ITB027857_Contract.pdf

STATE OF OHIO

DEPARTMENT OF ADMINISTRATIVE SERVICES

GENERAL SERVICES DIVISION

OFFICE OF PROCUREMENT SERVICES

4200 SURFACE ROAD, COLUMBUS, OH 43228-1395

MANDATORY USE CONTRACT FOR: PLASTIC BAGS FOR LICENSE PLATES

CONTRACT No.: ITB027857

CONTRACT ID: 27857

EFFECTIVE DATES: 07/15/25 to 06/30/2029

SUPPLIER: NET PAC INTERNATIONAL, LLC.

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

SRC0000029185. 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 the Ohio Department of Public Safety, 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%2fhomepage

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

1 - SPECIFICATIONS AND REQUIREMENTS

1.1 - SCOPE This Contract is established on behalf of the Ohio Department of Public Safety (DPS) for the procurement of plastic bags to accommodate passenger vehicle license plates.

1.2 - SPECIFICATIONS The specifications presented here are for transparent plastic bags used in packaging license plates at the Ohio Penal Industries (OPI), Lebanon, Ohio License Plate Production Plant. The license plates are sealed in bags to protect the plates during handling, shipment, and storage.

1.2.1 - GENERAL SPECIFICATION The bags must be manufactured in continuous strips with an opening and perforation at one end of each bag to permit insertion of plate(s) and bursting and sealing of the bags.

1.2.2 - BAG DIMENSIONS AND CONSTRUCTION

1.2.2.1 - Plastic bags must be furnished in continuous strips.

• The continuous strips may be fan-folded and packaged in cartons, or;

• The continuous strips may be wound on rolls. If wound on rolls, the roll shall be seven inches wide.

1.2.2.2 - All bags in each continuous strip must be sealed along both sides and at one end. The open end for inserting the plate(s) must be located at the right end of the bag when facing the front view of the bag, as noted in Exhibits I and II. The opposite end of the bag must be perforated at the opening to permit bursting and sealing the individual bags of plate(s).

1.2.2.3 - The overall dimension of the bag must be 14 inches long by seven inches wide once burst open by the flow of air generated by the bagging machine (see Exhibit I). The inside dimensions of the bag must be sufficient to accommodate two stacked license plates 12 inches wide by six inches long.

1.2.3 - PLASTIC MATERIAL

1.2.3.1 - All bags shall be made of clear transparent virgin low density polyethylene plastic two mils (.002”) thick. A variance of ± 10% in thickness is acceptable, the thickness may range from .0018" to .0022".

1.2.3.2 - Bags shall include a small hole (approximately 1/8-inch diameter) to permit air to escape from the sealed bags. The sealed plastic bags with the plate(s) enclosed shall not come apart at the seams under normal conditions of plate handling, shipping, and storage. The sealed plastic bags shall also have a shelf life of at least four years and shall not be discolored when stored under non-environmental room conditions at ambient temperatures between 0° and 110° Fahrenheit. Bagged license plates are typically stored in groups of 25 in a box until needed.

1.2.3.3 - During the shelf life, the plastic must remain pliable and flexible, and must not crack, check, become sticky, or change in appearance or chemical composition in any way. The plastic must not be affected by changes in humidity or atmospheric pressure.

1.2.4 - ARTWORK

1.2.4.1 - The Contractor must prepare or have prepared all the plates and equipment necessary to produce the designs as shown in Exhibits I and II. DPS will provide all artwork shown in these Exhibits to the Contractor.

1.2.4.2 - "The School Bus Law" must be modified so that the printing covers the maximum surface area of the back side of the bags. DPS will provide the language of the school bus law to the Contractor.

1.2.5 - PRINTING

1.2.5.1 - The printing must be distinct, i.e., not out of registration or fuzzy in any way. The colors must not bleed into each other or into the lettering, figures, and logo designs.

1.2.5.2 - The printing must not rub off, crack, craze, or change color during the shelf life.

1.2.5.3 - The current bag artwork color must match the following Pantone® Matching System (PMS) standard: Red – 7621C. Note that the White, as it appears in Exhibit I and II, is not a printed color but is the plastic bag itself.

1.2.6 - PRE-PRODUCTION SAMPLES Within 30 calendar days after the contract is awarded, approximately 100 pre-production samples of printed bags, as specified herein, must be provided to DPS, Attn: For DPS, 1970 West Broad Street, Columbus, OH 43223 for DPS approval.

1.2.7 - OWNERSHIP OF ARTWORK, PRINTING PLATES, AND PROOFS All artwork, printing plates, master copies, proofs, and all other materials related to the design of these license plate bags shall become the property of the State and must be delivered to the State upon its demand at no charge to the State.

The cost of developing the initial artwork, producing the initial printing plates, and other setup charges are to be included in the price bid for the bags. If the State determines that a change to the artwork is required during the term of the Contract, those costs are to be included as those for the Printing Plates as listed in the Item Grid.

1.2.8 - WORKMANSHIP All bags must be free from gels, streaks, pinholes, particles, or undisposed raw materials. There must be no visible defects such as tears, blisters, imperfect seals, or seams which may impair serviceability. All defective bags must be replaced by the Contractor at no additional cost to the State.

1.2.9 - COMPATIBILITY WITH EXISTING MACHINERY All bags must be compatible with the Advanced Poly-Packaging, Inc., Model T-300 Tabletop Bagger.

1.2.10 - PACKAGING

1.2.10.1 -The bags shall be supplied in cartons or on rolls of one continuous strip of approximately 1,800 bags per carton or roll, packaged 30 cartons or rolls per pallet.

1.2.10.2 - The above cited quantities per pallet may be adjusted plus (+) or minus (-) to facilitate packing and stacking to make a compact, safe, and secure package. Prior to making adjustments to pallet quantities, the Contractor shall obtain written approval from ordering agency.

1.2.10.3 - The cartons of bags must be packaged for shipment by common carrier and must meet all applicable International Code Council (ICC), Public Utilities Commission of Ohio (PUCO), and transportation and shipping industry requirements.

1.2.10.4 - The packaging must protect the bags from the adverse effects of heat and cold, humidity, light, dust, physical damage, impacts, and crushing during shipment and storage.

1.2.10.5 - The packaged cartons on pallets must allow the stacking of pallets, two pallets high, without adverse effects to the bags. All products must be palletized for delivery, even if the ordered quantity is less than a full pallet.

1.2.10.6 - Pallets must be designed to allow handling and stacking by a forklift truck. Two-way and four-way pallets are acceptable.

1.2.10.7 - The size, description of bags, number of cartons per pallet, and any other pertinent information must be placed on the outside of each palletized package.

1.2.10.8 - The size and description of bags must be listed on the outside of every carton.

1.2.11 - SUITABILITY FOR INTENDED PURPOSE

1.2.11.1 - Tensile strength testing must conform to ASTM D882-10, and the minimum utility tensile strength of the film must be 34 Mpa.

1.2.11.2 - Impact Resistance of Plastic Film testing must conform to ASTM D1709-09 and show that the plastic is suitable for the intended purpose of this contract, and able to accommodate the weight of two plates, eight ounces.

1.2.11.3 - Plastic Material must conform to ASTM D2103-10, Standard Specification for Polyethylene Film and Sheeting.

2 - STANDARD TERMS AND CONDITIONS

The State of Ohio Standard Terms and Conditions (revised 03/31/25) govern this Contract and are incorporated as if fully rewritten 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 - FIXED PRICE WITH ECONOMIC ADJUSTMENT The contract price(s) will remain firm for the first six 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.

3.2.1 - MATERIAL (PLASTIC BAGS) PRICE ADJUSTMENT Price adjustments to the material (plastic bags) portion of the costs will follow the percentage changes, both increases and decreases, as found in the Producer Price Index (PPI) by Industry: Plastic Bag and Pouch Manufacturing: Other Polyethylene Bags, Pouches, and Liners. These price adjustments only apply to the portion of the total delivered price identified in the cost allocation at the time of the bid as the material (plastic bag). Refer to section 5.5 -

COST ALLOCATION.

To determine the PPI change, calculate the percentage change from the month of contract award, or the last approved price adjustment, to the most current month available. The material portion of the cost will be increased or decreased according to the overall percentage change. A price adjustment example can be found in Exhibit III.

If the identified PPI index is no longer available, the State reserves the right to make a change to another index. The Contractor will be notified of this change prior to the implementation of the new index.

3.2.2 - OTHER COMPONENT PRICE ADJUSTMENT The price increase must be supported by a general price increase in the cost, due to increases for components other than those identified in section 3.2.1 such as 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 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 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”.

3.3 - DELIVERY The bags must be delivered as follows:

3.3.1 - Orders of 500,000 bags or less must be delivered within 30 days after receipt of an order.

3.3.2 - Orders over 500,000 bags must be delivered within 45 days after receipt of an order.

3.3.3 - Delivery Location The delivery location will be noted on the purchase order issued by DPS.

https://dam.assets.ohio.gov/image/upload/procure.ohio.gov/TCond/Standard_T_C_3-31-25.pdf https://data.bls.gov/dataViewer/view/timeseries/PCU32611132611115 https://data.bls.gov/dataViewer/view/timeseries/PCU32611132611115

3.3.3.1 - All deliveries are currently going to:

Ohio Department of Public Safety C/O Ohio Penal Industries Lebanon Correctional Institution 3791 State Route 63 Lebanon, Oh 45036

3.3.3.2 - The Contractor shall provide prior notification of all pending deliveries by contacting the facility’s Industrial Manager at (513) 932-2878.

3.3.3.3 - Deliveries may be accepted 7:30 a.m. to 1:30 p.m., Monday through Friday. No deliveries will be accepted on State holidays, Saturdays or Sundays.

3.3.3.4. - SECURITY NOTICE The delivery location is an operational correctional facility where security conditions could create abnormal delays or rejection of shipment(s). These conditions could include, but are not limited to, emergency lockdowns, fog alerts and other inclement weather. The Contractor shall cooperate in good faith and not interfere with the operations of the institution.

4 - INVITATION TO BID INSTRUCTIONS

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

5 - SPECIAL INSTRUCTIONS TO BIDDERS

5.1 - EVALUATION Bids will be evaluated in accordance with Article I-15 of the “Instructions to Bidders”. In addition, the State will calculate the low lot total 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.

5.2 - 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 - 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 three 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.

5.4 - PRODUCT SAMPLES The bidder(s) may be required to submit samples of the supplies being offered.

The samples will be used in the evaluation process to determine the lowest responsive and responsible bidder.

If not included as part of their bid response, the bidder will be required to provide the samples within seven calendar days after notification. Failure to provide the samples within the stated time period will result in the bidder being deemed not responsive. After award of the contract, the samples will be used as a basis of comparison with actual product delivered under contract. Any variation between the samples and product being delivered will be considered as an event of default. Any variations between the samples and actual product being delivered that are due to manufacturer changes may be acceptable and shall require prior written approval from DAS.

The product samples must be plastic bags of the specified thickness and include a sample of printing or graphics in the specified color.

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

5.5 - COST ALLOCATION The bidder(s) must submit a cost allocation where indicated in the questionnaire as part of their bid response. The portion of the bid prices that represent the cost of the materials (plastic bags) will be used to calculate price adjustments per section 3.2.1 - MATERIAL (PLASTIC BAG) PRICE ADJUSTMENT. No modifications to the cost allocation will be allowed during the term of the Contract.

Cost allocation:

• Materials (plastic bags) 25%

• Transportation (freight) 7%

• Labor 25%

• Utilities 28%

• Overhead 15%

5.6 - SOLICITATION CONFERENCE A solicitation conference will be held on Tuesday 05/20/25 via Microsoft Teams to discuss the requirements of the solicitation. The conference will commence promptly at 10:00 am, barring an unforeseen circumstance that results in a delay of the conference. Attendance will be taken. The State will not be responsible to a supplier for their failure to obtain information discussed during the solicitation conference due to their failure to attend and/or arriving after the conference has convened.

Please contact Lloyd Harmon by 3:00 pm on Monday 05/19/25 at lloyd.harmon@das.ohio.gov to request attendance, an email will be sent to those intending to attend including the appropriate link for the meeting.

EXHIBIT I: PASSENGER PLATE BAG 14” X 7” FRONT VIEW

EXHIBIT II: PASSENGER PLATE BAG 14” X 7” REAR VIEW

EXHIBIT III: PRICE ADJUSTMENT EXAMPLE

A. Total Bid Price = Material (plastic bags) Cost + Other Identified Costs (per bid)

• Adjusted Material Cost = Material Cost + (Material Cost x PPI Index Change)

• Adjusted Total Price = Adjusted Material Cost + Other Identified Costs

B. A Contract was awarded in February 2024.

• The Bid included a price of $9.99 and a Cost Allocation with Material Costs at 75%, Freight Costs at 15%, and Overhead Costs at 10%, or:

$7.493 Material (Cost Allocation 75%) $1.498 Freight (Cost Allocation 15%) $0.999 Overhead (Cost Allocation 10%) $9.990 Total Bid Price

• The PPI index in February 2024 was 184.287 and in February 2025 was 170.633, see chart below. The index decreased by 13.654 or 7.409%.

• Using the formula in section A above:

Adjusted Material Cost = $7.493 + ($7.493 x -7.409%) = $7.493 - $0.555 = $6.938

• The Adjusted Total Price is:

$6.938 Adjusted Material (Cost Allocation 75%) $1.498 Freight (Cost Allocation 15%) $0.999 Overhead (Cost Allocation 10%) $9.435 Adjusted Total Price

Series ID Year Period Label Value PCU32611132611115 2024 M01 2024 Jan 183.77 PCU32611132611115 2024 M02 2024 Feb 184.287 PCU32611132611115 2024 M03 2024 Mar 185.08 PCU32611132611115 2024 M04 2024 Apr 185.639 PCU32611132611115 2024 M05 2024 May 184.509 PCU32611132611115 2024 M06 2024 Jun 185.207 PCU32611132611115 2024 M07 2024 Jul 185.034 PCU32611132611115 2024 M08 2024 Aug 182.962 PCU32611132611115 2024 M09 2024 Sep 184.606 PCU32611132611115 2024 M10 2024 Oct 182.915 PCU32611132611115 2024 M11 2024 Nov 173.691 PCU32611132611115 2024 M12 2024 Dec 171.755 PCU32611132611115 2025 M01 2025 Jan 172.113 PCU32611132611115 2025 M02 2025 Feb 170.633