RFP 26-2354 Containerized Seedlings Schedule A - Statement of Work - Services Commodities.docx

Enter your company name Schedule A – Statement of Work

RFP 260000002354

Custom Grown Containerized Conifer Seedlings This schedule identifies the anticipated requirements of any Contract resulting from this RFP. The term “Contractor” in this document refers to a bidder responding to this RFP, as well as the Contractor who is awarded the contract. The term “bidder” is used to identify where specific responses to the RFP are required. Yellow fields are also used to identify areas where a bidder response is required.

The Contractor must respond to each requirement or question and explain how it will fulfill each requirement. Attach any supplemental information and reference it appropriately within your response.

Background The Michigan Department of Natural Resources manages over 4 million acres of forest lands for multiple uses, including timber production and wildlife habitat. On average, the DNR plants about 4 million red pine and 1.5 million jack pine seedlings per year on state and Federal land. Patterns indicate a potential increase in future red pine need and a decrease in future jack pine need. Hardwood species (and some lower- volume conifer species/stock sizes) are also planted by the DNR in relatively small quantities (e.g., totaling 5k – 40k annually).

Scope The winning contractor(s) will be responsible for producing containerized seedlings that meet the necessary seed upgrade/growing/delivery specifications outlined in this RFP to fulfill the Michigan DNR’s annual seedling order. The DNR will provide the seed in advance of delivery orders as needed. As such, the Contractor will not need to provide seed.

Mandatory Minimums Only Contractors with previous demonstrable experience growing stock types x volumes listed in Schedule B, Table 2 (high-volume 1-0 conifer) that have completed the Vendor Question Worksheet sections labeled “Previous High-Volume Growing Experience” will be considered for evaluation. Comment by Farinosi, Evan (DNR): What do you think Marcy? Jason? Comment by Farinosi, Evan (DNR): Make sure to include this information in the document we send to Procurement. Comment by Farinosi, Evan (DNR): Include some background information so that Procurement fully understand our ask.

General Requirements

4.1 Seed Upgrading

Increasing the germination rate of multiple conifer species for efficient seed usage via seed upgrading processes is a critical component of our planting program and is a requirement of the Contractor to either perform or subcontract (Schedule B, Table 1).

A. Requirements of the upgrade process:

· Using an upgrade process that has the demonstrated ability to produce a refined seed lot with a germination rate exceeding 97% for red pine and exceeding 85% for other listed conifer species.

4.2 Product Specifications

A. Container grown seedling requirements:

· 1-0 Conifer seedlings shall be grown in containers with cell volumes no smaller than 40 mL and no larger than 60mL, unless stated otherwise in the Schedule B (Tables 2,3). 2-0 Conifer seedlings shall be grown in 250 mL containers. Hardwood seedlings shall be grown in 125 mL containers (birch) or 250 mL containers (oak).

· A height range of 4 inches to 8 inches is preferred; however, seedlings meeting the minimum/maximum height requirements are acceptable.

· Minimum Height upon delivery: 4 inches (conifers), 6 inches (hardwoods)

· Maximum Height upon delivery: 12 inches (conifers), 16 inches (hardwoods)

· Seedlings shall have 1.8 mm (1-0 conifer), 3.0 mm (1-0 birch), 3.5 mm (2-0 conifer), or 4.0 mm (oak) minimum diameters at the root collar.

· Seedling root systems shall be fibrous and occupy the entire volume of the plug.

B. A “sowing fee” may be charged by the Contractor to cover initial costs of growing seedlings. The sowing fee must be included in the price of seedlings (per thousand) and Contractor must specify the percentage of the cost per thousand the sowing fee represents.

C. Seedlings must be graded and sorted.

D. Seedlings shall be held in cold storage from the time of extraction/lifting until delivery.

E. Upon delivery, seedlings shall be thawed (i.e., not frozen) but dormant (i.e., terminal buds shall be tight, with no signs of active growth).

F. Upon delivery, seedlings shall be healthy – alive, and free of any insects or disease.

G. Upon delivery, seedlings shall be free of all molds. Contractor should note if seedlings were treated with mycorrhizae fungi, so DNR will be aware of this during inspection.

Bidder Response

☐ I have reviewed the above requirement(s) and agree with no exceptions.

☐ I have reviewed the above requirement(s) and have noted any exceptions below.

Exceptions: List all exceptions here

Delivery Time Frame Seedlings for spring planting season must be delivered between April 1st and May 1st in coordination with the DNR. The first anticipated delivery under this contract will occur in spring 2028 (see section 16 for more details regarding Delivery).

Bidder Response

☐ I have reviewed the above requirement(s) and agree with no exceptions.

☐ I have reviewed the above requirement(s) and have noted any exceptions below.

Exceptions: List all exceptions here

Staffing

6.1 Contractor Representative

The Contractor must appoint one individual, specifically assigned to State of Michigan accounts, that will respond to State inquiries regarding the Contract Activities, answering questions related to ordering and delivery, etc. (the “Contractor Representative”).

Bidder Response

Response: Provide Contractor Representative Contact Information:

The Contractor must notify the Contract Administrator at least 3 business days before removing or assigning a new Contractor Representative.

Bidder Response

☐ I have reviewed the above requirement(s) and agree with no exceptions.

☐ I have reviewed the above requirement(s) and have noted any exceptions below.

Exceptions: List all exceptions here

6.2 Availability

The Contractor Representative must be available for calls during the hours of 8:00 am and 5:00 pm Eastern Time.

Bidder Response

☐ I have reviewed the above requirement(s) and agree with no exceptions.

☐ I have reviewed the above requirement(s) and have noted any exceptions below.

Exceptions: List all exceptions here

Quality Assurance Program Bidder Response

Explain your Quality Assurance Program(s).

Describe how you will comply with the requirement(s)

Project Plan The Contractor will carry out this project under the direction and control of the Program Manager.

Upon Contract Award: A final project plan must be submitted for final approval within 30 calendar days of the Effective Date. The plan must also include: (a) the Contractor's organizational chart with names and title of personnel assigned to the project, which must align with the staffing stated in accepted proposals; and (b) the project breakdown showing sub-projects, tasks, and resources required.

ADA Compliance The State is required to comply with the Americans with Disabilities Act of 1990 (ADA), including its accessibility standard for websites, applications, content and documents. All Contract Activities created, provided, or made available by Contractor under this Contract in a digital format, including but not limited to, websites, applications, software, mobile applications, text, images, sounds, videos, controls, animations, links, and documents (including files in the following formats: PDF, word processing, presentation, and spreadsheet) must comply with the accessibility standards provided in the Digital Accessibility Standards, located at SOM Digital Standards.

Key Personnel The Contractor must appoint a project team (or individual) who will be directly responsible for the day-to-day operations of the Contract. Key Personnel must be specifically assigned to the State account, be knowledgeable on the contractual requirements, and possesses the talent and expertise necessary to complete the Contract Activities.

Bidder Response

Names of Key Personnel:

Description of functions performed:

Organizational Chart Bidder Response

Provide an overall organizational chart that details staff members, by name and title, and subcontractors.

Add your org chart here or insert the label or filename if you are adding it as a separate attachment.

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.

Geographically Disadvantaged Business Enterprise Sub-Contractors: If contractors plan to utilize subcontractors to perform more than 20% of the deliverables under this contract, at least 20% of that subcontracted work must be awarded to Michigan-based Geographically Disadvantaged Business Enterprises (GDBE). Contractor will submit a plan detailing all subcontractors to be used, including the percentage of the work to be done by each. Contractor must inform the State to the name and address of the GDBE, the percentage of the work they will complete, the total amount estimated to be paid to the GDBE, and provide evidence for their qualifications as a GDBE. If contractor cannot find GDBE subcontractors to meet this requirement they must provide reasoning and justification to receive an exemption from this requirement from the State. (Existing business relationships will not be an approved reason for this.)

GDBE definition: "Geographically Disadvantaged Business Enterprise" also known as GDBE, is a Michigan-based business that satisfies one or more of the following: (i) Is certified as a Michigan HUBZone Small Business Concern by the United States Small Business Administration. (ii) Has a principal place of business located within a Qualified Opportunity Zone within Michigan. (iii) More than half of its employees either work at a secondary location or have a principal residence located within a Qualified Opportunity Zone within Michigan, or both.

Additional information on GDBEs can be found here:

DTMB - Geographically Disadvantaged Business Enterprise Required Subcontractor information. Bidders must complete the table below for each anticipated subcontractor. Copy the table as many times as needed for each subcontractor. Complete the second table with the percentage of work that will be completed by all subcontractors involved.

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.

Is the subcontractor a GDBE?

Whether the Bidder has a previous working experience with the subcontractor.

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.

Work performed by subcontractors

Total percentage of work that will be performed by subcontractors: Insert %

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

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

Bidder Response

☐ I have reviewed the above requirement(s) and agree with no exceptions.

☐ I have reviewed the above requirement(s) and have noted any exceptions below.

Exceptions: List all exceptions here

Price Changes Adjustments will be based on changes in actual Contractor costs. Any request 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 30 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.

Bidder Response

☐ I have reviewed the above requirement(s) and agree with no exceptions.

☐ I have reviewed the above requirement(s) and have noted any exceptions below.

Exceptions: List all exceptions here

Authorizing Document The appropriate authorizing document for the Contract will be a Delivery order. Orders for seedlings will typically be issued in December/January each year of the contract term. The DNR will work with the Contractor to issue a Delivery order prior to the Contractor’s deadline for sowing each crop of deliverable seedlings (i.e., one or more years in advance). Delivery of seedlings will be expected in approximately 14 months for spring planting after issuance of order.

Delivery Programs A. Seedlings must be extracted from containers and boxed (wax-lined) for shipping.

B. Seedlings must be thawed but dormant upon delivery.

C. Details of seedling delivery:

1) Shipping terms must be F.O.B. Destination. Reasonable costs associated with shipping, handling, and miscellaneous charges shall be reimbursed by the state following invoice submission.

2) Seedlings are typically delivered to four locations: 1) Grayling Field Office, 1955 S I-75 Business Loop, Grayling, MI 49738, 2) Gaylord Field Office, 1732 West M-32, Gaylord, MI 49735, 3) Newberry Field Office, 5666 State HWY M123, Newberry, MI 49868, and 4) Ishpeming Field Office, 1985 US-41, Ishpeming, MI 49849. However, the DNR reserves the right to require delivery to any accessible location within the State of Michigan.

3) Seedlings must be shipped in refrigerated trailers.

4) Refrigerated trailers must be staged for approximately two weeks at each DNR-provided delivery location. Reasonable costs associated with trailer rental and staging shall be reimbursed by the state following invoice submission.

Bidder Response

☐ I have reviewed the above requirement(s) and agree with no exceptions.

☐ I have reviewed the above requirement(s) and have noted any exceptions below.

Exceptions: List all exceptions here

Inspection The DNR will randomly inspect up to 10% of the boxes or containers in each shipment of seedlings using the criteria noted in the Specifications section above. Inspection will determine acceptance of shipment, if liquidated damages will be applied against the shipment, or if shipment is rejected.

Bidder Response

☐ I have reviewed the above requirement(s) and agree with no exceptions.

☐ I have reviewed the above requirement(s) and have noted any exceptions below.

Exceptions: List all exceptions here

Acceptance of Shipment Acceptance will occur if 90% or more of the seedlings inspected in the boxes or containers of each shipment of seedlings meet the criteria above.

Bidder Response

☐ I have reviewed the above requirement(s) and agree with no exceptions.

☐ I have reviewed the above requirement(s) and have noted any exceptions below.

Exceptions: List all exceptions here

Rejection of Shipment If more than 10% of the seedlings inspected in the boxes or containers in a shipment of seedlings fail to meet the Specifications above the DNR reserves the right to reject the entire shipment.

· If rejection occurs, DNR will load the seedlings back on the freight carrier/delivery truck for return to the Contractor. The DNR will not pay for the quantity in the rejected shipment. The Contractor is responsible for and must pay all costs of returning said goods, including handling, packing and transportation costs.

Bidder Response

☐ I have reviewed the above requirement(s) and agree with no exceptions.

☐ I have reviewed the above requirement(s) and have noted any exceptions below.

Exceptions: List all exceptions here

Invoice Requirements

· All invoices submitted to the State must include: (a) date; (b) purchase order number; (c) quantity; (d) description of the Contract Activities; (e) unit price; and (f) total price.

· The Contractor may charge a sowing fee for custom grown seedlings equal to 50% of the order value. The Contractor may invoice sowing fee upon receipt of DNR’s purchase order, using the stated quantity on the purchase order for calculating the amount due for the fee. For example, The Contractor’s quoted price is $100 per thousand and the quoted sowing fee is 50% of price. The DNR orders 200,000 seedlings on a purchase order. The Contractor may invoice $10,000 for sowing fee ($100 per thousand quoted price X 200,000 seedlings X 50% sowing fee).

· Invoices for the seedlings must be for the actual quantity shipped. If a sowing fee was charged for custom growing the seedlings, the invoice amount must be reduced by the sowing fee. For example, The Contractor’s quoted price is $100 per thousand and the quoted sowing fee is 50% of price. The DNR orders 200,000 seedlings on a purchase order, so the order is worth $20,000. The initial downpayment was $10,000. The actual quantity of seedlings shipped is 195,000, which is worth $19,500. The Contractor may invoice $9,500 upon seedling shipment.

· If the Contractor is unable to fulfill the order quantity for a given stock type such that the quantity falls below a price per thousand cost threshold, the invoice should reflect the price per thousand of the original order volume.

Bidder Response

☐ I have reviewed the above requirement(s) and agree with no exceptions.

☐ I have reviewed the above requirement(s) and have noted any exceptions below.

Exceptions: List all exceptions here

Payment Methods The State will make payment for Contract Activities using Electronic Funds Transfer(EFT).

Bidder Response

Explain your process for ordering and accepting this payment method. If an account needs to be created on your purchasing platform, please submit documentation that shows the steps for completing this process.

Explain your process.

Liquidated Damages If the Contractor is unable to provide the agreed upon volume of any given species due to acts of God, Contractor error, subcontractor error, or any other reason:

· The Contractor shall attempt to source seedlings from third-party seedling growers to fill the outstanding seedling order within one week of informing the State of missing order volume. If comparable seedlings are located, the Contractor shall provide these seedlings to the State at or below the agreed upon rate per thousand. If the third-party price per thousand is higher than the agreed upon rate, the Contractor shall be responsible for providing the additional funds needed to acquire the seedlings. The State must confirm the acceptability of any third-party seedlings prior to purchase by the Contractor.

· After accounting for any third-party sourced seedlings, the Contractor shall refund any pre-paid amounts associated with the undelivered seedlings, and no further payments tied to that seedling volume will be invoiced. The contractor shall then work with the DNR to create a plan to re-grow the lost volume in the next growing season.

· Additionally, the State reserves the right to collect liquidated damages over and above the seedling grow cost to help ameliorate internal costs (i.e., site preparation activities, market value of conifer seed, etc.) negatively affected by the missing seedling volume.

· Damages per thousand undelivered RP: $41.48

· Damages per thousand undelivered JP: $35.70

In the event seedling volumes can be met, but seedlings are not expected to meet standard specifications (i.e., not meeting minimum height/diameter thresholds, damage caused by improper cold storage conditions, extended post-thaw refrigeration times, improper packaging, damage during shipping, etc.), the contractor has two options:

1. Go through the process above (i.e., attempt to locate third-party seedlings, issue full refund for undelivered volume, pay DNR specified damages, work with DNR to regrow next growing season).

2. Work with MDNR to create a reimbursement plan for seedling, planting labor and planting oversight costs in the event outplanting failure occurs.

Bidder Response

☐ I have reviewed the above requirement(s) and agree with no exceptions.

☐ I have reviewed the above requirement(s) and have noted any exceptions below.

Exceptions: List all exceptions here

Enter your company name

RFP 260000002354

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