DPA Solicitation #:

RFP AADA 2018-0295

Provision of Production Inserter and Lease Financing

RFP AADA 2018-0295 Page 1 of 21

CONTENTS

SECTION 1.0 INTRODUCTION..………………………………………………………………….…..3

1.1. GENERAL INFORMATION..………………………………………………………………….3

1.2. ANTICIPATED CONTRACT TERM...………………………………………………………..3

1.3 DOCUMENTS REQUIRED FOR AWARD...………………………………………………….3

SECTION 2.0 TERMINOLOGY………………………………………………………………………..3

2.1. ACRONYMS, ABBREVIATIONS AND OTHER TERMINOLOGY.……………………..3

SECTION 3.0 BACKGROUND INFORMATION…………………………………………………….6

3.1. THE DEPARTMENT OF PERSONNEL & ADMINISTRATION

3.2. PROJECT BACKGROUND

3.3. CURRENT OPERATING ENVIRONMENT FOR INSERTERS

3.4. CURRENT SUBSTRATE (PAPER) UTILIZATION

SECTION 4.0 MANDATORY REQUIREMENTS AND REQUESTED INFORMATION

4.1. OFFEROR’S RESPONSE FOR INSERTER LEASE FINANCING………………….….8

4.2. OFFEROR'S RESPONSE FOR INSERTING SYSTEM…………….……………………...9

4.3 OFFEROR'S RESPONSE FOR BASE PLATFORM OF INSERTER ……………….…..10

4.4 OFFEROR'S RESPONSE FOR FEEDER AND FOLDING OPTIONS OF INSERTER..11

4.5 OFFEROR'S RESPONSE FOR INSERTER SUBSTRATE PROCESSING

CAPABILITIES………………………………………………………………………………11

4.6 OFFEROR'S RESPONSE FOR INTEGRATION OF INSERTER INTO IDS

PRODUCTION ENVIRONMENT…………………………………………………………..11

4.7 OFFEROR'S RESPONSE FOR INSERTER CAMERA AND BARCODE

READING CAPABILITIES……………………………………………………...….………..12

4.8 OFFEROR'S RESPONSE FOR INSERTER OPERATOR INTERFACE

FEATURES AND CAPABILITIES…………………………………………………….…….13

4.9 OFFEROR'S RESPONSE FOR OPERTOR TRAINING….…………………….………

4.10 OFFEROR'S RESPONSE FOR EQUIPMENT AND SOFTWARE

MAINTENANCE SERVICES……………………………………………………….…….…13

4.11 OFFEROR'S RESPONSE FOR INSERTER MAINTENANCE AGREEMENT…..….…14

4.12 OFFEROR'S RESPONSE FOR CONTRACTOR PERSONNEL.…..………………….…14

4.13 OFFEROR'S RESPONSE FOR PERFORMANCE STANDARDS

AND PERFORMANCE MEASUREMENT…………………………………..……..……...15

4.14 OFFEROR'S RESPONSE FOR REPORTING REQUIREMENTS……………..…..…...17

4.15 OFFEROR'S RESPONSE FOR START-UP AND CLOSEOUT PERIODS…………

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4.16 OFFEROR'S RESPONSE FOR REFERENCES…….………………………….…………17

SECTION 5.0 COMPENSATION AND PRICING…………………….…….…….………………………….…………18

5.1 OFFERORS RESPONSE FOR COMPENSATION.….…………………………………….18

5.2 OFFEROR'S RESPONSE FOR INVOICING AND PAYMENT PROCEDURES.…

5.3 PRICING…………………………………………………..………….………………………………………19

SECTION 6.0 EVALUATION METHODOLOGY………….………………………………………19

6.1 EVALUATION PROCESS……….………………………………….…………………………19

6.2 EVALUATION COMMITTEE………………………….………………………………….20

6.3 COMPLIANCE……………………………………..………………………………………..21

6.4 PROPOSAL EVALUATION CRITERIA…...……………………………………………..22

EXHIB IT A – MODEL LEASE AGREEMENT

EXHIBIT B – PRICING SHEET FOR CAPITAL LEASE

ATTACHMENT 1 – MAIL RUN DATA FILE (MRDF)

APPENDIX A - ADMINISTRATIVE INFORMATION DOCUMENT

APPENDIX B – W9, SECRETARY OF STATE REGISTRATION, EFT

APPENDIX C – REFERENCES CEDC FORM

RFP AADA 2018-0295 Page 3 of 21

SECTION 1.0 INTRODUCTION

1.1. GENERAL INFORMATION

1.1.1. The Colorado Department of Personnel and Administration (Department) is soliciting competitive, responsive proposals from experienced and financially sound organizations to perform as the provider of a production mail inserting system and the provision of lease financing for the inserter for the Department of Personnel & Administration (DPA), Integrated Document Solutions Program (IDS). The State reserves the option to solicit proposals for capital lease financing and for a cash price to purchase.

1.2. ANTICIPATED CONTRACT TERM

1.2.1. The Contractor’s start-up period is anticipated to begin on July 31, 2018 and end when the inserter is delivered, installed, tested and accepted. The estimated date for acceptance is

October 31, 2018..

1.2.2. The initial operational period of the Contract is anticipated to begin at the end of the start-up period and will last for the estimated three year term of the lease.

1.2.3. The total duration of the Lease Agreement and associated Maintenance Agreement that may result from this solicitation, from the Operational Start Date until termination, and including the Department’s exercise of any options, is not anticipated to exceed three (3) years. The

Department may extend the Contract beyond the anticipated term in this subsection, in accordance with the Colorado Procurement Code and its implementing rules, in the event that the Department determines that the extension is necessary to provide continuation of maintenance services, to address State programmatic or policy changes related to the

Contract, to align the Contract with other Department contracts, or to provide sufficient time to transition the Work. The Department may extend the Maintenance Agreement on an annual basis for a period of up to seven (7) years at the State’s sole discretion.

1.3. DOCUMENTS REQUIRED FOR AWARD

1.3.1. Within 10 business days following the posting of the RFP Intent to Award in VSS the

Awarded Contractor will provide the State with Proof of Registration with the Colorado

Secretary of State and an insurance certificate (COI) that is responsive to the insurance requirements of the State as specified in the RFP Model Contract. The State also requests that vendors return the attached EFT (Electronic Funds Transfer) form so the State can ensure payments resulting from this award will be completed through EFT. These documents are attached as Appendix B W-9, Secretary of State Registration, EFT. Offerors do not need to submit these documents unless they are awarded the contract.

SECTION 2.0 TERMINOLOGY

2.1. ACRONYMS, ABBREVIATIONS AND OTHER TERMINOLOGY

2.1.1. Acronyms and abbreviations are defined at their first occurrence in this Request for

Proposals (RFP). The following list is provided to assist the reader in understanding acronyms, abbreviations and terminology used throughout this document.

2.1.1.1. Bid Response – Offer submitted by bidder/vendor in response to a solicitation. Bid

Response and Response have the same meaning.

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2.1.1.2. Business Day - Any day in which the State is open and conducting business, but shall not include Saturday, Sunday or any day on which the State observes one of the holidays listed in §24-11-101(1) C.R.S.

2.1.1.3. Business Interruption - Any event that disrupts the Contractor’s ability to complete the

Work for a period of time, and may include, but is not limited to a Disaster, power outage, strike, loss of necessary personnel or computer virus.

2.1.1.4. Capital Lease – A lease agreement in which the lessor agrees to transfer the ownership rights to the lessee after completion of the lease payments and the expiration of the lease term.

2.1.1.5. Closeout Period - The period beginning on the earlier of ninety (90) days prior to the end of the last renewal year of the Contract or notice by the Department of non-renewal and ending on the day that the Department has accepted the final deliverable for the Closeout

Period and has determined that the final transition is complete.

2.1.1.6. Contract - The agreement that is entered into as a result of this solicitation.

2.1.1.7. Contractor - The individual or entity selected as a result of this solicitation to complete the

Work contained in the Contract.

2.1.1.8. Debtor - Any individual or entity that owes any amount to the State, and the from which the State is actively trying to collect that debt.

2.1.1.9. Department - The Colorado Department of Personnel & Administration, a department of the government of the State of Colorado.

2.1.1.10. Disaster - An event that makes it impossible for the Contractor to perform the Work out of its regular facility, and may include, but is not limited to, natural disasters, fire or terrorist attacks.

2.1.1.11. DPA – The Colorado Department of Personnel & Administration.

2.1.1.12. Economic Life – The period of time over an asset (inserter) is expected to be usable for the purpose for which it was acquired, rented or leased.

2.1.1.13. Economic Life of the Inserter – Shall reflect the provision of maintenance and repair services provided under the terms of the Maintenance Agreement from the inception of the lease through the full term of the lease.

2.1.1.14. Effective Date - The effective date defined in the Contract.

2.1.1.15. Extension Term - The periods defined in the Contract as Extension Terms, and include all periods of time following the end of the Initial Term but before the expiration or earlier termination of the Contract.

2.1.1.16. FASB – Federal Accounting Standards Board.

2.1.1.17. GASB – General Accounting Standards Board.

2.1.1.18. IDS – The Department of Personnel & Administration, Integrated Document Solutions

Program.

2.1.1.19. Initial Term - The period defined in the Contract as the Initial Term, which includes the

Start-Up Period and the initial operational period described in Section 1.2.2 of this RFP.

RFP AADA 2018-0295 Page 5 of 21

2.1.1.20. Inserter and Inserting System – Interchangeable terms with the same meaning.

2.1.1.21. Key Personnel - The position or positions that are specifically designated as such in the

Contract.

2.1.1.22. Lease Purchase Agreement – Lease contract under which a portion of the lease payment is applied to the purchase price of the leased asset. When the full price is paid, the title is transferred from the lessor to the lessee.

2.1.1.23. Mail Run Data File (MRDF) – An electronic file containing digitized information in a coded form and a specific file format.

2.1.1.24. Offeror - Any individual or entity that submits a proposal, or intends to submit a proposal, in response to this solicitation.

2.1.1.25. On-Site Repair Service Call – A scheduled trip by a Contractor technician(s) to the IDS location in response to a call by IDS for a repair or diagnosis of an operational issue with the inserter or associated software that is covered by the Maintenance Agreement.

2.1.1.26. On-Site Preventive Maintenance Service Call – A trip by the Contractor technician(s) to the IDS location for the performance of preventive maintenance of the inserter as scheduled under the Maintenance Agreement.

2.1.1.27. Operational Start Date - When the Department authorizes the Contractor to begin fulfilling its obligations under the Contract.

2.1.1.28. Other Personnel - Individuals and Subcontractors, in addition to Key Personnel, assigned to positions to complete tasks associated with the Work.

2.1.1.29. Performance Deficiency – Performance of maintenance and repair services that do not meet the established Performance Standards.

2.1.1.30. Production Capacity – Three levels of meaning for the inserter:

2.1.1.30.1. Design Capacity refers to the maximum output than can possible be achieved, the maximum output of inserted envelopes that the inserter can produce in a given period of time.

2.1.1.30.2. Effective Capacity is the maximum possible output given constraints such as product mix composition, machine maintenance and scheduling.

2.1.1.30.3. Actual Output Capacity is the amount of inserted envelopes actually obtained over a period of time for specified material in the actual production environment.

2.1.1.31. Proposal – Offeror’s Response to this RFP.

2.1.1.32. Quarterly Business Report (QBR) – Quarterly Contractor Performance Report provided by

IDS to the Contractor as a component of quarterly performance review meetings.

2.1.1.33. Remanufactured as New – Rebuilding to the specifications of the original manufactured equipment.

2.1.1.34. SFY or State Fiscal Year. The 12 month period beginning on July 1 of each calendar year and ending on June 30 of the following calendar year. If a single calendar year follows the term, then it means the State Fiscal Year ending in that calendar year.

2.1.1.35. Start-Up Period - The period from the Effective Date, until the Operational Start Date.

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2.1.1.36. State – State of Colorado, Department of Personnel & Administration.

2.1.1.37. Subcontractor - Third-parties, if any, engaged by Contractor to aid in performance of its obligations under the Contract.

2.1.1.38. Summary of On-Site Service Calls – Monthly report provided to IDS by the Contractor.

2.1.1.39. Technical Proposal – Offeror’s full and complete response to all numbered “OFFEROR

RESPONSE” items in the RFP document.

2.1.1.40. Work - The tasks and activities Contractor is required to perform to fulfill its obligations under the Contract, including the performance of any services and delivery of any goods.

SECTION 3.0 BACKGROUND INFORMATION

3.1. THE DEPARTMENT OF PERSONNEL AND ADMINISTRATION

3.1.1. The Department of Personnel and Administration (DPA) performs core functions that provide the infrastructure, processes, services, guidance, and tools necessary to support the functioning of State of Colorado government.

The programs and services provided by DPA are vitally important to the efficient and effective operation of State government. For more information about the Department, visit www.Colorado.gov/DPA.

3.1.1.1. The Department of Personnel and Administration (DPA), Integrated Document Solutions

(IDS) Program provides centralized document design, printing, mail processing services, equipment, technology resources, materials and delivery services to State Agencies

3.2. PROJECT BACKGROUND

3.2.1. RFP’s Purpose

3.2.1.1. The purpose of the RFP is to solicit proposals for provision of a production inserting system to include Capital Lease financing by the Offeror or to provide the option for cash purchase of the inserter by the State. The proposed inserter is intended to be integrated into the IDS current production environment for the purpose of substantially increasing the productive capacity of IDS for automated inserting of letter mail processed for State

Agencies.

3.2.2. Enabling Legislation

3.2.2.1. C.R.S. 24-30-1101 (2017)

24-30-1101. LEGISLATIVE FINDINGS AND DECLARATIONS

(1) THE GENERAL ASSEMBLY HEREBY FINDS, DETERMINES, AND DECLARES THAT:

(A) SERVICES SUCH AS PRINTING, DOCUMENT MANAGEMENT, MAIL-RELATED

SERVICES, MICROFILM, GRAPHIC ARTS, FLEET MANAGEMENT, AND OTHER

SIMILAR SERVICES ARE BEING WIDELY USED BY THE STATE OF COLORADO

AS A PRACTICAL AND ECONOMICAL MEANS OF IMPROVING ADMINISTRATIVE

PRODUCTION AND EFFICIENCY;

(D) MEETING THE SERVICE NEEDS OF STATE DEPARTMENTS, INSTITUTIONS,

AND AGENCIES IN EFFICIENT AND ECONOMICAL WAYS WITHIN THE

RESOURCE CAPABILITIES OF THE STATE IS THE PRIME GOAL OF THE DIVISION

OF CENTRAL SERVICES POLICY;

http://www.colorado.gov/DPA

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(E) TO MOST EFFECTIVELY UTILIZE RESOURCES COMMITTED TO EXISTING

SERVICES AND TO ASSURE THE BEST SERVICES AT COMPETITIVE COSTS TO

USER AGENCIES WHILE PRESERVING THE MANAGERIAL PREROGATIVES AND

RESPONSIBILITIES ASSIGNED TO DEPARTMENT AND AGENCY HEADS BY

STATUTE AND OTHERWISE, IT IS NECESSARY TO ESTABLISH CENTRAL

PLANNING, CONTROL, AND COORDINATION OF SERVICE ACTIVITIES.

24-30-1104. CENTRAL SERVICES FUNCTIONS OF THE DEPARTMENT –

DEFINITIONS

(B) REVIEW ALL EXISTING AND FUTURE SERVICES, SERVICE APPLICATIONS,

SOFTWARE RELATED TO SERVICES, PLANNING SYSTEMS, PERSONNEL,

EQUIPMENT, AND FACILITIES AND ESTABLISH PRIORITIES FOR THOSE THAT

ARE NECESSARY AND DESIRABLE TO ACCOMPLISH THE PURPOSES OF THIS

PART 11;

(J) PROVIDE SERVICES, EQUIPMENT, AND FACILITIES AS REQUIRED

PURSUANT TO THIS PART 11 FOR STATE DEPARTMENTS, INSTITUTIONS, AND

AGENCIES ACCORDING TO THEIR NEEDS;

3.3. CURRENT OPERATING ENVIRONMENT FOR INSERTERS

3.3.1. The Integrated Document Solutions program currently utilizes two (2) Pitney Bowes

Flowmaster inserters for production mail inserting.

3.3.2. The volume of finished envelopes that the new (proposed) inserter is estimated to process given the current volumes is one (1) million envelopes per month. This is a monthly average of the annual volume. There are peak volume periods where the monthly volume will be higher than the average.

3.3.3. The State anticipates that the volume will increase during the term of the agreement and has addressed this potential for increased volume in the sections for maintenance services and maintenance agreements.

3.3.4. The physical environment is a professional print and mail processing facility that is designed to support printing and mailing operations.

The inserters are integrated into an Automated Document Factory (ADF) system that supports the State’s variable data printing capabilities by ingesting data into a dashboard, storing the files temporarily, and tracking the files through the print and mailing processes until completion.

3.3.5. The ADF is an open system that is designed to ensure the integrity of the print and mailing processes and integrates hardware and software that includes, but is not limited to the following:

3.3.5.1. Solimar SPDE & Rubika software

3.3.5.2. RSA QDirect, queue management software

3.3.5.3. Enterprise Print Management software (EPMS32)

3.3.5.4. BCC postal software (Track N Trace and Mail Manager Full Service (MMFS)

3.3.5.5. Inserter camera systems using import / export protocols

3.3.5.6. Mail Run Data Files (MRDF)

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3.3.5.7. Pitney Bowes Business Manager System version 8.

3.3.5.8. Pitney Bowes Infinity Postage Meters

3.4. CURRENT SUBSTRATE (PAPER) UTILIZATION:

3.4.1. The primary papers currently utilized by IDS for inserting are Glatfeiter – Pixelle Enhanced

HiBrite for 20/50 lb. paper.

3.4.2. The State intends to utilize additional paper brands and types during the term of the agreement and has requested information on substrate materials that proposed inserters can process and any limitations in substrate materials that may be utilized in sections relating to inserter feeder and folding options and inserter substrate capabilities.

3.4.3. 20/50 lb. Substrate Detail for Glatfeiter – Pixelle Enhanced HiBrite

3.4.3.1. White 20/50 lb. paper

3.4.3.2. Basis Weight (#Bond) minimum 20 and maximum 21

3.4.3.3. Basis Weight (GSM) minimum 75 and maximum 76.

3.4.3.4. Brightness minimum 92.

3.4.3.5. Opacity minimum 92.

3.4.3.6. Caliper .004 inches.

3.4.3.7. Smoothness minimum 70.

3.4.3.8. Stiffness – Machine Direction (MD) minimum 1.6.

3.4.3.9. Stiffness - Cross Direction (CD) minimum 0.8.

3.4.3.10. Coefficient of Friction (COF) (static) minimum 0.20 and maximum 0.35.

3.4.3.11. Coefficient of Friction (COF) (kinetic) minimum 0.20 and maximum 0.35.

3.4.3.12. Treated paper for dye ink.

SECTION 4.0 MANDATORY REQUIREMENTS AND REQUESTED INFORMATION

4.1. MANDATORY REQUIREMENTS FOR INSERTER LEASE FINANCING

4.1.1.1. The Offeror must provide the proposed production inserter and Capital Lease financing for the inserter.

4.1.1.2. The State will only consider Offeror proposals that include Capital Lease financing for the

Offeror proposed inserting system. The State will not consider proposals that require the

State to contract with a third party financing entity. Offeror shall confirm understanding and acceptance of this requirement in Offeror’s response to this section.

4.1.1.3. The State retains the option to utilize established State contracted leasing entities based on their availability for financing the inserting system and the State’s best interest to be determined at the sole discretion of the State. Offeror shall confirm understanding and acceptance of this requirement in Offeror’s response to this section.

4.1.1.4. The Offeror provided lease financing shall be for a Capital Lease with ownership to transfer to the State following completion of the lease payments.

RFP AADA 2018-0295 Page 9 of 21

4.1.1.5. The Offeror proposed Capital Lease financing shall provide one fixed interest rate for a term of three (3) years (thirty-six (36) months) to be effective upon installation, configuration and full operational confirmation of the proposed inserter. Offeror shall state the fixed interest rate for the Lease in Exhibit B – Pricing Sheet for Capital Lease.

4.1.1.6. The total amount of lease payments shall be provided by the Offeror in Exhibit B for a proposed Capital Lease. The total amount of the lease payments shall include but not be limited to, the total of Principal and Interest payments.

4.1.1.7. The monthly Principal amount for the Capital Lease shall be provided in Exhibit B and remain constant through the term of the lease.

4.1.1.8. The monthly Interest amount for the Capital Lease shall be provided in Exhibit B and remain constant through the term of the lease.

4.1.1.9. An amortization/payment schedule shall be provided for the Capital Lease in Exhibit B.

4.1.1.10. The Offeror shall provide the fair market value of the leased property at the inception of the Capital Lease of the inserter in Exhibit B and shall include supporting documentation from a minimum of two similar inserters leased within the last two (2) years.

4.1.1.11. The Offeror shall provide the estimated residual value (estimated fair value) of the proposed inserter at the end of the Capital Lease term. Offeror shall include supporting documentation from a minimum of one similar inserter supported by full service maintenance plans.

4.1.1.12. The Offeror shall provide the estimated Economic Life of the proposed inserter at the inception of the lease in Exhibit B. The estimated economic life shall be based on the inclusion of a full service maintenance agreement for the term of the lease. Offeror shall include supporting documentation from a minimum of one similar inserter supported by full service maintenance plans.

OFFEROR'S RESPONSE 1. Confirm that you meet all mandatory requirements and agree to all terms in Section 4.1

4.2. MANDATORY REQUIREMENTS FOR INSERTING SYSTEM

4.2.1.1. The proposed Inserting System shall be high capacity, automatic inserting, postage metering and folding system.

4.2.1.2. Inserting System shall be new or remanufactured as new. Offerors shall state whether their proposed inserter is new or remanufactured as new.

4.2.1.3. Offeror’s proposing remanufactured as new equipment shall provide a complete listing of all components repaired or replaced including the source/manufacturer for all replacement parts or components. The Offeror shall provide written certification that remanufactured inserter meets or exceeds all specifications of the original, new inserter

4.2.1.4. Proposed inserter shall provide a minimum cycle speed of 9,000 cycles per hour for 9.5 inch x 6 inch envelopes based on an average of seven (7) sheets per set to be inserted into each envelope utilizing the current IDS 20/50 lb paper (see Section 3.4).

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4.2.1.5. Proposed inserter must process executive envelopes, diagonal cut envelopes, side seam envelopes, and outside seam envelopes. The State currently utilizes #10, 6 inch x 91/2 inch envelopes. The State utilizes 9 inch x 12 inch booklet envelopes for flats.

4.2.1.6. Inserter must be capable of processing the maximum page count for flats for purposes of this solicitation is thirty (30) sheets of 24/60 lb paper.

4.2.1.7. Proposed inserter must accept Pitney Bowes Infinity Meter.

4.2.1.8. The Offeror must demonstrate provision of production inserting system(s) meeting or exceeding the minimum requirements stated in Section 4.2 within the past two (2) years.

OFFEROR'S RESPONSE 2. Confirm that you meet all mandatory requirements and agree to all terms in Section 4.2

4.3. BASE PLATFORM OF THE PROPOSED INSERTING SYSTEM

4.3.1.1. Model identification

4.3.1.2. Configuration

4.3.1.3. Footprint

4.3.1.4. Power requirements including any backup power system requirements if applicable.

4.3.1.5. What are cycle speed ranges available assuming four (4) sheets, 8.5 inches x 11 inches paper, ½ fold and inserted into 6 inch x 9.5 inch envelope.

4.3.1.6. Describe any envelope requirements that must be met to achieve the described cycle speed(s)

4.3.1.7. Describe the cycle speeds for sheet feeder capability and envelope output.

4.3.1.8. What is the feed rate of the sheet feeder?

4.3.1.9. Provide a detailed description of the systems feeding and inserting process and include production rates.

4.3.1.10. Describe input speed and output speed for letters.

4.3.1.11. Describe proposed inserter capability for processing flats and include range of cycle speeds for sets of fifteen (15) to thirty (30) sheets.

4.3.1.12. What is your best speed for four (4) sheet (1/2 fold) sets

4.3.1.13. What is your best speed for 15 sheet sets (sub-set folded).

4.3.1.14. Describe the system feeder stations including any substrate tolerances and/or limitations.

4.3.1.15. Describe the feeding stations capacities

4.3.1.16. Describe the options for materials for the feeding stations

4.3.1.17. How many feeding stations are standard with the proposed inserter?

4.3.1.18. Describe the diverting capabilities and options for diversions.

4.3.1.19. Describe envelope feeding process(es).

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OFFEROR'S RESPONSE 3. Provide a detailed description of the base platform of the proposed inserting system.

4.4. PRIMARY FEEDER, INSERT FEEDERS, AND FOLDING OPTIONS OF THE

INSERTER

4.4.1.1. Provide a detailed description of the sheet feeder or feeders associated with the proposed inserting system.

4.4.1.2. Include the feed rate.

4.4.1.3. Describe any limitations or tolerances associated with the sheet feeder(s).

4.4.1.4. Describe the capacity of the sheet feeder(s).

4.4.1.5. Describe the folding capabilities of the inserter and how the folds are performed.

4.4.1.6. Describe any substrate limitations or tolerances associated with the sheet feeder(s).

4.4.1.7. Provide a detailed description of the insert feeders associated with the proposed inserting system.

4.4.1.8. Include the feed rate.

4.4.1.9. Describe the capacity of the insert feeder(s).

4.4.1.10. Describe any substrate limitations or tolerances associated with the insert feeders.

OFFEROR'S RESPONSE 4. Provide a detailed description of the primary feeder, insert feeders and folding options of the inserter.

4.5. INSERTER SUBSTRATE PROCESSING CAPABILITIES

4.5.1. List substrates that can be processed through the sheet feeder

4.5.1.1. Describe all applicable tolerances for the sheet feeder inserting stations

4.5.2. List substrates that can be processed through the inserting stations

4.5.2.1. Describe all applicable tolerances for the insert feeder stations.

4.5.2.2. Provide substrate list the can be processed through the insert feeders

4.5.3. Describe substrates that cannot be processed through the sheet feeder inserting stations

4.5.4. Describe the sheet feeder’s capability for processing the 20/25 lb paper currently utilized by

IDS as described in Section 3.4. Current Substrate (Paper) Utilization.

OFFEROR'S RESPONSE 5. Provide a detailed description of the inserter substrate processing capabilities.

4.6. INTEGRATION OF INSERTER INTO CURRENT IDS PRODUCTION

ENVIRONMENT

4.6.1. Describe how Offeror’s proposed inserter interfaces with the current Mail Run Data File

(MRDF) utilizing the stated specifications.

4.6.2. Describe how Offeror’s proposed inserter integrates with current Pitney Bowes Infinity

Postage Meters.

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4.6.3. Describe how the proposed inserter will be integrated with the current MRDF utilized by IDS

(See Attachment 1 for detailed MRDF specifications). All fields in the stated MRDF must be integrated. There may be no changes to the MRDF.

4.6.4. Describe how the proposed inserter will be integrated into the current Automated Document

Factory (ADF) environment as described in Section 3.3.

4.6.5. Describe how the proposed inserter will be integrated with the current Pitney Bowes Infinity

Postage Meters.

4.6.6. The Offeror shall demonstrate the successful integration, within the past two (2) years, of at least one similar production inserting system that meets or exceeds the minimum requirements stated in Section 3.4, into a printing and mailing environment that conforms to the key elements of the current IDS production environment as stated in Section 3.3.

OFFEROR'S RESPONSE 6. Describe the integration of the proposed inserter into the current IDS production environment.

4.7. INSERTER CAMERA AND BARCODE READING CAPABILITIES

4.7.1.1. Describe how the proposed inserter utilizes a camera or camera system for the input feeder document set control and document inserting instructions.

4.7.1.2. Identify the manufacturer and model of the proposed input feeder camera system.

4.7.1.3. Describe how the proposed inserter utilizes an output camera or camera system to confirm accuracy and completion of the inserting process for each set.

4.7.1.4. Identify the manufacturer and model of the proposed output camera system.

4.7.1.5. Describe the tolerances associated with barcode reading to include paper opacity limitations.

4.7.1.6. Describe barcode setup and changeover process for various barcode types and placements.

4.7.1.7. Describe optimal barcode tolerances including ink density.

4.7.1.8. Describe the proposed inserter input feeder camera capabilities and advantages.

4.7.1.9. Describe the proposed inserter output camera capabilities and advantages.

4.7.1.10. Describe the proposed inserter input feeder camera sensitivity adjustment process.

4.7.1.11. Describe the proposed inserter output camera sensitivity adjustment process.

4.7.1.12. Describe the proposed inserter’s standard barcode reading capabilities that are to be provided with the proposed inserter. The system must accurately read 2D barcode at rated production speed.

4.7.1.13. Describe the camera adjustment process including manual and automated options.

4.7.1.14. What side of the inserter is the camera mounted on?

4.7.1.15. Emphasize productivity or operator ease of use advantages associated with camera changeover process.

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OFFEROR'S RESPONSE 7. Provide a detailed description of the inserter camera and barcode reading capabilities.

4.8. OFFEROR’S RESPONSE FOR INSERTER OPERATOR INTERFACE FEATURES

AND CAPABILITIES

4.8.1. Describe the proposed inserters operator interface processes and capabilities.

4.8.2. Provide description of the proposed inserter’s productivity derived from operator interface features and operator ease of use advantages associated with the proposed inserter.

4.8.3. Provide description of the productivity and operator ease of use advantages associated with envelope change over processes to include average time required for a trained operator.

4.8.4. Provide description of the productivity and operator ease of use advantages associated with camera change over processes to include average time required for a trained operator.

OFFEROR'S RESPONSE 8. Provide a detailed description of the inserter operator interface features and capabilities.

4.9. OPERATOR TRAINING

4.9.1. Provide applicable operator training and operator reference materials in electronic format as

.pdf on CD, DVD, or thumb drive.

4.9.2. Describe training and operator reference materials, to include, but not be limited to, operator inserter operation, operator system maintenance, and operator preventive maintenance requirements.

4.9.3. Describe in detail the on-site training process(es) and ongoing operator support.

4.9.4. Provide a detailed description of operator access to help desk and remote support.

4.9.5. Offerors response shall include the provision of applicable training and operator reference materials in electronic format for review by the State.

4.9.6. Offeror shall provide training and operator reference materials with the Offeror’s bid response, to include operator maintenance and operator preventive maintenance requirements in electronic format as .pdf on CD, DVD, or thumb drive with the Bid Response.

OFFEROR'S RESPONSE 9. Provide a detailed description of the inserter operator training and include electronic copies of operator training and operator reference materials.

4.10. EQUIPMENT AND SOFTWARE MAINTENANCE SERVICES

4.10.1. Describe the provision of complete equipment and software maintenance services utilizing

Offeror’s employees for a minimum of one (1) production inserting system that is similar to the proposed inserting system and processes a similar or greater annual volume within the past two years.

4.10.2. Provide detailed discussion of Offeror’s equipment maintenance and software maintenance programs and service levels applicable to the proposed inserting system.

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4.10.2.1. Include service levels and maintenance programs for equipment repair, equipment preventive maintenance, and software maintenance.

4.10.2.2. Offeror shall identify and describe at a minimum, one (1) similar inserting system, and provide the estimated annual volume processed on the inserter.

4.10.2.3. The identified inserting system(s) shall be operated by at least one (1) of the entities included in Offeror’s references.

4.10.3. Discuss potential upgrades to inserting equipment, software, and peripheral devices, including printers that may be required over the term of the lease.

4.10.4. Describe Offeror’s expectations for first level operator maintenance functions to be performed by the IDS trained operator(s) as a component of the maintenance agreement.

4.10.5. List the maintenance processes required of trained operators, including operator performed preventative maintenance processes as specified in the maintenance agreement and the operator training and operations manuals.

OFFEROR'S RESPONSE 10. Provide a detailed description of the equipment and software maintenance services.

4.11. INSERTER MAINTENANCE AGREEMENT - MANDATORY REQUIREMENTS

4.11.1. Offeror shall provide a copy of the Offeror’s proposed Maintenance Agreement with the

Offeror’s Bid Response.

4.11.2. Offeror’s proposed Maintenance Agreement may not conflict with the Contract and Lease terms and conditions and shall be subordinated to the State of Colorado Lease Contract

Terms and Conditions which Contractor shall acknowledge as taking precedence over all other terms and conditions.

4.11.3. Maintenance agreements shall include the current IDS volume estimated to be processed on the proposed inserter of twelve million (12,000,000) cycle per year as stated in Section 3.3.

OFFEROR'S RESPONSE 11. Confirm that you meet all mandatory requirements and agree to all terms in Section 4.11.

4.12. INSERTER MAINTENANCE AGREEMENT - REQUESTED INFORMATION

4.12.1. Describe maintenance agreement options that provide optional modifications for additional volumes and which provide incremental bands of pricing for additional volumes.

4.12.2. Describe any maximum cycle count associated with the systems standard duty cycle.

4.12.3. Describe the maximum cycles associated with the standard maintenance agreement.

4.12.4. Describe in detail the service elements of the proposed system maintenance agreement.

4.12.5. Describe the proposed On Site Service response time.

4.12.6. Describe after hours and holiday availability.

4.12.7. Describe IDS base maintenance services for be two shifts 6 a.m. to 9 p.m. six days per week.

4.12.8. Describe how maintenance services shall provide the capability for IDS to flex to 24 hour, 7 days per week maintenance services to be scheduled in advance for peak production periods.

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4.12.9. Describe modification of the maintenance services for peak production periods shall be scheduled a minimum of two (2) weeks in advance of the effective date of the modified maintenance schedule. Peak production periods typically occur in quarterly month cycles.

4.12.10. Describe in detail the escalation process with the onsite technician cannot resolve a problem.

4.12.11. Describe in detail the expectation for downtime or for active production time.

4.12.12. Describe any applicable performance guarantees for active production time.

4.12.13. Describe the preventive maintenance schedules established for the proposed inserter?

4.12.14. Describe the estimated downtime associated with the preventive schedule maintenance procedures.

4.12.15. Describe examples of down time associated with the operation of the proposed system at the anticipated letter volumes.

4.12.16. Describe the inserter parts that will be stocked for onsite availability.

4.12.17. Describe the capability to provide overnight shipping with early morning delivery for parts that are not stocked onsite..

OFFEROR'S RESPONSE 12. Provide a detailed description of the inserter maintenance agreement.

4.13. PERFORMANCE STANDARDS AND PERFORMANCE MEASUREMENT

4.13.1. Mandatory Requirements

4.13.1.1. The State requires performance metrics that are measureable based on the required service level standards as stated in the above to be incorporated into the Lease Contract and the

Service Level provisions and requirements of the Maintenance Agreement.

4.13.1.2. IDS shall request on-site repair services for the proposed inserter via phone, email or text.

Each repair service request will be confirmed via email to the designated Contractor recipient(s) for confirmation emails which may include maintenance support personnel and service technicians per the terms of the Maintenance Agreement.

4.13.1.3. The designated Contractor contact(s) for repair service support requests from IDS shall provide email acknowledgement of receipt of the request for on-site repair services upon receipt of the request from IDS.

4.13.1.4. The State requires a minimum of a phone call to the IDS personnel associated with each repair service request within two (2) hours of the request. The Contractor phone call shall be confirmed via email to IDS by designated Contractor personnel.

4.13.1.5. If the phone contact or electronic contact does not provide a solution to the IDS repair service request, a technician is required to be on-site at the IDS location within four (4) hours of the Contractor receipt of the IDS repair service request.

4.13.1.6. On-site repair service requests that do not conform to the two (2) hour initial Contractor contact or the four (4) hour on-site requirement of Contractor technicians shall be noted as a deficiency in the monthly Summary of IDS On-Site Service Calls report.

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4.13.1.7. The Service Level agreement shall include a deduction to the monthly payment for the

Maintenance Agreement for failure by Contractor to provide on-site technician(s) within twenty-four (24) hours of Contractor receipt of repair service call by IDS.

4.13.1.8. The deduction shall be calculated to offset the loss of production costs that are incurred when the inserter is off line due to failure of the Contractor to provide technician(s) on-site per the Maintenance Agreement.

4.13.1.9. The deduction shall be based on the estimated average cost of daily production based on a volume of one million envelopes per month. The deduction to the scheduled monthly maintenance cost shall be 80% of the stated cost. This amount is intended to provide an additional incentive to the Offeror to provide the specified maintenance and/or repair services no later than 24 hours following the request by IDS for services.

4.13.1.9.1. Time frames that are outside of the established maintenance days do not apply to the calculation of time for provision of on-site repair. For instance if maintenance coverage is Monday through Saturday, Sunday will not be counted as a day without Contractor provision of on-site technician(s).

4.13.1.10. Monthly Performance Reviews

4.13.1.10.1. Contractor shall provide IDS with a monthly written Summary of On-Site Service Calls for repairs or for preventive maintenance by the 15 th day of the subsequent month.

4.13.1.10.2. Failure to provide the monthly summary by the 15 th or each month shall be noted as a performance deficiency in the subsequent month report.

4.13.1.10.2.1. The summary shall provide the following information

4.13.1.10.2.1.1. Date of Service Call

4.13.1.10.2.1.2. Response time from the time the service call is received

4.13.1.10.2.1.3. The reason for the IDS service call

4.13.1.10.2.1.4. An identification of the nature of the failure or the needed repair.

4.13.1.10.2.1.5. The date and time that the repair or service call is completed and the inserter is operational.

4.13.1.10.3. IDS shall provide the vendor with a written Monthly Summary of Performance

Deficiencies by the 20 th of the subsequent month that shall include detailed information for each month for all instances where Maintenance Services were not provided per the

Maintenance Service Level Agreement or where the repair services were unsatisfactory.

4.13.1.10.4. The Contractor shall provide a written response to each performance deficiency state on the Monthly Summary of Performance Deficiencies within ten (10) days of receipt of the

Summary from IDS. The response shall include corrective actions to be taken by the

Contractor for prevent recurrence of the deficiency.

4.13.1.10.4.1. Failure to provide the written response within ten (10) shall be recorded as a

Performance Deficiency.

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4.13.1.10.5. The Contractor and IDS shall schedule Quarterly Performance Review meetings to discuss the prior three (3) month’s performance with the purpose of recognizing the positive Contractor performance, providing solutions to any on ongoing problems, and to support a constant improvement of production performance by the inserter.

OFFEROR'S RESPONSE 13. Confirm that you meet all mandatory requirements and agree to all terms in Section 4.13.

4.14. REPORTING REQUIREMENTS

4.14.1. Mandatory requirements

4.14.2. The Contractor and IDS shall provide the reports listed in this section in the format directed by the Department and the reports shall contain the information required by Department.

4.14.2.1. Contractor monthly report - Summary of On-Site Service Calls.

4.14.2.2. IDS monthly report – Listing of recorded deficiencies in the maintenance services – provided to the Contractor.

4.14.2.3. Contractor responses to the recorded deficiencies – provided to IDS

4.14.2.4. Quarterly Business Report (QBR) – Quarterly Contractor Performance Report provided by

IDS to the Contractor as a component of Quarterly Performance Review meetings.

OFFEROR'S RESPONSE 14. Confirm that you meet all mandatory requirements and agree to all terms in Section 4.14.

4.15. START-UP AND CLOSEOUT PERIODS

4.15.1. Mandatory Requirements

4.15.1.1. The Contract shall have a Start-Up Period and a Closeout Period.

4.15.1.2. The Contractor’s start-up period is anticipated to begin on June 15, 2018 or upon execution of the Lease Contract and end on July 30, 2018.

4.15.1.3. Startup period is from the time of execution of Lease Contract execution to completion of delivery of inserter, setup and testing to confirm full operational functionality. To include any required interface to the Automated Document Factory (ADF) and the Mail Run Data

File (MRDF).

4.15.1.4. The initial operational period of the Contract is anticipated to begin at the end of the start-up period and will last for the estimated three-year term of the lease.

OFFEROR'S RESPONSE 15. Confirm that you meet all mandatory requirements and agree to all terms in Section 4.15.

4.16. REFERENCES

4.16.1. Mandatory requirements

4.16.2. Offeror shall provide three (3) references from customers who are operating an inserter similar to the Offeror’s proposed inserter and who are receiving full service maintenance services from the Offeror.

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4.16.3. Offerors shall provide the reference information using Appendix C – References CEDC

Form which shall be submitted with the Offeror’s bid response

OFFEROR'S RESPONSE 16. Confirm that you meet all mandatory requirements and agree to all terms in Section 4.16.

SECTION 5.0 COMPENSATION AND INVOICING

5.1. COMPENSATION

5.1.1. The compensation under the Contract shall consist of the monthly lease payments as specified in the Lease Contract for each month of the thirty-six (36) months of the lease term.

OFFEROR'S RESPONSE 17. Confirm that agree compensation terms and to the lease term in Section 5.1.

5.2. INVOICING AND PAYMENT PROCEDURES

5.2.1. The Contractor shall invoice the Department on a monthly basis, by the fifteenth (15th)

Business Day of the month following the month for which the invoice covers. The

Contractor shall not invoice the Department for a month prior to the last day of that month.

5.2.1.1. The invoice shall contain at a minimum, the following information for the month for which the invoice covers:

5.2.1.2. The month/year for which the invoice is issued.

5.2.1.3. The Lease Contract number

5.2.1.4. The scheduled monthly Lease Payment.

5.2.1.5. The scheduled monthly Maintenance Cost.

5.2.1.6. The cost for any overage per the Maintenance Agreement

5.2.2. The Department prefers that invoices be provided through email.

5.2.3. Payment of Invoices

5.2.3.1. The Department shall remit payment to the Contractor, for the accurate amounts shown on an invoice, after the Department’s acceptance of that invoice. Acceptance of an invoice shall not imply the acceptance or sufficiency of any work performed or deliverables submitted to the Department during the month for which the invoice covers or any other month. The Department shall not make any payment on an invoice prior to its acceptance of that invoice.

5.2.3.2. The Department will review the submitted invoice, and compare the information contained in the invoice to the Department’s information. The Department will only accept an invoice after it has reviewed the information contained on the invoice and determined that all amounts are correct.

5.2.3.3. In the event that the Department determines that all information on an invoice is correct, the Department shall notify the Contractor of its acceptance of the invoice, in writing.

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5.2.3.4. In the event that the Department determines that any information on an invoice is incorrect, the Department will notify the Contractor of this determination and what is incorrect on the invoice. The Contractor shall correct any information the Department determined to be incorrect and resubmit that invoice to the Department for review.

5.2.3.4.1. The Department will review the invoice to ensure that all corrections have been made.

5.2.3.4.2. If all information on the resubmitted invoice is correct, the Department will accept the invoice.

5.2.3.4.3. If any information on the resubmitted invoice is still incorrect, then the Department will return the invoice to the Contractor for correction and resubmission.

In the event that the Contractor believes that the calculation or determination of any payment is incorrect, the Contractor shall notify the Department of the error within thirty

(30) days of receipt of the payment or notification of the determination of the payment, as appropriate. The Department will review the information presented by the Contractor and may make changes based on this review. The determination or calculation that results from the Department’s review shall be final. No disputed payment shall be due until after the Department has concluded its review.

5.2.3.4.4. Notwithstanding anything to the contrary in the Contract, all payments for the final month of the Contract shall be paid to the Contractor no sooner than ten (10) days after the Department has determined that the Contractor has completed all of the requirements of the Closeout Period.

OFFEROR'S RESPONSE 18. Confirm that you meet all mandatory requirements and agree to all terms in Section 5.2.

5.3. PRICING

5.3.1. Offerors shall provide all pricing and information requested on Exhibit B – Pricing Sheet.

5.3.2. Offerors shall not modify or take exception with Exhibit B – Pricing Sheet.

5.3.3. Exhibit B – Pricing Sheet shall be submitted with the Offeror’s proposal by the Bid

Submission Deadline.

5.3.4. The State shall include Offeror’s pricing and information as stated on Exhibit B – Pricing sheet in the award evaluation process.

OFFEROR'S RESPONSE 19. What is Offeror’s pricing information? (To be provided through completion of Exhibit B – Pricing Sheet – Capital Lease and submission of the completed Pricing Sheet with the Proposal.

SECTION 6.0 EVALUATION METHODOLOGY

6.1. EVALUATION PROCESS

6.1.1. The evaluation of proposals will result in a recommendation for award of the Contract. The award will be made to the Offeror whose proposal, conforming to the solicitation, will be most advantageous to the State of Colorado, price and other factors considered.

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6.1.2. The Department will conduct a comprehensive, thorough, complete and impartial evaluation of each proposal received.

6.1.3. The Department will select a vendor in compliance with C.R.S. §24-103-203(7) which states, “The award shall be made to the responsible offeror whose proposal is determined in writing to be the most advantageous to the state, taking into consideration the price and evaluation factors set forth in the request for proposal”

6.1.4. The Department encourages proposals from Service-Disabled Veteran Owned Small

Businesses. Each Offeror that is a Service-Disabled Veteran Owned Small Businesses should submit verification that it is incorporated or organized in Colorado or maintains a place of business or has an office in Colorado and is officially registered and verified as a

Service-Disabled Veteran Owned Small Business by the Center for Veteran Enterprise within the U.S. Department of Veterans Affairs. (www.vip.vetbiz.gov)

6.2. EVALUATION COMMITTEE

6.2.1. An Evaluation Committee will be established utilizing measures to ensure the integrity of the evaluation process. These measures include the following:

6.2.1.1. Selecting committee members who do not have a conflict of interest regarding this solicitation.

6.2.1.2. Facilitating the independent review of proposals.

6.2.1.3. Requiring the evaluation of the proposals to be based strictly on the content of the proposals.

6.2.1.4. Ensuring the fair and impartial treatment of all Offerors.

6.2.2. The objective of the Evaluation Committee is to conduct reviews of the proposals that have been submitted, to hold frank and detailed discussions among themselves, and to recommend an Offeror for award.

6.2.3. The Evaluation Committee will evaluate proposals to determine if each Offeror met all mandatory qualification requirements. The mandatory qualification requirements are scored on a Met/Not Met basis and only those proposals found by the Evaluation Committee to meet all mandatory requirements can be considered for a Contract resulting from this solicitation.

6.2.4. Proposals will be evaluated by the Evaluation Committee using the evaluation criteria in

Section 6.4.