RFP 21-2121 Schedule A - Scope of work.docx

STATE OF MICHIGAN

Request For Proposal No. 240000002121

DEPT. OF NATURAL RESOURCES

Forest Resources Division

Transportation of Vehicles and Large equipment – Nationwide

SCHEDULE A

STATEMENT OF WORK

CONTRACT ACTIVITIES

Transportation Contract – FRD Federal Excess Program

1) Background

a) The Michigan Department of Natural Resources (DNR) obtains large, heavy equipment, including bulldozers, front-end loaders, graders, dump trucks, 6x6 5-ton trucks and other firefighting equipment from Federal Military Installations Defense Reutilization Marketing Office (DRMO’s). The equipment is given to DNR free of charge for use on fire control/prevention, provided that the equipment is picked up within 2-7 days, as requested. This contract will be for the transportation of this equipment from any military base in the United States to one of three locations in Michigan.

2) Contract Activities

a) The DNR will request a quotation from the Contractor on a Work Order form (see Schedule C). Program manager will accept or decline quotation. Quotation request will contain pertinent information on the number, type, location and destination of the equipment to be transported, dates of expected delivery and an estimate of mileage of travel.

b) The Work Order is a confirmation and an approval to pick up indicated equipment in the timeframe required. This may be in electronic format to expedite the process.

c) From time to time, Work Order Amendments will occur, with the same general process as stated above: a revised Work Order must be issued stating all changes and must be signed by the DNR Project Manager before the work is changed from the original order.

d) The contractor must be able to transport a broad range of equipment as described above.

e) The contractor must be knowledgeable in loading and properly securing a wide variety of heavy equipment, trucks, and smaller equipment without assistance. Some equipment to be picked-up may not be operable.

f) The contractor must be able to accomplish pickups of equipment within allotted time frame anywhere in the continental United States. Pick-up could be required within as few as 2 calendar days’ notice or as many as 7 days.

g) Contractor must be able to pass security for entry onto Military bases to obtain equipment. Clearance will include a background check done by the military base, either in advance of arrival or at the gate at time of pick-up.

h) Driver must carry a valid CDL driver’s license at all times.

i) Contractor may be required to haul equipment in all types of weather conditions.

j) Equipment will be picked up and delivered within the time frame specified in the Work Order for each project. The delivered equipment shall be in the same condition it was in when Contractor took possession. The military base provides reports on equipment condition before pick-up. These will be verified at drop off location by DNR staff.

k) Delivery shall be made to the DNR warehouse in any of the following Michigan cities: Marquette, Gaylord or Haslett.

l) DNR Project Manager and Contractor will determine which transportation vehicle is to be used for pick-up. Should Contractor choose to use a transport vehicle which is larger than requested and necessary, payment will be made for the vehicle which would best suit the load. Contractor must make every effort to combine loads to be cost effective. Contractor must be willing to transport a partial load at a reduced cost. Refusal of a work order may result in liquidated damages for not fulfilling contract requirements or be cause for contract cancelation.

m) Contractor shall provide an adequate number of qualified, properly licensed employees for the prompt and satisfactory performance of the contract activities. Ordinarily, one person is sufficient to load, transport, and unload the equipment, however, it is the Contractor’s responsibility to understand the needs of each and every transport assignment.

n) The time between initial pick-up and final delivery shall not exceed thirty (30) days. Individual Work Orders will specify time window for that transportation assignment.

o) Contractor shall be responsible for the equipment while it is in transit or storage. Cargo insurance coverage is essential to this contract.

p) Unexpected changes to the approved and signed Work Order: Weather related delays, break-downs, or accidents shall be immediately reported to the Program Manager.

Bidder Response:

List all exception(s):

Bidder must describe how they comply with the above requirement(s):

3) Contractor Representatives

a) Routine Point of Contact

i) The Contractor’s point of contact: This person is specifically assigned to State of Michigan account, and will respond to State inquiries regarding the Contract Activities, answer questions related to ordering and delivery, etc. (the “Contractor Representative”). The Contractor appointed back-up: this individual shall respond in the event the Contractor Representative is unavailable.

ii) The Contractor appointed individual and appointed back-up, shall provide quotes, approve Work Orders and amendments to Work Orders, and notify the DNR Program Manager immediately if any unexpected delays or problems arise.

iii) The Contractor must notify the Contract Administrator at least three business days before removing or assigning a new Contractor Representative.

Bidder Response: Please Identify the Contractor’s point of contact and the appointed back up.

4) Project Management

a) Project Control

i) The Contractor will carry out this project under the direction and control of the DNR as per the signed Work Order. The Contractor Representative shall keep in regular and timely communication with the Program Manager or his/her designated appointee. At the minimum, the Contractor shall contact the Program Manager immediately upon pick-up on the equipment, and at the drop-off of the equipment. In the event of an emergency or unexpected delays, the Contract shall contact the Program Manager with enough details in order for him/her to give alternate instructions.

ii) The DNR Project Manager will send the Contractor a Work Order stating the request to provide services. The Contractor will quote the cost based on the DNR Project Manager’s request. The quote will be reviewed by the DNR Project Manager, if acceptable; the DNR Project Manager will sign the Work Order and return it to the Contractor. The signed Work Order will serve as the commitment from the State for work to be performed. No purchase orders will be issued against this contract.

iii) Project Plan: The Contractor shall submit a project plan detailing their process from start to finish upon being contracted by the DNR Project Manager (PM). Contractor should discuss availability of transportation vehicles, assessment of transportation details, security of equipment being loaded, travel plans, mileage tracker, timeliness of delivery, etc.

Bidder Response: Please describe your Project Plan:

5) Reports

a) Upon completion of each delivery, the contractor will provide DNR’s Project Manager (PM) with a brief written report if any issues or problems arose during the transportation. The report will explain the issue/problem and how it was resolved. This report shall be submitted with the invoice for each work order.

b) Contractor shall keep accurate records and reports detailing all transactions with the DNR for the life of the contract. These shall include, but are not limited to, the dates, times, locations, types of equipment delivered, personnel involved with the transportation, any subcontractors utilized, incident reports, etc.

6) Pricing

a) Pricing Structure The Contractor must provide the following on the Work Order as part of the quote – the price is firm and fixed once the Work Order is signed by the DNR Project Manager.

· Cost per mile based on pricing (Attachment A) or cost per load if under 500-mile trip.

· Cost for permits required for haul due to oversize/overweight. The Contractor will be directly reimbursed for actual costs incurred. Receipts MUST be provided with invoice in order to be reimbursed for expenses.

b) Price Term Pricing is firm for a 365-day period (“Pricing Period”). The first pricing period begins on the Effective Date of the executed contract. Adjustments may be requested, in writing, by either party and will take effect no earlier than the next Pricing Period.

c) Price Changes Adjustments will be based on changes in actual Contractor costs and evidence that the increase is similarly to that affecting the industry. Any request by the Contractor for a price increase must be supported by written evidence documenting the change in costs. The State may consider sources, such as the Consumer Price Index; Producer Price Index; other pricing indices as needed; economic and industry data; manufacturer or supplier letters noting the increase in pricing; and any other data the State deems relevant.

Following the presentation of supporting documentation, both parties will have 14 calendar days to review the information and prepare a written response. If the review reveals no need for modifications, pricing will remain unchanged unless mutually agreed to by the parties. If the review reveals that changes are needed, both parties will negotiate such changes, for no longer than 30 days, unless extended by mutual agreement.

The Contractor remains responsible for Contract Activities at the current price for all orders received before the mutual execution of a Change Notice indicating the start date of the new Pricing Period.

In the event new prices are not acceptable, the Contract may be cancelled.

Bidder Response:

List all exception(s):

Bidder must describe how they comply with the above requirement(s):

7) Invoicing and Payment

a) Invoice Requirements

i) Invoices must be submitted to the DNR, along with the delivery report, to the Program Manager for review and approval. The DNR has up to forty-five (45) days from the time the invoice was submitted for review and payment. All invoices submitted to the State shall include: date; location of pick-up, location of delivery, quantity and description of vehicles delivered, total number of miles delivered, any permit fees (including receipts) as per the Work Order, unit price per mile, total price, and final report of delivery.

b) Payment Method

i) The State will process payment by Direct Voucher using Electronic Funds Transfer (EFT). This contract will be alternate payment, meaning no Purchase Orders will be issued; the Work Order will serve as approval for work to be performed.

c) Criteria for Work Order Acceptance

i) Final Acceptance is when the equipment has been delivered according to the requirements set forth herein and by the due date specified in the Work Order. Any intermediate acceptance of sub-Deliverables does not complete the requirement of Final Acceptance. Equipment receipt will be acknowledged in writing by an authorized State of Michigan employee confirming vehicle condition and date and time of delivery.

Bidder Response:

List all exception(s):

Bidder must describe how they comply with the above requirement(s):

8) Liquidated Damages The parties agree that late or improper completion of the Contract Activities will cause loss and irreparable damage to the State that will be very difficult or impossible to quantify. Failure to timely meet delivery assignment requirements may result in the federal government giving the fire control/prevention equipment to another entity. Although the federal government provides the fire control/prevention equipment free of charge, the equipment has value to the State. The State refurbishes the equipment and sells it to local governments. It would be impossible or very difficult, however, to determine the actual damages sustained by the State under these circumstances because the value of each piece of equipment varies and the potential resale value is unknown at the time of contracting. Therefore, the parties agree that if there is late or improper completion of the Contract Activities which results in the State not receiving the equipment, the State is entitled to collect liquidated damages based upon the types of losses the State has suffered. The parties agree that the liquidated damages specified below are intended as compensation and not a penalty, and constitute a reasonable estimate of the anticipated or actual harm that might arise from Contractor’s late or improper completion of the Contract Activities on a per incident basis:

· Small field equipment such as small trailers, generators, pumps, etc. - $5,000.00 for each incident

· Mixed load of equipment such as field equipment, and one or more pieces of larger equipment or vehicles - $10,000

· Earth moving equipment, and semi-tractors such as dozers, excavators, large trucks of all types, etc. - $15,000.

Bidder Response:

List all exception(s):

Bidder must describe how they comply with the above requirement(s):

9) Vendor Records and Certifications

Contractor must provide drivers’ names, whether they have the mandatory CDL driver’s license and in which state, their expiration dates, whether they have clean driving records, any certifications, and qualifications on all employees they intend to use on DNR projects. Vendor should identify where Contractor staff will be physically located during Contract performance.

10) Acceptance

Criteria for Work Order Acceptance The following criteria will be used by the State to determine Acceptance of the Services or Deliverables provided under the statement of work:

Final Acceptance is when the equipment has been delivered according to the requirements. Any intermediate acceptance of sub-deliverables does not complete the requirement of Final Acceptance. Equipment receipt will be acknowledged in writing by an authorized State of Michigan employee.

11) Staffing

The written proposal should indicate the competence of personnel whom the Bidder intends to assign to the project as specified Section 1.031. Qualifications will be measured by education or experience, with particular reference to experience on projects similar to that described in the RFP. For all personnel identified in Section 1.031, Bidder must provide work histories of employees or proposed sub-contractors who will be directly involved with the contract activities. Resumes or histories much be in sufficient detail such that the Dept. of Natural Resources is able to determine relevant experience of proposed staff.

Bidder Response: Bidder to provide work histories or resumes.

12) Place of Performance-Prime Contractor

Bidders must provide the place of performance for work to be done by the prime Contractor under any resulting contract:

13) Disclosure of Subcontractors

· If the Contractor intends to utilize subcontractors, the Contractor must disclose the following:

· The legal business name; address; telephone number; a description of subcontractor’s organization and the services it will provide; and information concerning subcontractor’s ability to provide the Contract Activities.

· The relationship of the subcontractor to the Contractor. Of the total bid, the price of the subcontractor’s work. Whether the Contractor has a previous working experience with the subcontractor. If yes, provide the details of that previous relationship.

· A complete description of the Contract Activities that will be performed or provided by the subcontractor.

Bidder must provide detailed information as requested in the above requirement(s).

The legal business name, address, telephone number of the subcontractor(s).

A description of subcontractor’s organization and the services it will provide and information concerning subcontractor’s ability to provide the Contract Activities.

The relationship of the subcontractor to the Bidder.

If yes, provide the details of that previous relationship.

A complete description of the Contract Activities that will be performed or provided by the subcontractor.

Of the total bid, the price of the subcontractor’s work.

Bidder must provide information based on the work performed by all subcontractors

Total percentage of work that will be performed by subcontractors:

Total percentage of subcontracted work that will be performed by GDBE subcontractors: