ITB025166_Contract.pdf

STATE OF OHIO

DEPARTMENT OF ADMINISTRATIVE SERVICES

GENERAL SERVICES DIVISION

OFFICE OF PROCUREMENT SERVICES

4200 SURFACE ROAD, COLUMBUS, OH 43228-1395

OPTIONAL USE CONTRACT FOR: FIRST CLASS MAIL PRESORT SERVICES FOR LETTERS AND FLATS

UP TO 13 OUNCES

CONTRACT No.: ITB025166

CONTRACT ID: 25166

EFFECTIVE DATES: 5/1/2025 to 4/30/2029

SUPPLIER: PITNEY BOWES PRESORT SERVICES INC

The Department of Administrative Services has accepted bids submitted in response to Invitation to Bid No.

SRC0000025726. The evaluation of the bid response(s) has been completed. The bidder(s) listed herein have been determined to be the lowest responsive and responsible bidder(s) and have been awarded a contract for the items(s) listed. The respective bid response, including the Instructions to Bidders and Standard Terms and Conditions, special contract terms & conditions, any bid addenda, specifications, pricing schedules and any attachments incorporated by reference and accepted by DAS become a part of this Requirements Contract.

This Requirements Contract is effective beginning and ending on the dates noted above unless, prior to the expiration date, the Contract is renewed, terminated or cancelled in accordance with the Contract Terms and Conditions.

CONTRACT RENEWAL. This Contract may be renewed after the ending date of the Contract solely at the discretion of the Contracting Agency for a period of one month. Any further renewals will be by mutual agreement between the Contractor and the Contracting Agency for any number of times and for any period of time. The cumulative time of all mutual renewals may not exceed 36 months unless the Contracting Agency determines that additional renewal is necessary.

This Requirements Contract is available to all State Agencies, State institutions of higher education, and any other entities listed on the pickup schedule within the contract, as applicable.

Agencies are eligible to make purchases of the listed supplies and/or services in any amount and at any time as determined by the agency. The State makes no representation or guarantee that agencies will purchase the volume of supplies and/or services as advertised in the Invitation to Bid.

This Requirements Contract and any Amendments thereto are available from the OhioBuys public portal at the following address:

https://ohiobuys.ohio.gov/page.aspx/en/usr/login?ReturnUrl=%2fpage.aspx%2fen%2fbuy%2fhomepa ge

Signed: _____________________________________________________________________ Kathleen C. Madden, Director Date https://ohiobuys.ohio.gov/page.aspx/en/usr/login?ReturnUrl=%2fpage.aspx%2fen%2fbuy%2fhomepage https://ohiobuys.ohio.gov/page.aspx/en/usr/login?ReturnUrl=%2fpage.aspx%2fen%2fbuy%2fhomepage

1 - SPECIFICATIONS AND REQUIREMENTS

1.1 SCOPE: The Ohio Department of Administrative Services (DAS), Office of Procurement Services (OPS), is seeking a Contractor to pick up, presort, barcode, and deliver First Class Mail to the United States Postal Service (USPS) on the date shown on the meter imprint. First Class Mail includes flats, letters, postcards, and residual mail.

All mail picked up from entities that process less than 3,000,000 pieces monthly, picked up before 12:00 pm, must be delivered to the USPS and postmarked that same day.

All mail picked up from entities that process less than 3,000,000 pieces monthly, picked up after 12:00 pm, must be delivered to the USPS and postmarked for the following day. These pieces will be considered next day mail.

All mail picked up from entities that process more than 3,000,000 pieces monthly will be picked up several times during the day, up until 2:30 pm. These pieces must be delivered to the USPS and postmarked that same day.

Entities other than State agencies will schedule pickups directly with the Contractor and must be billed separately from any State Agency.

1.2 MAIL DIMENSION REQUIREMENTS

1.2.1 First Class Mail – Letters and Postcards

This contract includes letters and postcards up to three ounces. Letter size mail is rectangular in shape and consists of letters within the following dimensions:

Minimum Length – 5 inches Height – 3-1/2 inches Thickness - .007 inches

Maximum Length – 11-1/2 inches Height – 6-1/8 inches Thickness - .25 inches

Postcard size mail is rectangular in shape and consists of postcards within the following dimensions:

Minimum Length – 5 inches Height – 3-1/2 inches Thickness - .007 inches

Maximum Length – 9 inches Height – 6 inches Thickness - .016 inches

1.2.2 First Class Mail - Flats

This contract includes flats up to 13 ounces. Flat size mail is rectangular in shape, uniformly thick, flexible and consists of mail pieces within the following dimensions:

Minimum Length – 11-1/2 inches Height – 6-1/8 inches Thickness - .25 inches

Maximum Length – 12 inches Height – 9 inches Thickness - .75inches

1.3 PRESORT MAIL SPECIFICATIONS

1.3.1 Residual Mail: The Contractor must presort 100% of mail processed for delivery to the USPS and must meet the current USPS presort discounted price structure. Mail remaining after a presort is considered residual mail. Any postage cost incurred due to residual mail will be the responsibility of the Contractor to pay.

1.3.2 Move Update: The Move Update standard is a means of reducing the number of mail pieces that require forwarding or return by the periodic matching of a mailer’s address records with change of-address orders received and maintained by the USPS. Mailers who claim First-Class Mail presorted or automation prices must demonstrate that they have updated their mailing list within 95 days before the mailing date.

To meet the Move Update regulations, the State requires an NCOALink MPE system with the option of spraying an endorsement that will enable the Contractor to return those pieces receiving a move update. Costs associated with meeting this USPS requirement must be included in the per piece price.

1.3.3 Delivery Point Validation (DPV): DPV identifies whether a ZIP + 4 coded address is currently represented in the USPS delivery file as a known address record. It also allows users to confirm known USPS addresses, as well as identify potential addressing issues that may hinder delivery. Costs associated to meet this USPS requirement must be included in the per piece price.

1.3.4 Intelligent Mail Barcode (IMB): The Intelligent Mail barcode is a 65-bar barcode used to sort and track letters and flats. It allows mailers to use a single barcode to participate in multiple USPS programs simultaneously, expands mailers' ability to track individual mail pieces, and provides greater mail stream visibility. All presorted State mail must receive the IMB. Costs associated to meet this USPS requirement must be included in the per piece price.

1.3.5 Mail pick up locations may be added, removed, or changed at any time during the term of this Contract.

Mail pickup times for State Agencies are designated by the Administrator of State Mail Services and are also subject to change. The Contractor is required to adjust its schedules to accommodate such changes at no additional charge to the State.

Below is the current pickup schedule that must occur daily, except on State observed holidays. The Contractor is encouraged to confirm with each entity prior to implementing the schedule.

Dept of Agriculture 8995 E. Main St. 2:45 PM Board of Cosmetology 1929 Gateway Circle 1:15 PM Bureau of Criminal Investigation 1560 St Rt 56 SW 3:15 PM Bureau of Workers' Compensation 30 W. Spring St. 4:15 PM

DAS Fulfillment/Job and Family Services (JFS) 2088 Integrity Dr. N. 9 AM, 11 AM, 1 PM, 2:30 PM

Deferred Compensation 257 E. Town St. 11 AM Dept of Natural Resources 2045 Morse Rd 4:40 PM Dept of Public Safety 1970 W. Broad St. 1:30 PM Dept of Rehabilitation and Correction 4545 Fisher Rd. 2:50 PM Dept of Taxation 4485 Northland Ridge Blvd. 4:30 PM Dept of Transportation 1980 W. Broad St. On Call Dept of Transportation - Delaware 400 E. William St. On Call Industrial Commission 30 W. Spring St. 4:15 PM Opportunities for Ohioans with Disabilities 150 E. Campusview Blvd. 10:00 AM Public Employee Retirement System 277 E. Town St. 3:45 PM

School Employee Retirement System 300 E. Broad St. 11:15 AM Secretary of State 200 S. Civic Center Dr., 2nd Floor 4:00 PM Senate - State House 78 S High St. 3:15 PM State Office Tower 1 30 E. Broad St. 4:00 PM State Teachers Retirement System 275 E. Broad St. 4:00 PM Supreme Court 65 S. Front St. 4:15 PM

1.3.6 All mail picked up daily must be presorted by the Contractor and delivered to the USPS on the date shown on the meter imprint.

1.3.7 All mail must be metered at the automated 5 digit presort rate. It is the Contractor's responsibility to qualify 100% of this mail at this rate either by proper sorting or adding additional postage as required. All costs necessary to perform the functions specified herein must be included in the cost per piece.

1.3.8 The State’s daily volumes must be completely presorted to meet the requirements of the USPS. The Contractor certifies that all volume will be processed and totally mixed (where possible) with metered volumes from its other customers each mailing day.

1.3.9 Achieving complete presorting and no re-dating of the mail is of the utmost importance to the State. The State will not pay for services on the day(s) that complete presorting of the mail is not accomplished, including when re-dating of the mail occurs. The Administrator of State Mail Services may choose to waive this requirement if the situation is completely out of the control of the Contractor.

1.3.10 All non-mailable items and batch route slips must be returned to State Mail Service no later than the next business day as shown on the meter imprint.

1.3.11 All mail, regardless of method in which mail is generated, must be processed for qualification. This includes handwritten mail.

1.3.12 The Contractor must provide each entity with an authorized, signed daily report of mail picked up for processing.

1.3.13 It is not the responsibility of the Contractor to process mail that does not meet the mail dimension requirements in Section 1.2 or mail that cannot be mechanically processed due to conditions, such as mail pieces sticking together, mailing addresses that are not entirely visible (obstructed by envelope window), or mailing addresses not located in the address read area with 1/8” clearance around the address. The Contractor must promptly notify the entity of the problem, and upon mutual agreement, the Contractor will either return the mail or rework the mail. When the mutually agreed upon solution is for the Contractor to return the mail to the pickup location, the mail must be returned within 2 hours of that agreement. The cost for each service must be indicated in the OhioBuys Item Grid on a per piece basis.

1.4 THIRD PARTY AND PERMIT MAIL SPECIFICATIONS

1.4.1 The Contractor must process mail, which is prepared by a contracted third party vendor, at the rates, terms, and conditions specified in the Contract. The contracted third party vendor is responsible for delivering the mail to the Contractor unless the Contractor agrees to other arrangements.

1.4.2 The Contactor must be responsible for processing mail bearing a permit imprint indicia, as the method for paying postage, at the same presort fee assessed to metered mail. It is the responsibility of each entity to obtain a presort indicia/slugs for imprinting their presort First Class Mail identification.

1.4.3 Each entity is responsible for the payment of all USPS fees associated with paying postage via permit imprint indicia and printing the indicia, and any service endorsements required in conjunction with the indicia, on mail pieces.

1.4.4 The Contractor must be presented with permit imprinted mail that is separated into groups according to the exact weight and size of individual mail pieces and label the groups accordingly. Permit imprinted mail must be provided to the Contractor at least one day before the scheduled mailing date and the mailing date must be arranged with the Contractor.

1.4.5 The Contactor must co-mingle non-flat size mail bearing a permit imprint indicia with metered mail processed under the Contract and charge the same presort rates specified in the Contract. If the Contractor is unable to co-mingle non-flat size mail bearing a permit imprint indicia with metered mail, the Contractor must process the mail separately at the lowest achievable postage rates and charge the presort rates specified in the Contract and the actual postage cost. The Contractor must provide the entity with a USPS mailing statement stamped by the USPS for each separate mailing of non-flat size pieces that the Contractor is unable to co-mingle with metered mail. The entity is responsible for any additional postage or USPS penalties due to non-compliance with mail piece design requirements. The Contractor must promptly notify the entity in such instances and determine a course of action prior to submitting the mailing to the USPS.

1.4.6 The entity must ensure they have sufficient postage funds available for each mailing of permit imprint mail at the time of mailing. Options for paying postage must be mutually agreed upon and may include the entity providing the Contractor with individual checks for each mailing, establishing an escrow account with the Contractor, or establishing a pre-paid account with the USPS.

1.4.7 If the entity establishes an escrow account with the Contractor to pay postage for permit imprinted mail, the Contractor must provide an activity statement with each invoice for each date where funds are deposited or withdrawn from the account, including when postage is used. If a pre-paid account with the USPS is established to pay postage for permit imprinted mail, the Contractor must provide a copy of the USPS mailing statement stamped by the USPS for each mailing.

1.5 ADDITIONAL REQUIREMENTS FOR LARGE CUSTOMERS

1.5.1 JFS mail that is paid from a special government account (G-12 mail) and qualifies for presort must be reported daily back to the sending agency. G-12 mail runs daily with approximately 10,000,000 pieces per year.

1.5.2 JFS has special mailings of approximately 600,000 pieces at the end of each month.

1.6 CONTRACTOR REQUIREMENTS

1.6.1 All mail and processes are subject to the governing regulations of the USPS and laws of the United States affecting the processing of U.S. Mail.

1.6.2 There must be no re-dating of mail without the prior approval of the Administrator of State Mail Services.

1.6.3 Compliance with USPS preparation requirements will be the responsibility of the Contractor except for an error in mail preparation such as the application of postage and correct dating of mail by State agencies.

1.6.4 The Contractor is liable for any lawsuit(s) arising from any of its actions concerning non-delivery of State mail to the USPS.

1.6.5 Any incorrect endorsements (i.e. “Address Service Requested”, “Return Service Requested”, “Forwarding Service Requested” etc.) must be corrected by the Contractor when requested.

1.6.6 The Contractor is required to furnish the personnel, vehicles, and mail sort production facilities necessary to perform the services required for this Contract.

1.6.7 All presorting of mail and related functions are to be accomplished at a facility owned or rented by the Contractor for such services. The State reserves the right to visit the Contractor's presorting facilities at any time during the Contractor's normal working hours.

1.6.8 The Contractor must provide adequate security for State mail while in its possession. The Contractor is responsible for all mail losses that occur as a result of the Contractor's failure to provide adequate security. The Contractor must provide 24-hour security for State mail either by on-site security guards or a third party monitored security system.

1.6.9 Vehicles utilized for the pickup and delivery of mail must be capable of being locked and must be locked during the transportation of State mail.

1.6.10 The cost per piece price must include the total costs to provide mail services as described herein including residual mail costs (with the exception of permit mailing), transportation costs, personnel costs, fringe benefits, direct costs, overhead, profit, insurance, and any other costs relative to providing services under this Contract. The cost per piece price may not exceed 3 decimal places for the duration of the Contract.

1.7 CONTRACTOR QUALIFICATIONS

1.7.1 The Contractor must be a CASS certified registered mailer with the USPS and pay the applicable annual fees. Proof of CASS certification must be provided in the OhioBuys Questionnaire.

1.7.2 The Contractor is required to acquire any licenses necessary to perform the total services required. The Contractor is responsible to comply with all laws, rules, and regulations pertaining to the performance and services delivered through this Contract. The Contractor must prepare the most current required U.S. Postal Service Forms 3602.

1.7.3 The Contractor must have at least five years of experience in the mail sort business within the last ten years. Proof of experience must be provided in the OhioBuys Questionnaire.

1.7.4 The Contractor must furnish three references where similar services as described herein were successfully performed. References must be provided in the OhioBuys Questionnaire.

2 - STANDARD TERMS AND CONDITIONS

The State of Ohio Standard Terms and Conditions (revised 03/01/24) govern this Contract and are incorporated as if fully written herein.

3 - CONTRACT SPECIFIC TERMS AND CONDITIONS

3.1 - ORDER OF PRIORITY

The order of priority of the Contract will be the following: 1.) Specifications and Requirements; 2) Contract Specific Terms and Conditions; 3) Standard Terms and Conditions.

3.2 - AMENDMENT TO CONTRACT TERMS AND CONDITIONS

The following Amendments to the Contract Terms and Conditions do hereby become a part hereof. In the event that an amendment conflicts with the Contract Terms and Conditions, the Amendment will prevail.

3.3 - FIXED PRICE WITH ECONOMIC ADJUSTMENT

The contract prices(s) will remain firm for the first 12 months duration of the contract. Thereafter, the Contractor may submit a request to increase their price(s) to be effective 30 calendar days after acceptance by DAS. No price adjustment will be permitted prior to the effective date of the increase received by the Contractor from its suppliers, or on purchase orders that are already being processed, or on purchase orders that have been filled and are awaiting shipment. If the Contractor receives orders requiring quarterly delivery, the increase will apply to all deliveries made after the effective date of the price increase.

The price increase must be supported by a general price increase in the cost, due to increases in the cost of raw materials, labor, freight, Workers' Compensation and/or Unemployment Insurance, etc. Detailed documentation, to include a comparison list of the contract items and proposed price increases, must be submitted to support the requested increase. Supportive documentation should include, but is not limited to: copies of the old and the current price lists or similar documents which indicate the original base cost of the product to the Contractor and the corresponding increase, and/or copies of correspondence sent by the Contractor's supplier on the supplier's letterhead, which contain the above price information and explains the source of the increase in such areas as raw materials, freight, fuel or labor, etc.

Should there be a decrease in the cost of the finished product due to a general decline in the market or some other factor, the Contractor is responsible to notify DAS immediately. The price decrease adjustment will be incorporated into the contract and will be effective on all purchase orders issued after the effective date of the decrease. If the price decrease is a temporary decrease, such should be noted on the invoice. In the event that the temporary decrease is revoked, the contract pricing will be returned to the pricing in effect prior to the temporary decrease. For quarterly deliveries, any decrease will be applied to deliveries made after the effective date of the decrease. Failure to comply with this provision will be considered as a default and will be subject to the “Suspension/Termination” and the “Contract Remedies” sections of the “Standard Contract Terms and Conditions”.

https://procure.ohio.gov/static/TCond/Standard_T_C%203-1-24.pdf

3.4 - MONTHLY USAGE REPORTS

The Contractor must submit two contract usage reports per month to the Administrator of State Mail Services. The reports must be received within 3 business days following the 1st and the 15th of each month. These reports must show the itemized daily totals of each submission for mail which was processed, specific to each location/job.

3.5 - SUBCONTRACTING: The awarded Contractor must be solely responsible for the Contract. Subcontracting by the Contractor is not permitted under this Contract.

4 - INVITATION TO BID INSTRUCTIONS

Instructions, Terms and Conditions for Bidding that apply to the solicitation.

5 - SPECIAL INSTRUCTIONS TO BIDDERS

5.1 - DESCRIPTIVE LITERATURE

The Bidder may be required to submit descriptive literature of the supplies or services being offered. If requested, the literature will be used in the evaluation process to determine the lowest responsive and responsible bidder. If not provided as part of the bid response, the Bidder must provide said literature within seven calendar days after request/notification by the Office of Procurement Services to do so. Failure of the bidder to furnish descriptive literature either as part of their bid response or within the time specified herein will deem the bidder not responsive.

5.2 - CONTRACT AWARD

The contract will be awarded to the lowest responsive and responsible bidder by low lot total. Low lot total will be determined by multiplying the unit cost by the estimated usage listed in the item grid and then adding each of the totals together to arrive at a total for all items. Failure to bid all items may result in the bidder being deemed not responsive.

5.3 - EVALUATION

Bids will be evaluated in accordance with Article I-15 of the “Instructions to Bidders”. In addition, the State will multiply the unit cost by the estimated usage listed in the item grid. The totals will be added together to arrive at the low lot total.

https://procure.ohio.gov/pdf/OhioBuys_ITB_Instructions_to_Bidders_030921.pdf