AMEND 1 - SV0105-20 12-9-19.doc.pdf

AMENDMENT OF SOLICITATION/ MODIFICATION OF CONTRACT

1. CONTRACT ID CODE

PAGE OF PAGES

2. AMENDMENT/MODIFICATION NO.

3. EFFECTIVE DATE

4. REQUISITION/PURCHASE REQ. NO.

5. PROJECT NO. (If applicable)

AMENDMENT #1 12/09/2019

6. ISSUED BY

CODE

7. ADMINISTERED BY (If other than Item 6)

UNICOR, Federal Prison Industries

Texarkana Filter

Texarkana, TX 75505-0000

See Block 6

8. NAME AND ADDRESS OF CONTRACTOR (No., street, country, State and Zip Code)

(x)

9A. AMENDMENT OF SOLICITATION NO.

X

SV0105-20

9B. DATED (SEE ITEM 11)

12/05/2020

10A. MODIFICATION OF CONTRACT/ORDER NO.

10B. DATED (SEE ITEM 13)

FACILITY CODE

11. THIS ITEM ONLY APPLIES TO AMENDMENT OF SOLICITATIONS

The above numbered solicitation is amended as set forth in Item 14. The hour and the date specified for receipt of Offers is extended, xxx is not extended.

Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended, by one of the following methods: (a) By completing items 8 and 15, and returning 1 copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted; or (c) By separate letter or telegram which includes a reference to the solicitation and amendment number. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE

DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you desire to change an offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference to the solicitation and this amendment, and is received prior to the opening hour and date specified.

12. ACCOUNTING AND APPROPRIATION DATA (If required)

13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS,

IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.

(X)

A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT ORDER NO. IN ITEM 10A.

B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying office, Appropriation date, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103 (b).

C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF :

BY MUTUAL AGREEMENT

D. OTHER (Specify type of modification and authority)

E. IMPORTANT : Contractor is not, XX is required to sign this document and return 1 copies to the issuing office.

14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where feasible.)

AMEND SOLICITATION #SV0105-20 AS FOLLOWS:

REPLACE STATEMENT OF WORK WITH THE ATTACHED. UPDATED SOLICITATION IS POSTED.

NO OTHER CHANGES AT THIS TIME.

Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore changed, remains unchanged and in full force and effect.

15A. NAME AND TITLE OF SIGNER (Type or print)

16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or print)

EDWIN INGRAM, SENIOR CONTRACTING OFFICER

15B. CONTRACTOR/OFFEROR

15C. DATE SIGNED

16B. UNITED STATES OF AMERICA

16C. DATE SIGNED

BY

//s//

12/09/2019

(Signature of the person authorized to sign)

(Signature of contracting officer)

NSN 7540-01-152-8070

PREVIOUS EDITION UNUSABLE

30-105

STANDARD FORM 30 (REV. 10-83)

Prescribed by GSA

FAR(48 CFR) 53.243

AMDENDMENT 1

ATTACHMENT 1

UPDATED STATEMENT OF WORK

12-09-19

1. Introduction and Overview

This statement of work is for marketing and manufacturing support for Heating, Ventilation and Air Conditioning filters, as well as other types of HVAC related filters. Federal Prison Industries, (FPI) is seeking to manufacture all types of HVAC filters in one or more of its factories.

1.1 Background

The FPI factory in Texarkana, TX manufactures several different types of HVAC filters. FPI is seeking a contractor who shall market various filters to federal government facilities. FPI will purchase all materials necessary for the manufacturing process of the filters from the contractor. The contractor shall propose a complete HVAC and air filtration solution for federal government customers. The contractor must achieve sales goals to sustain the factory in Texarkana, TX since FPI is self-sustaining. The contractor must also provide any necessary manufacturing support to the factory in Texarkana, TX, particularly for new products proposed.

Any quantities specified in this requirement are estimates only and will not obligate the Government.

1.2. Scope of Work

The contractor shall seek work on behalf of FPI for all federally funded HVAC and air filtration projects. The contractor must propose a full offering of filter products for all government customers. All materials shall be UL Listed.

FPI intends to purchase all materials from the contractor. The contractor shall propose a consignment program for high volume raw materials. Please see attached spreadsheets for these materials. The materials must include media for pleated filters, die cuts for pleated filters, wire for pleated filters, and cardboard shipping boxes for pleated filters.

Sales and Sales Fee

The contractor shall obtain sales of filter products of the following minimum amounts and based upon the federal government fiscal year:

2020 $5.3 Million 2021 $5.7 Million 2022 $6.0 Million 2023 $6.3 Million 2024 $6.3 Million

If the Contractor fails to generate the required sales amount, the following reduction in Sales Fees will be taken:

Sales less than 100% but more than 90%; reduction of 10% Sales between 80% and 90%;

reduction of 15% Sales between 70% and 79%; reduction of 20% Sales between 60% and 69%; reduction of 25% Sales of less than 60%; reduction of 50% of the sales fee.

If the contractor exceeds sales by more than 10%, the Contractor will be paid one additional percent for sales above the required sales levels required for the fiscal year.

FPI will pay the sales fee to the Contractor on a monthly basis. The contractor shall propose a sales fee as a percentage of monthly sales. Sales are hereby generally defined as filter products shipped to the FPI customer and are exclusive of any design, installation, warranty work, disposal, freight, etc., paid for by potential customers. A sale is not realized until FPI ships all products to the customer, and generates an invoice to the customer. Each quarter, the Contractor and FPI will reconcile any discrepancies in reported sales and accordingly adjust the amount paid under the fee if necessary.

The sales fee shall not include any actual cost of freight to ship the product to the customer.

If there is a discrepancy between FPI and the Contractor, the Contracting Officer shall make the final determination.

Sales Representation

The success of this contract is in large part based on the ability of the contractor to achieve the specified sales goals. Without achievement of the goals, inmate employment and the economic viability of the program will diminish greatly. Should the contractor fail to meet the sales goals, FPI reserves the right to terminate this contract at no cost to the government.

The Contractor will be responsible for the entire sales process from initial lead identification through the generation of a quote to the customer. Sales will be consistent with best business practices.

It is the Contractor's responsibility to provide the sales support for this initiative. It is the Contractor's responsibility to achieve the sales goals.

FPI will provide, at its discretion, sales support to the Contractor when requested. Contractor, along with its private sector partners, will handle all sales related phone calls, quotations and service the customer. The Contractor will utilize its private sector partners' web sites', "800" numbers, staff, etc.

UNICOR will pay the freight to customers on sales orders of $2,000.00 or more.

Every effort shall be made to ensure that quoted prices to customers are a minimum of 55% more than the cost of raw materials plus commission plus freight for the total order.

Deviations must be approved by either the Factory Manager or the Program Manager. It may be necessary to re-negotiate the commission structure by quote in order to become competitive enough to get the customer order.

Marketing Support: FPI will include the products/services under this agreement in the usual catalogs, flyers, brochures, etc., that FPI produces and distributes as part of FPI usual marketing effort. FPI will make available to the Contractor, its customer e-mail addresses, web resources, customer mailing addresses, etc. Contractor will provide for the reasonable cost associated with printing and distributing of marketing literature.

Contractor shall provide a non-mandatory source sales approach.

Customer Service: It is the Contractor's responsibility to provide pre and post customer service support. This includes, but is not limited to, testing of data, working with customers in the customers' facility, disposal of product, design of unique or custom filtration systems, certifications, etc. Contractor will implement a quality control plan part of which will be to conduct on-going customer satisfaction surveys as well as to document all customer complaints and to resolve those complaints within a reasonable period of time. Contractor will provide FPI with the results of the customer satisfaction survey as well as customer complaints and resolution on a quarterly basis. Contractor will submit its quality control plan to FPI within 30 days from the date of this Agreement.

The Contractor shall work with factory personnel to ensure that customer orders are entered into the FPI SAP system in a timely manner. The factory personnel will enter the customer orders into the FPI SAP system.

Technical Support: Contractor will provide FPI the technical support required to ensure smooth implementation of any additional items that FPI chooses to vertically integrate as well as ongoing technical support at FPI’s request during the life of this contract.

Technical Support will include, at a minimum but is not limited to, product, manufacturing, factory, and materials management support.

Vertical Integration

UNICOR reserves the right to fully manufacture any proposed items at any time during the contract.

The Contractor shall ensure that customer orders are sent to UNICOR on the same date as receipt, to ensure they are entered in to UNCIOR’s SAP system in a timely manner.

Technical Support: Contractor will provide FPI the technical support required to ensure smooth implementation of any additional items that FPI chooses to vertically integrate as well as ongoing technical support at FPI’s request during the life of this contract.

Technical Support will include, at a minimum but is not limited to, product, manufacturing, factory, and materials management support.

Product Design: Contractor will provide design services, testing services, certification services and technical support services for all products listed in this contract and for any new products that might be developed under this agreement.

Manufacturing Support: Contractor shall provide all manufacturing support necessary to ensure that factory lay out, bills of materials, time studies, labor requirements, training, etc., optimize production and ensure that manufacturing support is available to FPI on an ongoing basis, if needed.

Materials Management: Contractor will suggest material levels to ensure that appropriate inventories are kept at minimum levels while maintaining adequate inventories necessary to meet industry standard delivery, quality and price standards to potential customers.

Material quality shall meet or exceed industry standards. Contractor will provide FPI with market priced raw materials for this initiative. If FPI determines that FPI can procure materials for 90% or less of the prices being charged by the contractor, FPI, at its option, can either procure the materials from sources other than the contractor, or allow the contractor to reduce its prices for raw materials to acceptable levels.

The contractor shall be able to provide, in conjunction with FPI, a complete HVAC filter program to all customers. Any materials not classified as raw materials shall be provided by the contractor, and in such a manner as to satisfy the customer requirement.

The contractor shall propose a consignment program for high volume raw materials that must include at a minimum: pleated media, die cuts for pleated filters, wire for pleated filters, and cardboard shipping boxes for pleated filters. At the end of this contract term, any unused consignment materials shall be returned to the contractor at no cost to UNICOR.

Raw Materials: Raw materials costs shall be specified within the solicitation, for any materials not proposed for the consignment program. Any raw materials not proposed for consignment shall be delivered to the factory within 10 calendar days after contractor receipt of a delivery order. If minimum buys for non-consignment materials are required, the contractor shall state the quantity of the minimum buy as part of the proposal.

Equipment: Should additional equipment be required, the contractor shall purchase the additional equipment, install all equipment, provide all warranties, provide the necessary training, and have the equipment up and running in the factory within 90 days after a delivery order has been issued. The contractor shall be reimbursed for the actual cost of the equipment. There shall be no mark up on any equipment purchased by the contractor.

Contractor agrees to provide all sales documentation on equipment the contractor buys in order to substantiate equipment costs.

None of the services listed above constitute an employer/employee relationship.

1.3 Objectives

The expected objective resulting from this contract is continued business for the Filter factory in Texarkana, Texas.

Period of Performance

The period of performance shall be one (1) base year with four (4) option years.

1.4 Projected Cost

The estimated cost of this contract during five years may be in excess of $10,000,000.

2. Requirements

The contractor shall seek work to be manufactured in the FPI factory at Texarkana, TX. The contractor must provide each customer with a competitively priced quote. The contractor shall provide a raw materials consignment program.

3. Additional Requirements

1. UNICOR must maintain revenue recognition and remain within policy guidelines at all times. Therefore, the contractor must provide a signed bill of lading and packing list of accessory items; and/or drop shipments, to UNICOR, on the same day the orders are shipped.

2. For FOB destination orders - UNICOR will pay the freight on sales orders of $2k or more.

3. Contractor must be able to sell each item above the cost for UNICOR to produce the item.

4. Contractor must follow UNICOR’s month and year end shipping guidelines.

Destination shipping cut-off dates are usually 5 days before the last business day of the month. Origin shipping is usually the last day of the month with a specific cut-off time so deliveries notes can be entered. Year-end cut off dates vary. UNICOR will provide these dates to the Contractor each month.

5. Non-filter related items are not allowed under this contract.