RFP 27DAS1012A.pdf

STATE OF ALASKA – REQUEST FOR PROPOSALS RFP 27DAS1012A

DPS Supply Warehouse Lease

STATE OF ALASKA

REQUEST FOR

PROPOSALS

OFFERORS ARE NOT REQUIRED TO RETURN THIS FORM.

IMPORTANT NOTICE: IF YOU RECEIVED THIS SOLICITATION FROM THE STATE OF ALASKA’S “ONLINE

PUBLIC NOTICE” WEB SITE, YOU MUST REGISTER WITH THE PROCUREMENT OFFICER LISTED IN THIS

DOCUMENT TO RECEIVE NOTIFICATION OF SUBSEQUENT AMENDMENTS. FAILURE TO CONTACT THE

PROCUREMENT OFFICER MAY RESULT IN THE REJECTION OF YOUR OFFER.

ISSUED BY:

DEPARTMENT OF PUBLIC SAFETY

DIVISION OF ADMINISTRATIVE SERVICES

PRIMARY CONTACT:

KELLY PAHLAU

PROCUREMENT OFFICER

KELLY.PAHLAU@ALASKA.GOV

(907) 269-8493

DPS SUPPLY WAREHOUSE LEASE

RFP 27DAS1012A

ISSUED OCTOBER 12, 2026

A WAREHOUSE SPACE IN ANCHORAGE, ALASKA FOR DEPARTMENT OF PUBLIC SAFETY’S SUPPLY

NEEDS

TABLE OF CONTENTS

SECTION 1. INTRODUCTION & INSTRUCTIONS

SEC. 1.01 PURPOSE OF THE RFP

SEC. 1.02 BUDGET

SEC. 1.03 DEADLINE FOR RECEIPT OF PROPOSALS

SEC. 1.04 REQUIRED REVIEW

SEC. 1.05 QUESTIONS PRIOR TO DEADLINE FOR RECEIPT OF PROPOSALS

SEC. 1.06 RETURN INSTRUCTIONS

SEC. 1.07 ASSISTANCE TO OFFERORS WITH A DISABILITY

SEC. 1.08 AMENDMENTS TO PROPOSALS

SEC. 1.09 AMENDMENTS TO THE RFP

SEC. 1.10 RFP SCHEDULE

SEC. 1.11 ALTERNATE PROPOSALS

SEC. 1.12 NEWS RELEASES

SECTION 2. LEASE PROVISIONS

SEC. 2.01 LEASE LOCATION

SEC. 2.02 DATE OF OCCUPANCY

SEC. 2.03 PRE-OCCUPANCY REQUIREMENTS

SEC. 2.04 PREPARATION FOR OCCUPANCY

SEC. 2.05 DELIVERY AND CONDITIONS OF PREMISES

SEC. 2.06 INITIAL TERM OF LEASE AND RENEWAL OPTIONS

SEC. 2.07 LEASE CONTRACT AND PROVISIONS

SEC. 2.08 ORDER OF PRECEDENCE

SEC. 2.09 RIGHT TO USE

SEC. 2.10 LEASE PAYMENTS

SEC. 2.11 CONTRACT PRICE ADJUSTMENTS

SEC. 2.12 LEASE AGREEMENT

SEC. 2.13 LEASE IS RECORDABLE

SEC. 2.14 COSTS TO BE BORNE BY THE LESSOR

SEC. 2.15 MOVING COSTS

SEC. 2.16 RENOVATION

SEC. 2.17 FIRE PREVENTION

SEC. 2.18 ACCIDENT HAZARD

SEC. 2.19 INTERRUPTION OF UTILITIES AND SERVICES

SEC. 2.20 MAINTENANCE AND REPAIR

SEC. 2.21 CASUALTY DAMAGE

SEC. 2.22 COMPLIANCE WITH LAWS

SEC. 2.23 TENANTABILITY

SEC. 2.24 OTHER MUTUALLY AGREED TERMS AND CONDITIONS

SEC. 2.25 FISCAL NECESSITY – NON-APPROPRIATION OF FUNDS

SEC. 2.26 LESSOR, LESSOR’S EMPLOYEES AND CONTRACTOR’S SECURITY REQUIREMENT

SEC. 2.27 STATE’S RESPONSIBILITIES

SEC. 2.28 INDEMNIFICATION

SEC. 2.29 INSURANCE REQUIREMENTS

SEC. 2.30 “HANDYMAN” STATUTE REQUIREMENTS

SEC. 2.31 TERMINATION FOR DEFAULT

SEC. 2.32 CONTRACT TYPE

SEC. 2.33 RIGHT TO INSPECT PLACE OF BUSINESS

SEC. 2.34 CONTRACT CHANGES - UNANTICIPATED AMENDMENTS

SEC. 2.35 NONDISCLOSURE AND CONFIDENTIALITY

SECTION 3. BUILDING REQUIREMENTS

SEC. 3.01 WAREHOUSE FACILITY

SEC. 3.02 TYPE OF BUILDING

SEC. 3.03 GENERAL REQUIREMENTS

SEC. 3.04 FLOOR COVERING

SEC. 3.05 PAINTING

SEC. 3.06 DOOR HARDWARE

SEC. 3.07 ELECTRICAL REQUIREMENTS

SEC. 3.08 MANUFACTURERS’ RECOMMENDATION REQUIREMENT

SEC. 3.09 ENVIRONMENTAL & LIFE/SAFETY

SEC. 3.10 HEATING

SEC. 3.11 VENTILATION

SEC. 3.12 PARKING

SECTION 4. PROPOSAL FORMAT AND CONTENT

SEC. 4.01 INTRODUCTION

SEC. 4.02 PROPOSAL CONTENTS

SEC. 4.03 OWNERSHIP & LEASE SPACE INFORMATION

SEC. 4.04 FACILITY CONDITION

SEC. 4.05 ENVIRONMENT, ACCESS, AND PROVISIONS

SEC. 4.06 WALKTHROUGH

SEC. 4.07 COST PROPOSAL

SECTION 5. EVALUATION CRITERIA AND CONTRACTOR SELECTION

SEC. 5.01 SUMMARY OF EVALUATION PROCESS

SEC. 5.02 EVALUATION CRITERIA

SEC. 5.03 EVALUATION OF PROPOSALS

SEC. 5.04 EVALUATION FACTORS

SEC. 5.05 SCORING METHOD AND CALCULATION

SEC. 5.06 OWNERSHIP AND LEASE SPACE INFORMATION (6 POINTS MAXIMUM)

SEC. 5.07 FACILITY CONDITION (10 POINTS MAXIMUM)

SEC. 5.08 ENVIRONMENT, ACCESS, AND PROVISIONS (17 POINTS MAXIMUM)

SEC. 5.09 WALKTHROUGH (17 POINTS MAXIMUM)

SEC. 5.10 CONTRACT COST (COST PROPOSAL – 40 POINTS MAXIMUM)

SEC. 5.11 APPLICATION OF PREFERENCES

SEC. 5.12 ALASKA BIDDER PREFERENCE

SEC. 5.13 ALASKA VETERAN PREFERENCE

SEC. 5.14 ALASKA OFFEROR PREFERENCE

SEC. 5.15 OFFEROR NOTIFICATION OF SELECTION

SECTION 6. GENERAL PROCESS AND LEGAL INFORMATION

SEC. 6.01 INFORMAL DEBRIEFING

SEC. 6.02 ALASKA BUSINESS LICENSE AND OTHER REQUIRED LICENSES

SEC. 6.03 STANDARD CONTRACT PROVISIONS

SEC. 6.04 QUALIFIED OFFERORS

SEC. 6.05 PROPOSAL AS PART OF THE LEASE

SEC. 6.06 ADDITIONAL TERMS AND CONDITIONS

SEC. 6.07 HUMAN TRAFFICKING

SEC. 6.08 RIGHT OF REJECTION

SEC. 6.09 STATE NOT RESPONSIBLE FOR PREPARATION COSTS

SEC. 6.10 DISCLOSURE OF PROPOSAL CONTENTS

SEC. 6.11 ASSIGNMENT

SEC. 6.12 DISPUTES

SEC. 6.13 SEVERABILITY

SEC. 6.14 SUPPLEMENTAL TERMS AND CONDITIONS

SEC. 6.15 SOLICITATION ADVERTISING

SEC. 6.16 SITE INSPECTION

SEC. 6.17 CLARIFICATION OF OFFERS

SEC. 6.18 DISCUSSIONS WITH OFFERORS

SEC. 6.19 CONTRACT NEGOTIATION

SEC. 6.20 FAILURE TO NEGOTIATE

SEC. 6.21 FEDERALLY IMPOSED TARIFFS

SEC. 6.22 PROTEST

SECTION 7. ATTACHMENTS

SEC. 7.01 ATTACHMENTS

SECTION 1. INTRODUCTION & INSTRUCTIONS

SEC. 1.01 PURPOSE OF THE RFP

The Department of Public Safety (DPS), Division of Administrative Services, is soliciting proposals to lease warehouse space in Anchorage, Alaska. A more detailed description is provided in Section 2. LEASE

PROVISIONS.

SEC. 1.02 BUDGET

Approval or continuation of a lease resulting from this RFP is contingent upon legislative appropriation.

SEC. 1.03 DEADLINE FOR RECEIPT OF PROPOSALS

Proposals must be received no later than 4:30 pm prevailing Alaska Time on November 2, 2026. Late proposals or amendments will be disqualified and not opened or accepted for evaluation.

SEC. 1.04 REQUIRED REVIEW

Offerors should carefully review this solicitation for defects and questionable or objectionable material.

Comments concerning defects and questionable or objectionable material should be made in writing and received by the procurement officer at least ten days before the deadline for receipt of proposals. This will allow time for the issuance of any necessary amendments. It will also help prevent the opening of a defective proposal and exposure of offeror's proposals upon which award could not be made.

SEC. 1.05 QUESTIONS PRIOR TO DEADLINE FOR RECEIPT OF PROPOSALS

All questions must be in writing and directed to the procurement officer. The interested party must confirm telephone conversations in writing.

Two types of questions generally arise. One may be answered by directing the questioner to a specific section of the RFP. These questions may be answered over the telephone. Other questions may be more complex and may require a written amendment to the RFP. The procurement officer will make that decision.

PROCUREMENT OFFICER: Kelly Pahlau – PHONE: (907) 269-8493 Email: kelly.pahlau@alaska.gov

SEC. 1.06 RETURN INSTRUCTIONS

Offerors must submit one electronic copy of their proposal via email to the procurement officer. The technical and cost proposal must be saved as separate PDF documents and emailed to DPS.DAS.Solicitations@alaska.gov as separate, clearly labeled attachments, such as “Vendor A – Technical Proposal.pdf” and “Vendor A – Cost Proposal.pdf” (Vendor A is the name of the offeror). The email must contain the RFP number in the subject line.

The maximum size of a single email (including all text and attachments) that can be received by the state is 20mb (megabytes). If the email containing the proposal exceeds this size, the proposal must be sent in multiple emails that are each less than 20 megabytes and each email must comply with the requirements described above.

Please note that email transmission is not instantaneous. Similar to sending a hard copy proposal, if you are emailing your proposal, the state recommends sending it enough ahead of time to ensure the email is delivered by the deadline for receipt of proposals.

It is the offeror’s responsibility to contact the issuing agency at 907.269.8493 to confirm that the proposal has been received. The state is not responsible for unreadable, corrupt, or missing attachments.

SEC. 1.07 ASSISTANCE TO OFFERORS WITH A DISABILITY

Offerors with a disability may receive accommodation regarding the means of communicating this RFP or participating in the procurement process. For more information, contact the procurement officer no later than ten days prior to the deadline for receipt of proposals.

SEC. 1.08 AMENDMENTS TO PROPOSALS

Amendments to or withdrawals of proposals will only be allowed if acceptable requests are received prior to the deadline that is set for receipt of proposals. No amendments or withdrawals will be accepted after the deadline unless they are in response to the state's request in accordance with 2 AAC 12.290.

SEC. 1.09 AMENDMENTS TO THE RFP

If an amendment is issued, it will be provided to all who were notified of the RFP and to those who have registered with the procurement officer after receiving the RFP from the State of Alaska Online Public Notice website.

mailto:DPS.DAS.Solicitations@alaska.gov

SEC. 1.10 RFP SCHEDULE

RFP schedule set out herein represents the state’s best estimate of the schedule that will be followed. If a component of this schedule, such as the deadline for receipt of proposals, is delayed, the rest of the schedule may be shifted accordingly. All times are Alaska Time.

ACTIVITY DATE

Issue Date / RFP Released October 12, 2026 Deadline for Receipt of Proposals / Proposal Due Date November 2, 2026 Walkthroughs The week of November 9, 2026 Proposal Evaluations Complete The week of November 9, 2026 Notice of Intent to Award The week of November 16, 2026 Lease Start January 1, 2026 unless otherwise negotiated

This RFP does not, by itself, obligate the state. The state's obligation will commence when the contract is approved by the Commissioner of the Department of Public Safety, or the Commissioner's designee. Upon written notice to the contractor, the state may set a different starting date for the contract. The state will not be responsible for any work done by the contractor, even work done in good faith, if it occurs prior to the contract start date set by the state.

SEC. 1.11 ALTERNATE PROPOSALS

Offerors may only submit one proposal for evaluation.

In accordance with 2 AAC 12.830 alternate proposals (proposals that offer something different than what is asked for) will be rejected.

SEC. 1.12 NEWS RELEASES

News releases related to this RFP will not be made without prior approval of the project director.

SECTION 2. LEASE PROVISIONS

SEC. 2.01 LEASE LOCATION

DPS is seeking proposals to lease warehouse space in Anchorage, Alaska that has approx. 10,000 square feet in an HVAC-controlled space. The warehouse space must include a minimum of four exterior vehicle parking spaces and access to a bathroom. The Department will need access to power outlets and space to receive freight shipments.

SEC. 2.02 DATE OF OCCUPANCY

Occupancy for unit is required No Later Than January 1, 2027. Any changes to the Date of Occupancy, including for build out of the secured storage area if required, must be agreed upon by both parties.

SEC. 2.03 PRE-OCCUPANCY REQUIREMENTS

The spaces shall be delivered ready for occupancy on the date required under the award of this lease. The term “ready for occupancy” requires the space to meet all the requirements of the proposal document and receive a Certificate of Occupancy (where applicable) from an appropriate building official. If the jurisdiction in which the premises are located does not provide a Certificate of Occupancy, the State may at its own discretion require an occupancy inspection in lieu of the Certificate of Occupancy. The state reserves the right to determine when the space is ready for occupancy. If new construction is offered, incremental completion, inspection and occupancy of units may be considered by the state with a commensurate adjustment to the lease.

SEC. 2.04 PREPARATION FOR OCCUPANCY

In preparing the space for occupancy under the lease resulting from this RFP, the Offeror and its contractors and subcontractors must comply with all applicable federal, state, and local regulations, codes, and laws;

and be liable for all required insurance, licenses, permits and bonds; and pay all applicable federal, state and local taxes. Offerors should contact the State of Alaska, Department of Labor, Wage and Hours Administration, 907-269-4900, for information regarding State wage rate requirements. In the absence of local regulations, State codes shall apply. Minimum requirements established in this RFP shall not be construed as lowering the standard established by local regulations, and when local regulations and codes contain more stringent provisions, they shall govern. The successful Offeror shall be responsible for obtaining all permits.

SEC. 2.05 DELIVERY AND CONDITIONS OF PREMISES

The term "ready for occupancy" requires the space to meet all the requirements of the RFP. Note: Lessor must comply with Section 2.03 PRE-OCCUPANCY REQUIREMENTS, (including delivery of required documents prior to acceptance and occupancy). The State reserves the right to determine when the space is ready for occupancy.

SEC. 2.06 INITIAL TERM OF LEASE AND RENEWAL OPTIONS

The length of the lease will be from the lease start date, January 1, 2027, for an initial five-year term, with five, one-year renewal options. The renewal options shall be exercised at the sole discretion of the State of Alaska, giving the Lessor written notice prior to the expiration of the term.

Unless otherwise provided in this RFP, the state and the successful Offeror/Lessor agree: (1) that any extension of the lease excluding any exercised renewal options, will be considered as a month-to-month extension, and all other terms and conditions shall remain in full force and effect and (2) the Procurement Officer will provide notice to the Lessor of the intent to cancel such month-to-month extension at least 30 days before the desired date of cancellation. A month-to-month extension may only be executed by the Procurement Officer via a written lease amendment.

SEC. 2.07 LEASE CONTRACT AND PROVISIONS

The Lessor shall be required to sign and submit a State of Alaska lease contract upon execution of the lease resulting from this RFP. The Lessor shall comply with the lease provisions set out in the State of Alaska lease contract, as amended from time to time. The lease agreement will be prepared by the state and will incorporate this RFP, including amendments, and is binding upon the lessor and the state and their respective agents and assignees. Compliance to all of this RFP is required prior to occupancy. No alteration of these provisions shall be permitted without prior written approval from the Procurement Officer.

Objections to any of the provisions in the State of Alaska lease contract must be set out in the offeror’s proposal.

SEC. 2.08 ORDER OF PRECEDENCE

The terms and conditions in this RFP, appendices, and amendments are made part of any lease contract resulting from this RFP. The order of precedence for the lease contract between the State of Alaska and Lessor is established by order of the following documents:

1. An amendment to the executed lease contract as provided in this RFP, with the more recent amendment taking precedence over a less recent amendment.

2. The State of Alaska lease contract.

3. The RFP.

4. The Lessor’s proposal.

The above numbered documents are, collectively, the “contract”. In the case of any conflict or inconsistency arising under the contract documents, a document identified with a lower number in this subsection shall supersede a higher numbered document to the extent necessary to resolve any such conflict or inconsistency. No conflict or inconsistency shall be deemed to occur in the event an issue is addressed in one of the above-mentioned contract documents but is not addressed in another of such documents.

Where terms and conditions specified in the Lessor’s proposal differ from the terms and conditions in lease contract documents 2 and 3, as identified above in Section 2.08 ORDER OF PRECEDENCE, the terms and conditions of documents 2 and 3 shall apply. Where terms and conditions specified in the Lessor’s proposal supplement the terms and conditions in lease contract documents 2 and 3, as identified above in section

2.08 ORDER OF PRECEDENCE, the supplemental terms and conditions shall apply only if specifically accepted by the Procurement Officer in writing.

SEC. 2.09 RIGHT TO USE

The State shall have the right to use said premises for warehouse space. The State shall not use said premises for any other use without the Lessor’s consent, which shall not be unreasonably withheld. The State reserves the right to establish and maintain its own hours of operation during the life of the lease and any renewals.

SEC. 2.10 LEASE PAYMENTS

No payment will be made until the contract is approved by the Commissioner of the Department of Public Safety or the Commissioner's designee. Under no conditions will the State be liable for the payment of any interest charges associated with the cost of the contract. The State is not responsible for and will not pay local, state, or federal taxes. All costs associated with the contract must be stated in U.S. currency.

Any single contract payment of $1 million or higher must be accepted by the contractor via Electronic Funds Transfer (EFT).

The lease payments shall be payable on or before the first day of each and every month of the lease term.

Payment for any partial month’s occupancy shall be pro-rated, based on a thirty-day month.

The State of Alaska has implemented the State of Alaska Payments Program using the Financial Electronic Data Interchange (EDI) process to enable the electronic transfer of payments directly to a Lessor’s bank account. The program is designed to transmit payments to Lessors more quickly and effectively and eliminates the possibility of lost/stolen warrants. The successful Offeror will be sent an EDI Authorization Agreement and information related to the process when this contract is awarded.

SEC. 2.11 CONTRACT PRICE ADJUSTMENTS

Contract prices will remain firm through December 31, 2027.

Adjustments in the lease rate may be made if requested in writing by the Lessor at least thirty days prior to the effective date of the adjustment. Request must be made annually only. Such adjustments may be made annually to reflect the changes in the Lessor's variable costs and defined as all operational cost other than debt service and profit. Operational costs, for purposes of the lease resulting from this RFP, are equal to thirty-five percent (35%) of the Base Monthly Lease Rate.

The monthly lease rate may be adjusted after one year from the date of occupancy and each year thereafter. If the date of occupancy is not the 1st day of the month, the adjustment will be effective the 1st day of the following month. Such adjustments will be made in accordance with the percentage change in the U.S. Department of Labor Consumer Price Index, for All Urban Consumers, All Items, (CPI-U) Anchorage Area, in effect for each January through June (1st Half).The percentage difference between the CPI in effect for the base year semiannual value, CPI-U Urban Alaska Index, (1st half 2026) and each CPI- U January through June (1st Half) average thereafter will determine the maximum allowable adjustment of the variable costs over the Base Monthly Lease Rate.

The Base Monthly Lease Rate is the MONTHLY COST shown on the attachment Cost Proposal.

The formula is expressed as:

[(35% x Base Monthly Lease Rate) x % change in CPI] + Base Monthly Lease Rate = Adjusted Monthly Lease Rate.

If the index is discontinued or revised during the term of the lease, such other governmental indices, or computations with which it is replaced shall be used in order to obtain substantially the same result as would be obtained if the index had not been discontinued or revised.

Retroactive adjustments will not be allowed.

SEC. 2.12 LEASE AGREEMENT

The lease contract agreement will be prepared by the State and will incorporate this RFP, including appendices and amendments, and is binding upon the Lessor and the State and their respective agents and assigns. Time is of the essence in executing the lease contract agreement.

SEC. 2.13 LEASE IS RECORDABLE

The Lessor and State agree to provide such signatures and documentation as will be necessary to record the lease as an encumbrance against the real property on which the lease space is situated.

SEC. 2.14 COSTS TO BE BORNE BY THE LESSOR

Lessor is required to include as part of the lease consideration all repairs and take any action necessary to keep the premises in a fit and habitable condition during the continuance of the lease or any renewal or lease extension thereof. The Lessor must furnish city water or potable water to the space. The Lessor must furnish year around road maintenance from the end of the Lessor’s owned driveway, easement or access road to a primary or secondary road that is maintained year around by the State of Alaska, Department of Transportation & Public Facilities, or other governmental body. The road maintenance shall include any and all grading, graveling, sanding for ice, snow removal, ditching, and other maintenance required to maintain any access roads in a smooth, safe, passable condition, free of mud, ruts and snow.

The Lessor shall provide all utilities, including heating fuel, electricity, water (if applicable), sewage disposal, garbage service, and snow removal for vehicle access.

SEC. 2.15 MOVING COSTS

The Lessor shall be responsible for any moving costs associated with moving the state or the state’s goods during maintenance/repairs or Lessor renovations that require good moves in the performance of the work.

If the building becomes untenantable and the state must move their goods, the Lessor is responsible for the moving costs to the temporary location and the cost to return to the leased building when the building becomes tenantable again.

SEC. 2.16 RENOVATION

Unless otherwise agreed upon, at least every five years of occupancy, at the request of the State, the Lessor shall renovate the space awarded in this RFP by refurbishing, refinishing, or replacing all damaged or worn finishes including: floors, walls, ceilings, window coverings/paint or built-in building furnishings and fixtures.

Specifications for the materials must comply with Section 3 BUILDING REQUIREMENTS.

Lessor is responsible for all costs associated with the renovations, including moving expenses of all fixtures, furniture, and equipment. Lessor is required to provide the State with a detailed schedule of the planned renovation project for its review and approval.

If the Lessor fails to respond to the State’s renovation request within 30 days, the State reserves the right to hire competent workers to accomplish such renovation(s) at the Lessor’s expense.

The State also reserves the right to extend the above time periods if the conditions are in the opinion of the State found to be still in acceptable condition.

SEC. 2.17 FIRE PREVENTION

The Lessor shall maintain the building and space occupied in keeping with good fire prevention practices.

The State reserves the right at reasonable times to enter and make fire prevention and fire protection inspections of the building and space occupied. If any fire hazard is detected through inspection of the building and space occupied, the detected fire hazard shall be corrected promptly by the Lessor, at no expense to the State. The Lessor shall furnish fire extinguishers in accordance with N.F.P.A requirements.

SEC. 2.18 ACCIDENT HAZARD

The Lessor shall maintain the building free of structural or mechanical hazards. If any accident hazards relative to the structure or building operating equipment are detected through inspections of the space, the hazards shall be corrected by the Lessor promptly, at no expense to the State.

SEC. 2.19 INTERRUPTION OF UTILITIES AND SERVICES

In the event, that in the reasonable judgment of the State, the lawful enjoyment of the leased space is threatened by the interruption or severance of utilities and services provided hereunder by the Lessor, and when such interruption or severance is due to deliberate, negligent, or tacitly negligent act of the Lessor, the State shall have the right to bind such utilities and services as are threatened, in the name of the State. The State shall be free to deduct from the lease payments the costs of such utilities and services, together with all necessary deposits and the State's actual administrative costs necessary to procure the utilities and services.

SEC. 2.20 MAINTENANCE AND REPAIR

The Lessor at any time during the continuance of this lease or any renewal or extension thereof shall assume sole responsibility for the maintenance of the demised premises. This responsibility encompasses keeping the premises in fit, good repair and tenantable condition and maintaining the premises in conformity with this RFP. The term "repair" includes repairs of any type including but not limited to: exterior and interior, structural and nonstructural, routine or periodic, except as in the case of damage arising from the negligence of the State's agents or employees. The Lessor agrees that after reasonable notice in writing by the State to the effect that the repair, maintenance, or service obligations as specified herein for the demised premises have not been satisfactorily fulfilled; the State can then obtain competent workers to correct the deficiencies. The Lessor shall pay all related costs either by direct payment or by the State making the payment to the workers and reducing the rent accordingly.

Examples of typical property maintenance duties which may fall under these statutory provisions include the Lessor’s duty to maintain:

• doors, windows, roof, floors, walls and ceilings, ensuring that they do not leak or have holes;

• plumbing that works, does not leak, and provides hot and cold water at reasonable water pressure;

• a reliable heating system which provides adequate heat to all rooms;

• a safe electrical wiring system (with no loose or exposed wires, sockets that do not spark and adequate circuit breakers);

• enough garbage cans or dumpsters to provide an adequate and safe trash removal service;

• extermination service if roaches, rats, mice or other pests infest the building or property;

• properly working smoke and carbon monoxide detection devices;

These tasks must be accomplished by the Lessor or licensed contractor or handyman. Lessor must provide proof to the State this requirement has been completed upon request.

SEC. 2.21 CASUALTY DAMAGE

The Lessor is responsible for the accomplishment and cost of any building alterations that may be required to correct any casualty damage. If said facilities or any part thereof are rendered untenantable, a proportionate part of the rent, according to the extent of such untenantability, will be abated and suspended until said premises are again made tenantable and restored to their former condition. If said premises are made tenantable again within 30 calendar days, the State will return to the facility. In the event the Lessor fails to correct casualty damage within 30 calendar days then the State shall have the right to (1) terminate the lease or (2) hire competent workers to correct such damage. The State shall have the right to offset the sum it expends in performing such work against the next installment(s) of rent coming due within the lease.

The Lessor shall hold and save the State, its officers, agents and employees, harmless from liability of any nature or kind, including costs and expenses for or on account of any suits or damages of any character whatsoever resulting from injuries or damages sustained by any person or persons or property by virtue of any act performed by the Lessor or the Lessor's agents and employees pursuant to this lease. The Lessor or his agents shall be liable to the Lessee only for damages to the person, property, guests, and invitees of the Tenant only to the extent that such injuries to those persons or property are caused by the negligence of the Lessor or his agents.

SEC. 2.22 COMPLIANCE WITH LAWS

All building and site improvements shall conform to all applicable federal, state and local laws, ordinances, codes and regulations including occupational health and safety regulations. The Lessor shall be responsible for the accomplishment and cost of any building alterations which may be required to correct violations of all applicable federal, state and local laws, ordinances, codes, and regulations.

SEC. 2.23 TENANTABILITY

Facilities provided must be tenantable and comply with all laws pertaining to tenantability and the performance of this provision.

A. Warehouse will be furnished with commercial electrical power.

B. Furnish heating system capable of maintaining an even room temperature of 60-80 degrees Fahrenheit at a point three feet above the floor in all habitable rooms.

C. Keep all common areas of the premises in a clean and safe condition.

D. Maintain the premises in keeping with good fire prevention practices. The Lessee reserves the right, at reasonable times, to enter and make fire prevention and fire protection inspections of the building and space occupied. Fire safety items will be immediately corrected by the Lessor. In addition, the Lessee reserves the right to make other inspections such as inspections to determine condition of the housing unit.

E. Ensure that facilities provided in this lease are tenantable and that they comply with all laws, ordinances, or governmental regulations which includes any building codes concerning fitness for habitation or the construction, maintenance, operation, occupancy, use or appearance of a premise or dwelling unit, except the Americans Disability Act, (ADA) which the Lessor makes no representation concerning. The Lessor agrees to pay the cost of any building alterations which may be needed during the period of the lease for the purpose of correcting any violations of the aforementioned code, regulations, laws, or ordinances as of the date of this lease, except as may be required by the ADA.

Lessor shall have no obligation to comply with governmental regulations enacted after the date hereof, unless said regulation specifically applies to all residential leased premises, and except for requirements of the ADA. If during the term of this lease or any renewal or extension thereof, the premises or any part thereof should be rendered untenantable by public authority, or by fire, or the elements, or any other casualty to the extent that enjoyment of the dwelling unit is substantially impaired, the Lessee shall,

1. Abate and suspend a proportionate part of the rent according to the extent of such untenantability until the premises are again made tenantable and restored to their former condition by the Lessor;

or,

2. Lessee may hire competent workman to restore the premises with the Lessor bearing all the cost of repairs; or,

3. Immediately vacate the premises and notify the Lessor of the intention to terminate the lease in which case the lease terminates as of the date of vacating.

F. Maintain the building and premises in good and safe working order and condition. The building and premises will be in compliance with all applicable laws, ordinances, governmental regulations, and building codes including all mechanical, structural, electrical, plumbing, sanitary, heating, ventilating, and other facilities, equipment and appliances. If the building and premises should become substandard in accordance with applicable laws and codes, the Lessor will be notified of the substandard condition and the Lessor will within seven days notify the Lessee of the action to be taken to correct the condition and estimated completion date of correcting action. If the premises or a substantial part thereof are thereby rendered substandard and so remain for a period of 30 days, or mutually agreed time, the Lessee may at its option terminate the lease by written notice to the Lessor.

This 30-day period shall not be so restrictedly construed that the Lessee is bound to remain in the lease facility if the facility is unsafe. If warranted due to unsafe condition, Lessee is free to move elsewhere.

If the premises are restored to good condition in the 30-day period, Lessee will return to the facility for occupancy.

G. Renovate the space by refinishing or replacing all damaged or worn wall, ceiling, floor and window covering at least every five years of occupancy unless otherwise agreed upon.

H. The Lessor will give the Lessee 90 days prior to notice to the sale of the property. If the Lessee does not wish to become a competitor in the purchase of the said property, the Lessee will at the time of notice of property sale give written notification as to their desires. If the leased property is sold during the term of the lease, or any extension thereof, the sale will be made subject to all terms of this lease plus the option to purchase provision. This also applies to any sale as a result of an encumbrance on the property that existed prior to the execution of this lease. This lease and all the covenants, provisions and conditions herein contained shall inure to the benefit of and be binding upon the successors and assigns of the parties hereto.

I. Disclose to the Lessee in writing on or before the commencement of the tenancy the name, address, and telephone number of:

1. The person authorized to manage the premises. There shall always be an authorized manager or designee in-state and available by telephone responsible to manage the premises.

2. The owner of the premises or a person authorized to and on behalf of the owner for the purpose of service of process and the purpose of receiving and receipting of notices and demands. This individual must be located in Alaska.

3. The information required above shall be kept current and this section extends to and is enforceable against any successor landlord, owner, or manager.

J. Provide and maintain locks and furnish keys reasonably adequate to ensure safety to the state’s property.

K. Furnish fire extinguishers in accordance with N.F.P.A requirements.

L. Provide annual maintenance and inspection (per N.F.P.A. requirements) of fire extinguisher and smoke detectors. Smoke detectors must be checked annually for proper operation. A licensed fire extinguisher inspector must inspect fire extinguishers.

M. Schedule routine repairs and maintenance work with the state. Any repairs that will affect the state’s use of the property will require at least 24-hours notice prior to the work commencing unless it is an emergency.

N. Furnish year-round road maintenance from the parking pad to a primary or secondary road maintained year round by the State of Alaska Department of Transportation or other governmental body. The road maintenance shall include all grading, graveling, ditching and other maintenance required to maintain the driveways and access road in a smooth, passable condition free of mud and ruts.

O. Furnish grounds maintenance as needed to grade, ditch, gravel or other grounds care as needed to the grounds, walks and parking pads to prevent erosion, ponding, mud, or improper drainage to occur.

P. If the premises or any part thereof are rendered untenantable by casualty damage or declared untenantable by a regulatory agency, public official or DPS, a proportionate part of the rent, according to the extent of such untenantability, shall be abated and suspended until the premises are again made tenantable and restored to their former condition

Q. If the premises or a substantial part thereof are rendered untenantable and remain so for a period of

30 calendar days, the State may, at its option, terminate the lease by written notice to the Lessor.

This 30-calendar day period shall not be so restrictively construed that the State is bound to remain in the leased facility if the State's business cannot be safely executed. The State's determination shall be binding regarding tenantability. If untenantable conditions are determined to exist, the State has the right to move elsewhere.

R. If the premises are made tenantable again within the 30-calendar day period, the State will return to the facility. The State has the right to recover any excess costs, over the abated lease payments, occasioned by relocation due to such untenantable conditions.

S. In the event the Lessor fails to correct damage or violation(s) within the 30 calendar day period, the

State will have the right to terminate the lease, or will have the option of hiring competent workers to correct the damage or violation(s). The Lessor will bear the cost of all such labor and materials. The Lessor agrees that damage or violations corrections performed by the State will not be construed to constitute a breach of the terms of this RFP and the subsequent lease.

SEC. 2.24 OTHER MUTUALLY AGREED TERMS AND CONDITIONS

It is mutually agreed by and between the Lessor and Lessee that:

A. All terms and condition of the preceding covenants of both Lessee and Lessor are agreeable and accepted in their entirety.

DISPUTE RESOLUTION: In the event of a dispute between the parties concerning this Agreement, or any events relating thereto, the parties shall first attempt to resolve the dispute through informal negotiations or, if the parties mutually agree, through the use of a third-party mediator or other informal dispute resolution process agreed upon by the parties.

B. All fixtures and/or equipment of whatsoever nature as shall have been installed in the demised premises by the Lessee, whether permanently affixed thereto or otherwise, shall continue to be the property of the Lessee, and may be removed by it at the expiration or termination of this lease or any renewal and at its own expense repair any injury to the premises resulting from such removal.

C. If the Lessee shall at any time be in default in the payment of rent herein reserved, or in the performance of any covenants, terms and conditions, or provisions of this lease, and the Lessee shall fail to remedy such default within 60 days after written notice thereof from the Lessor, it shall be lawful for the Lessor to enter upon said premises and again have, repossess, and enjoy the same as if the lease had not been made, and thereupon this lease and everything contained on the part of the Lessor to be done and performed shall cease and determine without prejudice however, it shall be the right of the Lessor to recover from the Lessee all rent due up to the time of such entry. In case of any such default of said term for the highest rent obtainable and may recover from the Lessee any deficiency between the amount so obtained and the rent herein reserved.

D. If the Lessee shall pay the rent as herein provided, and shall keep, observe, and perform all the covenants of this lease the Lessee shall and may, peaceably and quietly, have, hold, and enjoy the said premises for the term aforesaid.

E. The Lessee shall notify the Lessor of tenant changeover or termination of lease. Upon notification

Lessee will permit Lessor to jointly inspect warehouse space. The intent of this inspection is to document the condition of the space and identify maintenance and repair needs.

F. The Lessor will perform inspection of warehouse space within 15 days from the date of vacating the space. The Lessor will identify any damages caused by the Lessee and notify the State within seven days from inspection. Normal wear and tear and renovations due to the age of the warehouse space will not be considered as damages cause by the Lessee.

G. The Lessor shall not perform any repair to the damages identified unless the damages and any costs associated to repair the damages are approved by the State.

H. The lease and all the terms, provisions and conditions herein contained shall inure to the benefit of and be binding upon the successors and assigns of the parties hereto.

SEC. 2.25 FISCAL NECESSITY – NON-APPROPRIATION OF FUNDS

The fiscal year for the State of Alaska is a twelve-month period beginning July 1 and ending June 30 of the following calendar year. Lease payments from the State are subject to annual appropriation of funds by the Alaska State Legislature. After the initial fiscal term of the lease, the State has the right to terminate this lease in whole, or in part, if (1) the Alaska State Legislature fails to appropriate funds budgeted for continuation of this lease, and/or (2) the Alaska State Legislature fails to appropriate funds to the occupying agency(s) that results in a material alteration or discontinuance, in whole or in part, of the occupying agency(s)' programs. The termination of the lease for fiscal necessity and non-appropriation of funds under this section shall not cause any penalty or liability to be charged to the State and shall not constitute a breach or an event of default by the State.

SEC. 2.26 LESSOR, LESSOR’S EMPLOYEES AND CONTRACTOR’S SECURITY

REQUIREMENT

The State may request fingerprints, Department of Public Safety background clearance or conduct other investigations of the Lessor, Lessor’s employees, or employees of contractors and subcontractors performing work within the space occupied by the State. Should such request be denied or unfulfilled within ten days, the State has the right to terminate the lease or prohibit access of leased space to lessors, employees, contractors, and subcontractors. Should this refusal of access limit routine maintenance or janitorial services to the State, the State has the right to employ such services independent of the Lessor and to deduct the cost of services from lease payments. The State at its discretion may limit or deny access to individuals in which they deem could be a security risk to the State, its employees, or its mission.

SEC. 2.27 STATE’S RESPONSIBILITIES

The State will:

1. use and occupy the premises in a careful and proper manner,

2. not use or occupy the premises for any unlawful purposes, Personal uses of the warehouse space are expressly prohibited,

3. not assign the lease nor underlet the premises or any part thereof, without the written consent of the lessor provided, however, that such consent shall not be unreasonably withheld,

4. not use or occupy the premises or permit the same to be occupied for any purpose or business deemed hazardous or in any way unsafe,

5. make no alterations or additions in or to the premises without the written consent of the Lessor, which consent shall not be unreasonably withheld,

6. pay monthly rent as stipulated herein,

7. leave the premises at the expiration or prior to termination of the lease or any renewal or extension thereof, in as good condition as received, or in which modified by or approved by the Lessor, excepting reasonable wear and tear, and/or loss or damage caused by fire, explosions, earthquake, acts of God, other casualty, or as provided for in Section 2.29 INDEMNIFICATION,

8. This is a “No-Smoking” facility. If the Lessee’s personnel using the facility smokes indoors, Lessee will be assessed for repainting and cleaning at the expiration or termination of the lease or any extension thereof, to the extent needed to restore the premises to “No-Smoking” condition.

SEC. 2.28 INDEMNIFICATION

The contractor shall indemnify, hold harmless, and defend the State of Alaska from and against any claim of, or liability for error, omission or negligent act of the contractor under this agreement. The contractor shall not be required to indemnify the State of Alaska for a claim for, or liability for, the independent negligence of the State of Alaska. If there is a claim of, or liability for, the joint negligent error or omission of the contractor and the independent negligence of the State of Alaska, the indemnification and hold harmless obligation shall be apportioned on a comparative fault basis. “Contractor” and “State of Alaska”, as used within this and the following article, include the employees, agents, and other contractors who are directly responsible, respectively, to each. The term “independent negligence” is negligence other than in the State of Alaska’s selection, administration, monitoring, or controlling of the contractor and in approving or accepting the contractor’s work.

SEC. 2.29 INSURANCE REQUIREMENTS

Without limiting the contractor’s indemnification, it is agreed that the contractor shall purchase at its own expense and maintain in force at all times during the performance of services under this agreement the following policies of insurance. Where specific limits are shown, it is understood that they shall be the minimum acceptable limits. If the contractor’s policy contains higher limits, the State of Alaska shall be entitled to coverage to the extent of such higher limits.

Certificates of Insurance must be furnished to the contracting officer prior to beginning work and must provide for a notice of cancellation, non-renewal, or material change of conditions in accordance with policy provisions. If the insurer does not notify the State of Alaska on policy cancellation it shall be the contractor’s responsibility to notify the State of Alaska of such cancellation.

Failure to furnish satisfactory evidence of insurance or lapse of the policy is a material breach of this contract and shall be grounds for termination of the contractor’s services. All insurance policies shall comply with and be issued by insurers licensed to transact the business of insurance under AS 21. All policies for general liability shall be primary and non-contributing with any insurance that may be carried by the State of Alaska.

The contractor shall require and verify that all subcontractors maintain insurance meeting all requirements stated herein, and contractor shall ensure that the State is an additional insured on insurance required from subcontractors.

Policies written on a “claims-made” basis must have a two (2) year tail of coverage, or an unbroken continuation of coverage for two (2) years from the completion of the contract requirements.

2.1 Workers’ Compensation Insurance: The contractor shall provide and maintain, for all employees engaged in work under this contract, coverage as required by AS 23.30.045, and Employers Liability with limits of at least $1,000,000. Also, where applicable, the contractor shall provide and maintain any other statutory obligations including but not limited to Federal U.S.L. & H. and Jones Act requirements.

The policy must waive subrogation against the State of Alaska.

2.2 Commercial General Liability Insurance including:

$2,000,000 General Aggregate $2,000,000 Products/Completed Operations

$1,000,000 Personal & Advertising Injury $1,000,000 Each Occurrence

$ 5,000 Medical Payments

The policy must name the State of Alaska as an “additional insured” and the actual policy endorsement shall accompany each Certificate of Insurance. The policy shall be endorsed to waive all rights of subrogation against the State of Alaska by reason of any payment made for claims under this coverage. This policy endorsement shall accompany each Certificate of Insurance

2.3 Commercial Automobile Liability Insurance: covering all vehicles used by the contractor in the performance of services under this agreement with minimum coverage limits of $1,000,000 combined single limit per claim, to include: owned, hired, and non-owned. The policy must name the State of Alaska as an “additional insured’ and the actual policy endorsement shall accompany each Certificate of Insurance. The policy shall be endorsed to waive all rights of subrogation against the State of Alaska by reason of any payment made for claims under this coverage. This policy endorsement shall accompany each Certificate of Insurance.

SEC. 2.30 “HANDYMAN” STATUTE REQUIREMENTS

The Lessor shall ensure compliance with Alaska Statute 08.18 governing contractor licensing, insurance, and bonding requirements.

http://www.akleg.gov/basis/statutes.asp#08.18

SEC. 2.31 TERMINATION FOR DEFAULT

If the project director or procurement determines that the Lessor or contractor has refused to perform the work or has failed to perform the work with such diligence as to ensure its timely and accurate completion, the State may, by providing written notice to the Lessor or contractor, terminate the contractor's right to proceed with part or all of the remaining work.

SEC. 2.32 CONTRACT TYPE

This contract is a firm fixed price contract.

SEC. 2.33 RIGHT TO INSPECT PLACE OF BUSINESS

At reasonable times, the State may inspect those areas of the contractor's place of business that are related to the performance of a contract. If the State makes such an inspection, the contractor must provide reasonable assistance.

SEC. 2.34 CONTRACT CHANGES - UNANTICIPATED AMENDMENTS

During the course of this contract, the contractor may be required to perform additional work. That work will be within the general scope of the initial contract. When additional work is required, the project director will provide the contractor a written description of the additional work and request the contractor to submit a firm time schedule for accomplishing the additional work and a firm price for the additional work. Cost and pricing data must be provided to justify the cost of such amendments per AS 36.30.400.

The contractor will not commence additional work until the Procurement Officer has secured any required State approvals necessary for the amendment and issued a written contract amendment, approved by the Commissioner of the Department of Public Safety or the Commissioner's designee.

SEC. 2.35 NONDISCLOSURE AND CONFIDENTIALITY

Lessor or contractor agrees that all confidential information shall be used only for purposes of providing the deliverables and performing the services specified herein and shall not disseminate or allow dissemination of confidential information except as provided for in this section. The Lessor or contractor shall hold as confidential and will use reasonable care (including both facility physical security and electronic security) to prevent unauthorized access by, storage, disclosure, publication, dissemination to and/or use by third parties of, the confidential information. “Reasonable care” means compliance by the contractor with all applicable federal and state law, including the Social Security Act and HIPAA.