Final_RFB_758_2300000029_1_SO_FORM.PDF

Document ID: RFB 758 2300000029 Page: 1

Commonwealth of Kentucky

SOLICITATION

Modification: No Version #:

TITLE: Bulk Fuel (Aviation)

Date Issued:

11/03/2022 Record Date:

11/03/2022

Solicitation Closes Date:

11/18/2022 Time:

13:30

Solicitation No:

RFB 758 2300000029

Online Bidding Prohibited: No For Information Call:

Sheila Durham 502-564-8626

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 2300000029 Page: 2

Line Items

Commodity Group: Default Commodity Group

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

1 Jet A Fuel 175000.00000 GAL

Comm Code Comm Description Manufacturer Model # Manuf Part #

40518 Gasoline, Aviation (Including Jet Fuel)

Extended Description Jet A Fuel (with Prist Additive)

For resale to General Aviation and use by the State Aircraft fleet. Estimated Annual Usage is 175,000 Gallons.

Cost shall incorporate all Freight/Delivery charges. Cost does NOT include any applicable taxes.

Vendor shall enter COST above Platts Index for Monday of the week of delivery.

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

2 Avgas Fuel 60000.00000 GAL

Comm Code Comm Description Manufacturer Model # Manuf Part #

40518 Gasoline, Aviation (Including Jet Fuel)

Extended Description Avgas Fuel

For resale to General Aviation and use by the State Aircraft fleet. Estimated Annual Usage is 60,000 Gallons.

Cost shall incorporate all Freight/Delivery charges. Cost does NOT include any applicable taxes.

Vendor shall enter COST above Platts Index for Monday of the week of delivery.

Shipping Information KY Transportation Cabinet Capital City Airport Division 88 Airport Rd, Bldg. 401

Frankfort KY 40601

Billing Information KY Transportation Cabinet Capital City Airport Division 88 Airport Rd, Bldg. 401

Frankfort KY 40601

Document ID: RFB 758 2300000029 Page: 3

Submission Checklist

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

Item

PRICE

Bidder w/ lowest mark up over Platts price index receives max point Delivery shall be made within 48 hrs. of notification.

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.

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/eProcurement/Pages/default.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

2300000029 Bulk Fuel (Aviation) https://emars311.ky.gov/webapp/vssprdonline3111d/AltSelfService https://finance.ky.gov/eProcurement/Pages/default.aspx https://finance.ky.gov/eProcurement/Pages/default.aspx mailto:Finance.CRCGroup@ky.gov

The following items MUST be submitted prior to award:

_____REVENUE FORM 10A100 KENTUCKY TAX REGISTRATION APPLICATION

(see Section 35)

_____CERTIFICATE OF AUTHORITY – REGISTRATION WITH SECRETARY OF

STATE BY A FOREIGN ENTITY (see Section 37)

_____REQUIRED AFFIDAVIT(S) (see Attachment A1, A2, A3)

_____EEO FORMS IF APPLICABLE (see Section 32)

Request for Bid (RFB)

For

BULK AVIATION FUEL

RFB 758 2300000029

Issued by

The Finance and Administration Cabinet On Behalf Of

Kentucky Transportation Cabinet (KYTC) Department of Aviation

Release Date: November 3, 2022 Vendors’ Written Questions Due: November 9, 2022 by 4:00 PM ET

Commonwealth’s Response to Written Questions: November 10, 2022 CLOSING DATE AND TIME: November 18, 2022 at 1:30 PM ET

Commonwealth Buyer:

Sheila Durham

COMMONWEALTH OF KENTUCKY

FINANCE AND ADMINISTRATION CABINET

Office of Procurement Services

200 MERO STREET, FIFTH FLOOR

FRANKFORT KY 40622

(502) 564-8626 sheila.durham@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).

Document Description Page 5 mailto:sheila.durham@ky.gov

Any person wishing to hear a bid reading may call the OPS conference line at 844-603-5060, Participant Code 44510, at 3:30pm, ET 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 respectively https://finance.ky.gov/eProcurement/Pages/procurement-laws-regulations-and-policies.aspx. The vendor must comply with all applicable statutes, regulations and policies related to this procurement.

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: Bulk Aviation Fuel.

Section 2 Bid Specifications The Bulk Aviation Fuels sold and purchased shall be the regular grade or grades of Aviation Fuels and deliveries shall be by tank truck at the place of business, Capital City Airport, 88 Airport Road, Building 401, Frankfort, KY 40601. Delivery quantities are anticipated to be in approximately even quantities and will be accepted Monday through Saturday (six (6) days a week at no extra charge). It is the intent of Capital City Airport to order in tanker loads whenever possible.

The delivery date and time shall be coordinated between the Vendor and the ordering agency.

Document Description Page 6 http://eprocurement.ky.gov https://finance.ky.gov/eProcurement/Pages/procurement-laws-regulations-and-policies.aspx https://finance.ky.gov/eProcurement/Pages/procurement-laws-regulations-and-policies.aspx

Jet A fuel will be pre-blended with Prist and delivered to a dedicated 20,000 gallon above-ground tank which has a concrete surface approach area and is accessible for a tanker (small or large size) to turn/maneuver around.

Avgas fuel will be delivered to a dedicated 12,000 gallon above-ground tank which has a concrete surface approach area and is accessible for a tanker (small or large size) to turn/maneuver around.

Minimum specifications shall be as follows:

1. Product/Specifications:

a. Avgas 110LL – meets or exceeds ASTM D910

b. Jet A – meets or exceeds ASTM D1655, with premixed anti-icing additive.

2. Quantity/Term:

a. Avgas 110LL

b. Jet A

c. Invoicing of fuel shall be based on net gallons delivered as verified by the bill of lading provided by the terminal.

3. Product Delivery and Price

a. Deliveries of aviation fuels shall normally be by full transport amounts, not less than 7,000 gallons, or up to approximately 8,500 gallons depending on the fuel tanker’s capacity.

b. All deliveries shall be made within forty-eight (48) hours of order placement.

Deliveries may also be required to be made Monday through Saturday.

c. Compartment seals installed at the terminal shall be required or delivery of the fuel may be rejected.

d. Freight/Delivery charges shall be included in Vendor’s cost.

e. Pricing shall reflect terminal pricing and be based on Platt’s Gulf Coast Price Index, Monday of the week of delivery. Vendor shall provide a copy of the weekly Platt’s Gulf Coast quote sheet to accompany each invoice.

Terminal Rack or Index price refers to the cost of bulk fuel product at bulk storage facility before it is loaded for over-the-road transport.

Terminal Rack price (cost per gallon), fixed fee (which covers freight), Federal Superfund tax, Federal excise tax, Kentucky State taxes, Kentucky State Inspection Fee, Environmental Impact Fee, prompt payment discounts, and any other applicable charges/credits shall be listed as separate line items on each invoice. These taxes/charges shall remain constant until such time as the Kentucky Department of Revenue or other taxing agency officially adopts newer rates.

The Capital City Airport will only pay the taxes/fees listed below:

Avgas 110LL:

Federal Excise Tax (per gallon)

Document Description Page 7

Kentucky LUST Fee (per gallon) Kentucky Motor Fuel Tax (per gallon) Federal Oil Spill Tax (per gallon)

Jet Fuel:

Federal LUST Tax (per gallon) Federal Excise Tax (per gallon) Federal Oil Spill Tax (per gallon)

Note: LUST Tax is the Leaking Underground Storage Tank (LUST) Tax.

f. Vendor shall provide appropriate Safety Data Sheets (SDS) for each fuel type.

g. The Vendor shall supply any adapter needed to accommodate coupling of road transport vehicles to the Capital City Airport Systems.

h. Vendor shall provide weekly price notification quotes showing effective dates of the quote, a breakdown of all fees in the per gallon price, and a total per gallon price. Platt’s + fixed fees + line items for taxes, etc.

4. Credit Cards

The Contractor shall accept purchasing credit cards as a form of payment without charging any fees for the purchase.

5. Quality Control/Inspection

a. Vendor shall provide Capital City Airport with written product Quality Reports and Certification of Quality documentation for each fuel delivery.

b. Vendor shall inspect and provide a written inspection report on all fuel handling equipment on an annual basis and provide these reports to Capital City Airport. The Vendor shall also have full-time Quality Control personnel schedule a minimum of one (1) regular on-site visit per year to assure the highest fuel quality standards to include record keeping. Quality Control technicians shall perform, at a minimum, check the conductivity of grounding cables, sump filter vessels and tanks for water, and inspect the overall condition of the equipment, including annual visual inspection of fuel tanks.

6. Insurance

a. Vendor shall provide at no cost to the Commonwealth, excess Aircraft Fueling Liability Insurance covering all fuel related activities of at least $50 million ($50,000,000.00) with a Certificate of Insurance naming the Commonwealth of Kentucky as an Additional Insured. A copy of this policy/document shall be provided to the Capital City Airport and the Commonwealth Buyer within five (5) calendar days after notice of intent to award. The insurance policy must remain in force for the life of the Master Agreement.

b. Vendor shall provide at no cost to the Commonwealth. Excess Product Liability Insurance in the amount of $10 million ($10,000,000.00) with a Certificate of Insurance naming the Commonwealth of Kentucky as an Additional Insured. A copy of this policy/document shall be provided to Capital City Airport and the Commonwealth Buyer within five (5) calendar days after notice of intent to award.

The insurance policy must remain in force for the life of the Master Agreement.

Document Description Page 8

c. Property Damage Insurance. The contractor shall indemnify, defend, and hold harmless all the state officials and the Commonwealth of Kentucky and all officials, employees, and participating householders of the Commonwealth of Kentucky against any losses, claims, actions, damages, liability, and expenses, including but not limited to those in connection with loss of life, bodily and personal injury, or damage to property occasioned wholly or in part by the contractor or by persons employed directly or indirectly by the contractor in connection with the used electronic equipment collection, transportation, dismantling, salvage, sale, reuse, and/or recycling.

The contractor shall obtain and maintain in full force, for as long as necessary to fund the contractor’s indemnification and defense obligations, the following types and amounts of insurance:

A Commercial Liability Insurance policy shall afford limits of no less than the following:

$2,000,000 - General Aggregate $1,000,000 - Products and Completed Operations Aggregate $1,000,000 - Personal and Advertising Injury $1,000,000 – Each Occurrence $ 50,000 – Fire Damage $ 5,000 – Medical Expense

An automobile/truck liability insurance policy covering owned, non-owned, and hired vehicles. Said policy of insurance to have a minimum limit of $1,000,000 per occurrence combined single limit for bodily injury, including death and property damage.

A Worker’s Compensation and Employer’s Liability insurance policy with Kentucky statutory limits for workers compensation and a minimum of $1,000,000 per accident for employer’s liability.

The Commercial General Liability insurance required under this Contract shall include The Commonwealth of Kentucky, its officers, employees and agents as Additional Insureds but only with respect to Contractor's activities to be performed under this Contract. Coverage shall be primary and non-contributory with any other insurance and self-insurance.

d. Indemnity. The contractor (undersigned) jointly and severally agrees to indemnify and save harmless the Commonwealth (Indemnified) and their successors and assigns, from any claim, action, liability, loss, damage or suit, arising from the claim against the Commonwealth as a result of the contractor’s actions. In the event of any asserted claim, the Indemnified shall provide the undersigned reasonably timely written notice of same, and thereafter the undersigned shall at its own expense defend protect and save harmless Indemnified against said claim or any loss or liability there under. In the further event the undersigned shall fail to so defend and/or indemnify and save harmless, then in such instance the Indemnified shall have full rights to defend, pay or settle said claim on their own behalf without notice to undersigned and with full rights to recourse against the undersigned for all fees, costs, expenses and payments made or agreed to be paid to discharge said claim. Upon default, the undersigned further agree to pay all reasonable attorneys’ fees necessary to enforce this agreement. This agreement shall be unlimited as to amount or duration.

Document Description Page 9 https://www.lawinsider.com/clause/additional-insured?cursor=ClkSU2oVc35sYXdpbnNpZGVyY29udHJhY3RzcjoLEhlDbGF1c2VTbmlwcGV0R3JvdXBfdjE5X2VuIhthZGRpdGlvbmFsLWluc3VyZWQjMDAwMDAwMGEMGAAgAA%3D%3D

7. Emergency Service

a. The Vendor shall make available to Capital City Airport a twenty-four (24) hour toll-free telephone number should any problems occur or should the Capital City Airport require a weekend/holiday fuel delivery.

b. Should there be an additional fee for weekend (Sunday) or holiday delivery, this will be coordinated and agreed upon between the two parties prior to delivery.

8. On-Site Line Service Training & Quality Assurance Certification

a. Vendor shall provide periodic line service and quality control training to Capital City Airport employees to meet, at a minimum, the standards set under FAR

139.321. Training will be provided either on-site or at a regional site within a 250 mile range of Capital City Airport on a yearly basis. If requested by the vendor, facilities (meeting room) may be provided for the vendor to run a regional class.

9. Signs

a. Vendor shall provide one large Airport Aviation Fuel logo sign that is highly visible at the Airport location for air viewing. The vendor shall also provide any required decals or signs (for advertising, maintenance, safety, operation, etc.) on ground equipment and the bulk fuel tanks at no charge to Capital City Airport.

Please provide Capital City Airport for review and approval, any description and size details (picture of a similar sign, dimensions, colors, wording, design layout, etc.) of any proposed new sign that the Vendor would provide. The actual sign shall be approved in writing by Capital City Airport prior to fabrication and installation.

b. All signs and symbols will be furnished, installed, and maintained by the Vendor at their expense. Before the Vendor installs any sign(s), name(s), or logos on Capital City Airport Avgas and/or Jet A Storage Tanks, the Vendor agrees to repaint the storage tanks and remark the fueling systems.

c. Regardless of a branding change, all fueling equipment, to include farm tanks, and trucks, are to be painted if weathered, faded, or rust is evident. Signage to include farm tanks, trucks, post signs, and windsocks with logos are to be replaced or painted if weathered or faded.

10. Administrative Issues

a. The service coverage period shall be from 8:00 AM to 5:00 PM, excluding Christmas Day or forced weather-related closures. The agency shall have direct telephone access to the Vendor’s technical support staff. Capital City Airport’s operating hours are from 7:00 AM to 8:00 PM, Monday – Friday and 9:00 AM to 6:00 PM, Saturday – Sunday. All times listed are Eastern Time.

b. The Vendor shall offer:

1. remote diagnostic technical assistance to resolve software functional problems and user problems during the service coverage period.

2. unlimited toll-free telephone access to Support Center for the logging of requests for service during the Service Coverage Period.

3. free business technical support during the service coverage period listed above from the award date of the Master Agreement.

c. Amenities – The Vendor may offer amenities other than those stated above any

Document Description Page 10 time during the life of the Master Agreement. Examples may include but are not limited to; additional signage, magazine advertising, other advertising, and any leasing items, Cooperative Advertising Programs, purchase of uniform placements, pens, brochures, or any applicable special sales allowances (support of Capital City Airport Aviation Day) or special event assistance (support of the Young Eagles Program).

11. Software Compatibility

a. Software specifications shall include:

1. Capital City Airport uses Total FBO for the Flight Line Office accounting software.

2. Capital City Airport uses Fuelmaster #2650 Fuel Management System.

NOTE: All POS machines and accessory equipment must be compatible with these systems.

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 from January 1, 2023 through December 31, 2024.

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

(2) 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.

Document Description Page 11

Section 8 Alternate Brands/Specifications No alternative specifications will be accepted.

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:

KYTC Department of Aviation, Capital City Airport.

Extending the Contract Use to Other Agencies The Office of Procurement Services reserves the right, with the consent of the vendor, to offer the Master Agreement resulting from this solicitation to other State agencies requiring the product(s) or service(s).

Section 12 Solicitation Submission Requirements 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:

Cost (above Platt’s Index) 100 Points Delivery Pass/Fail

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.

Document Description Page 12

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.

A. COST - ABOVE PLATTS INDEX (100 points) The bidder with the lowest 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, 100 points is allocated to the lowest Price criteria for this procurement, bidder “A” bids $3.00 as the lowest bidder and receives the maximum 100 points ($3.00 / $3.00 = 1.00 x 100 = 100). Assume bidder “B” is the next lowest bidder at $4.00, then “B” receives 75 points ($3.00 / $4.00) = .75 x 100 = 75). Vendor shall enter cost (above Platt’s Index) on Commodity Lines 1 and 2.

B. DELIVERY (PASS/FAIL)

Vendor shall make deliveries to Capital City Airport, 88 Airport Road, Building 401, Frankfort, KY 40601 within forty-eight (48) hours after notification. See Section 2 (3) Product Delivery and Price.

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.

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.

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(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 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 twelve (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 with the exception of taxes notated in Section 2 (3)(e), Product Delivery and Price.

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

Document Description Page 14 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 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 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 19 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

Document Description Page 15 reference usage by brief description, product number or other format designated by the Office of Procurement Services.

Section 20 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 21 Cancellation Clause – 30 Day Notice The Commonwealth may cancel the contract established from this solicitation by giving written notice thirty (30) days prior to effective cancellation date. In the event such action is taken, the contract shall be null and void upon receipt of a Modification from the Office of Procurement Services canceling the contract.

Section 22 Exception to Required Use of Contract The establishment of this Master Agreement is not intended to preclude the use of similar products when requested by the agency. The Commonwealth of Kentucky reserves the right to contract for large requirements by using a separate solicitation.

Section 23 Service Performance All services performed under this contract, if applicable, shall be in accordance with the terms and provisions of the contract. It will be the agency’s responsibility to ensure that such services rendered are performed and are acceptable.

The relationship between the State and the Contractor is that of client and independent contractor. No agent, employee, or servant of the contractor or any of its subcontractors shall be or shall be deemed to be an employee, agent, or servant of the State for any reason. The contractor will be solely and entirely responsible for its acts and the acts of its agents, employees, servants and subcontractors during the performance of this contract.

Major deviations of services performed will not be made without the written approval of the Office of Procurement Services. Problems that arise under any aspect of performance should first be resolved between the vendor and the agency. Either party should refer in writing any such problems and/or disagreements that cannot be resolved to the Office of Procurement Services for settlement.

Section 24 Addition or Deletion of Items or Services The Office of Procurement Services reserves the right to add new and similar items, with the consent of the vendor, to any contract awarded from this solicitation. The Office of Procurement Services to effect this change will issue a contract Modification. Until such time as the vendor receives a Modification, the vendor shall not accept Delivery Orders from any agency referencing such items or services.

Section 25 Agreement between Parties By submitting a bid, the bidder acknowledges and agrees to be bound by the terms and conditions of the solicitation.

Document Description Page 16

The bidder agrees that a resulting contract is the complete and exclusive statement of the agreement between the parties, which supersedes all prior agreements, oral or written, and all other communications between the parties relating to the subject matter of this solicitation. It is further agreed between the parties, that any valid modification of contractual agreement must be formalized by issuance of a Contract Modification from the Office of Procurement Services.

Purchase or Sales Agreements, supplied by the bidder making an offer, in reply to the solicitation, will not be accepted. The only terms and conditions acceptable to the Commonwealth of Kentucky are as outlined in the solicitation. Bids not conforming will be considered as non-responsive.

Section 26 Governmental Restrictions In the event any Governmental restrictions may be imposed which would necessitate alteration of the material, quality, workmanship, or performance of the items offered on this proposal prior to delivery, it shall be the responsibility of the successful bidder to notify the Office of Procurement Services in writing, indicating the specific regulation which requires such alterations. The Commonwealth reserves the right to accept any such alterations, including any subsequent price adjustments, or to cancel the contract.

Section 27 Payments The vendor shall be paid, upon the submission of proper invoices to the receiving agency at the prices stipulated for the supplies delivered and accepted, or services rendered.

Unless otherwise specified, payment will not be made for partial deliveries accepted.

Payments will be made within thirty (30) working days after receipt of goods or a vendor’s invoice in accordance with KRS 45.453 and KRS 45.454.

Section 28 Inspection All supplies, equipment and services shall be subject to inspection or tests by the Commonwealth prior to acceptance. In the event supplies, equipment or services are defective in material or workmanship or otherwise not in conformity with specified requirements, the Commonwealth shall have the right to reject the items or services or require acceptable correction at the Vendor’s expense.

Section 29 Inquiries All questions shall be submitted in writing by November 9, 2022 by 4:00 PM ET to the Commonwealth buyer listed below. No questions shall be accepted after the date(s) listed unless the question(s) is considered material to the procurement. The Commonwealth shall respond to salient questions in writing by issuing an addendum to the solicitation.

The addendum shall be posted to the Kentucky Vendor Self Service site.

(SUBMIT QUESTIONS ON ATTACHMENT B – VENDORS’ QUESTION FORM)

Sole Point of Contact – Commonwealth Buyer The Commonwealth Buyer listed below shall be the sole point of contact throughout the procurement process. All communications, oral and written (regular, express, or electronic mail), concerning this procurement shall be addressed to:

Commonwealth Buyer Sheila Durham

COMMONWEALTH OF KENTUCKY

Document Description Page 17

FINANCE AND ADMINISTRATION CABINET

Office of Procurement Services

200 MERO STREET, FIFTH FLOOR

FRANKFORT KY 40622

(502) 564-8626 sheila.durham@ky.gov

Restrictions on Communications From the issue date of this solicitation until a contractor(s) is selected and the selection is announced, offerors are not allowed to communicate with any Commonwealth Staff concerning this solicitation except:

The Commonwealth Buyer cited in this solicitation Via written questions submitted to the Commonwealth Buyer

Potential bidders should clearly understand that any verbal representatives made or assumed to be made during any oral discussions held between representatives of potential bidders and any state employee or official are not binding on the Commonwealth of Kentucky.

For violation of this provision, the Commonwealth shall reserve the right to disqualify the bid/proposal.

Section 30 Subcontracts The contractor is permitted to make subcontract(s) with any other party for furnishing any of the work or services herein. The contractor shall be solely responsible for performance of the entire contract whether or not subcontractors are used. The Commonwealth shall not be involved in the relationship between the prime contractor and the subcontractor.

Any issues that arise as a result of this relationship shall be resolved by the prime contractor.

All references to the contractor shall be construed to encompass both the contractor and any subcontractors of the contractor.

Section 31 Federal Tax Exempt Purchases by the Commonwealth of Kentucky Contracts Direct with Manufacturer: In the event a manufacturer bids direct and is awarded a contract, the Office of Procurement Services shall request the contractor to furnish evidence of registration with the U.S. Internal Revenue Service. This registration shall be in accordance with the “Temporary Rules, 1958 Excise Tax Act”. After such registration, individual Excise Tax Exemption Certificates are not necessary on each individual order issued against the contract by the Office of Procurement Services. Therefore, quoted prices must be exclusive of Federal Excise Taxes.

Contract With Other Than Manufacturer: If successful bidder is other than the manufacturer, the Office of Procurement Services will furnish a Tax Exemption Certificate with each individual order issued against this contract. Therefore, quoted prices must be exclusive of Federal Excise Taxes.

Section 32 EEO Requirements

Document Description Page 18 mailto:sheila.durham@ky.gov

The Equal Employment Opportunity Act of 1978 applies to All State government projects with an estimated value exceeding $500,000. The contractor shall comply with all terms and conditions of the Act.

https://finance.ky.gov/office-of-the-secretary/Pages/finance-forms.aspx (Click on Office of the Controller and scroll down to Procurement section.)

Section 33 Governing Law This contract shall be governed by and construed in accordance with the laws of the Commonwealth of Kentucky. Any action brought against the Commonwealth on the contract, including but not limited to actions either for breach of contract or for enforcement of the contract, shall be brought in Franklin Circuit Court, Franklin County, Kentucky in accordance with KRS 45A.245.

Section 34 Protest Pursuant to KRS 45A.285, the Secretary of the Finance and Administration Cabinet, or his designee, shall have authority to determine protests and other controversies of actual or prospective offerors in connection with the solicitations or selection for award of a contract.

Any actual or prospective offeror or contractor, who is aggrieved in connection with solicitation or selection for award of a contract, may file protest with the Secretary of the Finance and Administration Cabinet. A protest or notice of other controversy must be filed promptly and in any event within two (2) calendar weeks after such aggrieved person knows or should have known of the facts giving rise thereto. All protests or notices of other controversies must be in writing and shall be addressed and mailed to:

HOLLY M. JOHNSON, SECRETARY

COMMONWEALTH OF KENTUCKY

FINANCE AND ADMINISTRATION CABINET

200 MERO STREET, FIFTH FLOOR

FRANKFORT KY 40622

The Secretary of Finance and Administration Cabinet shall promptly issue a decision in writing. A copy of that decision shall be mailed or otherwise furnished to the aggrieved party and shall state the reasons for the action taken.

The decision by the Secretary of the Finance and Administration Cabinet shall be final and conclusive.

Section 35 Kentucky Tax Registration Application Revenue Form 10A100, Kentucky Tax Registration Application effective July 2008, is a form to be completed by any person or entity wishing to contract with the Commonwealth to provide goods or services subject to sales and use tax pursuant to KRS 139.200. The form is located at the following link: https://revenue.ky.gov/Forms/10A100.pdf

In accordance with administrative regulation 200 KAR 5:390, this form has to be completed and submitted, before a contract can be awarded. Section 2 of the regulation also notes:

“Failure to submit the required documentation or to remain registered and in compliance with the sales and use tax filing and remittance requirements of KRS 139.540 and KRS

139.550 throughout the duration of the contract shall constitute a material breach of the contract and the contract may be terminated.”

Document Description Page 19 https://finance.ky.gov/office-of-the-secretary/Pages/finance-forms.aspx

Section 36 Access to Records The state agency certifies that it is in compliance with the provisions of KRS 45A.695, "Access to contractor's books, documents, papers, records, or other evidence directly pertinent to the contract." The Contractor, as defined in KRS 45A.030, agrees that the contracting agency, the Finance and Administration Cabinet, the Auditor of Public Accounts, and the Legislative Research Commission, or their duly authorized representatives, shall have access to any books, documents, papers, records, or other evidence, which are directly pertinent to this agreement for the purpose of financial audit or program review. The Contractor also recognizes that any books, documents, papers, records, or other evidence, received during a financial audit or program review shall be subject to the Kentucky Open Records Act, KRS 61.870 to 61.884. Records and other prequalification information confidentially disclosed as part of the bid process shall not be deemed as directly pertinent to the agreement and shall be exempt from disclosure as provided in KRS 61.878(1)(c).

Section 37 Registration with the Secretary of State by a Foreign Entity Pursuant to KRS 45A.480(1)(b), an agency, department, office, or political subdivision of the Commonwealth of Kentucky shall not award a state contract to a person that is a foreign entity required by KRS 14A.9-010: to obtain a certificate of authority to transact business in the Commonwealth (“certificate”) from the Secretary of State under KRS 14A.9-030: https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=40424 therefore, foreign entities should submit a copy of their certificate with their solicitation response.

If the foreign entity is not required to obtain a certificate as provided in KRS 14A.9-010: https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=44318, the foreign entity should identify the applicable exception in its solicitation response. Foreign entity is defined within KRS 14A.1-070:

https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=50474

Businesses can register with the Secretary of State at:

https://www.sos.ky.gov/bus/business-filings/OnlineServices/Pages/default.aspx

Section 38 Accessibility Vendor hereby warrants that the products or services to be provided under this contract comply with the…