ESBD_397119_1740692337356_Addendum 1of1_HHS0015803.pdf

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Attached to
Revenue Generating Vending Machine Services for Mexia State Supported Living Center
Solicitation number
HHS0015803
Issued by
Lampasas County, Texas

About this file

This addendum to Solicitation Q&A (HHS0015803) provides clarifications from the Texas Health and Human Services Commission regarding a revenue-generating vending machine services contract for the Mexia State Supported Living Center. The solicitation requires contractors to install, maintain, and service approximately 56 vending machines (36 refrigerated beverage machines, 19 snack machines, and 1 change machine) at the facility. The contract will commence upon award and continue through August 31, 2029, with a potential one-year extension. Key deadlines included questions due by February 24, 2025, and final responses required by March 5, 2025, at 10:30 AM CT. The addendum confirms that vending machines previously operated at the facility, and prospective bidders must obtain historical sales data through formal Open Records Requests rather than direct facility coordination.

The addendum addresses critical operational and qualification requirements that remained unchanged from the original solicitation. Contractors must be located within 50 miles of the facility, possess a minimum of five years of relevant vending experience, and maintain the ability to remove all machines and restore locations within 10 business days upon contract termination. Beverage pricing must be structured per unit (each), and contractors must pay a percentage of gross revenue after sales tax to the facility; however, vendors exempt from sales tax under Texas state guidelines are not required to include this charge. The solicitation does not offer set-asides for disadvantaged enterprises, and the revenue-sharing arrangement involves no upfront rental costs to the state facility. Pricing submissions constitute mandatory bid factors that will be evaluated as part of the competitive bidding process.

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Addendum No. 1 - Solicitation Q&A

Solicitation Title: Revenue Generating Vending Machine Services for Mexia State Supported Living Center

Solicitation Number: HHS0015803

Reference (If Applicable)

Question Response

1. Procurement Schedule

The last Box, Box 5 states Anticipated Contract Start Date is “Upon Award”… does that mean there currently are no vending machines at this facility?

No. Upon Award means the Contract will begin once it is awarded.

2. General Question have there ever been beverage and snack vending machines at this facility? Yes.

3. General Question to make a proper financial assessment to arrive at pricing, commissions, expenditures and profitability, we request the vending sales of the last full year of service, or at the least commissions of the last full year of vending machine service?

All historical information must be requested with an Open Records Request by emailing:

OpenRecordsRequest@hhs.texas.gov Further instructions can be found here: Open Records Policy and Procedures | Texas Health and Human Services

4. Section 7.1 page 12 of 38, states: Upon contract termination, the Contractor shall remove all vending machines and equipment from the facility within ten (10) business days and restore the affected locations to their original condition…We and the vending industry have observed the established, long standing (for over 20 years) "30 day Usual and Customary” period for the installation and or removal of vending machines – the SOW states ten days to remove 36 machines is an insufficient/inadequate amount of time – can this be changed or amended to read thirty (30) days?

No. 10 business days still applies.

mailto:OpenRecordsRequest@hhs.texas.gov https://www.hhs.texas.gov/about/contact-us/open-records-policy-procedures https://www.hhs.texas.gov/about/contact-us/open-records-policy-procedures

5. Section 7.1.5

7.1.5 Minimum Experience and Qualifications Found

on page 13 of 38, states: b) The awarded Contractor must be located within fifty (50) miles of MSSLC...

Question: Except for 7.1.5 b) we feel our company will exceed the minimum requirements as we are currently and have successfully provided service to the Abilene State Supported Living Center for over eight (8) years

- can this be changed/amended or removed/extricated?

No. 50 miles still applies.

6.

Exhibit C – Pricing Sheet the first 9 questions have the same printing in the color red which reads: Bid Factor Response Required:

Yes what exactly does that mean?

The first nine questions relate to pricing, known as bid factors. They require a numeric value (prices) that will be used to evaluate the submitted bids.

7.

The first General Question is: What is your price of water, per section 7 of the SOW? (and no UOM is shown) – am I to assume that price list called for in section 7 of the SOW where I provide a list of snack and beverage products – are to reflect the UOM of those products? And when I prepare my bid I am to reflect the size or UOM of the water I propose with my pricing for it?

The UOM for Pricing on both Exhibit C and requested beverage/snack list should be each.

8.

first entry on the 3rd Exhibit C Pricing Sheet is: What percentage of revenue do you agree to compensate the facility after sales tax for all vending machines – If I am following the instructions guidelines laws and mandates of the “TEXAS Health and Human Services, Uniform Terms and Conditions – Vendor, Version 3.4, effective: November 2023, (specifically) ARTICLE II.

PAYMENT PROVISIONS - 2.4 TAXES Purchases made for State of Texas use are exempt from the State Sales Tax and Federal Excise Tax”, – then why does it ask to pay or suggest I am to pay sales tax?

Depending on your company's setup with the Texas Secretary of State, you may be required to pay sales tax. If your company is exempt from sales tax, then it does not apply.

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C:\Users\Fnesbitt01\Pictures\Saved Pictures\HHS Branding\HHS Color Logo.png

Effective 07/15/2016 Revised 01/23/2024

Procurement and Contracting Services, 1100 W. 49th Street, Austin, TX 78756

Form

PCS 121

SOLICITATION ADDENDUM ACKNOWLEDGEMENT FORM

Solicitation Due Time

PCS Contact Information

Description of Addendum

THIS ADDENDUM NOW BECOMES A PART OF THE ORIGINAL SOLICITATION RETURN ADDENDUM ACKNOWLEDGMENT FORM AS INSTRUCTED, FAILURE TO DO SO MAY RESULT IN DISQUALIFICATION OF RESPONSE.

1.

Acknowledge receipt of this addendum by signing and returning this addendum with your solicitation response in accordance with the submission options outlined in the solicitation.

2.

If respondent has submitted the response prior to addendum, respondent may email the signed addendum to pcsbids@hhsc.state.tx.us prior to the solicitation due date and time.

9.0.0.2.20101008.1.734229 a.m.

CurrentPage:

TextField28: aaron.mcknight1@hhs.texas.gov

DueDate: March 05, 2025

Minute: 30

Hour: 10

AddendumNo:

AddendumDate: 2025-02-27

TextField30: 512-776-3352

TextField32: Solicitation Q&A

Associate Commissioner, PCS:

DateTimeField1:

TextField31:

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