ITB127- Attachment 10 - Key Monitoring Metrics.docx

ITB127

ATTACHMENT 10 – KEY MONITORING METRICS

Below is a list of requirements within the scope of the Contract that ITD will be monitoring. This is not an exhausted list; ITD will be monitoring all requirements and will take remedial action as necessary. The key metrics below have payments associated with them, thus are called out in this separate section.

Metric Description: All Equipment in compliance with the Contract Required Level of Expectation: 100% Compliance – meeting all minimum specifications, requirements, and terms and conditions of the Contract.

Method of Monitoring: ITD will monitor the Contractor’s performance by conducting Pilot Inspections, Monthly Inspections, and Final Delivery Inspections (see Section 5, below).

Strategy for Correcting Non-Compliance: If the Contractor does not meet the Required Level of Expectation, ITD’s CMT will notify the Contractor verbally during each inspection, and in writing via email, as further detailed in Section 5, below. This written notice will informally document the Discrepancy and require a written response from the Contractor addressing its corrective action. ITD’s CMT will escalate any continued non-compliance to the State’s CAT for a formal notice to include any Remedial Action described in Section 9, below.

Metric Description: Delivery of the Pilot to ITD Required Level of Expectation: 100% Compliance – sixty (60) calendar days after receipt of truck chassis Method of Monitoring: ITD will monitor the Contractor’s performance by conducting Monthly Progress Review Meetings (see Section 9, below).

Strategy for Correcting Non-Compliance: If the Contractor does not meet the Required Level of Expectation, ITD’s CMT will notify the Contractor verbally during the Monthly Progress Review Meeting, and in writing via email. This written notice will informally document the Discrepancy and require a written response from the Contractor addressing its corrective action. ITD’s CMT will escalate any continued non-compliance to the State’s CAT for a formal notice to include any Remedial Action described in Section 9, below.

Metric Description: Delivery of the Equipment (except Pilot) to ITD Required Level of Expectation: 100% Compliance – at a minimum, five (5) each per month, once lead-time is complete.

Method of Monitoring: ITD will monitor the Contractor’s performance by conducting Monthly Progress Review Meetings (see Section 9, below).

Strategy for Correcting Non-Compliance: If the Contractor does not meet the Required Level of Expectation, ITD’s CMT will notify the Contractor verbally during the Monthly Progress Review Meeting, and in writing via email. This written notice will informally document the Discrepancy and require a written response from the Contractor addressing its corrective action. ITD’s CMT will escalate any continued non-compliance to the State’s CAT for a formal notice to include any Remedial Action described in Section 9, below.

Metric Description: Providing training to ITD Required Level of Expectation: 100% Compliance – two (2) sessions per Order at ITD’s final destination point indicated on the Order.

Method of Monitoring: ITD will monitor the Contractor’s performance by attending each training session to ensure the requirements are met.

Strategy for Correcting Non-Compliance: If the Contractor does not meet the Required Level of Expectation, ITD’s CMT will notify the Contractor in writing via email. This written notice will informally document the Discrepancy and require a written response from the Contractor addressing its corrective action. Timeline for corrective action will be thirty (30) calendar days after receipt of notice from ITD’s CMT. ITD’s CMT will escalate any continued non-compliance to the State’s CAT for a formal notice to include any Remedial Action described in Section 9, below.

Monitoring Methodology Acceptance - ITD will determine acceptance of the Equipment by conducting a Pilot Inspection for the Pilot unit, and Monthly Inspections with a Final Delivery Inspection for all other units, per Order. This will determine if the Equipment provided is in compliance with the Contract. Failure of the Contractor to perform any of the requirements will be defined as a “Discrepancy(ies)”. Discrepancies include, but are not limited to:

Failure to comply with the requirements of the Contract Failure to comply with the specifications of the Contract Failure to comply with the terms and conditions of the Contract The Pilot Inspection:

The purpose of the Pilot Inspection is 1) to ensure the first unit built is in compliance with the Contract, 2) to identify Discrepancies early in the build process to avoid major overhaul at the end of the process, and 3) to provide an example unit to which all other units should be built.

The Pilot Inspection will consist of three (3) initial inspections and one (1) final assembly inspection, and any repeat inspections due to Discrepancies. Of the three (3) initial inspections, two (2) of them will occur at the manufacturer’s facility prior to delivery to the Contractor’s facility for final assembly. Only one (1) of the initial inspections will occur at the Contractor’s facility. The final assembly inspection will occur at the Contractor’s facility. The Contractor’s Contract Manager must be present for each inspection detailed below.

The initial inspections will consist of the following. The Contractor may elect to have ITD conduct additional inspections, at different points in the build process, beyond what’s listed below. Travel arrangements and cost will be the Contractor’s responsibility per Attachment 2, Section 3.

1.1.1 Build and install one (1) Hydraulic System and Snowplow Components (item 1). Build and stage one (1) passenger side eight (8) foot Extendable Truck Mounted Wing Plow (item 3).

1.1.2 ITD will conduct the initial inspection of this Equipment at the Contractor’s facility.

1.1.3 Build and stage the 10 CY Asphalt Dump Body (item 2).

1.1.4 ITD will conduct the initial inspection of this Equipment at the manufacturer’s facility.

1.1.5 Build and stage the 8 CY V-Box Spreader (item 6).

1.1.6 ITD will conduct the initial inspection of this Equipment at the manufacturer’s facility.

1.2 After completion of each initial inspection, ITD will send an email notice to the Contractor’s Contract Manager to 1) approve the Equipment as being compliant with the Contract, or 2) reject the Equipment and identify all Discrepancies that require corrective action.

1.3 The Contractor’s Contract Manager must confirm receipt of the notice. If the notice is of approval, the Contractor must proceed with the final assembly (including the Contractor’s pre-delivery inspection) of the Equipment. If the notice is of rejection, the Contractor must provide a written response explaining how and when each Discrepancy will be corrected. All Discrepancies must be corrected and brought into compliance with the Contract, for re-inspection by ITD, within thirty (30) calendar days after receipt of the notice from ITD. If the Contractor does not correct the Discrepancy within this timeframe, ITD reserves the right to take further remedial action as detailed below (see Section 9, below).

1.4 The final assembly inspection will consist of the following:

1.4.1 The fully installed and assembled Equipment: one (1) Hydraulic System and Snowplow Components, one (1) 10 CY Asphalt Dump Body, one (1) 8 CY V-Box Spreader, and one (1) passenger side eight (8) foot Extendable Truck Mounted Wing Plow.

1.4.2 ITD will conduct the final assembly inspection of the Equipment at the Contractor’s facility.

1.5 After completion of the assembly inspection, ITD will send an email notice to the Contractor’s Contract Manager to 1) approve the Equipment as being compliant with the Contract, or 2) reject the Equipment and identify all Discrepancies that require corrective action.

1.6 The Contractor’s Contract Manager must confirm receipt of the notice. If the notice is of approval, the Contractor may proceed with the delivery of the Equipment to ITD for the Final Delivery Inspection detailed below. If the notice is of rejection, the Contractor must provide a written response explaining how and when each Discrepancy will be corrected. All Discrepancies must be corrected and brought into compliance with the Contract, for re-inspection by ITD, within thirty (30) calendar days after receipt of the notice from ITD. If the Contractor does not correct the Discrepancy within this timeframe, ITD reserves the right to take further remedial action as detailed below (see Section 9, below).

1.7 The Monthly Inspections:

1.7.1 The purpose of the Monthly Inspection is 1) to ensure each group of units built (per the delivery schedule) are in compliance with the Contract, 2) to identify Discrepancies prior to delivery to ITD, and 3) to eliminate, as much as possible, repeat deliveries for failed inspections at the delivery location.

1.7.2 The Monthly Inspection will consist of one (1) inspection, with any repeat inspections due to Discrepancies, at the Contractor’s installation facility. The Contractor’s Contract Manager must be present for this inspection.

1.7.3 The completed Equipment will be inspected by ITD for compliance with the Contract. Following the inspection, ITD will send an email notice to the Contractor’s Contract Manager to 1) approve the Equipment as being compliant with the Contract, or 2) reject the Equipment and identify all Discrepancies that require corrective action.

1.7.4 The Contractor’s Contract Manager must confirm receipt of the notice. If the notice is of approval, the Contractor may proceed with the delivery of the Equipment to ITD. If the notice is of rejection, the Contractor must provide a written response explaining how and when each Discrepancy will be corrected. All Discrepancies must be corrected and brought into compliance with the Contract, for re-inspection by ITD, within thirty (30) calendar days after receipt of the notice from ITD. If the Contractor does not correct the Discrepancy within this timeframe, ITD reserves the right to take further remedial action as detailed below (see Section 9, below).

1.8 The Final Delivery Inspection

The purpose of the Final Delivery Inspection is 1) to ensure the Equipment is in compliance with the Contract, and 2) to identify Discrepancies that may have occurred after the onsite Pilot and Monthly Inspection, while the Equipment remained in the Contractor’s possession.

1.9 The Final Delivery Inspection will take place at each delivery location when the Contractor is required to deliver, or at the Contractor’s installation facility when ITD is required to pick up.

1.10 The completed Equipment will be inspected by ITD for compliance with the Contract. Following the inspection, ITD will send an email notice to the Contractor’s Contract Manager within ten (10) Business Days after receipt of each Equipment to: 1) accept the Equipment as being compliant with the Contract, or 2) reject the Equipment and identify all Discrepancies that require corrective action.

1.11 The Contractor’s Contract Manager must confirm receipt of the notice. If the notice is of acceptance, the Contractor may proceed with the invoicing procedures outlined in Section 9, below. If the notice is of rejection, the Contractor must 1) provide an email response acknowledging each Discrepancy, 2) pick up the Equipment from ITD, 3) correct all Discrepancies, and 4) delivery the Equipment back to ITD. All Discrepancies must be corrected, brought into compliance with the Contract, and re-delivered back to ITD’s delivery location within thirty (30) calendar days after receipt of the notice from ITD. If the Contractor does not correct the Discrepancy within this timeframe, ITD reserves the right to take further remedial action as detailed below (see Section 9, below).

1.12 Progress Review Meetings – The Contractor’s Contract Manager must attend a Progress Review Meeting located at ITD’s HQ facility (3311 West State Street, Boise, ID 83703), by conference call or Webex, one (1) time per month. This meeting will be used to review the progress of each Order by 1) reviewing the delivery schedule, 2) identifying potential risks and solutions to avoid or mitigate those risks, and 3) addressing any other questions or concerns.

1.13 Performance Review Meetings - ITD may require the Contractor’s Contract Manager to attend performance review meetings. These meetings are typically held when the Contractor continues to fail to meet the requirements of the Contract. This is a way for ITD and the Contractor to meet in person or over the phone (at ITD’s discretion) to discuss discrepancies together in a constructive environment. The Contractor’s attendance is mandatory when required by ITD and are at no additional cost to ITD when they are required.

Invoice & Payment Invoice – Invoices must be submitted as further detailed below. Invoices submitted prior to Acceptance, or without the required information listed below will be returned to the Contractor for correction and resubmission. Resubmitted invoices must be with a new invoice date, which will restart the timeline required for payment.

Invoices must be submitted as follows:

One (1) invoice per unit after acceptance by ITD.

Invoices must include the following information:

Contractor Company & Contact Information Contract Name & Number Order Number Invoice Number & Date Itemization of the Property provided and accepted to include, description matching the contract, quantity, unit of measure, unit price, extended price, and total invoice amount.

Invoice must be emailed to:

ITD’s CMT. ITD’s CMT will review each invoice and dispute with the Contractor, if needed, prior to forwarding to ITD’s accounts payable to process the payment.

Payment Payments for correctly submitted invoices will be made in accordance with IC 67-2302: (https://legislature.idaho.gov/statutesrules/idstat/title67/t67ch23/sect67-2302/)

Changes/Amendments Either party may, at any time by a written request, request changes to the Contract. The party requesting the change must complete the Change Request Form (see Attachment 7), providing all details for the change. The party receiving the Change Request Form must confirm receipt and provide feedback regarding any desired changes to the request.

If the Change Request consists solely of plan, timeline, schedule, or key personnel changes; or which otherwise acts to clarify the roles and responsibilities or modify the activities within the scope of the Contract, without an impact on cost, the ITD CMT is authorized to negotiate and execute the Change Request Form with the Contractor.

If the Change Request directly or indirectly increases the monetary obligations of the State, expands the scope of the Contract, changes contract requirements or terms and conditions or extends the Contract term, a formal Amendment will be issued by the State. The ITD CMT will submit the drafted Change Request Form to the Division of Purchasing (DOP) for review. Only the DOP is authorized to execute an Amendment on behalf of the State. An Amendment not executed in compliance with the section may be void pursuant to Idaho Code, Section 67-9213, and, may cause the entire Contract to be void.

Remedial Action In addition to any remedies available to the State under law or equity, the State may at its sole discretion require one (1) or more of the following remedial actions if any of the service does not conform to the Contract requirements: 1) require the Contractor to take corrective action to ensure that performance conforms to the Contract requirements, 2) require the Contractor to subcontract all or part of the Contract at no additional cost to the State, 3) withhold payment or require payment of actual damages caused by the Discrepancy, 4) terminate the Contract pursuant to Section 10, Termination, in addition to any remedies imposed by the State.

If ITD must perform or hire a separate contractor to perform any of the Contract’s requirements, which is the responsibility of the Contractor under the terms of the Contract, ITD may withhold the actual cost to ITD from the Contractor’s payment(s).

Termination For Cause - See Section 2, Termination, of the State of Idaho Standard Terms and Conditions.

For Fiscal Necessity – See Section 27, Termination for Fiscal Necessity, of the State of Idaho Standard Terms and Conditions.

For Convenience – Either party may terminate this Contract for its convenience at any time upon written notification provided with at least ninety (90) calendar days prior to the desired termination date. The Contractor’s sole obligation shall be to complete the delivery of any Orders placed prior to receiving (or providing) a written notice of termination. ITD’s sole responsibility shall be to pay for Orders placed prior to receiving (or providing) a written notice of termination that have been satisfactorily delivered and accepted.

Contract Closeout ITD’s CMT will initiate its contract closeout procedures when the following occur: 1) upon completion of the total Contract term, 2) either party requests to cancel the Contract within the required timeline, or 3) termination of the Contract for any reason. The closeout procedure will consist of ITD completing a closeout checklist to ensure all obligations have been fulfilled, all disputes are resolved, and all payments have been complete.

ITD’s CMT will provide an initial closeout letter to the Contractor with at least a thirty (30) calendar day advance notification. This notification will serve as a reminder that the contract is reaching it’s completion, giving an opportunity for the Contractor to return complete any outstanding Orders.

All Orders sent to the Contractor prior to the end of the Contract term (including Termination for Convenience), must be delivered, even if services are performed beyond the Contract term. Any Orders placed prior to the expiration will still be subject to the same terms and conditions applicable to the Contract at the time of expiration or termination.

Upon completion of the contract term, and after ITD confirms that all obligations have been met, all Orders have been delivered, disputes are resolved, and all payments are complete, ITD’s CMT will provide a final closeout letter confirming that the contract is complete and has been closed out. Copies of the letters will be provided to the Contractor and the State’s CAT for documentation and record keeping purposes.

1 | Page ITB127 Attachment 10 – Key Monitoring Metrics 10 CY Dump Bodies, Hydraulic System Install, V-Box Spreader, and Wing Plows