Modification Question RFP 1214 - Response.docx

This is a Modification and Exception Form response submitted by a bidder for RFP 1214 regarding an Idahoana Public Television Transmission Encoder System procurement. The document addresses the contractor's concerns regarding the milestone-based payment schedule outlined in Exhibit 2, Section 8 of the RFP. The bidder proposed a revised two-phase payment structure to address cash flow constraints associated with procuring manufacturer-supplied hardware, software licenses, and related equipment costs that must be paid in advance of system commissioning.

The contractor requested modification of the payment terms to provide 70% payment upon equipment delivery and verification against the approved bill of materials, with the remaining 30% payment due upon successful commissioning, system acceptance by Idaho Public Television, completion of training, implementation of the service and maintenance agreement, and thirty days of successful production operation. However, the State of Idaho rejected this proposed modification, and Exhibit 2, Section 8 will remain as written in the original RFP Administrative Document, requiring the contractor to defer substantially all equipment cost payments until commissioning and system acceptance are completed.