ITB 21-22-40 Mail Packages FINAL.pdf

ITB 21/22-40

FLORIDA DEPARTMENT OF REVENUE

INVITATION TO BID

COMMODITES – Acknowledgement Form

Page 1 of 85 pages SUBMIT BID TO:

Florida Department of Revenue Procurement Office Building 2, Suite 1600 2450 Shumard Oak Boulevard

Tallahassee, Florida 32399-0109

AGENCY RELEASE DATE:

05/23/2022

SOLICITATION TITLE: SOLICITATION NO:

Printing, Personalization & Mailing of Various Mail Packages ITB 21/22-40

BIDS WILL BE OPENED:

06/21/2022 3:00 EST and may not be withdrawn within 180 days after such date and time.

VENDOR NAME:

VENDOR MAILING ADDRESS:

CITY – STATE – ZIP: *AUTHORIZED SIGNATURE (MANUAL)

PHONE NUMBER:

FREE NUMBER:

FAX NUMBER: *AUTHORIZED SIGNATURE (TYPED), TITLE

EMAIL ADDRESS:

FEID NO.: *This individual must have the authority to bind the respondent.

TYPE OF BUSINESS ENTITY (Corporation, LLC, partnership, etc.):

I certify that this bid is made without prior understanding, agreement, or connection with any corporation, firm, or person submitting a bid for the same materials, supplies or equipment, and is in all respects fair and without collusion or fraud. I agree to abide by all conditions of this bid and certify that I am authorized to sign this bid for the bidder and that the Bidder is in compliance with all requirements of the Invitation to Bid, including but not limited to, certification requirements. In submitting a bid to an agency for the State of Florida, the Bidder offers and agrees that if the Bid is accepted, the Bidder will convey, sell, assign or transfer to the State of Florida all rights, title and interest in and to all causes of action it may now or hereafter acquire under the Anti-trust laws of the United States and the State of Florida for price fixing relating to the particular commodities or services purchased or acquired by the State of Florida. At the State’s discretion, such assignment shall be made and become effective at the time the purchasing agency tenders final payment to the Bidder.

RESPONDENT CONTACTS: Please provide the name, title, address, telephone number and e-mail address of the official contact and an alternate, if available. These individuals shall be available to be contacted by telephone or attend meetings as may be appropriate regarding the solicitation schedule.

PRIMARY CONTACT: SECONDARY CONTACT:

NAME, TITLE: NAME, TITLE:

ADDRESS: ADDRESS:

PHONE NUMBER: PHONE NUMBER:

FAX NUMBER: FAX NUMBER:

EMAIL ADDRESS: EMAIL ADDRESS:

TABLE OF CONTENTS

SECTION 1 – DEFINITIONS

SECTION 2 – INTRODUCTION

2.1 Background

2.2 Statement of Purpose

2.3 Calendar of Events

2.4 Contract

SECTION 3 – PRODUCT INFORMATION

3.1 Specifications

SECTION 4 – PROCUREMENT RULES AND INFORMATION

4.1 Procurement Officer/Contact Person

4.2 Procurement Rules

4.3 Posting of Recommended Award

SECTION 5 – BID FORMAT AND CONTENTS

5.1 Responsiveness Requirements

5.2 Preferences

5.3 Addendum Acknowledgment Form

5.4 Americans with Disabilities Act

5.5 Redacted Copy

SECTION 6 – AWARD OF CONTRACT

6.1 Responsiveness Review

6.2 Exclusionary Lists Check / Verification

6.3 Licensing / Registration Requirements

6.4 Price Determination

6.5 Reference Checks

6.6 Identical Tie Bids Procedure

6.7 Final Determination

SECTION 7 – CONTRACT TERMS AND SPECIAL CONDITIONS

7.1 Contract

7.2 PUR Forms

7.3 Contract Management

7.4 Disputes

7.5 Vendor’s Expenses

7.6 Employment of Department Personnel

7.7 Force Majeure

7.8 Severability

7.9 Printing Quality ……………………………………………………………………………………………………...27

7.10 Financial Consequences.…………………………………………………………………………………………..27

7.11 Site Inspections ……………………………………………………………………………………………………..29

7.12 Quality Control ………………………………………………………………………………………………………29

7.13 Price Escalation/De-escalation ……………………………………………………………………………………29

7.14 Subcontracting Requirements …………………………………………………………………………………….30

7.15 Disaster Preparedness Plan ………………………………………………………………………………………30

EXHIBIT 1 – SUBMITTAL CHECKLIST

EXHIBIT 2 – SAMPLE CONTRACT

EXHIBIT 3 – REQUIRED PUR FORMS

EXHIBIT 4 - SAMPLE RT-20 ……………………………………………………………………………………………………69

ATTACHMENT 1 – COST INFORMATION SHEET

ATTACHMENT 2 - VENDOR REPRESENTATIVE AND ALTERNATE

ATTACHMENT 3 - REFERENCES

ATTACHMENT 4 – DRUG FREE WORKPLACE PROGRAM CRITERIA

SECTION 1 – Definitions

The following terms used in this Invitation to Bid (ITB) have the following meanings unless the context otherwise clearly requires a different construction and interpretation:

1.1 Breach of Contract:

The condition of the relationship between the Department and the Contractor which exists when the Contractor fails to perform under the terms and conditions of the Contract which may result from this

ITB.

1.2 Contract: The agreement which may result from this ITB between the winning Bidder and the

Department.

1.3 Contractor: The organization or individual providing goods and/or services to the Department in accordance with the terms of the Contract which results from this ITB.

1.4 Department: The State of Florida, Department of Revenue referred to in this ITB document as “the

Department”.

1.5 Desirable Conditions: The use of the words “should” or “may” in this ITB indicate desirable attributes or conditions, but are permissive in nature. Deviation from, or omission of, such a desirable feature, will not in itself cause rejection of a bid.

1.6 MFMP VIP: MyFloridaMarketPlace Vendor Information Portal

1.7 Mail Packages: A Mail Package, at minimum, consists of either a printed document or publication inserted into a #10 mailing envelope or a self-mailer style publication folded and tabbed for mailing through the United States Postal Service. Mail Packages are also referred to as “Products” throughout the bid document.

1.8 Mandatory Responsiveness Requirements: Terms, conditions or requirements that must be met by the bidder to be responsive to this ITB. These responsiveness requirements are mandatory. Failure to meet these responsiveness requirements will cause rejection of a bid. Any bid rejected for failure to meet mandatory responsiveness requirements will not be further reviewed.

1.9 Material Deviations: The Department has established certain requirements with respect to bids to be submitted by bidders. The use of shall, must or will (except to indicate simple futurity) in this ITB indicates a requirement or condition from which a material deviation may not be waived by the Department. A deviation is material if, in the Department’s sole discretion, the deficient response is not in substantial accord with this ITB’s requirements, provides an advantage to one bidder over other bidders, has a potentially significant effect on the quantity or quality of items bid, or on the cost to the Department or otherwise adversely impact the Department’s interest. Material deviations cannot be waived.

1.10 Minor Irregularity: A variation from the ITB terms and conditions which does not affect the price of the bid or give the bidder an advantage or benefit not enjoyed by the other bidders or does not adversely impact the interests of the Department.

1.11 P-Card: Refers to the State of Florida’s purchasing card program, using the Visa platform.

1.12 Purchase Order/Direct Order: The contract document issued by the Department to the Vendor to procure goods and services.

1.13 Vendor, Offeror and Bidder: A legally qualified corporation, partnership, sole proprietor, or other entity submitting a bid to the Department pursuant to this ITB.

1.14 Winning or Successful Bidder: The business or entity submitting the lowest responsive bid, meeting all requirements of the Department’s ITB.

SECTION 2 – Introduction

2.1 Background

The Department’s General Tax Administration Program administers over 30 taxes and fees as well as Reemployment Tax for the Department of Economic Opportunity. The listing of taxes and fees can be found on the Department’s website at floridarevenue.com/taxes. Most of the documents or publications required to administer these taxes and fees are electronic in nature or are produced in-house by our print shop (Publishing Services) and then mailed by our mail facility. Both facilities are in Tallahassee, Florida.

This is a rebid for work previously done on contracts initiated by the Department. However, the number of products, quantity ranges and options have been simplified to streamline the bidding process for vendors. Products that were never or rarely ordered on the old contracts were eliminated from this new solicitation.

The Legislature appropriates funding and the specific audience for each of these TIP mail projects. The volume of documents was established during the annual legislative session. For that reason, it is difficult for the Department to forecast annual mail volumes which may be produced under this contract. The Department currently has three contracts to print, personalize and mail tax documents or publications.

The first contract is for coupon books for sales and use tax and solid waste fees (Contract G0347). The second contract is for tax information and education mail packages. The third contract is for critical high-volume mail packages the Department is required by law to mail to taxpayers or employers. An example of the third contract is the Reemployment Tax Rate Notice (RT-20) that mails to an estimated 650,000 employers annually.

With this ITB, the Department is combining the Tax Information and Education Mail Packages (Contract G0234) and critical high-volume mail packages (Contract G0309) into one contract. Copies of all contracts and the associated ITBs can be requested from the Purchasing Office. Sample documents for all three product types in this ITB will be included in the ITB package along with record layouts for variable data printing.

The print quantity for some time-sensitive mail products exceeds 100,000 mail packages and the required delivery is time sensitive to enable taxpayer compliance. Often, these high-volume products are the result of new legislation and there is not sufficient time to solicit bids for a product specific ITB.

The Department does not have the print and mail capacity to print and mail high volumes within a short time frame. For that reason, the Department seeks to outsource the printing, personalization, and mailing of certain products. The Department also has the need for a disaster preparedness/recovery contract if our internal print facility (Publishing Services) production capabilities are compromised due to a natural disaster or other significant event.

This ITB includes a contract provision which allows for annual price adjustments to contract pricing. The Department realizes that current market conditions may cause unanticipated cost increases. Any price adjustments to contract pricing that may arise sooner than the annual increase date or for an amount larger than what the PPI indicates may be submitted in writing by the Contractor to the Department’s Contract Manager and shall include documentation that substantiates the Contractor’s assertion that an increase is warranted.

2.2 Statement of Purpose

The purpose of this solicitation is to request pricing for the printing, personalization, and mailing of various mail packages in a timely and cost-effective manner. These mail packages are high-volume important tax-related products. The Department wishes to enter into a contract with a responsive and responsible vendor to ensure that the process of providing various mail packages, as required by law, to our business partners will not be delayed due to either peaks in internal production or in the event a natural or other disaster causes a disruption to our in-house print and/or mail facility.

The awarded vendor shall be required to personalize products with the recipient’s name, address, and other specified information, insert the product into an outgoing envelope or fold to create a self-mailer style publication. Products inserted into envelopes may require additional inserts and/or courtesy reply envelopes. When prepared, the vendor will submit the personalized products to the United States Postal Service (USPS) authorities for mailing in pre-sorted ZIP code order to take advantage of all available postal rate discounts.

2.3 Calendar of Events

Listed below are the important actions and dates/times by which the actions must be taken or completed. If the Department finds it necessary to change any of these dates/times, it will be accomplished by addendum. All listed times are local time in Tallahassee, Florida.

Date Time Action

2.3.1 05/23/2022 Release of ITB

2.3.2 06/01/2022 5:00 PM EST Last day for written questions and inquiries

2.3.3 06/07/2022 5:00 PM EST Anticipated date that written responses to written questions/ inquiries will be posted on the MFMP VIP

2.3.4 06/28/2022 3:00 PM EST Bid opening

2.3.5 07/15/2022 3:00 PM EST Anticipated date of posting of recommended award on MFMP VIP

2.3.6 08/15/2022 Anticipated date for issuance of purchase order/direct order or another document

2.4 Contract

This purchase shall be accomplished through a two-party contract. Individual orders may be placed by issuance of purchase orders or by utilization of the Department’s P-Card Program by authorized Department employees.

2.5 Contract Term

The term of the contract shall be for three (3) years from the date of contract signing, with the option to renew once for 1 additional 3-year period.

Section 3 – PRODUCT INFORMATION

The Department is requesting pricing for the production and mailing of tax-related documents or publications to be produced in three different mail package styles:

Product #1) – Personalized documents or publications produced with variable print for mailing that do not include any additional account information required for mailing. Product #1 would be inserted into a window envelope for mailing. (Example: Tax Information Publications or TIPS)

Product #2) - Personalized documents or publications produced with variable print for mailing that include additional taxpayer account information on one or both plies. Product #2 would be inserted into a window style envelope for mailing. (Example: RT-20 Tax Rate Notices)

Product #3) – Personalized self-mailer style publication produced with variable print for mailing with no additional taxpayer account information printed on the publication. (Example: Back to School Tax Holiday TIP)

Pricing is being requested for a variety of document or publication sizes at both First-Class and Marketing Mail rates. Documents or publications will range in size from a single sheet to multiple pages. Documents or publications require printing, addressing, folding, inserting, and/or tabbing or gluing that meet all applicable USPS standards for automated discounts.

For documents or publications using window envelopes, the Contractor is required to provide both the window envelopes and the publications along with folding, addressing and inserting the document or publication into the mailing envelope. Documents and publications to be mailed are specified in this ITB.

Pricing for optional items is being requested for Product numbers 1, 2 and 3. Those options will be detailed in the Product Specifications to follow. Courtesy reply envelopes may be requested by the Department for Product numbers 1 and 2. Pricing for return envelopes is requested in Option #2.

This bid requests pricing for several different quantity ranges within each product type. Separate pricing for First-Class Mail and Marketing Mail is being requested as the preparation time is different for each class of mail.

Marketing Mail with Florida destination mailing addresses is to be dropped at the Bulk Mail Entry Unit in Jacksonville, Florida to achieve maximum postal discounts.

3.1 Specifications

The mail packages covered by this bid are specified as follows:

Product #1 Single personalized sheet, 8 ½” x 11”, prints 1/1 in black ink only and includes outgoing mail envelope.

The components of this product are as follows:

The variable print for this product is limited to the recipient’s name and mailing address including an intelligent mail barcode (IMB) on the mailing envelope.

1-sheet or ply printed 1/1 with black ink on white 8.5” x 11” size 20-pound paper (or equivalent).

Sheet may be personalized on one or both sides.

Outgoing window envelope meeting all USPS standards to maximize postal discounts.

Envelope is constructed with 24-pound white-wove paper. Outgoing envelope is printed 1/0 with black ink. No inside tint is required on envelope. Each mail piece is to contain FIM, IMB and the recipient mailing address should show through the window of the mailing envelope with ¼” margin meeting USPS tap test.

Personalization: The Contractor must presort all documents and publications mailing directly to the recipient to maximize all available postage discounts in accordance with all USPS standards and regulations.

Addressing requirements are further explained in the Postal Requirements section of this ITB.

Those products produced with a detachable coupon that include data that will be read by the Department’s processing equipment shall not exceed a 1% misread rate when processed through the Department’s equipment.

The ink or toner used for the printing and personalization of the document to be returned to the Department for processing cannot be a MICR toner or ink. The ink or toner may contain traces of ferrous oxide. Samples may be required for approval by the Department before production begins. The personalization method used to produce approved samples must be the same method used in producing the documents or publications for mailing. Personalization by ink jet is not acceptable.

Product #2 Single personalized sheet, 8 ½” x 11”, prints 1/1 in black ink only and includes outgoing mail envelope.

The components of this product are as follows:

The variable print for the product is not limited to the recipient’s name and mailing address including an IMB on the mailing envelope. Additional account-specific information will be required on both sides of each document or publication. (Attachment 5)

The account specific data will be sent to the Contractor via File Transfer Protocol (FTP). A sample RT-20 will be included in this ITB as well as a record layout of the data to be personalized on each form as an example of work to be performed under this ITB.

1-sheet or ply printed 1/1 with black ink on white 8 ½” x 11” size 20-pound paper (or equivalent). Sheet may be personalized with account-specific information on both sides of the sheet.

Outgoing window envelope meeting all USPS standards to maximize postal discounts.

Envelope is constructed with 24-pound white-wove paper. Outgoing envelope is printed 1/0 with black ink. No inside tint is required on envelope. Each mail piece is to contain FIM, IMB and recipient mailing address should show through the window of the mailing envelope with ¼” margin meeting the USPS tap test.

Personalization: The Contractor must presort all documents or publications mailing directly to the recipient to maximize all available postage discounts in accordance with all USPS standards and regulations.

Addressing requirements are further explained in the Postal Requirements section of this ITB.

Those products produced with a detachable coupon that include data that will be read by the Department’s processing equipment shall not exceed a 1% misread rate when processed through the Department’s equipment.

The ink or toner used for the printing and personalization of the document to be returned to the Department for processing cannot be a MICR toner or ink. The ink or toner may contain traces of ferrous oxide. Samples may be required for approval by the Department before production begins. The personalization method used to produce approved samples must be the same method used in producing the documents or publications for mailing. Personalization by ink jet is not acceptable.

Product #3 Self-mailer style publication. Prints 1/1 in black ink only. No mailing envelope will be required for the self-mailer style product type.

The components of this product are as follows:

The variable print for this product will print on the outside ply that will be exposed when folded for mailing. The name, mailing address and IMB will be the only recipient-specific information on this product type.

A single sheet or ply printed 1/1 with black ink on white 8 ½” x 11” 20-pound paper (or equivalent) is the minimum size for Product #3. Pricing will be requested for additional sheets/plies to accommodate publications that require additional sheets in option #7 of this ITB.

The layout of the publication will determine where the recipient’s name, mailing address and IMB print on the publication.

If additional sheets are added to this product, the sheet size may increase to a sheet 11” x 17” in size. Multiple sheets may be nested together to create even larger publications. Pricing will be determined by the number of 8 ½” x 11” signatures in the publication using option #7 pricing.

Personalization: The Contractor must presort all documents or publications to maximize all available postage discounts in accordance with all USPS standards and regulations.

Folding: This publication is tri-folded in letter-fold style (two horizontal folds). The folds extend from the left to the right of the publication. These folds reduce the folded publication down to an 8 ½” by 3 2/3” size mail piece.

Tabs: Publications should be tabbed or glued according to current USPS standards and regulations. The folds should be at the bottom of the mail piece and the edge of the mail piece that will first enter the mail processing equipment.

Options for Products #1 and #2

Pricing will be requested for the following options.

1. Changing the paper weight used on either Product #1 or Product #2 from 20-pound paper to 24-pound paper.

2. Add a #9 courtesy reply envelope for either Product #1 or Product #2 that is personalized with a return mailing address and an IMB.

3. Add a second color to any ply on either Product #1 or Product #2.

4. Add an additional ply to either Product #1 or Product #2 that is static print only.

5. Add an additional ply to either Product #1 or Product #2 that includes recipient variable print.

6. Add a single horizontal laser micro-perforation to any one ply of a document or publication in Product #1 or Product #2.

Option #1 – Paper weight Change the paper weight on either Product #1 or Product #2 from 20-pound paper to 24-pound paper.

Option #2 – Courtesy Reply Envelope Add a courtesy reply envelope to either Product #1 or Product #2.

The courtesy reply envelope is a standard size #9 envelope, 3 7/8” tall by 8 7/8” wide, commercial style envelope with no window. Envelope is constructed with 24-pound white-wove paper. Envelope is printed 1/0 with black ink. All return envelopes ordered under this option are to be constructed using a diagonal-seam style construction with a commercial-style flap. No inside tint is required on courtesy reply envelopes.

Option #3 – Add a second color ink to any ply to either Product #1 or Product #2

Option #4 – Add an additional ply to either Product #1 or Product #2 that is static print only. A single sheet or ply printed 1/1 with black ink on white 8 ½” x 11” size 20-pound paper.

Option #5 – Add an additional ply to either Product #1 or Product #2 that includes recipient variable print on the ply. A single sheet or ply printed 1/1 with black ink on white 8 ½” x 11” size 20-pound paper

Option #6 – Add a single horizontal laser micro-perforation to any one ply of a document or publication in Product #1 or Product #2.

Delivery First-Class mail packages will be delivered to the Contractor’s nearest USPS mail facility. All Marketing Mail packages with Florida mailing addresses are to be delivered to the Bulk Mail Entry Unit (BMEU) at the Bulk Mail Center (BMC) located in Jacksonville, Florida. Marketing Mail packages with mailing addresses outside of Florida may be delivered directly to the Contractor’s nearest USPS mail facility.

Delivery for either class of mail is to be within twenty-one (21) calendar days from the time the Contractor receives final approval on the last round of proofs required for the product type being requested on the purchase order. Final approval includes all rounds of variable-print proofing required by the product type requested.

The Department reviews all variable print required by the product type requested for accuracy from the electronic file that was sent via FTP to the Contractor for personalization. There will be two (2) rounds of proofs for Products #1 and #3 printed from this contract. Product #2 will require three (3) rounds of proofs because of the additional client-specific data printed.

The cost to transport mail packages to Jacksonville for the additional mailing discounts is the responsibility of the Contractor. For that reason, separate pricing for First-Class and Marketing Mail is being requested in the bid solicitation.

Bidders shall indicate on the attached Cost Information Sheets the number of days they are prepared to guarantee delivery of the mail packages given the style/construction, quantity, and method of mailing. The Department reserves the right to reject any bid indicating a longer turnaround time than desired and only consider bids that meet or exceed the desired delivery turnaround time.

Production Schedule Each Purchase Order issued under this Contract will have a production schedule developed as a companion to the Purchase Order. This schedule includes all the production steps necessary to ensure the timely delivery of the documents or publications being ordered. Before the schedule is finalized, it will be sent to the Contractor for review, comments and approval. The schedule is not final until it is agreed upon by both the Contractor and the Department.

Below is an extract from a production schedule for the RT-20 Tax Rate Notices. In a complete production schedule, a specific date will be assigned to each task. The production schedule includes a date where the Department and Contractor begin weekly conference calls. This date usually coincides with the beginning of the production phase of the product(s) ordered. The Department has found this to be an effective way to make sure both the Department and Contractor complete all tasks on the dates specified and agreed upon at the beginning of the project.

RT-20 Production Schedule for December 2022 Mailing

Target Date

Responsible Person(s) Activity

DOR DOR contract manager sends Contractor the proposed production schedule for the RT-20 Tax Rate Notices to be printed and mailed.

DOR DOR contract manager distributes final production schedule to all DOR stakeholders.

DOR DOR contract manager provides Contractor with estimated form count so they know how much paper and the quantity of envelopes to order.

Contractor Contractor approves and agrees to “proposed” production schedule or requests date changes.

DOR Weekly conference calls with Contractor during production phase of job.

DOR DOR provides camera ready copy of form (PDF file) to Contractor.

DOR DOR provides envelope instructions to Contractor for mailing envelopes.

Contractor Contractor provides electronic proof of mailing envelope.

Contractor Contractor provides electronic proof of form template without any variable data DOR DOR approves mailing envelope proof DOR DOR approves form template proof Contractor Contractor gets approval from USPS for envelope copy.

DOR DOR sends sample file to Contractor for first round of form testing with variable data on form.

Contractor Contractor provides PDF files of electronic proofs for RT-20 Notices. These samples are created from the sample file.

DOR DOR provides artwork to Contractor for any required insert(s) Contractor Contractor provides electronic proof for insert(s) DOR DOR sends Contractor postage check for deposit into Mail Permit and funds to establish new permit.

DOR DOR runs reemployment tax rates for RT-20 tax rate notices.

DOR File for RT-20 Notices is FTP’d to Contractor Contractor Contractor receives electronic file for RT-20 Notices Contractor Contractor begins work on the file for RT-20 Notices.

Contractor Contractor sends DOR sample forms (electronically) providing 10 samples from each of the seven (7) rate types.

DOR DOR approves sample press proofs from Live print file Contractor Contractor sends 10 assembled mail packages Contractor Contractor drops all RT-20 Mail Packages at postal Facility for mailing. All

Notices mail at First-Class Rates.

Artwork Sample products that may be produced under this bid will be supplied by the Department to the Contractor at the beginning of the contract. Artwork and copy for all products, except envelopes, will be supplied by the Department. Currently, the Department is using Adobe InDesign on a PC platform to create files for the products to be printed. All InDesign files will be converted to PDF files for electronic delivery to the Contractor by email.

Screen and printer fonts will be provided on all electronic files.

Each form or publication has a revision date specified on the document. The Department will supply the most current version of each product to be printed and mailed under this contract. However, new legislation may create the need for new products that do not currently exist. Any new products would comply with the specifications outlined in this ITB.

Mock-up artwork for each envelope will be supplied to the Contractor by the Department. The Contractor must typeset the text for the envelope, the postal indicia and Facing Identification Mark (FIM) for the envelopes.

Electronic PDF file proofs of the envelopes will be required for review and approval prior to production of stock.

It is the Contractor’s responsibility to ensure that the envelope (postal indicia, FIM, IMB, return address, and mailing address) comply with all USPS postal standards and regulations. If the order is for Marketing Mail, the approval of the Jacksonville BMEU will also be required for the envelope.

Proofs Delivery of Proofs for documents or publications There will be two (2) rounds of proofs for Products #1 and #3 printed from this contract. Product #2 will require three (3) rounds of proofs. Product #2 has additional client-specific data that will first be reviewed using test data the Department will FTP to the Contractor. Some orders may require paper proofs, some products will only require electronic proofs, and other products may require both paper and electronic proofs. A production schedule will accompany each order resulting from this contract. The number and type of proofs needed for each product will be listed in the Production Schedule.

The purpose of the first round of proofs for all three products is to review the form or publication template without any variable information printed on the publication. These proofs can be submitted electronically as PDF files directly to the Contract Manager.

For Products #1 and #3, after the first round of proofing when the template is approved, the second round of proofs will include samples with client-specific mailing information printed on the publication template. The Department will review the second round of proofs to ensure data integrity and proper placement of variable information for mailing. However, at this stage, all proofs must be locked with a password which will be sent to the Contract Manager in a separate email.

All proofs must be submitted to the Contract Manager for review within three (3) days after the receipt of order and artwork by the Contractor. The proofs will be reviewed by Department staff for correctness, alignment, data integrity, and compliance with USPS standards. The Department will complete the review within two (2) business days of receipt of the proofs.

If paper proofs are required, the Contractor shall send paper proofs using an overnight courier with tracking capability. Paper proofs shall be submitted in triplicate as that will enable the Department to expedite the approval process. If electronic PDF files are acceptable as proofs, the electronic proofs can be emailed to the Contract Manager within the same three-day timeframe.

All proofs submitted to the Department for review must be marked to clearly indicate all perforations, cut marks, screens, folding marks, and any other production requirements when applicable. Any deviations in printing from approved proofs will not be accepted.

Although rare, the possibility exists that the Department may require the Contractor to produce proofs for products that will not be printed and/or mailed. The reasons could be that “proposed funding” for a project was cut or there was a sudden law change making the product in the project obsolete. If this situation occurs, the Department will compensate the Contractor for the time and materials expended by the Contractor for the effort pursuant to the established contract pricing.

Approval of Proofs without Variable Data for documents or publications Proofs will be reviewed by Department staff for correctness and alignment. The Contract Manager will coordinate the review of all proofs by the Department. Any minor changes in copy requiring revised proofs, during the term of this contract, will be at the expense of the Contractor. If there are major changes required to a product, the Department will provide new PDF files of artwork. If the changes are at the request of the Department, the project timeline will be modified to accommodate any delay caused by the Department’s changes.

All proofs for the form template without variable print, will be reviewed by the Department within three (3) working or business days of receipt. Proofs which have not been reviewed and communicated to the Contractor within three business days, shall result in the delivery date being adjusted accordingly by the number of days late in excess of three (3) business days. The delivery date will not be adjusted if additional proofs are required because of Contractor error or proofs submitted to the Department which do not meet bid specifications. If the Department requires additional proofs due to a Contractor error, the Contractor shall have two (2) working or business days to produce and deliver revised proofs to the Department.

The Contractor will be required to obtain USPS approval on all mailing envelopes prior to starting production of the envelopes. A copy of the USPS approval should be forwarded via email to the Department’s Contract Manager. Because Marketing Mail will be processed by both the Contractor’s local postal facility as well as the BMEU/BMC in Jacksonville, the Contractor must obtain approval from both their local USPS facility and Jacksonville BMC facility for mail packages mailing at Marketing Mail Postal Rates. For First-Class mail, the Contractor need only obtain postal approval from the local USPS postal facility where the Contractor will be entering the mail. The postal review should cover all elements of product design, stock, as well as the postal indicia on the mail piece.

Delivery of Electronic Proofs with Variable Data for documents or publications After the proofs (without any variable data) have been approved and the product stock has been printed, the Department will require electronic samples of the products that contain the taxpayers’/employers’/clients’ names, addresses, and other specific information that is to be personalized on each publication. Depending on the complexity of the product, the Department may send a “sample file” to assist the Contractor with accurate data placement and accurate file extraction.

The Department will specify the required product sampling with each document or publication listed on the production schedule. The proofing population will be specified with each product. This will allow the Department to confirm the quality of the personalization and the integrity of the data prior to mailing.

The timing of the delivery of personalized proofs will depend on when the Contractor receives both the sample file and the live production file. The respective dates will be outlined in the production schedule which the Contractor has an opportunity to review and approve prior to beginning each mail product.

Delivery of the scanned samples (from both the test file and production file) should be emailed to the Contract Manager in an encrypted locked file with the password sent in a separate email. The scanned samples should arrive before the Contractor begins the personalization stage of production.

Envelope proofs The Department requires a proof of the outgoing envelope prior to production of the envelope stock. The copy for the outgoing envelope will need to be approved by the USPS postal facility where the mail will enter the mail stream prior to envelope production. A copy of the USPS approval must be emailed to the Department’s Contract Manager prior to the Contractor receiving final approval from the Department to begin production.

If a self-mailer style document or publication is to be produced, the tabbing and folding method to be used needs to be approved by both the local USPS postal facility and the BMC in Jacksonville, Florida prior to beginning production.

If courtesy reply envelopes will be required for a mail product, the Department also requires a proof of the envelope prior to production. Proofs must include the Full-Service Intelligent Mail Barcode (IMB) and/or other printing specific to the envelope. The Department also requires that proofs indicate the precise size and position of any die-cut window that may be required. Proofs may be sent electronically if they print true-to-size on an 11” x 17” sheet of paper.

Delivery Expense for Proofs The expense of delivering any required paper proofs to the Department will be the responsibility of the Contractor. To allow the Department to successfully monitor contract performance for compliance with the terms, conditions, and specifications, it is necessary that any paper proofs be sent directly to the Contract Manager at the overnight delivery address provided in this ITB. Electronic proofs may be emailed to the Contract Manager.

Printing, inks & personalization Variable data on the personalized plies of the document or publication shall be on the front of the document and may also be required on the back of the document. Personalization shall be done by laser or impact printing with the recipient’s names, addresses and account information derived from computer data file(s) provided via FTP by the Department.

Addressing requirements are further explained in the Postal Requirements Section (below) of this ITB. Those products produced with a detachable coupon that will be returned to the Department for processing, shall not exceed a 1% misread rate when processed through the Department equipment.

The ink or toner used for the printing and personalization of any document to be returned to the Department for processing cannot be printed with MICR toner or ink. The ink or toner may contain traces of ferrous oxide.

Samples may be required for approval by the Department before production begins. The personalization method used to produce approved samples must be the same method used to produce documents or publications for mailing. Personalization by ink jet is not acceptable.

Optical Character Reader (OCR) Line and Barcoding Products produced from this contract may or may not have any OCR lines or Barcoding. Product #3, the self-mailer style publication, will never have an OCR line. For either Product #1 or Product #2 that needs to print with an OCR line, the OCR line is to be positioned at three lines (based on 6 lines per inch) from the bottom of the front of the detachable coupon. The end of the OCR line must be a minimum of five-character spaces (1/2”) and a maximum of six-character spaces from the right edge of the paper. The OCR line must be in OCR font “A”, size 12 point, set at ten characters per inch. Readability of the OCR line shall not exceed a 1% misread rate.

For documents or publications having a barcode located on the front or back of the document, the barcode will be unique and a direct translation of a portion of the OCR line.

Barcoding, when required, shall comply with the following specifications:

Format: Interleave 2 of 5 containing up to 32 numeric characters and must be an even number of digits Code height: Minimum of 0.375 inches Narrow Element Width: Minimum is 0.0125 inches Wide Element Width: Minimum is 0.0666 inches; Maximum is .200 wide to narrow ratio: 2:1 if minimum narrow element width is greater than 0.020 inches Maximum wide to narrow ratio: 2.2:1 inches if the minimum narrow element is less than or equal to

0.020 inches Barcode location for the top edge: The minimum distance from the top edge of the document to the top of the barcode is 0.25 inches A blank area of 0.25 inches should precede the start character of the barcode as a quiet zone The right edge of the barcode should be at least 0.25 inches from the start of the preprinted address information. No part of the barcode shall overlay the preprinted address information.

When tested, 95% of all barcodes must receive an “A” grade as measured in accordance with ANSI Standard ANSIX3, 182-1990. This standard assigns grades based on two sets of criteria: dimensional and reflectance.

Dimensional criteria are based upon actual linear measurements. Reflectance criteria are measures of print consistency. Readability of the barcode line shall not exceed a 1% misread rate.

Data Files The Department shall supply the Contractor with all data needed for personalization of each document or publication to be produced. Quantities of personalized mail packages are estimates. The number of accounts contained on the electronic files that will be sent via FTP to the Contractor will determine the exact quantity of mail packages to be mailed for each order placed with the Contractor. Data files will be sent to the Contractor’s secure mailbox via FTP.

Programming Costs The cost for the programming necessary to produce specified products shall be included in the cost for the products. The Contractor shall be required to perform all programming necessary to produce products as specified in this ITB.

In the event that unplanned programming is required, other than the programming specified in this ITB, the Department is requesting pricing for programming services that may be needed for the successful completion of any mailing project. If for some unexpected reason, additional programming is required, the cost shall be in terms of an hourly rate. The hourly rate for programming services shall be indicated on Attachment 1 – Cost Information Sheet.

Postal Requirements The Department is requesting pricing for products to mail at both USPS Marketing Mail and First-Class Mail postal rates to provide maximum flexibility throughout the duration of the contract. Every outgoing mail package produced and mailed as a result of this ITB must include a Full-Service Intelligent Mail Barcode that includes the delivery-point element. The Department processes all the addresses on our databases through NCOA updates on a monthly basis to ensure optimum address accuracy and achieve maximum postal discounts. Verification of this process will be sent to the Contractor for compliance with their local USPS postal facility.

The first postal rate method, hereinafter referred to as Option A, is to mail the products using USPS Marketing Mail postal rates. Mailing products using Marketing Mail postal rates will include the cost of trucking the products with Florida destinations from the Contractor’s facility to the Bulk Mail Entry Unit (BMEU) at the Bulk Mail Center (BMC) located in Jacksonville, Florida.

The second postal rate method, hereinafter referred to as Option B, is to mail the products using USPS First- Class postal rates. The mailing of products via First-Class Mail will require the Contractor to transport each product from the Contractor’s location to the Contractor’s nearest postal facility. The specific requirements for both methods are further described in the following sub-sections.

Option A – USPS Marketing Mail (Standard Postal Rates) For products mailed using the Marketing Mail option, the Department will open a Marketing Mail Permit at the postal facility nearest to the Contractor. A postage warrant to fund the mailing permit account and pay the annual fee will be supplied to the Contractor for presentation to their local USPS postal facility.

The Contractor will act on the Department’s behalf with their local USPS Facility. Products going to domestic locations that mail at Marketing Mail postal rates shall be in pre-sort ZIP code order taking advantage of all available postal rate discounts (Carrier Route, saturation, and walk-sequence order, if possible.) Out-of-country (foreign) locations will mail at the rates required by the USPS for “Air Mail” First-Class service to each delivery location. Mail destinations outside of Florida and Foreign mail packages shall be dropped at the Contractor’s nearest postal facility, and do not need to be shipped to the BMEU at the BMC currently located in Jacksonville, Florida.

Should the Department elect not to mail to out-of-country (foreign) locations, the data file provided to the Contractor by the Department will either not contain the out-of-country (foreign) locations or we may ask the Contractor to suppress the foreign records on the data file after they receive the file and not print those accounts.

The Contractor will be responsible for maximizing the pre-sort and entry discounts by updating the data file through CASS supported software and sorting by carrier route or walk-sequence order.

USPS postal statements (USPS Form 3602) must accompany every invoice presented to the Contract Manager for payment of products mailed at Marketing Mail postal rates. A receipt must be presented to the Contract Manager to support each product that appears on the invoice. Any products not supported by valid USPS postal statements will not be processed for payment.

Option B – First-Class Mail Rates For products mailed using the First-Class Mail Option, the Department will open a First-Class Permit at the postal facility nearest to the Contractor’s physical location. A postage warrant to fund the permit and pay the annual fee will be supplied to the Contractor for presentation to their local USPS postal facility. The Contractor will act on the Department’s behalf with the USPS. The Contractor will be responsible for maximizing the pre-sort and entry discounts by updating the data file through CASS supported software. The Contractor will be responsible for shipping and delivering all products to the USPS postal facility nearest to the Contractor’s facility.

The Contractor is to maximize all available ZIP code sorts to achieve the lowest postage cost possible.

USPS postal statements (USPS Postage Statement Wizard and Reconciliation Report, USPS Form 3600-FCM, and/or USPS Form 3606 D) must accompany every invoice presented to the Contract Manager for payment of products mailed at First-Class postal rates. A receipt must be presented to the Contract Manager to support each product that appears on the invoice. Any products not supported by valid USPS postal statements will not be processed for payment.

Addressing Requirements Electronic files provided by the Department for addressing products shall be pre-sorted by the Contractor to maximize all available postage discounts in accordance with postal regulations. The Contractor shall apply delivery-point Full Service Intelligent Mail Barcodes (IMB) to each domestic mail piece.

The Contractor shall make sure the address area on each product is within the OCR read area as established by the USPS. The Contractor is responsible for ensuring that the address is wholly within the OCR read area.

The Contractor must ensure that font size and type used for addressing is compliant with the standards and guidelines established by the USPS. Addressing may be accomplished by laser printing, affixing a label, or any other means that complies with the standards established by the USPS.

Postage Costs All reasonable postage expenses described in this ITB required for the mailing of products will be the responsibility of the Department. A state warrant for postage and permit expenses will be submitted to the Contractor for presentation to the USPS. The Contractor shall provide the Contract Manager with an electronic receipt for all deposits into the Department’s account within three (3) days of deposit. The Contractor shall supply the Department with the address of the postal facility to be used for mailings. Copies of the original Postal statements for all postage expenses must be provided to the Department with all invoices.

Foreign mail cannot mail at Marketing Mail rates. Foreign mail must be sent at “First-Class” airmail rates. This ensures expeditious handling and dispatch using the fastest mode of transportation available. Additional postage, depending on the mail piece destination and weight, will determine the cost. Contractor will be required to ensure that all required postage is affixed to each foreign piece of mail and all foreign mail is delivered to the nearest USPS postal facility.

If the Contractor cannot process the foreign mail under the Department’s First-Class mail permit, postage must be pre-paid by the Contractor and billed to the Department. The Contractor must supply adequate documentation for any prepaid postage to the Department for a post-audit review of the mailing. If the Contractor prepays the foreign postage, a summary should be included with their invoice that indicates how many mail pieces were mailed to each foreign location and the associated postage cost for each foreign destination.

Shipping Expenses The Contractor shall be responsible for any shipping costs incurred to transport products to the postal facility for mailing, regardless of the location of the facility. Transportation costs associated with either trucking mail packages to the BMEU at the BMC located in Jacksonville, Florida (Option A), or to the Contractor’s nearest USPS postal facility (Option B), should be included in the cost quoted for each form.

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