TEXAS DEPARTMENT OF TRANSPORTATION

STATEMENT OF WORK

TxDOT 962-27-53037 Dated: May 2026

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DOCUMENT DESTRUCTION

PUBLICATION

This statement of work (SOW) is a product of the Texas Department of Transportation (TxDOT).

This SOW may not be sold for profit or monetary gain. If this document is altered in any way, the header and any and all references to TxDOT must be removed. TxDOT does not assume nor accept any liability when this SOW is used in the procurement process by any other entity.

1. SCOPE:

This SOW is to provide services for secure destruction of documents and devices that prevent the disclosure of state records and personal information and are performed away from the Customer's premises (non-mobile document destruction) for Houston, Austin, and San Antonio not currently covered under CPA Managed Contract# 962-S1.

2. LOCATION(S):

Are specified on the Pricing Schedule. TxDOT reserves the right to add or delete facilities serviced under the contract. TxDOT will provide 10 calendar day(s) written notice to the vendor for locations to be deleted or of any additional locations requiring service within the same area or region.

3. DEFINITIONS OF TERMS AND ACRONYMS:

3.1. Contract - Any Purchase Order (PO) or Blanket Purchase Order (BPO) resulting from this solicitation as listed in the Order of Precedence in the resulting PO or

BPO

3.2. POC - Point-of-Contact

3.3. TxDOT - Texas Department of Transportation

3.4. TxDOT POC - TxDOT Point of Contact

3.5. EPO - Emergency Purchase Order

3.6. SOW - Statement of Work

3.7. 45 -Day Notification - Notification to the IRS that an entity intends to release federal tax information to a contractor, made at least 45 days before the release in order to comply with IRS Pub. 1075.

3.8. Business Day - A calendar day that is not a weekend or state holiday.

3.9. Business Hours - 8:00 a.m. to 5:00 p.m. on a Business Day.

3.10. Contract - The Contract between CPA and WorkQuest signed in June, 2020.

3.11. Customers - TxDOT requester of services.

3.12. Destroy or Destroyed - The rendering of paper records and other material so that the information it contained can no longer be viewed, in conformity with the standards set forth in the applicable section of this Specification.

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3.13. Document - A written or printed instrument that conveys information that is placed in a Secure Container.

3.14. Electronic Equipment - Includes: Electronic Waste, Hard Drives, Media, network switches, routers, phone systems, Universal Power Supply (UPS) and Visual Display Units.

3.15. Electronic Waste (e-waste)- Electronic devices - excluding Hard Drives, Media, Visual Display Units, alkaline or lithium batteries, and toner cartridges - that are obsolete due to technological advances or malfunction, including: computers, computer components, servers, flat panel monitors, printer, copiers, scanners, wiring/cabling, telephones switches/handsets, projectors, recording devices, audio/video equipment, and cellphones.

3.16. Economically Feasible - A determination that the benefits of an action outweigh its costs.

3.17. FTI - Federal Tax Information.

3.18. Hard Drives - Non-volatile, random-access devices for storing digital data found in many electronic devices including computers, servers, copiers and scanners.

3.19. IRS - Internal Revenue Service

3.20. Materials -Any items to be Destroyed under this SOW including, but not limited to, Documents, e-waste, and Non-Traditional Items.

3.21. Media -Any media including, but not limited to, microfilm, microfiche, CDs, floppy disks, cassette tapes, VHS, film and reel-to-reel tapes.

3.22. NAID - National Association for Information Destruction

3.23. Non-Traditional Items - Items, other than paper, plastic, ore-waste, requiring destruction and/or recycling due to the presence of logos, expired program or benefit information and/or other Customers identifying information.

3.24. Secure - Administrative, technical and physical safeguards to ensure the security and confidentiality of records and to protect against any anticipated threats or hazards to their security or integrity which could result in substantial harm, embarrassment, inconvenience, or unfairness to any individual on whom information is maintained.

3.25. Secure Container - A locked bin or receptacles, into which Documents are placed. Under some circumstances and as agreed between TxDOT and Customer, boxes or other bulk packages (e.g. boxes palletized and shrink wrapped) may be included in this definition.

3.26. Standard Fee Schedule - A listing of fair market value prices for contract items set by the Texas Workforce Commission.

3.27. Subcontractor - Any entity other than vendor, that provides services under this SOW, such as authorized service providers and providers of temporary staffing or transportation, whether that entity has a contract with TxDOT or another Subcontractor.

3.28. TWC- The Texas Workforce Commission

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3.29. TxDOT - Texas Department of Transportation

3.30. Work Order - A document generated by TxDOT stating the Work to be carried out to fulfill a Purchase Order.

3.31. WorkQuest - WorkQuest, INC

3.32. Visual Display Unit - A non-flat panel television or computer monitor.

3.33. Zero Landfill Impact - The amount of material sent to a landfill is minimal or none.

4. APPLICABLE LAWS AND STANDARDS:

The vendor shall provide the specified service requirements in accordance with all federal, state, and local applicable laws, standards, and regulations necessary to perform the services, including, but not limited to:

4.1. IRS Publication 1075

4.2. HIPAA Privacy Rules (45 CFR 164.530(c))

4.3. Internal Revenue Manual (IRM) 1.15 .3

4.4. Texas Government Code Chapter 441, Subchapter L

4.5. Texas Local Government Code Section 202.003

4.6. Texas Administrative Code, Title 13, Chapter 6

4.7. Texas Administrative Code, Title 13, Chapter 7

4.8. 4.8. Compliance with this section may require participation in Business

Associate Agreements (BAAs) as they relate to the Health Insurance Portability and Accountability Act of 1996.

4.9. Receipt of Federal Tax Information (FTI)

4.10. Denial of Service-45 Day Notification Letter

4.11. IRS Approval of Disclosures to Subcontractors

4.12. Additional Federal and State Requirements

5. HISTORY OR BACKGROUND:

Not Applicable

6. CURRENT ENVIRONMENT:

Sixty counties (including the Houston, Austin and San Antonio areas) that were previously served through WorkQuest 962-S1 require replacement secure destruction services for immediate needs.

7. VENDOR QUALIFICATIONS:

The vendor must:

7.1. Be a company or an individual engaged, or whose partners are engaged in the business of providing secure destruction services for a minimum of three years within the past five years. Years of experience of an individual(s) or partner(s)

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7.2. Have and maintain a current NAID AAA certification. See:

https://naidonline.org/certifications/

7.3. Notify of any change in NAID AAA status, including the loss of certification or any audit finding that could result in loss of certification, while providing services under this Specification within three Business Hours of the change in status.

Notification must be provided to TxDOT via e-mail.

7.4. Ensure all personnel handling the Documents have undergone and passed a background check to be able to handle secure Materials as required by NAID AAA Certification standards.

7.5. Ensure confidentiality agreements signed by all personnel employed.

7.6. Provide comprehensive, in-service training to their employees regarding the handling of Materials.

8. VENDOR PERSONNEL QUALIFICATIONS AND RESPONSIBILITIES:

The vendor must provide the following personnel with the listed qualifications:

8.1. Personnel must have a minimum of two years' experience within the past three years in the services identified in the Scope of Work.

8.2. Be a permanent staff employee and serve as a constant primary point of contact for TxDOT.

8.3. All personnel who will be driving to and from TxDOT work locations must:

8.3.1. Possess a valid driver license acceptable in the state of Texas.

8.3.2. Have no Driving Under Influence (DUI) or Driving While Intoxicated (DWI) incidents on driving record within the past three years.

8.3.3. Have no more than two moving violations on driving record within the past three years.

NOTE: TxDOT reserves the right to request proof of qualifications.

9. SERVICE REQUIREMENTS:

The vendor must:

9.1. Provide all required safety equipment and instruct personnel to observe all safety policies, rules, and requirements at all times.

9.2. Provide a primary POC.

9.3. Conduct driver license checks annually on vendor staff that drive to and from

TxDOT work locations to verify compliance.

9.4. Provide an updated list of all vendor personnel or subcontractors at each job site and comply with all security measures required by TxDOT.

9.5. Ensure personnel do not use personal multi-media devices while performing https://naidonline.org/certifications/

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9.6. Conduct background checks using statewide DPS, Texas, and out-of-state county equivalent verification of criminal and sex offender background checks on all vendor's permanent and temporary personnel scheduled to work on TxDOT projects prior to beginning service start-up. Upon award, supporting documentation confirming the completion of these comprehensive background checks may be subject to review upon request by TxDOT or the TxDOT designee, or both, prior to beginning the service. Failure to produce the requested documentation may be cause for cancellation of the contract.

Background checks must be within the last year of contract execution date and must be completed on any new employees throughout the life of the contract.

The background checks must include, but not be limited to, the following:

9.6.1. Social Security number verification.

9.6.2. Statewide criminal and sex offender records for all Texas counties and out-of-state county equivalents based on the current and previous addresses of the applicant for the past seven years.

9.7. Begin work within 10 business days after the issuance of written authorization from the authorized TxDOT representative.

9.8. Be responsible for TxDOT security badges issued to vendor's personnel and reimburse TxDOT for the cost of badges lost or not returned, at no additional cost to TxDOT. The designated TxDOT representative will notify the vendor of the amount to be reimbursed.

9.9. Wear a clearly visible identifying name badge or uniform with the company logo.

9.10. Reference Attachments “A” Additional Service Requirements

10. MATERIALS OR PARTS PRICING:

Not Applicable

11. MISCELLANEOUS EQUIPMENT:

Not Applicable

12. VENDOR DELIVERABLES:

Not Applicable

13. PROJECT SCHEDULE:

Not Applicable

14. WARRANTY REQUIREMENTS:

14.1. PERFORMANCE WARRANTY: Work performed under the contract must meet all applicable standards and codes. The vendor must guarantee all work included in the contract against any defects in workmanship and satisfactorily correct, at no cost to TxDOT, any such defect that may become apparent within a period of one year after completion of work. The warranty period shall commence upon date of acceptance by TxDOT.

15. VENDOR PERFORMANCE:

Vendor performance will be monitored on a regular basis by TxDOT.

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15.1. An unsatisfactory performance determination includes, but is not limited to:

15.1.1. Unable to meet requirements imposed by TxDOT related to state or federal law.

15.1.2. One service "call back" to correct the same problem within 30 calendar days.

15.1.3. Not having all Materials secured in approve facility

requirements Reference Attachment "A" Additional Service Requirements.

NOTE: Unsatisfactory performance may result in a negative vendor performance report, or cancellation of the contract or both, in addition to any other rights, liquidated damages and remedies provided by the contract or allowed by law.

15.2. An exceptional performance determination includes, but is not limited to:

15.2.1. Product upgrade substitution suggested and accepted at no additional cost to TxDOT.

15.2.2. Vendor commended for exceptional customer service; exceptional service provided.

16. CONTRACT REMEDIES:

Vendor must be responsible for compensating TxDOT for a container that is either lost or damaged to the point that it can no longer safely or effectively be used for its designated purpose. Compensation will be due to TxDOT if the loss or damage to the container was sustained while it was under the control of the vendor. Any compensation paid to TxDOT must not exceed the cost to replace a lost or damaged container.

17. PERSONNEL CONTINUITY AND REPLACEMENT:

17.1. The Personnel must remain available for the entire term of the contract as long as that individual is employed by the vendor.

17.2. TxDOT recognizes that events beyond the control of the vendor such as the death, physical or mental incapacity, long-term illness, or the voluntary termination of employment of the and Personnel will require the vendor propose a replacement. Vendor must notify TxDOT within 24 hours after the vendor is made aware of such a situation.

17.3. Proposed replacement personnel must:

17.3.1. Be submitted to TxDOT within 7 calendar day(s) of notification resulting from sub-paragraphs 17.1 or 17.2 above.

17.3.2. Meet minimum qualifications and have experience comparable to the person(s) being replaced. Resume(s) and reference(s) may be requested for the proposed replacement(s).

17.3.3. Be provided at no additional cost to TxDOT.

17.3.4. Not begin work on the project without prior written approval from TxDOT.

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NOTE: TxDOT may reject any replacement if references or past working performance is questionable or unfavorable. TxDOT will be the sole judge of the qualifications of the proposed replacement personnel.

18. QUALITY ASSURANCE PLAN:

Not Applicable

19. BUSINESS CONTINUITY AND DISASTER RECOVERY PLAN:

Not Applicable

20. TRAVEL:

All travel and per diem must be included in the unit price.

21. MOBILIZATION:

Not Applicable

22. TRIP CHARGE:

Not Applicable

23. ADDITIONAL INVOICING INSTRUCTIONS:

The vendor must:

23.1. Invoice in accordance with Paragraph 4.03 of the Terms and Conditions attached and include the additional information listed below:

23.1.1. Include the Certificate of Destruction with the serial numbers of devices that were destroyed.

23.1.2. Facility name and location

23.1.3. Number and size of receptacles (quantity and size of boxes, bins, etc.)

23.1.4. Material type (paper, microfilm, devices etc.)

23.1.5. Customers that release FTI to TxDOT under this Specification must submit a 45-Day Notification Letter to the IRS prior to releasing FTI.

(Exhibit 6 of IRS Publication 1075.)

24. TxDOT RESPONSIBILITIES:

TxDOT will:

24.1. Provide a contract manager.

24.2. Provide a POC.

24.3. Monitor vendor performance.

24.4. Provide a Requestor POC.

24.5. Be responsible of all Materials until removed from TxDOT premises by vendor.

24.6. Provide TxDOT security badges to vendor's personnel assigned to perform the service (Ref. Para. 9.8. -9.9.).

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24.7. Document all pickups of containers, boxes or other Materials by issuing a descriptive work order, with unique work order number, that will be signed and dated. The work order must include the customer's name, point of contact, and contact information. It should specify the pickup date and location, and describe the Materials picked up.

24.7.1. The work order will be proof of the transfer of Material to vendor and support the invoice. Any invoice not substantiated by a signed work order is invalid.

25. TRANSITION OF TxDOT PROPERTY:

Not Applicable

26. CONTRACT ADMINISTRATION:

Administration of the contract is a joint responsibility of the TxDOT contract manager and TxDOT purchasing staff. Purchasing staff will be responsible for administering the contractual business relationship with the vendor.

26.1. Any proposed changes to work to be performed, whether initiated by TxDOT or the vendor, must receive final written approval in the form of a Purchase Order Change Notice signed by the authorized TxDOT purchasing staff.

26.2. Upon issuance of contract, TxDOT will designate an individual to serve as the contract manager and POC between the agency and the vendor. The contract manager does not have any express or implied authority to vary the terms of the contract, amend the contract in any way, or waive strict performance of the terms or conditions of the contract. This individual's contract management responsibilities include, but are not limited to:

26.2.1. Monitoring the vendor's progress and performance and ensuring services conform to established specification requirements.

26.2.2. Managing the financial aspects of the contract including approval of payments.

26.2.3. Meeting with the vendor as needed to review progress, discuss problems, and consider necessary action.

26.2.4. Identifying a breach of contract by assessing the difference between contract performance and non-performance.

26.2.5. Other areas as identified by the State of Texas Procurement and Contract Management Guide version 4.0.

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Attachment A –Additional Service Requirements

1. Provide secure document destruction for customers. Vendor must:

1.1. Regular Pick-up:

1.1.1. Work with TxDOT to establish pick up times.

1.1.2. Destroy all Materials collected during regularly scheduled pickups within three Business Days from pickup.

1.1.3. Pick up Secure Containers or boxes on pallets from each

TxDOT location at an agreed upon time and date.

1.1.4. TxDOT will schedule regular pickups and will not deviate from stated schedule without prior approval unless state or national holidays.

1.1.5. Provide TxDOT with certificates of destruction for all

Materials Destroyed under this SOW with each month’s invoice.

1.2. Destruction Deadline Outside Regular Pickup:

1.2.1. Destroy any Materials collected outside regular pickup no later than 15 Business Days after acceptance from the customer’s premises.

1.2.1.1. Customer may provide a written waiver of this

deadline and authorize later destruction.

2. Facility Requirements: Facility requirements apply to all facilities used for collection, storage, and destruction under this SOW.

2.1. Physical Security: Facilities must be equipped with standard physical security measures which include active barriers to entry such as perimeter fencing, secure dock doors, and single-entry points.

2.2. Physical Security Protocols: Physical security protocols for facilities must be active from the time Materials arrive until Materials have been

Destroyed.

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2.3. Alarm Systems: Facilities must be equipped with electronic alarm systems capable of detecting and alerting the user to specific dangers including intrusion and fire. Alarm systems must be monitored by a third-party vendor with clear protocols for whom to contact and when the local authorities are to be dispatched to the site for inspection.

2.4. Security Monitoring Systems: Facilities must be equipped with electronic security monitoring systems capable of monitoring, recording, and storing images of people and objects in the facility.

2.5. Activation of Alarm and Security Monitoring Systems: At a minimum, alarm systems and security monitoring systems must be activated when the facility is not in operation.

2.5.1. Must provide proof of regular testing of these systems upon request.

2.6. Restrictions on Visitors: The facility operator must meet or exceed the protocols established under its NAID Certification in regard to allowing visitors into the areas that contain Materials that have not been

Destroyed.

2.6.1. All visitors must sign a confidentiality agreement before entering any facility.

2.7. Restrictions on Devices: No cell phones, smart phones, cameras, or any other recording or transmission devices into destruction areas or areas that contain Materials that have not been Destroyed.

3. Document Destruction Requirements:

3.1. Secure Containers, Vehicles, and Facilities: TxDOT will enclose

Documents already contained in a Secure Container within a securely enclosed vehicle at the time of removal to offsite destruction facility. Any boxes of Documents should be transported on pallets and shrink-wrapped or loaded into Secure Containers before removal from

Customers location.

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3.2. Document Destruction Standard: Destroy Documents by shredding to 5/8 of an inch or smaller as specified by the Customers. TxDOT may propose an alternate destruction method, subject to approval by

Customers and CPA.

3.3. Post-Shredding: Ensure that Documents Destroyed under this SOW are sold directly to a domestic paper mill. TxDOT shall obtain an additional certificate of destruction from the paper mill and make it available to

Customers and CPA upon request.

4. Electronic Equipment Destruction:

4.1. Electronic Equipment Destruction Requirements: must completely

Destroy each Electronic Equipment item so that it can no longer be utilized in its original form or for its intended purpose.

4.2. Electronic Equipment Recycling: If economically feasible, TxDOT must recycle Electronic Equipment such that there is zero landfill impact. All

Electronic Equipment received under this SOW will be Destroyed and smelted, crushed, or shredded with the intended purpose of smelting for precious metal recycling.

4.3. Media & Hard Drive Destruction Standard: must be Destroyed to the degree that any information they may contain is no longer accessible or readable by any means. This destruction must be completed before the

Media or Hard Drive is recycled.

5. Non-Traditional Item Destruction:

5.1. Non-Traditional Items Destruction Standard: must Destroy, crush, or shred all Non-Traditional Items received from Customers with the result of making reuse in its original form or for its intended purpose impossible.

5.2. Recycling of Non-Traditional Items: Non-Traditional Items should be slated for destruction by TxDOT only after it has been determined that the items cannot be recycled through the Texas Facilities

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Commission's recycling program. All Non-Traditional Items should be recycled to the maximum extent possible.

5.3. Landfill Impact: If economically feasible, WorkQuest shall ensure that

Non-Traditional Items have zero landfill impact.