User_Instructions_Supp._12.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) 1-22-75-30 Contract User Instructions, *Supplement 12*

Page 12 *4/16/2025* 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 12* *(Incorporates Supplements 1 - 12)*

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 6/21/2022) (https://www.dgs.ca.gov/-/media/A6E6D65690284867BCEBF3288AC31C5B.ashx)

Cal eProcure link: www.caleprocure.ca.gov

ORDER PLACEMENT INFORMATION

Mailing Address:

5450 Florin Perkins Rd #100 Sacramento, CA. 95826 Fax:

Fax: (916) 379-9996

Contact Information:

Paper Distributors Inc.

Mark Zimmerman Blake Zimmerman

Phone: 916-379-9991 Email: mark@paperdistributorsinc.com or blake@paperdistributorsinc.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

· Article 36: [Exemption to] Gen AI Procurement Procedures, updated language.* *4/16/2025*

· Front Page: Contract Administrator has been changed from Ike Ogamba to Willie Orphe III.

· Article 25: Contract Administrator has changed.

3/18/2025

· Attachment A – Contract Pricing, Supplement 6 has been removed and replaced with Attachment A – Contract Pricing, Supplement 10 for price increase adjustment and product refresh.

1/7/2025

· Article 19, Section A: Delivery coordination direction has been updated.

· Article 19, Section B: DGS Transit Storage Warehouse Receiving Contact Phone Number has added.

12/18/2024

· Contract Administrator has been changed from Willie Orphe III to Ike Ogamba.

· Article 19, Section A: Receiving and shipping times has been updated.

· Article 19, Section B: DGS Transit Storage Warehouse Receiving Contact has changed.

· Article 25: Contract administrator has changed.

12/6/2024

· Front Page: Contract has been extended one additional year to 11/19/2026.

9/20/2024

· Attachment A – Contract Pricing, Supplement 3 has been removed and replaced with Attachment A – Contract Pricing, Supplement 6 for price increase adjustment and product refresh.

8/28/2024

· Article 35 – Vetted/Forms Certifications language added.

· Article 36 – Exemption to GEN-AI Procurement Procedures language added.

7/31/2024

· Article 12.A.3 – Blanket Orders, language has been updated.

4/18/2024

· Attachment A – Contract Pricing, has been removed and replaced with Attachment A – Contract Pricing, Supplement 3 for price increase adjustment and manufacturer update.

· Attachment C – PCRC Workbook, has been removed and replaced with Attachment C – PCRC Workbook, Supplement 3.

4/5/2024

· Article 33, SB/DVBE Participation - language has been modified to remove Subcontractor.

3/12/2024

· Article 13, Minimum Order - language has been modified.

1/4/2023

11/20/2022

All other terms and conditions remain the same.

TABLE OF CONTENTS

SCOPE

The State’s contract with Paper Distributors Inc. (Contractor) provides Paper, Recycled Bond Cut Stock at contracted pricing to the State of California and local governmental agencies in accordance with the requirements of Contract # 1-22-75-30. 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 Paper, Recycled Bond Cut Stock 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 extension period 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 (DGS-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 pricing are listed on Attachment A, Contract Pricing.

SPECIFICATIONS

All products listed on Attachment A, Contract Pricing, conform to Attachment B, Bid Specification Number 9310-6302, dated 9/16/22.

CUSTOMER SERVICE

The Contractor will have a customer service unit that is dedicated to this contract. The customer service unit provides office and personnel resources for responding to inquiries, including telephone and email coverage weekdays during the hours of 8:00 a.m. - 5:00 p.m., PT.

The customer service unit shall be staffed with individuals that:

· Are trained in the requirements of this contract

· Have the authority to take administrative action to correct problems that may occur The Contractor’s customer service unit shall respond to all customer inquiries within one (1) business day of initial contact.

Mark Zimmerman Blake Zimmerman

PRODUCT SUBSTITUTIONS

Product substitution shall be in accordance with the General Provisions rev 6/21/2022), Article 16 entitled “Substitutions”.

PRICE DECLINES

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 are allowed. Ordering agencies issuing blanket purchase orders must adhere to the following guidelines:

a) The order does not cross fiscal years.

b) The order is only used for items on the contract.

c) The order does not exceed the contract period.

d) All orders placed against the blanket purchase order must be in writing.

e) When funds are exhausted a new order is issued.

f) The order is issued only to one contract supplier.

All orders placed against the blanket purchase order (BPO) shall be invoiced at the current contract price at the time the individual order is placed. BPOs should not include a contract unit price, however, if the BPO specifies a contract unit price, an amendment to the BPO is required.

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 is identified in the Commodity Description column for each contract line-item number (CLIN) in Attachment A – Contract Pricing. (For example, CLIN 1 - 8.5” x 11”, is for an order of 16 cases; CLIN 2 – 8.5” x 11”, is for an order of 40 cases; CLIN 3 is for an order of 80 to 400 cases, and orders for CLIN 3 shall be in increments of 40 cases).

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

U.S. Mail:

5450 Florin Perkins Rd #100 Sacramento, CA 95826 Facsimile:

(916) 379-9996 Email:

mark@paperdistributorsinc.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 State department or local governmental agency. The Contractor shall not accept purchase documents for this contract that:

· Are incomplete

· Contain non-contract items or items outside the scope of the contract

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

ORDER ACKNOWLEDGEMENT

The Contractor must provide the ordering agency with an order receipt acknowledgement, either through email or facsimile, within two (2) working days of receipt. Order Acknowledgement will include:

· 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.

DISCONTINUED ITEM REMEDY

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

· Amend purchase document to reflect State-approved substitute item (per Article 10, Product Substitutions)

· Cancel the item from the order Under no circumstance is the Contractor permitted to make substitutions with non-contract items or unauthorized products without approval from the State Contract Administrator.

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. For inside delivery fees refer to Attachment A – Contract Pricing, CLIN 14.

Inside delivery shall include breakdown of a pallet and delivered to bulk storage area specified on Purchase Order. Contractor must contact the receiving department to confirm if any delivery equipment is necessary (e.g., lift gates, pallet jacks, hand trucks etc.) are required.

For shipments made to the Department of General Services (DGS) Transit Storage Warehouse, located at 1700 National Drive, Sacramento, CA 95834, Contractor must prearrange a delivery appointment with the DGS Transit Storage Warehouse receiving clerk. Receiving and shipping hours are 8 a.m. to 2 p.m., Tuesday through Thursday, excluding state holidays. Deliveries are not to be accepted on dates of Public Auctions. Contractor must call ahead and leave a message to coordinate deliveries or for any questions or concerns —No exceptions. If using a box trailer, please plan for additional unloading time. All delivery trucks must exit the DGS Transit Storage Warehouse gate no later than 3 p.m.

DGS Transit Storage Warehouse Receiving Contacts

Schedule Delivery of ordered product shall be completed in full within forty-five (45) calendar days after receipt of an order, (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 facility 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 Confirmation.

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.

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, background checks, 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.

For shipments made to the DGS Transit Storage Warehouse, all materials must be on 42"x42" or 44"x44" 2-way pallets, unless otherwise prearranged with DGS Transit Storage Warehouse receiving clerk. Material including pallet must measure no higher than 58", and no items can overhang the sides of pallets. DGS Transit Storage Warehouse will not accept orders not meeting state pallet specifications.

SHIPPED ORDERS

All shipments must comply with Non-IT General Provisions (rev 6/21/2022, Article 12 entitled “Packing and Shipment.”)

SAFETY DATA SHEET

The Contractor shall provide a Safety Data Sheet for product(s) subject to Title 8 of the California Code of Regulations, Section 5194, Hazard Communication. The Safety Data Sheet is to be prepared and delivered in accordance with this Section.

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: Willie Orphe III 707 Third Street, 2nd Floor, MS 201 West Sacramento, CA 95605 Paper Distributors Inc.

Attn: Mark Zimmerman 5450 Florin Perkins Rd. #100 Sacramento, CA 95826

CREDIT POLICY

The Contractor shall offer a credit/refund for the following items:

· Items shipped in error

· Items that are returned within thirty (30) calendar days of delivery

· Defective or freight-damaged items In all cases, the ordering agency shall have the option of taking an exchange or receiving a credit or receiving a refund.

The Contractor will be responsible for the credit or replacement of all products, including those covered by manufacturer warranties. The Contractor cannot require the ordering agency to deal directly with the manufacturer.

INVOICING

Invoices shall be submitted to the ordering agency within seven (7) calendar days from date of delivery. The Contractor’s invoice must include, at a minimum:

· Contractor’s name, address, and telephone number

· Contract Number

· Purchase Order Number

· Line-Item Number

· Quantity purchased

· Contract Unit Price and Extension

· State sales and/or use tax

· Prompt payment discounts/cash discounts, if applicable

· Totals for each order

The State’s obligation to make payment pursuant to the contract is subject to availability of appropriated funds. Receipt of a Purchasing Authority Purchase Order (STD. 65) or Purchase Order in FI$Cal under this contract is proof of encumbered funds for that 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 Use of the CAL-Card for payment of invoices is not allowed under this statewide contract.

State Financial Marketplace State departments reserve the right to select the form of payment for all procurements, be it either an outright purchase with payment rendered directly by the State, or a financing/lease-purchase or operating lease via the State Financial Marketplace (GS $Mart and/or Lease $Mart). If payment is via the financial marketplace, the Contractor will invoice the State department and the State department will approve the invoice and the selected Lender/Lessor for all product listed on the State's procurement document will pay the Contractor on behalf of the State.

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.

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.

WARRANTY

Warranty requirements shall be in accordance to the General Provisions (rev 6/21/2022, Article 19 entitled “Warranty”).

QUALITY ASSURANCE

All products shall conform to the bid specifications and be free of any defects. Product inspected and rejected (non-compliant to specifications or out of tolerance) are subject to return for full credit. The State will document the defect and submit the report to the Contractor. The Contractor shall arrange for and pick up the rejected product within fourteen (14) calendar days of notification. Failure to pick up the rejected product within this time frame will be grounds for the State to dispose of the product. The contractor shall be liable for any damage to press equipment or loss of production time (including press, bindery, and mail inserting) caused by non-compliant stock. Replacement product shall be provided in compliance with the contract delivery schedule requirement. When necessary, express shipping shall be provided at no cost to the State.

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 (%)

The Contractor will meet the contract SB and DVBE participation percentages as follows:

SB Participation: The prime Contractor (Paper Distributors, Inc.) is a California certified SB. For each order placed through this contract, State departments can claim 100 percent SB participation.

DVBE Participation: There is no DVBE participation for this contract.

BIDDER DECLARATION/COMMERCIALLY USEFUL FUNCTION (CUF)/ CERTIFICATIONS

The DGS-PD, as the awarding department, has assessed the Contractor and subcontractor certifications, (i.e. Darfur, Russian Sanctions, SB/DVBE, etc.), Bidder Declaration, and 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 request the completion of State required certifications, a Bidder Declaration document, or perform additional CUF analysis. The State department should make a notation of this within their procurement file.

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

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.

[EXEMPTION TO] GEN-AI 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, Supplement 10 Attachment B – Specification Number 9310-6302, dated 9/16/22 Attachment C – Postconsumer Content Certification Workbook, Supplement 3 image1.jpeg