ITC83 - Request for Response.pdf

COMMONWEALTH OF MASSACHUSETTS

OPERATIONAL SERVICES DIVISION

Request for Response (RFR)

Document Title: IT Asset Lease Services

Agency Document Number: ITC83

COMMBUYS Bid#: BD-23-1080-OSD03-OSD03-88571

June 9, 2023

Please Note: This is a single document associated with a complete Bid (also referred to as Solicitation) that can be found on www.COMMBUYS.com. Bidders are responsible for reviewing and complying with all Bid requirements. Bidders may contact the OSD Help Desk at OSDHelpdesk@mass.gov or at 1-888-MA-STATE for technical assistance with COMMBUYS. The Help Desk is staffed from 8:00 AM to 5:00 PM Monday through Friday Eastern time, as applicable, except on federal and state holidays.

Bidders with disabilities or hardships that seek reasonable accommodation, which may include the receipt of RFR information in an alternative format, must communicate such requests in writing to the contact person. Requests for accommodation will be addressed on a case-by-case basis. A Bidder requesting accommodation must submit a written statement which describes the Bidder’s disability and the requested accommodation to the contact person for the RFR. The SST reserves the right to reject unreasonable requests.

https://www.sec.state.ma.us/cis/cishol/holidx.htm https://www.sec.state.ma.us/cis/cishol/holidx.htm

REQUEST FOR RESPONSE ITC83: IT Asset Lease Services Revision History

Version Number

Date Author Brief Description

1.0 June 9, 2023 A. Ferdinand Initial release

REQUEST FOR RESPONSE: ITC83 IT Asset Lease Services

Table of Contents Page i

1 INTRODUCTION AND BID OVERVIEW

1.1 SUMMARY DESCRIPTION OF PROCUREMENT

1.2 ESTIMATED PROCUREMENT CALENDAR

1.2.1 SUBMISSION OF BID QUESTIONS

1.2.2 BID AMENDMENT DEADLINE

1.2.3 LATE BIDS WILL NOT BE CONSIDERED

1.2.4 DEBRIEFING

1.3 ADDITIONAL BID INFORMATION

1.3.1 ANTICIPATED CONTRACT DURATION:

1.3.2 PERFORMANCE AND PAYMENT TIME FRAMES WHICH EXCEED CONTRACT DURATION

1.3.3 ESTIMATED VALUE OF THE CONTRACT

1.3.4 ESTIMATED NUMBER OF AWARDS

1.3.5 ADDING CONTRACTORS AFTER INITIAL CONTRACT AWARD

1.3.6 ACQUISITION METHOD(S):

1.3.7 ENTITIES ELIGIBLE TO USE THE RESULTING CONTRACT

2 ADDITIONAL INFROMATION ON PROCUREMENT SCOPE

2.1 PROCUREMENT EXCLUSIONS

3 BIDDER QUALIFICATIONS

3.1 COMPANY EXPERIENCE

3.2 BUSINESS PROFILE

3.3 FINANCIAL STABILITY INCLUDING BANKRUPTCY, LITIGATION, AND CONTRACT DEFAULTS

3.3.1 BANKRUPTCY, LITIGATION, AND CONTRACT DEFAULTS

3.3.2 CAPACITY

3.3.3 INTENT TO ASSIGN LEASE SCHEDULES

3.4 REFERENCES AND REFERENCE INFORMATION AND/OR REQUIREMENTS

4 SERVICE, ENVIRONMENTAL, AND COST SPECIFICATIONS

4.1 SERVICE SPECIFICATIONS

4.1.1 ACCEPTANCE OF RFR TERMS AND GENERAL LEASE TERMS AND CONDITIONS

4.1.2 ELIGIBLE ASSETS

4.1.3 MAXIMUM LEASE TERM

4.1.4 LEASE RATE

4.2 PURCHASE PROHIBITION

4.3 PAYMENTS

4.4 RETURN OF LEASED ASSETS

4.5 STANDARD WARRANTY

4.6 DELIVERY TERMS

4.6.1 DELIVERY TIMEFRAME

4.7 INSTALLATION

4.8 INCOMPLETE, INCORRECT, OR DAMAGED ORDERS

4.9 RETURNS POLICY

Table of Contents Page ii

4.10 GEOGRAPHIC COVERAGE

4.11 ORDERING AND QUOTES

4.12 ENVIRONMENTAL SPECIFICATIONS

4.12.1 ENVIRONMENTAL BENEFIT CLAIMS/LABELING

4.12.2 REQUIRED ENVIRONMENTAL SPECIFICATIONS

4.12.3 APPLIANCE EFFICIENCY STANDARDS

4.12.4 ENVIRONMENTAL PRACTICES FORM

4.12.5 ENVIRONMENTAL PLAN

4.13 COMPENSATION STRUCTURE/PRICING

4.13.1 HIPAA: BUSINESS ASSOCIATE CONTRACTUAL OBLIGATIONS

4.13.2 PRICING: FEDERAL GOVERNMENT SERVICES ADMINISTRATION (GSA) OR VETERAN’S

ADMINISTRATION SUPPLY

4.13.3 SPECIAL DISCOUNT PRICING

4.13.4 PROMPT PAY DISCOUNT

5 SUPPLIER DIVERSITY PLAN (SDP)

6 EVALUATION CRITERIA

6.1 MANDATORY REQUIREMENTS

6.2 EVALUATION COMPONENTS

6.3 BEST VALUE SELECTION AND NEGOTIATION

7 INSTRUCTIONS FOR SUBMISSION OF RESPONSES

7.1 ELECTRONIC SIGNATURES

7.1.1 ACCEPTABLE FORMS OF SIGNATURE

7.2 LIMITS AND RESTRICTIONS

7.2.1 FILE FORMAT RESTRICTIONS

7.2.2 FILE NAMING CONVENTIONS

7.3 GENERAL QUOTE REQUIREMENTS, PROVISIONS, AND PROHIBITIONS

7.3.1 QUOTE CONTENT

7.3.2 NON-COLLUSION

7.3.3 MULTIPLE QUOTES

7.3.4 MINIMUM QUOTE DURATION

7.3.5 BIDDER’S CONTACT INFORMATION

7.3.6 OWNERSHIP OF SUBMITTED QUOTES

7.3.7 PROHIBITIONS

7.3.8 PUBLIC RECORDS LAW

7.3.9 REASONABLE ACCOMMODATION

8 REQUIREMENTS FOR DOING BUSINESS AFTER CONTRACT AWARD

8.1 REQUIRED FORMS

8.2 USE OF COMMBUYS

8.3 STATEWIDE CONTRACT VENDOR COMMUNICATIONS PROTOCOL

8.3.1 CHANGES TO CONTRACTOR’S INFORMATION

8.3.2 SINGLE POINT OF CONTACT

8.3.3 REPLACEMENT OF CONTRACTOR STAFF

Table of Contents Page iii

8.4 PERFORMANCE MEASURES

8.4.1 MINIMUM AMOUNT OF BUSINESS WITH THIS CONTRACT

8.4.2 FAILURE TO PERFORM CONTRACTUAL OBLIGATIONS

8.5 REPORTING REQUIREMENTS AND DUE DATES

8.5.1 REPORTING AND PAYMENT DUE DATES

8.5.2 QUARTERLY SALES, SUPPLIER DIVERSITY PROGRAM EXPENDITURE, AND ENVIRONMENTALLY

PREFERABLE PRODUCTS REPORT

8.5.3 STATEWIDE CONTRACT ADMINISTRATION QUARTERLY FEE PAYMENT AND REPORT

8.5.4 AUDIT

8.5.5 OTHER TERMS

8.5.6 AD HOC REPORTS

8.6 PAYMENT RELATED TERMS

8.6.1 BILL PAYMENT

8.6.2 LATE PAYMENT FEES

8.6.3 ELECTRONIC FUNDS TRANSFER (EFT)

8.6.4 CREDITWORTHINESS

8.6.5 TAX EXEMPTION

9 RFR APPENDICES

9.1 APPENDIX 1 – REQUIRED TERMS FOR ALL STATEWIDE RFRS

9.1.1 APPLICABLE PROCUREMENT LAW

9.1.2 GENERAL PROCUREMENT INFORMATION

9.1.3 TERMS AND REQUIREMENTS PERTAINING TO AWARDED STATEWIDE CONTRACTS

9.2 APPENDIX 2 – REQUIRED TERMS FOR ALL INFORMATION TECHNOLOGY STATEWIDE

RFRS

9.2.1 ENTERPRISE POLICY AND STANDARDS

9.3 APPENDIX 3 - INSTRUCTIONS FOR VENDORS RESPONDING TO BIDS ELECTRONICALLY

THROUGH COMMBUYS

10 GLOSSARY

RFR ITC83 COMMBUYS BID NUMBER BD-23-1080-OSD03-OSD03-88571 Page 1

1 INTRODUCTION AND BID OVERVIEW

1.1 Summary Description of Procurement

The Commonwealth of Massachusetts and the ITC83 IT Asset Lease Services Strategic Sourcing Team (SST) are soliciting Bidders for the acquisition of IT Asset leases for equipment (i.e., printers, copiers, servers, and laptops.

The resulting Contract will serve as the primary Statewide Contract used by Executive Agencies of the Commonwealth for the goods and services covered by the Contract. The resulting Contract will replace ITC70 Operational Term Lease Services. The Contract will also be available for use by other Eligible Entities.

Items to be leased under the contract resulting from this RFR include Information Technology Equipment, peripheral equipment, and other equipment authorized by the ITC83 Strategic Sourcing Team (SST) and the Operational Services Division. The resulting Statewide Contract for IT Asset Lease Services is not intended to be used to purchase equipment, rather it is intended only for term leasing of equipment. The Commonwealth has other Statewide Contracts for the outright purchase of equipment.

The new contract will no longer support software apart from the associated software with leasing IT equipment.

Software can be leased under the current software Statewide Contract, ITS75 – Software and Services. Awarded Bidders will now be responsible for the Statewide Contract 1% Contract Administration Fee.

1.2 Estimated Procurement Calendar

Action Date

Announcement of Intent to Procure May 12, 2023

Bid Release Date June 9, 2023

Bidders Conference There will be no pre-bid conference for ITC83. Bidders are encouraged to submit all questions via the COMMBUYS Q&A functionality. The deadline to submit question is 6/14/2023.

Deadline for submission of written questions through COMMBUYS “Bid Q&A”

June 14, 2023

Official answers for Bid Q&A published (Estimated)

June 16, 2023

Locate and Respond to Bids in

COMMBUYS

Dates and Times Available:

6/21/2023 – 1-2:30 pm 7/6/2023 – 1-2:30 pm

Training for Online Submission – Contractors that have not previously submitted electronic quotes via COMMBUYS are strongly encouraged to attend training

Online Webinar:

This interactive webcast provides instructions on several activities:

Locating and responding to bids;

Using the bid Q&A feature; Creating a quote response; Revising a Quote response. Access the webcast here.

https://attendee.gototraining.com/957t1/catalog/894414649161911296 https://attendee.gototraining.com/957t1/catalog/894414649161911296 https://www.screencast.com/t/GMJLKkilF12

RFR ITC83 COMMBUYS BID NUMBER BD-23-1080-OSD03-OSD03-88571 Page 2

Bid Amendment Deadline. Bid documents will not be amended after this date.

June 23, 2023

Deadline for Quotes/Bid Responses (“Bid Opening Date/Time” in COMMBUYS)

July 13, 2023, 2:00 PM Late bids will not be considered.

Notification of Apparent Successful Bidder(s) (Estimated)

July 27, 2023

Estimated Contract Start Date (actual start date will be the contract effective date, which is the date the contract is executed by the parties)

September 1, 2023

*See Appendix 3 "Training for Vendors Responding to Bids On COMMBUYS" for instructions on how to register for live webinar and additional trainings that may be helpful to prospective bidders.

Visit: https://www.mass.gov/doc/vendor-training-schedule/download for additional Instructor-Led Training and Webinar dates.

Times are Eastern Time (US), as displayed on the COMMBUYS system clock after logging in. If there is a conflict between the dates in this Procurement Calendar and dates in the Bid’s Header, the dates in the Bid’s Header on COMMBUYS shall prevail. Bidders are responsible for checking the Bid record, including Bid Q & A, on COMMBUYS for Procurement Calendar updates.

1.2.1 Submission of Bid Questions

The “Bid Q & A” function in COMMBUYS allows Bidders to ask written questions and receive written answers regarding this Bid. To locate the Bid Q & A, log into COMMBUYS, locate the Bid, acknowledge receipt of the Bid, and scroll down to the bottom of the Bid Header page. The “Bid Q & A” button allows Bidder’s access to the Bid Q & A page.

All questions must be submitted through the Bid Q & A page. Questions must be asked prior to the Deadline stated in the Estimated Procurement Calendar. The Strategic Sourcing Team (SST) reserves the right not to respond to late questions. Bidders are responsible for verifying that their questions are recorded in COMMBUYS and appear on the Bid Q & A page.

Questions submitted to the SST outside of COMMBUYS will not be answered.

Content entered must be suitable for public viewing. Bidders must not include inappropriate content, including but not limited to, information that could be considered personal, security sensitive, inflammatory, incorrect, or collusory. The SST reserves the right to edit or delete any inappropriate content.

All answers are final when posted. Any subsequent revisions to previously provided answers will be dated.

1.2.2 Bid Amendment Deadline

Although Bidders may submit quotes any time after the Bid Release Date and prior to the Bid Opening Date, Bidders should ensure that their quotes are based upon the final versions of the RFR and its attachments. Final versions of RFR and its attachments are available after the Bid Amendment Deadline date.

The SST reserves the right to make amendments to the Bid after initial publication. It is each Bidder’s responsibility to check COMMBUYS for any amendments, addenda or modifications to this Bid, and any Bid Q & A records related to this Bid. The SST and the Commonwealth accept no responsibility and will provide no accommodation to Bidders who submit a Quote based on an out-of-date Bid or on information received from a source other than COMMBUYS. At the SST’s discretion, the Bid Amendment Deadline may be extended. As https://www.mass.gov/doc/vendor-training-schedule/download

RFR ITC83 COMMBUYS BID NUMBER BD-23-1080-OSD03-OSD03-88571 Page 3 stated above, it is the responsibility of the bidder for checking the Bid record in COMMBUYS for revisions and updates.

1.2.3 Late Bids will not be Considered

Bid responses must be received in full by the bid opening date and time shown on COMMBUYS ("Bid Opening Date/Time", i.e., the Deadline for Quotes/Bid Responses). Proposals received after the deadline will be ineligible for consideration and deemed non-responsive. Each bidder must submit all required bid response forms electronically through COMMBUYS. When submitting a quote electronically through COMMBUYS, please allow sufficient time to complete any online forms and upload documents. If you are in the middle of uploading your proposal when the deadline is reached, the system will stop the process and you will be unable to submit your Quote. It is recommended that Quotes be submitted as far in advance as possible before the deadline to allow time to obtain assistance from the OSD Help Desk if needed.

1.2.4 Debriefing

The SST will conduct debriefings for unsuccessful Bidders, if requested within 14 calendar days of notification that your Quote has not been selected for an award. Debriefing guidelines will be provided in advance prior to the debriefing.

1.3 Additional Bid Information

1.3.1 Anticipated Contract Duration:

The term of this Contract is five years. The maximum possible contract duration is up to August 31, 2028.

1.3.2 Performance and payment time frames which exceed Contract duration All term leases, rentals, maintenance, or other agreements for services entered into during the duration of this Contract and whose performance and payment time frames extend beyond the duration of this Contract shall remain in effect for performance and payment purposes for a period of five (5) years after the end of this contract (limited to the time frame and services established per each written agreement). No written agreement shall extend more than five (5) years beyond the final termination date of this Statewide Contract. No new leases, rentals, maintenance, or other agreements for services may be executed after the Contract has expired. Any contractor entering new engagements with eligible entities after contract expiration will be subject to remedial measures, which may include but are not limited to mandatory point deduction for future bid submissions and suspension of other contracts with OSD.

1.3.3 Estimated Value of the Contract

The estimated value of purchase(s) resulting from this Bid is $40 million. The Commonwealth makes no guarantee that any lease agreements will be entered into from any Contract resulting from this Bid. Any estimates or past procurement volumes referenced in this Bid are included only for the convenience of Bidders and are not to be relied upon as any indication of future purchase levels.

This Estimated Value was derived by reviewing ITC70 Statewide Contract data from the sales reports to Commonwealth of Massachusetts eligible entities for the period FY2019-2022 and quarter of FY2023.

1.3.4 Estimated Number of Awards

The target maximum number of Contractors is 10. The SST may award more or fewer contracts, if it is in the best interests of the Commonwealth to do so.

1.3.5 Adding Contractors after initial Contract Award

If, over the life of the Contract, the SST determines that additional Contractors should be added to meet the requirements of the Commonwealth, these may first be drawn from qualified companies which responded to this Bid but were not awarded contracts and/or the Bid may be reopened to obtain additional Quotes.

1.3.6 Acquisition Method(s):

Check All

Applicable (“X”):

Category

Fee-For-Service Outright Purchase Rental (not to exceed 6 months) Term Lease

RFR ITC83 COMMBUYS BID NUMBER BD-23-1080-OSD03-OSD03-88571 Page 4

License Other:

1.3.7 Entities Eligible to Use the Resulting Contract

Any Contract(s) resulting from this Bid will be open for use by the following entities:

Cities, towns, districts, counties, and other political subdivisions

Executive, Legislative and Judicial Branches, including all Departments and elected offices therein

Independent public authorities, commissions, and quasi-public agencies

Local public libraries, public school districts and charter schools

Public hospitals owned by the Commonwealth

Public institutions of higher education

Public purchasing cooperatives

Non-profit organizations that are doing business with the Commonwealth;

Other states and territories with no prior approval by the State Purchasing Agent; and

Other entities when designated in writing by the State Purchasing Agent.

Each eligible entity is responsible for executing its own purchase orders and paying its own invoices for services acquired from this Contract. Contractors will be responsible for marketing their services to Commonwealth Agencies and other eligible entities.

2 ADDITIONAL INFROMATION ON PROCUREMENT SCOPE

2.1 Procurement Exclusions

Leases for vehicles and any other type of motorized equipment are prohibited under this contract. Software apart from the associated software with leasing IT equipment is prohibited under this contract. Leases for software can be procured under the current software Statewide Contract, ITS75 – Software and Services.

3 BIDDER QUALIFICATIONS

3.1 Company Experience

Bidders must have been in the business of providing Equipment Lease services for at least the consecutive calendar years of 20202-2023 prior to the Quote submission deadline (See RFR Section 1.2, Estimated Procurement Calendar).

In the case of companies formed fewer than three (3) years prior to this date via merger, acquisition or some other means, the SST may consider the experience of all companies involved in the merger or acquisition.

Bidders must have acted as an Equipment Lease Financier in at least three (3) IT Asset Term Lease Agreements with Local, State, or Federal Government entities during the three (3) years prior to the Bid Submission deadline.

Bidders must complete the Recent Experience tab in the ITC83 Bidders Response, listing relevant work performed within the last three years, the scope of the work, and the types of entities for whom the work was performed.

3.2 Business Profile

Bidders must provide a brief business profile, not to exceed one (1) page in length, outlining the Bidder's overall operations, qualifications and organizational capabilities related to performing the services as requirements of under the Statewide Contract. The business profile should outline the overall qualifications and experience relevant to Lease financing and should discuss how the performance of prior similar projects will enhance the performance of the Bidder. The business profile must be uploaded as an attachment to the Bidder’s COMMBUYS quote in response to this Bid.

https://www.mass.gov/service-details/non-profit-purchasing-programs

RFR ITC83 COMMBUYS BID NUMBER BD-23-1080-OSD03-OSD03-88571 Page 5

The business profile must:

State whether the firm is local, national, or international and the total number of professional employees

State the number of years the firm, under its present tax identification number (TIN/FEIN), has provided equipment lease financing.

State the location of the office(s) from which the work is to be managed and the location from which the work will be performed

State the total staff available for this Contract at the location from which the work is to be managed

Describe the Bidder’s financial stability and capability to finance the broad range of equipment Lease Services needs across the Commonwealth

Identify any Subcontractors the Bidder intends to utilize in the performance of this contract, if awarded. Note:

No subcontractors may use underwriters.

3.3 Financial stability including bankruptcy, litigation, and contract defaults Bidders are required to submit, as a part of this RFR submission, a certification from the Commonwealth of Massachusetts’ Department of Revenue which indicates that the Bidder is compliant with their fiscal obligations.

Bidder are required to submit, as a part of this RFR submission, a certificate of good standing from the Secretary of State’s Office.

3.3.1 Bankruptcy, litigation, and contract defaults

Bidders must provide a list of any outstanding contingencies, such as lawsuits or other claims or charges, against the Bidder related to performance of the services sought under this RFR. The Commonwealth may choose not to award contracts to Bidders that have entered into bankruptcy during the three-year period prior to the RFR submission deadline (See RFR Section 1.2, Estimated Procurement Calendar).

Bidders must provide:

a list of all criminal convictions within the last three years relating to the Bidder, any officer, director, partner or member thereof, any affiliate or any related entity.

A list of all actions occurring within the last three years which have resulted in revocation or suspension of any permit or authority to do business in any jurisdiction relating to the submitting entity, any officer, director, partner or member thereof, any affiliate or any related entity.

A list of all actions occurring within the last three years that have resulted in the barring from public bidding relating to the Bidder, an officer, director, partner or member thereof, any affiliate or any related entity.

Failure to identify such contingencies as part of a Response will be considered sufficient cause for immediate termination from the Statewide Contract if such information is discovered during the life of the Contract.

In addition, Bidders must provide a description, in detail, of any situation in which the Bidder’s firm (either alone or as part of a joint venture), or a subsidiary of the Bidder’s firm, defaulted or was deemed to be in noncompliance of any material contractual obligations, explaining the situation, its outcome and all other relevant facts associated with the event.

Contingencies and defaults must be uploaded as an attachment to the Bidder’s COMMBUYS quote in response to this Bid.

3.3.2 Capacity

The minimum dollar amount of Equipment Lease Financing that a Bidder must be willing to provide pursuant to this Statewide Contract is $2 million for each year of the life of the contract, including extensions.

3.3.3 Intent to Assign Lease Schedules

The Statewide IT Asset Lease Services Contract is executed with approved vendors not only to provide financing but to provide a full suite of related financing services through the life of a lease. It is expected that to the full extent possible and financially practicable, the Statewide IT Asset Lease Services Financing Vendor will provide

RFR ITC83 COMMBUYS BID NUMBER BD-23-1080-OSD03-OSD03-88571 Page 6 both the initial lease financing for any Lease Schedule and manage receipt of payments through the life of the lease and not assign any interest in payments or in potential title rights of Lease Schedules to a third party.

The assignment or transfer of Lease Schedules to third parties must be limited to exceptional circumstances and not a routine business function of selling off Lease Schedules under the Statewide Contract once established.

The Commonwealth has an expectation that it will maintain an ongoing relationship with the approved Lease Services Vendors/Lessors for the life of each Lease Schedule and not be subjected to bi-furcating this relationship among other non-procured or non-approved Lease Services Financing Vendors/Lessors. This preference will carry a significant weight in the evaluation and selection process.

Bidders must identify their plan to either retain Lease schedules for the duration of the schedule, or to assign Lease schedules and payments and the criteria used to make these determinations. Note that if the Bidder chooses to assign their lease, they are allowed only one assignee.

3.4 References and reference information and/or requirements

Bidders must complete the Recent Experience tab in the ITC83 Bidders Response, listing relevant work performed within the last three years, the scope of the work and the types of entities for whom the work was performed.

4 SERVICE, ENVIRONMENTAL, AND COST SPECIFICATIONS

4.1 Service Specifications

4.1.1 Acceptance of RFR Terms and General Lease Terms and Conditions

Bidders responding to this RFR understand and agree that the General Lease Terms and Conditions will apply to all selected Vendors and will not be negotiated with individual Vendors to include vendor specific terms. The General Lease Terms and Conditions have been drafted to address language requested by interested Bidders and the unique characteristics of government contracts. It is intended that there will be no protracted negotiation on these terms with any Bidders selected for award. Therefore, Bidders' responses to this RFR may not condition the submission of their response on the Commonwealth's acceptance of additional or different submitted terms. Any exceptions or changes made by Bidders to any of the RFR terms may result in reduction in their evaluation score and may subject their bid response to a delay in evaluation and/or disqualification.

See Attachment I: ITC83 General Lease Terms and Conditions, which are incorporated by reference into this RFR.

Please note that the SST and Eligible Entities/Lessees that use the final contract that results from this Solicitation process will NOT be executing any vendor documents, nor will we be modifying terms to match vendor documents.

The RFR, General Lease Terms and Conditions, and other attachments are designed to meet the terms and needs of the Commonwealth and all Vendors, and therefore need to apply to more than one vendor.

Bidders must agree to accept the use of the ITC83 Lease Quote Form (Attachment II) and the ITC83 Equipment Listing, Acceptance Certification, Essential Use Certification, and Certification of Appropriation Form (Attachment III) in order to process transactions under the resulting contract as described in this RFR and Attachment I: General Lease Terms and Conditions.

4.1.2 Eligible Assets

Assets eligible for IT Asset Lease Services financing under this Contract include computing equipment, such as desktop and laptop computers, servers, and storage devices; networking and telecommunications equipment;

dedicated devices such as database servers; peripherals; copiers and multifunction devices; and other IT assets authorized by the IT Asset Lease Services SST and the Operational Services Division (OSD).

4.1.3 Maximum Lease Term

The maximum duration for a Lease under this contract is limited to five (5) years from the date of installation.

The maximum present value of the payments for a Lease under this contract is limited to 90 percent (90%) of the fair market value of the asset.

RFR ITC83 COMMBUYS BID NUMBER BD-23-1080-OSD03-OSD03-88571 Page 7

4.1.4 Lease Rate

The Lease rate will be fixed for each Lease for the duration of the Lease. Variable Lease rates may not be used for any Lease under this contract.

4.2 Purchase Prohibition

All Leased Assets are expected to be returned to the IT Asset Lease Services Vendor at the termination of the Lease. Leases may not include any options for purchase, upgrade, buyout, Fair Market Value Lease Purchase, or transfer of title during the Lease Term. Lease Purchase is prohibited under this Contract, even if requested by an Eligible Entity. Purchase of the asset(s) may be negotiated separate and apart from the Lease AFTER the termination of the Lease and settlement of all Lease payments as a transaction subject to applicable procurement regulations and policies.

4.3 Payments

Lease Payments will be made in accordance with the payment schedules outlined in the Lease Schedule and must not be more frequent than once monthly or less frequent than once annually. Eligible Entities and Contractors may negotiate a progressive payment schedule with larger payments during the beginning of a Lease and lesser payments at the end of a Lease.

Balloon payments, which have smaller payments at the beginning of a Lease and larger payments at the end of a Lease, are prohibited.

If the IT asset is accepted after the fixed rate date (30 days or other specified period) in the Lease Schedule, the Contractor must provide the Eligible Entity with a new schedule of payments based on a new Lease rate, if applicable.

4.4 Return of Leased Assets

Unless otherwise agreed, de-installation of the Asset(s) is the responsibility of the Eligible Entity (Lessee). It is the Lessee's responsibility to remove any data from the leased devices prior to return. The Contractor (Lessor) will be responsible for packaging and pick up of the Assets and must notify the Eligible Entity (Lessee) in writing 90 days prior to the asset(s) pickup. Assets must be picked up by the contractor within thirty (30) days of the end of the lease unless otherwise agreed by the parties in writing. Lessor failing to pick up the asset by the deadline may be charged moving and/or storage fees.

The Eligible Entity (Lessee) will allow the Contractor (Lessor) access to the leased asset(s) for pickup.

4.5 Standard Warranty

Bidders must guarantee the equipment offered by equipment vendors comes with at least a standard one (1) year warranty from the original equipment manufacturer (OEM) that is valid in the United States. Equipment furnished under the terms of this contract shall be guaranteed against faulty material and workmanship. A standard warranty shall include all expenses including parts, labor, and travel. Contractor must confirm the standard warranty is available when responding in the ITC83 Bidders Response Form.

4.6 Delivery Terms

Delivery must be F.O.B. destination with no delivery or travel expenses paid by the Eligible Entity with the exception of Deliveries to Dukes and Nantucket Counties. Contractor must deliver all purchases or initiate installation within thirty (30) business days after receipt of written order or at a time mutually agreed upon by the Eligible Entity.

Bidder is responsible for the delivery of products in first class condition at the point of delivery and in accordance with good commercial practice. Shipping cases must:

Show the name of the supplier Name and address of receiving customer Purchase order number Be properly labeled with the part number/stock number Quantity per box Any special designation requested by the Eligible Entity

RFR ITC83 COMMBUYS BID NUMBER BD-23-1080-OSD03-OSD03-88571 Page 8

Bidder must make delivery and have product available for delivery statewide. All deliveries shall be during regular working hours, usually 7:00 AM to 5:00 PM Eastern Standard Time (EST), Monday through Friday. The Contractor shall be responsible for all drop ship purchases and will coordinate with the Eligible Entity with regards to the drop ship delivery location.

Bidder shall notify the Eligible Entity at least 48 hours in advance of shipment and/or installation. The Eligible Entity will provide specific and timely authorization for each delivery. The Contractor may not proceed with delivery and installation until approval has been given to commence delivery and/or installation by the Eligible Entity.

Bidder must be responsible for all delivery, unloading, staging, storage and installation of equipment and/or supplies and removal of all packaging material from the premises in coordination with the Eligible Entities instructions. Delivery will be inside delivery to the ordering entities desired internal location unless directed otherwise by the Eligible Entity.

4.6.1 Delivery timeframe

Bidders must agree to deliver all equipment within 30 days of receipt of an order, unless otherwise agreed upon, in writing, by the Eligible Entity and Contractor.

4.7 Installation

All products/materials ordered by the Eligible Entities shall be specified as new or refurbished and delivered, installed, serviced, and ready for immediate use, unless otherwise requested by the purchasing department.

Liability for materials remains with the Awarded Contractor until properly installed in accordance with the purchasing department and Commonwealth Terms & Conditions.

4.8 Incomplete, Incorrect, or Damaged Orders

All products ordered by Eligible Entities must be delivered by the Contractor in new and unopened containers, or in a condition acceptable to the Eligible Entity. Damaged shipments will not be accepted. In the event that any order is accepted and then determined by the Eligible Entity to be incomplete, incorrect, or have damaged products, then the Contractor must correct the order to the satisfaction of the Eligible Entity. Contractor must cover all costs of correcting for an incomplete, incorrect, or damaged order. The Eligible Entity will not pay additional fees.

4.9 Returns Policy

Bidders must accept return of any defective commodities, or commodities which do not conform to those quoted, within thirty days of receipt of goods. Bidders must provide a means for the Eligible Entity to ship the materials without paying for shipment. Bidders must offer a return policy if allowed by manufacturer which allows Eligible Entities to return unopened commodities within thirty days of delivery, even if non-defective and conforming to those quoted, without restocking or other charges.

4.10 Geographic coverage

The Bidders must be able to provide services and related equipment throughout the Commonwealth of Massachusetts, either on their own or through the use of subcontractors. In the case in which service cannot be provided, the Bidder must describe, in respective Category Appendices, any areas where the proposed service cannot be provided. This description must include coverage maps as needed.

4.11 Ordering and Quotes

Responding to Buyer’s quote requests is a requirement of this contract. Contractors choosing not to bid must respond to COMMBUYS quote requests with a “no bid” by selecting the “Is No Bid” checkbox on the General tab of the quote.

Similarly, Contractors choosing not to bid on quote requests received outside of COMMBUYS must respond with a “no bid”.

Contractors must provide a quote that clearly identifies all commodities, materials, services and/or requirements which may incur costs for the Eligible Entity. All quotes must be for only products and/or services that Contractor is awarded to sell under this Statewide Contract. Furthermore, Contractors may not bill Eligible Entities for costs not identified in the quote, accepted by the SST, and agreed to by the Eligible Entity unless otherwise specified.

RFR ITC83 COMMBUYS BID NUMBER BD-23-1080-OSD03-OSD03-88571 Page 9

4.12 Environmental Specifications

In 2009, Executive Order 515, establishing an Environmental Purchasing Policy for Executive Departments, was signed. View the Environmentally Preferable Products (EPPs) Procurement Program General Information, Requirements and Guidance for detailed information about the program at https://www.mass.gov/doc/epp-general-information-requirements-and-guidance/download.

Bidders should also be aware that in 2021, Senate Bill 9 - An Act Creating a Next Generation Roadmap for Massachusetts Climate Policy was signed to achieve Net Zero emissions in 2050 and furthers the Commonwealth’s efforts to combat climate change and protect vulnerable communities. The full Act may be viewed at https://malegislature.gov/Bills/192/S9. In 2021, Executive Order 594, Leading By Example: Decarbonizing and Minimizing Environmental Impacts of State Government, was signed. EO594 requires all eligible state agencies to assess and implement strategies to mitigate greenhouse gas emissions and other environmental impacts when planning for and executing projects related to the design, construction, operations, and maintenance of state facilities, and the procurement of goods and services, including vehicles. View EO594: Leading By Example requirements at https://www.mass.gov/executive-orders/no-594-leading-by-example-decarbonizing-and-minimizing-environmental-impacts-of-state-government.

4.12.1 Environmental Benefit Claims/Labeling

Environmental benefit claims concerning products or services must be consistent with the Federal Trade Commissions’ Guides for the Use of Environmental Marketing Terms. Product environmental claims are to include the industry standard the product meets and certifier. Vendors must agree to offer and clearly label products with sustainability certifications and attributes, when available, within specific product categories. Documentation of the certification claimed by the vendor must be supplied upon request if it is not publicly available for verification (on either the vendor’s or certifier’s website).

Vendors claiming environmental benefits of their products shall list the appropriate benefits or industry standard it meets in the quarterly sales reports, if applicable, or on separate annual reports.

4.12.2 Required Environmental Specifications

A number of environmental product or service specifications have been designated as either mandatory or desirable for the Product/Service category by the EPP Program through EO 515 and can be viewed in the Minimum Environmentally Preferable Products and Services Specifications Guide at https://www.mass.gov/files/documents/2016/09/wf/epp-specifications_0.xlsx. All statewide and executive department contracts are required to use these standards, unless otherwise noted in the RFR.

4.12.3 Appliance Efficiency Standards

Pursuant to G.L. c. 25B, the Department of Energy Resources (DOER) has adopted regulations at 225 CMR 9.00,https://www.mass.gov/regulations/225-CMR-900-appliance-energy-efficiency-standards-testing-and-certification-program, for testing the energy efficiency of certain appliance and lamps therein. Products covered by this regulation may not be shipped for sale in Massachusetts unless they have been certified by the DOER.

Covered manufacturers must certify Covered Products to DOER in the Northeast Energy Efficiency Partnerships State Appliance Standards Database which can be found at https://neep.org/SASD. Products not certified are prohibited under this contract.

4.12.4 Environmental Practices Form

Bidders must complete this form, located in the Bidders Response Form, and submit it with their Quote. The form allows Bidders to communicate existing business practices that foster a sustainable approach to conducting their operations and reduce environment or public health impacts. Bidders may receive additional points in the evaluation phase of the RFR for the environmental initiatives they identify, however, bidders must substantiate all answers to receive additional points.

4.12.5 Environmental plan

Awarded Bidders must agree to work with OSD and the SST to examine the feasibility of implementing an environmental plan throughout the life of the contract. Such a plan may include, but not be limited to, implementing energy initiatives, adopting, and implementing sustainability policies or third-party standards and/or certifications, or publicizing their environmental initiatives. The objective of this requirement is to actively encourage suppliers to incorporate sustainable practices throughout their business operations and further market such practices to Contract users. Bidders may include written proposals submitted as an attachment to their Quote detailing a commitment to action contingent upon receipt of a Contract award.

https://www.mass.gov/executive-orders/no-515-establishing-an-environmental-purchasing-policy https://www.mass.gov/doc/epp-general-information-requirements-and-guidance/download https://www.mass.gov/doc/epp-general-information-requirements-and-guidance/download https://malegislature.gov/Bills/192/S9 https://www.mass.gov/executive-orders/no-594-leading-by-example-decarbonizing-and-minimizing-environmental-impacts-of-state-government https://www.mass.gov/executive-orders/no-594-leading-by-example-decarbonizing-and-minimizing-environmental-impacts-of-state-government https://www.ftc.gov/news-events/media-resources/truth-advertising/green-guides https://www.ftc.gov/news-events/media-resources/truth-advertising/green-guides https://www.mass.gov/files/documents/2016/09/wf/epp-specifications_0.xlsx https://www.mass.gov/regulations/225-CMR-900-appliance-energy-efficiency-standards-testing-and-certification-program https://www.mass.gov/regulations/225-CMR-900-appliance-energy-efficiency-standards-testing-and-certification-program https://neep.org/SASD

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4.13 Compensation Structure/Pricing

Compensation will be based solely on the pricing submitted by the Bidder and accepted by the SST. Pricing must be submitted for all goods and services to be provided on this Statewide Contract. Pricing will be published on

COMMBUYS.

4.13.1 HIPAA: Business Associate Contractual Obligations

Bidders are notified that any Department meeting the definition of a Covered Entity under the Health Insurance Portability and Accountability Act of 1996 (HIPAA) will include in the RFR or RFQ and resulting contract sufficient language establishing the successful Bidder’s contractual obligations, if any, that the Department will require in order for the Department to comply with HIPAA and the privacy and security regulations promulgated thereunder (45 CFR Parts 160, 162, and 164) (the Privacy and Security Rules). For example, if the Department determines that the successful Bidder is a business associate performing functions or activities involving protected health information, as such terms are used in the Privacy and Security Rules, then the Department will include in the RFR and resulting contract a sufficient description of business associate’s contractual obligations regarding the privacy and security of the protected health information, as listed in 45 CFR 164.314 and 164.504 (e), including, but not limited to, the Bidder's obligation to: implement administrative, physical, and technical safeguards that reasonably and appropriately protect the confidentiality, integrity, and availability of the protected health information (in whatever form it is maintained or used, including verbal communications); provide individuals access to their records; and strictly limit use and disclosure of the protected health information for only those purposes approved by the department. Further, the Department reserves the right to add any requirement during the contract that it determines it must include in the contract in order for the department to comply with the Privacy and Security Rules.

The above information pertains to contracts with Departments which are entered into under the Statewide Contract.

This Bid itself does not fall under HIPAA.

4.13.2 Pricing: Federal Government Services Administration (GSA) or Veteran’s Administration Supply The Commonwealth reserves the right to request that the Contractor provide initial pricing schedules and periodic updates available under their GSA or other federal pricing contracts. In the absence of proprietary information being part of such contracts, compliance for submission of requested pricing information is expected within 30 days of any request. If the Contractor receives a GSA or Veteran’s Administration Supply contract at any time during the term of the Statewide Contract, the Contractor must notify the Commonwealth Contract Manager.

4.13.3 Special Discount Pricing

Statewide Contractors may be asked to offer (and are encouraged to make available) special discounted pricing opportunities to Eligible Entities within the terms of their Statewide Contract. Such price discounts may come in the form of periodic aggregate purchases by Eligible Entities, whereby such entities will request further discounted prices from the Contractor(s) for guaranteed quantities to be purchased. The Statewide Contractor must report to the Contract Manager prior to any such price reductions or discounts, or other more favorable terms, being offered to any Eligible Entity beyond those in their Statewide Contract. The Contract Manager reserves the right to approve all price adjustments.

4.13.4 Prompt Pay Discount

All Bidders must agree to offer discounts through participation in the Commonwealth Prompt Payment Discount (PPD) initiative for receiving early and/or on-time payments, unless the Bidder can provide compelling proof that it would be unduly burdensome. Burden example being management and tracking burden

Bidders must submit agreeable terms on the Prompt Payment Discount Form, included on the Bid, unless otherwise specified by the SST. The SST will review, negotiate, or reject the offering as deemed in the best interest of the Commonwealth.

The requirement to offer a PPD may be waived by the SST on a case-by-case basis if participation in the program would be unduly burdensome on the Bidder. If a Bidder is claiming that this requirement is a hardship or unduly burdensome, the specific reason must be documented in the Bidder’s Quote.

5 SUPPLIER DIVERSITY PLAN (SDP)

Program Background. Pursuant to Executive Order 599, the Commonwealth’s Supplier Diversity Program (SDP) promotes business-to-business relationships between awarded Contractors and diverse businesses and non-profit https://www.mass.gov/executive-orders/no-599-reaffirming-programs-to-ensure-diversity-equity-and-inclusion-for-diverse-and-small-massachusetts-businesses-in-state-procurement-and-contracting https://www.mass.gov/sdp

RFR ITC83 COMMBUYS BID NUMBER BD-23-1080-OSD03-OSD03-88571 Page 11 organizations (“SDP Partners”) certified or recognized (see below for more information) by the Supplier Diversity Office (SDO).

All Bidders and Contractors are strongly encouraged to create a profile on the SDO’s Supplier Diversity Hub to access the Commonwealth’s supplier diversity resources and tools.

Financial Commitment Requirements. All Bidders responding to this solicitation are required to make a significant financial commitment (“SDP Commitment”) to partnering with one or more SDO-certified or recognized diverse business enterprise(s) or non-profit organization(s). This SDP Commitment must be expressed as a percentage of contract sales resulting from this solicitation that would be spent with the SDP Partner(s).

After contract award (if any), the Total SDP Commitment shall become a contractual requirement to be met annually on a Massachusetts fiscal year basis (July 1 – June 30) for the duration of the contract. The minimum acceptable Total SDP Commitment in response to this solicitation shall be 1%. Bidders shall be awarded additional evaluation points for higher SDP Commitments.

No contract shall be awarded to a Bidder without an SDP Commitment that meets the requirements stated herein.

This requirement extends to all Bidders regardless of their own supplier diversity certification.

Eligible SDP Partner Certification Categories SDP Partners must be business enterprises and/or non-profit organizations certified or recognized by the SDO in one or more of the following certification categories:

Minority-Owned Business Enterprise (MBE) Minority Non-Profit Organization (M/NPO) Women-Owned Business Enterprise (WBE) Women Non-Profit Organization (W/NPO) Veteran-Owned Business Enterprise (VBE) Service-Disabled Veteran-Owned Business Enterprise (SDVOBE) Disability-Owned Business Enterprise (DOBE) Lesbian, Gay, Bisexual, and Transgender Business Enterprise (LBGTBE)

Eligible Types of Business-to-Business Relationships. Bidders and Contractors may engage SDP Partners as follows:

Subcontracting, defined as a partnership in which the SDP partner is involved in the provision of products and/or services to the Commonwealth.

Ancillary Products and Services, defined as a business relationship in which the SDP partner provides products or services that are not directly related to the Contractor’s contract with the Commonwealth but may be related to the Contractor’s own operational needs.

Other types of business-to-business relationships are not acceptable under this contract. All provisions of this RFR applicable to subcontracting shall apply equally to the engagement of SDP Partners as subcontractors.

Program Flexibility. The SDP encompasses the following provisions to support Bidders in establishing and maintaining sustainable business-to-business relationships meeting their needs:

SDP Partners are not required to be subcontractors.

SDP Partners are not required to be Massachusetts-based businesses.

SDP Partners may be changed or added during the term of the contract, provided the Contractor continues to meet its SDP Commitment.

SDP Plan Form Requirements. All Bidders must complete the SDP Plan Form included in this solicitation and attach it to their bid response. In addition to proposing an SDP Commitment, each Bidder must propose one or more SDP Partner(s) to utilize to meet its SDP Commitment. Certified diverse Bidders may not list their own companies, their subsidiaries, or affiliates as SDP Partners and may not meet their SDP Commitment by spending funds internally or with their own subsidiaries or affiliates.

https://www.mass.gov/supplier-diversity-office https://www.mass.gov/supplier-diversity-office

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Bidders may propose SDP Partners that are:

Certified or recognized by the SDO: Such partners appear in the SDO Directory of Certified Businesses or in the SBA Veteran Small Business Certification (VetCert) directory. After contract award (if any), spending with such partners will contribute to meeting the Contractor’s SDP Commitment.

Not yet certified or recognized by the SDO: Such partners must be certified in eligible categories by a third-party certification body, such as another city or state supplier diversity certification office, the National Minority Supplier Development Council, the Women Business Enterprise National Council, Disability: IN, or the National LGBT Chamber of Commerce (NGLCC), but are not listed in the above-mentioned directories. Self-certification is not acceptable. While Bidders may list such proposed SDP Partners on their SDP Plans, spending with such partners will not contribute to meeting the Contractor’s SDP Commitment unless they apply for and are granted SDO supplier diversity certification or recognition. If proposed SDP Partners do not receive SDO supplier diversity certification or recognition, the Contractor must find alternative SDP Partners to meet the SDP Commitment.

It is the responsibility of the Contractor to ensure that their proposed SDP Partners obtain such certification or recognition by the SDO after contract award (if any). The issuing department and the SDO will not conduct outreach to proposed SDP Partners to ensure their certification. Furthermore, no guarantee may be made that a proposed SDP Partner will be certified, or regarding the time it may take to process a proposed SDP Partner certification.