Federal Supply Schedule GS35F4564G

AUTHORIZED FEDERAL SUPPLY SERVICE

INFORMATION TECHNOLOGY SCHEDULE PRICELIST

GENERAL PURPOSE COMMERCIAL INFORMATION TECHNOLOGY

EQUIPMENT, SOFTWARE AND SERVICES

Code Category

FSC Class 7010-0001 :End User Computer G 7010-0002 :Optical Disk Systems K 7010-0003 :Laptop/Portable/Notebook H End User Microcomputer 7025-0004 :Printers (ADP) A 7025-0006 :Local Area Network J

Equipment & Accessories 7025-0009 :Interactive Hardcopy A 7025-0010 :Other ADP Input/and Storage Devices C

Special Item Numbers:

132-3 Leasing of Commercial IT Equipment 132-8 Purchase of Commercial IT Equipment 132-12 Maintenance of Commercial IT Equipment 132-51 Information Technology Professional Services

Emtec Federal Inc 11 Diamond Road Springfield, New Jersey 07081 Telephone: (973) 376-4242 (800) 800-8805

Contract Number: GS-35F-4564G Contract Period: 1 April 1997 thru 30 April 2009

General Services Administration Federal Supply Service

This Authorized ADP Schedule Price list is also available on the GSA Advantage at http://www.fss.gsa.gov . A direct number will be provided in the future, for non-internet users. For DOD/DSN, the number will be 294-0521.

Agencies can browse GSA Advantage by accessing the Internet World Wide Web utilizing a browser (ex:Netscape).

http://www.fss.gsa.gov/

INDEX OF CONTENTS

INFORMATION FOR ORDERING OFFICES --------------------------------------4

TERMS AND CONDITIONS, SIN 132-3 LEASE---------------------------------12

TERMS AND CONDITIONS, SIN 132-8 PURCHASE--------------------------20

TERMS AND CONDITIONS, SIN132-12 REPAIR PURCHASE-------------22

TERMS AND CONDITIONS, SIN 132-51

PROFESSIONAL SERVICES----------------------------------------------------28

PROFESSIONL SERVICES DESCRIPTIONS,

RATES AND LOCATIONS--------------------------------------------------------33

INSTALLATION, INTEGRATION CHARGES------------------------------------40

SALES AND SERVICE POINT DIRECTORY------------------------------------41

PRODUCT PRICE LISTS

AMERICAN POWER CONVERSION MITSUBISHI

----------------------------------------------------43 ----------------------------------------------556

CABLE MANUFACTURING BUSINESS NEC SOLUTIONS

----------------------------------------------------53 ----------------------------------------------557

CANON PACKAGING STRATEGIES INC

----------------------------------------------------55 ----------------------------------------------558

COGENT SYSTENS SAMSUNG

----------------------------------------------------57 ----------------------------------------------559

COMPAQ SIMPLE TECHNOLOGIES

----------------------------------------------------58 ----------------------------------------------566

CULVER GROUP SONY ELECTRONICS INC

----------------------------------------------------60 ----------------------------------------------589

DELL TALLYGENICOM

----------------------------------------------------63 ----------------------------------------------594

FUJITSU COMPUTER SYSTEMS TRANSITION NETWORKS

---------------------------------------------------384 ----------------------------------------------598

GATEWAY VIEWSONIC CORPORATION

---------------------------------------------------392 ----------------------------------------------611

HEWLETT PACKARD VISIONEER

---------------------------------------------------413 ----------------------------------------------612

LENOVO XEROX CORPORATION

---------------------------------------------------515 ----------------------------------------------613

LEXMARK INTERNATIONAL

---------------------------------------------------532

LIEBERT SYSTEMS

---------------------------------------------------549

INFORMATION FOR ORDERING OFFICES

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 micro-purchase 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 (ww.fss.gsa.gov). The catalogs/pricelists, GSA Advantage!™ and the Federal Supply Service Home Page (www.fss.gsa.gov) contains 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 micro-purchase 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 overseas U.S. Government installations. The service area of this contract is the 48 contiguous states and the District of Columbia.

2. Contractors Ordering Address and Payment Information

a. Equipment orders may be placed with Emtec Federal Inc at any of the locations listed in appendix B in this document.

Payment Addresses

P.O. Box 8500 (S-42005) Philadelphia, PA 19178

Notice: In addition, Bank Account information for Wire Transfer Payments will be shown on invoice.

Government Credit Cards

Government Credit Cards are accepted by Emtec Federal Inc within the limitations established by each ordering agency.

3. Liability for Injury or Damage

The Contractor shall not be liable for any injury to Government personnel or damage to Government 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

11 Diamond Road, Springfield, NJ 07081 DUNS No: 06-429-9332 TAX ID No: 221-913-563

CAGE CODE: 3Y916 CEC 186 908 82F

14121 Parke Long Court, Suite 112 Chantilly, VA 20151 DUNS No: 932-797-814 TAX ID No: 221-913-563

CAGE CODE: 1M9B9 CEC 186 908 82F

5. F.O.B. Point

F.O.B. Destination: Emtec Federal Inc offers FOB destination to all points within the 48 contiguous states and the District of Columbia. For final delivery to points outside this area the purchasing authority will be responsible for freight and freight charges from the embarkment point within the 48 contiguous states and the District of Columbia.

NOTE: When ordering for overseas delivery, be sure to include the following information to speed the delivery process:

1. name of individual to contact for order questions or clarification

2. customer commercial phone number with country and city code

3. customer facsimile number

4. 220 volt equipment is available from Emtec Federal Inc within the scope of this contract.

a. APO DELIVERIES

Emtec Federal Inc will ship to APO addresses provided the Agency pays by the use of the Government Credit Card. Emtec Federal Inc will not retain liability for delivery to the end user and will be considered to have fulfilled it obligation for delivery upon receipt to the local (to Westwood) United States Postal facility.

Emtec Federal Inc will also ship to APO addresses provided the Agency places the order via the GSA Advantage with the Bill-To Address listed as the GSA Kansas City Payment Office.

b. RESTOCKING FEES

Emtec Federal Inc reserves the right to charge a restocking of 5% (of sale price) to Agencies who order product in error. In addition to the restocking fee, the Agency will be responsible for paying the freight to return the product to Westwood.

Prior to returning the product, the Agency must receive a RMA number from Emtec Federal Inc.

Returns will not be authorized for product that is not in the original packaging and remains unused. Credit for returned merchandise will not be issued until the product has been received, unpacked, and inspected at Emtec Federal Inc Headquarters.

6. COMMERCIAL DELIVERY SCHEDULE(Multiple Award 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.

Shipment will be made within 30 days of receipt of order unless Westwood is subject to manufacturer imposed delays. Every effort will be made to notify the ordering agency as to any delay at the time of receipt of order.

b. EXPEDITED DELIVERY TIMES: Any item in inventory can be subject to expedited delivery. Shipments of items in inventory can be made within two (2) days of receipt of order. The only charges for this service will be the actual shipping charges for the mode of shipment specified by the ordering agency. Wherever possible, the charges will be billed directly to the agency by the freight carrier.

c. OVERNIGHT AND 2-DAY DELIVERY TIMES: Any item in inventory can be subject to overnight or 2-day delivery. Such orders will be subject to a handling fee of $20.00 per individual Purchase Order. In addition the freight carrier will bill actual shipping charges directly to the ordering agency.

d. URGENT REQUIREMENTS: When the Federal Supply Schedule contract delivery period does not meet the bona fide urgent delivery requirements of an ordering agency, agencies are encouraged, if the 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 agency, any order(s) 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. All prices quoted in this solicitation are net prices (discounts have already been calculated) quoted to the government.

b. Prompt payment discount of 1% 20 net 30 from receipt of invoice is offered. Purchases made via Government Credit Cards do not qualify for prompt payment discount.

c. Educational discounts may be offered as promotional prices if these prices result in an overall lower price to the GSA.

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:

Available outside scope of this contract.

10. SMALL ORDER REQUIREMENTS

The minimum order value accepted under this contract is $50.

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

a. Special Item Number 132-3 – Leasing of Equipment

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

b. Special Item Number 132-8 – Purchase of Equipment

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

c. Special Item Number 132-12 – Repair Parts/Spare Parts

The maximum dollar value per order for all repair parts/spare parts will be $10,000.

d. Special Item Number 132-51 – Information Technology (IT) Professional Services

The maximum dollar value per order for all IT Professional services will be $500,000.

NOTE: Maximum Orders do not apply to Special Item Numbers 132-12 Maintenance and Repair Service (except for Repair Parts/Spare Parts).

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 SIN's.]

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 offices need not seek further competition, synopsize 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 office 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 Government’s needs.

a. Orders placed at or below the micro-purchase threshold. Ordering offices can place orders at or below the micro-purchase threshold with 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 offices should consider reasonably available information about the supply or service offered under MAS contracts by using the “GSA Advantage!™ “ on-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 offices 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, and 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 BPA's is permitted when following the ordering procedures in FAR 8.404. All schedule contracts contain BPA provisions. Ordering offices may use BPA's to establish accounts with Contractors to fill recurring requirements. BPA’s 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 offices 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 offices 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 agencies 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 offices, 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 Offices, and orders for subscription service should be referred to the NTIS Subscription Officer, both at the above address, or telephone number (703) 487-4650.

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 form 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 agency policy; however, the burden of administering the security requirements shall be with the ordering agency. 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 lessor.

15. CONTRACT ADMINISTRATION FOR ORDERING OFFICES : Any ordering office, 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 (1) Termination for the Government’s convenience, and (m) Termination for Cause (See C.1.)

16. GSA ADVANTAGE!™

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 categories.

Agencies can browse GSA Advantage!™ by accessing the Internet World Wide Web utilizing a browser (ex:

NetScape). The Internet address is http://www.fss.gsa.gov/.

17. PURCHASE OF INCIDENTAL, NON-SCHEDULE ITEMS

For administrative convenience, open market (non-contract) items may be added to a Federal Supply Schedule Blanket Purchase Agreement (BPA) or an individual order, provided that the items are clearly labeled as such on the order, all applicable regulations have been followed, and price reasonableness has been (non-contract) items.

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 Contractor.

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 pricelist outside the 48 contiguous states and the District of Columbia, except as indicated below:

Areas located outside the 48 contiguous states and the District of Columbia are exempted from the terms and conditions relating to installation, maintenance and repair of equipment.

Upon request of the Contractor, the Government may provide the Contractor with logistics support, as available, in accordance with all applicable Government regulations. Such Government 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.

20. YEAR 2000 WARRANTY – COMMERCAIL SUPPLY ITEMS

“Year 2000 compliant” means information technology that accurately processes date/time data (including, but not limited to, calculating, comparing, and sequencing) from, into, and between the twentieth and twenty-first centuries and the years 1999 and 2000 and leap year calculations. Furthermore, Year 2000 compliant information technology, when used in combination with other information technology, shall accurately process date/time data if the other information technology properly exchanges date/time data with it.

The Contractor warrants that each hardware, software, and firmware product delivered under this contract shall be able to accurately process date data (including, but not limited to, calculating, comparing, and sequencing) from, into, and between the twentieth and twenty-first centuries, including leap year calculations, when used in accordance with the product documentation provided by the Contractor, provided that all listed or unlisted products (e.g. hardware, software, firmware) used in combination with such listed product properly exchange date data with it. If the contract requires that specific listed products must perform as a system in accordance with the foregoing warranty, then that warranty shall apply to those listed products as a system.

The duration of this warranty and the remedies available to the Government for breach of this warranty shall be as defined in, and subject to, the terms and limitations of the Contractor’s standard commercial warranty or warranties contained in this contract, provided that notwithstanding any provision to the contrary in such commercial warranty or warranties, the remedies available to the Government under this warranty shall include repair or replacement of any listed product whose non-compliance is discovered and made know to the Contractor in writing within ninety (90) days after acceptance. Nothing in this warranty shall be construed to limit any rights or remedies the Government may other wise have under this contract with respect to defects other than Year 2000 performance.

21. 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. Agencies may qualify for the best quantity/volume of business that may be generated through such an agreement, regardless of the size of the individual orders. In addition, agencies 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 the 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.

22. 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. The policy and procedures outlined in this part will provide more flexibility and allow innovative acquisition methods when using the Federal Supply Schedules. See the additional information regarding Contractor Team Arrangements in this Schedule Pricelist.

TERMS AND CONDITIONS APPLICABLE TO LEASE

OF COMMERCIAL INFORMATION TECHNOLOGY EQUIPMENT

(SPECIAL ITEM 132-3)

LEASE TYPES

The Government will consider proposals for the following lease types:

a. Lease to Ownership

b. Lease to Option to Own, and

c. Step Lease

Orders for leased products must specify the leasing type:

OPTION 1:

1. STATEMENT

a. It is understood by all parties to this contract that orders issued under this SIN shall constitute a lease arrangement. Unless the ordering Office intends to obligate other than annual appropriations to fund the lease, the base period of the lease is from the date of the product acceptance through September 30 of the fiscal year in which the order is placed.

b. Agencies are advised to follow the guidance provided in Federal Acquisition Regulation

(FAR) Subpart 7.4 Product Lease or Purchase and OMB Circular A-11. Agencies are responsible for the obligation of funding consistent with all applicable legal principles when entering into any lease arrangement.

2. FUNDING AND PERIODS OF LEASING ARRANGEMENTS

a. Annual Funding. When annually appropriated funds are cited on an order for leasing, the following applies.

(1) The base period of any order for any lease executed by the Government shall be for the duration of the fiscal year. All Government renewal options under the lease shall be specified on the delivery order. All orders for leasing shall remain in effect through September 30 of the fiscal year or the planned expiration date of the lease, whichever is earlier, unless the Government exercises its right to terminate under FAR 52.212-4. Orders under the lease shall not be deemed to obligate succeeding fiscal year’s funds or to otherwise commit the Government to a renewal.

(2) All orders for leasing shall automatically terminate on September 30, unless the Ordering Office notifies the Contractor in writing thirty (30) calendar days prior to expiration of such orders of the Government’s intent to renew. Such notice to renew shall not bind the Government. The Government has the option to renew each year at the original rate in effect at the time the order is placed. This rate applies for the duration of the order. If the Government exercises its option to renew, the renewal order, shall be issued within 15 days after funds become available for obligation by the ordering office, or as specified in the initial order. No termination fees shall apply if the Government does not exercise an option.

b. Crossing Fiscal Years Within Contract Period. When an Ordering Office has specific authority to cross fiscal years with annual appropriations, the ordering Office may place an order under this option to lease products for a period up to the expiration of its period of appropriation availability, or twelve months, whichever occurs later, notwithstanding the intervening fiscal years.

3. DISCONTINUANCE AND TERMINATION

Notwithstanding any other provision relating to this SIN, the ordering Office may terminate products leased under this agreement, at any time during the fiscal year in accordance with the termination provisions contained in FAR 52.212-4. (l) Termination for the Government’s convenience, or (m) Termination for cause. Additionally, no termination for cost of fees shall be charges for non-renewal of an option.

OPTION 2

To the extent an Offeror wished to propose alternative lease terms and conditions that provide for lower discounts/prices based on the ordering office’s stated intent to fulfill the projected term of a lease including option years, while at the same time including separate charges for early end of the lease, the following terms apply. These terms address the timing and extent of the Government’s financial obligation including any potential charges for early end of the lease.

1. LEASING PRICE LIST NOTICE:

The ordering office is responsible for the obligation of funds consistent with applicable law. Agencies are advised to reviews the lease terms and conditions contained in the price list prior to ordering and obligating funds for a lease.

2. STATEMENT OF GOVERNMENT INTENT

(a) The Government and the Contractor understand that a delivery order issued pursuant to this

SIN is a lease arrangement and contemplates the use of the product for the term of the lease specified in such delivery order (the “Lease Term”). In that regard, the Ordering Agency, as lessee, understands that the lease provisions contained herein and the rate established for the delivery order are premised on the Ordering Agency’s intent to fulfill that agreement, including acquiring products for the period of time specified in the order. Each lease hereunder shall be initiated by a delivery order which shall, either through a statement of work or other attachment, specify the product being leased, and the required terms of the transaction.

(b) Each ordering office placing a delivery order under the terms of this option intends to exercise each renewal option and to extend the lease until completion of the Lease Term so long as the need of the ordering office for the product or functionally similar product continues to exist and funds are appropriated.

Contractor may request information from ordering office concerning the essential use of the products,

3. LEASE TERM

(a) The date on which the ordering office accepts the products is the Commencement Date of the lease. For acceptance to occur, the products must operate in accordance with the product’s published specifications and statement of work. Acceptance shall be in accordance with the terms of the contract or as otherwise negotiated by the ordering office and the Contractor.

(b) Any lease is executed by the Ordering Office on the basis that the known requirement for such product exceeds the initial base period of the delivery order, which is typically 12 months, or for the remainder of the fiscal year. Pursuant to FAR 32.703-3(b), delivery orders with options to renew that are funded by annual (fiscal year) appropriations may provide for initial base periods and option periods that cross fiscal years as long as the initial base period or each option period does not exceed a 12 month period. Defense agencies must also consider DOD FAR supplement (DFAR) 232.703-3(b) in determining whether to use cross fiscal year funding. This cross fiscal year authority does not apply to multi-year leases.

(c) The total Lease Term will be specified in each delivery order, including any relevant renewal options to the Government. All delivery orders, whether for the initial base period or renewal period, shall remain in effect through September 30 of the fiscal year (unless extended by statute), through any earlier expiration date specified in the delivery order, or until the Government exercises its rights hereunder to acquire title to the product prior to such expiration date. The ordering office, at its discretion, may exercise each option to extend the term of the lease through the lease term.

Renewal delivery orders shall not be issued for less than all of the product and/or software set forth in the initial delivery order. Delivery orders under this SIN shall not be determined to obligate succeeding fiscal year funds. The ordering office shall provide the Contractor with written notice of exercise of each renewal option as soon as practicable. Notice requirements may be negotiated on an order-by-order basis.

(d) Where an ordering office’s specific appropriation or procurement authority provides for contracting beyond the fiscal year period, the ordering office may place a delivery order for a period up to the expiration of the Lease Term, or to the expiration of the period availability of the multi-year appropriation, or whatever is appropriate under the applicable circumstance.

4. LEASE TERMINATION.

(a) The Ordering Agency must elect the Lease Term of the relevant delivery order. The Contractor

(and assignee, if any) will rely on the Government’s representation of its intent to fulfill the lease Term to determine the monthly lease payments calculated herein.

(i) The Government may terminate or not renew leases under this option at no cost, pursuant to a Termination for Non-Appropriation as defined herein (see paragraph (c) below). In any other event, the ordering office’s contracting officer may either terminate the relevant delivery order for cause of Termination for Convenience in accordance with FAR 52.212-4 paragraphs (l) and (m).

(II) The Termination for Convenience at the end of a fiscal year allows for separate charges for the early end of the lease (see paragraph (d) below) In the event of termination for the convenience of the Government, the Government may be liable only up to the amount beyond the order’s Termination Ceiling. Any termination charges calculated under the Termination for Convenience clause must be determined or identified in the delivery order or in the lease agreement.

(b) Termination for Convenience of the Government: Leases entered into under this option may not be terminated except by the ordering office’s contracting officer responsible for the delivery order in accordance with FAR 52.212-4, Contract Terms and Conditions-Commercial Items, paragraph (l), Termination for Convenience of the Government. The cost charged to the Government as the result of any Termination for Convenience of the Government must be reasonable and may not exceed the sum of the fiscal year’s payment obligation less payments made to date of termination plus Termination Ceiling.

(c) Termination for Non-Appropriation: The ordering office reasonably believes that the bona fide need will exist for the entire Lease Term and correspondence funds in an amount sufficient to make all payment for the Lease Term will be available to the ordering office. Therefore, it is unlikely that leases entered into under this option will terminate prior to the full Lease Term.

Nevertheless, the ordering office’s contracting officer may terminate or not renew leases at the end of any initial base period or option period under this paragraph if (a) it no longer has a bona fide need for the product or functionally similar product; or )b) there is a continuing need, but adequate funds have not been made available to the ordering office in an amount sufficient to continue to make the lease payments. If this occurs, the Government will promptly notify the Contractor, and the product lease will be terminated at the end of the last fiscal year for which funds were appropriated. Substantiation to support a termination for non-appropriation shall be provided to the Contractor upon request.

(d) Termination Charges: At the initiation of the lease, termination ceilings will be established for each year of the lease term. The termination ceiling is a limit on the amount that a Contractor may be paid by the Government on the Termination fro Convenience of a lease. No claim will be accepted for future costs; supplies, maintenance, usage charges or interest expense beyond the date of termination. In accordance with the bona fide needs rule, all termination charges must reasonably represent the value the Government received for the work performed based on the shorter lease term. No Termination for Convenience costs will be associated with the expiration of expiration of the lease term.

(e) At the order level, the ordering office may, consistent with legal principles, negotiate lower monthly payments or rates based upon appropriate changes to the termination conditions in this section.

LEASE PROVISIONS COMMON TO

ALL TYPES OF LEASE AGREEMENTS

The following terms and conditions are applicable to any lease awarded under this contract regardless of type or option

1. ORDERING PROCEDURES

(a) When an Ordering Office expresses an interest in leasing a product(s), the Ordering Office will provide the following information to the prospective Contractor:

(i) Which product(s) is (are) required

(ii) The required delivery date.

(iii) The proposed lease plan and term of the lease.

(iv) Where the product will be located.

(v) Description of the intended use of the product.

(vi) Source and type of appropriations to be used.

(b) The Contractor will respond with:

(i) Whether the Contractor can provide the required product.

(ii) The estimated residual value of the product (lease with Option to Own and Step

Lease only).

(iii) The monthly payment based on the rate.

(iv) The estimated cost, if any, of applicable State or local taxes. State and local person property taxes are to be estimated as separate line items in accordance with FAR 52.229-1, which may be identified and added to the monthly lease payment.

(v) A confirmation of the availability of the product on the required delivery date.

(vi) Extent of warranty coverage, if any, of the leased products.

(vii) The length of time the quote is valid

(c) The Ordering Office may issue a delivery order to the Contractor based on the information set forth in the Contractor’s quote. In the event that the Ordering Office does not issue a delivery order within the validity period stated in the Contractor’s quote letter, the quote shall expire.

2. ASSIGNMENT OF CLAIMS:

GSAR 552.232-23, Assignment of Claims, is incorporated herein by reference as part of these lease provisions. The Ordering Office’s contracting officer will acknowledge the assignment of claim for a lease in accordance with FAR 232.804-5. The extent of the assignee’s protection is in accordance with FAR

32.804. Any setoff provision must be in accordance with FAR 32.803.

3. PEACEFUL POSESSION AND UNRESTRICTED USE:

In recognition of the types of products available for lease and the potential adverse impact to the Government’s mission, the Government’s quiet and peaceful possession and unrestricted use of the product shall not be disturbed in the event the product is sold by the Contractor, or in the event of a bankruptcy of the Contractor, corporate dissolution of the Contractor, or other event. The product shall remain in the possession of the Government until the expiration of the lease. Any assignment, sale, bankruptcy, or other transfer of the leased product by the Contractor will not relieve the Contractor of its obligations to the Government, and will not change the Government’s duties or increase the burdens or risks imposed on the Government.

4. COMMENCEMENT OF LEASE:

The date on which the Ordering Office accepts the products is the Commencement Date of the lease.

Acceptance is as defined elsewhere in the contract, or as further specified in the order.

5. INSTALLATION AND MAINTENANCE

a. Installation and maintenance, when applicable, normally are not included in the charge for leasing.

The Contractor may require the Government to obtain installation and maintenance from a qualified source.

The Government may obtain installation and/or maintenance on the open market, from the Contractor’s schedule contract, or from other sources. The Government may also perform installation and/or maintenance in house, if qualified resources exist. In any event, it is the responsibility of the Government to ensure that maintenance is in effect for the Lease term for all products leased.

b. When installation and/or maintenance are ordered under this schedule to be performed by the Contractor, the payments, terms and conditions as stated in his contract apply. The rates and terms and conditions in effect at the time the order is issued shall apply during any subsequent renewal period of the lease. The maintenance rates and terms and conditions may be added to the lease payments with mutual agreement of the parties

6. MONTHLY PAYMENTS

a. Prior to the placement of an order under this Special Item Number, the Ordering Office and the Contractor must agree to a “base value” for the products to be leased. For Lease to Ownership (Capital Lease) the base value will be the contract purchase price (less any discounts). For Lease with Option to Own (Operating Lease), the base value will be the contract purchase price (less any discounts), less a mutually agreed upon residual value (pre-stated purchase option price at the conclusion of the lease) for the products. The residual value will be used in the calculation of the original lease payment, lease extension payments, and the purchase option price.

c. To determine the initial lease term payment, the Contractor agrees to apply the negotiated factor to the agreed upon base value:

The lease payment may be calculated by using a programmed business calculator or by using “rate” functions provided in commercial computer spreadsheets (e.g., Lotus 1-2-3-, Excel)

c. For any lease extension, the extension lease payment will be based on the original residual value, in lieu of the purchase price. The Ordering Office and the Contractor shall agree on a new residual value based on the estimated fair market price at the end of the extension. The formula to determine the lease payment will be that in 6.b above.

d. The purchase option price will be the fair market value of the product or payment will be based upon unamortized principle, as shown on the payment schedule as of the last payment prior to date of transfer of ownership, whichever is less.

NOTE: At the ordering level, ordering office may elect to obtain a lower rate for the lease by setting the purchase option price as either, the fair market value of the product or unamortized principle. The methodology for determining lump sum payments may be identified in the pricelist

e. The point in time when monthly rates are established is subject to negotiation and evaluation at the order level.

In the event the Government desires, at any time, to acquire title to product leased hereunder, the Government may make a one-time lump sup payment.

7. LEASE END/DISCONTINUANCE OPTIONS:

a. Upon expiration of the Lease Term, Termination for Convenience, or Termination for Mon- Appropriation, the Government will return the Product to the Contractor unless the Government by 30 days written notice elects either:

(i) to purchase the product for the residual value of the product, or

(ii) to extend the term of the Lease, as mutually agreed. To compute the lease payment, the residual value from the preceding lease shall be the initial value of the leased product. A new residual value shall be negotiated for the extended lease and new lease payments shall be computed.

b. Relocation – The Government may relocate products to another location within the Government with prior written notice. No other transfer, including sublease, is permitted. Government shall not assign, transfer or otherwise dispose of any products, or interest therein, or create or suffer any levy, lien or encumbrance then except those created for the benefit of Contractor or it’s assigns.

c. Returns:

(i) Within fourteen (14) days after the date of expiration, non-renewal or termination of a lease, the Government shall, at its own risk and expense, have the products packed for shipment in accordance with manufacturer’s specifications and return the products to Contractor at the location specified by Contractor in the continental U.S., in the same condition as when delivered, ordinary wear and tear excepted. Any expense necessary to return the products to good working order shall be at the Government’s expense

(ii) The Contractor shall conduct a timely inspection of the returned products and within 45 days of the return, assert a claim if the condition of the product exceeds normal wear and tear.

(iii) Product will be returned in accordance with the terms and conditions and in accordance with Contractor instruction.

(iv) With respect to software, the Government shall state in writing to the Contractor that it has:

(1) deleted or disabled all files and copies of the software from the equipment on which it was installed;

(2) returned all software documentation, training manuals, and physical media on which the software was delivered; and

(3) has no ability to use the returned software

8. UPGRADES AND ADDITIONS:

a. The Government may affix or install any accessory, addition, upgrade, product or device on the product (“additions”) provided that such additions:

(1) can be removed without causing material damage to the product;

(2) do not reduce the value of the product; and

(3) are obtained from or approved by the Contractor, and are not subject to the interest of any third party other than the Contractor.

(b) Any other additions may not be installed without the Contractor’s prior written consent. At the end of the term, the Government shall remove any additions which:

(1) were not leased from the Contractor, and

(2) are readily removable without causing material damage or impairment of the intended function, use, or value of the product, and restore the product to its original configuration.

(c) Any additions that are not so removable will become the Contractor’s property (lien free).

(d) Leases of additions and upgrades must be co-terminus with that of the product.

9. RISK OF LOSS OR DAMAGE:

The Government is relieved from all risk of loss or damage to the products during periods of transportation, installation, and during the entire time the product is in possession of the Government, except when loss or damage is due to fault or negligence of the Government. The Government shall assume all risk of loss or damage to the product during relocation, (i.e., moving the product from one Government location to another Government location to another Government location), unless the Contractor shall undertake such relocation.

10. TITLE:

During the lease term, product shall always remain the property of the Contractor. The Government shall have no property right or interest in the product except as provided in this leasing agreement and shall hold the product subject and subordinate to the rights of the Contractor. Software and software licenses shall be deemed personal property. The Government shall have no right or interest in the software and related documentation except as provided in the license and lease. Upon the Commencement Date of the Lease Term, the Government shall have an encumbered license to use the software for the Lease Term.