Document ID: RFB 758 2100000379 Page: 1

Commonwealth of Kentucky

SOLICITATION

Addenda: No Addenda #:

TITLE: Soft Drinks

Date Issued:

2/23/21 Record Date:

2021-02-23

Solicitation Closes Date:

3/12/21 Time:

13:30

Solicitation No:

RFB 758 2100000379

Online Bidding Prohibited: No

For Information Call:

Daniel Salvato 502-564-5862

Bid Receiving Location:

Bid Receiving

See Terms & Conditions for Bid Submission Instructions

Other KY

Vendor Customer Number:

Vendor Name:

Phone Number:

Fax Number:

Email Address:

Ordering

Address:

City, State, Zip:

Contact Name:

Contact Email:

Contact Phone Number:

Payment

Address:

City, State, Zip:

Contact Name:

Contact Email:

Contact Phone Number:

Ownership Type

__ Sole Proprietorship __ Partnership __ Corporation __ Other_________________________

SIGNATURE OF AUTHORIZED AGENT IS REQUIRED UNLESS RESPONSE

IS SUBMITTED ELECTRONICALLY. FAILURE TO SIGN SHALL RENDER

THE BID INVALID.

Signature X_________________________________________ FEIN#____________________ Date____________

All offers subject to all terms and conditions contained in this solicitation.

Document ID: RFB 758 2100000379 Page: 2

Line Items

Commodity Group: Default

Line CL Description Quantity UOM Unit Cost Line Total or Contract Amnt

1 Soft Drinks 1.00000 EA

Comm Code Comm Description Manufacturer Model # Manuf Part #

39377 Soft Drinks

Extended Description Please download Attachment A Soft Drink Bid Spreadsheet for all requested items. All line items should be bid on the catalog for bid to be valid. In order to submit your bid an amount of one penny should be entered on the commodity line

Shipping Information Various Shipping

See Extended Description

Various KY

Billing Information Various Billing

See Extended Description

Various KY

Document ID: RFB 758 2100000379 Page: 3

Submission Checklist

The following items will be required to be submitted with bid:

Item

ELECTRONIC BID SUBMISSION

Bid responses shall be received by electronic submission in the eProcurement system.

An electronic bid shall be authorized by the proper agent of the firm by the act of submitting it electronically through the eProcurement system.

Bid information MUST be completed online. Response must contain all required information for the Solicitation. A separate Bid Sheet is attached and must be included with the response. Bidders MUST enter $.01 in the Unit Price field as the electronic bid. This is the ONLY pricing that is to be entered electronically. All actual pricing must be on the Bid Sheet.

All bidders MUST be registered in the Commonwealth eProcurement System via the Vendor Self Service System at https://emars311.ky.gov/webapp/vssprdonline3111d/ AltSelfService

Allow 24 – 48 hours to complete Vendor Registration. Vendors must be logged in to their Vendor Self Service (VSS) account in order to submit a response. Registrations completed the day of bid closing must be completed by the Vendor in the VSS portal.

The Customer Resource Center is not able to complete registrations and activate accounts on the same day. Closing dates will not be extended for Vendors not registered by the date/time of the bid closing. Vendor Self Service Registration Guides are provided at https://finance.ky.gov/services/eprocurement/Pages/doingbusiness.aspx

All bidders are cautioned to begin their electronic submission in sufficient time to complete before the closing date and time. Delays due to technical difficulties or document upload impediments shall not be justification for acceptance of a late bid or proposal. Vendor attention to this advisory is encouraged. If you need assistance, please contact the Customer Resource Center (CRC) by email at Finance.CRCGroup@ky.gov or phone 502-564-9641 or toll-free 877-973-HELP (4357).

Online bid responses must be in an “Accepted” status and shall be assigned a date and time stamp from the eProcurement system at the time of final acceptance and formal submission by the vendor. The system will not allow submission of an online response after the published date and time for closing.

An offer may be modified or withdrawn by electronic or written notice ONLY if received prior to the bid closing date and time. An electronic offer may be modified by applying the appropriate electronic signature and following the procedure in the state’s eProcurement signature.

Document Description Page 4

2100000379 Soft Drinks https://emars311.ky.gov/webapp/vssprdonline3111d/AltSelfService https://emars311.ky.gov/webapp/vssprdonline3111d/AltSelfService https://finance.ky.gov/services/eprocurement/Pages/doingbusiness.aspx mailto:Finance.CRCGroup@ky.gov

The following items MUST be submitted prior to award:

_____REVENUE FORM 10A100 KENTUCKY TAX REGISTRATION APPLICATION

(see Section 37)

_____CERTIFICATE OF AUTHORITY – REGISTRATION WITH SECRETARY OF

STATE BY A FOREIGN ENTITY (see Section 39)

_____REQUIRED AFFIDAVIT(S) (see Attachment A)

_____EEO FORMS IF APPLICABLE (see Section 34)

Request for Bid (RFB)

For Soft Drinks

RFB 758 2100000379

Issued by The Finance and Administration Cabinet

On Behalf Of All State Agencies

Release Date: February 23, 2021

Vendors’ Written Questions Due: March 2, 2021 1:00 PM EST Commonwealth’s Response to Written Questions: March 4, 2021

CLOSING DATE AND TIME: March 12, 2021 at 1:30 PM EST

Commonwealth Buyer:

Daniel Salvato CPPB.

COMMONWEALTH OF KENTUCKY

FINANCE AND ADMINISTRATION CABINET

Office of Procurement Services New Capitol Annex

702 CAPITOL AVE RM 096

FRANKFORT KY 40601

(502) 564-5862

Document Description Page 5 daniel.salvato@ky.gov

PUBLIC BID READINGS HAVE BEEN TEMPORARILY SUSPENDED

As Governor Andy Beshear has declared a state of emergency due to the public health emergency related to the COVID-19 disease, we are committed to providing a safe environment for our staff and visitors. Therefore, we have temporarily suspended public bid readings in the Office of Procurement Services (OPS).

Any person wishing to hear a bid reading may call the OPS conference line at 844-603-5060, Participant Code 44510, at 3:30pm, EDT on the bid closing date.

PLEASE READ THIS SOLICITATION AND ITS INSTRUCTIONS IN ITS ENTIRETY.

This is a Request for Bid (RFB).

Vendors shall comply with the terms and conditions stated in the solicitation.

Any efforts to negotiate these terms and conditions SHALL NOT be accepted and SHALL cause the bid to be deemed non-responsive.

All proposed pricing shall remain valid for a minimum of sixty (60) calendar days after the bid due date.

This Contract shall be awarded as Group All. Vendors shall bid all line items, otherwise bid shall be deemed non-responsive.

Vendors should review and comply with the general bidding requirements listed under “Procurement Laws, Preference, Regulations and Policies” and “Response to Solicitation” located on the eProcurement Web page at http://eprocurement.ky.gov and https://emars311.ky.gov/webapp/vssprdonline3111d/AltSelfService respectively.

The vendor must comply with all applicable statutes, regulations and policies related to this procurement.

Document Description Page 6 http://eprocurement.ky.gov https://emars311.ky.gov/webapp/vssprdonline3111d/AltSelfService

Solicitation Terms and Conditions

Master Agreement

Section 1 Scope of Contract The Office of Procurement Services issues this solicitation to establish a Master Agreement for: Soft Drinks

Scope of Work

There are four ways in which State Agencies will utilize the Catalog Master Agreement. They include the following:

A. Product Only – The agency will place an order and the appropriate Vendor will deliver Product to the requesting agency. No dispensing equipment is used in connection with Product used in this category, and these products are normally used by the agency and not normally considered resale merchandise.

B. Products with dispensing equipment (PDE) – Requires each Vendor to furnish the Products at the contracted price and provide the required vendor/dispensing machines for Product resale/use. The agency purchases the Product and stocks the machines and collects the receipts from the machines. The vending/dispensing machines are furnished at no cost to the Commonwealth. There shall be no charge for service calls for the equipment. Service is expected within twenty four hours of calls.

C. Product under full service vending commission (PFSVC)- requires each Vendor to furnish the Product and the equipment and service (stocks and maintains) the machines in a timeframe that meet the Agency’s needs and on a consistent basis in order to maximize agency receipts. The Vendor pays the agency based on the commission percentage in the awarded contracted.

D. Promotional program with vending/dispensing equipment (used by qualifying locations)- requires the Vendor to provide the Product and machines as specified in PDE and PFSVC and also provide promotional incentives to increase Product sales.

Incentives may include, but are not limited to, advertising, special Product prizes mobile concession facilities, etc. Any promotional activity available to the Vendor’s normal customer base shall be considered eligible under the program. Promotional items may not be given to state employees

Document Description Page 7

Vendors Responsibilities

A. Vendor is required to indicate a single, master contract administrator with full authority to oversee any issues that come up with the performance of the Catalog Master Agreement. This includes authority over all distribution points within the Contractor’s network. Any and all changes must be submitted to the buyer of record in the Office of Procurement Services as soon as such changes are known.

Failure to keep this information current may be considered a breach of contract.

B. The awarded vendor is required to maintain a single payment location for all invoices presented to the ordering agency. Agencies shall not be contacted by separate distributors for payment. All contact for payment will be handled by the single payment location by a single contact person.

C. Each Vendor is responsible for monitoring delivery days, professional attitude of those making the actual deliveries, invoicing, credits, and billing terms to make sure that they are carried out. It will be the responsibility of vendor’s contract administrator to oversee the actions of each distributor’s monitoring and to have authority to resolve issues to the mutual satisfaction of the parties.

D. Each vendor shall have a responsible account representative for each agency location and shall serve as the primary point for communication with regard to ordering, payments or any payment issues. Under no circumstances shall a location be placed on COD or other terms not in accordance with this award without fourteen (14) days advance notice of any outstanding charges.

E. Each agency location shall be assigned an individual customer account number.

All drop points at the agencies will share the one account number for the location, but may have identifiers to assist with drop points. These accounts will be completely separate from any other agency within the Commonwealth of Kentucky.

F. Each Vendor shall be responsible for assessing the needs of a specific location to determine if there is enough volume to provide a vending machine. If the volume is high enough, a machine will be placed and serviced by the Vendor. If the volume is not high enough, the Vendor will either show the location how to increase sales and place a machine or they will recommend that the location order Product only.

G. Each Vendor shall provide the Commonwealth with the Vendor’s guidelines or requirements for placing and servicing vending machines and fountain machines.

This is to include what the expected usage is to keep the machine. At no time is a machine to be removed from the location without the agency having been informed at least thirty (30) days prior to the machine’s removal so that the agency has time to seek an alternative solution.

Document Description Page 8

H. Each Vendor will be responsible for all of its employees who deliver Product or machines to state agencies. At no time will the Vendor’s delivery personnel confront any state employee about a competitor’s Product or vending machine that may be found at the delivery site. The Vendor will contact the buyer in the Office of Procurement Services and inform them of the situation. The buyer will check to see what the circumstances are and take appropriate action when authorized to do so.

I. It is the Commonwealths expectation that the following items shall be provided free of charge (or at one penny for accounting purposes) to agencies utilizing the contract:

CO2 Tanks

Cups, 12 oz.

Cups, 16 oz.

Cups, 24 oz.

Cups, 32 oz.

Lids for 12 oz cups

Lids for 16 oz cups

Lids for 24 oz cups

Lids for 32 oz cups

Other than for CO2 tanks, there shall be NO DEPOSITS CHARGED, such as for shells or other packing materials.

Vendor shall supply all necessary equipment at no charge for all vending/ dispensing equipment including but not limited to water filters for the machines.

There shall be no charge for service to the machines and it is expected that service calls are answered within one hour and responded to within 24 hours.

Participating entities not maintaining the percentage of other goods sold (25% of allotted space as described below) do not have to be offered the free/ one penny pricing on cups and lids upon notification of the Commonwealth Buyer.

Adding Facilities, Agencies, Locations The Commonwealth commits that each of the participating agencies shall purchase their Product requirements, and that the participating agencies shall not purchase, Document Description Page 9 sell, advertise, dispense or otherwise make available Product competitive with the Vendors’ Product with the exception listed below. The exception to this would be for private events sponsored by private entities renting space on Commonwealth property.

It is the intent of the Commonwealth to add additional locations to Attachment B Participating Locations, as they become available. Modifications will be made to the Master Agreement to keep the agency listing current. The locations in Attachment B Participating Locations will provide the Contractor access to sell its Product at the rates written into the contract. The Commonwealth of Kentucky, Finance and Administration Cabinet will provide assistance to the Contractor in enforcing the access to and the sales of the Product to those agencies under its jurisdiction. The Commonwealth will assist the Vendors in identifying potential new customers to sell its Product to. The Commonwealth will perform the initial contact with the facilities, agencies and locations to see if the need is there. The contact person’s name and other identifying information will be taken and forwarded on to the Vendor for a follow up call.

The Commonwealth will provide information to assist the Vendor in adding locations and the Vendor agrees to negotiate adequate compensation for increased business.

NOTE: The following agencies or locations are exempt from this requirement. The Office for the Blind (independent blind vendors having concessions may sell any brand of soft drink they deem fit) as well as private food service contractors and concessionaires who hold awarded Master Agreements. Master Agreement pricing does not have to be extended to independent contractors if the percentage of sales of other brands (notated below) is not maintained.

NOTE: Some of the Adult Correctional Facilities will sell Vendors’ Product, but due to the nature of Corrections Facilities and the fact that the canteens within these facilities offer over the counter sales to clientele with extremely limited funds, the Corrections Facilities reserve the right to purchase and sell off-brand soft drinks. Any vending available to the general public will sell the Contractor’s product.

Sale of Other Brands of Soft Drinks The Commonwealth reserves the right to offer for sale secondary brands, including regional or national brands, of soft drinks, waters, and juices at its retail locations such as campground stores, marina stores, gift shops, and pro shops. The display area for other brands than those of the contract holder shall be limited to 25% of the space allotted to the primary brands. The contract vendor will be exclusive in all restaurants, park operated concessions and all vending machines.

Vending Commissions

Commissions shall be paid to the Commonwealth (per agency) by the 20th of the month for receipts due from the prior month’s service or upon a mutually agreed upon date if the commission checks are small and the Vendor wants to cut down on the cost of issuance and postage. There may be an alternative in that the Vendor could direct

Document Description Page 10 deposit these monies to a central location(s) as long as adequate documentation is supplied to know what the funds are for.

Vendors shall state commission percentage on Attachment A Soft Drink Bid Spreadsheet.

Those agencies who have high volumes and heavy traffic that are participating in the Full Service Vending program shall adhere to the proposed vending rates. The Commonwealth reserves the right to mutually renegotiate a different vend rate and a corresponding commission rate for low volume locations with the Vendor. For example, this could involve negotiating a decrease in the vend rate for these small locations with a corresponding decrease in the amount of commissions they would receive. These changes would have to be agreed upon in writing by all parties and a modification would have to be done by the Office of Procurement Services to note this change in the awarded contract. No party may change the vend rate or commission rate of Product without the written consent of the Vendor and the prior written approval of the Office of Procurement Services.

Scholarships Vendor will continue the support of the scholarship funds ($20,000 Dept. of the Blind Scholarship and $30,000 Governor’s Scholarship) annually.

Collectively, Vendors shall provide $20,000.00 each year for scholarships for the Office for the Blind and $30,000.00 each year for scholarships for the Governor’s Scholars Program. The awarded vendor shall issue both checks and the checks shall be received by October 30th of the contract year. This money shall be sent to the Office of Procurement Services and will be distributed to the two parties receiving the funds as the Commonwealth sees fit. The Commonwealth may request a photo-op presentation of the checks.

Commonwealth’s Responsibilities The Commonwealth will take the lead role in adding new agencies and locations to the Catalog Master Agreement. The Commonwealth will make the initial contact, take the contact person’s name and any other identifying information and forward to the Vendor for a follow-up call.

The Commonwealth buyer will investigate any reports of soft drink vending machines (other than the awarded contract holder) located on the grounds of agencies who are participating in the new soft drink contract and will take appropriate action.

The Commonwealth will provide security for the equipment located on State property.

Document Description Page 11

The Commonwealth will not be held responsible for damages that occur to vendor supplied equipment.

A minimum amount of sales per vending machine in a defined time will be maintained on Commonwealth properties or the machine may be removed upon agreement with

Shared Responsibilities The Vendors and the Commonwealth are required to keep all contract information current. It is very important to know the contact people from both sides so that problems can be dealt with in a timely fashion. Both parties will be responsible for keeping their contact list current.

Both parties will be responsible for keeping accurate and current agency location information. If either party has knowledge of a relocation, either before or after the fact, the information shall be passed on to the other party.

Both parties shall propose different ways to increase sales to provide bigger profits to the Vendors and higher revenues for the Commonwealth.

With proper communication from the State of Kentucky, the vendor agrees to address any service issues in a timely manner.

Ordering Conditions The Commonwealth requires a choice of ordering methods. The preferred method is the availability of online ordering through a vendor’s website. It is also preferred that the vendor be able to accept a Delivery Order against the contract, which can be emailed to the vendor. Alternate methods would be a verbal orders that has to be confirmed in writing or through the vendor’s order form and also the use of a ProCard. The Vendor shall provide adequate toll free phone service for phoned in or faxed in orders and a toll free number for technical information or chemical spills. The Commonwealth requires order acknowledgement (non verbal) for all purchases.

The Vendor’s order forms should include a place for the agency to list their account number, agency name and location, and the entire list of Products that are available under the contract.

The Vendors shall cooperate in unusual and unforeseen circumstances where a Vendor is unable to timely deliver Product to allow the Commonwealth to pick-up orders from any operating location in the same Vendor’s territory at the same contract price.

Vendor shall provide a toll free number, email or online website portal where agencies can place their orders on Attachment A Soft Drink Bid Spreadsheet

Document Description Page 12

Please insert the amount of time required for delivery after placing an order on Attachment A Soft Drink Bid Spreadsheet.

Delivery and Receiving Commonwealth agencies are expected to operate on the concept of “just in time” delivery and to keep their inventory levels at a minimum when reasonable or practical to do so.

The maximum number of delivery days is five (5) days per week. Deliveries shall be made as necessary to maximize Product sales. The Vendor’s route personnel shall coordinate with the delivery location to ensure adequate Product to meet the agency’s needs and maximize the agency’s sales.

Delivery under full service commission operations shall be necessary to ensure all machines are stocked with sufficient Product for satisfactory operation at all times.

Delivery shall be made to the location specified by the ordering agency, and during normal receiving hours, unless otherwise specified on the order.

The receiving hours for state agencies will be Monday through Friday from 8:00 a.m.

to 4:00 p.m. Eastern time and 7:00 a.m. to 3:00 p.m. Central Time, unless otherwise stated on the order and excluding state holidays (with the exception of the State Park Cafeterias which are able to accept deliveries from 7:00 a.m- 1:30 p.m.) The Department of Parks may request a Saturday delivery to cover the demand for Product during the summer months for use in their Golf Pro Shops, Camp Grounds, Boat Docks, Historical Sites and Resort Dining Rooms. The Vendor should make every effort to accommodate this request so that the agency will not lose any profits and/or commissions from the additional sales.

A delivery ticket or packing list should be left with the purchasing agency at the time of delivery and the ticket should include the following pieces of information:

Order date Agency name and ship to address Soft Drink Contract number and the agency’s order number (if applicable) Stock number and brief description of each item Quantity delivered and the unit of measure

The Commonwealth reserves the right to purchase Product from any other source, to accommodate its needs, if the Vendor fails to make delivery within the five (5) day delivery period. If the failure to make timely delivery is due to fault on the part of the Vendor, the agency may bill the Vendor for the additional cost, or it may be deducted from the Vendor’s next invoice issued to the agency. The Vendor will not be billed for a failure to make timely delivery, due to verified circumstances beyond the Vendor’s control.

Document Description Page 13

The Vendor is expected to make deliveries on all items ordered through the life of the contract.

The Vendor shall notify the ordering agency of any backorders within eight (8) working hours of any knowledge of the backorder situation. The Vendor shall automatically back order, unless the agency elects to cancel the original order or change the original order to reduce or delete the item affected.

The agency has the right to reject any unit or units that do not comply with industry standards in either workmanship or materials or with the specifications contained herein.

Credits/Returns Within thirty (30) days of receipt of a deficient or incorrect Product, the Commonwealth will contact the appropriate Vendor’s account representative who will arrange for the pick-up and credit of the Product. The Commonwealth will hold the Product at the proper temperature and will attempt to return the Product in its original package.

Soft drink machines under the agreement will have stickers/labels that show the customers the process for obtaining a refund on any lost money and a phone number on the same sticker that the customer can call for assistance.

Restocking Charges There shall not be a restocking charge for items that are ordered in error if the items are regular stock items for the Vendor. The Commonwealth will monitor any chronic deterioration of this process and act upon any problems.

Invoicing Invoices shall be made out to and left with, or mailed to the ordering location, unless otherwise specified on the order or instructed by the agency. Only contract items can be placed on the invoice. If for any reason there is a non-contract item that needs to be billed, then it must be on a separate invoice.

The invoice shall include the following information:

The Vendor’s name and remit to address The Vendor’s federal tax identification number that goes with the remit to address A contact person and their telephone number The Soft Drink contract number and the agencies order number The agency and location who made the purchase The invoice number and the date it was issued The item number The item description The quantity and the unit of measure

Document Description Page 14

The unit price The extension per item and the grand total

If there are any open invoices, the Vendor shall follow up with the agency location to find out what the status is. For unresolved issues after attempts are made at the location, the vendor is to contact The Office of Procurement Services at (502) 564-4510.

Payments Payments to the Vendor are made in accordance with KRS 45.453 and 45.454, which is thirty (30) working days after receipt of the Vendor’s acceptable goods/services and a correct invoice.

Checks received from the Commonwealth with insufficient information to apply the payment to the proper account shall be researched by the Kentucky State Treasurer’s Office for a breakdown of the monies. The Vendor can also contact the Commonwealth Buyer with help in this area. At no time are monies to be applied to just any account.

Vendors are required to accept the Commonwealth’s Procurement Card/ProCard as an acceptable form of payment. The account shall be charged as of the date of delivery of the product to the location as ordered. There shall be no additional charges for an agency to use a ProCard for payment.

Commission checks will be sent to locations designated by the agencies purchasing the product. Agencies may elect to have the checks sent to their Central Office. In the event that an agency chooses to do so, the address of the field location that ordered the product and has earned the commission shall be printed on the memo line of the check.

Reports Reporting will include each vendor’s figures to include state agencies and political subs referencing the contract.

Below is a list of the reports that the Office of Procurement Services requires each Vendor to provide and the frequency schedules.

AGENCY LIST

This report shall be a comprehensive list of all of the agencies and locations that are using the Soft Drink contract. This list shall include the NAME OF THE AGENCY, THE

LOCATION, THE COUNTY THAT IT IS LOCATED IN AND THE ACCOUNT NUMBER

OR OTHER IDENTIFYING NUMBER USED IN BILLING.

This report needs to be in Microsoft Excel format with each of the above as columns so that the Commonwealth personnel using these reports can sort the data in various ways for use in tracking agency participation. This report is required on an annual basis until such time as the frequency may be changed.

Document Description Page 15

This report needs to be sent to the Commonwealth buyer forty five (45) days prior to the contract expiration date. Email address: daniel.salvato@ky.gov

VOLUME REPORT

This report shall be a comprehensive list of data from each Vendor. This report shall include the following data elements:

Amount of Scholarships provided during the year broken out by Governor’s Scholars Program and the Office for the Blind

The total amount of Commissions paid to the Commonwealth broken down by the agency and location and the means by which it was calculated so that the Commonwealth can reconcile that amount.

The above report elements can be in a Microsoft Word document at every renewal period.

PRODUCT USAGE

To be created in Microsoft Excel format. The report shall show the total amount paid for Product by the Commonwealth to be broken down by the following columnar headings:

Agency name Agency location (address) County located in Specific use areas such as a specific State Park broken out by dining room, golf course, boat dock, campground, etc.

Product category such as 12 ounce CSD, 2 liter CSD, etc.

Usage per each category above in case quantities Dollar amount paid for those cases

Each of the Product Usage reports shall show a grand total of how many cases per Product category is being purchased, and a total dollar amount the Commonwealth is spending on Product.

This report shall be submitted to the Commonwealth buyer on a QUARTERLY basis in Microsoft Excel format for ease of rearranging the data and distribution to other

Commonwealth personnel. The report is due by the 15th of the month following the completion of the quarter.

Section 2

Document Description Page 16 mailto:daniel.salvato@ky.gov

Bid Specifications (Requirements that include the words “Shall”, “Will”, “Must” indicate a mandatory requirement)

Section 3 Purpose The purpose of this solicitation is to request vendor responses in order to provide these items under contract to agencies as needed.

Section 4 General This solicitation specifies requested items. It is not the intention of this solicitation to eliminate vendors or manufacturers of similar or equal equipment of the types specified.

It should be noted, however, that these requested items are written around specific needs of State agencies. The Commonwealth reserves the right to consider bids non-responsive if they do not comply with the specifications contained herein.

Section 5 Initial Contract Period The contract established from this solicitation shall be for the initial period of two (2) years from the date of award.

Section 6 Renewal Clause – Optional Renewal Period This contract may be extended at the completion of the initial contract period for three

(3) additional two-year periods. This extension must have the written approval by all parties. If the contract resulting from this solicitation provides for an optional renewal period, the Commonwealth of Kentucky reserves the right to renegotiate any terms and/ or conditions as may be necessary to meet requirements for the extended period. The vendor will be advised of any proposed revisions prior to the renewal periods. In the event proposed revisions cannot be agreed upon, either party shall have the right to withdraw without prejudice from either exercising the option or continuing the contract in an extended period.

Section 7 Exceptions to Specifications Vendors are cautioned that changes made to the solicitation other than in the designated fields for response shall render the response invalid and result in a non-responsive bid. Otherwise, it will be considered that items/services offered are in strict compliance with these specifications, and the successful bidder shall be held responsible for delivering materials/services that meet these specifications. Any exceptions shall be marked as such within the body of the bid and explained on a separate page. The Commonwealth is not bound to accept any exceptions.

Section 8 Alternate Brands/Specifications

Document Description Page 17

Unless otherwise specified, brands and specifications referenced in this solicitation are meant to establish a minimum standard of quality only. Bidders may bid brands/ specifications they consider to be equal by specifying the brand(s)/specifications and inserting the brand name(s), model number(s), etc. on which they are bidding. Bids offering “equal” products/specifications will be considered for award if such products are clearly identified in the bid and are determined by the State to meet or exceed fully the minimum essential specifications and salient characteristics referenced in the Solicitation. Bids that contain products/specifications that fail to meet the minimum essential requirements shall be deemed non-responsive.

Bidders who propose alternate brands/specifications should enclose descriptive literature with their bids so that the equality can be verified. Failure to enclose sufficient literature may result in a non-responsive bid. If the brands are not changed, the contract will be written accordingly and the successful bidder shall be required to deliver the brands/specifications stated in the solicitation.

Section 9 Recycle Requirements Prospective bidders are required to comply with Recycle Requirements for the purchase of goods, supplies, equipment, materials and printing with a minimum recycled content to the extent practicable per 200 KAR 5:330. This regulation can be viewed on the Internet at https://apps.legislature.ky.gov/law/kar/200/005/330.pdf

Section 10 Acknowledgment of Addenda It is the vendor's responsibility to check the web site for any modifications to this solicitation. Electronic Bid submittal is the vendor’s agreement to be bound by the terms of all addenda issued.

Section 11 Agencies to be Served This contract shall be for use by the following agency of the Commonwealth of Kentucky:

ALL STATE AGENCIES

Political Subdivisions Under Kentucky Statutes, political subdivisions of this State including cities of all classes, counties, and school districts may participate in All State Agency Master Agreements to the same extent as agencies of the Commonwealth.

Section 12 Solicitation Submission Requirements

Document Description Page 18

Paper Bids are NOT acceptable for this RFB and shall be considered non-responsive.

Section 13 Method of Award Best Value – Ranking Approach The Commonwealth intends to award a contract to the vendor, whose offer, conforming to the solicitation, is the most advantageous on the basis of "best value" for all products, services, and requirements contained herein.

An evaluation committee, or a designated individual, will evaluate the information provided by the vendor in response to the established measurable criteria contained in the solicitation.

Measurable Criteria:

BIB Category 35 Points

Can/Bottle/2 Liter Category 20 Points Other Item Category 20 Points

Commission Category 25 Points

TOTAL POINTS 100 Points

Each vendor is responsible for submitting all relevant, factual and correct information with their offer to enable the evaluator(s) to afford each vendor the maximum score based on the available data submitted by the Vendor. VENDOR SHALL ENTER UNIT

PRICE AND TOTAL PRICE .

A bidder shall submit one (1) response to a solicitation and shall not propose more than one (1) model/brand for each item listed in the solicitation, except for requested tier pricing. Multiple or alternate bids offering more than one (1) bid price in total or by line item shall be rejected.

Vendors responding with the minimum Best Value requirements in this solicitation shall not be credited with Best Value points. Vendors responding with greater than the minimum requirements shall receive Best Value points. Failure to provide adequate information will impact the evaluated points awarded to the vendor.

BIB Category (35 points) The bidder with the lowest cumulative Price receives the maximum score. The bidder with the next lowest Price receives points by dividing the lowest Price by the next lowest price and multiplying that percentage by the available points. For example, 35 points is allocated to the lowest Price criteria for this procurement, bidder “A” bids $3.00 as the lowest bidder and receives the maximum 35 points

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($3.00 / $3.00 = 1.00 x 35 = 35). Assume bidder “B” is the next lowest bidder at $4.00, then “B” receives 26.25 points ($3.00 / $4.00) = .75 x 35 = 26.25).

Can/Bottle/ 2 Liter Category (20 points) bidder with the next lowest Price receives points by dividing the lowest Price by the next lowest price and multiplying that percentage by the available points. For example, 20 points is allocated to the lowest Price criteria for this procurement, bidder “A” bids $3.00 as the lowest bidder and receives the maximum 20 points ($3.00 / $3.00 = 1.00 x 20 = 20). Assume bidder “B” is the next lowest bidder at $4.00, then “B” receives 15 points ($3.00 / $4.00) = .75 x 20 = 15).

Other Item Category (20 points) bidder with the next lowest Price receives points by dividing the lowest Price by the next lowest price and multiplying that percentage by the available points. For example, 20 points is allocated to the lowest Price criteria for this procurement, bidder “A” bids $3.00 as the lowest bidder and receives the maximum 20 points ($3.00 / $3.00 = 1.00 x 20 = 20). Assume bidder “B” is the next lowest bidder at $4.00, then “B” receives 15 points ($3.00 / $4.00) = .75 x 20 = 15).

Commission Percentage Category (35 points) The bidder with the highest commission percentage receives the maximum score.

The bidder with the next highest commission percentage receives points by dividing the next highest percentage by the highest percentage and multiplying that percentage by the available points. For example, 35 points is allocated to the highest percentage criteria for this procurement, bidder “A” bids 65% as the highest percentage and receives the maximum 35 points (65/ 65 = 1.00 x 35 = 35). Assume bidder “B” is the next highest percentage at 55%, then “B” receives 26.25 points (55 / 65) = .85 x 35 = 29.75).

Best Value scoring is subject to Reciprocal preference for Kentucky resident bidders and Preferences for a Qualified Bidder or the Department of Corrections, Division of Prison Industries (KAR 200 5:410).

KRS 45A.490 Definitions for KRS 45A.490 to 45A.494.

As used in KRS 45A.490 to 45A.494:

(1) "Contract" means any agreement of a public agency, including grants and orders, for the purchase or disposal of supplies, services, construction, or any other item; and

(2) "Public agency" has the same meaning as in KRS 61.805.

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KRS 45A.492 Legislative declarations.

The General Assembly declares:

(1) A public purpose of the Commonwealth is served by providing preference to Kentucky residents in contracts by public agencies; and

(2) Providing preference to Kentucky residents equalizes the competition with other states that provide preference to their residents.

KRS 45A.494 Reciprocal preference to be given by public agencies to resident bidders -- List of states -- Administrative regulations.

(1) Prior to a contract being awarded to the lowest responsible and responsive bidder on a contract by a public agency, a resident bidder of the Commonwealth shall be given a preference against a nonresident bidder registered in any state that gives or requires a preference to bidders from that state. The preference shall be equal to the preference given or required by the state of the nonresident bidder.

(2) A resident bidder is an individual, partnership, association, corporation, or other business entity that, on the date the contract is first advertised or announced as available for bidding:

(a) Is authorized to transact business in the Commonwealth; and

(b) Has for one (1) year prior to and through the date of the advertisement, filed Kentucky corporate income taxes, made payments to the Kentucky unemployment insurance fund established in KRS 341.490, and maintained a Kentucky workers' compensation policy in effect.

(3) A nonresident bidder is an individual, partnership, association, corporation, or other business entity that does not meet the requirements of subsection (2) of this section.

(4) If a procurement determination results in a tie between a resident bidder and a nonresident bidder, preference shall be given to the resident bidder.

(5) This section shall apply to all contracts funded or controlled in whole or in part by a public agency.

(6) The Finance and Administration Cabinet shall maintain a list of states that give to or require a preference for their own resident bidders, including details of the preference given to such bidders, to be used by public agencies in determining resident bidder preferences. The cabinet shall also promulgate administrative regulations in accordance with KRS Chapter 13A establishing the procedure by which the preferences required by this section shall be given.

(7) The preference for resident bidders shall not be given if the preference conflicts with federal law.

(8) Any public agency soliciting or advertising for bids for contracts shall make KRS 45A.490 to 45A.494 part of the solicitation or advertisement for bids.

The reciprocal preference as described in KRS 45A.490-494 above shall be applied in accordance with 200 KAR 5:400.

Determining the residency of a bidder for purposes of applying a reciprocal preference Any individual, partnership, association, corporation, or other business entity claiming resident bidder status shall submit along with its response the attached Required Annual Affidavit for Bidders, Offerors, and Contractors Claiming Resident Bidder Status, unless a valid, Annual Affidavit is already on file with the Commonwealth. The BIDDING AGENCY reserves the right to request documentation supporting a bidder’s claim of resident bidder status. Failure to provide such documentation upon request shall result in disqualification of the bidder or contract termination.

A nonresident bidder shall submit, along with its response, its certificate of authority to transact business in the Commonwealth as filed with the Commonwealth of Kentucky, Secretary of State. The location of the principal office identified therein shall be deemed

Document Description Page 21 the state of residency for that bidder. If the bidder is not required by law to obtain said certificate, the state of residency for that bidder shall be deemed to be that which is identified in its mailing address as provided in its bid.

Preferences for a Qualified Bidder or the Department of Corrections, Division of Prison Industries (KAR 200 5:410).

Pursuant to 200 KAR 5:410, and KRS 45A.470, Kentucky Correctional Industries will receive a preference equal to twenty (20) percent of the maximum points awarded to a bidder in a solicitation. In addition, the following “qualified bidders” will receive a preference equal to fifteen (15) percent of the maximum points awarded to a bidder in a solicitation:

Kentucky Industries for the Blind, any nonprofit corporation that furthers the purposes of KRS Chapter 163 and any qualified nonprofit agencies for individuals with severe disabilities as defined in KRS 45A.465(3). Other than Kentucky Industries for the Blind, a bidder claiming “qualified bidder” status shall submit along with its response to the solicitation a notarized annual affidavit, which affirms that it meets the requirements to be considered a qualified bidder- annual affidavit form included. The annual affidavit form is not required if a valid, annual affidavit is already on file with the Commonwealth. If requested, failure to provide documentation to a public agency proving qualified bidder status may result in disqualification of the bidder or contract termination.

Past Vendor Performance may be considered in the award of this Contract. Vendors with a record of poor performance in the last 12 months may be found non-responsible and ineligible for award.

Section 14 Tax Exempt Status Do not include Federal Excise Tax, Kentucky Sales or Use Tax in prices quoted in response to this solicitation.

Section 15 Basis of Price Revisions PRICE ADJUSTMENTS: Unless otherwise specified, the prices established by the contract resulting from this solicitation shall remain firm for the contract period subject to the following:

A: Price Increases: A price increase shall not occur during the first twelve (12) months of the contract. A vendor may request a price increase after twelve (12) months of the contract, which may be granted or denied by the Commonwealth. Any such price increase shall be based on industry wide price changes. The contract holder must request in writing a price increase at least thirty (30) days prior to the effective date, and shall provide firm proof that the price increase(s) is justified. The Office of Procurement Services may request additional information or justification.

If the price increase is denied, the contract holder may withdraw from the contract without prejudice upon written notice and approval by the Office of Procurement

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Services. Provided, however, that the vendor must continue service, at the contract prices, until a new contract can be established (usually within sixty (60) days).

B: Price Decreases: The contract price shall be reduced to reflect any industry wide price decreases. The contract holder is required to furnish the Office of Procurement Services with notice of any price decreases as soon as such decreases are available.

C: Extended Contract Periods: If the contract provides for an optional renewal period, a price adjustment may be granted at the time the contract is renewed, subject to price increase justification as required in Paragraph A “Price Increases” as stated above.

Section 16 Vendor Terms and Conditions Solicitation or quotation forms that include terms and conditions not in conformity with the terms and conditions of this solicitation or the Statutes of the Commonwealth of Kentucky may be deemed non-responsive.

The Commonwealth of Kentucky shall not be bound by any part(s) of the bidder’s response to this solicitation that contains information, options, conditions, terms, or prices neither requested nor required in the solicitation. In the event of any conflicts between the specifications, terms and conditions indicated by the Commonwealth and those indicated by the contractor, those of the Commonwealth take precedence. The contract supersedes all bids or other prior agreements, oral or written, and all other communications between the parties relating to this subject.

Section 17 Post Contract Agreements The resulting contract shall constitute the entire agreement between the State and awarded contractor. Unless contractually provided, State agencies utilizing this contract will not be required to enter into nor sign further agreements, leases, company orders or other documents to complete or initiate the terms of a contract resulting from this solicitation or offer. Any such documents so obtained will be non-binding on the State and agents of the State and will be cause for breach of contract.

Section 18 Equipment Unless otherwise indicated in the bid, it is understood and agreed that any item offered or shipped on this bid shall be new and the latest or current year model and be in first class condition. Any unit failing to meet the foregoing requirements shall be returned to the contractor, at their expense, and replaced with a new unit.

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The Commonwealth recognizes the rapid advancement of technology. If the bidder can provide new equipment of advanced technology after the award of the contract, the Commonwealth and the bidder may choose by mutual agreement to install such equipment. The price of the new technology equipment cannot exceed the cost of the award contract.

Section 19 Quantity Basis of Contract – Estimated Quantities Any and all quantities mentioned in this solicitation are purely estimates, and are not to be implied nor inferred as being guarantees. The State is obligated to buy only that quantity needed by its agencies during the term of the contract. Requirements may exceed the quantities shown and the contractor will be required to furnish all requirements shown on Delivery Orders dated during the life of the contract.

Section 20 Manuals and Distribution of Literature Instruction and operating manuals shall be furnished for all equipment installed. Upon request, the vendor shall furnish State agencies and other public bodies with descriptive literature and service information for items awarded.

Section 21 Vendor’s Report The vendor(s) may be asked to furnish the buyer, Office of Procurement Services, a report showing volume which has been sold to the Commonwealth and its using agencies each six (6) months of the contract period. The report will include political subdivisions and university purchases. This report may be the vendor’s computer printout sheet or form. This shall apply to all items, which are to become a part of this contract. This report must reference usage by brief description, product number or other format designated by the Office of Procurement Services.

Section 22 FOB Basis of Shipment – Vendor Responsible Quotations of unit prices on this solicitation shall be F.O.B. Destination Freight Prepaid and Allowed. The vendor shall be fully responsible for all shipments and freight charges involved to the ordering agency.

Section 23 Cancellation Clause – 30 Days Notice The Commonwealth may cancel the contract established from this solicitation by giving written notice thirty (30) days prior to…