ESBD_418949_1747316972564_1_Part A 304T-25-915M1.1 Presort Mail Services.pdf

9.2-2024 Solicitation No. 304T-25-915M1.1

Page A1

TEXAS COMPTROLLER OF PUBLIC ACCOUNTS

STATEWIDE PROCUREMENT DIVISION

REQUEST FOR PROPOSALS

Presort (Barcode) Mail Services

RFP No. 304T-25-915M1.1

NIGP CLASS-ITEMS

915-57

915-58

963-57

SCHEDULE OF EVENTS

ESBD Posting Date May 15, 2025

HUB Subcontracting Plan Courtesy Review

Submission Deadline Date June 4, 2025

Pre-Bid Conference Date and Time May 21, 2025, at 10:00 am Central Time

Questions Submission Deadline Date May 23, 2025

Response to Questions through Addendum Date, or as soon thereafter as practical May 27, 2025

RESPONSE DUE DATE June 18, 2025

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.14.4 MAY RESULT IN DISQUALIFICATION OF A RESPONSE.

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

ATTACHMENT A - EXECUTION OF RESPONSE

HUB SUBCONTRACTING PLAN – Reference Section A.15

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

ATTACHMENT E – SELF INSURED RENTENTION CERTIFICATION AND REQUEST FOR

APPROVAL (only if the Respondent intends to use SIR)

PROPOSED SOLUTIONS – Reference Part A.17.5.

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.

SIGNED COPIES OF ALL ADDENDA to this Solicitation, if any

REFERENCE SECTION A.19 AND SECTION A.20 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 WITH ESCALATION

A.4.2 PRICING STRUCTURE – USPS DISCOUNTED POSTAGE RATES

A.5 USPS DISCOUNTED RATE ADJUSTMENTS

A.5.1 PRICE DECREASE OR DISCOUNT INCREASES

A.5.2 DISCOUNT RATE ADJUSTMENTS

A.5.3 PRICE ADJUSTMENT CALCULATION

A.5.4 PRICE ADJUSTMENT REQUESTS

A.5.5 TARIFFS

A.6 INSURANCE

A.7 CUSTOMER RESPONSIBILITIES

A.7.1 POSTAGE

A.7.2 REPORTING

A.8 CONTRACTOR PERSONNEL, VEHICLES, AND EQUIPMENT REQUIREMENTS

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 PRESORT (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 PLAN

A.9.15 QUANTITIES

A.10 CONTINGENCY SERVICE PLAN FOR CUSTOMERS

A.11 SHIPPING, DELIVERY, AND PACKAGING

A.11.1 IDENTIFICATION OF SHIPMENTS AND DOCUMENTATION

A.11.2 PICK UP DELAYS

A.12 SHIPPING, DELIVERY, AND PACKAGING

A.12.1 IDENTIFICATION OF SHIPMENTS AND DOCUMENTATION

A.12.2 PICK UP DELAYS

A.12.3 HOURS OF PICK UP

A.12.4 COMPLIANT PRODUCTS

A.13 PURCHASE ORDERS, INVOICES AND REPORTING

A.13.1 CUSTOMER PURCHASE ORDERS

Page A4

A.13.2 INVOICES AND EXPEDITED PAYMENT DISCOUNTS

A.13.3 REPORTING REQUIREMENTS (MANAGED)

A.13.4 STATEWIDE CONTRACT DEVELOPMENT REPORTING

A.14 RESPONSE INFORMATION

A.14.1 SCHEDULE OF EVENTS

A.14.2 SOLICITATION ADDENDA

A.14.3 QUESTIONS AND ANSWERS

A.14.4 POINTS OF CONTACT

A.14.5 PRE-BID CONFERENCE

A.14.6 DOCUMENTS AND ATTACHMENTS INCLUDED WITH THIS SOLICITATION

A.15 HUB SUBCONTRACTING PLAN

A.16 DISCLOSURE OF INTERESTED PARTIES

A.17 EVALUATION OF RESPONSE

A.17.1 RESPONSIVENESS

A.17.2 RISK OF NON-PERFORMANCE

A.17.3 TIES

A.17.4 EVALUATION PROCESS

A.17.5 EVALUATION FACTORS

A.18 AWARDS

A.18.1 AWARD APPROACH

A.18.2 NON-AWARD

A.18.3 AWARD NOTICE

A.18.4 SUBSTITUTIONS

A.19 ORGANIZATION OF THE RESPONSE FOR SUBMISSION

A.19.1 CONFIDENTIAL/PROPRIETARY INFORMATION

A.19.2 ATTACHMENT A - EXECUTION OF RESPONSE

A.19.3 ATTACHMENT B - RESPONDENT INFORMATION

A.19.4 ATTACHMENT C - PREFERENCES

A.19.5 ATTACHMENT D – INSURANCE STATEMENT OF INTENT

A.19.6 ATTACHMENT E – SELF INSURED RETENTION CERTIFICATION AND REQUEST FOR APPROVAL

A.19.7 PROPOSED SOLUTIONS

A.19.8 HUB SUBCONTRACTING PLAN (HSP) - REFERENCE SECTION A.15

A.19.9 MANDATORY PRICE SHEET

A.19.10 NEGOTIATIONS, ASSUMPTIONS, AND EXCEPTIONS

A.19.11 SIGNED ADDENDA TO SOLICITATION

A.20 SUBMITTING THE RESPONSE TO CPA

A.20.1 ELECTRONIC SUBMISSION (PREFERRED)

A.20.2 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 presort

(barcode) mail services.

A major customer for these items 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 issued by CPA and automatically expires on August 31, 2026.

1st Renewal Option: September 1, 2026, through August 31, 2027

2nd Renewal Option: September 1, 2027, through August 31, 2028

3rd Renewal Option:

4th Renewal Option:

September 1, 2028, through August 31, 2029

September 1, 2029, up to one (1) additional year

CPA may unilaterally renew the Contract.

A.4 PRICING

A.4.1 Pricing Structure – Firm Price with Escalation

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.4.2 Pricing Structure – USPS Discounted Postage Rates

The rates must be based on the then current published USPS presort and barcode rates, with discounted rate adjustments based on changes in USPS postage rates in renewal years.

A.5 USPS DISCOUNTED RATE ADJUSTMENTS

A.5.1 Price Decrease or Discount Increases

Contractor must immediately implement any price decrease or discount increase that becomes available. Contractor must notify CPA of price decrease or 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:

A.5.3 Price Adjustment Calculation

Prices may be adjusted annually at time of renewal or at the sole discretion of CPA throughout the term of the Contract upwardly or downwardly when correlated with the index specified below and published by the Bureau of Labor Statistics (BLS).

BLS website: http://data.bls.gov/cgi-bin/srgate

Consumer Price Index: CUUR0000SEEC/Postage and delivery services in U.S. city average, all urban consumers, not seasonally adjusted

Note: Enter the index number in the Series ID box and click Next and “Retrieve Data.”

For a price adjustment request, after the initial contract, the Contractor will calculate the maximum allowable Contract price using the following formula:

Maximum Allowable Contract Price = (Original Awarded Price ÷ Original Index) x New Index, where:

(1) “Original Awarded Price” is the price at which the item was initially awarded to the Contractor;

(2) “Original Index” is the index value for the month and year that Responses to this Solicitation were submitted; and

(3) “New Index” is the index value for the month and year that the price increase request is submitted.

If the Respondent can demonstrate that the price index lags behind costs of performance or does not account for significant costs of performance, Respondent may request CPA to consider other documentation of its cost to perform the Contract, such as quotes or invoices.

mailto:spd.cmo@cpa.texas.gov mailto:spd.cmo@cpa.texas.gov http://data.bls.gov/cgi-bin/srgate

Page A9

CPA may consider cost documentation that in its sole discretion is acceptable. Acceptable cost documentation must at a minimum be (1) clearly related to Contract performance, (2) verifiable by an external or third-party source, (3) certified as complete and accurate by the Respondent, under penalty of perjury, and (4) include the proportion or amount of the respective cost (i.e., fuel is 15% of the total cost or fuel cost is $30.00 of the total cost). CPA may reject cost documentation in its sole discretion.

A.5.4 Price Adjustment Requests

Proposed pricing must remain firm for the initial term of the Contract. After the initial term of the

Contract, price adjustments may be requested based upon the formula in Section A.5.2.

CPA may accept, reject, or negotiate price adjustments. The Contractor will receive written notification from Statewide Contract Management (SCM) documenting action taken, including effective dates, when appropriate.

If a complete, properly submitted price increase request is rejected, the Contractor may request to cancel the Contract for those items covered by the request. CPA may approve or reject item cancellation requests. CPA will specify the effective date of item cancellation in its written notice of approval. Purchase orders dated prior and up to the effective date of approval or cancellation, as applicable, must be honored at the Contract price in effect when issued.

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

A.5.5 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. 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.19.10. 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.

Page A10

Minimum Required Amounts of Insurance Coverage

Type of Insurance Each Occurrence/Aggregate

Any insurance required to be compliant with applicable Federal, State, and Local regulations for the goods or services provided.

Statutory limits

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

$1,000,000 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)

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.

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 of the Contractor’s 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.

Contractor shall submit current certificates of insurance to CPA within five business days of receiving a request from CPA. In its sole discretion, CPA may allow Contractor to satisfy insurance requirements with coverage of a third-party providing goods or services under the Contract, such as products liability coverage provided by a manufacturer, that will provide comparable protection to

CPA and Customers. However, the Contractor shall maintain at least $1,000,000 of commercial general liability coverage for itself.

Page A11

The Contractor must provide proof of coverage. Notices shall be sent to the contact listed in Section

A.14.4, Points of Contact. 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. CPA may, in its sole discretion, accept or reject any SIR in excess of $100,000, and Contractor shall provide any documentation requested by SPD. If the Respondent intends to use SIR, Respondent must complete and return Attachment E - Self Insured Retention Certification and Request for Approval.

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.

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.

Page A12

A.8 CONTRACTOR PERSONNEL, VEHICLES, AND EQUIPMENT REQUIREMENTS

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.

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.

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

Page A13

A.9.3 Presort (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.

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.

Page A14

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.

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.

Page A15

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.

(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.

Page A16

(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 Plan

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).

A.9.15 Quantities

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

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

The estimated volume of postages for one year are:

Letters: 17,531,586

Flats: 729,466

Postcards: 134,038

A.10 CONTINGENCY SERVICE PLAN 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 Service 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

Page A17 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.

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 SHIPPING, DELIVERY, AND PACKAGING

A.12.1 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.12.2 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.12.3 Hours of Pick Up

Unless Contractor obtains prior approval by the Customer, Contractor may not pick up mail outside

Customer’s hours of operation. Contractor may obtain Customer’s hours of operation at time of order.

Contractor may not charge extra for off-hours delivery.

Page A18

A.12.4 Compliant Products

Providing noncompliant goods or services does not constitute delivery. Delivery does not occur until the Contractor delivers goods or services in full compliance with the Contract to the Customer’s address specified on the purchase order, unless delivery is specifically accepted, in whole or in part, by the Customer. Customer will notify the Contractor of the delivery of noncompliant goods. If

Contractor fails to remove the goods from Customer’s property within ten working days, or within a time frame agreed upon by Customer and Contractor, Customer may dispose of them at its discretion and at Contractor’s expense. CPA and the Customer may exercise contractual remedies in connection with late delivery.

A.13 PURCHASE ORDERS, INVOICES AND REPORTING

A.13.1 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.13.2 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.13.3 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.

mailto:tcmo.reporting@cpa.texas.gov

Page A19

c) Contractor must invoice the Customer monthly.

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.13.4 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 A20

A.14 RESPONSE INFORMATION

A.14.1 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.14.2 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.14.3 Questions and Answers

Respondents must send all questions regarding this Solicitation to the CPA Points of Contact identified in Section A.14.4 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.14.4 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.

Page A21

Responses may not be submitted to the CPA Points of Contact. Follow the instructions for Response submission in Sections A.19 and A.20.

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.14.5 Pre-Bid Conference

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

Microsoft Teams

Join the meeting now

Meeting ID: 221 256 507 555 9

Passcode: bg6pn2NQ

Dial in by phone

+1 737-471-3847,,132681151# United States, Austin

Find a local number

Phone conference ID: 132 681 151#

Join on a video conferencing device

Tenant key: txcpa@m.webex.com

Video ID: 111 537 261 3

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 May 20, 2025.

A.14.6 Documents and Attachments Included with this Solicitation

The Solicitation package includes the following documents:

mailto:Jennifer.Walls@cpa.texas.gov mailto:spd.contractdev@cpa.texas.gov mailto:spd.cmo@cpa.texas.gov https://teams.microsoft.com/l/meetup-join/19%3ameeting_OTAyZWE5NGItOWE3YS00MDJhLThiOTUtYjlhMmViMzgyNjA1%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,,132681151 https://dialin.teams.microsoft.com/58d35282-7dff-490c-8e1a-27eb861dcb13?id=132681151

Page A22

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

Attachment E - Self Insured Retention (only if using SIR)

4. HUB Subcontracting Plan

5. Attachment F- Potential Customer List

6. Mandatory Price Sheet in both .xml and .xlsx format (.xml is preferred)

A.15 HUB SUBCONTRACTING PLAN

CPA has identified probable subcontracting opportunities for part or all of the Solicitation. Respondent must complete and return the HUB Subcontracting Plan (HSP) with the Response to be considered responsive. By law, CPA must disqualify Responses received without the HSP.

NIGP

Class/Item Description

962-24 Courier/Delivery Services, Including Air Courier Services

This list is neither mandatory nor exhaustive. Other areas of subcontracting may be more appropriate given the Respondent’s business structure and internal resources.

The HUB utilization goal for this solicitation is:

• 26.0% for services contracts (other than construction or professional services)

A courtesy review of an HSP is available to assist Respondents in providing a complete and responsive

HSP and determine whether any deficiencies exist. Respondents are highly encouraged to take advantage of the courtesy review. To request a courtesy review, submit the completed HSP and all supporting documentation in a PDF format to the Statewide HUB Program by email no later than ten working days prior to Response due date.

Email for Courtesy Review: StatewideHUBProgram@cpa.texas.gov

Email Subject Line: HSP Courtesy Review, Solicitation RFP No. 304T-25-915M1.1, Due Date

June 18, 2025

This courtesy review may only identify possible deficiencies. The final compliance determination will be made on the HSP submitted with the Response. Please contact CPA Statewide HUB Program with any questions regarding HSP compliance at: 1-800-863-5881 or 512-463-5872. The CPA HUB

Program website may be accessed at:

https://comptroller.texas.gov/purchasing/vendor/hub/forms.php

The final HSP must be submitted by the…