11.5 and maximum size of 12 x 15, with a maximum thickness of .75". Flats/Large

Envelopes must be flexible. Even if packaged in something that is defined as a

Flat, the envelope must bend naturally (under its own weight) to be defined as a

Flat.

FOB

Destination

The seller retains the risk of loss until the goods reach the buyer, and the seller bears all shipping costs.

Intelligent Mail

Bar Code

Formerly called the 4-State Customer barcode, it is the upgraded USPS barcode used to sort and track letters and flats and provides expanded ability to track individual mail pieces.

http://www.txsmartbuy.com/esbd http://www.txsmartbuy.com/esbd

Page A6

Intelligent Mail

Package

Barcode (IMpb)

The IMpb includes the routing information in the barcode which allows the

Postal Service to use automated equipment to sort and track packages as they travel through our network to the post offices that will make final delivery at the respective destinations.

Letters As defined by the DMM, rectangular mail at least 3 ½” high, 5” long and .007 inch thick and no more than 6 1/8” high, 11 ½” long and ¼” thick.

Mail Materials, including Letters and Flats tendered to Contractor for service.

Mail Piece An article presented to Contractor for processing and submission to USPS.

Under the Contract, this includes letters, flats, postcards and trifolds/bifolds.

Metered Mail Any mail class with postage printed by a USPS-approved postage evidencing device.

Multi-line

Optical

Character

Reader

(MLOCR)

An automated mail sorting machine that interprets the address information on a mail piece and sprays the corresponding ZIP Code information onto the piece as a barcode.

Multi-line

Optical

Character

Reader

Accuracy

Support System

(MASS)

A certification of the equipment of the Contractor that ensures the hardware and software's ability to perform accurate address matching and barcoding of the mail.

National

Change of

Address

(NCOA)

A secure database of some 160 million permanent change of address records with names and addresses of individuals, families and businesses having filed a change-of-address with USPS. This allows mailers to process and update their mailing lists prior to sending out mailings for a fee.

Non-

Automation

Mail

Mail that, because of its physical characteristics, cannot be barcoded, encoded, or processed through automated equipment. Non-automation mail includes letters or flats.

Non-metered

Mail

Mail for which postage is paid by the batch at the time of mailing according to special permits for batches of identical pieces of any one class of mail and which bears indicia printed by some device other than a postage meter.

Origin Location The physical location where mail is picked up.

Party or Parties Either CPA or Respondent, separately or collectively.

Permit Imprint Printed indicia, instead of an adhesive postage stamp or meter stamp, that shows postage prepayment by an authorized mailer.

Pre-barcoded

Mail pieces that bear an address barcode either in the address block or optical character reader (OCR) read area, or in the case of flat mail that is pre-barcoded in accordance with the DMM.

Respondent Any person who submits a Response to this Solicitation.

Response A bid or proposal submitted to CPA in response to this Solicitation.

Short Paid Mail Mail that does not have enough postage paid for its weight and/or service.

Solicitation

This document, along with all other documents incorporated in this document and posted to the ESBD, soliciting responses for the proposed commodities and services.

Stale Meter

Date

Any date on a postage meter postmark that is other than the date the mail is deposited with a USPS facility.

Standard Mail A class of mail that consists of mailable matter that is not required to be mailed as First-Class Mail or as identified in the DMM.

Page A7

Statewide Mail

Operations

The Statewide Procurement Division (SPD) Statewide Mail Operations was established by Texas Government Code Chapter 2176 and provides state agencies and universities a variety of mail operations. The Statewide Mail Office facilitates the delivery, collection and metering of USPS domestic mail, international mail, interagency mail, and state warrants. Additionally, the

Statewide Mail Office serves as the United States Postal Service (USPS) liaison as well as the Mail Equipment and Services coordinator.

U.S.C. United States Code

Upgradable

Mail

First Class Mail and Standard Mail that the USPS can apply a delivery address barcode. Automation compatible pieces with machine printed non-script addresses, OCR read area, barcode clear zone meeting reflectance requirements and paper that can accept ink.

USPS United States Postal Service

USPS Domestic

Mail Manual

(DMM)

https://pe.usps.com/DMM300/Index

Zip Sequenced Mail that is assembled by Customers in ZIP code order.

A.2 DESCRIPTION

The Statewide Procurement Division (SPD), a division of CPA, requests sealed responses for pre-sort

(barcode) mail services, letters, flats, and postcards.

A major customer for these services is the Texas Comptroller of Public Accounts.

A.3 TERM OF THE CONTRACT

The initial term of this Contract commences on the effective date set out in a Notice of Award, or

September 1, 2024, whichever is later, issued by CPA and automatically expires on August 31, 2025.

1st Renewal Option: September 1, 2025, through August 31, 2026

2nd Renewal Option: September 1, 2026, through August 31, 2027

3rd Renewal Option:

4th Renewal Option:

September 1, 2027, through August 31, 2028

September 1, 2028, up to one (1) additional year

CPA may unilaterally renew the Contract.

A.4 PRICING

Response prices or discounts must be firm, all-inclusive, fixed prices. Contract pricing may only change in accordance with the Price Adjustments provision of the Contract, provided however, that if a

Contractor offers or provides a lower discount to any customer for the same services, under the same terms and conditions provided for CPA and its Customers, the Contractor must provide the same lower discount price under the Contract.

Unit prices or discounts offered must include all Contract requirements. Shipping shall be FOB

Destination; therefore, unit prices must include statewide delivery (all shipping, handling, and delivery fees and fuel surcharges).

https://pe.usps.com/DMM300/Index

Page A8

A.4.1 Pricing Structure – Firm Price (Respondent Service Fees)

Fee must remain firm for the initial term and all renewal periods of the Contract. Fee must include special handling, transport, and delivery of mail.

A.4.2 Pricing Structure – USPS Discounted Postage Rates

The rates must be based on published USPS rates, sorted to three (3) digit zip code level, with discounted rate adjustments based on changes in USPS postage rates in renewal years.

The estimated volume of postages for one year are:

Letters: 16,770,222

Flats: 703,820

Postcards: 106,408

A.5 USPS DISCOUNTED RATE ADJUSTMENTS

A.5.1 Discount Increases

Contractor must immediately implement any price discount increase that becomes available.

Contractor must notify CPA of discount increases by email to: spd.cmo@cpa.texas.gov

A.5.2 Discount Rate Adjustments

CPA will consider adjustments to USPS discounted postage rates in accordance with USPS changes for one or more postage rates. Contractor must provide supporting USPS documentation to justify all USPS discount adjustments. Any request that does not include approved USPS discount rate documents will not be considered.

Adjustment requests and cancellation requests under this section should be sent by email to:

spd.cmo@cpa.texas.gov

A.5.3 Tariffs

The parties may agree to adjust prices periodically to reflect changes in tariffs implemented after the

Response Due Date that affect the cost of supplying goods under this Contract. Any existing tariffs at the time of the response should be considered as part of the response price. To request a price increase related to tariffs, Contractor must provide documentation that includes the effective date, amount, and scope of the tariffs. Contractor must demonstrate with specificity the effect of tariffs on its necessary and reasonable cost of supplying goods under this Contract, including its commercial reasons for using a source subject to tariffs. Any adjustment is at CPA’s sole discretion. If CPA grants an adjustment related to tariffs, Contractor shall monitor tariff levels and notify CPA within five business days of any reduction or repeal. CPA may reduce or retract a tariff adjustment it has granted at any time by notifying the Contractor of the new prices.

A.6 INSURANCE

The Response must include a statement that Respondent intends to obtain and maintain for the term of the Contract and any renewal periods the minimum insurance coverage specified in the table below.

The Response should also describe other insurance coverage maintained by Respondent in the ordinary course of business and provide proof of same in its Response.

mailto:spd.cmo@cpa.texas.gov

Page A9

If Respondent’s normal and customary insurance coverage exceeds the minimum required amounts in this Solicitation, the Contract will require those normal and customary types and amounts of coverage.

Proof of insurance may be provided in the form of current certificates of insurance.

Respondent may propose alternate insurance amounts or coverages in the form of an exception. See

Section A.18.10. If CPA rejects the exception, the Respondent shall obtain the minimum coverage listed.

Any subcontractor performing work under this Contract must meet the same minimum insurance requirements. Contractor shall ensure its subcontractors’ compliance with all requirements.

Minimum Required Amounts of Insurance Coverage

Type of Insurance Each Occurrence/Aggregate

Commercial General Liability

(Occurrence based)

Required types of coverage: Blanket, Broad

Form Property Damage, Premises and

Operations Hazards, Products and Completed

Operations Hazards, Independent Contractor’s, and Contractual Liability

Bodily Injury and Property Damage

$1,000,000 Each Occurrence Limit

$2,000,000 Aggregate Limit

$2,000,000 Products/Completed

Operations Aggregate Limit

$1,000,000 Personal Injury and

Advertising Liability

Automobile Liability

All Owned, Hired and Non-Owned Vehicles

(Required if the Contractor owns vehicles or uses vehicles to perform the Contract)

$500,000 Combined Single Limit (for each accident)

Workers’ Compensation

(Required if the Contractor has one or more employees)

Statutory Limits

Employer’s Liability

Bodily Injury by Accident

Bodily Injury by Disease

Bodily Injury by Disease

$1,000,000 Each Accident

$1,000,000 Each Employee

$1,000,000 Policy Limit

Umbrella or Excess Liability

$1,000,000 of additional coverage (either

Umbrella or Excess Liability) for all liability policies required for this

Contract (excluding Workers’

Compensation insurance)

Additional Insurance

Additional insurance and related provisions may be required by Customer depending on Customer’s particular circumstances. Customer will identify any additional insurance requirements when placing a purchase order

All required insurance policies must be issued from a company or companies with a Financial Strength

Rating of “A-” or better and a Financial Size Category of VIII or larger from AM Best. CPA may consider other sources of information and reserves the right to determine whether an insurer is acceptable in its sole discretion.

Page A10

All insurance policies must be issued by companies authorized to do business under the laws of the

State of Texas and in a form satisfactory to CPA. Except as specified below, all insurance policies must:

(1) be written on a primary and non-contributory basis.

(2) name the state of Texas as a certificate holder on all certificates of insurance.

(3) name the state of Texas, its officers, and employees as additional insureds on all policies other than workers’ compensation and professional liability; and

(4) include a waiver of subrogation in favor of the state of Texas, its officers, and employees for bodily injury (including death), property damage or any other loss arising from this

Contract or any purchase order.

Within five business days of receiving the Notice of Award, Contractor shall submit current certificates of insurance to CPA. Notices will be sent to spd.cmo@cpa.texas.gov. Failure to submit acceptable proof of insurance may result in termination. Contractor shall maintain the required insurance throughout the Contract.

Contractor must disclose on its insurance certificate whether any of the coverage required under the

Contract is being satisfied with a Self-Insured Retention (SIR) and list the amount of the SIR.

Contractor must obtain CPA’s prior approval of an SIR in excess of $10,000, and provide any documentation requested by SPD.

Contractor shall:

(1) provide written documentation to Statewide Contract Management (SCM) by email at spd.cmo@cpa.texas.gov at least 30 calendar days prior to any cancellation, non-renewal, or material change of a required policy.

(2) ensure all insurance policies and certificates of insurance for required coverage are written to include all products, services, and locations related to Contractor’s performance under the Contract; and

(3) deliver proof of all renewal policies prior to any expiration of a required policy to SCM by email at spd.cmo@cpa.texas.gov. All renewal policies and corresponding certificates of insurance must meet all terms set forth in the Contract.

Contractor must ensure that all provisions of the Contract concerning liability, duty, and standard of care, together with the indemnification provision, are underwritten by contractual liability coverage sufficient to include such Contractor’s obligations under the Contract.

A.7 CUSTOMER RESPONSIBILITIES

A.7.1 Postage

(1) Customers mail must contain an agency meter, precancelled stamp or permit imprint.

(2) Customer must check that all mail does not have a Stale Meter Date or meter imprints that are illegible.

(3) Customer must execute all forms required by the Contractor and USPS, within five (5) business days.

Page A11

A.7.2 Reporting

(1) Customer must provide Contractor with a daily collection and processing report. At a minimum, the report must include a count of the total number of pieces, trays and/or tubs to be processed for each of the following mail classifications:

a) Domestic First-Class Mail

b) International Mail

c) Domestic Marketing Mail

(2) Contractor may require additional collection information and shall coordinate with each

Customer.

A.8 CONTRACTOR PERSONNEL, VEHICLES, AND EQUIPMENT

A.8.1 Customer Service Representative

(1) Contractor must dedicate a Customer Service Representative (CSR) to the Contract.

(2) The CSR must address all customer contract issues, and requests sent by CPA Statewide

Contract Management (SCM), within four (4) business hours.

(3) The CSR must be available during customers operation hours.

(4) The CSR must have the authority and ability to address and correct any issues related to the implementation and operation of the Contract.

(5) Contractor should notify the SCM in writing fifteen (15) business days before a new CSR is assigned to the Contract, as feasible.

A.8.2 Personnel Screening

(1) Contractor’s personnel must be screened, pass background checks, drug tests, and all applicable United States Department of Transportation (DOT) requirements.

(2) The Contractor must promptly remove any personnel from Contract if they do not meet the required background checks, drug test, or applicable DOT requirements for the job.

A.8.3 Vehicles and Equipment

(1) Contractor must be able to provide all vehicles for transportation, except vehicles provided by USPS.

(2) Contractor must be able to provide the facilities to provide all services identified in this

RFP.

(3) The facilities must have all equipment and supplies in place for processing the services.

(4) The equipment provided in the facilities must be certified in accordance with USPS rules and regulations.

Page A12

A.9 SCOPE OF WORK

A.9.1 Scope of Work

All requirements in this Section are mandatory. Awarded Respondent must be prepared to provide services to all Customers under the Contract by the Contract begin date.

Respondent Qualifications

The Respondent shall demonstrate that it is:

(1) A company or an individual (and whose partners or principals or both) have a minimum of

10 years of experience providing pre-sort (barcode) mail services to Federal or State government agencies of major US cities or counties.

(2) A company or an individual (and whose partners or principals or both) have not filed for bankruptcy within the last eight (8) years.

A.9.2 Mail Pieces

As defined by the current USPS Domestic Mail Manual (DMM).

(1) Flats

(2) Letters

(3) Postcards

(4) Folded Self -Mailers

A.9.3 Pre-sort (Barcode) Mail Services Requirements

(1) Services must meet USPS requirements, and include, but are not limited to:

a) Transporting mail to the Postal Office.

b) Mail Certification by using Coding Accuracy Support System (CASS).

c) Contractor must use equipment that carries the certification of Multi-line Optical

Character Reader Accuracy Support System (MASS) and ensures the hardware and software’s ability to perform accurate address matching and barcoding of the mail.

d) Intelligent Mail Barcode (IMB), Contractor shall apply and/or read customers pre applied full service IMB per USPS rules and regulations.

e) Marking, combining, co-mingling, presorting, packaging, traying, sleeving, banding, sacking, labeling packages, and postal containers.

f) Generating USPS documentation.

g) Maximizing destination entry discounts.

h) Performing move updates for all classes of Customer’s metered and permit imprint

(printed indicia) mail, to achieve the finest depth of sortation and greatest postal discount possible.

i) Contractor must combine each Customer’s mail with mail from other customers to obtain the greatest postal discounts possible.

(2) Types of Mail for Presort Services:

Customers may present various types of Mail to the Contractor including, but not limited to:

a) Automation compatible mail including self-mailers, booklets, postcards, heavy letter mail, reply cards, and envelopes.

b) Zip Sequenced automation compatible mail– assembled by Customer in zip code order.

Page A13

c) Non-Zip Sequenced automation compatible mail.

d) Pre-barcoded (IMB) automation compatible mail.

e) Mail pieces that bear an address barcode either in the address block or optical character reader (OCR) read area or in the case of flat mail that is pre-barcoded in accordance with the DMM.

f) Non-Pre-barcoded Automation compatible mail.

(3) Intelligent Mail Barcode

(4) Non-Automation Mail

A.9.4 Mail Pick Up

(1) Contractor must pick up mail daily, Monday through Friday, 8:00 a.m. to 5:00 p.m., or as coordinated with Customers to meet their frequency and time.

(2) If a pickup delay is foreseen, Contractor must give prompt written notice to Customer and continuously update Customer of the delay status.

(3) Contractor must provide Customers with adequate receptacles according to their needs for preparing Mail for pick up.

(4) Customers that fail to generate the minimum volumes may deliver their mail to the

Contractor or to another Customer for pick up by Contractor.

a) Mail Pieces Per Customer/location minimum are 1,500 pieces per day.

b) Contractor and Customers may mutually agree to lower limits.

A.9.5 Pick up Receipt

(1) The Contractor must sign a receipt indicating the pickup time, date, the number of pieces of mail, number of trays and/or tubs of mail and type of mail consigned for each Customer.

(2) If the Contractor picks up more than one Customer’s mail at one location, the Contractor must generate and sign a separate transmittal receipt for each Customer.

(3) The Contractor must report in writing any discrepancies greater than 5% between the signed receipt and the actual processing totals to the Customer’s designated contact person on the next business day.

(4) All costs associated with the pickup and dispatch of mail are responsibility of the

Contractor.

A.9.6 Mail Processing

(1) Contractor must process all mail same day or next day as required by the Customer.

(2) Machine rejected mail must be processed, at a maximum, by the next business day, after mail rejection.

(3) Contractor and Customer must perform a preliminary review of all mail at the time of pick up to ensure that it contains meter impressions that meet USPS standards.

(4) Contractor must further examine mail at delivery to contractor’s facilities.

(5) The Contractor must not accept mail with Stale Meter Dates (date on a postage meter postmark that is other than the date the mail is deposited with a USPS facility) or meter imprints that are illegible.

Page A14

A.9.7 Delivery To USPS (Same Day or Next Day)

(1) USPS Delivery:

a) Contractor must deposit Mail on the same day as the postage meter date to meet all

USPS meter deposit guidelines except for machine rejected mail.

b) Contractor must present all Mail to USPS no later than the current deadline in the

USPS operation plans, as set forth by the USPS Bulk Mail Entry Unit.

(2) Delivery Service Requested by Customer:

a) Contractor must follow each Customer’s designated same-day and next-day service requirements.

b) Same Day: The contractor must deliver all mail to USPS on the same business day that the Contractor picks up the mail from Customer.

c) Next Day:

i. Contractor must deliver all mail to USPS on the following business day.

ii. The Contractor must deliver all mail to USPS on the following day picked up on a Friday or the day before a USPS holiday if the customer requires next day services.

d) The Contractor and Customer may mutually agree to a different arrangement for a particular mailing.

A.9.8 Change of Address Processing

(1) Respondent must have the ability to provide FASTforward, similar services, or mail forwarding information that meet USPS specifications in accordance with the DMM for use.

(2) A USPS-licensed Multi-line Optical Character Reader (MLOCR) system that updates addresses by identifying names and addresses for which current change-of-address orders are on file.

(3) Contractor must use the National Change of Address (NCOA) secure database to process and update their mailing lists prior to sending out mailings for a fee.

(4) FASTforward cost must be provided in fees for services of this Contract.

A.9.9 Short Paid Mail

(1) Contractor must not tender Short Paid Mail to the USPS.

(2) Contractor must immediately contact the Customer upon identification of Short Paid Mail.

(3) Customer must communicate one of the following actions to the Contractor:

a) Customer may request the Short-Paid Mail be returned at the next mail pick up;

b) Customer may pick up the Short-Paid Mail; or

c) Customer may request the Contractor to Re-meter the mail as appropriate and add to the monthly invoice for the additional postage.

A.9.10 Non-Eligible Mail

(1) Non-eligible mail, is mail that cannot be accepted by USPS or does not meet USPS automation standards.

Page A15

(2) The Contractor must immediately notify the Customer by telephone or e-mail if fifty (50) pieces or more of Non-eligible Mail are included in a single pick up.

(3) Contractor must return all Non-eligible Mail to the original pick-up location for each

Customer during the next day’s first pick up.

(4) Customers may pick up Non-eligible Mail at the Contractor’s location immediately upon receipt of such notification.

(5) Customer may authorize the Contractor to process the mail at their direction.

A.9.11 Quality Control Plan

Contractors must have a current quality control plan in place for all services as described in this RFP.

Contractor must provide if requested, a current quality control plan for all services as described in this

RFP.

A.9.12 Security Requirements

(1) Contractors must guarantee the security of all mail and the transported mail will be in an enclosed and secured vehicle.

(2) The Contractor must insure against damage, loss, or theft of mail while Contractor is providing services pursuant to the Contract.

(3) The Contractor must maintain proper control of mail to prevent access by unauthorized individuals.

(4) The Contractor must maintain a secured facility.

(5) Contractor must report any damage, loss, or theft of Customer Mail to the designated contact person for each Customer no later than four (4) hours following Contractor’s discovery of such damage, loss, or theft.

A.9.13 Contractor Facility Locations

Respondent must designate the location or locations it intends to utilize to fulfill the Contract in its

Response. Contractor must notify SCM of any planned change in location used to fulfill the contract, within 30 days prior to the change taking effect, or as soon as practical in the event of a Force Majeure.

Reference Part B, Section B.7.5.

Contractor must perform all services at a location or locations that ensure they meet:

(1) Customers pick up requirements; and,

(2) Customers’ same-day and next-day service requirements.

A.9.14 Disaster Recovery

Contractor shall have a demonstrated and practiced disaster recovery plan to continue operations and restore normal operations in the event they experience a disaster (e.g., a fire or flood at the facility that provides services under this Contract).

Page A16

A.9.15 Pre-Production Sample Run - Post Award

The CPA may request the Contractor to make a “sample run” after award of the contract, but before initial pick-up. The sample run will allow the Customer and Contractor to determine what needs to be corrected to insure speedily, efficient run times. CPA will provide further sample run information after the contract award, if requested. The cost of providing the pre-production sample run will be the responsibility of the Contractor.

A.9.16 Condition of Products

Proposed and delivered products must be new, unused, the latest model in current production, and in first class condition, including containers suitable for shipment and storage, unless otherwise specified in the solicitation. Used, shopworn, demonstrator, prototype, remanufactured, reconditioned, or discontinued models are not acceptable.

A.9.17 Quantities

CPA does not guarantee a specific volume to be purchased throughout the term of the Contract. No minimum compensation to the Contractor is guaranteed. Quantities indicated for each item in the

Mandatory Price Sheet are estimates only and are based upon previous usage for a four-year period, if available, along with other data. These estimates should not be construed as a minimum or a maximum quantity that Customers may order.

A.10 CONTINGENCY SERVICES FOR CUSTOMERS

During the term of the Contract, Customer(s) may temporarily lose the ability to meter or permit imprint mail.

Contractor should include in its proposal a Contingency Services Plan that explains how the Contractor will provide contingency meter services for Customers following the procedures outlined below:

(1) At the request of the Customer, the Contractor will pick up mail.

(2) The Customer will provide:

a) The Total number of trays and or tubs with the following:

i. Domestic mail: count for each type of mail, letter, letters, flats, postcards, or certified mail.

ii. International mail: count for each for each type of mail, letters, flats, postcards, or certified mail.

b) The metering and permit imprint services required for each type.

c) Delivery Requirements to USPS: same business day or next business day.

(3) The Contractor shall meter or permit imprint the mail per the guidance provided by the

Customer.

(4) The Contractor will take the mail to USPS for processing.

(5) Invoice will include the following for Contingency Services:

a) The invoice may include, as an attachment, a detailed report to identify each type of mail, the counts for each type and the applicable postage.

b) Postage Costs (actual).

c) Meter or Permit Imprint Fee per piece.

(6) No additional service fees may be assessed to the Customer.

Page A17

A.11 SHIPPING, DELIVERY, AND PACKAGING

A.11.1 Identification of Shipments and Documentation

In addition to the complete destination address, each delivery must be clearly marked with the purchase order number. Each shipment must be accompanied by a packing slip.

A.11.2 Pick Up Delays

Time is of the essence in performance of this Contract. CPA and the Customer may exercise contractual remedies in connection with late pick up.

A.12 PURCHASE ORDERS, INVOICES AND REPORTING

A.12.1 Customer Purchase Orders

To utilize the Contract pricing, Customers will issue an internal purchase order referencing the number for the CPA Managed Contract, commodity codes, item descriptions, and current contract pricing.

Contractor agrees not to deliver goods or provide services awarded under this Solicitation until receipt of a Purchase Order from Customer.

Purchase orders dated during the term of the Contract must be honored, even if received by the

Contractor after the Contract expiration date. Contractor may not specify a "final order" receipt date.

Pricing is established by the date the purchase order is placed.

A.12.2 Invoices and Expedited Payment Discounts

Reference Part B, General Instructions and Contract Terms and Conditions, Section B.5.3, Invoicing and Payment Requirements.

Payment terms for the State of Texas are typically 30 days. Respondents may provide their additional discount extended to each invoice on Attachment B – Respondent Information.

Contractor must submit an itemized invoice to Customer reflecting the CPA Contract number and

Customer purchase order number.

A.12.3 Reporting Requirements (Managed)

By the 10th day of every calendar month, Contractor must report the past month’s sales under the

Contract to Statewide Contract Management at tcmo.reporting@cpa.texas.gov in the format prescribed by CPA. The dollar value of the sale must be the price paid by the Customer for the goods and services under the Contract. If no sales occur, Contractor must report no sales in a manner prescribed by

CPA.CPA reserves the right to modify contract reporting requirements at its sole discretion in order to meet the evolving needs of CPA and its Customers. If the Contractor fails to submit sales reports, falsifies sales reports, or fails to submit sales reports in a timely manner, CPA may terminate or cancel the Contract pursuant to Part B, Section B.3.5.

(1) Reporting for Customers

a) Contractor shall make Mail processing reports available to the Customer(s) within five

(5) business days of written request.

b) Contractor shall establish a unique invoice account for each Customer and include points of contact, phone numbers, e-mail account and physical and invoice addresses.

c) Contractor must invoice the Customer monthly.

mailto:tcmo.reporting@cpa.texas.gov

Page A18

i. Minimum Amount: $5.00

ii. Monthly Invoice must include, but not limited to:

• Customer Account Number,

• Customer Purchase Order Number,

• Invoice Number, and

• Detailed transactions and amounts, to include short paid postage.

(2) Reporting for Statewide Mail Operation Office

Contractor shall send a Monthly piece count with postage totals to the Statewide Mail

Operation office operated by CPA’s Statewide Procurement Division.

The Statewide Mail Operation office will bill back postage and piece count totals based on software from metering the mail. Contractor shall bill back Statewide Mail Operation office based on total mail processed by the Contractor. Other billing or reporting requirements can be made with the Statewide Mail Operation office based on a mutually agreed upon arrangement.

(3) Reporting for Statewide Contract Management

a) At a minimum, Contractor must provide SCM with a performance report on a quarterly basis.

b) Contractor shall meet with SCM within the first 30 calendar days of Contract award to establish the format and data to be included in a performance report.

c) Contractor shall be obligated to work with SCM to adjust and refine the performance report throughout the term of the contract, including any renewals and extensions.

d) Contractor must notify SCM and the Customer by no later than 12:00 PM of the next business day of any failures to deliver Mail to USPS within required timeframes.

e) Contractor must also notify SCM of any Customer complaints within three (3) business days of receipt of the complaint.

f) Contractor shall provide additional information regarding a delivery failure or a

Customer complaint to SCM, if requested.

g) Contractor shall make the additional information available within the timeframe specified by SCM.

h) Contractor shall make additional ad hoc reports available to SCM within three (3) business days of written request unless another deadline is agreed to by Contractor and

SCM.

(4) Reports at End of Contract

Contractor shall provide the State with all previously un-submitted reports upon termination or expiration of the contract. The State will expect all reports after all debts are settled.

A.12.4 Statewide Contract Development Reporting

Contractor shall provide any information requested by CPA to develop future solicitations and facilitate the transition to potential future contractors in a format acceptable to the CPA within 14 calendar days of the request.

Page A19

A.13 RESPONSE INFORMATION

A.13.1 Schedule of Events

Respondent must submit its Response to CPA before the due date and time indicated on the cover page. CPA may revise this schedule by issuing an addendum on the ESBD.

A.13.2 Solicitation Addenda

CPA will post any addendum to this solicitation on the ESBD. Respondents are responsible for checking the ESBD for addenda prior to submitting a Response. Respondent’s failure to check the

ESBD does not release it from the requirements of any addenda nor permit it to modify or withdraw its

Response after Response opening.

Respondent must acknowledge each Solicitation addendum by returning a signed copy of the addendum with its Response.

A.13.3 Questions and Answers

Respondents must send all questions regarding this Solicitation to the CPA Points of Contact identified in Section A.13.4 by the due date in the Schedule of Events on the cover page. Respondents must reference the relevant Solicitation page and section number in each question. CPA’s responses to questions will be posted to the ESBD.

Respondents must notify CPA of any error or ambiguity in the Solicitation by submitting a question. If

Respondent fails to notify CPA of an error or ambiguity, Respondent (1) waives any claim for money, time, or other relief based on that error or omission, and (2) agrees to accept any reasonable interpretation of the allegedly erroneous or ambiguous provisions by CPA.

All questions submitted to CPA should include the identity of the sender, the sender’s title, company name, telephone number, and email address, as applicable.

Only answers that CPA provides in writing are official. Information in any form other than the materials constituting this Solicitation, the Question-and-Answer Document, and any Solicitation addendum is not binding on CPA.

Minor questions for which the answer will not affect the interpretation of the Solicitation or change the contents of a Response (for example, a question regarding delivery of a sealed Response) may be answered orally or by email by CPA.

A.13.4 Points of Contact

Respondents must direct all communications concerning this Solicitation to the Points of Contact listed below. Respondents may not contact other CPA or agency personnel or any Customer regarding this

Solicitation, unless instructed to do so in writing by the CPA Point of Contact. Communicating with anyone other than the Points of Contact may result in disqualification of a Response.

Responses may not be submitted to the CPA Points of Contact. Follow the instructions for Response submission in Sections A.18 and A.19.

Page A20

Primary Point of Contact - CPA Contract Specialist

Jennifer Walls, CTCD, CTCM

512-475-0507

Email: Jennifer.Walls@cpa.texas.gov

Secondary Point of Contact

Statewide Contract Development (SCD)

Email: spd.contractdev@cpa.texas.gov

If no response is received from the primary point of contact within one business day, Respondent may contact SCD at the email address listed above.

After Contract award, all communications relating to the Contract must be submitted to Statewide

Contract Management at spd.cmo@cpa.texas.gov.

A.13.5 Pre-Bid

The Pre-Bid Conference is scheduled for the date and time listed in the Schedule of Events on the cover page. The Microsoft Team room link of the conference is:

Microsoft Teams Need help?

Join the meeting now

Meeting ID: 259 779 278 814 Passcode: 8HBpgD

Dial in by phone

+1 737-471-3847,,131624635# United States, Austin

(737) 471-3847,,131624635# United States (Toll-free) Find a local number Phone conference ID: 131 624 635#

Join on a video conferencing device

Tenant key: txcpa@m.webex.com Video ID: 116 000 667 2

The Pre-Bid Conference is an opportunity for vendors to hear information about the Solicitation and ask questions about the solicitation. While attendance is not mandatory, it is highly encouraged.

Vendors should notify the Point of Contact that they plan to attend the Pre-Bid Conference no later than September 3, 2024.

mailto:Jennifer.Walls@cpa.texas.gov mailto:spd.contractdev@cpa.texas.gov mailto:spd.cmo@cpa.texas.gov https://aka.ms/JoinTeamsMeeting?omkt=en-US https://teams.microsoft.com/l/meetup-join/19%3ameeting_MTJlNWZjYmQtYTljNy00Njg0LWEyNjYtZmUyZWQ3ZTA3ZTUx%40thread.v2/0?context=%7b%22Tid%22%3a%222055feba-299d-4d0d-aa5a-73b8b42fef08%22%2c%22Oid%22%3a%229154730b-be94-4774-a20c-aa8ed6ff8fab%22%7d tel:+17374713847,,131624635 tel:7374713847,,131624635 https://dialin.teams.microsoft.com/58d35282-7dff-490c-8e1a-27eb861dcb13?id=131624635

Page A21

A.13.6 Documents and Attachments Included with this Solicitation

The Solicitation package includes the following documents:

1. Part A: Special Instructions (this document)

2. Part B: General Instructions and Contract Terms and Conditions

3. Attachment A - Execution of Response (with authorized signature)

Attachment B - Respondent Information

Attachment C - Preferences

Attachment D - Insurance Statement of Intent

4. Attachment E - Potential Customer List

5. Mandatory Price Sheet

A.14 HUB SUBCONTRACTING PLAN

CPA has reviewed this solicitation and determined there are no probable subcontracting opportunities.

Therefore, a HUB Subcontracting Plan (HSP) is not required for this solicitation unless a Respondent will use subcontractors. If a Respondent will subcontract any portion of this Contract, the Respondent must submit a completed HSP located at https://comptroller.texas.gov/purchasing/vendor/hub/forms.php, with its Response.

A.15 DISCLOSURE OF INTERESTED PARTIES

If CPA determines that Texas Government Code § 2252.908 may apply to a Contract award, CPA will instruct the Respondent to disclose interested parties to the Texas Ethics Commission (TEC) and CPA.

A Respondent subject to this requirement must (1) complete TEC Form 1295, Certificate of Interested

Parties at https://www.ethics.state.tx.us/whatsnew/elf_info_form1295.htm; (2) submit the form online to TEC, (3) print the completed form that includes the Certificate Number automatically assigned by

TEC, and (4) submit the form, signed by its authorized agency, by email to CPA.

If a Respondent does not timely submit a completed and signed TEC Form 1295 to CPA, CPA is prohibited by law from executing a contract, even if the potential awardee is otherwise eligible for award. CPA may award the contract to another vendor. CPA may seek appropriate damages for

Respondent’s failure to comply with this requirement.

A.16 EVALUATION OF RESPONSE

A.16.1 Responsiveness

CPA may waive minor or immaterial requirements in the submission process. CPA will disqualify any

Response that does not conform to the solicitation requirements in any material respect as nonresponsive. For example, failure to sign the Execution of Response (Attachment A), failure to submit the Mandatory Price Sheet, or failure to return a required HUB subcontracting plan, will result in disqualification.

A.16.2 Risk of Non-performance

CPA may disqualify a Respondent if there is an unacceptable risk that it will fail to perform the

Contract. The Respondent bears the burden of establishing:

• ability, capacity, and skill to perform the contract or provide the service required.

https://na01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fcomptroller.texas.gov%2Fpurchasing%2Fvendor%2Fhub%2Fforms.php&data=02%7C01%7C%7C23cca4c0388b4d3dc43108d62fb470c8%7C2055feba299d4d0daa5a73b8b42fef08%7C0%7C0%7C636748849367763372&sdata=1W%2BS%2BvP6a01dQHgFV9YBwPv87%2B%2B%2Bs3AyHsIOuKiV618%3D&reserved=0 https://www.ethics.state.tx.us/whatsnew/elf_info_form1295.htm;

Page A22

• ability to perform the contract or provide the service promptly, or in the time required, without delay or interference.

• character, responsibility, and integrity.

• current compliance with laws relating to the contract or service.

• sufficient financial resources to perform the contract and provide the service; and

• conformity to all material specifications required in this Solicitation.

CPA may consider any source of information that it deems reliable.

Vendor Performance Data. CPA will consider a vendor’s past performance in compliance with applicable provisions of Texas Government Code, §§ 2155.074, 2155.075, 2156.007, 2157.003, and

2157.125. The following examples indicate poor performance:

• A score of less than a C in the Vendor Performance Tracking System;

• Currently under a corrective action plan for a CPA contract;

• Repeated negative Vendor Performance Reports for the same stated reason.

• A record of repeated non-responsiveness to vendor performance issues; and

• Cancellation of purchase orders in the previous 12 months for non-performance, such as late delivery.

Vendor performance information is located on the CPA web site at:

http://www.txsmartbuy.com/vpts

Vendor Performance may also be used to determine a vendor has sufficient resources and the ability to perform.

Investigations. CPA may examine sources of information including, but not limited to, notices of termination, cure notices, assessments of liquidated damages, litigation, audit reports, and non-renewals of contracts, media reports, press releases, internet searches, or third-party databases. CPA may request additional information from the Respondent. Failure to provide requested information may disqualify the Respondent. Any such investigations shall be at the sole discretion of CPA.

A.16.3 Best Value

CPA will determine best value for the state as directed by Texas Government Code § 2155.074. CPA will consider compliance with specifications, purchase price, and risk of vendor non-performance as described in A.16.2 above.

A.16.4 Ties

CPA may break a tie by applying preferences under state law that were claimed in the Response. If no preference applies, CPA may award tied items to a randomly selected Respondent that offers best value.

A.16.5 Evaluation Process

After scoring the Responses, CPA may:

(1) Award the contract to the Respondent providing best value to the state;

(2) Determine the competitive range and negotiate with Respondents in the competitive range;

(3) Invite Respondents in the competitive range to make oral presentations;

http://www.txsmartbuy.com/vpts

Page A23

(4) Formally request a Best and Final Offer (BAFO) from Respondents in the competitive range; or

(5) Make no award.

Respondents in the competitive range will be notified of…