Food Warehousing IFB (KD Final).v4 as approved (1).pdf

STATE OF MARYLAND

MARYLAND STATE DEPARTMENT OF EDUCATION (MSDE)

MULTI-STEP INVITATION FOR BIDS (MS-MS-IFB)

COMMERICAL FOOD DISTRIBUTION AND WAREHOUSING

OF U.S. DEPARTMENT OF AGRICULTURE FOODS

MS-IFB NUMBER R00R3600217

ISSUE DATE: FEBRUARY 1, 2023

NOTICE

A Prospective Bidder that has received this document from a source other than eMarylandMarketplace

(eMMA) https://procurement.maryland.gov should register on eMMA. See Section 4.2.

MINORITY BUSINESS ENTERPRISES ARE ENCOURAGED TO

RESPOND TO THIS SOLICITATION.

Title: Commercial Food Distribution and Warehousing of UDSA Food Solicitation #: R00R3600217

MS-IFB Document

MS-IFB for Maryland State Department of Education Page ii of 91

NO BID NOTICE/VENDOR FEEDBACK FORM

To help us improve the quality of State solicitations, and to make our procurement process more responsive and business friendly, please provide comments and suggestions regarding this solicitation.

Please return your comments with your response. If you have chosen not to respond to this solicitation, please email or fax this completed form to the attention of the Procurement Officer (see Key Information Summary Sheet below for contact information).

Title: Commercial Food Distribution and Warehousing of U.S. Department of Agriculture Foods Solicitation No: R00R3600217

1. If you have chosen not to respond to this solicitation, please indicate the reason(s) below:

� Other commitments preclude our participation at this time

� The subject of the solicitation is not something we ordinarily provide

� We are inexperienced in the work/commodities required

� Specifications are unclear, too restrictive, etc. (Explain in REMARKS section)

� The scope of work is beyond our present capacity

� Doing business with the State is simply too complicated. (Explain in REMARKS section)

� We cannot be competitive. (Explain in REMARKS section)

� Time allotted for completion of the Bid is insufficient

� Start-up time is insufficient

� Bonding/Insurance requirements are restrictive (Explain in REMARKS section)

� Bid requirements (other than specifications) are unreasonable or too risky (Explain in REMARKS section)

� MBE or VSBE requirements (Explain in REMARKS section)

� Prior State of Maryland contract experience was unprofitable or otherwise unsatisfactory.

(Explain in REMARKS section)

� Payment schedule too slow

� Other: __________________________________________________________________

2. If you have submitted a response to this solicitation, but wish to offer suggestions or express concerns, please use the REMARKS section below. (Attach additional pages as needed.)

REMARKS:

Vendor Name: ________________________________ Date: _______________________

Contact Person: _________________________________ Phone (____) _____ - _________________

Address: ______________________________________________________________________

E-mail Address: ________________________________________________________________

MS-IFB for Maryland State Department of Education Page iii of 91

STATE OF MARYLAND

MARYLAND STATE DEPARTMENT OF EDUCATION (MSDE)

KEY INFORMATION SUMMARY SHEET

Invitation for Bids Services: Commercial Food Distribution and Warehousing of U.S.

Department of Agriculture Foods

Solicitation Number: R00R3600217

MS-IFB Issue Date: February 1, 2023

MS-IFB Issuing Office: Maryland State Department of Education (MSDE or the "Department")

Procurement Officer: Kenya DeCosta 200 W. Baltimore Street, 2nd Floor, Baltimore, MD 21201 e-mail:

Office Phone:

Kenyatta.decosta@maryland.gov 410-767-2072

Bids are to be sent to: Submit Via eMMA

Pre-Bid Conference: Tuesday, February 7, 2023, 10–11 am Video call link: https://meet.google.com/jpa-hbhp-pam Or dial: 5372-295-(US) +1 402 PIN: 422 674 133#

Questions Due Date and Time February 13, 2023, 5 pm Local Time

Bid Due (Closing) Date and Time:

February 24, 2023, 5 pm Local Time Bidders are reminded that a completed Feedback Form is requested if a no-bid decision is made (see page iv).

Public Bid Opening Date, Time and Location

N/A

MBE Subcontracting Goal: 0% with no subgoals

VSBE Subcontracting Goal: 0%

Contract Type: Indefinite quantity with fixed unit prices.

Contract Duration: Five-year base period

Primary Place of Performance:

As proposed by Bidder

SBR Designation: No

Federal Funding: Yes

MS-IFB for Maryland State Department of Education Page iv of 91

TABLE OF CONTENTS – MS-IFB

1 Minimum Qualifications

1.1 Bidder Minimum Qualifications

2 Contractor Requirements: Scope of Work

2.1 Summary Statement

2.2 Background and Purpose

2.3 Responsibilities and Tasks

3 Contractor Requirements: General

3.1 Contract Initiation Requirements

3.2 End of Contract Transition

3.3 Invoicing

3.4 Liquidated Damages

3.5 Disaster Recovery and Data

3.6 Insurance Requirements

3.7 Security Requirements

3.8 Problem Escalation Procedure

3.9 SOC 2 Type 2 Audit Report

3.10 Minority Business Enterprise (MBE) Reports

3.11 Veteran Small Business Enterprise (VSBE) Reports

3.12 Work Orders

3.13 Additional Clauses

4 Procurement Instructions

4.1 Pre-Bid Conference

4.2 eMaryland Marketplace Advantage (eMMA)

4.3 Questions

4.4 Procurement Method

4.5 Bid Due (Closing) Date and Time

4.6 Multiple or Alternate Bids

4.7 Receipt, Opening and Recording of Bids

4.8 Confidentiality of Bids / Public Information Act Notice

4.9 Award Basis

4.10 Tie Bids

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4.11 Duration of Bids

4.12 Revisions to the MS-IFB

4.13 Cancellations

4.14 Incurred Expenses

4.15 Protest/Disputes

4.16 Bidder Responsibilities

4.17 Acceptance of Terms and Conditions

4.18 Bid/Proposal Affidavit

4.19 Contract Affidavit

4.20 Compliance with Laws/Arrearages

4.21 Verification of Registration and Tax Payment

4.22 False Statements

4.23 Payments by Electronic Funds Transfer

4.24 Prompt Payment Policy

4.25 Electronic Procurements Authorized

4.26 MBE Participation Goal

4.27 VSBE Participation Goal

4.28 Living Wage Requirements

4.29 Federal Funding Acknowledgement

4.30 Conflict of Interest Affidavit and Disclosure

4.31 Non-Disclosure Agreement

4.32 HIPAA - Business Associate Agreement

4.33 Nonvisual Access

4.34 Mercury and Products That Contain Mercury

4.35 Location of the Performance of Services Disclosure

4.36 Department of Human Services (DHS) Hiring Agreement

4.37 Small Business Reserve (SBR) Procurement

4.38 Bonds

4.39 Maryland Healthy Working Families Act Requirements

5 Bid Format

5.1 One Part Submission

5.2 Labeling

5.3 Bid Price Form

5.4 Required Bid Submission

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5.5 Delivery

5.6 Documents Required upon Notice of Recommendation for Contract Award

6 Bid Evaluation and Award

6.1 Bid Evaluation Criteria

6.2 Reciprocal Preference

6.3 Award Determination

6.4 Documents Required upon Notice of Recommendation for Contract Award

7 MS-IFB ATTACHMENTS AND APPENDICES

Attachment A. Pre-Bid Conference Response Form

Attachment B. Bid Instructions & Form

Attachment C. Bid/Proposal Affidavit

Attachment D. Minority Business Enterprise (MBE) Forms

Attachment E. Veteran-Owned Small Business Enterprise (VSBE) Forms

Attachment F. Maryland Living Wage Affidavit of Agreement for Service Contracts

Attachment G. Federal Funds Attachments

Attachment H. Conflict of Interest Affidavit and Disclosure

Attachment I. Non-Disclosure Agreement (Contractor)

Attachment J. HIPAA Business Associate Agreement

Attachment K. Mercury Affidavit

Attachment L. Location of the Performance of Services Disclosure

Attachment M. Contract

Attachment N. Contract Affidavit

Attachment O. DHS Hiring Agreement

Appendix 1. – Abbreviations and Definitions

Appendix 2. – Bidder Information Sheet……………………………………………………………………...78

Appendix 3.. – Eastern RegionDelivery Quantities and Locations

Appendix 4. - Western Region Delivery Quantities and Locations………………………………………90

MS-IFB for Maryland State Department of Education Page 1 of 91

1 Minimum Qualifications

1.1 Bidder Minimum Qualifications

As part of the determination to be considered responsive, the Bidder must document in its Bid that it satisfies the following Minimum Qualifications:

1.1.1 The Bidder shall have storage areas that can handle the volume of USDA food as detailed in the scope of work in Section 3.2.1.A. As proof of meeting this requirement, Bidders must submit evidence of storage capacity through photographs and a copy of a warehouse building blueprint indicating the size of the storage area to accommodate the volume of USDA food.

1.1.2 The Bidder shall have a pest treatment plan with a current certificate of inspection provided by a licensed pest control company. As proof of meeting this requirement Bidders must submit a copy of the most current inspection report and/or certificate of inspection.

1.1.3 The Bidder shall have a loading dock capable of handling three tractor trailers each of approximate length of 53-feet simultaneously (indicating that Bidders company can handle the volume of USDA food). As proof of meeting this requirement, Bidders must submit three to five photographs that clearly demonstrate this requirement. Submit at least one picture to show all three bays unless on more than one side of the building (may have up to five pictures) and one picture to show the depth of the platform from the bay doors enough to accommodate 53’ trailers.

1.1.4 The Bidder shall have storage areas at proper temperatures (dry 50 to 70 degrees Fahrenheit, refrigerated 32 to 40 degrees Fahrenheit, frozen below zero degrees Fahrenheit). As proof of meeting this requirement, Bidders must submit temperature log for dry, refrigerated, and frozen temperatures over the most recent 30 days.

THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.

MS-IFB for Maryland State Department of Education Page 2 of 91

2 Contractor Requirements: Scope of Work

2.1 Summary Statement

2.1.1 The Maryland State Department of Education (MSDE or the "Department" is issuing this Multi-

Step Invitation for Bids (MS-MS-IFB) in order to procure the services defined in this Section 2, as specified in this MS-MS-IFB, from a contract between the successful bidder(s) and the Maryland State Department of Education: Receive, deliver, and store perishable and/or nonperishable USDA food.

2.1.2 It is the State’s intention to obtain goods and services, as specified in this MS-IFB, from a Contract between the selected Bidder and the State.

2.1.3 The Department intends to make a single award for the work under this MS-IFB. See MS-IFB Section 4.9 Award Basis for more Contract award information.

2.1.4 A Bidder, either directly or through its subcontractor(s), must be able to provide all goods and services and meet all of the requirements requested in this solicitation and the successful Bidder (the Contractor) shall remain responsible for Contract performance regardless of subcontractor participation in the work.

2.1.5 Maryland State and local entities as defined in Finance and Procurement §13-110(a) and nonprofit entities within the State of Maryland may purchase from the Contractor goods or services covered by the Contract at the same prices chargeable to the State. All such purchases by non-executive branch entities, non-State governments, government agencies or nonprofit entities:

Shall constitute Contracts between the Contractor and that entity;

Shall not constitute purchases by the State or State agencies under the Contract;

Shall not be binding or enforceable against the State; and

May be subject to other terms and conditions agreed to by the Contractor and the purchaser.

2.1.6 All Contract prices, terms, and conditions must be provided to any Maryland local government or nonprofit entity requesting services under the Contract. The Contractor bears the risk of determining whether or not a government, agency or organization with which the Contractor is dealing is a State entity.

2.2 Background and Purpose

The Maryland State Department of Education (MSDE) is issuing this Invitation for Bid (IFB) to obtain services of a commercial distributor to receive, issue, deliver, and store U.S. Department of Agriculture (USDA) donated food for MSDE, to be allocated to designated Recipient Agencies in two regions throughout the State of Maryland. The two regions are Eastern Maryland and Western Maryland regions.

It is the State’s intention to obtain services, as specified in this IFB, from a Contract between the selected Bidder(s) and the State. The anticipated duration of services to be provided under this Contract is five years. See Section 1.4 for more information.

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The Contract(s) shall be awarded to the responsible and responsive Bidder(s) submitting the most favorable Total Evaluated Bid Price (as referenced in COMAR 21.05.02.13) for providing the services as specified in this IFB. The Department may award up to two contracts. Bidders may bid on one or more regions by completing the Attachment F Bid Forms. There is a separate Bid Form for the Eastern Region and a separate Bid Form for the Western Region.

A Bidder, either directly or through its subcontractor(s), must be able to provide all services and meet all of the requirements requested in this solicitation and the successful Bidder (the Contractor) shall remain responsible for Contract performance regardless of subcontractor participation in the work.

2.21 State Responsibilities

a) The State will provide normal office working facilities and equipment reasonably necessary for Contractor performance under the Contract. Any special requirements (e.g., reprographic services, computer time, key data entry) shall be identified.

b) The State is responsible for providing required information, data, documentation, and test data to facilitate the Contractor’s performance of the work and will provide such additional assistance and services as is specifically set forth.

2.3 Responsibilities and Tasks

General Responsibilities

Receive, deliver, and store perishable and/or nonperishable USDA food.

A. Receive USDA Food

1. Contractor receives, delivers, and stores both perishable and nonperishable products. This IFB is directed toward vendors who operate as a Contractor and receive, deliver, and store both perishable and nonperishable products.

2. The Contractor is responsible for all USDA food received and must have loading dock ramps to accommodate at least three, 53-foot tractor-trailers.

3. The Contractor shall inspect shipments for condition and temperature on arrival;

verify accuracy of count and acceptability of proper count, temperature, and quality condition of the product and packaging.

4. The Contractor shall input shipment data in WBSCM or the equivalent of a new federal computer system within 48 hours of receiving shipment.

5. The Contractor shall notify the MSDE Contract Monitor, before truck is released, of any incident of refusing more than one pallet of USDA food due to quality issues.

6. If USDA food does not match what is on the invoice or is damaged, notify the shipper and document all findings in the paperwork. The Contractor shall be financially responsible for failure to inspect deliveries resulting in shortages

MS-IFB for Maryland State Department of Education Page 4 of 91 and/or damages to USDA food or packages that make them unacceptable to MSDE. Some examples are infestation of USDA food due to improper storage conditions, as well as physical damages to containers due to improper handling by the Contractor.

7. The Contractor(s) is responsible for all freight demurrage and detention charges.

8. The Contractor(s) shall have sufficient space to receive all inbound freight (all inbound food shipments are available in WBSCM. Estimates are in Exhibits A and B). Abnormal peak loads shall be at no additional cost to MSDE for the RA.

9. Contractor’s refusal to receive USDA food cannot be based on lack of Contractor capacity.

2.3.1 Volume, Items, Recipient Agencies, Deliveries

The geographic areas covered by the IFB include the two regions of Maryland. A Contractor’s bid shall include all authorized recipients in the geographic region. Additions or deletions of authorized recipients made during the contract period shall be covered under the contract. A Contractor may bid on one or two of the Regions. MSDE reserves the right to award bids from one or both regions.

A. Volume

1. Appendices 3 and 4 list the total number of cases of Foods distributed to RAs and their delivery locations located in the Eastern and Western geographic regions in School Year (SY) 2022. The approximate number of USDA Foods line items categorized according to Warehouse requirements are as follows:

USDA Food Type Approx Slot Location # Dry groceries 14 Frozen 11 Refrigerated 4 Total 29

MSDE anticipates that the volume of USDA FOODS distributed within each geographic region for each year of the MS-IFB shall approximate the average for the year listed; however, volume is not guaranteed. Processed items (i.e., chicken nuggets), containing USDA Foods may be added, or deleted, at the option of MSDE and/or RA. Note: Upon contract award MSDE and/or LEAs will discuss quantities at that time; this is not a condition of the initial award.

B. Items

1. Based on the 2021-2022 (SY22) program year, the number of USDA Foods type available under this contract shall be approximately 29; however, approximately 25 USDA Foods will be carried in inventory at any one time. On the average, a case of USDA FOODS weighs approximately 40 pounds and measures 1.1 cubic feet.

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C. Recipient Agencies

1. There are approximately nine Recipient Agencies in the Eastern Region and eleven in the Western Region. There are four additional Recipient Agencies in the Western Region who currently do not participate in the program who could begin participation at any time during this contract. MSDE Unallocated is in both regions and does not require any delivery of USDA Foods, only storage.

2. It shall be understood by the Contractor, that case volume and the number of agencies eligible to receive USDA FOODS within each geographic region is an estimate and subject to change at any time. The volume of USDA FOODS available to MSDE from the USDA is often beyond the control of MSDE. Therefore, an agreement executed because of the IFB will not obligate MSDE to a specific case volume of USDA FOODS, nor will MSDE be obligated to a minimum or maximum number of Recipient Agencies authorized to receive

USDA FOODS.

D. Deliveries

1. The Contractor will work with the Recipient Agencies to determine mutually agreeable delivery day(s) and times. All deliveries must be on weekdays between the hours of 7AM and 2PM. The contractor must make alternate delivery arrangements with Recipient Agencies whose scheduled delivery day(s) falls when schools are closed due to holidays, weather, or any other reason. USDA Foods may be shipped with commercial products. The minimum delivery amount per stop is 25 cases.

2. Bidders should know that all delivery sites may not provide state of the art unloading and food handling facilities. Some sites may not accommodate trailer rigs and may not be easily accessible with trucks more than 27 feet in length. Lift gates are highly recommended. The Contractor/driver is responsible for unloading the truck and delivering the products to the designated area.

3. Upon delivery, each school site will check for external and internal damage, cleanliness, defects, spoilage, count, temperature, and any other inspections deemed necessary by the designated school representative (“Food Service Supervisor”). The designated school representative will make the final disposition if a product is acceptable. Unacceptable products will be returned to the contractor’s facility and noted on the invoice. A delivery is considered complete when products have been placed by the contractor/driver in the designated area and the delivery ticket has been signed by the designated Food Service Supervisor.

2.3.2 Inbound Shipments

A. Schedules

1. The Contractor shall assist MSDE in coordinating inbound shipments. The coordination parameters for scheduling are as follows:

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USDA FOODS are ordered from the USDA by MSDE and scheduled for arrival during predictable shipping periods; therefore, the Contractor will know in advance the types and quantity of USDA FOODS to be received and to whom it is allocated.

2. The Contractor shall use The Web Based Supply Chain Management System (WBSCM), https://WBSCM.usda.gov, to view all USDA FOODS orders assigned to their location, the recipients of each order, and the expected delivery time of each order. The Contractor is expected to work closely with MSDE to efficiently manage inbound shipments and inventory levels. Contractor must deliver foods for each order to each location listed in Appendix 3 and 4 and, as needed, any other locations receiving food under the Contract.

B. Load Sizes and Shipping Methods

1. Inbound shipments will normally arrive one item per load (approximately 200- 2,000 cases) in full or partial trailer loads.

MSDE requests all shipments to be palletized or slip sheeted; however, no guarantee is made that shipments will arrive as requested. Any adjustments of inbound shipments, particularly regarding pallet sizes, stacking ties and heights (made for the convenience of the Contractor) shall be at the Contractor’s expense. Any pallets required for storage and/or shipping of USDA products should be provided at no charge and remain property of the Contractor. Truckers are required to tailgate product for all USDA FOODS loads. All shipments must be accepted regardless of the shipping and/or loading methods if the USDA and MSDE consider shipping and loading methods acceptable. Shippers are required to schedule receiving appointments at least 72 hours in advance. All appointments will be made by using the USDA “Sales Order Number” or the USDA “Purchase Order” which can both be found in WBSCM. It is the Contractor’s responsibility to notify MSDE of any deviations from this procedure.

2. If the Contractor wishes to contact suppliers/shippers concerning methods and/or dates of shipments or loading, the name of the supplier can be obtained from the USDA "Advance Shipment Notice,” which is emailed directly to the Contractor.

3. If there are questions concerning the condition of a shipment on arrival, the

Contractor shall call MSDE immediately for acceptance instructions. The Contractor must accept all shipments in accordance with USDA and/or MSDE instructions or acceptance guidelines.

C. Freight

1. USDA FOODS are shipped prepaid, product and freight. However, MSDE may elect to request and pay for additional drops on inbound shipments, in which case the Contractor shall cooperate with MSDE in making suitable arrangements with https://wbscm.usda.gov/

MS-IFB for Maryland State Department of Education Page 7 of 91 shippers and/or other receivers. No “lumping,” or unloading charges can be made to the truck driver, or trucking company, on any delivery of USDA Foods.

D. Product Transfers

1. MSDE, at any time, may decide to transfer USDA FOODS from the Contractor’s facility to that of another entity. When requested by MSDE, the Contractor must execute transfers within two (2) weeks of the request and make such transfers on exchangeable pallets. MSDE will pay for each transfer of USDA FOODS (delivered or picked up) at the contract price in effect at the time of the transfer.

E. Transition Responsibilities

1. The Contractor agrees to pick up and store, within 15 DAYS from the execution of the contract, and at no cost to MSDE, all cases of USDA FOODS from the contractors currently under contract with MSDE and serving the Region for which the Contractor is awarded a contract. At this time an initial physical inventory shall be taken by MSDE personnel.

F. Receiving Procedures

1. The Contractor is responsible for all USDA FOODS received. The Contractor must exercise the same care in receiving USDA FOODS as for its own product. Shipments must be inspected on arrival for condition and temperature, and for damage and infestation. Procedures for receiving inbound shipments are as follows:

i. Inspect shipments for condition on arrival and verify accuracy of count and acceptability.

ii. Receive shipment data in WBSCM within 48 hours of receiving shipment.

iii. Notify MSDE, before truck is released, of any incident of refusing more than one pallet of USDA FOODS due to quality issues: and

If USDA FOODS are over, damaged, or short, notify the trucker, document on all paperwork and receive appropriately in WBSCM within 48 hours of receipt.

2. The Contractor is responsible for the following:

i. Paying all freight demurrage and detention charges.

ii. Having sufficient Contractor space to absorb all inbound freight at abnormal peak loads at no additional cost to MSDE or Recipient Agencies; and

iii. Rotating USDA FOODS on a first in, first out (FIFO) basis and documenting rotation methods for MSDE.

The Contractor is liable for claims levied by the USDA or MSDE because of the failure to properly secure, handle, protect, or account for USDA FOODS received. This includes any USDA FOODS held by a subcontractor.

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G. Inventory Levels

1. MSDE attempts to maintain a six- to 12-week supply of all USDA FOODS;

however, inventory levels may surge beyond anticipated levels. The Contractor is expected to work closely with MSDE to project USDA FOODS usage and maintain reasonable inventory levels.

H. Stock Allocations

1. Standard practice of MSDE is to allocate all FOODS when they are ordered for

Recipient Agencies. These allocations can change at any time without notice until the order is received. All allocations are available in WBSCM. After orders are received, MSDE will notify the Contractor when it is necessary to re-allocate a USDA FOODS during the school year. When the USDA FOODS are received, the Recipient Agency orders the USDA FOODS using the Contractor ordering procedures. The Contractor shall issue only the quantity allocated to the Recipient Agency and is responsible for any shortages that occur due to the incorrect allocation of USDA FOODS.

2. MSDE may permit the Contractor to execute USDA FOODS allocations using the Contractor’s data processing equipment. The Contractor must not, however, execute USDA FOODS allocations without the prior approval of MSDE.

3. The Contractor must fully advise Recipient Agencies of its procedures for

Recipient Agencies must follow the Contractor's established ordering procedures.

Ordering procedures may vary during times of federal, state, and/or locally declared times of disaster. MSDE will be responsible for all costs incurred by the ordering and distribution of Foods outside the normal realm of business operations.

2.3.3 Distributor and Equipment Requirements

The Contractor must provide facilities adequate to service the volume of USDA FOODS indicated in Exhibits A1 and B1 of this document, including unusual surges in volume. MSDE reserves the right to examine, prior to the award of contract, the facilities of all vendors submitting bids to ensure that the Contractor submitting a bid is qualified.

The contractor must own or have the ability to lease, rent, or otherwise obtain vehicular equipment necessary to maintain an efficient delivery schedule for the volume of USDA Foods indicated in the exhibits of this document.

The Contractor must have adequate Contractor facilities to store either perishable or Nonperishable USDA FOODS as follows:

● Dry USDA FOODS: in an area with forced ventilation and temperatures between 50 degrees and 70 degrees Fahrenheit.

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● Frozen USDA FOODS: at temperatures between zero degrees Fahrenheit or below; and

● Refrigerated USDA FOODS: at temperatures between 32 degrees and 45 degrees Fahrenheit, depending on the item.

The Contractor must have freezer, refrigerator, and dry space capacity to accommodate pallet spaces in bulk at the rate of 20 pallets per 1,000 cases of USDA FOODS during peak inventory periods. Peak inventory usually occurs between the months of August and March.

A. Stock Rotation

1. All stock shall be rotated on a FIFO basis in accordance with acceptable Contractor practices. The Contractor must provide evidence of stock rotation upon request.

B. Food Safety Sanitation Requirements

1. USDA, MSDE, or other government officials for food safety and temperature compliance, may routinely inspect the Contractor’s facilities. At all times, Contractor facilities and warehousing practices must follow the United States Food, Drug and Cosmetic Act, USDA regulations, and governing state laws (Federal Regulations may be obtained by request). Trucks delivering USDA FOODS may be inspected at any time for sanitation and temperature by USDA, MSDE, or government officials.

C. Product Recall Plan

1. The contactor shall have a detailed Product Recall Plan on how they handle product recalls and implement its plan for any applicable product recall. The contractor shall provide MSDE staff with the name and contact information of at least two employees with 24/7/365 contact availability.

2.34 Liaison with Shippers, MSDE Officials, and Recipients

A. With Shippers

1. The Contractor may establish liaison with shippers (suppliers) with respect to shipping dates, loading methods, and back hauls. Shippers can be identified either from Advance Shipment Notices, which are emailed directly to the Contractor, or from weekly reports which may be requested directly from the Agricultural Marketing Service, which arranges transportation for the shipment of USDA FOODS.

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B. With MSDE Officials

1. The Contractor shall maintain constant liaison with MSDE officials on matters including but not limited to:

i. Inventory levels.

ii. Schedule of inbound shipments.

iii. Notices of shipment arrival; and

iv. Monthly activity and inventory reports.

C. With Recipient Agencies

1. The Contractor shall maintain constant liaison with Recipient Agencies by:

(a) Tracking utilization of all USDA FOODS by Recipient Agency, and

(b) Establishing a toll-free telephone number, website, or an electronic system for Recipient Agencies to place orders.

2.35 Reports

All documents, including Bills of Lading, which relate to the receipt of USDA FOODS at the

Contractor’s facility shall be on file at the Contractor's location (See A2). All reports should be submitted electronically with approval subject to MSDE’s acceptance.

A. Inventory

1. The Contractor shall maintain computerized perpetual inventory records for all

USDA FOODS.

2. The Contractor shall provide MSDE with a monthly Inventory Report no later than the 10th day of the following calendar month. Inventory reports shall show by USDA FOODS code the following:

(a) The quantity of USDA FOODS on hand at the first day of the month.

(b) The quantity received during the month.

(c) The quantity issued to each Recipient Agency during the month

(d) The quantity of USDA FOODS removed from the book inventory because of damage, shortages, cycle counts, etc.; and

(e) The quantity on hand at the last day of the month.

3. Transfers of USDA FOODS authorized by MSDE to or from other MSDE facilities under contract with MSDE must be tracked separately from receipts (from USDA shipper) and disbursements (to Recipient Agencies).

4. The Contractor shall conduct a physical inventory on specific USDA FOODS as directed by MSDE and provide the results to MSDE within two Business Days of the date the physical inventory was conducted. MSDE reserves the right to conduct a physical inventory with 48 hours advance notice. When MSDE conducts a physical inventory, the Contractor must cooperate and provide adequate staff to assist.

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B. Computer Capability

1. The Contractor must have high speed internet access. The Contractor will create a user account on WBSCM. Through the WBSCM interface, the Contractor will track expected deliveries throughout the year. Allocations to the Recipient Agencies are detailed on WBSCM reports and screens, which are available when the Contractor is a registered WBSCM user. The Contractor must receive all USDA Foods deliveries in WBSCM within 48 hours of receiving. MSDE will provide training on WBSCM to personnel identified by the Contractor. Total training will take less than one hour and can be completed virtually. The Contractor may not charge for time spent completing the training.

C. Record Keeping, Record Retention, and Review

1. The Contractor shall maintain records fully accounting for receipt and disposition of all USDA FOODS. Such records must be maintained for three years following the close of the federal fiscal year to which they pertain and must be available for review upon request of the USDA, MSDE, or their designees.

Signed invoices (proof of delivery) must be stored in an organized and easily accessible manner either manually or electronically.

2.36 Accountability

The Contractor shall be financially responsible for all USDA FOODS received and shall assume and bear the risk of all loss, damage or theft, or improper use of USDA FOODS while in the possession or control of the Contractor.

A. Shortages and Damages

1. If USDA food does not match what is on the invoice or is damaged, notify the shipper and document all findings in the paperwork. The Contractor shall be financially responsible for failure to inspect deliveries resulting in shortages and/or damages to USDA food or packages that make them unacceptable to MSDE. Some examples are infestation of USDA food due to improper storage conditions, as well as physical damages to containers due to improper handling by the Contractor.

2. A year-end physical inventory shall be taken by August 15th of each year of the contract period. The physical inventory figures shall be compared against MSDE’s book inventory figures. Basic USDA FOODS overages and shortages will be reconciled by comparing the value of shortages and overages based on the Entitlement/Bonus Detail Report from WBSCM provided by MSDE. If the value of shortages exceeds the value of overages, a monetary value for the differences shall be owed MSDE within thirty (30) days after inventory reconciliation. If the value of overages exceeds the value of shortages, either party requires no inventory reconciliation. In adjusting overages and shortages, inventory shrinkage of .5 percent (.5%) may be allowed in compliance with USDA Food and Nutrition Service Regulations. The beginning book balance shall be adjusted

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B Direct Delivery Agencies

1. MSDE reserves the right to make direct shipments of USDA FOODS to large Recipient Agencies (or their representatives) as determined by MSDE.

C. Licenses/Certificates

1. If the Contractor is a corporation, it must be incorporated in Maryland or have a certificate of authority to conduct business in Maryland. A reference to the corporate box number and a list of the Officers of the corporation shall be provided upon MSDE’s request.

2. The Contractor must maintain and provide evidence of membership in a public warehousing association or distributor association dedicated to the development and maintenance of high-performance standards for its members.

D. Prime Contractor Responsibilities

1. The Contractor shall assume responsibility for all services required by the IFB whether provided by the Contractor or an approved subcontractor. In addition, MSDE will consider the Contractor to be the sole point of contact regarding contract matters.

2. The approved Subcontractor must accept all USDA FOODS shipped to the

Contractor by the USDA. Refusal to receive a USDA FOODS cannot be based on lack of Contractor capacity. The Contractor must provide upon request a contingency plan for storage of USDA FOODS should Contractor capacity be exceeded due to expansion of the program or the expansion of the Contractor’s commercial accounts at its primary storage facility (ies).

3. The Contractor must report its intent to subcontract for facilities and services under the IFB to MSDE and if awarded the contract, receive MSDE approval to subcontract facilities and services in advance. The Contractor shall be held responsible for subcontractor performance.

2.37 MSDE Supplied Services and Facilities

MSDE will provide the following support to the successful Offeror:

1. Meeting space in Baltimore or in the Central Maryland region to discuss with Contractor representatives any problems that have persisted in the delivery of services or the coordinating and planning of any changes in technology.

2. Access and training on WBSCM.

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2.38 Deliverables and Timelines

The Contractor shall:

1. Begin operations on September 1, 2023, through August 31, 2028, providing storage and distribution services to eligible Recipient Agencies.

2. Within 15 days of the start of the contract, the Contractor agrees to pick up and store, at no cost to MSDE all cases of USDA FOODS currently stored by the previous Contractor. This transfer must be completed by September 15, 2023.

3. Provide MSDE with computerized reports by the deadlines detailed previously in Section 3.2.5 Reports.

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3 Contractor Requirements: General

3.1 Contract Initiation Requirements

This section is inapplicable to this MS-IFB.

3.2 End of Contract Transition

3.2.1 The Contractor shall provide transition assistance as requested by the State to facilitate the orderly transfer of services to the State or a follow-on contractor, for a period up to 60 days prior to Contract end date, or the termination thereof. Such transition efforts shall consist, not by way of limitation, of:

a) Provide additional services and support as requested to successfully complete the transition;

b) Maintain the services called for by the Contract at the required level of proficiency;

c) Provide updated System Documentation (see Appendix 1), as appropriate; and

d) Provide current operating procedures (as appropriate).

3.2.2 The Contractor shall work toward a prompt and timely transition, proceeding in accordance with the directions of the Contract Monitor. The Contract Monitor may provide the Contractor with additional instructions to meet specific transition requirements prior to the end of the Contract.

3.2.3 The Contractor shall ensure that all necessary knowledge and materials for the tasks completed are transferred to the custody of State personnel or a third party, as directed by the Contract Monitor.

3.2.4 The Contractor shall support end-of-Contract transition efforts with technical and project support to include but not be limited to:

a) The Contractor shall provide a draft Transition-Out Plan 120 Business Days in advance of Contract end date.

The Transition-Out Plan shall address at a minimum the following areas:

1) Any staffing concerns/issues related to the closeout of the Contract;

2) Communications and reporting process between the Contractor, the Department and the Contract Monitor;

3) Security and system access review and closeout;

4) Any hardware/software inventory or licensing including transfer of any point of contact for required software licenses to the Department or a designee;

5) Any final training/orientation of Department staff;

6) Connectivity services provided, activities and approximate timelines required for Transition-Out;

7) Knowledge transfer, to include:

a) A working knowledge of the current system environments;

b) Review with the Department the procedures and practices that support the business process and current system environments;

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c) Working knowledge of all technical and functional matters associated with the solution, its architecture, data file structure, interfaces, any batch programs, and any hardware or software tools utilized in the performance of the Contract;

d) Documentation that lists and describes all hardware and software tools utilized in the performance of the Contract;

8) Plans to complete tasks and any unfinished work items (including open change requests, and known bug/issues); and

9) Any risk factors with the timing and the Transition-Out schedule and transition process.

The Contractor shall document any risk factors and suggested solutions.

The Contractor shall ensure all documentation and data including, but not limited to, System Documentation and current operating procedures, is current and complete with a hard and soft copy in a format prescribed by the Contract Monitor.

The Contractor shall provide copies of any current daily and weekly back-ups to the Department or a third party as directed by the Contract Monitor as of the final date of transition, but no later than the final date of the Contract.

Access to any data or configurations of the furnished product and services shall be available after the expiration of the Contract as described in Section 3.2.5.

3.2.5 Return and Maintenance of State Data

a) Upon termination or the expiration of the Contract Term, the Contractor shall: (a) return to the State all State data in either the form it was provided to the Contractor or in a mutually agreed format along with the schema necessary to read such data; (b) preserve, maintain, and protect all State data until the earlier of a direction by the State to delete such data or the expiration of 90 days (“the retention period”) from the date of termination or expiration of the Contract term; (c) after the retention period, the Contractor shall securely dispose of and permanently delete all State data in all of its forms, such as disk, CD/DVD, backup tape and paper such that it is not recoverable, according to National Institute of Standards and Technology (NIST)-approved methods with certificates of destruction to be provided to the State; and (d) prepare an accurate accounting from which the State may reconcile all outstanding accounts. The final monthly invoice for the services provided hereunder shall include all charges for the 90-day data retention period.

b) During any period of service suspension, the Contractor shall maintain all State data in its then existing form, unless otherwise directed in writing by the Contract Monitor.

c) In addition to the foregoing, the State shall be entitled to any post-termination/expiration assistance generally made available by Contractor with respect to the services.

3.3 Invoicing

3.3.1 General

a) The Contractor shall e-mail the original of each invoice and signed authorization to invoice to the Contract Monitor Michael Birkmeyer at the e-mail address:

Michael.birkmeyer@maryland.gov

All invoices for services shall be verified by the Contractor as accurate at the time of submission.

mailto:Michael.birkmeyer@maryland.gov

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An invoice not satisfying the requirements of a Proper Invoice (as defined in COMAR 21.06.09) cannot be processed for payment. To be considered a Proper Invoice, invoices must include the following information, without error:

1) Contractor name and address;

2) Remittance address;

3) Federal taxpayer identification (FEIN) number, social security number, as appropriate;

4) Invoice period (i.e. time period during which services covered by invoice were performed);

5) Invoice date;

6) Invoice number;

7) State assigned Contract number;

8) State assigned (Blanket) Purchase Order number(s);

9) Goods or services provided;

10) Amount due; and

11) Any additional documentation required by regulation or the Contract.

Invoices that contain both fixed price and time and material items shall clearly identify each item as either fixed price or time and material billing.

The Department reserves the right to reduce or withhold Contract payment in the event the Contractor does not provide the Department with all required deliverables within the time frame specified in the Contract or otherwise breaches the terms and conditions of the Contract until such time as the Contractor brings itself into full compliance with the Contract.

Any action on the part of the Department, or dispute of action by the Contractor, shall be in accordance with the provisions of Md. Code Ann., State Finance and Procurement Article §§ 15-215 through 15-223 and with COMAR 21.10.04.

The State is generally exempt from federal excise taxes, Maryland sales and use taxes, District of Columbia sales taxes and transportation taxes. The Contractor, however, is not exempt from such sales and use taxes and may be liable for the same.

Invoices for final payment shall be clearly marked as “FINAL” and submitted when all work requirements have been completed and no further charges are to be incurred under the Contract. In no event shall any invoice be submitted later than 60 calendar days from the Contract termination date.

3.3.2 Invoice Submission Schedule

The Contractor shall invoice the customer for all applicable charges upon delivery of USDA Foods. The Contractor will send an invoice directly to the customer’s monthly for the previous month’s storage charges. The Contractor shall send MSDE an invoice by the tenth calendar day of the month for all items in storage on the first calendar day of the month under the MSDE account.

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3.3.3 For the purposes of the Contract an amount will not be deemed due and payable if:

a) The amount invoiced is inconsistent with the Contract;

b) The proper invoice has not been received by the party or office specified in the Contract;

c) The invoice or performance is in dispute or the Contractor has failed to otherwise comply with the provisions of the Contract;

d) The item or services have not been accepted;

e) The quantity of items delivered is less than the quantity ordered;

f) The items or services do not meet the quality requirements of the Contract;

g) If the Contract provides for progress payments, the proper invoice for the progress payment has not been submitted pursuant to the schedule;

h) If the Contract provides for withholding a retainage and the invoice is for the retainage, all stipulated conditions for release of the retainage have not been met; or

i) The Contractor has not submitted satisfactory documentation or other evidence reasonably required by the Procurement Officer or by the Contract concerning performance under the Contract and compliance with its provisions.

3.3.4 Travel Reimbursement

Travel will not be reimbursed under this MS-IFB.

3.4 Liquidated Damages

3.4.1 MBE Liquidated Damages

Inapplicable because there is no MBE goal for this MS-IFB.

3.4.2 Liquidated Damages other than MBE

THIS SECTION IS INAPPLICABLE TO THIS MS-IFB.

3.5 Disaster Recovery and Data

The following requirements apply to the Contract:

3.5.1 Redundancy, Data Backup and Disaster Recovery

a) Unless specified otherwise in the MS-IFB, Contractor shall maintain or cause to be maintained disaster avoidance procedures designed to safeguard State data and other confidential information, Contractor’s processing capability and the availability of hosted services, in each case throughout the Contract term. Any force majeure provisions of the Contract do not limit the Contractor’s obligations under this provision.

b) The Contractor shall have robust contingency and disaster recovery (DR) plans in place to ensure that the services provided under the Contract will be maintained in the event of disruption to the Contractor/subcontractor’s operations (including, but not limited to, disruption to information technology systems), however caused.

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1) The Contractor shall furnish a DR site.

2) The DR site shall be at least 100 miles from the primary operations site, and have the capacity to take over complete production volume in case the primary site becomes unresponsive.

c) The contingency and DR plans must be designed to ensure that services under the Contract are restored after a disruption within twenty-four (24) hours from notification and a recovery point objective of one (1) hour or less prior to the outage in order to avoid unacceptable consequences due to the unavailability of services.

d) The Contractor shall test the contingency/DR plans at least twice annually to identify any changes that need to be made to the plan(s) to ensure a minimum interruption of service.

Coordination shall be made with the State to ensure limited system downtime when testing is conducted. At least one (1) annual test shall include backup media restoration and failover/fallback operations at the DR location. The Contractor shall send the Contract Monitor a notice of completion following completion of DR testing.

e) Such contingency and DR plans shall be available for the Department to inspect and practically test at any reasonable time, and subject to regular updating, revising, and testing throughout the term of the Contract.

3.5.2 Data Export/Import

a) The Contractor shall, at no additional cost or charge to the State, in an industry standard/non-proprietary format:

1) perform a full or partial import/export of State data within 24 hours of a request; or

2) provide to the State the ability to import/export data at will and provide the State with any access and instructions which are needed for the State to import or export data.

b) Any import or export shall be in a secure format per the Security Requirements.

3.5.3 Data Ownership and Access

a) Data, databases and derived data products created, collected, manipulated, or directly purchased as part of a MS-IFB are the property of the State. The purchasing State agency is considered the custodian of the data and shall determine the use, access, distribution and other conditions based on appropriate State statutes and regulations.

Public jurisdiction user accounts and public jurisdiction data shall not be accessed, except (1) in the course of data center operations, (2) in response to service or technical issues, (3) as required by the express terms of…