User_Instructions_1-22-72-02,_Supplement_7.docx

Department of General Services Procurement Division 707 Third Street, 2nd Floor West Sacramento, CA 95605-2811

STATE OF CALIFORNIA

DEPARTMENT OF GENERAL SERVICES

PROCUREMENT DIVISION

Contract Mandatory 1-22-72-02 Contract User Instructions – *Supplement 7*

Page 12 *07/03/2025* State of California

STATEWIDE CONTRACT

USER INSTRUCTIONS

All changes to most recent Supplement are in bold red italic. Additions are enclosed in asterisks, *, and deletions are enclosed in brackets, [].

MANDATORY

*Supplement 7* *Incorporates Supplements 1–7*

The contract user instructions, products, and pricing are included herein. All purchase documents issued under this contract incorporate the contract terms and applicable California General Provisions:

Non-IT General Provisions (rev 11/19/2021) (https://www.dgs.ca.gov/-/media/199A6A32E4DE4BECAFF4EFA7194350CD.ashx) Cal eProcure link: www.caleprocure.ca.gov

ORDER PLACEMENT INFORMATION

Mailing Address:

American Textile Systems 10631 Hathaway Dr.

Santa Fe Springs, CA 90670 Fax:

(562)229-0597

Contact Information:

American Textile Systems Julia Weber

Phone: (562)307-0762 Email:Julia@amtexsys.com

All changes to most recent Supplement are in bold red italic. Additions are enclosed in asterisks; deletions are enclosed in brackets.

SUMMARY OF CHANGES

· Contract has been extended through September 06, 2026.* *7/3/2025*

· State Contract Administrator information on page 1 of User Instructions has been updated.

· Article 24 – Contract Administrator – Contract Administrator information has been updated.

7/1/2025

· Section 36: The entire language for GenAI has been updated.

04/09/2025

· State Contract Administrator information on page 1 of User Instructions has been updated.

· Article 24 – Contract Administrator – Contract Administrator information has been updated.

· Article 35: Vetted Forms/Certifications language has been updated.

· Article 36: Exemption to GEN-AI Procurement Procedures language has been added.

07/31/2024

· Front Page: State Contract Administrator has been changed from Willie Orphe to Jamie Boes.

· Article 24: State Contract Administrator has been changed from Willie Orphe to Jamie Boes.

01/24/2024

· Article 34: Certification of Payments to DVBE Subcontractors has been changed.

12/13/2023

· Front Page: State Contract Administrator has been changed from Wei Peach to Willie Orphé III.

· Article 24: State Contract Administrator has been changed from Wei Peach to Willie Orphé III.

11/17/2022

All other terms and conditions remain the same.

TABLE OF CONTENTS

SCOPE

The State’s contract with American Textile Systems (Contractor) provides Textiles (Towels, Washcloths, Cotton and Wood Blankets, and Acrylic Blend Blankets) at contracted pricing to the State of California and local governmental agencies in accordance with the requirements of Contract # 1-22-72-02. The Contractor shall supply the entire portfolio of products as identified in the contract and will be the primary point of contact for data collection, reporting, and distribution of Textiles to the State.

The contract term is for three (3) years with an option to extend the contract for two (2) additional one (1) year periods or portion thereof. The terms, conditions, and prices for the contract extension option shall be by mutual agreement between the Contractor and the State. If a mutual agreement cannot be met the contract will expire at the end of the current contract term.

CONTRACT USAGE/RULES

State Departments

· The use of this contract is mandatory for all State of California departments.

· State departments must adhere to all applicable State laws, regulations, policies, best practices, and purchasing authority requirements, e.g. California Codes, Code of Regulations, State Administrative Manual, Management Memos, and State Contracting Manual Volume 2 as applicable.

· Prior to placing orders against this contract, State departments must have been granted non-IT purchasing authority by the Department of General Services, Procurement Division (D GS-PD) for the use of this statewide contract. State departments that have not been granted purchasing authority by DGS-PD for the use of the State’s statewide contracts may contact DGS-PD’s Purchasing Authority Management Section by e-mail at pams@dgs.ca.gov.

· State departments must have a Department of General Services (DGS) agency billing code prior to placing orders against this contract. Ordering departments may contact their Purchasing Authority contact or their department’s fiscal office to obtain this information.

Local Governmental Agencies

· Local governmental agency use of this contract is optional.

· Local government agencies are defined in Public Contract Code Chapter 2, Section 10298 (a) (b) and 10299 (b); this includes the California State Universities (CSU) and University of California (UC) systems, K-12 schools and community colleges empowered to expend public funds for the acquisition of products While the State makes this contract available to local governmental agencies, each local governmental agency should determine whether this contract is consistent with its procurement policies and regulations.

· Local governmental agencies shall have the same rights and privileges as State departments under the terms of this contract. Any local governmental agencies desiring to participate shall be required to adhere to the same responsibilities as do State departments and have no authority to amend, modify or change any condition of the contract.

· A DGS issued billing code is not required for local governmental agencies to place orders against this contract.

Unless otherwise specified within this document, the term “ordering agencies” will refer to all State departments and/or local governmental agencies eligible to utilize this contract. Ordering and/or usage instructions exclusive to State departments or local governmental agencies shall be identified within each article.

DGS ADMINISTRATIVE FEES

1. State Departments The DGS will bill each State department an administrative fee for use of this statewide contract. The administrative fee should NOT be included in the order total, nor remitted before an invoice is received from DGS.

Current fees are available online in the Price Book & Directory of Services (https://www.dgs.ca.gov/OFS/Price-Book) (go to Price Book Download and click on Purchasing under Procurement Division).

Local Governmental Agencies For all local government agency transactions issued against the contract, the Contractor is required to remit the DGS-PD an Incentive Fee of an amount equal to 1.25 percent of the total purchase order amount excluding taxes and freight. This Incentive Fee shall not be included in the local governmental agency’s purchase price, nor invoiced or charged to the local governmental agency. All prices quoted to local governmental agencies shall reflect State contract pricing, including any and all applicable discounts, and shall include no other add-on fees.

SB/DVBE OFF-RAMP PROVISION

There is no SB/DVBE off ramp associated with this contract.

EXEMPT PURCHASES

There are no exempt purchases associated with this contract.

PROBLEM RESOLUTION/SUPPLIER PERFORMANCE

Ordering agencies and/or Contractor shall inform the State Contract Administrator of any technical or contractual difficulties encountered during contract performance in a timely manner. This includes and is not limited to informal disputes, supplier performance, outstanding deliveries, etc. The ordering agency should include all relevant information and/or documentation (e.g., purchase documents).

CONTRACT ITEMS

All available line items and associated prices are listed on Attachment A, Contract Pricing.

SPECIFICATIONS

All products listed on Attachment A, Contract Pricing, conform to the State of California Bid Specification Numbers as follows:

· Attachment B1 - 8305-5768A titled Towels, Terry Cloth, dated 7/23/2021

· Attachment B2 - 8305-5768B titled Hand Towels, Cotton Huck Cloth, dated 7/20/2021

· Attachment B3 - 8305-5768C titled Blanket, Wool Blend, dated 7/15/2021

· Attachment B4 - 8305-5768D titled Blanket, Cotton Thermal, dated 7/15/2021

· Attachment B5 - 8305-5768E titled Blanket, Acrylic Blend, dated 7/15/2021

CUSTOMER SERVICE

Contractor will provide office and personnel resources for responding to requests, including telephone coverage weekdays during the hours of 8:00 AM through 5:00 PM (PT).

Product Substitutions Product substitution shall be in accordance with the General Provisions (rev 11/19/2021), Article 16 entitled “Substitutions”.

PROMOTIONAL PRICING

The Contractor shall immediately notify the State Contract Administrator of all manufacturer’s price declines and ordering agencies shall receive full benefit of such declines.

PURCHASE EXECUTION

1. State Departments Std. 65 Purchase Documents State departments not transacting in FI$CAL must use the Purchasing Authority Purchase Order (Std. 65) for purchase execution. An electronic version of the Std. 65 is available at the Office of State Publishing web site (https://www.dgsapps.dgs.ca.gov/osp/StatewideFormsWeb/Forms.aspx) (select STD Forms).

All Purchasing Authority Purchase Orders (Std. 65) must contain the following:

· Agency Order Number (Purchase Order Number)

· Ordering Agency Name

· Agency Billing Code

· Purchasing Authority Number

· Leveraged Procurement Number (Contract Number)

· Supplier Information (Contact Name, Address, Phone Number, Fax Number, E-mail)

· Line Item number

· Quantity

· Unit of Measure

· Commodity Code Number

· Product Description

· Unit Price

· Extension Price

FI$CAL Purchase Documents State departments transacting in FI$CAL will follow the FI$CAL procurement and contracting procedures.

Blanket Orders The use of blanket purchase orders against this statewide contract is not allowed.

Local Governmental Agencies Local governmental agencies may use their own purchase document for purchase execution. The purchase documents must include the same data elements as listed above (Exception: Purchasing Authority Number and Billing Code which are used by State departments only).

MINIMUM ORDER

The minimum order for each Group is as follows:

· Towels and Washcloths – One (1) case of a single type, size, and color

· Part Wool Blankets – One (1) case of a single color

· Cotton Thermal Blankets – One (1) case of a single type, size, and color

· Acrylic Blend Blankets – One (1) case of a single color

Orders for less than the minimum order shall be considered non-contract and may be purchased from other sources.

ORDERING PROCEDURE

Ordering agencies are to submit appropriate purchase documents directly to the Contractor via one of the following ordering methods:

· U.S. Mail

· Facsimile

· Email The Contractor’s Order Placement Information is as follows:

ORDER PLACEMENT INFORMATION

American Textile Systems Attn: Julia Weber 10631 Hathaway Dr.

Santa Fe Springs, CA 90670 Facsimile:

562-229-0597 Email:

Julia@amtexsys.com

When using any of the ordering methods specified above, all State departments must conform to proper State procedures.

ORDER ACCEPTANCE

The Contractor shall accept orders from any ordering agency. The Contractor shall not accept purchase documents for this contract that:

· Are incomplete

· Contain non-contract items

· Contain non-contract terms and conditions The Contractor must not refuse to accept orders from any ordering agency for any other reason without written authorization from the State Contract Administrator.

ORDER RECEIPT CONFIRMATION

The Contractor will provide ordering agencies with an email or facsimile order receipt confirmation within two (2) business days of receipt of purchase document. The Order Receipt Confirmation shall include the following information:

· Contactor’s Order Number

· Ordering Agency Name

· Agency Order Number (Purchase Order Number)

· Description of Goods

· Total Cost

· Anticipated Delivery Date

· Identification of any Out of Stock/Discontinued Items

OUT OF STOCK REMEDY

Upon receipt of an order acknowledgment identifying out of stock items, the ordering agencies shall have the following options:

· Request a back order

· Cancel the item from the order with no penalty The Contractor will provide notification to the ordering agencies regarding out-of-stock items which have been back ordered.

Under no circumstance is the Contractor permitted to make substitutions with non-contract items or unauthorized products.

DELIVERY SCHEDULES

Delivery for orders placed against this contract shall be in accordance with the following:

1. Locations Deliveries are to be made (statewide) to the location specified on the individual purchase order, which may include, but not limited to inside buildings, high-rise office buildings, and receiving docks.

Schedule For the first order an agency submits, delivery shall be completed in full within sixty (60) calendar days after receipt of order (ARO). For all following orders, delivery shall be completed in full within thirty (30) calendar days ARO unless otherwise agreed to by the ordering agency. Since receiving hours for each ordering agency will vary by facility, it will be the Contractor’s responsibility to check with each ordering agency for their specific delivery hours before delivery occurs. The Contractor must notify the ordering agency within twelve (12) hours of scheduled delivery time, if delivery cannot be made within the time frame specified on the Order Receipt Confirmation.

The Contractor is requested to make deliveries in Los Angeles County, Orange County, San Bernardino Metropolitan Area, and San Diego Metropolitan Area during off-peak hours. Off-peak hours are Monday through Friday, 10:00 AM to 4:00 PM PT.

Security Requirements Deliveries may be made to locations inside secure grounds that require prior clearances or special entry procedures for delivery drivers.

Security procedures may vary from facility to facility. The Contractor will be responsible for contacting the secure location for security procedures, hours of operation for deliveries and service, dress code, and other rules of delivery.

Deliveries that are delayed due to drivers not being cleared to enter secure grounds may be cause for contract default.

FREE ON BOARD (F.O.B.) DESTINATION

All prices are F.O.B. destination; freight prepaid by the Contractor, to the ordering agency’s receiving point. Responsibility and liability for loss or damage for all orders will remain with the Contractor until final inspection and acceptance, when all responsibility will pass to the ordering agency, except the responsibility for latent defects, fraud, and the warranty obligations.

PALLETS

Unless otherwise specified on the ordering agency’s purchase order document, standard commercially available pallet sizes should be used. All pallets shall be of sturdy construction and adequate condition to assure delivery of the goods without damage to the goods or safety hazards.

Exchange pallets may be available; however, the State assumes no responsibility for the availability to exchange pallets. Delivery drivers shall not remove more pallets from the location than delivering at time of delivery.

SHIPPED ORDERS

For Wool Blankets please refer to Attachment B3, Specification 8305-5768C, dated 7/15/2021 regarding marking requirements.

All shipments must comply with Non-IT General Provisions (rev 11/19/2021, Paragraph 12 entitled “Packing and Shipment.”)

PACKING SLIP

Packing slip requirements shall be in accordance with the General Provisions (rev 11/19/2021, Paragraph 12 entitled “Packing and Shipment.”)

INSPECTION AND ACCEPTANCE

In accordance with the General Provisions, unless otherwise noted in the ordering agency’s SOW, rejection of deliverables must be processed within thirty (30) days of delivery or it shall be deemed as accepted by the State.

CONTRACT ADMINISTRATION

Both the State and the Contractor have assigned contract administrators as the single points of contact for problem resolution and related contract issues.

Attn: Jennifer Balluch 707 Third Street, 2nd Floor, MS 201 West Sacramento, CA 95605 American Textile Systems Attn: Julia Weber 10631 Hathaway Dr.

Santa Fe Springs, CA 90670

INVOICING

Ordering agencies may require separate invoicing, as specified by each ordering agency. Invoices will contain the following information:

· Contractor’s name, address and telephone number

· Leveraged Procurement Agreement Number (Contract Number)

· Agency order number (purchase order number)

· Item and commodity code number

· Quantity purchased

· Contract price and extension

· State sales and/or use tax

· Prompt payment discounts/cash discounts, if applicable

· Totals for each order

PAYMENT

1. Terms Payment terms for this contract are net forty-five (45) days. Payment will be made in accordance with the provisions of the California Prompt Payment Act, Government Code Section 927, et seq. Unless expressly exempted by statute, the Act requires State departments to pay properly submitted, undisputed invoices not more than forty-five (45) days after the date of acceptance of goods, performance of services, or receipt of an undisputed invoice, whichever is later.

CAL-Card Use State departments may use the CAL-Card for the payment of invoices. Use of the CAL-Card requires the execution of a Purchasing Authority Purchase Order (Std. 65) in accordance with Article 12, Purchase Execution and must include all required documentation applicable to the purchase.

The CAL-Card is a payment mechanism, not a procurement approach and, therefore, does not relieve State departments from adhering to all procurement laws, regulations, policies, procedures, and best practices, including those discussed in the State Contracting Manual (SCM) Volume 2. This includes but is not limited to the application of all sales and use tax laws, rules and policies as applicable to the purchase.

Payee Data Record Each State department’s accounting office must have a copy of the Contractor’s Payee Data Record (Std. 204) in order to process payments. State departments should forward a copy of the Std. 204 to their accounting offices. Without the Std. 204, payment may be unnecessarily delayed. State departments should contact the Contractor for copies of the Payee Data Record.

CAL-CARD INVOICING

All CAL-Card invoices are to be processed separately from other payment methods and include the elements identified in Article 25, Invoicing. CAL-Card invoices shall be submitted to the CAL-Card account holder. The total invoice amount for each CAL-Card order must reflect a zero (0) balance due or credit, if applicable, and state “paid by CAL-Card”.

This website contains additional information regarding DGS-PD’s CAL-Card program (https://www.dgs.ca.gov/PD/Services/Page-Content/Procurement-Division-Services-List-Folder/Enroll-in-CAL-Card-Program-for-Government-Entities).

CALIFORNIA SELLER’S PERMIT

The California seller permit number for the Contractor is listed below. Ordering Agencies can verify that permits are currently valid at the following website: www.cdtfa.ca.gov. State departments must adhere to the file documentation identified in the State Contracting Manual Volume 2.

RANDOM SAMPLE COMPLIANCE REVIEW

The State has the option of randomly sampling offered products after award from any order to ensure compliance to contract requirements. Any products failing random sample review will be replaced by the Contractor free of charge and re-evaluated by the State. The State has the option of removing listed line items that fail random sample compliance review. Notice may be made by phone or email. Failure to submit requested information may be considered a breach of contract and subject the Contractor to Non-IT General Provisions (rev 11/19/2021), paragraph 26 entitled “Rights and Remedies of State for Default”.

PRODUCT RECALL PROCEDURES

The Contractor shall provide product recall notification, regardless of level, in writing to the State Contract Administrator and each ordering agency through the most expedient method possible. The notices, at a minimum, shall include a complete product description and/or identification, contract number, delivery order number and disposition instructions.

The Contractor shall issue replacement of product or credit for any product removed or recalled. Each ordering agency shall have the option of accepting either replacement product or credit in exchange for recalled/removed products.

WARRANTY

Warranty requirements shall be in accordance the General Provisions (rev 11/19/2021), Article 19 entitled “Warranty”.

RECYCLED CONTENT

State departments are required to report purchases in many product categories. The Postconsumer-Content Certification Form for the Contractor is attached (Attachment C).

SB/DVBE PARTICIPATION

The Small Business (SB) and Disabled Veteran Business Enterprise (DVBE) certifications and percentages for the Contractor and subcontractor(s) are listed below. State departments can verify that the certifications are currently valid at the following website: www.caleprocure.ca.gov

Percent (%)

DVBE

Percent (%)

State departments must identify subcontractors on individual purchase documents whenever subcontractors are used.

The Contractor has committed to DVBE participation at total statewide contract levels of 3 percent.

Individual orders may have no applicable participation or may have participation greater than that of the total contract commitment. Ordering agencies must verify the participation amount with the Contractor. The exact participation percentage levels for each purchase order will be determined on an order-by-order basis in cooperation with the Contractor prior to submittal of a Purchasing Authority Purchase Order (STD 65).

The DGS-PD, as the awarding department, has assessed the subcontractor certifications and CUF during the solicitation evaluation process. As a result, when executing purchase documents pursuant to this contract it is not necessary for State departments operating under statewide contract purchasing authority to request the completion of a Bidder Declaration document or perform additional CUF analysis. The department should make a notation of this within their procurement file.

Any irregularities or concerns regarding DVBE sub-contractor responsibilities are to be immediately documented and reported to the State Contract Administrator for further investigation. Information provided to the State Contract Administrator includes, but is not limited to:

· Copy of executed purchase document

· Value-added service description

· Work performance issue or concern

· State department contact name, email, and phone number State departments may request from the Contractor a monthly report providing the DVBE participation levels on purchase orders.

CERTIFICATION OF PAYMENTS TO DVBE SUBCONTRactors In accordance with the State Contracting Manual, Volume 2, Section 1203.1, DGS-PD has prescribed an alternative mechanism for enforcing the DVBE subcontractor payment certification requirement on this Statewide Contract. State departments shall not collect a certified Prime Contractor’s Certification – DVBE Subcontracting Report (STD. 817) from the Contractor. During the contract term, and upon completion of the contract for which a DVBE subcontractor commitment was made, DGS-PD will require the Contractor to certify that all participation commitments and payments under the contract have been made to the DVBE.

VETTED FORMS/CERTIFICATIONS

The DGS-PD, as the awarding department, has assessed the Contractor and subcontractor forms, certifications, and compliance to performing a commercially useful function (CUF) during the solicitation evaluation process. Consequently, when executing purchase documents pursuant to this contract, it is not necessary for State departments operating under statewide contract purchasing authority to conduct a CUF evaluation or request the completion of the following required certifications and forms:

· Bidder Declaration Form (GSPD 05-105)

· DVBE Declaration Form (DGS-PD 843)

· Darfur Contracting Act Form

· California Civil Rights Certification Form

· Iran Contracting Act Certification

· Russian Sanctions Agreement

· Federal Debarment

State departments should make a notation of this within their procurement file.

Any irregularities or concerns regarding prime or SB/DVBE sub-contractor responsibilities are to be immediately documented and reported to the State Contract Administrator for further investigation. Information provided to the State Contract Administrator includes, but is not limited to:

· Copy of executed purchase document

· Value-added service description

· Work performance issue or concern

· State department contact name, email, and phone number.

GENERATIVE ARTIFICIAL INTELLIGENCE (GENAI) PROCUREMENT PROCEDURES

GenAI contract provisions (rev. 2/20/2025) have been incorporated into the contract. Contractor does not intend to utilize GenAI as a deliverable. If GenAI is disclosed by the Contractor, state departments must follow the required GenAI purchase procedures outlined in SCM Vol.2, Chapter 23, Generative Artificial Intelligence.

ATTACHMENTS

Attachment A – Contract Pricing Attachment B1 - 8305-5768A titled Towels, Terry Cloth, dated 7/23/2021 Attachment B2 - 8305-5768B titled Hand Towels, Cotton Huck Cloth, dated 7/20/2021 Attachment B3 - 8305-5768C titled Blanket, Wool Blend, dated 7/15/2021 Attachment B4 - 8305-5768D titled Blanket, Cotton Thermal, dated 7/15/2021 Attachment B5 - 8305-5768E titled Blanket, Acrylic Blend, dated 7/15/2021 Attachment C – Postconsumer Content Certification Workbook image1.jpeg