SPECIAL_INSTRUCTIONS.docx

SPECIAL INSTRUCTIONS

Special Instructions

1. Guaranteed Minimum. The aggregate minimum amount ordered against this contract shall not be less than $5,000.00. This minimum is payable only if no orders are placed hereunder.

NOTE: For purposes of this solicitation, individual Contract Line Item Numbers (CLINs) do not provide minimum quantities to be ordered. Minimums and maximums are provided in dollars. See FAR Clause 52.216-22, titled "Indefinite Quantity".

2. Delivery Orders issued hereunder shall not exceed the total cumulative amount of $5,000,000.00.

3. The offeror shall submit two copies of their most current published product listing. This will indicate your ability to source the required product line.

4. Pricing for products under this contract shall be based on the following formula:

a. Wholesale Price + Mark Up = Unit Price

b. Wholesale Price. The actual invoice price the Prime Vendor has paid to a supplier.

c. Mark Up. The amount derived by multiplying the Wholesale Price by the Mark up Percentage.

d. Mark Up Percentage. This figure, proposed as a percentage, represents all elements of cost in addition to the wholesale price. This percentage figure shall remain constant throughout the term of the contract, inclusive of option years if exercised. The offeror shall provide a single (one) mark up rate to be used for items identified in the solicitation and ultimate contract. This rate will also be applied to any items, which may be added to the contract.

e. Unit Price. The ultimate price paid for each product delivered to the ordering activity.

f. Offered Pricing. Offeror must provide pricing for all products (Item Numbers 1 through 80) listed in Appendix 1 to the schedule. Base these prices on the most current supplier invoices available during the two-week period prior to closing of this Request for Proposal. If an invoice is not available for this two-week period, use the most current available invoice. Offeror shall have the capability of providing all products (Item Numbers 81 through 382) listed in Appendix 2 to the schedule. Items listed in Appendix 1 are considered the "most used" products and represent approximately 60% of the dollars projected to be obligated under the proposed contract. Items listed in Appendix 2 are equally important, but represent smaller demands. Once a product is ordered from Appendix 2, that product will be considered incorporated into the contract.

g. Product Descriptions. Commercial product descriptions shall be provided for all items listed in Appendix 1 if the product offered deviates from the commercial description or standard as listed. Brand name must also be provided for each item offered (i.e.: Kraft, Delmonte, Sure Fine, etc.). Product quality shall be “Grade A” vs. “Choice” for the life of the contract unless the Contracting Officer issues a determination to accept the latter.

h. Variation in Wholesale Price. Unit prices are stated as a Firm Fixed-Price. A variation "NOT TO EXCEED A 15% INCREASE" of the Unit Price for any product shall be authorized throughout the term of the contract, inclusive of option years if exercised. In the event a product exceeds the 15% variation, the Vendor shall provide to the Contracting Officer, verifiable evidence to support such an increase. Verifiable evidence is considered to be copies of invoice from supplier. Upon verification of the price increase, the contract will be modified to reflect the increased price. If prices go under 15% variation, the vendor shall also notify the Contracting Officer and the contract will be modified accordingly. Adjustments will be made quarterly for items determined to be within the requirements of these terms and conditions.

i. Rebates/Discounts. Vendor shall be aggressive in pursuing rebates and discounts on behalf of the Government. Rebates/discounts shall be equal to or greater than those already being provided to your most favored commercial/governmental customers. Proposals shall contain all rebate/discount programs available. Rebate/discount programs are not subject to evaluation for purpose of award.

j. The Government reserves the right to order in quantities less than case (or whatever bulk unit of issue is normally used for that item) lots for specified items. In the event less than bulk quantities are required, the vendor will break cases to accommodate the required order quantity. The Government will not pay extra for broken case orders.