Exception Tracking Spreadsheet San Diego Police Equip Ver I- 4-10-25.xlsx

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Offeror RFP Section Page Number What is in the RFP The Exception Recommendation and Date

1 San Diego Uniform Instructions 15 6.9 Financial Stability. You must be able to substantiate your financial stability to State’s satisfaction as a precondition of any contract award. Procurement Officer may require documentation such as current and audited financial statements, including income and balance sheets, directly from you or may obtain reports from independent financial rating services. Not providing the evidence will be grounds for Procurement Officer determining your Offer is Not Susceptible for Award. Upon request, financial documents may be held confidential under A.R.S. § 41-2540(B). Alternate language: Provide financial references in lieu of financial reports. Rationale: Financial statements will not be provided. San Diego Police Equipment Co. Inc. is not a public company, has no debt and therefore has no reason to obtain audited financial statements. For more than 30 years we have held contracts with the State of Arizona, several other states, numerous cities and counties, with no financial issues. Instead of audited finances, we can provide references that will attest to our payment history and financial stability. 4-10-25: Uniform instructions just as the State's Uniform T's &C's cannot be modified. However, for privately owned company's all that is required is a recent balance sheet marked as "confidential" . Any confidential financial information provided will not be uploaded in APP or available for a public records request.

2 San Diego Uniform Instructions 15 6.7 Cost or Pricing Data. Offerors shall promptly submit any cost or pricing data that Procurement Officer requests under A.R.S § 41-2543 per A.A.C. R2-7-702(B)(2). Procurement Officer may determine any of the following: 1.1.1. Offer is rejected for failure to submit requested pricing data within the designated time frame under A.A.C. R2-7-704; 1.1.2. Submitted cost or pricing data demonstrates that pricing is fair and reasonable under A.A.C. R2-7-702(A); or, 1.1.3. Cost or pricing data is not defective under A.A.C. R2-7-705. Alternate language: Rationale: A factory price list will be supplied, however, our exact cost will not be provided as it is confidential information. 4-10-25: Uniform instructions just as the State's Uniform T's &C's cannot be modified. There is no request for offeror to provide cost data. If or when price modifications are requested, adequate justification will need to be provided.

3 San Diego Scope of Work 6 2.1.2.3 Price List/ Catalog Discounts The Contractor is to offer prices for all other products available for purchase based on a percentage(%) off discount on a referenced manufacturer's price list or catalog. Price lists/ catalog shall be made available in both electronic and hard copy formats upon request from an eligible user of the contract. An accessible website that contains a downloadable Price List/ catalog or an interactive web Price List/ catalog shall also be available for use by eligible users of the contract. Alternate language: Provide a price list for other products available for purchase. Price list will be provided upon request. Rationale: A manufacturer's price list will be provided, however a percentage discount will not be used. Our discount varies by product type, ie duty ammunition vs training, pistol vs rifle vs shotgun, etc. Therefore, a price list will be provided showing actual prices that allow for the best pricing in each category. Also, the price list will be emailed upon request, not provided on a website. 4-10-25: There will be no modification to the Scope of Work

4 San Diego Special T's & C's 14 3.2 Contract Extensions. State may at its discretion extend the initial Contract term in increments of one (1) or more months and do so one or more times, provided that the maximum aggregate term of the Contract including extensions cannot exceed the maximum aggregate term of four (4) years. Alternate language: Contract may be extended by mutual agreement between State and Contractor. Rationale: If the State decides to reject a price increase, contractor must have the right to refuse the contract extension. 4-10-25: Yes, modification for extensions by mutual agreement is approved.

5 San Diego Special T's & C's 18 3.10.2 Contractor shall sell to Co-Op Buyers at the same price and on the same lead times and other terms and conditions under which it sells to Eligible Agencies, with the sole exception of any legitimately additional costs for extraordinary shipping or delivery requirements if the Co-Op Buyer is having Materials delivered or installed or Services performed at locations not contemplated in the contracted pricing (e.g. delivery to a location outside Arizona). Alternate language: Contractor shall sell to Co-Op Buyers located in the State of Arizona. Rationale: Our pricing for this contract is limited to orders shipped to the State of Arizona. We will not offer contract pricing to agencies outside of Arizona. 4-10-25: No change to the Special T&C. Contract is for the State of Arizona.

6 San Diego Special T's & C's 21 Contractor's Best Pricing. Contractor warrants that, for the term of the Contract, the prices and discounts set out in the Attachments titled BPM005996 Pricing Document, including any subsequent a reed amendment to it (the "Contract Pricing"}, shall be equal to or better than the lowest prices and largest discounts, both separately and in combination, at which Contractor sells equivalent services, items of equipment, and materials. 4.2.1. That price- plus-discount equivalence ("Contractor's Best Pricing") is intended to be irrespective of whether or not those other sales have special purchase terms, conditions, rebates, or allowances Alternate language: None. We request that this section be removed. Rationale: San Diego Police Equipment Co. Inc. will not guarantee that this is the best pricing, or be equal to or better than the lowest prices and largest discounts at which similar items are sold. Each contract we bid is unique, with its own terms, conditions, length and operating costs for the contract. We are also provided special pricing from the manufacturer for each individual bid and that fluctuates based on the contract terms, but also general market conditions at the time of bid. For example, a year old contract is likely to have lower prices than a new contract simply due to inflation. We have done our best to offer a fair price based on the contract conditions, but we will not offer lower pricing to match a different contract. 4-10-25: No change to the Special T&C. This is a standard term for all of the State's contracts.

7 San Diego Special T's & C's 22 4.4 Price Increase. The State may review a fully documented request for a price increase. The requested increase shall be in writing and be based upon a cost increase to the Contractor that was clearly unpredictable at the time of the offer and is directly correlated to the price of the product concerned. Contractor must provide conclusive evidence of a need for any price increases. Alternate language: Price increases will be allowed annually at the time of contract renewal by mutual agreement. Rationale: The special pricing we have received from the manufacturer is valid for one year, as they typically have annual price increases. As a distributor, we have no control over the manufacturer's need, or reasons, for a price increase. If the manufacturer has aprice increase, we are simply asking to increase prices on a pass through basis, without an increase in profit margin. 4-10-25: If or when price modifications are requested, adequate justification will need to be provided at that time .No change to the Special T&C.

8 San Diego Special T's & C's 22 4.4.1. Initial Contract prices shall be honored for one year after award of Contract. Same as above 4-10-25: No change to the Special T&C.

9 San Diego Special T's & C's 22 4.4.2. The State needs sufficient time to make a fair and equitable determination in response to any Contractor requests for price adjustments. As a result, the State requests that the Contractor provide ninety (90) days advance notice prior to any price adjustment whenever possible, and at a minimum, sixty (60) days advance notice. Requests sent to the State with less than sixty (60) days notice will be denied, unless the Contractor provides proper documentation demonstrating the urgency of the request. The State shall determine whether the price increase is in the best interest of the State. Same as above 4-10-25: No change to the Special T&C.

10 San Diego Special T's & C's 22 4.4.4 State expects Contractors to use Lean Six Sigma principles to reduce costs in their supply chain, and not simply pass newcosts on to the State. If a price increase is requested, State will ask for evidence that Lean Six Sigma principles and tools have been used by Contractor to attempt to reduce costs in advance of any request for a price increase under the Contract. Alternate language: None. Please remove this section. Rationale: We are a distributor, not the manufacturer. We have no control over the manufacturer's supply chain or production process. 4-10-25: Offeror in their "Method of Approach" response, provided steps which included "Continuous Improvement" in their approach to customer service. No change to this Special T&C.

11 San Diego Special T's & C's 32 12.12.4.2 If a prospective Co-Op Buyer outside Arizona wishes to order against the Contract, Contractor agrees to negotiate in good faith any fair and reasonable price or lead time adjustments necessary to serve that location if practicable to do so within the scope of its normal business; Alternate language: None. Please remove this section.Rationale: Our pricing from the manufacturer is only valid for agencies located in Arizona. We will not offer contract pricing outside of the state. 4-10-25: This contrcat is intended for State of Arizona only. Yes, agree to remove.

12 San Diego Special T's & C's 32 12.13 Conditions at Delivery Location Alternate language: Please remove requirement to deliver at locations other than the ground floor. Rationale: Due to the heavy weight, freight carriers will not deliver palletized shipments of ammunition above (or below) the ground floor. For palletized shipments, delivery upstairs/downstairs will not be provided. 4-10-25: No change to this Special T&C.

13 San Diego Special T's & C's 35 1.3.2 Business Automobile Liability Alternate language: Please remove these requirements. Rati ale: All deliveries will be made via common carrier and SDPECI does not own any company vehicles. Therefore we do not maintain Automobile insurance. 4-10-25: Standard State Insurance requirment. No Change

14 San Diego Special T's & C's 35 1.3.3 Workers' Compensation and Employers' Liability Regarding workers compensation, SDPECI does not have a location or employees located in Arizona. Therefore we do not maintain workers compensation for the state. Further, no work is being done on state property, only deliveries via common carrier. 4-10-25: Standard State Insurance requirment. No Change

15 San Diego Special T's & C's 24 4.8.4 Submitting Invoices. Contractor shall submit an invoice to the ordering Eligible Agency or Co‑Op Buyer using the form and/or process required by the ordering Eligible Agency or Co-Op Buyer. Every invoice must be signed by Contractor’s authorized representative and accompanied by all supporting information and documentation required by the Contract and applicable laws Alternate language: Remove requirement that invoices must be signed. 4-10-25: Standard requirement to confirm receipt of product. No Change

16 San Diego Special T's & C's 24 4.8.2.15 Taxes (as a separate invoice line item), including the percentage used to calculate taxes; Alternate language: Remove requirement for percentage used to calculate taxes. Rationale: The tax amount will be included on invoice, but due to software limitations, the percentage will not be listed. 4-10-25: Standard requirement. No Change. If Offeror's software cannot provide, then a manual process will be needed to provide this information. By law, the State cannot pay invoices that are not correct.

17 San Diego Special T's & C's 30 12.5 Current Products. Contractor shall keep all products being offered under the Contract: (a) in current and ongoing production; (b) in its advertised product lines; (c) as models or types that are actively functioning in other paying customer environments; and (d) in conformance to the requirements of the Contract. Alternate language: Please remove this section. Rationale: As a distributor, not the manufacturer, we cannot control what items the manufacturer may discontinue or change. 4-10-25: Standard requirement. No Change. If a product is modififed and or discontinued, Offeror to inform State of this activity.