High-Performance Vehicle Terms and Conditions .pdf

Purpose:

To establish a statewide contract for non-alternative fuel, high-performance vehicles for State agencies.

Pricing will be made available to other local governmental agencies such as cities, counties, schools, universities, etc. Non-Governmental agencies, such as non-profit, are not eligible to purchase from this contract regardless of funding.

General Requirements:

• Awarded suppliers must have a dealership in Alabama.

• Awarded suppliers will be required to pay an administrative fee to the State based on overall sales/service volume of executed contract(s) – see section titled Administrative Fee.

• Awarded suppliers will be required to submit E-Verify documentation – see section 13 of the ITB

Standard Boilerplate.

• Awarded suppliers will be required to submit the State of Alabama Vendor Disclosure Statement documentation – see section 15 of the ITB Standard Boilerplate.

• Attend mandatory pre-bid conference.

Award:

Award will be made by line to the lowest responsible bidder meeting all specifications.

Each awarded supplier will also be awarded a vehicle option line and a vehicle delivery line.

Bid Submission Instructions:

Beginning on the Alabamabuys supplier portal page, select the desired sourcing project. Once project is opened make sure the left panel is expanded. If not, click on small double arrows to expand. Be sure to review each tab for necessary information and enter bid amounts on item grid as needed. After you have checked and completed each tab, you can validate and submit your bid.

******Please Note:

• Vehicle Options line: Suppliers must enter “0.00” in the unit price section of the item grid.

• Delivery line: Suppliers must enter “0.00” in the unit price section of the item grid.

Line Pricing Info:

Product model lines refer to base models and shall include all standard options and equipment, title and document fees, and any additional charges, excluding the options and delivery charges. The submitted bid price should reflect the total price of the vehicle with the only other allowable charge to be paid by the State of Alabama being the options and delivery charge as specified.

Vehicle options must be sold at or below dealer invoice cost. All options must be factory installed unless otherwise noted on the options price list supplied to the Division of Procurement by the awarded supplier and approved by the Division of Procurement. Proof of dealer cost may be requested and must be supplied within 2 business days from the date of request. Failure to provide proof of dealer cost may result in contract cancellation.

Delivery line will be quoted per order based on the following requirements:

No delivery charges will apply to deliveries made within 20 miles of dealership location.

For deliveries exceeding a distance of 20 miles, no charges will apply to the 20-mile radius of dealership location. The maximum charge allowed will be $2.00 per mile, calculated one way by shortest route shown from origination to destination from the contract supplier’s dealership to the delivery destination.

Delivery mileage can be calculated via any internet mapping tool. Documentation showing mileage calculations may be requested from the agency, State Purchasing, or the ordering entity and must be provided within two (2) business days from the date of request.

Delivery/pick-up:

If vehicle delivery exceeds twenty (20) miles, vehicle(s) will either be picked-up at the contract dealership or delivered to the delivery destination per the delivery charges term and condition with the cost of delivery added to the PO on the vehicle delivery line.

When vehicles are ready for pickup at the dealership, the contract supplier must communicate in writing the delivery notification to the ordering agency. The ordering agency will make every effort to pick up the vehicle(s) within seven (7) calendar days.

All vehicles delivered/picked up must have 2 sets of keys and a minimum of 5 gallons of fuel.

Warranty cards and service policy must accompany each vehicle when they are delivered/picked-up, as the warranty will go into effect at this time. Vehicles must also be serviced and ready for use at time of delivery/pick up.

All titles, fees, as well as other charges, are to be paid by the contract supplier. The supplier must furnish a prepaid certificate of title in the name of the agency that purchased the vehicle(s). The title will change upon acceptance of delivery to the agency.

Contract period:

Establish a 12-month contract with an option to extend for a second, third, fourth, and fifth 12-month period with the same pricing, and terms and conditions. The second, third, fourth, or fifth 12-month period, if agreed by both parties, would begin the day after the first, second, third, or fourth 12-month period expires. Any successive extension must have written approval of both the state and supplier no later than 30 days prior to expiration of the previous 12-month period.

Descriptive literature:

Suppliers may be required to provide complete descriptive, technical literature for evaluation. Reference to literature with a previous bid or to a website will not satisfy this requirement.

Literature, if requested, must be provided within 5 business days from the date of request. The literature must show the line-item number on the bid and the make/model. Failure to provide the literature as outlined above may result in the rejection of your bid on that line item.

Physical inspection and operational evaluation may also be required without cost or obligation to the

State of Alabama.

Requested information: Any additional information requested from a supplier must be furnished within five (5) days from receipt of request.

In State Dealership:

Effective June 3, 2015, Act 2015-306, SB20, amends Section 23-1-50.1, Code of Alabama 1975, to require that state motor vehicles acquired for the Fleet Management Program of the Department of

Transportation or other state operated motor vehicle acquisition program must be purchased or leased from a motor vehicle dealership located in this state.

Quantity:

The exact quantity of purchases for each item listed is not known. The Division of Procurement does not guarantee that the state will purchase any quantity.

Administrative fee:

Awarded bidder(s) are to pay the State an administrative fee for all sales paid under this contract. This fee will be 1% (0.01) of the total dollar amount for all sales paid. The fee is to be remitted the first month of each quarter before the 20th and will represent a single, one-time payment for all sales paid during the prior quarter and as adjusted for errors associated with earlier quarters. This fee is not to be listed as a separate cost on invoices. The awarded bidder(s) will be required to provide a summary report each quarter before the 20th listing sales paid during the prior calendar quarter. This report is to include the quarter being reported, the master agreement number, purchasing entity, sales amount, and fee amount. A report is due even when there is no activity. This report is to be sent electronically to telecom.admin@oit.alabama.gov. A copy of the summary report is to also accompany the payment. The remittance is to be identified with the reporting quarter and master agreement number. Failure to comply with provisions of this paragraph will be grounds for termination of the contract(s).

Reports and Payments will be due according to the following schedule:

October, November, December – Due by January 20th

January, February, March – Due by April 20th

April, May, June – Due by July 20th

July, August, September – Due by October 20th

Remittance is to be payable to the "State of Alabama Department of Finance" and be sent to:

Alabama Department of Finance

Division of Accounting and Administration

PO Box 300658

Montgomery, Alabama 36130-0658

Reporting and payments are required on an individual contract basis. If supplier has multiple agreements subject to an administrative fee, each agreement must be reported and paid separately and not combined with other agreements.

The definition of sale, for the purpose of this bid only, will be at the time of vehicle delivery and acceptance by the agency.

Only the base vehicle price will be used toward the "total dollar amount" for calculating the administrative fees. Administrative costs, such as title fees and charges for options and delivery fees will not be included in the calculation of the administrative fees.

Failure to comply with the provisions of this term and conditions as outlined above, may result in the cancellation of the contract, and the supplier’s possible debarment from doing business with the State of

Alabama for an indeterminate period.

Price Escalation:

If, during the performance of this contract, the cost of material, labor, or any other contract component significantly increases through no fault of the supplier, a price increase may be considered. Supplier should provide justification of any price increase for materials, labor, or any other contract component, including documentation from the manufacturer where applicable. All price increases must be approved by both the state and the supplier in writing. Any de-escalation in price shall be passed onto the state immediately while still meeting all specifications, terms, and conditions of the contract.

Electronic Payment:

Suppliers awarded in response to this ITB must accept EFT forms of electronic payment at no additional cost to the State.

Payment terms:

All state agencies and universities payment terms are net 30 after vehicle delivery and receipt of correct invoice.

All other local governmental entities payment terms are upon vehicle delivery and receipt of correct invoice.

Production/close-out dates:

The initial contract period will be for the year model(s) as designated in the line descriptions. The manufacturer determines production and close out dates, which will be provided by the awarded suppliers to the Division of Procurement at the earliest possible date.

Standard features and options:

Purchasing optional equipment on state motor vehicles that is unnecessary for the proper functioning of the automobile or safety of the driver and passengers is prohibited.

All vehicles shall come equipped with all standard equipment and options as shown as part of the base vehicle. This standard equipment and options on the base line must be factory installed.

Options not listed as part of the awarded base vehicle must be sold under the vehicle option line and must be factory installed, unless approved by state purchasing prior to award, and must be sold at dealer invoice cost.

All vehicles being ordered with additional options beyond those shown on the base vehicle contract line must have a quote from the awarded supplier showing the options code and dealer invoice price.

Vehicles sold under this contract must be free of dealership logos, decals, or advertising.

Colors:

Vehicles must be factory colors. Colors will be stated on the purchase order.

Ordering process:

Purchases for state agencies will be made by contract purchase orders (PO’s) showing specific shipping information. Cities, counties, school systems and other political subdivisions will be responsible for issuing their own purchase orders directly to the supplier.

Options Pricing:

All options must be sold at dealer invoice cost. All options must be factory installed unless otherwise noted on the options price list supplied to the Division of Procurement by the awarded supplier. Options pricing must be supplied to the agency within 2 business days from date of request. Agencies may request standard features to be deleted, if possible, with a reduction to the vehicle cost. This reduction will be shown on the quote, invoice, requisition, and purchase order as a negative cost.

Proof of dealer cost may be requested and must be supplied within 2 business days from the date of request. Failure to provide proof of dealer cost may result in contract cancellation.

Quotes:

Suppliers will notate the contract and line number on any quotes provided to agencies.

Items included in the base bid price (such as title, fuel, keys, warranty, etc.) must not be shown as a separate cost on option line.

Credit Applications/Business Licenses, etc.:

Suppliers may not require any state or other governmental entity buying from this contract to complete credit applications or any other forms.

State agencies or other local governmental entities purchasing from this contract may not require suppliers to obtain business or other licenses or complete any other forms.

Division of Procurement Supplier Expo:

Contract holders are required to participate in the first Supplier Expo hosted by the State of Alabama occurring within the term of the agreement. Participation is optional for the remainder of the contract term.