IFB_No._115763.pdf

April 8, 2025

TO PROSPECTIVE BIDDERS

SUBJECT: INVITATION FOR BID (IFB) No. 115763

Mail Presort Services for the EDD facility located at 3704 Parkway Place West Sacramento, CA 95691 Term: August 1, 2025 through June 30, 2028

The Employment Development Department (EDD) invites you to submit your bid for the above service in accordance with the attached Specifications.

If you wish to bid, see the Instructions to Bidders. If you make any additions or modifications to the IFB package, it may result in the rejection of your bid. The EDD reserves the right to reject any or all bids. Disabled Veteran Business Enterprise Participation and Incentive requirements are waived for this IFB.

Bids must be received and date stamped in the Contracts Services Group no later than

Wednesday, April 23, 2025 by 3:00 p.m. (PT)

If you have any questions, please do not hesitate to contact me.

/s/CLAYTON WOLERY Associate Contract Analyst

Enclosures

Cc: Brian Kissee

Employment Development Department 722 Capitol Mall, MIC 62-C

P.O. Box 826880 Sacramento, CA 94280-0001

Bid Due Date: April 23, 2025 Time: 3:00 p.m. (PT)

Exhibit Pages

Instructions to Bidders

A Scope of Work

Attachment A-1, Specifications

Attachment A-2, Monthly Summary of Mail Processed………………. 1

Attachment A-3, State of California Holiday Schedule……………….. 1

B Budget Detail and Payment Provisions……………………………………….. 2

C *General Provisions – 02/2025

D Special Terms and Conditions

E STD 213, Sample Standard Agreement

F Cost Proposal

G Bidder Declaration

H Contractor Certification Clauses…………….…………………………………. 4

I Certification Regarding Debarment…………………………………………….. 2

J Darfur Contracting Act Certification……………………………………………... 2

K California Civil Rights Laws Certification………………………………………... 1

L Certification Regarding Lobbying………………………………………………… 3

M STD 204, Payee Data Record……………………………………………………. 2

N STD 205, Payee Data Record Supplement……………………………………... 2

*View at: https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-Services- Resources-List-Folder/Standard-Contract-Language

Invitation for Bid No. 115763

STATE OF CALIFORNIA

EMPLOYMENT DEVELOPMENT DEPARTMENT

INSTRUCTIONS TO BIDDERS

INVITATION FOR BID (IFB) REQUEST

1. Submission of Bids

a. Failure to read these instructions, the Specifications, and the Terms and Conditions included in this bid package will be at the bidder's risk. Written instruction(s) regarding the submission of bids shall take precedence over any verbal instruction(s).

b. Bidders shall complete, sign, and return all of the following documents listed below: The exterior of your envelope must clearly be noted: “INVITATION FOR BID, DO NOT

OPEN IN MAIL ROOM, IFB NO. 115763.”

Exhibit F Cost Proposal

Exhibit G Bidder Declaration

Exhibit H Contractor Certification Clauses (CCC 04/2017)

Exhibit I Certification Regarding Debarment

Exhibit J Darfur Contracting Act Certification

Exhibit K California Civil Rights Laws Certification

Exhibit L Certification Regarding Lobbying

Exhibit M Payee Data Record, STD 204

Exhibit N Payee Data Record Supplement, STD 205, if applicable

CASS/MASS Certification

USPS NCOALink/MPE address update technology Certification

Certificate for the processing of First Class Letters and flat sized mailings

Verification of technology capable of re-dating mail during the presort process

Historical USPS documentation evidencing average daily sorting volumes of at least 500,000 pieces within the last twelve (12) months

Copy of valid Class A or C California Driver’s License, or Motor Carrier Permit, dependent on type of vehicle used while providing services

Secretary of State Certification of Status, is required if your company is a Corporation, Limited Liability Company (LLC), or Limited Partnership (LP). (Refer to Registered To Do Business in California of these Instructions For Bidders).

c. Documents must be signed by an authorized representative of the bidder’s firm. The forms must be completed in ink or typewritten. If errors are made, they must be

IFB No. 115763 crossed out and corrections printed in ink or typewritten adjacent to error. Corrections must be initialed in ink by person signing the bid forms.

d. The EDD reserves the right to reject any or all bids and may waive any immaterial deviation or defect in the bid. The EDD’s waiver of any immaterial deviation or defect shall in no way modify the solicitation documents, or excuse the bidder from full compliance with the solicitation specification if awarded the contract. The EDD is not required to award an agreement.

e. Bid packages must be received and time stamped in Contract Services Group no later than 3:00 p.m. (PT) on the bid closing date of April 23, 2025. Signed copies of the sealed bid package are to be mailed or delivered to:

Email Delivery:

Clayton.Wolery@edd.ca.gov

Regular, Overnight and/or Express Delivery:

Employment Development Department Mail Services 722 Capitol Mall, Room 2071 Sacramento, CA 95814 Attn: Clayton Wolery, MIC 62-C

Bids received and time stamped after 3:00 p.m. (PT) on the bid closing date of April 23, 2025, will be considered "late" and will be returned to sender.

4. Online Small Business (SB) and Disabled Veteran Business Enterprise (DVBE) Certification Process

California’s SB and DVBE firms can now file their applications and get certified online via the Department of General Services website at: https://www.dgs.ca.gov/PD/Services/Page- Content/Procurement-Division-Services-List-Folder/Register-Apply-or-Renew-a-Small- Business-and-Disabled-Veteran-Business-Enterprise. Small Businesses and DVBEs can access the numerous benefits that come along with certification in a more timely and efficient manner.

5. Replacement of Disabled Veteran Business Enterprise Subcontractors

If for this Agreement, the Contractor made a commitment to achieve Disabled Veteran Business Enterprise (DVBE) participation, then the Contractor must within 60 days of receiving final payment under this Agreement (or within such other time period as may be specified elsewhere in this Agreement) certify in a report to the awarding department: (1) the total amount the prime Contractor received under the Agreement; (2) the name and address of the DVBE(s) that participated in the performance of the Agreement; (3) the amount each DVBE received from the prime Contractor; (4) that all payments under the Agreement have been made to the DVBE(s), and (5) the actual percentage of DVBE participation that was achieved. A person or entity that knowingly provides false information shall be subject to a civil penalty for each violation (Military & Veterans Code section 999.5(d)).

The Contractor understands and agrees that should award of this Agreement be based in part on their commitment to use the DVBE subcontractor(s) identified in their bid or offer, per Military and Veterans Code section 999.5(e), a DVBE subcontractor may only be replaced by another DVBE subcontractor and must be approved by the Department of General Services (DGS).

Changes to the scope of work that impact the DVBE subcontractor(s) identified in the bid or offer and approved DVBE substitutions will be documented by contract amendment.

Failure of the Contractor to seek substitution and adhere to the DVBE participation level identified in the bid or offer may be cause for contract termination, recovery of damages under rights and remedies due to the State and penalties as outlined in Military and Veterans Code section 999.9; Public Contract Code section 10115.10 or P.C.C. § 4110 (applies to public works only).

6. Award of the Agreement

a. Award will be made to the lowest responsible bidder meeting specifications and offering to supply the services described. The firm submitting the lowest responsible bid may be required to submit evidence that they have available, as needed, sufficient resources to provide the necessary equipment and personnel to enable them to meet the requirements of the Contract, and may also be required to furnish information as to their financial responsibility.

b. It is understood and agreed that following the award of the Contract, the successful bidder shall agree to comply with all Exhibits attached herein, and provide the required documents requested (i.e., bonds, insurance certificates, etc.) in order for the EDD to complete the execution of a Standard Agreement (STD. 213).

c. Small Business/Microbusiness (SB/MB) and Small Business/Nonprofit Veteran Service Agency (SB/NVSA) Certification Preferences

A SB/MB and SB/NVSA Certification Preferences are applicable to the award of this Contract.

(1) Certified SB/MB and SB/NVSAs may claim preference when submitting a bid on this Contract. The preference is equal to five percent (5%) of the lowest responsible bid.

When the lowest responsible bid is not submitted by a certified small business, the preference becomes applicable. Please note that the preference is used for computation purposes only (to a maximum amount of $50,000) in determining the successful bidder. It does not alter the amount of the resulting contract.

(2) To learn more about the SB/MB and SB/NVSA Preference Programs and how your business might qualify, contact the Office of Small Business and DVBE Services at

(916) 375-4940.

d. California Certified Small Business Subcontractor Preference

A five percent (5%) bid preference is available to a non-small business claiming twenty-five percent (25%) California certified small business subcontractor participation. If claiming the non-small business subcontractor preference, the bid response must include a list of the small business(es) with which you commit to subcontract in an amount of at least twenty-five percent (25%) of the net bid price with one or more California certified small businesses. Each listed certified small business must perform a “commercially useful function” in the performance of the contract as defined in Government Code section 14837(d)(4).

The required list of California certified small business subcontractors must be attached to the bid response and must include the following: 1) subcontractor name; 2) address;

3) phone number; 4) a description of the work to be performed and/or products supplied;

5) and the dollar amount or percentage of the net bid price (as specified in the solicitation) per subcontractor.

Bidders claiming the five percent (5%) preference must commit to subcontract at least twenty-five percent (25%) of the net bid price with one or more California certified small businesses. Completed certification applications and required support documents must be submitted to the Office of Small Business and DVBE Services no later than 5:00 p.m.

on the bid due date, and the Office of Small Business and DVBE Services must be able to approve the application as submitted. Questions regarding certification should be directed to the Office of Small Business and DVBE Services at (916) 375-4940.

7. Rejection of Bids

a. If the bid is received after the exact time and date as stipulated in the bid package, the bid shall be rejected.

b. If it is found that a bidder is not responsible (i.e., has not paid taxes; has no business license; has submitted a bid when the bidder’s license is suspended on the date of the bid opening and/or award of the Contract, or during the proposed term of the Agreement;

submitted a bid without an authorized signature; falsified any information in the proposal package or has provided poor performance on a previous contract with the EDD, etc.), the bid/proposal shall be rejected.

c. If it is found, upon license verification with the Contractor's State Licensing Board, that a bidder's license is suspended on the date of the bid opening and/or award of the Contract, or during the proposed term of the Agreement, the proposal shall be considered nonresponsive and shall be rejected.

d. The EDD reserves the right to reject any and all bids and to waive any immaterial deviation or defect in the bid. The EDD’s waiver of any immaterial deviation or defect shall in no way modify the bid document or excuse the bidder from full compliance with the solicitation document specifications if awarded a Contract.

8. Tie Bids

In the event of a tie between two bidders, a coin toss will be used to determine the winner.

Any coin toss shall be observed by witnesses, and the tied bidders would be invited to have representatives present.

9. Subcontractors

No subcontracting will be allowed to circumvent competitive bidding. A certified Small Business/Microbusiness, Small Business/Nonprofit Veteran Service Agency or a certified Disabled Veteran Business Enterprise will only be permitted to subcontract in order to meet Department requirements and/or preferences. The subcontracting services and amount shall not exceed 25 percent (25%) of the bid. The Contractor shall be solely responsible for fulfilling the requirements of the bid. If it is anticipated that subcontractors will be used, the bid must include the name(s) of person(s) or firm(s), and must specify the portions and monetary percentages of the work to be done by them.

10. Subcontractors Substitution

If the EDD gives written approval to subcontract, Public Contract Code section 4107 authorizes an awarding authority to consent to substituting a subcontractor when the subcontractor listed in the bid fails or refuses to execute a written Contract for the Scope of Work specified in the subcontractor's bid, and at the price specified in the subcontractor's bid.

11. Disposition of Bids

All material submitted in response to this bid package will become the property of the EDD and will become a public record after Award.

12. Grounds For Protest

a. Those who may protest are as follows:

For RFQ/IFBs, the lowest responsible bidder meeting the specifications (if not awarded the Contract).

For RFPs, any proposer who claims he/she should have been awarded the Contract if the EDD had scored his or her proposal correctly, or if the agency had correctly followed the procedures specified in the P.C.C.

b. There is no protest if the awarding agency rejects all bids or proposals, based on the interest of the State.

13. Protest Exclusions

The State has no jurisdiction to consider a protest when:

The Contract is considered a public works contract.

The Contract award is for a type of contract not subject to the protest procedures. This category includes contracts for maintenance, modification, and so forth of real or personal property, including equipment and contracts for professional services under Government Code section 4525.

The protestant was not the lowest responsible bidder or the highest-scored proposer.

The protestant was not a bidder or proposer, and seeks to contest the award. The only recourse in this case is through the civil courts.

The protest was not submitted in a timely manner.

The grounds for the protest do not meet the permissible grounds stated in the P.C.C.

14. Notification of the Right to Protest

Unsuccessful bidders who wish to protest this award must submit a detailed, written statement of protest, including the IFB/RFP No., the name of the State agency involved, and the agency contact person. The protest must be submitted within five (5) working days following the bid opening. All protests must be submitted to both of the following:

Department of General Services Office of Legal Services

Attention: Bid Protest Coordinator 707 Third Street, 7th Floor, Suite 7-330

West Sacramento, CA 95605 Bid Protest Coordinator Email address: OLSProtests@dgs.ca.gov

Contract Services Group 722 Capitol Mall, MIC 62-C Sacramento, CA 95814

FAX: (916) 319-1684

15. Conditions and Commitment

By signing and submitting a bid package, the bidder acknowledges it has read, understood, and agrees to the following provisions:

a. General Provisions – 02/2025 available for viewing at: GTC 02/2025

b. Performing a Commercially Useful Function: In accordance with Government Code section 14837 and Military and Veterans Code section 999, all certified SB/MB or DVBE contractors, subcontractors and suppliers that bid on or participate in a state contract, regardless of whether it is a verbal or written solicitation must perform a Commercially Useful Function (CUF). A certified SB/MB or DVBE is deemed to perform a CUF if the business does all of the following:

Is responsible for the execution of a distinct element of the work of the Contract.

Carries out its obligation by actually performing, managing, or supervising the work involved.

Performs work that is normal for this business services and functions.

Is responsible, with respect to products, inventories, materials, and supplies required for the contract, for negotiating price, determining quality and quantity, ordering, installing, if applicable, and making payment.

Is not further subcontracting a portion of the work that is greater than that expected to be subcontracted by normal industry practices.

c. Payee Data Record, STD. 204

Revenue and Taxation Code section 18646 requires state agencies to file information tax returns (IRS Form 1099) for certain types of payments made to vendors. The successful bidder will be required to complete and submit a Payee Data Record, STD. 204 to the EDD before processing payment for services. Upon completion of the work in a manner satisfactory to the EDD, the EDD agrees to make payments in accordance with the contract provisions.

d. California Taxpayer and Shareholder Protection Act of 2003

This solicitation and any resulting contract are subject to all requirements as set forth in the Public Contract Code section 10286 which includes, but is not limited to, providing written submission of a declaration stating that the supplier is eligible to contract with the State of California pursuant to statutory requirements.

Failure of the supplier to comply with and provide information, when requested by the awarding department within the time indicated, will cause the supplier's bid response to be considered nonresponsive and their bid will be rejected.

e. Registered To Do Business In California

Corporations, Limited Liability Companies (LLCs), and Limited Partnerships (LPs) must be registered with the California Secretary of State to be awarded a contract. The Secretary of State Certificate of Status must be included with the bid. The Secretary of State may be contacted as follows:

California Secretary of State Division of Corporate Filing and Services

1500 Eleventh Street, Third Floor Sacramento, CA 95814-5701

Certification Unit: (916) 657-5251

Required document(s) may also be obtained at the following website:

https://businesssearch.sos.ca.gov/

f. Prohibition of Tax Delinquents from Contracting

The State of California is prohibited from entering into any contracts for the acquisition of goods and services with persons whose name appears on either list of the 500 largest tax delinquencies pursuant to section 7063 or section 19195 of the Revenue and Taxation Code. Reference also to P.C.C. § 10295.4.

Bidder certifies that it is not included on the California Department of Tax and Fee Administration list at: https://www.cdtfa.ca.gov/taxes-and-fees/top500.htm or the Franchise Tax Board list at: https://www.ftb.ca.gov/aboutFTB/Delinquent-Taxpayers.shtml

g. Loss Leader

It is unlawful for any person engaged in business within this state to sell or use any article or product as a “loss leader” as defined in California Business and Professions Code section 17030.

h. Declaration Forms

All bidders must complete the Bidder Declaration GSPD-05-105 and include it with the bid response.

Bidders who have been certified by California as a Disabled Veteran Business Enterprise Declaration (DVBE) (or who are bidding rental equipment and have obtained the participation of subcontractors certified by California as a DVBE must also submit a completed form(s) STD. 843 (Disabled Veteran Business Enterprise Declaration).

All disabled veteran owners and disabled veteran managers of the DVBE(s) must sign the form(s). The completed form should be included with the bid response. At the State’s option prior to award, bidders may be required to submit additional written clarifying information. Failure to submit the requested written information as specified may be grounds for bid rejection.

i. Insurance Requirement

The Contractor agrees the insurance herein provided for shall be in effect at all times during the term of this Agreement. In the event said insurance coverage expires at any time during the term of this Agreement, the Contractor agrees to provide at least 30 days prior to said expiration date, a new certificate of insurance evidencing insurance coverage as outlined below for not less than the remainder of the term of this Agreement, or for a period of not less than one year. New certificates of insurance are subject to the approval of the Department of General Services, and the Contractor agrees that no work or services shall be performed prior to the giving of such approval. In the event the Contractor fails to keep in effect at all times insurance coverage as herein provided, the EDD may, in addition to any other remedies it may have, terminate this Agreement upon the occurrence of such event. The Contractor shall provide written notice to the EDD within five (5) business days of any cancellation, non-renewal, or material change that affects required insurance coverage.

The Contractor shall display evidence of the following coverage on an ACORD certificate:

j. General Liability Insurance – The Contractor shall furnish to the EDD a certificate of insurance prior to commencement of work stating there is general liability insurance in effect for the Contractor in an occurrence form with limits not less than $1,000,000 per occurrence for bodily injury and property damage combined.

The certificate of insurance must include the following provision stating:

“The State of California, its officers, agents, employees and servants are included as additional insured, but only with respect to work performed for the EDD under this Contract.” The additional insured endorsement must accompany the certificate.

k. Workers' Compensation and Employer’s Liability Insurance - The Contractor shall furnish to the EDD a certificate of insurance evidencing Workers’ Compensation and Employers Liability Insurance presently in effect with limits not less than $1,000,000 by an insurance carrier licensed to write Workers' Compensation insurance in California. Such certificate shall include the name of the carrier and the policy inception and expiration dates. If the Contractor is self-insured for Workers’ Compensation, a certificate must be presented evidencing Contractor is a qualified self-insurer in the State of California.

l. Automobile Liability Insurance, if applicable - The Contractor shall furnish to the EDD a certificate of insurance evidencing automobile liability insurance presently in effect for the Contractor of not less than $1,000,000 per accident while utilizing a motor vehicle in the performance of this Contract. Such insurance shall cover liability arising out of a motor vehicle including owned, hired and non-owned motor vehicles.

m. Environmental Liability Insurance, if applicable – The Contractor and any subcontractors shall furnish to the EDD a certificate of insurance evidencing environmental liability insurance presently in effect for the Contractor of not less than $1,000,000 per occurrence for bodily injury, property damages and costs incurred for clean-up and removal of substances causing pollution conditions. This requirement can also be met by securing one of the following: (1) an endorsement to the Contractor’s general liability insurance overriding the general liability pollution exclusion or; (2) an endorsement evidencing pesticide/herbicide coverage afforded to the Contractor’s general liability policy.

n. Iran Contracting Act Certification, if applicable

Pursuant to the Iran Contracting Act of 2010 (P.C.C. sections 2200 - 2208 are “the Act”), vendors are ineligible to bid on, submit a bid for, enter into, or renew any contract with the

State for goods or services of one million dollars ($1,000,000) or more if the vendor engages in investment activities, in Iran, as defined in the Act.

Bidder certifies that it is not on the current list of Entities Prohibited from Contracting with Public Entities in California per the Act found at:

https://www.dgs.ca.gov/PD/Resources/Page-Content/Procurement-DivisionResources- List-Folder/List-of-Ineligible-Businesses

o. California Public Records Act (PRA)

Upon award, all documents and information therein, submitted in response to this IFB become property of the State of California and will be regarded as public records under the Public Records Act, pursuant to Government Code section 6250, et seq.

p. Executive Order N-6-22 – Russia Sanctions

On March 4, 2022, Governor Gavin Newsom issued Executive Order N-6-22 (the EO) regarding Economic Sanctions against Russia and Russian entities and individuals.

“Economic Sanctions” refers to sanctions imposed by the U.S. government in response to Russia’s actions in Ukraine, as well as any sanctions imposed under state law. By submitting a bid or proposal, the Contractor represents that it is not a target of Economic Sanctions. Should the state determine the Contractor is a target of Economic Sanctions or is conducting prohibited transactions with sanctioned individuals or entities, that shall be grounds for rejection of the Contractor’s bid/proposal any time prior to Contract execution, or, if determined after Contract execution, shall be grounds for termination by the EDD.

q. Generative Artificial Intelligence (GenAI) Technology

The State of California seeks to realize the potential benefits of GenAI, through the development and deployment of GenAI tools, while balancing the risks of these new technologies.

Bidder / Offeror must notify the State in writing if it: (1) intends to provide GenAI as a deliverable to the State; or (2), intends to utilize GenAI, including GenAI from third parties, to complete all or a portion of any deliverable that materially impacts: (i) functionality of a State system, (ii) risk to the State, or (iii) Contract performance. For avoidance of doubt, the term “materially impacts” shall have the meaning set forth in State Administrative Manual (SAM) § 4986.2 Definitions for GenAI.

Failure to report GenAI to the State may result in disqualification. The State reserves the right to seek any and all relief to which it may be entitled to as a result of such nondisclosure.

Upon notification by a Bidder / Offeror of GenAI as required, the State reserves the right to incorporate GenAI Special Provisions into the final contract or reject bids/offers that present an unacceptable level of risk to the State.

Government Code 11549.64 defines “Generative Artificial Intelligence (GenAI)” as an artificial intelligence system that can generate derived synthetic content, including text, images, video, and audio that emulates the structure and characteristics of the system’s training data.

EXHIBIT A

SCOPE OF WORK

(Standard Agreement)

1. This Agreement is entered into by and between the Employment Development Department, hereinafter referred to as the EDD, and TBD, hereinafter referred to as the Contractor, for the purpose of providing Mail Presort Services for the EDD facility located at 3704 Parkway Place, West Sacramento, CA 95691, in accordance with Invitation for Bid No. 115763.

2. The Project Representatives during the term of this Agreement will be:

State Agency Contractor

Attn: Brian Kissee 3704 Parkway Place, MIC 51 West Sacramento, CA 95691

TBD

Attn:

Phone: (916) 375-6863 Email: Brian.Kissee@edd.ca.gov

3. Project Representatives may be changed by written notice without an amendment to this

Agreement.

4. The services shall be provided in accordance with Attachment A-1, Specifications, Attachment A-2, Monthly Summary of Mail Processed, Attachment A-3, State of California Holiday Schedule, which are incorporated as a part of this Agreement.

5. Health and Safety Requirements

The Contractor when entering the EDD facility and/or property is expected to be familiar with and abide by all statewide and locally mandated health and safety requirements. Such requirements include, but are not limited to, following the California Department of Public Health’s (CDPH) Guidance for the Use of Face Coverings published on March 3, 2023 (along with any subsequent versions) and remaining compliant with personal protective equipment (PPE) and other safety equipment requirements provided under state and federal occupational safety and health laws.

The EDD also requires that the Contractor follow additional guidelines from the CDPH and public health officials, such as avoiding close contact with others and engaging in hygienic practices while working. The EDD reserves the right to require stricter requirements than are recommended by local and state public health authorities. Non-compliance by the Contractor, its employees, or any subcontractors may result in the EDD refusing entry onto, or removal from, the EDD property. A breach of these requirements grants the EDD the right to terminate this Agreement.

ATTACHMENT A-1

SPECIFICATIONS

(Standard Agreement)

I. GENERAL

A. Furnish mail presort services and reports per the specifications in this Agreement. The Contractor shall presort the EDD letter and flat size mail in accordance with the mail requirements established by the United States Postal Service (USPS), and shall sort the mail by using the most descriptive Zip Code identifiers available in order to receive the best possible rate. It shall be the Contractor’s responsibility to ensure that the EDD mail complies with all applicable USPS Mail Processing Equipment (MPE) postal standards.

B. In the event that such work in required, the Contractor shall be capable of providing an additional “as needed” service that would allow an ongoing separate pre-sort mailing group to be processed independently from other pre-sorted mailing groups, for customer Intelligent Mail Barcodes (IMB) processing including IMB scan tracking and IMB tracing data retrieval. The EDD makes no guarantees that this type of service will be necessary during the terms of this Agreement.

C. The Contractor shall be Coding Accuracy Support System (CASS™) and Multiline Accuracy Support System (MASS™) certified and have USPS NCOALink/MPE address update technology onsite (formerly FASTforward®).

D. The Contractor shall provide historical USPS documentation that their company has sorted average daily volumes of at least 500,000 pieces within the last twelve (12) months (excluding weekends and holidays) while meeting USPS requirements.

E. The Contractor shall not sublet any portion of the work outlined in this Agreement.

F. The EDD’s daily quantities of mail to be processed by the Contractor may range from zero pieces up to 750,000 pieces of letter size mail and up to 10,000 pieces of flat size mail, Monday through Saturday. In the event the maximum quantity is exceeded, a one day advance notice will be provided by the EDD to the Contractor. The EDD does not make any guarantee as to the quantities of mail the Contactor will pick up for processing.

G. Two types of mail will be picked up by the Contractor for presorting: First Class Letter and Flat Size mail.

II. PICK-UP AND DELIVERY

A. The EDD’s mail will be sorted and delivered to the USPS on the date shown on the mail piece.

B. At the time of pick-up, the EDD will provide the Contractor a tray/pallet and piece count for each pick-up. A Pick-Up Slip must accompany each pick-up. At the time of pick-up, the Contractor will sign and date the Pick-Up Slip identifying the number of pieces in each pick-up, and leave a copy for the EDD’s records. A daily report is to be emailed to the EDD Representative the following morning, confirming the total amount of mail presorted on the previous day. These totals will be reconciled against the monthly payment record submitted by the Contactor to the EDD at the end of each month.

C. The EDD will provide mail to be picked up for processing by the Contractor on pallets, postal cages, and/or hampers.

(Standard Agreement)

D. The Contractor must sort all mail using USPS NCOALink/MPE address update technology and must be presented to the USPS on the meter date shown on the mail pieces.

III. SECURITY/INTEGRITY REQUIREMENTS

A. The Contractor will ensure that the EDD mail is transported, received, stored, handled, and shipped in a manner that assures the integrity and security of the documents and information contained therein. No documents shall be left unattended or unsecured at any time.

B. The Contractor’s employees are not authorized to open, use, access, look at, read, remove or copy any documents or records contained within EDD mail.

C. The Contractor shall pick up the EDD’s mail and deliver it directly to the Contractor’s facility for processing. The EDD’s mail shall be locked in the vehicle during transportation to the Contractor’s facility and to the USPS, where applicable.

D. Failure to adhere to these security requirements may result in the immediate termination of this Agreement.

E. The Contractor may move the EDD’s mail from one operating center to another, as permitted by the USPS. Any operating center that processes the EDD’s mail must be operated by the Contractor.

IV. VEHICLE/DRIVER REQUIREMENTS

A. The transport vehicle must be of a size that will accommodate the USPS approved pallets, cages, and/or hampers used by the EDD. In addition, the vehicle must also be equipped with a power lift gate to load and unload the pallets, cages, and/or hampers.

B. The EDD will provide the equipment necessary to perform the loading and unloading of the pallets, cages, and/or hampers including manual or electric pallet jacks, or any other equipment used for such purposes.

C. The driver of the transport vehicle must be in possession of a valid California Driver’s License, either Class A or C, or a valid Motor Carrier Permit, whichever is appropriate for the type of vehicle being driven.

D. In the event that the Contractor’s vehicle breaks down, the Contractor shall ensure that the replacement vehicle used is comparable to the required secured vehicle. The transfer of mail to the replacement vehicle will occur as quickly as practicable and delivery under the terms of this Agreement shall be accomplished as expeditiously as possible.

V. BUILDING REQUIREMENTS

A. The Contractor’s building must be large enough to accommodate the workload and to allow efficient processing of the work covered in this Agreement.

(Standard Agreement)

B. The Contractor’s building must be secured at all times, allowing only authorized personnel access to the equipment during processing of any mail covered under this Agreement.

C. The Contractor performing duties under this Agreement shall allow full access during operational hours to the worksite for the EDD personnel charged with implementation and oversight of any work processes to be performed.

D. The EDD reserves the right to make unannounced visits to the Contractor’s offices and processing facility.

VI. PICK-UP SCHEDULE

Monday through Friday Saturday

11:00 a.m. 7:00 a.m.

5:00 p.m.

A. All EDD metered and/or permit mail ready for pick up by the Contractor at or before 5:00 p.m. Monday through Friday and 7:00 a.m. Saturday will be processed and delivered to the USPS that same day. The EDD will make its best effort to maximize the amount of mail ready for pick up at the earlier pick up times. Any mail not delivered same day will be re-dated by the Contractor and delivered to the USPS the following business day.

B. In the event that the EDD works on a Sunday or state holiday all mail will be dated for the next business day and, the Contractor will be notified at least 1 business day in advance. All mail will be sorted and delivered to the USPS on the date specified on the mail. This service will be provided by the Contractor at no cost to the EDD and would simply be VAR paid or fees at the normal charge for the applicable mail type in accordance with Exhibit B, Budget Detail and Payment Provisions.

C. In the event that there is no mail to be picked up from the EDD, the EDD Representative shall notify the Contractor as soon as possible, but not less than 24 hours in advance.

D. Additional mail pickups or changes to this schedule may be made throughout the term of this Agreement based on the EDD’s needs. The EDD will notify the Contractor of changes by way of phone call and e-mail. The Contractor may propose a change to the pickup schedule, but the EDD retains the right to accept or deny any proposed change.

E. Operational hours are subject to change. The Contractor will be notified of any changes in operational hours and pick-up times by way of phone call and e-mail, and the parties agree to work together in good faith to modify the pickup schedule.

F. Holidays observed by the USPS may differ from Attachment A-4, State of California Holiday Schedule. In addition, the USPS may operate under limited hours on or about various holidays. In the event the USPS observes a holiday not observed by the EDD, or they operate within limited hours, the EDD Representative and the Contractor will agree upon a pick up time(s) acceptable to both parties to accommodate the limited USPS schedule.

(Standard Agreement)

VII. POSTAGE METERING GUIDELINES AND REQUIREMENTS

A. All mail to be picked up by the Contractor for presorting shall be metered or permit First Class letter and Flat Size mail. Postage for permit First Class letter mail will be reimbursed to the Contractor at the AADC Automation presort postage rate. Postage for permit First Class Flat Size mail will be reimbursed to the Contractor at the 5-Digit Automation presort postage rate based on the weight of the mail piece. Current USPS rates for presorted First Class letters and Flat Size Mail can be found at the USPS website (www.usps.com). In the event the EDD submits permit mail, the EDD will maintain the current postage deposit account to ensure prompt payments are made by the EDD for any postage used.

B. Any changes in the USPS AADC Automation presort postage rates for First Class letter and the 5 Digit postage rate for Flat Size mail will be applied to the EDD mail effective the date of the USPS change.

C. The Contractor shall be responsible for any additional postage required above the AADC Automation presort rate for the First Class letter size mail (to include non-qualifying mail). The EDD intends that the Contractor is able to bill the EDD for all postage upgrades, including those based on qualification, and if the Flat Size mail does not meet all automation and address requirements then the Contractor shall bill the EDD only for those postage upgrades that are necessary so that the piece can be submitted at the full rate. Additional postage to the Flat Size mail requiring upgrade to the full rate will be billed to the EDD on a monthly basis.

VIII. TRAYS/SLEEVES/PALLETS/CAGES – REPLACEMENTS

In the event the EDD requires additional trays, sleeves, pallets, or cages, the EDD Representative will contact the Contractor by telephone to request these additional items.

The Contractor shall make every effort to deliver these supplies as soon as reasonably possible on the date the request is made.

IX. REJECTED MAIL

A. All rejected mail shall be returned to the EDD the following business day.

B. Rejected mail shall be define as the following:

1. Mail that does not conform to the USPS minimum/maximum size (proper height to length aspect ratio) and thickness requirements for 1, 2, and 3 ounce Letter Size mail.

2. International mail.

3. Mail with insufficient address line information necessary for delivery by the USPS.

(Standard Agreement)

X. LATE DELIVERY TO USPS

A. If the EDD’s mail cannot be delivered to the USPS on the agreed upon schedule the Contractor must notify the EDD Representative by 10:00 a.m. the following business day.

B. Upon notification, the EDD may choose one of the following options:

1. Mail is re-dated and delivered late by the Contractor to the USPS.

2. Mail is returned by the Contractor to the EDD.

Note: Any costs associated with any of these options will be paid for by the Contractor (e.g. labor, postage, delivery fees, etc.).

XI. RE-DATING REQUIREMENTS

A. The Contractor shall not re-date or delay the processing of mail at any time without the prior written approval of the EDD Representative.

B. The Contractor’s MPE shall have the ability to re-date mail while sorting.

C. Re-dating of mail by the Contractor will be provided at no cost to the EDD.

XII. MANAGEMENT REPORTS

A. The Contractor shall maintain accurate daily file(s) that summarize the mail processed for the EDD.

B. The Contractor shall, on a daily basis, provide the EDD Representative with the cumulative summary of the prior day’s (1) mail processed, and (2) mail returned.

C. The Contractor shall provide the EDD with a monthly summary of the mail processed (Attachment A-2) and, upon request, a year-to-date cumulative summary.

D. The EDD will compare the Contractor’s summaries of the mail processed with the slip(s) that accompany each pick-up (Pick Up Slip). The Contractor will work with the EDD Representative to reconcile any differences between the pick-up slips and the Contractor’s summary reports.

XIII. TECHNICIANS

The Contractor shall provide fully trained and qualified technicians to perform the work specified under this Agreement.

(Standard Agreement)

XIV. WARRANTIES

A. The Contractor warrants that:

1. The services shall be performed promptly, with diligence, and in a competent and professional manner in accordance with the description of services identified in this Agreement and to the satisfaction of the EDD.

2. If the EDD believes that there has been a breach of warranty, the EDD Representative will notify the Contractor and set forth the nature of such claimed breach. The Contractor shall promptly investigate the claimed breach and shall either (1) provide information satisfactory to the EDD that no breach of warranty occurred, or (2) promptly take action as may be required to correct the breach.

3. If two or more breaches of warranty occur within any thirty (30) day period the EDD shall have the right to terminate the Agreement immediately.

XV. INFORMATION ACCESS SECURITY AND CLEARANCE

A. The Contractor will not retain any information acquired under the provisions of this Agreement.

ATTACHMENT A-2

MONTHLY SUMMARY OF MAIL PROCESSED

(Standard Agreement)

DATE

TOTAL COUNT SENT RETURNED PIECES TOTAL SORTED (mm/dd/yyyy)

Total

Page 1 of 1 ATTACHMENT A-3

STATE OF CALIFORNIA HOLIDAY SCHEDULE

(Standard Agreement)

DATE HOLIDAY

January 1st New Year’s Day*

3rd Monday in January Martin Luther King, Jr. Day

3rd Monday in February President’s Day

March 31st Cesar Chavez Day*

Last Monday in May Memorial Day

July 4th Independence Day*

1st Monday in September Labor Day

November 11th Veteran’s Day**

4th Thursday; adjacent Friday in November Thanksgiving

December 25th Christmas Day

* If any of these holidays occur on a Saturday, the holiday is not observed via the closing of state offices during the week. If any of these holidays occur on a Sunday, the holiday is observed on the next day (Monday).

** If Veteran’s Day occurs on a Saturday, the holiday is observed on the proceeding Friday. This is the only exception to the Saturday Holiday Rule above. If this holiday occurs on a Sunday, the holiday is observed on the next day (Monday).

EXHIBIT B

BUDGET DETAIL AND PAYMENT PROVISIONS

(Standard Agreement)

1. Invoice and Payment

The total amount of this Agreement shall not exceed _________________________________________($ __). The EDD agrees to pay the Contractor the rate of ($ ) per every 1,000 pieces of Flat Size Mail processed Monday through Friday. For mail processing services that occur on Saturday, the Contractor shall either compensate the EDD the VAR percentage for work performed or charge the EDD the rate of ____________ _($____ ) per every 1,000 pieces of Letter Size Mail processed at the USPS AADC automation presort postage rate. The Contractor will choose the option that they will perform the work under. Upon satisfactory completion of the work to be performed, an invoice, on a monthly basis, in arrears, will be forwarded to the address shown below, for processing. The invoice must reference the EDD Contract No.

M115763-7100 and be sent to:

Employment Development Department Attn: Michael Raschack

3704 Parkway Place West Sacramento, CA 95691-3454

Email: Michael.Raschack@edd.ca.gov

This Agreement requires the Contractor to compensate the EDD for the complete processing of mail as detailed in this Agreement. For services satisfactorily rendered in conformity with the work specified in Attachment A-1, Specifications, the Contractor agrees to compensate the EDD the Value Added Rebate (VAR) percentage of _________ for work performed Monday through Friday. Invoices will be provided on a monthly basis, in arrears, and shall include any postage full rate/upgrades.

In the event the USPS adopts any new/revised postal regulations, procedures, or incentives, not including postage rate changes which are covered in Attachment A-1, Specifications, (section VII(B)), that directly affect the cost or provision of the services (“USPS Changes”), the Contractor may propose an adjustment to the VAR with a written justification. The EDD will review the proposal and respond within 45 days with acceptance or denial of the proposal. The EDD will retain full authority to accept or deny any proposed change to the VAR. Any change will only be made with the express written consent of the EDD.

Payments made to the EDD by the Contractor shall be based on the actual number of pieces of mail processed by the Contractor under the terms of this Agreement. Attachment A-2, Monthly Summary of Mail Processed, must accompany the payment to verify the quantity of mail processed by the Contractor during the previous month. Payments shall be received monthly in arrears and in accordance with the requirements identified above.

Monthly payment notices will be submitted (via email) to the following individual:

Michael Raschack, Staff Services Manager I, at michael.raschack@edd.ca.gov

Monthly payment checks will be sent (via U.S. mail) to the following address:

Employment Development Department FPO/CCU-Misc. Cashiering Desk

722 Capitol Mall, Room 6099 Sacramento, CA 95814

EXHIBIT B

BUDGET DETAIL AND PAYMENT PROVISIONS

(Standard Agreement)

2. Budget Contingency Clause

It is mutually understood between the parties that this Agreement may have been written before ascertaining the availability of congressional and legislative appropriation of funds, for the mutual benefit of both parties, in order to avoid program and fiscal delays which would occur if the Agreement were executed after that determination was made.

This Agreement is valid and enforceable only if (1) sufficient funds are made available by the State Budget Act of the appropriate State Fiscal Year(s) covered by this Agreement for the purposes of this program; and (2) sufficient funds are made available to the State by the United States Government or by the State of California for the Fiscal Year(s) covered by this Agreement for the purposes of this program. In addition, this Agreement is subject to any additional restrictions, limitations or conditions established by the United States Government and/or the State of California, or any statute enacted by the Congress and Legislature, which may affect the provisions, terms or funding of the Agreement in any manner.

The parties mutually agree that if the Congress and/or Legislature does not appropriate sufficient funds for the program, this Agreement shall be amended to reflect any reduction in funds.

The EDD has the option to terminate the Agreement under the 30-day termination clause or to amend the Agreement to reflect any reduction of funds.

3. Prompt Payment Clause

Payment will be made in accordance with, and within the time specified in, Government Code section 927 et seq.

EXHIBIT D

SPECIAL TERMS AND CONDITIONS

(Standard Agreement)

1. Workforce Innovation and Opportunity Act (WIOA)

The Contractor agrees to conform to nondiscrimination provisions of the Workforce Innovation and Opportunity Act (WIOA) and other federal nondiscrimination requirements as referenced in 29 C.F.R. parts 37 and 38.

2. Termination Clause

This Agreement may be terminated by the EDD by giving written notice 30 days prior to the effective date of such termination.

3. Force Majeure

Neither party shall be liable to the other for any delay in or failure of performance, nor shall any such delay in or failure of performance constitute default, if such delay or failure is caused by “Force Majeure.” As used in this section, “Force Majeure” is defined as follows:

Acts of war and acts of god such as earthquakes, floods and other natural disasters such that performance is impossible.

4. Settlement of Disputes

Any dispute concerning a question of fact arising under the term of this Agreement which is not disposed of within a reasonable period of time (ten days) by the Contractor and the EDD employees normally responsible for the administration of this Contract shall be brought to the attention of the Chief Executive Officer (or designated representative) of each organization for joint resolution.

5. Public Convenience and Interference with Office Operation

The Contractor shall make provisions to accomplish the work of this Agreement without undue interference to the occupants of the building and building operations. Corridors and entrances for use of occupants and reasonable access thereto shall be kept clear of building materials, equipment, refuse, etc. The Contractor shall be required to give the occupants reasonable notice when work is to be done.

Noisy motors, cutting, drilling, and fastening equipment must be operated with minimum disturbance to the occupants of the building or adjacent buildings; however, the EDD will not require overtime for such work unless specifically stated in this Agreement.

6. Use of State Facilities

Water, electric light, power, and toilet facilities at the worksite are available free of charge.

Toilet facilities…