Schedule A - Statement of Work.docx

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STATE OF MICHIGAN

Request For Proposal Dept. 171 No.180000002508 Asphalt Patching and Sealing Equipment

SCHEDULE A

STATEMENT OF WORK

CONTRACT ACTIVITIES

This schedule identifies the anticipated requirements of any Contract resulting from this RFP. The term “Contractor” in this document refers to a bidder responding to this RFP.

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

BACKGROUND

The State of Michigan is requesting bids for Asphalt Patching and Sealing Equipment for construction, scheduled maintenance and emergencies.

1. Specifications

1.1 The Contractor must provide the following:

The Contractor is to provide a Roadway Spray Injection Patching Trailer per Schedule C - Specifications.

1- Reference Item – Spray Injection Patch Trailer Make: Durapatcher Model: P2 Additional Makes (If applicable): Crafco, Schwarze, and KM International 2- Reference Item – Spray Crack Sealer Trailer Make: Crafco Model: 47600SC100: E-Z Series II Additional Makes (If applicable): Durapatcher, Schwarze, and KM International 3- Reference Item – Asphalt Recycler Trailer Make: KM International Model: KM T-2 Additional Makes (If applicable): Crafco, Durapatcher, and Schwarze

Brands or trade names are for identification purposes only and do not limit the bidder to such brands.

a) The specified equipment, must be the latest model in current production, satisfactory to meet the performance and design characteristics required in the specification.

b) The specified equipment, shall be built in accordance with the U.S. Government, American National Standards (ANSI) and Federal and Michigan’s Occupational Safety and Health Administration (OSHA& MIOSHA) standard, and American Association of State Highway and Transportation Officials (AASHTO).

c) The specified equipment, must be delivered fully assembled and equipped with manufacturer’s standard equipment necessary for operation.

d) The Contractor is to submit manufacturer's product literature for the make and model offered with the bid.

e) The literature is to show supporting data for the performance and design specifications described within Attachment A.

f) The Contractor may offer an alternate bid that varies from the specifications. An alternate bid must clearly describe all variances from the specifications and the proposal must include descriptive literature that contains complete specifications, if available.

1.2 Solicitation Options

a) The Contractor must provide deliverables, including the staffing to accomplish all service incidentals necessary to complete the work, as set forth in this solicitation.

b) Bidders may choose to bid on certain parts of this solicitation, for example, sale of equipment and/or equipment rental. Bidder must be a licensed distributor or manufacturer to be eligible to bid.

A. EQUIPMENT FOR PURCHASE

1. Warranties

a) Contractor shall provide a one (1) year warranty on parts and labor or the manufacturer’s warranty, whichever is greater.

b) The warranty shall start when the State makes payment after equipment is checked and is deemed to be in full compliance of the specifications.

c) Describe any warranties for products offered, and service work performed under this contract.

d) Explain the process for reporting warranty issues and how the Contractor will handle any repairs or replacements.

e) The State reserves the right to require additional warranties other than those identified by the Contractor in its response to this RFP.

2. Recall Requirements and Procedures

The Contractor shall notify the State and/or the ordering entity within 48 hours of a recall notice.

3. Service Levels

3.1 Time Frames

The State would prefer that Contractors provide information regarding standard and “quick-ship” delivery programs available for each type of equipment. Please provide the delivery time associated with each program, and identify shipping program limitations.

All Contract Activities must be delivered within 120 calendar days from receipt of order. The receipt of order date is pursuant to Section 2, Notice provisions of the Standard Contract Terms.

3.2 Delivery

Delivery will be expected within 120 calendar days for special orders and out of stock items, and 30 calendar days for in-stock items, upon date of order. Delivery will be made to the requested location and shall be F.O.B. Delivered or charged on a mileage rate or a one-time charge by Region (see Schedule D – Prosperity Regions) per Schedule B - Pricing.

The State prefers Delivery terms that would provide unencumbered service with the most competitive rates. The Contractor must select between A. or B. below for their primary shipping method.

A. F.O.B. Delivered Items

Prices shall be quoted "F.O.B. Delivered" with transportation charges prepaid on ALL orders for State of Michigan and Extended Purchasing Participants. These terms apply to ALL locations in the State of Michigan. Other F.O.B. terms will not be accepted and may disqualify a dealer from further consideration.

B. F.O.B. dealership Items

Prices shall be quoted "F.O.B. Dealership" with transportation charges prepaid to the primary Contractor location on all orders for State of Michigan and Extended Purchasing Participants. Contractors must also quote a delivery cost per Schedule B – Pricing, to facilitate calculation of delivery cost to various locations within Michigan. The delivery cost per Schedule B – Pricing, will be added to the equipment price quoted to determine the “Total Price” for “F.O.B. Dealership” items. Mileage will be calculated based upon the “Official Michigan Department of Transportation Highway Map”. Other F.O.B. terms will not be accepted and may disqualify a dealer from further consideration. The State reserves the right to make their own shipping arrangements.

Freight Charges - Should an Agency order items that are below the minimum order requirement of the Contract, or should a Contractor quote F.O.B. Shipping Point on one-time purchases, the Contractor should choose the most economically advantageous carrier and must be approved by the using agency.

United Parcel Service (UPS) must be used in instances where the weight of the shipment is less than 150 lbs., or where shipments could be separated into smaller parcels such as three (3) 50 lb. packages.

If the Contractor fails to follow these shipping instructions, the State shall pay the shipping costs on the Contractor's invoice, minus the difference for the amount that was charged and the amount that would have been charged if the requested carrier had been used. The State reserves the right to arrange their own freight.

3.3 Training

The Contractor must provide the following training:

A comprehensive orientation training shall be provided at delivery or at an alternate time requested by the State. The training shall include equipment operation, maintenance, and inspection practices.

Upon request, the Contractor shall provide 8 hours of mechanics and operators training for up to eight (8) employees. The training is to be held at each ship to address. The Contractor shall provide unit pricing for training in Schedule B, Pricing.

B. RENTAL/LEASE EQUIPMENT

(Bidders providing rental or lease equipment in this solicitation must complete this Section)

1. Specifications

a) The Contractor shall provide Asphalt patching/sealing equipment for rental and/or lease that is similar in scope to equipment included in Schedule C, Specifications.

b) Brand or trade names referred to herein are for identification purposes only, and do not limit the Contractor to such brands, provided alternates offered are equal in quality and function to those specified.

c) In addition, the Contractor shall provide a complete list of asphalt patching/sealing equipment available for rental and/or lease by category (e.g. patchers, sealers, etc.) in Schedule B – Pricing, Catalog Pricing for Rental. The State Contract Administrator may allow other types of equipment for rental/lease on the Catalog Schedule upon award and/or at a later date.

The list shall include:

i. Daily, weekly, and monthly rental/lease rates.

ii. Percentage discount offered by category for such rates.

iii. Only listed items that meet these requirements shall be included under this contract.

d) All rental/leased equipment is to meet or exceed applicable federal and state safety standards as mandated by OSHA, and MIOSHA Motor Carrier Division. This equipment is to meet or exceed applicable American National Standards Institute (ANSI) specifications. The Contractor will provide written documentation guaranteeing compliance with all safety standards.

e) The Contractor shall provide written documentation confirming satisfactory testing on equipment where mandated by law (to include but not limited to: stress testing, dielectric testing, visual inspections) completed by a licensed and reputable testing firm.

Rental equipment shall be no more than four (4) years old. Equipment leased shall be the newest model year.

2. Availability and Delivery of Equipment

a) Rental and Lease Equipment shall be available statewide. Statewide availability includes ALL locations of the Upper and Lower Peninsula.

b) All requested orders must be delivered within two (2) calendar days/48 hours after receipt of order.

c) Emergencies will be responded to within one (1) to six (6) hours. Equipment shall be available as both F.O.B. delivered and F.O.B. pick-up.

d) No premium rates will be charged for delivery after normal business hours.

e) Rental or leased equipment items shall be fully fueled and operational at the time of pick-up or delivery.

f) The Contractor will be required to perform a walk-around equipment inspection at the time of delivery and pickup.

g) The Contractor, or their Designee and the Program Manager or their Designee, shall document the inspection by mutual execution of an inspection document provided by the Contractor.

h) The State is responsible for refueling all rented equipment upon its return.

3. Maintenance/Service

a) The Contractor will be responsible for all maintenance/service necessary to maintain satisfactory operation of rental equipment at no cost to the State.

b) Equipment shall be serviced according to manufacturer specifications. The Contractor shall maintain an equipment schedule for service and retain complete lifetime service records for all equipment.

c) If a repair is needed, and requires the piece of equipment to be out of service, the Contractor shall provide a replacement.

d) Contractor will maintain a Dedicated Product Support Department to ensure proper function of rented or leased equipment.

e) On-site maintenance must be performed according the recommended manufacturer maintenance schedule.

4. Training

The Contractor must provide the following training:

An orientation training shall be provided upon request at the time of delivery. The training shall be deemed sufficient by the State, to include detailed equipment operation and minor maintenance and inspection practices.

C. GENERAL REQUIREMENTS

1.1 Quality Assurance Program

Explain your Quality Assurance Program(s).

1.2 Incentives

a) Please provide discount information offered on Purchase, Rental, or Lease for all catalog categories. Contractor shall reference all categories within their catalog(s). This must include all options and attachments for base model equipment.

The bidder is to provide information on multi-unit discounts for catalog items per Schedule B, Pricing.

b) Explain any special incentives or services including, but not limited to, return policies, trade-in programs, etc.

2.1 Technical Support, Repairs and Maintenance

a) The Contractor must specify its toll-free number for the State to make contact with the Contractor for technical support, repairs, and maintenance. The Contractor must be available for calls and service during the hours of 8 am to 5 pm EST.

b) When providing technical support, the Call Center must resolve the caller’s issue within 30 minutes. If the caller’s issue cannot be resolved within 2 hours, on-site service must be scheduled. The on-site service must be performed within 36 hours of the time the issue was scheduled for service.

2.2 Reporting

The Contractor must submit, to the Contract Administrator or their designee, the following written reports:

a) Maintenance/service report

b) Regional rental report

c) Regional purchase report

d) By the second Friday of every December, the Contractor must submit a report of recycled content in commodities sold in that calendar year to Yvon Dufour or Designee, DTMB Procurement.

2.3 Meetings

The Contractor must attend the following meetings:

a) Kick-off meeting within 30 calendar days of the Effective Date.

b) The State may request other meetings, as it deems appropriate.

3. Staffing

3.1 Contractor Representative

The Contractor must notify the Contract Administrator at least 30 calendar days before removing or assigning a new Contractor Representative.

3.2 Customer Service Toll-Free Number

The Contractor must specify its toll-free number for the State to make contact with the Contractor Representative. The Contractor Representative must be available for calls during the hours of 8 am to 5 pm EST.

3.3 Disclosure of Subcontractors

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

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

The relationship of the subcontractor to the Contractor.

Whether the Contractor has a previous working experience with the subcontractor. If yes, provide the details of that previous relationship.

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

The subcontractor and/or supplier will attach a statement addressed to the Contractor verifying that the warranty will be transferable to the State; this statement is to include signatures from the supplier and/or subcontractor AND the manufacturer.

3.4 Security

The Contractor may be subject the following security procedures:

Valid proof of State ID for delivery personnel entering secured locations.

The Contractor must explain any additional security measures in place to ensure the security of State facilities.

The bidder’s staff may be required to make deliveries to or enter State facilities. The bidder must: (a) explain how it intends to ensure the security of State facilities, (b) whether it uses uniforms and ID badges, etc., (c) identify the company that will perform background checks, and (d) the scope of the background checks. The State may require the Contractor’s personnel to wear State issued identification badges.

4. Pricing

4.1 Price Term

a) Pricing is firm for a 365 day period (“Pricing Period”). The first pricing period begins on the Effective Date. Adjustments may be requested, in writing, by either party and will take effect no earlier than the next Pricing Period. The State reserves the right to adjust the pricing period and allow automatic updates with limitations.

f) Pricing on all items listed in Schedule C, Specifications (or approved alternates) shall be firm-fixed. All remaining items within Contractor’s “*catalog” shall be available at a firm-fixed discount. The State Contract Administrator may allow other types of equipment for rental/lease on the Catalog Schedule upon award and/or at a later date.

b) All “*catalog” pricing must be published and available at all times via website access, and/or electronic/printed price pages per Schedule B - Pricing. Price quotes issued from the Contractor to the State must be verifiable via published pricing. The State reserves the right to limit “catalog” items at any time for any reason. It is expected the Contractor’s Catalog items shall provide the best prices available to the State at all times and be firm-fixed. The State may remove items from the “Catalog” at any time without cause. Catalog pricing shall be submitted in the “Catalog Pricing” page, of Schedule B – Pricing.

*“Contractor’s Catalog” consists of Schedule B - Pricing

4.2 Price Changes

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

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

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

4.3 Electronic Catalog

To enable catalog management functionality, the Contractor may be required to supply the State with product and pricing information as identified in Schedule F – SIGMA Catalog Template of this RFP. The Contractor must supply the State with updated product and pricing information over the duration of the Contract using the then- current catalog template provided by the State. Product and price changes provided in this manner will not take effect until the catalog is updated in the State’s procurement system.

5. Ordering

5.1 Authorizing Document

The appropriate authorizing document for the Contract will be a blanket purchase order (Termed as a Direct Order (DO) in SIGMA).

5.2 Order Verification

The Contractor must have internal controls, approved by DTMB-Procurement, to verify abnormal orders and to ensure that only authorized individuals place orders.

6. Acceptance

6.1 Acceptance, Inspection and Testing

The State will use the following criteria to determine acceptance of the Contract Activities:

a) Equipment shall be delivered in new condition. Damaged equipment will not be accepted. The Contractor will repair or replace the damaged equipment at the Contractor’s expense.

b) The Contractor shall provide documentation upon delivery that provides itemized deliverables.

c) Acceptance is not complete for partial deliveries until final deliverables are received.

6.2 Final Acceptance

a) The Contractor shall deliver the equipment. The State, or their designee, shall inspect the equipment and approve acceptance of goods upon delivery.

b) All set-up and/or training and orientation shall be completed.

c) Per Standard Contract Terms, Section 16, Acceptance.

7. Invoice and Payment

7.1 Invoice Requirements

All invoices submited to the State must include: (a) date; (b) purchase order; (c) quantity; (d) itemized description of the Contract Activities; (e) unit price; (f) shipping cost (if any); and (g) total price; and (h) contract number.

7.2 Payment Methods

The State will make payment for Contract Activities by EFT as outlined in section 20 of Standard Contract Terms.

8. Additional Requirements

8.1 Environmental and Energy Efficient Products

The Contractor must provide products that meet the following environmental or energy efficient standards:

(OR)

The Contractor must identify any energy efficient, bio-based, or otherwise environmental friendly products used in the products. Contractor must include any relevant third-party certification, including the verification of a United States department of agriculture certified bio based product label.

8.2 Hazardous Chemical Identification

In accordance with the federal Emergency Planning and Community Right-to-Know Act, 42 USC 11001, et seq., as amended, the Contractor must provide a Material Safety Data Sheet listing any hazardous chemicals, as defined in 40 CFR §370.2, to be delivered. Each hazardous chemical must be properly identified, including any applicable identification number, such as a National Stock Number or Special Item Number.

The Contractor must identify any hazardous chemicals that will be provided under any resulting contract.

8.3 Mercury Content

Pursuant to MCL 18.1261d, mercury-free products must be procured when possible. The Contractor must explain if it intends to provide products containing mercury, the amount or concentration of mercury, and whether cost competitive alternatives exist. If a cost competitive alternative does exist, the Contractor must provide justification as to why the particular product is essential. All products containing mercury must be labeled as containing mercury.

8.4 Brominated Flame Retardants

The State prefers to purchase products that do not contain brominated flame retardants (BFRs) whenever possible. The Contractor must disclose whether the products contain BFRs.

8.5 Licensing Agreement

The Contractor must provide a copy of any applicable licensing agreement.

8.6 Key Personnel

The Contractor must appoint one individual who will be directly responsible for the day to day operations of the Contract (“Key Personnel”). Key Personnel must be specifically assigned to the State account, be knowledgeable on the contractual requirements, and respond to State inquires within 8 hours.

The Contractor may not remove or assign Key Personnel without the prior consent of the State. Prior consent is not required for reassignment for reasons beyond the Contractor’s control, including illness, disability, death, leave of absence, personal emergency circumstances, resignation, or termination for cause. The State may request a résumé and conduct an interview before approving a change. The State may require a 30 calendar day training period for replacement personnel.

The Contractor must identify the Key Personnel, indicate where they will be physically located, describe the functions they will perform.

8.7 Organizational Chart

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

9. Invoice Credits

Late or improper completion of the Contract Activities will cause loss and damage to the State and Extending Purchasing Participants and it would be impracticable and extremely difficult to fix the actual damage sustained by the State and/or Extending Purchasing Participants. Therefore, if there is late or improper completion of the Contract Activities, the State, and the Ordering Entity are entitled to collect invoice credits in the amount of 2/10th of 1% of the Purchase Order for each day the Contractor fails to remedy the late or improper completion of the Work.

10. Liquidated Damages

Unauthorized Removal of Key Personnel will interfere with the timely and proper completion of the Contract, to the loss and damage of the State, and it would be impracticable and extremely difficult to fix the actual damage sustained by the State. Therefore, the State may assess liquidated damages against Contractor as specified below.

The State is entitled to collect $500 per individual per day for the removal of any Key Personnel without prior approval of the State.

The State is entitled to collect $500 per individual per day for an unapproved or untrained key personnel replacement.

Version 1 Revised Date: 7/28/2017