ITB 2525S005 Amendment 1.pdf

STATE OF ALASKA ITB NUMBER 2525S005

AMENDMENT NUMBER ONE (1)

AMENDMENT ISSUING OFFICE:

THIS IS NOT AN ORDER DATE AMENDMENT ISSUED: July 30, 2024

DUE DATE: August 20, 2024 at 2:00 PM. (Alaska Time)

This is a mandatory return Amendment. Your bid may be considered non-responsive if this signed amendment is not received [in addition to your bid] by the date and time bids are due.

Vendor Signature: _____________________________ Date: ___________

Printed Name: _____________________________

Offerors Name: _____________________________

The purpose of this Amendment #1 is to:

Corrected posting date on cover page to July 26, 2024 Correct the Table of Contents to include Sections 5. And 6.

Add Section 6. Attachments Attach Bid Submission Cover Sheet Attach Alaska Bidder Preference Certification form

Signature: _____________________________ Date: _______________

Name: Adam Tolles Title: Procurement Specialist

ITB TITLE: Liquid Magnesium Chloride

Department of Transportation & Public Facilities Statewide Contracting & Procurement

P.O. Box 112500 (3132 Channel Drive, Room 350)

Juneau, Alaska 99811-2500

07/30/2024

STATE OF ALASKA

INVITATION TO BID (ITB)

LIQUID MAGNESIUM CHLORIDE

ITB 2525S005

ISSUED July 26, 2024 The Department of Transportation and Public Facilities, Division of Program Management and Administration, is soliciting bids for Liquid Magnesium Chloride.

IMPORTANT NOTICE: If you received this solicitation from the State of Alaska’s “Online Public Notice” web site, you must register with the procurement officer listed below if you desire to receive notification of subsequent amendments to the solicitation.

BIDDER'S NOTICE: By signature on this form, the bidder certifies that they comply with the following:

(1) the bidder has a valid Alaska business license or will obtain one prior to award of any contract resulting from this ITB. If the bidder possesses a valid Alaska business license, the license number must be written below or one the following forms of evidence must be submitted with the bid:

• a canceled check for the business license fee;

• a copy of the business license application with a receipt date stamp from the State's business license office;

• a receipt from the State’s business license office for the license fee;

• a copy of the bidder’s valid business license;

• a sworn notarized affidavit that the bidder has applied and paid for a business license;

(2) the price(s) submitted was arrived at independently and without collusion, under penalty of perjury, and that the bidder is complying with:

• the laws of the State of Alaska;

• the applicable portion of the Federal Civil Rights Act of 1964;

• the Equal Employment Opportunity Act and the regulations issued thereunder by the state and federal government;

• the Americans with Disabilities Act of 1990 and the regulations issued thereunder by the state and federal government;

• the bid will remain open and valid for at least 90 days;

• all terms and conditions set out in this Invitation to Bid (ITB).

If a bidder does not hold an Alaska Business License (1) at the time designated in the ITB for opening the state will disallow the Alaska Bidder Preference. Bids must also be submitted under the name as appearing on the bidder’s current Alaska business license in order to receive the Alaska Bidder Preference. If a bidder fails to comply with (2) of this paragraph, the state may reject the bid, terminate the contract, or consider the contractor in default.

DEPARTMENT OF TRANSPORATION AND

PUBLIC FACILITIES

DIVISION OF PROGRAM MANAGEMENT AND

ADMINISTRATION

COMPANY SUBMITTING BID

AUTHORIZED SIGNATURE

PROCUREMENT OFFICER:

ADAM TOLLES PRINTED NAME

PHONE: (907) 465-8223

EMAIL: adam.tolles@alaska.gov DATE

STATE OF ALASKA – INVITATION TO BID ITB 2525S005

LIQUID MAGNESIUM CHLORIDE

2 Revised 3/7/2024

TABLE OF CONTENTS

SECTION 1. INTRODUCTION & INSTRUCTIONS

SEC. 1.01 PURPOSE OF THE ITB

SEC. 1.02 BUDGET

SEC. 1.03 DEADLINE FOR RECEIPT OF BIDS

SEC. 1.04 PRIOR EXPERIENCE

SEC. 1.05 REQUIRED REVIEW

SEC. 1.06 QUESTIONS PRIOR TO DEADLINE FOR RECEIPT OF BIDS

SEC. 1.07 RETURN INSTRUCTIONS

SEC. 1.08 ASSISTANCE TO BIDDERS WITH A DISABILITY

SEC. 1.09 AMENDMENTS TO BIDS

SEC. 1.10 AMENDMENTS TO THE ITB

SEC. 1.11 ITB SCHEDULE

SEC. 1.12 ALTERNATE BIDS

SEC. 1.13 SUPPORTING INFORMATION

SEC. 1.14 FIRM, UNQUALIFIED, AND UNCONDITIONAL OFFER

SECTION 2. SCOPE OF WORK AND CONTRACT INFORMATION

SEC. 2.01 SCOPE OF WORK

SEC. 2.02 CONTRACT TERM

SEC. 2.03 PAYMENT FOR STATE PURCHASES

SEC. 2.04 CONTRACT ADMINISTRATION

SEC. 2.05 CONTRACT PRICE ADJUSTMENTS

SEC. 2.06 CONTRACT PERFORMANCE LOCATION

SEC. 2.07 THIRD-PARTY FINANCING AGREEMENTS NOT ALLOWED

SEC. 2.08 SUBCONTRACTORS

SEC. 2.09 JOINT VENTURES

SEC. 2.10 F.O.B. POINT

SEC. 2.11 INSPECTION & MODIFICATION - REIMBURSEMENT FOR UNACCEPTABLE DELIVERABLES

SEC. 2.12 EQUIPMENT INSPECTION

SEC. 2.13 DISCONTINUED ITEMS

SEC. 2.14 SHIPPING DAMAGE

SEC. 2.15 CONTRACT CHANGES – UNANTICIPATED AMENDMENTS

SEC. 2.16 CONTINUING OBLIGATION OF CONTRACTOR

SEC. 2.17 BILLING INSTRUCTIONS

SEC. 2.18 ESTIMATED QUANTITIES

SEC. 2.19 WARRANTY

SEC. 2.20 INDEMNIFICATION

SEC. 2.21 INSURANCE

SECTION 3. BID FORMAT AND CONTENT

SEC. 3.01 BID FORMS

SEC. 3.02 PRICES

SECTION 4. EVALUATION AND CONTRACTOR SELECTION

SEC. 4.01 EVALUATION OF BIDS

SEC. 4.02 APPLICATION OF PREFERENCES

SEC. 4.03 ALASKA BIDDER PREFERENCE

SEC. 4.04 ALASKA VETERAN PREFERENCE

3 Revised 3/7/2024

SEC. 4.05 USE OF LOCAL FOREST PRODUCTS

SEC. 4.06 LOCAL AGRICULTURAL AND FISHERIES PRODUCT PREFERENCE

SEC. 4.07 ALASKA PRODUCT PREFERENCE

SEC. 4.08 EMPLOYMENT PROGRAM PREFERENCE

SEC. 4.09 ALASKANS WITH DISABILITIES PREFERENCE

SEC. 4.10 PREFERENCE QUALIFICATION LETTER

SEC. 4.11 EXTENSION OF PRICES

SEC. 4.12 METHOD OF AWARD

SEC. 4.13 NOTICE OF INTENT TO AWARD

SECTION 5. GENERAL PROCESS AND LEGAL INFORMATION

SEC. 5.01 ALASKA BUSINESS LICENSE AND OTHER REQUIRED LICENSES

SEC. 5.02 AUTHORITY

SEC. 5.03 COMPLIANCE

SEC. 5.04 SUITABLE MATERIALS, ETC

SEC. 5.05 SPECIFICATIONS

SEC. 5.06 ITEM UPGRADES

SEC. 5.07 CONTRACTOR SITE INSPECTION

SEC. 5.08 ORDER DOCUMENTS

SEC. 5.09 HUMAN TRAFFICKING

SEC. 5.10 RIGHT OF REJECTION

SEC. 5.11 STATE NOT RESPONSIBLE FOR PREPARATION COSTS

SEC. 5.12 DISCLOSURE OF BID CONTENTS

SEC. 5.13 ASSIGNMENTS

SEC. 5.14 FORCE MAJEURE (IMPOSSIBILITY TO PERFORM)

SEC. 5.15 DEFAULT

SEC. 5.16 DISPUTES

SEC. 5.17 SEVERABILITY

SEC. 5.18 CONTRACT CANCELLATION

SEC. 5.19 GOVERNING LAW; FORUM SELECTION

SEC. 5.20 QUALIFIED BIDDERS

SEC. 5.21 FEDERALLY IMPOSED TARIFFS

SEC. 5.22 PROTEST

SECTION 6. ATTACHMENTS

4 Revised 3/7/2024

SECTION 1. INTRODUCTION & INSTRUCTIONS

SEC. 1.01 PURPOSE OF THE ITB

The Department of Transportation and Public Facilities, Division of Program Management and Administration, is soliciting bids for Liquid Magnesium Chloride in firm quantities (lot 1) and as needed (lot2) to be delivered to various locations (see bid schedule). This solicitation is intended to result in a one (1) year contract with four (4) annual renewal options.

SEC. 1.02 BUDGET

Payment for the contract is subject to funds already appropriated and identified.

SEC. 1.03 DEADLINE FOR RECEIPT OF BIDS

Bids must be received no later than 2:00 pm Alaska Time on August 20, 2024, at which time they will be publicly opened. Late bids or amendments will be considered non-responsive and will not be opened or accepted for evaluation.

SEC. 1.04 PRIOR EXPERIENCE

No specific minimums have been set for this ITB.

SEC. 1.05 REQUIRED REVIEW

Bidders shall carefully review this ITB for defects and questionable or objectionable material. Comments concerning defects and questionable or objectionable material in the ITB should be made in writing and received by the procurement officer at least ten days before the deadline for receipt of bids. This will allow time for an amendment to be issued if one is required. It will also help prevent the opening of a defective bid, upon which award cannot be made, and the resultant exposure of bidders' prices.

SEC. 1.06 QUESTIONS PRIOR TO DEADLINE FOR RECEIPT OF BIDS

All questions must be in writing and directed to the procurement officer. The interested party must confirm telephone conversations in writing. Two types of questions generally arise. One may be answered by directing the questioner to a specific section of the ITB. These questions may be answered over the telephone. Other questions may be more complex and may require a written amendment to the ITB. The procurement officer will make that decision.

SEC. 1.07 RETURN INSTRUCTIONS

If you are submitting a response through IRIS Vendor Self-Service (VSS), you may ignore the following return instructions.

Bidders may submit bids electronically or in hard copy. If submitting via hard copy, the bidder must submit one hard copy of their entire bid, to the procurement officer in a sealed package.

The sealed bid package must be addressed as follows:

5 Revised 3/7/2024

Department of Transportation and Public Facilities Division of Program Management and Administration

Attention: Adam Tolles Invitation to Bid (ITB) Number: 2525S005

ITB Title: Liquid Magnesium Chloride

3132 CHANNEL DRIVE, SUITE 350

JUNEAU, AK 99801

If using U.S. mail, please use the following address:

Department of Transportation and Public Facilities Division of Program Management and Administration

Attention: Adam Tolles Invitation to Bid (ITB) Number: 2525S005

ITB Title: Liquid Magnesium Chloride

P.O. BOX 112500

JUNEAU, AK 99811-2500

If using a delivery service, please use the following address:

Department of Transportation and Public Facilities Division of Program Management and Administration

Attention: Adam Tolles Invitation to Bid (ITB) Number: 2525S005

ITB Title: Liquid Magnesium Chloride

P.O. BOX 112500

JUNEAU, AK 99811-2500

If submitting your bid electronically, the entire bid must be emailed to dotstatewideprocurement@alaska.gov and must contain the ITB number in the subject line of the email. The maximum size of a single email (including all text and attachments) that can be received by the state is 20mb (megabytes). If the email containing the bid exceeds this size, the bid must be sent in multiple emails that are each less than 20 megabytes and each email must comply with the requirements described above.

Please note that email transmission is not instantaneous. Like sending a hard copy bid, if you are emailing your bid, the state recommends sending it enough ahead of time to ensure the email is delivered by the deadline for receipt of bids.

It is the bidder’s responsibility to contact the issuing agency at 907-465-8223 to confirm that the entire bid has been received. The state is not responsible for unreadable, corrupt, or missing attachments.

SEC. 1.08 ASSISTANCE TO BIDDERS WITH A DISABILITY

Bidders with a disability may receive accommodation regarding the means of communicating this ITB or participating in the procurement process. For more information, contact the procurement officer no later than ten days prior to the deadline for receipt of bids.

mailto:dotstatewideprocurement@alaska.gov

6 Revised 3/7/2024

SEC. 1.09 AMENDMENTS TO BIDS

Amendments to or withdrawals of bids will only be allowed if acceptable requests are received prior to the deadline that is set for receipt of bids, in accordance with 2 AAC 12.140. No amendments or withdrawals will be accepted after the deadline unless the delay is due to an error of the contracting agency, in accordance with 2 AAC 12.160.

SEC. 1.10 AMENDMENTS TO THE ITB

If an amendment is issued before the deadline for receipt of bids, the amendment will be posted on the State of Alaska Online Public Notice (OPN) website. The link to the posting of the amendment will be provided to all who were notified of the ITB and to those who have registered with the procurement officer after receiving the ITB from the

OPN.

SEC. 1.11 ITB SCHEDULE

The ITB schedule below represents the State of Alaska’s best estimate of the schedule that will be followed. If a component of this schedule, such as the deadline for receipt of bids, is delayed, the rest of the schedule may be shifted accordingly. All times are Alaska Standard Time (AST).

ACTIVITY TIME DATE

Issue Date / ITB Released 7/30/2024 Deadline for Receipt of Bids / Bid Due Date 2:00 pm 8/20/2024 Bid Evaluations Complete 8/21/2024 Notice of Intent to Award 8/21/2024 Contract Issued 9/02/2024

This ITB does not, by itself, obligate the state. The state's obligation will commence when the contract is approved by the Commissioner of the Department of Transportation and Public Facilities, or the Commissioner's designee.

Upon written notice to the contractor, the state may set a different starting date for the contract. The state will not be responsible for any work done by the contractor, even work done in good faith, if it occurs prior to the contract start date set by the state.

SEC. 1.12 ALTERNATE BIDS

Bidders may only submit one bid for evaluation. In accordance with 2 AAC 12.830 alternate bids (bids that offer something different than what is asked for) will be rejected.

SEC. 1.13 SUPPORTING INFORMATION

Provided a bid meets the requirements for a definite, firm, unqualified, and unconditional offer, the state reserves the right to request supplemental information from the bidder, after the bids have been opened, to ensure that the products or services offered completely meet the ITB requirements. The requirement for such supplemental information will be at the reasonable discretion of the state and may include the requirement that a bidder will provide a sample product(s) so that the state can make a first-hand examination and determination.

A bidder's failure to provide this supplemental information or the product sample(s), within the time set by the state, may cause the state to consider the offer non-responsive and reject the bid.

7 Revised 3/7/2024

SEC. 1.14 FIRM, UNQUALIFIED, AND UNCONDITIONAL OFFER

To be responsive a bid must constitute a definite, firm, unqualified and unconditional offer to meet all the material terms of the ITB. Material terms are those that could affect the price, quantity, quality, or delivery. Also included as material terms are those which are clearly identified in the ITB, and which must be complied with at risk of bid rejection for non-responsiveness.

SECTION 2. SCOPE OF WORK AND CONTRACT

INFORMATION

SEC. 2.01 SCOPE OF WORK

The Department of Transportation and Public Facilities, Division of Program Management and Administration, is soliciting bids for Liquid Magnesium Chloride in firm quantities (Lot 1) and as needed (Lot2) to be delivered to various locations (see bid schedule).

SPECIFICATIONS

REFERENCE: Pacific Northwest Snow Fighters (PNS) website:

http://pnsassociation.org/wp-content/uploads/PNSSPECS.pdf

Products offered for consideration in this solicitation must meet the PNS specifications for Category 1. Products that exceed 10,000 milligrams per liter Biochemical Oxygen Demand (BOD)5 will not be accepted.

BOD5 measurement must be made on the brine product with the magnesium chloride concentration between 24 and 28 percent. BOD5 concentration shall be measured using Method 5210B, Standard Methods for the Examination of Water and Waste Water (most current edition), or equivalent approved method. The successful bidder may be required to provide a test result verifying that their product meets this specification.

A specific gravity chart with correlating weight percentage and freeze point information presented in 1% increments beginning with a 5% solution must be submitted with the bid. The chart must contain information up to, including, and exceeding, by 5% (or the solubility limits of your product) the submitted concentration.

TEST METHODS:

1. Percentage of Magnesium Chloride Content: PNS method; and

2. Percentage of Chloride content: PNS method.

ACCEPTANCE TEST: Within 15 calendar days of the award, the contractor may be required to submit samples of the items offered for inspection and evaluation. The State may conduct an acceptance test. If so, the test will use the PNS test methods to determine if the product offered meets the ITB specifications. The contractor will be allowed to observe the tests.

If the product fails to meet the ITB specifications the State will, at its option, reject the bid, cancel the contract, or, allow the contractor to repair the defective product. In no instance will the State pay any cost associated with the http://pnsassociation.org/wp-content/uploads/PNSSPECS.pdf

8 Revised 3/7/2024 remedy for the defective product. The State’s acceptance of tested product may not be interpreted as evidence that the product is in perfect working order.

TESTING: All material, at the discretion of the State is subject to inspection and analysis upon delivery.

Applicable test methods are found within the PNS website.

1) Two, one quart or, one liter samples of product for commercial laboratory testing may be taken either directly from the transfer hose during field delivery unloading operations or from the transfer hose at the completion of the transfer.

a) No precipitate or flocculation in liquid products shall be allowed. Product portraying these characteristics when delivered may be immediately rejected at the option of the State.

b) Any product that is rejected shall be removed and replaced by the Contractor with product that meets specifications at no additional cost to the State. Removal includes the removal of all product, if any, that was contaminated by the non-specification product. The State shall establish the amount of material contaminated that is to be replaced.

2) The Contractor will be notified of laboratory test results only if a problem is identified.

3) Test results remain as property of the State and will be held in confidence. Only the details of identified areas of concern will be released, and then only to the manufacturer or his authorized agent. Proprietary information (if clearly identified by the Contractor or manufacturer), and agreed to by the Procurement Officer will be held in strict confidence.

PERCENT CONCENTRATION OF ACTIVE INGREDIENT:

The finished deicing product (liquid magnesium chloride) must contain 30% Magnesium Chloride (plus or minus 1%) upon delivery.

SHIPPING VESSEL: Delivery of Magnesium Chloride to the State’s maintenance yards shall be made in approximately 5,000 gallon capacity intermodal bulk vessel (ISO). Containers of lesser capacity are not acceptable.

Increased capacity of the ISO may occur based on shipper’s requirements. If this occurs, bidders must identify the capacity of their offered ISO on the Bid Schedule, page 16. The State reserves the right to confirm the capacity of proposed ISO with the shipper.

DELIVERY REQUIREMENTS: The Department will store product in either State owned or upon request, contractor supplied tanks.

1. The DOT/PF storage tanks are fitted with a 3” Cam-Lock fitting. Pumps will be provided by DOT&PF.

2. The Contractor’s bulk storage facility/device must provide for a method of re-circulating the product.

The product must be re-circulated prior to loading into the transfer vehicle(s) used to deliver product.

3. With the 48 hours advance notice of delivery, the Contractor MUST also identify the voyage number and sailing schedule. DOT/PF shall make every effort to return the empty ISO on the next southbound sailing.

At a minimum, delivery is required no later than 30-days after the receipt of an order. By signature on the solicitation, the bidder agrees to meet these delivery requirements.

9 Revised 3/7/2024

The purchase of as-needed quantities is weather driven and is for the sole purpose of replenishing depleted stock on hand in order to complete the current winter season. The State may purchase as-needed quantities for any or all locations throughout the current contract term, but no later than February 28th each year.

PROOF OF DELIVERY (POD): For all bulk product deliveries, weight tickets are required and must be presented to the receiving on-site DOT/PF representative for signature at the time of delivery. Only computer generated weight tickets from State certified weigh scales will be accepted. For each delivery, the weight ticket must clearly identify the destination, the truck and driver, the gross weight, tare weight and net weight of each vehicle utilized in the delivery. Handwritten tickets will not be accepted. Double-draft weighing of vehicles is illegal per AS 45.75.050(d) and will not be accepted. Reference: http://www.dot.state.ak.us/mscve/ .

Weight tickets and POD must include the receiver’s signature and printed name. The contractor’s delivering agent is responsible for ensuring the printed name is legible. Shipments will be refused if POD or weight tickets are not presented at time of delivery.

LIQUIDATED DAMAGES FOR LATE DELIVERY: Late delivery will cause the State to suffer damages.

Actual damages will be difficult to assess; therefore, it is mutually agreed that the Contractor will pay the state damages at the rate of $100 dollars per occurrence for each calendar day beyond the delivery date called for on the Purchase Order (PO).

QUANTITIES: The quantities referenced in this ITB represent both the State’s firm quantity purchase (Lot 1) and estimated quantities for as-needed purchases (Lot 2) for year one (1) of the contract. The State guarantees no minimum or maximum purchase for Lot 2’s as-needed quantities for year one, or over the life of the contract.

The minimum order the State will place is one intermodal bulk vessel (ISO) (approx. 50,000 lbs. capacity). The State reserves the right to adjust all orders up, or down, based on shipment of full ISOs only, the capacity of the offered ISO and the weight ratio of the offered product per gallon.

ORDERS: After the initial contract term, firm quantity order amounts and locations will be provided to the contractor within 30 days after receipt of order. The F.O.B. point for all items purchased under this contract is the final destination. After evidence of product compliance is accepted by the State, orders will be placed by the regional procurement offices in the form of a Purchase Order issued through the State’s IRIS system:

http://doa.alaska.gov/dof/iris/index.html.

As-needed quantity order amounts and locations may be provided to the contractor at any time during the current contract term. Any as-needed orders will be placed no later than February 28th for the current contract term.

EVIDENCE OF PRODUCT COMPLIANCE: Bidders must provide clear and convincing evidence that the produce offered is in compliance with specifications set forth in the ITB. All documents must be clearly legible. Bidders must submit the following with their bid:

1. Material Safety Data Sheets;

2. Certification from an independent laboratory stating the offered product conforms to the specifications (dated within 180 days of bid opening); and

3. The manufacturer’s Certificate of Chemical Analysis (CCA) clearly identifying each Pacific Northwest Snow Fighters (PNS) requirement per the Specifications (page 14).

http://www.dot.state.ak.us/mscve/ http://doa.alaska.gov/dof/iris/index.html

10 Revised 3/7/2024

4. A specific gravity chart with correlating weight percentage and freeze point information presented in 1% increments beginning with a 5% solution. The chart must contain information up to, including, and exceeding, by 5% (or the solubility limits of your product) the submitted concentration.

REJECTION: Any product may be rejected if it fails to conform to these specifications. If the product fails to meet specifications the State will, at its option, cancel the contract, or allow the contractor to replace the defective product. In no instance will the State pay any cost associated with the remedy for the defective product. The return shipment of refused product will be solely at the Contractor's expense.

SEC. 2.02 CONTRACT TERM

The length of the contract will be from the date of award, approximately September 02, 2024, with four (4) optional one (1) year renewals, which are at the sole discretion of the State to exercise.

SEC. 2.03 PAYMENT FOR STATE PURCHASES

No payment will be made until the contract is approved by the Commissioner of the Department of Transportation and Public Facilities or the Commissioner's designee. Under no conditions will the state be liable for the payment of any interest charges associated with the cost of the contract. The state is not responsible for and will not pay local, state, or federal taxes. All costs associated with the contract must be stated in U.S. currency.

Payment for agreements under $500,000 for the undisputed purchase of goods or services provided to a state agency, will be made within 30 days of the receipt of a proper billing or the delivery of the goods or services to the location(s) specified in the agreement, whichever is later. A late payment is subject to 1.5% interest per month on the unpaid balance. Interest will not be paid if there is a dispute or if there is an agreement that establishes a lower interest rate or precludes the charging of interest.

Any single contract payments of $1 million or higher must be accepted by the contractor via Electronic Funds Transfer

(EFT).

SEC. 2.04 CONTRACT ADMINISTRATION

The administration of this contract is the responsibility of the procurement officer or person appointed by the Department of Transportation and Public Facilities, Division of Program Management and Administration.

SEC. 2.05 CONTRACT PRICE ADJUSTMENTS

A contract resulting from this ITB will include the following price adjustment clause:

Consumer Price Index (CPI): Contract prices will remain firm through August 2025.

The Contractor or State may request price adjustments, no sooner than 12 months from the Contract execution date, and no more than once per contract year. Contractors must submit a request to the State at least thirty (30) days prior to the end of the current term. All Requests must be in writing and must be received 30 days prior to the Contract renewal date.

a. If the Contractor or State fail to request a CPI price adjustment 30 days prior to the Contract renewal date, the adjustment will be effective 30 days after the State or Contractor receives their written request.

11 Revised 3/7/2024

b. Price adjustments will be made in accordance with the percentage change in the U.S. Department of Labor, Bureau of Labor and Statistics, Consumer Price Index (CPI-U) for All Urban Consumers, All Items, Urban Alaska.

c. The price adjustment rate will be determined by comparing the percentage difference between the current CPI in effect for the base year (260.372) and the annual for subsequent years. The percentage difference between those two CPI issues will be the price adjustment rate. No retroactive contract price adjustments will be allowed. All price adjustments must be approved by the Procurement Officer prior to the implementation of the adjusted pricing. Approval shall be in the form of a Contract Amendment issued by the Procurement Officer.

d. Approval for all price increases is dependent upon full compliance with the terms of the Contract including reporting requirements.

SEC. 2.06 CONTRACT PERFORMANCE LOCATION

By signature on their bid, the bidder certifies that all services provided under this contract by the contractor and all subcontractors shall be performed in the United States.

If the bidder cannot certify that all work will be performed in the United States, the bidder must contact the procurement officer in writing to request a waiver at least 10 days prior to the deadline for receipt of bids.

The request must include a detailed description of the portion of work that will be performed outside the United States, where, by whom, and the reason the waiver is necessary.

Failure to comply with these requirements may cause the state to reject the bid as non-responsive or cancel the contract.

SEC. 2.07 THIRD-PARTY FINANCING AGREEMENTS NOT ALLOWED

Third-party financing agreements will not be permitted under the resulting contract.

SEC. 2.08 SUBCONTRACTORS

Subcontractors will not be allowed.

SEC. 2.09 JOINT VENTURES

Joint ventures will not be allowed.

SEC. 2.10 F.O.B. POINT

The F.O.B. point for all items purchased under this contract is the final destination anywhere within the State of Alaska. Ownership of and title to the ordered items remains with the contractor until the items have been delivered to their final destination and are accepted by the state.

The cost of shipping and delivery is to be included in the bid price.

SEC. 2.11 INSPECTION & MODIFICATION - REIMBURSEMENT FOR

UNACCEPTABLE DELIVERABLES

The contractor is responsible for providing all products or the completion of all work set out in the contract. All products or work is subject to inspection, evaluation, and approval by the state. The state may employ all reasonable means to ensure that the work is progressing and being performed in compliance with the contract. The state may

12 Revised 3/7/2024 instruct the contractor to make corrections or modifications if needed in order to accomplish the contract’s intent. The contractor will not unreasonably withhold such changes.

Substantial failure of the contractor to perform the contract may cause the state to terminate the contract. In this event, the state may require the contractor to reimburse monies paid (based on the identified portion of unacceptable products or work received) and may seek associated damages.

SEC. 2.12 EQUIPMENT INSPECTION

Equipment offered (including for lease) may be subject to inspection and approval by the state prior to the award of the ITB. The equipment and attachments must be in good repair and capable of performing the work for which they were designed.

SEC. 2.13 DISCONTINUED ITEMS

In the event an item is discontinued by the manufacturer during the life of the contract, another item may be substituted, provided that the procurement officer makes a written determination that it is equal to or better than the discontinued item and provided that it is sold at the same price or less than the discontinued item.

SEC. 2.14 SHIPPING DAMAGE

The state will not accept or pay for damaged goods. The contractor must file all claims against the carrier(s) for damages incurred to items in transit from the point of origin to the ultimate destination. The state will provide the contractor with written notice when damaged goods are received. The state will deduct the cost of the damaged goods from the invoice prior to payment. The contractor must file all claims against the carrier(s) for reimbursement of the loss.

SEC. 2.15 CONTRACT CHANGES – UNANTICIPATED AMENDMENTS

During the course of this contract, the contractor may be required to perform additional work. That work will be within the general scope of the initial contract. When additional work is required, the state will provide the contractor a written description of the additional work and request the contractor to submit a firm time schedule for accomplishing the additional work and a firm price for the additional work. Cost and pricing data must be provided to justify the cost of such amendments per AS 36.30.400.

The contractor will not commence additional work until the procurement officer has secured required state approvals necessary and issued a written contract amendment.

SEC. 2.16 CONTINUING OBLIGATION OF CONTRACTOR

Notwithstanding the expiration date of a contract resulting from this ITB, the contractor is obligated to fulfill its responsibilities until warranty, guarantee, maintenance, and parts availability requirements have completely expired.

SEC. 2.17 BILLING INSTRUCTIONS

All invoices produced by the contractor must contain the following information at a minimum:

1. One invoice per location.

2. Invoices must clearly identify the Purchase Order, Location, Lot number, item description, quantity, unit price, total extended price and shipping price. Shipping costs must be a separate line item on the invoice and must match the certified copies of, or actual shipping invoice(s)

3. POD, signed with name printed must accompany invoices –

13 Revised 3/7/2024

• Delivery agents for the Contractor are responsible for ensuring that the printed name is legible on the

POD.

• POD’s must clearly identify the date delivered, item description to include contents and container number and quantity.

• Weight tickets must clearly identify the truck and driver, the gross weight, tare weight and net weight of each vehicle used to make a delivery, the date delivered, quantity, and “Marked For” destination; and

• Certified copies of, or actual shipping invoice(s)

Invoices must be billed to the ordering agency's address shown on the individual Purchase Order, Contract Award or Delivery Order. The state will make payment after it receives the goods or services and the invoice. Questions concerning payment must be addressed to the ordering agency.

SEC. 2.18 ESTIMATED QUANTITIES

The quantities referenced in this ITB are estimated requirements and may vary more or less from the quantities actually purchased. The State does not guarantee any minimum or maximum purchase. Orders will be issued throughout the contract period on an as-needed basis.

SEC. 2.19 WARRANTY

This section does not apply to this ITB.

SEC. 2.20 INDEMNIFICATION

The contractor shall indemnify, hold harmless, and defend the contracting agency from and against any claim of, or liability for error, omission or negligent act of the contractor under this agreement. The contractor shall not be required to indemnify the contracting agency for a claim of, or liability for, the independent negligence of the contracting agency. If there is a claim of, or liability for, the joint negligent error or omission of the contractor and the independent negligence of the contracting agency, the indemnification and hold harmless obligation shall be apportioned on a comparative fault basis.

“Contractor” and “contracting agency”, as used within this and the following article, include the employees, agents and other contractors who are directly responsible, respectively, to each. The term “independent negligence” is negligence other than in the contracting agency’s selection, administration, monitoring, or controlling of the contractor and in approving or accepting the contractor’s work.

SEC. 2.21 INSURANCE

Without limiting the contractor's indemnification, it is agreed that the contractor shall purchase at its own expense and maintain in force at all times during the performance of services under this agreement the following policies of insurance. Where specific limits are shown, it is understood that they shall be the minimum acceptable limits. If the contractor's policy contains higher limits, the state shall be entitled to coverage to the extent of such higher limits.

Certificates of Insurance must be furnished to the procurement officer prior to contract approval and must provide for a notice of cancellation, non-renewal, or material change of conditions in accordance with policy provisions. Failure to furnish satisfactory evidence of insurance or lapse of the policy is a material breach of this contract and shall be grounds for termination of the contractor's services. All insurance policies shall comply with and be issued by insurers licensed to transact the business of insurance under AS 21.

14 Revised 3/7/2024

Proof of insurance is required for the following:

• Workers' Compensation Insurance: The contractor shall provide and maintain, for all employees engaged in work under this contract, coverage as required by AS 23.30.045, and where applicable, any other statutory obligations including but not limited to Federal U.S.L. & H. and Jones Act requirements. The policy must waive subrogation against the state.

• Commercial General Liability Insurance: covering all business premises and operations used by the contractor in the performance of services under this agreement with minimum coverage limits of $300,000 combined single limit per occurrence.

• Commercial Automobile Liability Insurance: covering all vehicles used by the contractor in the performance of services under this agreement with minimum coverage limits of $300,000 combined single limit per occurrence.

15 Revised 3/7/2024

SECTION 3. BID FORMAT AND CONTENT

SEC. 3.01 BID FORMS

Bidders shall use the front page of this ITB, the Bid Submission Cover Sheet, and any other forms identified in this ITB for submitting bids. All bids must be signed by an individual authorized to bind the bidder to the provisions of the ITB.

BIDDER'S CERTIFICATION

By signature on the bid, the bidder certifies that they comply with the following:

A. the laws of the State of Alaska;

B. the applicable portion of the Federal Civil Rights Act of 1964;

C. the Equal Employment Opportunity Act and the regulations issued thereunder by the state and federal government;

D. the Americans with Disabilities Act of 1990 and the regulations issued thereunder by the state and federal government;

E. all terms and conditions set out in this ITB;

F. the price(s) submitted was arrived at independently arrived and without collusion, under penalty of perjury;

and

G. that the bid will remain open and valid for at least 90 days.

If any bidder fails to comply with [a] through [g] of this paragraph, the state reserves the right to disregard the bid, terminate the contract, or consider the contractor in default.

CONFLICT OF INTEREST

Each bid shall include a statement indicating whether the company or any individuals working on the contract has a possible conflict of interest (e.g., currently employed by the State of Alaska or formerly employed by the State of Alaska within the past two years) and, if so, the nature of that conflict. The procurement officer reserves the right to consider a bid non-responsive and reject it or cancel the award if any interest disclosed from any source could either give the appearance of a conflict or cause speculation as to the objectivity of the contract to be performed by the bidder.

SEC. 3.02 PRICES

The bidder shall state prices in the units of issue on this ITB. Prices quoted in bids must be exclusive of federal, state, and local taxes. If the bidder believes that certain taxes are payable by the state, the bidder may list such taxes separately, directly below the bid price for the affected item.

16 Revised 3/7/2024

SECTION 4. EVALUATION AND CONTRACTOR

SELECTION

SEC. 4.01 EVALUATION OF BIDS

After bid opening, the procurement officer will evaluate the bids for responsiveness. Bids deemed non-responsive will be eliminated from further consideration. An evaluation may not be based on discrimination due the race, religion, color, national origin, sex, age, marital status, pregnancy, parenthood, disability, or political affiliation of the bidder.

SEC. 4.02 APPLICATION OF PREFERENCES

Certain preferences apply to all state contracts, regardless of their dollar value. The Alaska Bidder and Alaska Veteran preferences are the most common preferences involved in the ITB process. Additional preferences that may apply to this procurement are listed below. Guides that contain excerpts from the relevant statutes and codes, explain when the preferences apply and provide examples of how to calculate the preferences are available at the following website:

https://oppm.doa.alaska.gov/policy-oversight/policy-resources/user-guide-matrixes/

• Alaska Products Preference - AS 36.30.332

• Recycled Products Preference - AS 36.30.337

• Local Agriculture and Fisheries Products Preference - AS 36.15.050

• Employment Program Preference - AS 36.30.321(b)

• Alaskans with Disabilities Preference - AS 36.30.321(d)

The Division of Vocational Rehabilitation in the Department of Labor and Workforce Development keeps a list of qualified employment programs and individuals who qualify as persons with a disability. As evidence of a business’ or an individual's right to the Employment Program or Alaskans with Disabilities preferences, the Division of Vocational Rehabilitation will issue a certification letter. To take advantage of these preferences, a business or individual must be on the appropriate Division of Vocational Rehabilitation list prior to the time designated for receipt of proposals. Bidders must attach a copy of their certification letter to the proposal. A bidder’s failure to provide this certification letter with their proposal will cause the state to disallow the preference.

SEC. 4.03 ALASKA BIDDER PREFERENCE

An Alaska Bidder Preference of 5% will be applied to the total bid price. The preference will be given to a bidder who:

1) holds a current Alaska business license prior to the deadline for receipt of bids;

2) submits a bid for goods or services under the name appearing on the bidder’s current Alaska business license;

3) has maintained a place of business within the state staffed by the bidder, or an employee of the bidder, for a period of six months immediately preceding the date of the bid;

4) is incorporated or qualified to do business under the laws of the state, is a sole proprietorship and the proprietor is a resident of the state, is a limited liability company (LLC) organized under AS 10.50 and all members are residents of the state, or is a partnership under AS 32.06 or AS 32.11 and all partners are residents of the state;

and

5) if a joint venture, is composed entirely of ventures that qualify under (1)-(4) of this subsection.

https://oppm.doa.alaska.gov/policy-oversight/policy-resources/user-guide-matrixes/

17 Revised 3/7/2024

Alaska Bidder Preference Certification Form To receive the Alaska Bidder Preference, the bid must include the Alaska Bidder Preference Certification Form attached to this ITB. A bidder does not need to complete the Alaska Veteran Preference questions on the form if not claiming the Alaska Veteran Preference. A bidder’s failure to provide this completed form with their bid will cause the state to disallow the preference.

SEC. 4.04 ALASKA VETERAN PREFERENCE

An Alaska Veteran Preference of 5%, not to exceed $5,000, will be applied to the total bid price. The preference will be given to a bidder who qualifies under AS 36.30.990(2) as an Alaska Bidder and is a:

a) sole proprietorship owned by an Alaska veteran;

b) partnership under AS 32.06 or AS 32.11 if a majority of the partners are Alaska veterans;

c) limited liability company organized under AS 10.50 if a majority of the members are Alaska veterans; or

d) corporation that is wholly owned by individuals, and a majority of the individuals are Alaska veterans.

In accordance with AS 36.30.321(i), the bidder must also add value by actually performing, controlling, managing, and supervising the services provided, or for supplies, the bidder must have sold supplies of the general nature solicited to other state agencies, other government, or the general public.

Alaska Veteran Preference Certification To receive the Alaska Veteran Preference, the bid must include the Alaska Bidder Preference Certification Form attached to this ITB. A bidder’s failure to provide this completed form with their bid will cause the state to disallow the preference.

SEC. 4.05 USE OF LOCAL FOREST PRODUCTS

In a project financed by state money in which the use of timber, lumber and manufactured lumber is required, only timber, lumber and manufactured lumber products originating in this state from Alaska forests shall be used unless the use of those products has been determined to be impractical, in accordance with AS 36.15.010 and AS 36.30.322.

SEC. 4.06 LOCAL AGRICULTURAL AND FISHERIES PRODUCT

PREFERENCE

When agricultural, dairy, timber, lumber, or fisheries products are purchased using state money, a seven percent (7%) preference shall be applied to the price of the products harvested in Alaska, or in the case of fisheries products, the products harvested or processed within the jurisdiction of Alaska, in accordance with AS 36.15.050.

SEC. 4.07 ALASKA PRODUCT PREFERENCE

A bidder that designates the use of an Alaska Product which meets the requirements of the ITB specifications and is designated as a Class I, Class II, or Class III Alaska Product by the Department of Community & Economic Development (DCCED) may receive a preference in the bid evaluation in accordance with AS 36.30.332 and 3 AAC 92.010.

To qualify for the preference, the product must have received certification from DCCED, be listed in the current published edition of the Alaska Products Preference List, and the bidder must provide the qualified product on a 100% basis. There are no provisions under Alaska Statutes or Regulations that allow for a product exchanges/substitutions or permit the product to be co-mingled with other products. Rather, AS 36.30.330 provides for a penalty for failing to use the designated Alaska products.

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Products are classified in one of three categories:

• Class I products receive a 3% preference.

• Class II products receive a 5% preference.

• Class III products receive a 7% preference.

When the bids are evaluated, the preference percentage will be deducted from the product price. If a bidder fails to specify the brand being offered, no preference will be given. For more information on the Alaska Product Preference and to see the list of products currently on the Alaska Product Preference List, use the following web link:

https://www.commerce.alaska.gov/web/dcra/AlaskaProductPreferenceProgram.aspx

Brand Offered If offering a product that qualifies for the Alaska Product Preference, the bidder must indicate the brand of product they intent to provide. If a bidder is not offering a product that qualifies for the Alaska Product Preference, the bidder does not need to indicate a product brand.

Brand of Product Changes During the course of the contract including all renewal options, a contractor that offered a product that qualified for the Alaska Product Preference wishes to change the product brand, the contractor must first provide a written request, along with evidence that the replacement brand also qualifies for the Alaska Product Preference, for approval by the procurement officer. A contract amendment must be issued by the procurement officer to authorize the change.

If a bidder offers a product brand in the original bid that does not qualify for the Alaska Product Preference, a change in the product brand may be made at any time during the course of the contract, including all renewals, as long as the product band continues to meet the required specifications. A contract amendment is not required if the product brand originally offered did not qualify for the Alaska Product Preference.

SEC. 4.08 EMPLOYMENT PROGRAM PREFERENCE

If a bidder qualifies for the Alaska Bidder Preference and is offering goods or services through an employment program as defined under AS 36.30.990(12), an Employment Program Preference of 15% will be applied to the total bid price.

In accordance with AS 36.30.321(i), the bidder must also add value by actually performing, controlling, managing, and supervising the services provided, or for supplies, the bidder must have sold supplies of the general nature solicited to other state agencies, other government, or the general public.

SEC. 4.09 ALASKANS WITH DISABILITIES PREFERENCE

If a bidder qualifies for the Alaska Bidder Preference and is a qualifying entity as defined in AS 36.30.321(d), an Alaskans with Disabilities Preference of 10% will be applied to the total bid price.

In accordance with AS 36.30.321(i), the bidder must also add value by actually performing, controlling, managing, and supervising the services provided, or for supplies, the bidder must have sold supplies of the general nature solicited to other state agencies, other government, or the general public.

SEC. 4.10 PREFERENCE QUALIFICATION LETTER

Regarding the Employment Program Preference and the Alaskans with Disabilities Preference, the Division of Vocational Rehabilitation in the Department of Labor and Workforce Development maintains lists companies who qualify for those preferences. As evidence of a company’s right to the preferences, the Division of Vocational Rehabilitation will issue a certification letter. To take advantage of the preferences, a bidder must be on the appropriate Division of Vocational Rehabilitation list at the time the bid is opened and must attach a copy of their certification https://www.commerce.alaska.gov/web/dcra/AlaskaProductPreferenceProgram.aspx

19 Revised 3/7/2024 letter to their bid. The bidder's failure to provide this certification letter with their bid will cause the state to disallow the preference.

SEC. 4.11 EXTENSION OF PRICES

In case of error in the extension of prices in the bid, the unit prices will govern; in a lot bid, the lot prices will govern.

SEC. 4.12 METHOD OF AWARD

Award will be made to the lowest responsive and responsible bidder. To be considered responsive, bidders must bid on all items.

SEC. 4.13 NOTICE OF INTENT TO AWARD

After the responses to this ITB have been opened and evaluated, a tabulation of the bids will be prepared. This tabulation, called a Notice of Intent to Award, serves two purposes. It lists the name of each company or person that offered a bid and the price they bid. It also provides notice of the state's intent to award a contract(s) to the bidder(s) indicated. A copy of the Notice of Intent will be sent to each company or person who responded to the ITB. Bidders identified as the apparent low responsive bidders are instructed not to proceed until a Purchase Order, Contract Award, Lease, or some other form of written notice is given by the procurement officer. A company or person who proceeds prior to receiving a Purchase Order, Contract Award, Lease, or some other form of written notice from the procurement officer does so without a contract and at their own risk.

20 Revised 3/7/2024

SECTION 5. GENERAL PROCESS AND LEGAL

INFORMATION

SEC. 5.01 ALASKA BUSINESS LICENSE AND OTHER REQUIRED LICENSES

Prior to the award of a contract, a bidder must hold a valid Alaska business license. However, to receive the Alaska Bidder Preference and other related preferences, such as the Alaska Veteran Preference and Alaskans with Disabilities Preference, a bidder must hold a valid Alaska business license prior to the deadline for receipt of bids.