Federal Supply Schedule GS00F0046L

Authorized Information Technology Schedule Price List www.ideal.com

GS-00F-0046L Page 1

AUTHORIZED FEDERAL SUPPLY

SERVICE INFORMATION

TECHNOLOGY SCHEDULE

PRICE LIST

GENERAL PURPOSE COMMERCIAL

INFORMATION TECHNOLOGY EQUIPMENT,

SOFTWARE AND SERVICES

Special Item Numbers (SIN) Products/Services

Purchase of Equipment

C 7025 .......................................... Input/Output and Storage Devices C N070 .......................... Installation, Deinstallation and Reinstallation

Repair Service of Equipment

C J070 ......................................................................... Repair Service

Term and Perpetual Software Licenses

C 7030 ........... Microcomputer Application Software and Maintenance

Contractor:

IDEAL Scanners & Systems, Inc.

11810 Parklawn Drive Rockville, MD 20852

1-800-76-IDEAL

Contract Number: GS-00F-0046L

Period Covered By Contract: July 9, 2001 through July 5, 2011

General Services Administration Federal Supply Service

Products and ordering information in this Authorized FSS Information Technology Schedule Pricelist are also available on the GSA Advantage!

System. Ordering activities can browse GSA Advantage! by accessing the Federal Supply Service’s Home Page via the Internet at http://www.fss.gsa.gov/.

TABLE OF CONTENTS

Section Page

Information for Ordering Activities Applicable to all Special Item Numbers

Terms and Conditions Applicable to Purchase of General Purpose Commercial Information Technology Equipment

Terms and Conditions Applicable to Repair Service for Government- Owned General Purpose Commercial Information Technology Equipment (After Expiration of Guarantee/Warranty Provisions and/or When Required Service is not Covered by Guarantee/Warranty Provisions)

Terms and Conditions Applicable to Term Software License, Perpetual Software License and Maintenance of Software of General Purpose Commercial Information Technology Software Licenses

USA Commitment to Promote Small Business Participation Procurement Programs

Suggested Formats for Blanket Purchase Agreements

Basic Guidelines for Using Contractor Team Arrangements

On-Site Warranty Zones

Authorized Government Resellers

Equipment Price List

CONTRACT MODIFICATIONS

This Schedule Contract Price List includes Modifications through

Number 43, effective 06/18/2010.

GS-00F-0046L Page 2

INFORMATION FOR ORDERING

ACTIVITIES APPLICABLE TO ALL

SPECIAL ITEM NUMBERS

SPECIAL NOTICE TO AGENCIES

Small Business Participation

SBA strongly supports the participation of small business concerns in the Federal Supply Schedules Program. To enhance Small Business Participation SBA policy allows agencies to include in their procurement base and goals, the dollar value of orders expected to be placed against the Federal Supply Schedules, and to report accomplishments against these goals.

For orders exceeding the micropurchase threshold, FAR 8.404 requires agencies to consider the catalogs/pricelists of at least three schedule contractors or consider reasonably available information by using the GSA Advantage! on-line shopping service (www.fss.gsa.gov). The catalogs/pricelists, GSA Advantage! and the Federal Supply Service Home Page (www.fss.gsa.gov) contain information on a broad array of products and services offered by small business concerns.

This information should be used as a tool to assist ordering activities in meeting or exceeding established small business goals.

It should also be used as a tool to assist in including small, small disadvantaged, and women-owned small businesses among those considered when selecting pricelists for a best value determination.

For orders exceeding the micropurchase threshold, customers are to give preference to small business concerns when two or more items at the same delivered price will satisfy their requirement.

1. GEOGRAPHIC SCOPE OF CONTRACT:

The geographic scope of this contract is the 48 contiguous states, the District of Columbia, Alaska, Hawaii, the Commonwealth of Puerto Rico and all other overseas locations. The geographic scope is the same for all items offered under this contract.

2. CONTRACTOR ORDERING ADDRESS AND PAYMENT

INFORMATION:

a. ORDERING ADDRESS.

11810 Parklawn Drive Rockville, MD 20852 Attn: Sales Administration

AND/OR Authorized Government Reseller

b. PAYMENT ADDRESS.

IDEAL Scanners & Systems, Inc.

11810 Parklawn Drive Rockville, MD 20852 Attn: Accounts Receivable

AND/OR Authorized Government Reseller

c. GOVERNMENT CREDIT CARDS. Contractors are required to accept credit cards for payments equal to or less than the micro-purchase threshold for oral or written delivery orders. Credit cards will be acceptable for payment above the micro-purchase threshold. In addition, bank account information for wire transfer will be printed on the invoice.

d. TECHNICAL AND/OR ORDERING ASSISTANCE. The following telephone number(s) that can be used by ordering activities to obtain technical and/or ordering assistance:

Technical Assistance ................................. (800) 76-IDEAL Ordering Assistance ................................... (800) 76-IDEAL

3. LIABILITY FOR INJURY OR DAMAGE:

The Contractor shall not be liable for any injury to ordering activity personnel or damage to ordering activity property arising from the use of equipment maintained by the Contractor, unless such injury or damage is due to the fault or negligence of the Contractor.

4. STATISTICAL DATA FOR GOVERNMENT ORDERING

OFFICE COMPLETION OF STANDARD FORM 279:

a. Information for Field Buying Offices to Complete Standard

Form 279, Federal Procurement Data System (FPDS) Individual Contract Action Report.

Block 9: G (Order/Modification Under Federal

Schedule).

Block 16: Data Universal Numbering System (DUNS) number is 07-2655012 Block 30: Type of Contractor is (B) Other Small

Business.

Block 31: Woman-Owned Small Business (No).

Block 36: Contractor's Taxpayer Identification

Number (TIN) is 52-1139278

b. CAGE CODE: 1HGP5

c. Contractor has registered with the Central Contractor

Registration Database.

5. F.O.B. POINT:

a. Destination for the 48 contiguous states and the District of Columbia.

b. Point of Exportation for Alaska, Hawaii, the

Commonwealth of Puerto Rico and all other overseas locations. In place of a delivery/installation date for equipment, a shipping date shall be specified on the order. The Contractor shall pay for shipment to a CONUS APO/FPO. At the option of the Government, F.O.B. will be Point of Origin, with freight prepaid and invoiced.

Authorization for all shipping, export, and other charges must be included on the Government order.

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6. DELIVERY SCHEDULE:

a. TIME OF DELIVERY. The Contractor shall deliver to destination within the number of calendar days after receipt of order (ARO), as set forth below.

Delivery Time

Special Item Number (Days ARO)

C 7025 ................................................................... 90 Days C 7030 ................................................................... 90 Days

b. EXPEDITED DELIVERY. Quicker delivery times than those set forth in paragraph (a) above are available from the Contractor or its Authorized Government Reseller based on the availability of product inventory. Delivery times of 1-30 days after receipt of order (ARO) are available, as negotiated between the Ordering Activity and the Contractor.

c. OVERNIGHT AND 2-DAY DELIVERY. When schedule customers require overnight or 2-day delivery, ordering activities are encouraged to contact the Contractor or Authorized Government Resellers for the purpose of obtaining accelerated delivery. The Contractor provides overnight and 2-day delivery times subject to the availability of product inventory. The Contractor shall pay for shipment, with freight prepaid and invoiced.

Authorization must be included on the Government order for products.

d. URGENT REQUIREMENTS. When the Federal Supply

Schedule contract delivery period does not meet the bona fide urgent delivery requirements of an ordering activity, ordering activities are encouraged, if time permits, to contact the Contractor for the purpose of obtaining accelerated delivery. The Contractor shall reply to the inquiry within 3 workdays after receipt. (Telephonic replies shall be confirmed by the Contractor in writing.) If the Contractor offers an accelerated delivery time acceptable to the ordering activity, any order(s) placed pursuant to the agreed upon accelerated delivery time frame shall be delivered within this shorter delivery time and in accordance with all other terms and conditions of the contract.

7. DISCOUNTS:

a. PROMPT PAYMENT. 1%, Net 10 Days ARO..

b. QUANTITY. None.

c. DOLLAR VOLUME. None.

d. GOVERNMENT EDUCATIONAL INSTITUTIONS.

Government Educational Institutions are offered the same discounts as all other Government customers.

e. OTHER. None.

f. PRICES. All prices shown herein are net Government prices unless otherwise indicated.

8. TRADE AGREEMENTS ACT OF 1979 (AS AMENDED):

All items are U.S. made end products, designated country end products, Caribbean Basin country end products, Canadian end products, or Mexican end products as defined in the Trade Agreements Act of 1979, as amended.

9. STATEMENT CONCERNING AVAILABILITY OF EXPORT

PACKING:

Not available within the scope of this contract.

10. SMALL REQUIREMENTS:

The minimum dollar value of an order for delivery to one destination is $100.00.

11. MAXIMUM ORDER: (All dollar amounts are exclusive of any discount for prompt payment)

a. SPECIAL ITEM C 7025 - PURCHASE OF EQUIPMENT.

The maximum dollar value per order for all purchased equipment will be $500,000.

b. SPECIAL ITEM C 7030 - TERM and PERPETUAL

SOFTWARE LICENSES. The maximum dollar value per order for all term software licenses will be $500,000.

12. USE OF FEDERAL SUPPLY SERVICE INFORMATION

TECHNOLOGY SCHEDULE CONTRACTS.

In accordance with FAR 8.404:

NOTE: Special ordering procedures have been established for Special Item Numbers (SINs) 132-51 IT Professional Services and 132-52 EC Services; refer to the terms and conditions for those SINs.

Orders placed pursuant to a Multiple Award Schedule (MAS), using the procedures in FAR 8.404, are considered to be issued pursuant to full and open competition. Therefore, when placing orders under Federal Supply Schedules, ordering activities need not seek further competition, synopsis the requirement, make a separate determination of fair and reasonable pricing, or consider small business set-asides in accordance with subpart 19.5. GSA has already determined the prices of items under schedule contracts to be fair and reasonable. By placing an order against a schedule using the procedures outlined below, the ordering activity has concluded that the order represents the best value and results in the lowest overall cost alternative (considering price, special features, administrative costs, etc.) to meet the ordering activity’s needs.

a. ORDERS PLACED AT OR BELOW THE MICRO-

PURCHASE THRESHOLD. Ordering activities can place orders at or below the micro-purchase threshold with any Federal Supply Schedule Contractor.

b. ORDERS EXCEEDING THE MICRO-PURCHASE

THRESHOLD BUT NOT EXCEEDING THE MAXIMUM

ORDER THRESHOLD. Orders should be placed with the Schedule Contractor that can provide the supply or service that represents the best value. Before placing an order, ordering activities should consider reasonably available information about the supply or service offered under MAS contracts by using the “GSA Advantage!” on-

GS-00F-0046L Page 4 line shopping service, or by reviewing the catalogs/pricelists of at least three Schedule Contractors and selecting the delivery and other options available under the schedule that meets the agency’s needs. In selecting the supply or service representing the best value, the ordering office may consider—

(1) Special features of the supply or service that are required in effective program performance and that are not provided by a comparable supply or service;

(2) Trade-in considerations;

(3) Probable life of the item selected as compared with that of a comparable item;

(4) Warranty considerations;

(5) Maintenance availability;

(6) Past performance; and

(7) Environmental and energy efficiency considerations.

c. ORDERS EXCEEDING THE MAXIMUM ORDER

THRESHOLD. Each schedule contract has an established maximum order threshold. This threshold represents the point where it is advantageous for the ordering office to seek a price reduction. In addition to following the procedures in paragraph b, above, and before placing an order that exceeds the maximum order threshold, ordering activities shall--

(1) Review additional Schedule Contractors’ catalogs/pricelists or use the “GSA Advantage!” on-line shopping service;

(2) Based upon the initial evaluation, generally seek price reductions from the Schedule Contractor(s) appearing to provide the best value (considering price and other factors); and

(3) After price reductions have been sought, place the order with the Schedule Contractor that provides the best value and results in the lowest overall cost alternative. If further price reductions are not offered, an order may still be placed, if the ordering office determines that it is appropriate.

NOTE: For orders exceeding the maximum order threshold, the Contractor may:

(1) Offer a new lower price for this requirement (the

Price Reductions clause is not applicable to orders placed over the maximum order in FAR 52.216-19 Order Limitations);

(2) Offer the lowest price available under the contract; or

(3) Decline the order (orders must be returned in accordance with FAR 52.216-19).

d. BLANKET PURCHASE AGREEMENTS (BPAS). The establishment of Federal Supply Schedule BPAs is permitted when following the ordering procedures in FAR

8.404. All schedule contracts contain BPA provisions.

Ordering activities may use BPAs to establish accounts with Contractors to fill recurring requirements. BPAs should address the frequency of ordering and invoicing, discounts, and delivery locations and times.

e. PRICE REDUCTIONS. In addition to the circumstances outlined in paragraph c, above, there may be instances when ordering activities will find it advantageous to request a price reduction. For example, when the ordering office finds a schedule supply or service elsewhere at a lower price or when a BPA is being established to fill recurring requirements, requesting a price reduction could be advantageous. The potential volume of orders under these agreements, regardless of the size of the individual order, may offer the ordering office the opportunity to secure greater discounts.

Schedule Contractors are not required to pass on to all schedule users a price reduction extended only to an individual agency for a specific order.

f. SMALL BUSINESS. For orders exceeding the micro-purchase threshold, ordering activities should give preference to the items of small business concerns when two or more items at the same delivered price will satisfy the requirement.

g. DOCUMENTATION. Orders should be documented, at a minimum, by identifying the Contractor the item was purchased from, the item purchased, and the amount paid. If an agency requirement in excess of the micro-purchase threshold is defined so as to require a particular brand name, product, or feature of a product peculiar to one manufacturer, thereby precluding consideration of a product manufactured by another company, the ordering office shall include an explanation in the file as to why the particular brand name, product, or feature is essential to satisfy the agency’s needs.

13. FEDERAL INFORMATION TECHNOLOGY/

TELECOMMUNICATION STANDARDS REQUIREMENTS:

Federal departments and activities acquiring products from this Schedule must comply with the provisions of the Federal Standards Program, as appropriate (reference: NIST Federal Standards Index). Inquiries to determine whether or not specific products listed herein comply with Federal Information Processing Standards (FIPS) or Federal Telecommunication Standards (FED-STDS), which are cited by ordering activities, shall be responded to promptly by the Contractor.

13.1 FEDERAL INFORMATION PROCESSING STANDARDS

PUBLICATIONS (FIPS PUBS):

Information Technology products under this Schedule that do not conform to Federal Information Processing Standards (FIPS) should not be acquired unless a waiver has been granted in accordance with the applicable "FIPS Publication." Federal Information Processing Standards Publications (FIPS PUBS) are issued by the U.S. Department of Commerce, National Institute of Standards and Technology (NIST), pursuant to National Security Act. Information concerning their availability and applicability should be obtained from the National Technical Information Service (NTIS), 5285 Port Royal Road, Springfield, Virginia 22161. FIPS PUBS include voluntary standards when these are adopted for Federal use. Individual orders for FIPS PUBS should be referred to the NTIS Sales Office, and orders for subscription service should be referred to the NTIS Subscription Officer, both at the above address, or telephone number (703) 487-4650.

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13.2 FEDERAL TELECOMMUNICATION STANDARDS (FED-

STDS):

Telecommunication products under this Schedule that do not conform to Federal Telecommunication Standards (FED-STDS) should not be acquired unless a waiver has been granted in accordance with the applicable "FED-STD." Federal Telecommunication Standards are issued by the U.S. Department of Commerce, National Institute of Standards and Technology (NIST), pursuant to National Security Act. Ordering information and information concerning the availability of FED-STDS should be obtained from the GSA, Federal Supply Service, Specification Section, 470 East L’Enfant Plaza, Suite 8100, SW, Washington, DC 20407, telephone number (202) 619-8925. Please include a self-addressed mailing label when requesting information by mail.

Information concerning their applicability can be obtained by writing or calling the U.S. Department of Commerce, National Institute of Standards and Technology, Gaithersburg, MD 20899, telephone number (301) 975-2833.

14. SECURITY REQUIREMENTS:

In the event security requirements are necessary, the ordering activities may incorporate, in their delivery orders, a security clause in accordance with current laws, regulations, and individual ordering activity policy; however, the burden of administering the security requirements shall be with the ordering activity. If any costs are incurred as a result of the inclusion of security requirements, such costs will not exceed ten percent (10%) or $100,000, of the total dollar value of the order, whichever is less.

15. CONTRACT ADMINISTRATION FOR ORDERING

ACTIVITIES :

Any ordering activity , with respect to any one or more delivery orders placed by it under this contract, may exercise the same rights of termination as might the GSA Contracting Officer under provisions of FAR 52.212-4, paragraphs (l) Termination for the ordering activity’s convenience, and (m) Termination for Cause (See C.1.)

16. GSA ADVANTAGE!

The GSA Advantage! is an on-line, interactive electronic information and ordering system that provides on-line access to vendors' schedule prices with ordering information. GSA Advantage! will allow the user to perform various searches across all contracts including, but not limited to:

(1) Manufacturer;

(2) Manufacturer's Part Number; and

(3) Product category(ies).

Ordering activities can browse GSA Advantage! by accessing the Internet World Wide Web utilizing a browser (ex.: NetScape).

The Internet address is http://www.gsa.gov/.

17. PURCHASE OF OPEN MARKET ITEMS:

NOTE: Open Market Items are also known as incidental items, non-contract items, non-Schedule items, and items not on a Federal Supply Schedule contract.

For administrative convenience, an ordering activity contracting officer may add items not on the Federal Supply Multiple Award Schedule (MAS) -- referred to as open market items -- to a Federal Supply Schedule blanket purchase agreement (BPA) or an individual task or delivery order, only if-

(1) All applicable acquisition regulations pertaining to the purchase of the items not on the Federal Supply Schedule have been followed (e.g., publicizing (Part 5), competition requirements (Part 6), acquisition of commercial items (Part 12), contracting methods (Parts 13, 14, and 15), and small business programs (Part 19));

(2) The ordering activity contracting officer has determined the price for the items not on the Federal Supply Schedule is fair and reasonable;

(3) The items are clearly labeled on the order as items not on the Federal Supply Schedule; and

(4) All clauses applicable to items not on the Federal Supply Schedule are included in the order.

18. CONTRACTOR COMMITMENTS, WARRANTIES AND

REPRESENTATIONS:

a. For the purpose of this contract, commitments, warranties and representations include, in addition to those agreed to for the entire schedule contract:

(1) Time of delivery/installation quotations for individual orders;

(2) Technical representations and/or warranties of products concerning performance, total system performance and/or configuration, physical, design and/or functional characteristics and capabilities of a product/equipment/ service/software package submitted in response to requirements which result in orders under this schedule contract.

(3) Any representations and/or warranties concerning the products made in any literature, description, drawings and/or specifications furnished by the

b. The above is not intended to encompass items not currently covered by the GSA Schedule contract.

19. OVERSEAS ACTIVITIES:

The terms and conditions of this contract shall apply to all orders for installation, maintenance and repair of equipment in areas listed in the price list outside the 48 contiguous states and the District of Columbia, except as indicated below:

a. Orders will be subject to F.O.B. terms set forth in paragraph 5.b.

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b. All orders will be accepted by the Contractor on a case-by-case basis only.

Upon request of the Contractor, the ordering activity may provide the Contractor with logistics support, as available, in accordance with all applicable ordering activity regulations. Such ordering activity support will be provided on a reimbursable basis, and will only be provided to the Contractor's technical personnel whose services are exclusively required for the fulfillment of the terms and conditions of this contract (Purchase, Maintenance, and Repair Service).

20. BLANKET PURCHASE AGREEMENTS (BPAS):

Federal Acquisition Regulation (FAR) 13.201(a) defines Blanket Purchase Agreements (BPAs) as “…a simplified method of filling anticipated repetitive needs for supplies or services by establishing ‘charge accounts’ with qualified sources of supply.” The use of Blanket Purchase Agreements under the Federal Supply Schedule Program is authorized in accordance with FAR 13.202(c)(3), which reads, in part, as follows:

“BPAs may be established with Federal Supply Schedule Contractors, if not inconsistent with the terms of the applicable schedule contract.”

Federal Supply Schedule contracts contain BPA provisions to enable schedule users to maximize their administrative and purchasing savings. This feature permits schedule users to set up “accounts” with Schedule Contractors to fill recurring requirements.

These accounts establish a period for the BPA and generally address issues such as the frequency of ordering and invoicing, authorized callers, discounts, delivery locations and times. Ordering activities may qualify for the best quantity/volume discounts available under the contract, based on the potential volume of business that may be generated through such an agreement, regardless of the size of the individual orders. In addition, ordering activities may be able to secure a discount higher than that available in the contract based on the aggregate volume of business possible under a BPA. Finally, Contractors may be open to a progressive type of discounting where the discount would increase once the sales accumulated under the BPA reach certain prescribed levels. Use of a BPA may be particularly useful with the new Maximum Order feature. See the Suggested Format, contained in this Schedule Pricelist, for customers to consider when using this purchasing tool.

21. CONTRACTOR TEAM ARRANGEMENTS:

Contractors participating in contractor team arrangements must abide by all terms and conditions of their respective contracts. This includes compliance with Clauses 552.238-74, Contractor’s Reports of Sales and 552.238-76, Industrial Funding Fee, i.e., each contractor (team member) must report sales and remit the IFF for all products and services provided under its individual contract.

22. INSTALLATION, DEINSTALLATION, REINSTALLATION:

The Davis-Bacon Act (40 U.S.C. 276a-276a-7) provides that contracts in excess of $2,000 to which the United States or the District of Columbia is a party for construction, alteration, or repair (including painting and decorating) of public buildings or public works with the United States, shall contain a clause that no laborer or mechanic employed directly upon the site of the work shall received less than the prevailing wage rates as determined by the Secretary of Labor. The requirements of the Davis-Bacon Act do not apply if the construction work is incidental to the furnishing of supplies, equipment, or services. For example, the requirements do not apply to simple installation or alteration of a public building or public work that is incidental to furnishing supplies or equipment under a supply contract. However, if the construction, alteration orrepair is segregable and exceeds $2,000, then the requirements of the Davis-Bacon Act applies.

The ordering activity issuing the task order against this contract will be responsible for proper administration and enforcement of the Federal labor standards covered by the Davis- Bacon Act. The proper Davis-Bacon wage determination will be issued by the ordering activity at the time a request for quotations is made for applicable construction classified installation, deinstallation, and reinstallation services under SIN 132-8.

23. SECTION 508 COMPLIANCE:

If applicable, Section 508 compliance information on the supplies and services in this contract are available in Electronic and Information Technology (EIT) at the following: www.ideal.com

24. PRIME CONTRACTOR ORDERING FROM FEDERAL

SUPPLY SCHEDULES:

Prime Contractors (on cost reimbursement contracts) placing orders under Federal Supply Schedules, on behalf of an ordering agency, shall follow the terms of the applicable schedule and authorization and include with each order –

(a) A copy of the authorization from the ordering agency with whom the contractor has the prime contract (unless a copy was previously furnished to the Federal Supply Schedule contractor); and

(b) The following statement:

This order is placed under written authorization from _______ dated _______. In the event of any inconsistency between the terms and conditions of this order and those of your Federal Supply Schedule contract, the latter will govern.

TERMS AND CONDITIONS

APPLICABLE TO PURCHASE OF

GENERAL PURPOSE COMMERCIAL

INFORMATION TECHNOLOGY

EQUIPMENT

1. MATERIAL AND WORKMANSHIP:

All equipment furnished hereunder must satisfactorily perform the function for which it is intended.

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2. ORDER:

Written orders, EDI orders (GSA Advantage! and FACNET), credit card orders, and orders placed under blanket purchase agreements (BPA) shall be the basis for purchase in accordance with the provisions of this contract. If time of delivery extends beyond the expiration date of the contract, the Contractor will be obligated to meet the delivery and installation date specified in the original order.

For credit card orders and BPA’s, telephone orders are permissible.

3. TRANSPORTATION OF EQUIPMENT:

FOB DESTINATION. Prices cover equipment delivery to destination, for any location within the geographic scope of this contract unless otherwise specified.

4. INSTALLATION AND TECHNICAL SERVICES:

a. INSTALLATION. When the equipment provided under this contract is not normally self-installable, the Contractor's technical personnel shall be available to the Government, at the Government's location, to install the equipment and to train Government personnel in the use and maintenance of the equipment. The charges for such services are set forth in the price schedule. Installation is available in the 48 contiguous states, the District of Columbia, Alaska, Hawaii and Puerto Rico.

b. OPERATING AND MAINTENANCE MANUALS. The

Contractor shall furnish the Government with one (1) copy of all operating and maintenance manuals relating to the equipment being installed/purchased that is normally provided commercially at no charge.

5. INSPECTION/ACCEPTANCE:

The Contractor shall only tender for acceptance those items that conform to the requirements of this contract. The Government reserves the right to inspect or test any equipment that has been tendered for acceptance. The Government may require repair or replacement of nonconforming equipment at no increase in contract price. The Government must exercise its post-acceptance rights (1) within a reasonable time after the defect was discovered or should have been discovered; and (2) before any substantial change occurs in the condition of the item, unless the change is due to the defect in the item.

6. WARRANTY:

a. Unless specified otherwise in this contract, the

Contractor’s standard commercial warranty as set forth below will apply to this contract.

For twelve months after the time of purchase of an

IDEAL/Contex Scanner IDEAL guarantees the unit to be free from manufactured defects. IDEAL will cover the cost of labor and parts to repair the scanner at no additional charge to the customer.

Repair of the scanner will be performed at an authorized and designated IDEAL repair center once the scanner is returned to that site. The cost of freight is not covered under the standard warranty.

For ninety-days after the purchase of scanner and/or software products IDEAL will provide up to four hours of telephone support for the products purchased.

The Standard Warranty does not include the cost of integration of the scanner or software with the Government’s computer or network.

b. The Contractor warrants and implies that the items delivered hereunder are merchantable and fit for use for the particular purpose described in this contract.

c. LIMITATION OF LIABILITY. Except as otherwise provided by an express or implied warranty, the Contractor will not be liable to the Government for consequential damages resulting from any defect or deficiencies in accepted items.

d. If inspection and repair of defective equipment under this warranty will be performed at the Contractor's plant, the address is as follows:

Rockville, MD 20852

7. PURCHASE PRICE FOR ORDERED EQUIPMENT:

The purchase price that the Government will be charged will be the Government purchase price in effect at the time of order placement, or the Government purchase price in effect on the installation date (or delivery date when installation is not applicable), whichever is less.

8. RESPONSIBILITIES OF THE CONTRACTOR:

The Contractor shall comply with all laws, ordinances, and regulations (Federal, State, City or otherwise) covering work of this character, and shall include all costs, if any, of such compliance in the prices quoted in this offer.

9. TRADE-IN OF INFORMATION TECHNOLOGY EQUIPMENT:

When an agency determines that Information Technology equipment will be replaced, the agency shall follow the contracting policies and procedures in the Federal Acquisition Regulation (FAR), the policies and procedures regarding disposition of information technology excess personal property in the Federal Property Management Regulations (FPMR) (41 CFR 101-43.6), and the policies and procedures on exchange/sale contained in FPMR 41 CFR part 101-46.

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APPLICABLE TO REPAIR SERVICE

FOR GOVERNMENT-OWNED

GENERAL PURPOSE INFORMATION

TECHNOLOGY EQUIPMENT (AFTER

EXPIRATION OF GUARANTEE/

WARRANTY PROVISIONS AND/OR

WHEN REQUIRED SERVICE IS NOT

COVERED BY GUARANTEE/

WARRANTY PROVISIONS)

1. SERVICE AREAS:

Repair services will be performed at the at the Contractor's plant(s) listed below:

2. REPAIR SERVICE:

a. Ordering activities may use written orders, EDI orders, credit card orders, blanket purchase agreements (BPAs), or small order procedures for ordering repair service and/or repair parts/spare parts under this contract. Orders for repair service shall not extend beyond the end of the contract period.

b. When repair service is ordered, only one chargeable repairman shall be dispatched to perform repair service, unless the ordering office agrees, in advance, that additional repair personnel are required to effect repairs.

3. LOSS OR DAMAGE:

When the Contractor removes equipment to his establishment for repairs, the Contractor shall be responsible for any damage or loss, from the time the equipment is removed from the Government's installation, until the equipment is returned to such installation.

4. SCOPE:

Repair service shall apply exclusively to the equipment types/models within the scope of this Information Technology Schedule.

5. RESPONSIBILITIES OF THE GOVERNMENT:

Subject to security regulations, the Government shall permit access to the equipment which is to be repaired.

6. RESPONSIBILITIES OF THE CONTRACTOR:

For equipment not covered by a maintenance contract or warranty, the Contractor's repair service personnel shall complete repairs as soon as possible after notification by the Government that service is required.

7. REPAIR SERVICE RATE PROVISIONS:

a. CHARGES. Charges for repair service will include the labor charge, computed at the rates set forth in the pricelist, for the time during which repairmen are actually engaged in work.

b. TRAVEL OR TRANSPORTATION.

AT THE CONTRACTOR'S SHOP.

(a) When equipment is returned to the Contractor's shop for adjustments or repairs which are not covered by the guarantee/warranty provision, the cost of transportation, packing, etc., from the Government location to the Contractor's plant, shall be borne by the Government.

(b) The Government should not return defective equipment to the Contractor for adjustments and repairs or replacement without his prior consultation and instruction.

c. LABOR RATES.

(1) REGULAR HOURS. The Regular Hours repair service rates listed herein shall entitle the Government to repair service during the period 8:00 a.m. to 5:00 p.m., Monday through Friday, exclusive of holidays observed by the Contractor. There shall be no additional charge for repair service which was requested during Regular Hours, but performed outside the Regular Hours defined above, at the convenience of the Contractor.

(2) AFTER HOURS. When the Government requires that repair service be performed outside the Regular Hours defined above, except Sundays and Holidays observed by the Contractor, the After Hours repair service rates listed herein shall apply. The Regular Hours rates defined above shall apply when repair service is requested during Regular Hours, but performed After Hours at the convenience of the

(3) SUNDAYS AND HOLIDAYS. When the Government requires that repair service be performed on Sundays and Holidays observed by the Contractor, the Sundays and Holidays repair service rates listed herein shall apply. When repair service is requested to be performed during Regular Hours and/or After Hours, but is performed at the convenience of the Contractor on Sundays or Holidays observed at the Government location, the Regular Hours and/or After Hours repair service rates, as applicable, shall apply.

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d. REPAIR SERVICE RATES.

Sunday and

Minimum Regular Hours After Hours Holiday Charge* Per Hour** Per Hour** Per Hour

At Contractor’s Shop

$750.00 ........ $125.00 ................... $187.50 ................... $187.50

*Minimum charges include 3 full hours on the job.

**Fractional hours, at the end of the job, will be prorated to the nearest quarter hour.

8. GUARANTEE/WARRANTY (Repair Service):

All repair work will be guaranteed/ warranted for a period of 90 days.

9. INVOICES AND PAYMENTS (Repair Service):

Invoices for repair service and parts shall be submitted by the Contractor as soon as possible after completion of the work.

Payment under blanket purchase orders will be made quarterly or monthly, except where cash payment procedures are used.

Invoices shall be submitted separately to each Government office ordering services under the contract. The cost of repair parts shall be shown as a separate item on the invoice, and shall be priced in accordance with paragraph 7, above. PROMPT PAYMENT

DISCOUNT, IF APPLICABLE, SHALL BE SHOWN ON THE

INVOICE.

APPLICABLE TO TERM SOFTWARE

LICENSES, PERPETUAL SOFTWARE

LICENSES AND MAINTENANCE OF

GENERAL PURPOSE COMMERCIAL

INFORMATION TECHNOLOGY

SOFTWARE

1. INSPECTION/ACCEPTANCE:

The Contractor shall only tender for acceptance those items that conform to the requirements of this contract. The Government reserves the right to inspect or test any software that has been tendered for acceptance. The Government may require repair or replacement of nonconforming software at no increase in contract price. The Government must exercise its post-acceptance rights (1) within a reasonable time after the defect was discovered or should have been discovered; and (2) before any substantial change occurs in the condition of the software, unless the change is due to the defect in the software.

2. GUARANTEE/WARRANTY:

a. Unless specified otherwise in this contract, the

Contractor’s standard commercial guarantee/warranty as stated in the contract’s commercial pricelist will apply to this contract.

Warranty provisions are as noted in Terms and Conditions

Applicable to General Purpose Commercial Information Technology Equipment, Paragraph 6a. Warranty.

b. The Contractor warrants and implies that the items delivered hereunder are merchantable and fit for use for the particular purpose described in this contract.

c. LIMITATION OF LIABILITY. Except as otherwise provided by an express or implied warranty, the Contractor will not be liable to the Government for consequential damages resulting from any defect or deficiencies in accepted items.

3. TECHNICAL SERVICES:

The Contractor, without additional charge to the Government, shall provide a reasonable amount of support on the hot line technical support number (800) 76-IDEAL for the purpose of providing user assistance and guidance in the implementation of the software. The technical support number is available from 9am to 5pm EST.

4. SOFTWARE MAINTENANCE:

a. Software maintenance service shall include the following:

notification of changes software patches and fixes Application newsletters Discounts on software upgrades

b. Invoices for maintenance service shall be paid in advance unless otherwise agreed to by the Contractor and the ordering agency. PROMPT PAYMENT DISCOUNT, IF

APPLICABLE, SHALL BE SHOWN ON THE INVOICE.

Advance Payments for maintenance are authorized in accordance with FAR 32.202-1(b).

5. PERIODS OF TERM LICENSES AND MAINTENANCE:

a. The Contractor shall honor orders for periods for the duration of the contract period or a lessor period of time.

b. Term licenses and/or maintenance may be discontinued by the Government on thirty (30) calendar days written notice to the Contractor.

c. ANNUAL FUNDING. When annually appropriated funds are cited on an order for term licenses and/or maintenance, the period of the term licenses and/or maintenance shall automatically expire on September 30 of the contract period, or at the end of the contract period, whichever occurs first. Renewal of the term licenses and/or maintenance orders citing the new appropriation shall be required, if the term licenses and/or maintenance is to be continued during any remainder of the contract period.

Notwithstanding “c”, above, the Government may choose to issue a delivery order for maintenance which extends

GS-00F-0046L Page 10 beyond the end of the fiscal year, under the authority of FAR 37.106 and/or DFAR 237.106(2).

d. CROSS-YEAR FUNDING WITHIN CONTRACT PERIOD.

Where an ordering office’s specific appropriation authority provides for funds in excess of a 12 month (fiscal year) period, the ordering office may place an order under this schedule contract for a period up to the expiration of the contract period, notwithstanding the intervening fiscal years.

e. Ordering activities should notify the Contractor in writing thirty (30) calendar days prior to the expiration of an order, if the term licenses and/or maintenance is to be terminated at that time. Orders for the continuation of term licenses and/or maintenance will be required if the term licenses and/or maintenance is to be continued during the subsequent period.

6. CONVERSION FROM TERM LICENSE TO PERPETUAL

LICENSE:

Not available under the scope of this contract.

7. TERM LICENSE CESSATION:

8. UTILIZATION LIMITATIONS:

a. Commercial computer software and/or commercial computer software documentation is offered by the Contractor under licenses customarily provided to the public. The Government shall have only those rights specified herein. The Contractor does not furnish technical information related to commercial computer software (or commercial computer software documentation) that is not customarily provided to the public. Further, the Contractor does not relinquish rights to use, modify, reproduce, release, perform, display, or disclose commercial computer software (or commercial computer software documentation) except as mutually agreed to by the parties. See 48 CFR 12.212.

b. When acquired by the Government, commercial computer

Perpetual License software and related documentation shall be subject to the following:

Ideal Scanners & Systems, Inc. retains the ownership of this software. This copy is licensed to the Government for use under the following conditions: Use of the single-user version of the software licensed is for one computer and one user at a time. Copies of the program diskettes can be made only for backup purposes. Other Restrictions – The Government may not make copies of the program disks or backup the program disks except as outlined in the License Agreement. The Government may not rent, lease, distribute or sub-license the software or documentation, including but not limited to, translating, decomposing, disassembling or creating derivative works.

The license and the Government’s right to use automatically terminate upon failure to comply with any provision of this License Agreement. Retention of Rights

– Ideal Scanners & Systems, Incorporated retains all rights not expressly granted. Nothing in this License Agreement constitutes a waiver of Ideal Scanners &

Systems, Inc.’s rights under the U.S. Copyright laws or any other Federal or State Law.

c. When acquired by the Government, commercial computer

Term License software and related documentation shall be subject to the following:

Ideal Scanners & Systems, Inc. retains the ownership of this software. This copy is licensed to the Government for use by the Government for one year from the date that a key-code or renewal code for the software in use is issued to the Government. The term of the software as agreed under the following conditions: Use of the single-user version of the software licensed is for one computer and one user at a time. Copies of the program diskettes can be made only for backup purposes. The software, up to three thousand copies per year, may be distributed to others for viewing and searching the documents as is intended. The original software, for read only purposes, may only be distributed by the license holder. Other Restrictions – The Government may not make copies of the program disks or backup the program disks except as outlined in the License Agreement. The Government may not rent, lease, distribut or sub-license the software or documentation, including but not limited to, translating, decomposing, disassembling or creating derivative works.

The license and the Government’s right to use automatically terminate upon failure to comply with any provision of this License Agreement. Retention of Rights

– Ideal Scanners & Systems, Incorporated retains all rights not expressly granted. Nothing in this License Agreement constitutes a waiver of Ideal Scanners & Systems, Inc.’s rights under the U.S. Copyright laws or any other Federal or State Law.

9. SOFTWARE CONVERSIONS:

10. DESCRIPTIONS AND EQUIPMENT COMPATIBILITY:

All equipment compatibility or supported hardware functions applicable to Contractor’s products are set forth in the Contractor’s published literature or manuals supplied with the Products. For all additional information concerning supported hardware or compatibility requirements the Government is advised to contact the

11. RIGHT-TO-COPY PRICING:

Right to copy is limited solely for the purpose of system back-up.

GS-00F-0046L Page 11

USA COMMITMENT TO PROMOTE

SMALL BUSINESS PARTICIPATION

PROCUREMENT PROGRAMS

1. PREAMBLE:

Contractor provides commercial products and services to the Federal Government. We are committed to promoting participation of small, small disadvantaged and women-owned small businesses in our contracts. We pledge to provide opportunities to the small business community through reselling opportunities, mentor-protégé programs, joint ventures, teaming arrangements, and subcontracting.

2. COMMITMENT:

a. To actively seek and partner with small businesses.

b. To identify, qualify, mentor and develop small, small disadvantaged and women-owned small businesses by purchasing from these businesses whenever practical.

c. To develop and promote company policy initiatives that demonstrate our support for awarding contracts and subcontracts to small business concerns.

d. To undertake significant efforts to determine the potential of small, small disadvantaged and women-owned small business to supply products and services to our company.

e. To insure procurement opportunities are designed to permit the maximum possible participation of small, small disadvantaged, and women-owned small businesses.

f. To attend business opportunity workshops, minority business enterprise seminars, trade fairs, procurement conferences, etc., to identify and increase small businesses with whom to partner.

g. To publicize in our marketing publications our interest in meeting small businesses that may be interested in subcontracting opportunities.

We signify our commitment to work in partnership with small, small disadvantaged and women-owned small businesses to promote and increase their participation in Federal Government contracts. To accelerate potential opportunities please contact the

SUGGESTED FORMATS FOR

BLANKET PURCHASE AGREEMENTS

BEST VALUE

BLANKET PURCHASE AGREEMENT

FEDERAL SUPPLY SCHEDULE

(Insert Customer Name)

In the spirit of the Federal Acquisition Streamlining Act (Agency) and (Contractor) enter into a cooperative agreement to further reduce the administrative costs of acquiring commercial items from the General Services Administration (GSA) Federal Supply Schedule Contract(s) ____________________.

Federal Supply Schedule contract BPAs eliminate contracting and open market costs such as: search for sources; the development of technical documents, solicitations and the evaluation of offers. Teaming Arrangements are permitted with Federal Supply Schedule Contractors in accordance with Federal Acquisition Regulation (FAR) 9.6.

This BPA will further decrease costs, reduce paperwork, and save time by eliminating the need for repetitive, individual purchases from the schedule contract. The end result is to create a purchasing mechanism for the Government that works better and costs less.

Signatures

Agency Date

Contractor Date

BPA NUMBER_____________

(CUSTOMER NAME)

BLANKET PURCHASE AGREEMENT

Pursuant to GSA Federal Supply Schedule Contract Number(s)____________, Blanket Purchase Agreements, the Contractor agrees to the following terms of a Blanket Purchase Agreement (BPA) EXCLUSIVELY WITH (Ordering Agency):

(1) The following contract items can be ordered under this BPA.

All orders placed against this BPA are subject to the terms and conditions of the contract, except as noted below:

MODEL/PART NUMBER *SPECIAL BPA DISCOUNT/PRICE

(2) Delivery:

DESTINATION DELIVERY SCHEDULE/DATES

(3) The Government estimates, but does not guarantee, that the volume of purchases through this agreement will be

GS-00F-0046L Page 12

(4) This BPA does not obligate any funds.

(5) This BPA expires on _________________ or at the end of the contract period, whichever is earlier.

(6) The following office(s) is hereby authorized to place orders under this BPA:

OFFICE POINT OF CONTACT

(7) Orders will be placed against this BPA via Electronic Data

Interchange (EDI), FAX, or paper.

(8) Unless otherwise agreed to, all deliveries under this BPA must be accompanied by delivery tickets or sales slips that must contain the following information as a minimum:

(a) Name of Contractor;

(b) Contract Number;

(c) BPA Number;

(d) Model Number or National Stock Number (NSN);

(e) Purchase Order Number;

(f) Date of Purchase;

(g) Quantity, Unit Price, and Extension of Each Item (unit prices and extensions need not be shown when incompatible with the use of automated systems;

provided, that the invoice is itemized to show the information); and

(h) Date of Shipment.

(9) The requirements of a proper invoice are specified in the

Federal Supply Schedule contract. Invoices will be submitted to the address specified within the purchase order transmission issued against this BPA.

(10) The terms and conditions included in this BPA apply to all purchases made pursuant to it. In the event of an inconsistency between the provisions of this BPA and the Contractor’s invoice, the provisions of this BPA will take precedence.

BASIC GUIDELINES FOR USING

“CONTRACTOR TEAM

ARRANGEMENTS”

Federal Supply Schedule Contractors may use “Contractor Team Arrangements” (see FAR 9.6) to provide solutions when responding to a customer agency requirements.

These Team Arrangements can be included under a Blanket Purchase Agreement (BPA).