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HomeMy WebLinkAboutAgrmt. No. PA65207AGREEMENT No. PS65207 by and between NEW YORK STATE OFFICE OF GENERAL SERVICES and The Remi Group, LLC Page 1 of 8 STATE OF NEW YORK PROCUREMENT SERVICES GROUP OFFICE OF GENERAL SERVICES AGREEMENT FOR EQUIPMENT MAINTENANCE PROGRAM WITH The Remi Group, LLC THIS AGREEMENT, made this _ day of , 2010 by and between the People of the State of New York, acting by and through Carla Chiaro, acting Commissioner of General Services, whose office is on the 41 st Floor, Corning Tower Building, the Governor Nelson A. Rockefeller Empire State Plaza, Albany, New York 12242 (hereinafter "OGS" or "State"), and The Remi Group, LLC (hereinafter "Remi" or "Contractor"), with an office at 11325 N. Community House Rd, Suite 300, Charlotte, NC 28277. WITNESSETH: WHEREAS, OGS issued a Request for Proposal 21988-PF (Bid Opening: April 1, 2010), and Bid Solicitation Update(s) thereto, to solicit qualified proposers to provide services related to the operation and maintenance of an Equipment Maintenance Program for the State of New York for State agencies, departments, NYS public authorities and public benefit corporations, and all other entities authorized pursuant to Article 11 of the State Finance Law to use OGS' statewide contracts (hereinafter "Agencies"), and WHEREAS, OGS has determined, after having solicited proposals from proposers willing to supply these services, that the Contractor submitted the proposal affording the State the best value for such services and that the Contractor possesses the necessary capacity, experience and expertise for provision of the needed Equipment Maintenance Program, and that Contractor is ready, willing and able to perform such services on the terms hereinafter set forth. NOW THEREFORE, in consideration of the mutual covenants herein contained, the parties do hereby agree as follows: Page 2 of 8 1. CONSIDERATION 1A. Contractor shall only be compensated for each Equipment Maintenance Service Agreement it enters into pursuant hereto, with there being no guarantee that it will receive any business hereunder. The compensation for all Equipment Maintenance Service Agreements shall be as agreed to between the Contractor and the user Agency, but in all cases shall be at least twenty six and one-half percent (26. 5%) lower than previous vendor maintenance contracts or, if such contracts are unavailable, at least twenty six and one-half percent (26. 5%) lower than the then prevailing market cost of comparable vendor maintenance coverage with the same level of service. 1B. Contractor will not receive any additional compensation for any consultative services specifically requested in writing by OGS or any user Agency during this Agreement. 1C. Payments shall be made in accordance with to the provisions of the RFP attached hereto. 2. TERM This Agreement shall commence on approval by the State Comptroller and shall be in effect for five (5) years from the commencement date of contract. Thereafter, the State will have the option to extend the term of the Contract for up to an additional five (5) years or any part thereof. Any renewal hereof shall be effectuated by written amendment hereto executed by both parties and approved by the State Comptroller. The rate of consideration to be paid during any such renewal period(s) shall remain fixed at least 26. 5% less than previous vendor maintenance contracts or, if such contracts are unavailable, least 26.5% less than the then prevailing market cost of comparable vendor maintenance coverage with the same level of service. 3. SERVICES The Contractor agrees to perform this Agreement and to furnish the services, labor, equipment, facilities and materials required in connection therewith in accordance with all the specifications, terms, conditions, covenants and representations contained in the Request for Proposal 21988-PF (Bid Opening: April 1, 2010), and all Bid Solicitation Updates thereto (the "RFP") and in the Contractor's Response to said Proposal, annexed hereto hereto as Appendices C and D, respectively, except as such documents have been modified by the terms of this Agreement. The RFP and Remi's Response to same are hereby incorporated by reference herein and made a part hereof with the same force and effect as if herein set forth at length herein. Page 3 of 8 3A. EQUIPMENT MAINTENANCE SERVICE AGREEMENTS When requested by the State or any Agency, Contractor shall enter into an Equipment Maintenance Service Agreement, for the coverage of equipment mutually agreeable to the State or Agency and Contractor, in substantially the form of the model as set forth in Appendix F hereof, with each user Agency. Appendix F is hereby incorporated by reference and made a part hereof as fully as if set forth a Length herein. 4. TERMINATION This Agreement may be terminated in accordance with the termination provisions set forth in the attached RFP. 5. RECORDS The Contractor will maintain accurate records and accounts of services performed and moneys expended under this Agreement. Such records will be maintained for six (6) years following the close of the State fiscal year to which they pertain and will be made available to representatives of OGS or the New York State Comptroller, as may be necessary for auditing purposes, upon request. 6. TAXES Purchases by the State of New York are not subject to any sales or federal excise taxes. Exemption certificates will be furnished upon request. Contractor shall be responsible to determine the taxable status of purchases made here under by non -State Agencies. There is no exemption however for Social Security, unemployment insurance and like taxes. 7. INDEPENDENT CONTRACTOR It is understood and agreed that the legal status of the Contractor, its subcontractors, agents, officers and employees is that of an independent contractor and in no manner shall they be deemed employees of the State of New York and, therefore, are not entitled to any of the benefits associated with such employment. 8. APPENDICCES A and B Appendix A, Standard Clauses for New York State Contracts, attached hereto, and Appendix B, General Specifications are hereby expressly made a part of this Agreement as fully as if set forth at length herein. 9. ASSIGNMENT Contractor agrees that it will not assign this Agreement, or any interest therein, without the prior written consent of the Commissioner of General Services, which consent may be unreasonably withheld. Page 4 of 8 10. LAW This Agreement shall be governed by the laws of the State of New York. 11. CONDITIONS PRECEDENT This Agreement shall not be deemed executed, valid or binding unless and until approved in writing by the Attorney General and the State Comptroller. 12. ENTIRE AGREEMENT This Agreement constitutes the entire Agreement between the parties hereto and no statement, promise, condition, understanding, inducement or representation, oral or written, expressed or implied, which is not contained herein shall be binding or valid and this Agreement shall not be changed, modified or altered in any manner except by an instrument in writing executed by both parties hereto. 13. EXECUTORY CLAUSE This Agreement shall be deemed executory only to the extent of money available to the State for performance of the terms hereof and no liability on account thereof shall be incurred by the State of New York beyond moneys available for purposes thereof. 14. CONFLICT OF TERMS AND CONDITIONS In the event of any discrepancy, disagreement or ambiguity between this contract agreement and any of the attached documents, the documents shall be given preference in the following order to interpret and to resolve such discrepancy, disagreement or ambiguity: (i) Appendix A and this contract agreement (ii) Appendix C - The Request for Proposal (iii) Appendix B — General Specifications (iv) Appendix D - The Bidder's Bid (i.e. the Proposal as submitted by Remi) The parties understand and agree that any and all deviations or exceptions taken by Contractor to the State's Request for Proposal are hereby withdrawn except only to the extent that such exceptions or deviations have been explicitly incorporated into this contract agreement. 15. FORCE MAJEURE Neither party hereto will be liable for losses, defaults, or damages under this Agreement which result from delays in performing, or inability to perform, all or any of the obligations or responsibilities imposed upon it pursuant to the terms and conditions of this Agreement, due to or because of acts of God, the public enemy, acts of government, earthquakes, floods, strikes, civil strife, fire or any other cause beyond the reasonable control of the party that was so delayed in performing or so unable to perform provided that such party was not negligent Page 5of8 and shall have used reasonable efforts to avoid and overcome such cause. Such party will resume full performance of such obligations and responsibilities promptly upon removal of any such cause. 16. ASSIGNMENT BY STATE The State agrees not to assign this Agreement without prior notice to and reasonable consent of the Contractor provided, however, that this Agreement may be assigned without such consent to another agency or subdivision of the State pursuant to a governmental reorganization or assignment of functions under which the pertinent functions of OGS as an agency are transferred to a successor agency or subdivision of the State. 17. NOTICES All notices, demands, designations, certificates, requests, offers, consents, approvals and other instruments given pursuant to this Agreement shall be in writing and shall be validly given when mailed by registered or certified mail, overnight carrier or hand delivered, (i) if to the State, addressed to the State at its address set forth above, and (ii) if to Contractor, addressed to Contractor at its address set forth above. The parties may from time to time, specify any address in the United States as its address for purpose of notices under this Agreement by giving fifteen (15) days written notice to the other party. The parties agree to mutually designate individuals as their respective representatives for the purposes of this Agreement. 18. CAPTIONS The captions contained in this Agreement are intended for convenience and reference purposes only and shall in no way be deemed to define or limit any provision thereof. 19. SEVERABILITY In the event that any one or more of the provisions of this Agreement shall for any reason be declared unenforceable under the laws or regulations in force, such provision will not have any effect on the validity of the remainder of this Agreement, which shall then be construed as if such unenforceable provision had never been written or was never contained in this Agreement. Page 6 of 8 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above. The parties further hereby certify that original copies of this executed and approved signature page will be affixed, upon final approval by the NYS Comptroller, to exact copies of this Agreement being executed simultaneously herewith.The Remi Group, LLC THE PEOPLE OF THE STATE OF NEW YORK By: By: Name: Title: Name: Title: New York State Office of General Services Date: Date: Corporate Federal ID #: APPROVED AS TO FORM APPROVED ANDREW CUOMO THOMAS DINAPOLI ATTORNEY GENERAL COMPTROLLER Page 7of8 INDIVIDUAL, CORPORATE, PARTNERSHIP OR LLC ACKNOWLEDGMENT STATE OF COUNTY OF } } :ss.: On the day of , in the year 2010_ before me personally appeared , known to me to be the person who executed the Invitation for Bids, who being duly sworn by me did depose and say that _he resides at in the Town of [Check One] , State of , County of , and further that: (❑ If an individual): _he executed the foregoing instrument in his/her name and on his/her own behalf. (❑ If a corporation): _he is the of , the corporation described in said instrument; that, by authority of the Board of Directors of said corporation, _he is authorized to execute the foregoing instrument on behalf of the. corporation for purposes set forth therein; and that, pursuant to that authority, _he executed the foregoing in the name of and on behalf of said corporation as the act and deed of said corporation. (❑ If a partnership): _he is the of , the partnership described in said instrument; that, by the terms of said partnership, _he is authorized to execute the foregoing instrument on behalf of the partnership for the purposes set forth therein; and that, pursuant to that authority, _he executed the foregoing in the name and on behalf of said partnership as the act and deed of said partnership. (n If a Limited Liability Company): _he is a duly authorized member of LLC, the limited liability company described in said instrument; that _he is authorized to execute the foregoing instrument on behalf of the limited liability company for purposes set forth therein; and that, pursuant to that authority, _he executed the foregoing instrument in the name of and on behalf of said limited liability company as the act and deed of behalf of said limited liability company as the act and deed of said limited liability company Notary Public Page 8 of 8 ANDREW M. CUOMO GOVERNOR February 10, 2011 STATE OF NEW YORK EXECUTIVE DEPARTMENT OFFICE OF GENERAL SERVICES MAYOR ERASTUS CORNING 2ND TOWER THE GOVERNOR NELSON A. ROCKEFELLER EMPIRE STATE PLAZA ALBANY, NEW YORK 12242 Ms. Laura Barclift The Remi Group, LLC 11325 N. Community House Rd, Ste 300 Charlotte, NC 28277 Phone: (704) 602-0832 Fax: (704) 887-2916 RE: RFP 21988-PF Group 79000 — Equipment Maintenance Program (EMP) (Statewide) Dear Ms. Barclift: CARLA CHIARO ACTING COMMISSIONER ANNE G. PHILLIPS ACTING DEPUTY COMMISSIONER INFORMATION TECHNOLOGY AND PROCUREMENT SERVICES Thank you for your ongoing assistance with our evaluation of RFP 21988-PF. As we have previously noted it appears that the Remi Group's proposal represents the "best value" for the state of New York and we have prepared an award recommendation package for review by the Office of the State Comptroller (OSC). In the process of this pre -audit, it was brought to OGS-PSG's attention that the Remi Group, LLC holds a Federal GSA Contract #GS 35F-0161X, the terms and conditions of which offer a 27% discount. The discount bid previously negotiated with the Remi Group, LLC in response to RFP 21988-PF offered New York State a 26.5% discount. As a part of OGS-PSG's responsibility for due diligence we are asked to provide OSC with justification as to the reasonableness of price when recommending awarding a contract. Before proceeding further with an award recommendation we are requesting that the Remi Group, LLC consider making an improved offer by deepening their discount to bring it more into line with the discount currently being offered to GSA. As you are aware the current OGS contract with the Remi Group, LLC already contains a discount of 25%. The proposed replacement contract will be a statewide centralized contract and thus it is reasonably anticipated that the volume of business conducted under this contract will increase significantly reinforcing our conviction that an increase in the discount structure would be reasonable and beneficial to both parties at this time. Please complete and sign and date this letter in response to our inquiry. Please select one from the following three options below: Yes, we agree to match the GSA discount of 27% under the terms and conditions outlined in RFP 21988-PF. Yes, we agree to an increase in discount percentage (%) of % for a total discount of No, we do NOT wish to offer an additional discount at this time. Signature: Date: Printed Name: Title: Company: Address: Sincerely, Jason D. Wilkie Purchasing Officer 2 NYS Office General Services Procurement Services Group 37th Floor - Corning Tower Empire State Plaza Albany, NY 12242 (518)-402-5846 (518)-474-2437 Fax Email: iason.wilkie@oes.state.nv.us APPENDIX A STANDARD CLAUSES FOR NEW YORK STATE CONTRACTS PLEASE RETAIN THIS DOCUMENT FOR FUTURE REFERENCE. November, 2010 STANDARD CLAUSES FOR NYS CONTRACTS AMIDE TABLE OF CONTENTS Page 1.- Executory -Clause 3 2. Non -Assignment Clause 3 3. Comptroller's Approval 3 4. Workers' Compensation Benefits 3 5. Non -Discrimination Requirements 3 6. Wage and Hours Provisions 3 7. Non -Collusive Bidding Certification 3 8. International Boycott Prohibition 3 9. Set -Off Rights 4 10. Records 4 11. Identifying Information and Privacy Notification 4 12. Equal Employment Opportunities For Minorities and Women 4 13. Conflicting Terms 5 14. Governing Law 5 15. Late Payment 5 16. No Arbitration 5 17. Service of Process 5 18. Prohibition on Purchase of Tropical Hardwoods 5 19. MacBride Fair Employment Principles 5 20. Omnibus Procurement Act of 1992 5 21. Reciprocity and Sanctions Provisions 6 22. Compliance with New York State Information Security Breach and Notification Act 6 23. Compliance with Consultant Disclosure Law 6 24. Procurement Lobbying 6 25. Certification of Registration to Collect Sales and Compensating Use Tax by Certain State Contractors, Affiliates and Subcontractors 6 Page 2 November, 2010 STANDARD CLAUSES FOR NYS CONTRACTS APPENDDLA STANDARD CLAUSES FOR NYS CONTRACTS The parties to the attached contract, license, lease, amendment or other agreement of any kind (hereinafter, "the contract" or "this contract") agree to be bound by the following clauses which are hereby made a part of the contract (the word "Contractor" herein refers to any party other than the State, whether a contractor, licenser, licensee, lessor, lessee or any other party): 1. EXECUTORY CLAUSE. In accordance with Section 41 of the State Finance Law, the State shall have no liability under this contract to the Contractor or to anyone else beyond funds appropriated and available for this contract. 2. NON -ASSIGNMENT CLAUSE. In accordance with Section 138 of the State Finance Law, this contract may not be assigned by the Contractor or its right, title or interest therein assigned, transferred, conveyed, sublet or otherwise disposed of without the State's previous written consent, and attempts to do so are null and void. Notwithstanding the foregoing, such prior written consent of an assignment of a contract let pursuant to Article XI of the State Finance Law may be waived at the discretion of the contracting agency and with the concurrence of the State Comptroller where the original contract was subject to the State Comptroller's approval, where the assignment is due to a reorganization, merger or consolidation of the Contractor's business entity or enterprise. The State retains its right to approve an assignment and to require that any Contractor demonstrate its responsibility to do business with the State. The Contractor may, however, assign its right to receive payments without the State's prior written consent unless this contract concerns Certificates of Participation pursuant to Article 5-A of the State Finance Law. 3. COMPTROLLER'S APPROVAL. In accordance with Section 112 of the State Finance Law (or, if this contract is with the State University or City University of New York, Section 355 or Section 6218 of the Education Law), if this contract exceeds $50,000 (or the minimum thresholds agreed to by the Office of the State Comptroller for certain S.U.N.Y. and C.U.N.Y. contracts), or if this is an amendment for any amount to a contract which, as so amended, exceeds said statutory amount, or if, by this contract, the State agrees to give something other than money when the value or reasonably estimated value of such consideration exceeds $10,000, it shall not be valid, effective or binding upon the State until it has been approved by the State Comptroller and filed in his office. Comptroller's approval of contracts let by the Office of General Services is required when such contracts exceed $85,000 (State Finance Law Section 163.6.a). 4. WORKERS' COMPENSATION BENEFITS. In accordance with Section 142 of the State Finance Law, this contract shall be void and of no force and effect unless the Contractor shall provide and maintain coverage during the life of this contract for the benefit of such employees as are required to be covered by the provisions of the Workers' Compensation Law. 5. NON-DISCRIMINATION REQUIREMENTS. To the extent required by Article 15 of the Executive Law (also known as the Human Rights Law) and all other State and Federal statutory and constitutional non-discrimination provisions, the Contractor will not discriminate against any Page 3 employee or applicant for employment because of race, creed, color, sex, national origin, sexual orientation, age, disability, genetic predisposition or carrier status, or marital status. Furthermore, in accordance with Section 220-e of the Labor Law, if this is a contract for the construction, alteration or repair of any public building or public work or for the manufacture, sale or distribution of materials, equipment or supplies, and to the extent that this contract shall be performed within the State of New York, Contractor agrees that neither it nor its subcontractors shall, by reason of race, creed, color, disability, sex, or national origin: (a) discriminate in hiring against any New York State citizen who is qualified and available to perform the work; or (b) discriminate against or intimidate any 'employee hired for the performance of work under this contract. If this is a building service contract as defined in Section 230 of the Labor Law, then, in accordance with Section 239 thereof, Contractor agrees that neither it nor its subcontractors shall by reason of race, creed, color, national origin, age, sex or disability: (a) discriminate in hiring against any New York State citizen who is qualified and available to perform the work; or (b) discriminate against or intimidate any employee hired for the performance of work under this contract. Contractor is subject to fines of $50.00 per person per day for any violation of Section 220-e or Section 239 as well as possible termination of this contract and forfeiture of all moneys due hereunder for a second or subsequent violation. 6. WAGE AND HOURS PROVISIONS. If this is a public work contract covered by Article 8 of the Labor Law or a building service contract covered by Article 9 thereof, neither Contractor's employees nor the employees of its subcontractors may be required or permitted to work more than the number of hours or days stated in said statutes, except as otherwise provided in the Labor Law and as set forth in prevailing wage and supplement schedules issued by the State Labor Department. Furthermore, Contractor and its subcontractors must pay at least the prevailing wage rate and pay or provide the prevailing supplements, including the premium rates for overtime pay,as determined by the State Labor Department in accordance with the Labor Law. Additionally, effective April 28, 2008, if this is a public work contract covered by Article 8 of the Labor Law, the Contractor understands and agrees that the filing of payrolls in a manner consistent with Subdivision 3- a of Section 220 of the Labor Law shall be a condition precedent to payment by the State of any State approved sums due and owing for work done upon the project. 7. NON -COLLUSIVE BIDDING CERTIFICATION. In accordance with Section 139-d of the State Finance Law, if this contract was awarded based upon the submission of bids, Contractor affirms, under penalty of perjury, that its bid was arrived at independently and without collusion aimed at restricting competition. Contractor further affirms that, at the time Contractor submitted its bid, an authorized and responsible person executed and delivered to the State a non - collusive bidding certification on Contractor's behalf. 8. INTERNATIONAL BOYCOTT PROHIBITION. In accordance with Section 220-f of the Labor Law and Section 139-h of the State Finance Law, if this contract exceeds $5,000, the Contractor agrees, as a material condition of the contract, that neither the Contractor nor any substantially owned or affiliated person, firm, partnership or corporation has participated, is participating, or shall participate in an international boycott in violation of the federal Export November, 2010 STANDARD CLAUSES FOR NYS CONTRACTS IMPENDDLA Administration Act of 1979 (50 USC App. Sections 2401 et seq.) or regulations thereunder. If such Contractor, or any of the aforesaid affiliates of Contractor, is convicted or is otherwise found to have violated said laws or regulations upon the final determination of the United States Commerce Department or any other appropriate agency of the United States subsequent to the contract's execution, such contract, amendment or modification thereto shall be rendered forfeit and void. The Contractor shall so notify the State Comptroller within five (5) business days of such conviction, determination or disposition of appeal (2NYCRR 105.4). 9. SET-OFF RIGHTS. The State shall have all of its common law, equitable and statutory rights of set-off. These rights -shall include, -but not -be limited to -the State's-option-to withhold for the purposes of set-off any moneys due to the Contractor under this contract up to any amounts due and owing to the State with regard to this contract, any other contract with any State department or agency, including any contract for a term commencing prior to the term of this contract, plus any amounts due and owing to the State for any other reason including, without limitation, tax delinquencies, fee delinquencies or monetary penalties relative thereto. The State shall exercise its set-off rights in accordance with normal State practices including, in cases of set-off pursuant to an audit, the finalization of such audit by the State agency, its representatives, or the State Comptroller. 10. RECORDS. The Contractor shall establish and maintain complete and accurate books, records, documents, accounts and other evidence directly pertinent to performance under this contract (hereinafter, collectively, "the Records"). The Records must be kept for the balance of the calendar year in which they were made and for six (6) additional years thereafter. The State Comptroller, the Attorney General and any other person or entity authorized to conduct an examination, as well as the agency or agencies involved in this contract, shall have access to the Records during normal business hours at an office of the Contractor within the State of New York or, if no such office is available, at a mutually agreeable and reasonable venue within the State, for the term specified above for the purposes of inspection, auditing and copying. The State shall take reasonable steps to protect from public disclosure any of the Records which are exempt from disclosure under Section 87 of the Public Officers Law (the "Statute") provided that: (i) the Contractor shall timely inform an appropriate State official, in writing, that said records should not be disclosed; and (ii) said records shall be sufficiently identified; and (iii) designation of said records as exempt under the Statute is reasonable. Nothing contained herein shall diminish, or in any way adversely affect, the State's right to discovery in any pending or future litigation. 11. IDENTIFYING INFORMATION AND PRIVACY NOTIFICATION. (a) FEDERAL EMPLOYER IDENTIFICATION NUMBER and/or FEDERAL SOCIAL SECURITY NUMBER. All invoices or New York State standard vouchers submitted for payment for the sale of goods or services or the lease of real or personal property to a New York State agency must include the payee's identification number, i.e., the seller's or lessor's identification number. The number is either the payee's Federal employer identification number or Federal social security number, or both such numbers when the payee has both such numbers. Failure to include this number or numbers may delay payment. Where the payee does not have such number or numbers, the payee, on its invoice or New York State standard voucher, must give the reason or reasons why the payee does not have such number or numbers. (b) PRIVACY NOTIFICATION. (1) The authority to request the above personal information from a seller of goods or services or a lessor of real or personal property, and the authority to maintain such information, is found in Section 5 of the State Tax Law. Disclosure of this information by the seller or lessor to the State is mandatory. The principal purpose for which the information is collected is to enable the State to identify individuals, businesses and others who have been delinquent in filing tax returns or may have understated their tax liabilities and to generally identify persons affected by the -taxes-administered by the-Commissioner-ofTaxation-and - Finance. The information will be used for tax administration purposes and for any other purpose authorized by law. (2) The personal information is requested by the purchasing unit of the agency contracting to purchase the goods or services or lease the real or personal property covered by this contract or lease. The information is maintained in New York State's Central Accounting System by the Director of Accounting Operations, Office of the State Comptroller, 110 State Street, Albany, New York 12236. 12. EQUAL EMPLOYMENT OPPORTUNITIES FOR MINORITIES AND WOMEN. In accordance with Section 312 of the Executive Law, if this contract is: (i) a written agreement or purchase order instrument, providing for a total expenditure in excess of $25,000.00, whereby a contracting agency is committed to expend or does expend funds in return for labor, services, supplies, equipment, materials or any combination of the foregoing, to be performed for, or rendered or furnished to the contracting agency; or (ii) a written agreement in excess of $100,000.00 whereby a contracting agency is committed to expend or does expend funds for the acquisition, construction, demolition, replacement, major repair or renovation of real property and improvements thereon; or (iii) a written agreement in excess of $100,000.00 whereby the owner of a State assisted housing project is committed to expend or does expend funds for the acquisition, construction, demolition, replacement, major repair or renovation of real property and improvements thereon for such project, then: (a) The Contractor will not discriminate against employees or applicants for employment because of race, creed, color, national origin, sex, age, disability or marital status, and will undertake or continue existing programs of affirmative action to ensure that minority group members and women are afforded equal employment opportunities without discrimination. Affirmative action shall mean recruitment, employment, job assignment, promotion, upgradings, demotion, transfer, layoff, or termination and rates of pay or other forms of compensation; (b) at the request of the contracting agency, the Contractor shall request each employment agency, labor union, or authorized representative of workers with which it has a collective bargaining or other agreement or understanding, to furnish a written statement that such employment agency, labor union or representative will not discriminate on the basis of race, creed, color, national origin, sex, age, disability or marital status and that such union or representative will affirmatively cooperate in the implementation of the contractor's obligations herein; and Page 4 November, 2010 STANDARD CLAUSES FOR NYS CONTRACTS APPEMDDI A (c) the Contractor shall state, in all solicitations or advertisements for employees, that, in the performance of the State contract, all qualified applicants will be afforded equal employment opportunities without discrimination because of race, creed, color, national origin, sex, age, disability or marital status. Contractor will include the provisions of "a", "b", and "c" above, in every subcontract over $25,000.00 for the construction, demolition, replacement, major repair, renovation, planning or design of real property and improvements thereon (the "Work") except where the Work is for the beneficial use of the Contractor. Section 312 does not apply to: (i) work, goods or services unrelated to this contract; or (ii)-employment outside -New York State;" or '(iii)'banking-" -- services, insurance policies or the sale of securities. The Statc shall consider compliance by a contractor or subcontractor with the requirements of any federal law concerning equal employment opportunity which effectuates the purpose of this section. The contracting agency shall determine whether the imposition of the requirements of the provisions hereof duplicate or conflict with any such federal law and if such duplication or conflict exists, the contracting agency shall waive the applicability of Section 312 to the extent of such duplication or conflict. Contractor will comply with all duly promulgated and lawful rules and regulations of the Governor's Office of Minority and Women's Business Development pertaining hereto. 13. CONFLICTING TERMS. In the event of a conflict between the terms of the contract (including any and all attachments thereto and amendments thereof) and the terms of this Appendix A, the terms of this Appendix A shall control. 14, GOVERNING LAW. This contract shall be governed by the laws of the State of New York except where the Federal supremacy clause requires otherwise. 15. LATE PAYMENT. Timeliness of payment and any interest to be paid to Contractor for late payment shall be governed by Article 11-A of the State Finance Law to the extent required by law. 16. NO ARBITRATION. Disputes involving this contract, including the breach or alleged breach thereof, may not be submitted to binding arbitration (except where statutorily authorized), but must, instead, be heard in a court of competent jurisdiction of the State of New York. 17. SERVICE OF PROCESS. In addition to the methods of service allowed by the State Civil Practice Law & Rules ("CPLR"), Contractor hereby consents to service of process upon it by registered or certified mail, return receipt requested. Service hereunder shall be complete upon Contractor's actual receipt of process or upon the State's receipt of the return thereof by the United States Postal Service as refused or undeliverable. Contractor must promptly notify the State, in writing, of each and every change of address to which service of process can be made. Service by the State to the last known address shall be sufficient. Contractor will have thirty (30) calendar days after service hereunder is complete in which to respond. 18. PROHIBITION ON PURCHASE OF TROPICAL HARDWOODS. The Contractor certifies and warrants that all wood products to be used under this contract award will be in Page 5 November, 2010 accordance with, but not limited to, the specifications and provisions of Section 165 of the State Finance Law, (Use of Tropical Hardwoods) which prohibits purchase and use of tropical hardwoods, unless specifically exempted, by the State or any governmental agency or political subdivision or public benefit corporation. Qualification for an exemption under this law will be the responsibility of the contractor to establish to meet with the approval of the State. In addition, when any portion of this contract involving the use of woods, whether supply or installation, is to be performed by any subcontractor, the prime Contractor will indicate and certify in the submitted bid proposal that the subcontractor has been informed and is in compliance with specifications and —provisions-regarding°use -of tropical -hardwoods as detailed -in _. § 165 State Finance Law. Any such use must meet with the approval of the State; otherwise, the bid may not be considered responsive. Under bidder certifications, proof of qualification for exemption will be the responsibility of the Contractor to meet with the approval of the State. 19. MACBRIDE FAIR EMPLOYMENT PRINCIPLES. In accordance with the MacBride Fair Employment Principles (Chapter 807 of the Laws of 1992), the Contractor hereby stipulates that the Contractor either (a) has no business operations in Northern Ireland, or (b) shall take lawful steps in good faith to conduct any business operations in Northern Ireland in accordance with the MacBride Fair Employment Principles (as described in Section 165 of the New York State Finance Law), and shall permit independent monitoring of compliance with such principles. 20. OMNIBUS PROCUREMENT ACT OF 1992. It is the policy of New York State to maximize opportunities for the participation of New York State business enterprises, including minority and women -owned business enterprises as bidders, subcontractors and suppliers on its procurement contracts. Information on the availability of New York State subcontractors and suppliers is available from: NYS Department of Economic Development Division for Small Business 30 South Pearl St -- 7th Floor Albany, New York 12245 Telephone: 518-292-5220 Fax: 518-292-5884 http://www.empire.state.ny.us A directory of certified minority and women -owned business enterprises is available from: NYS Department of Economic Development Division of Minority and Women's Business Development 30 South Pearl St -- 2nd Floor Albany, New York 12245 Telephone: 518-292-5250 Fax: 518-292-5803 http://www.empire.state.ny.us The Omnibus Procurement Act of 1992 requires that by signing this bid proposal or contract, as applicable, Contractors certify that whenever the total bid amount is greater than $1 million: STANDARD CLAUSES FOR NYS CONTRACTS APPENDIXA (a) The Contractor has made reasonable efforts to encourage the participation of New York State Business Enterprises as suppliers and subcontractors, including certified minority and women -owned business enterprises, on this project, and has retained the documentation of these efforts to be provided upon request to the State; (b) The Contractor has complied with the Federal Equal Opportunity Act of 1972 (P.L. 92-261), as amended; (c) The Contractor agrees to make reasonable efforts to provide notification to New York State residents of employment opportunities on this project through listing any such positions with the Job Service Division of the New York State -Department -of Labor, or providing such notification in such manner as is consistent with existing collective bargaining contracts or agreements. The Contractor agrees to document these efforts and to provide said documentation to the State upon request; and (d) The Contractor acknowledges notice that the State may seek to obtain offset credits from foreign countries as a result of this contract and agrees to cooperate with the State in these efforts. 21. RECIPROCITY AND SANCTIONS PROVISIONS. Bidders are hereby notified that if their principal place of business is located in a country, nation, province, state or political subdivision that penalizes New York State vendors, and if the goods or services they offer will be substantially produced or performed outside New York State, the Omnibus Procurement Act 1994 and 2000 amendments (Chapter 684 and Chapter 383, respectively) require that they be denied contracts which they would otherwise obtain. NOTE: As of May 15, 2002, the list of discriminatory jurisdictions subject to this provision includes the states of South Carolina, Alaska, West Virginia, Wyoming, Louisiana and Hawaii. Contact NYS Department of Economic Development for a current list of jurisdictions subject to this provision. 22. COMPLIANCE WITH NEW YORK STATE INFORMATION SECURITY BREACH AND NOTIFICATION ACT. Contractor shall comply with the provisions of the New York State Information Security Breach and Notification Act (General Business Law Section 899-aa; State Technology Law Section 208). 23. COMPLIANCE WITH CONSULTANT DISCLOSURE LAW. If this is a contract for consulting services, defined for purposes of this requirement to include analysis, evaluation, research, training, data processing, computer programming, engineering, environmental, health, and mental health services, accounting, auditing, paralegal, legal or similar services, then, in accordance with Section 163 (4-g) of the State Finance Law (as amended by Chapter 10 of the Laws of 2006), the Contractor shall timely, accurately and properly comply with the requirement to submit an annual employment report for the contract to the agency that awarded the contract, the Department of Civil Service and the State Comptroller. 24. PROCUREMENT LOBBYING. To the extent this agreement is a "procurement contract" as defined by State Finance Law Sections 139-j and 139-k, by signing this agreement the contractor certifies and affirms that all disclosures made in accordance with State Finance Law Sections 139-j and 139-k are complete, true and accurate. In the event such certification is found to be intentionally false or intentionally incomplete, the State may terminate the agreement by providing written notification to the Contractor in accordance with the terms of the agreement. 25. CERTIFICATION OF REGISTRATION TO COLLECT SALES AND COMPENSATING USE TAX BY CERTAIN STATE CONTRACTORS, AFFILIATES AND SUBCONTRACTORS. To the extent this agreement is a contract as defined by Tax Law Section 5-a, if the contractor fails to make the certification required by Tax Law Section 5-a or if during the term of the contract, the Department of Taxation and Finance or the • covered agency, as defined by Tax Law 5-a,-discovers that the certification, made under penalty of perjury, is false, then such failure to file or false certification shall be a material breach of this contract and this contract may be terminated, by providing written notification to the Contractor in accordance with the terms of the agreement, if the covered agency determines that such action is in the best interest of the State. Page 6 November, 2010 NEW YORK STATE OFFICE OF GENERAL SERVICES PROCUREMENT SERVICES GROUP APPENDIX B GENERAL SPECIFICATIONS PLEASE RETAIN THIS DOCUMENT FOR FUTURE REFERENCE July 2006 GENERAL SPECIFICATIONS APPENDIX B TABLE OF CONTENTS GENERAL 1. Applicability 2. Governing Law 3. Ethics Compliance 4. Conflict of Terms 5. Definitions BID SUBMISSION 6. _._International Bidding ,.,___ 7. Bid Opening 8. Bid Submission 9. Facsimile Submissions 10. Authentication of Facsimile Bids 11. Late Bids 12. Bid Contents 13. Extraneous Terms 14. Confidential/Trade Secret Materials 15. Release of Bid Evaluation Materials 16. Freedom of Information Law 17. Prevailing Wage Rates - Public Works and Building Services Contracts 18. Taxes 19. Expenses Prior to Contract Execution 20. Advertising Results 21. Product References 22. Remanufactured, Recycled, Recyclable Or Recovered Materials 23. Products Manufactured in Public Institutions 24. Pricing 25. Drawings 26. Site Inspection 27. Procurement Card 28. Samples BID EVALUATION 29. Bid Evaluation 30. Conditional Bid 31. Clarification/Revisions 32. Prompt Payment Discounts 33. Equivalent or Identical Bids 34. Performance and Responsibility Qualifications 35. Disqualification for Past Performance 36. Quantity Changes Prior To Award 37. Timeframe for Offers TERMS & CONDITIONS 38. Contract Creation/Execution 39. Participation in Centralized Contracts 40. Modification of Contract Terms 41. Scope Changes 42. Estimated/Specific Quantity Contracts PAGE TERMS & CONDITIONS 1 43. Emergency Contracts 1 44. Purchase Orders 1 45. Product Delivery 1 46. Weekend and Holiday Deliveries 1-3 47. Shipping/Receipt of Product 48. Title and Risk of Loss 49. Re -Weighing Product 50. Product Substitution 51. Rejected Product 52. Installation 53. Repaired or Replaced Product/ Components 54. On -Site Storage 55. Employees/Subcontractors/Agents 56. Assignment 57. Subcontractors and Suppliers 58. Performance/Bid Bond 59. Suspension of Work 60. Termination 61. Savings/Force Majeure 62. Contract Billings 63. Default - Authorized User 64. Interest on Late Payments 65. Remedies for Breach 66. Assignment of Claim 67. Toxic Substances 68. Independent Contractor 69. Security 70. Cooperation with Third Parties 71. Contract Term - Renewal 72. Additional Warranties 73. Legal Compliance 74. Indemnification 75. Indemnification Relating to Third Party Rights 76. Limitation of Liability 77. Insurance 3 3 3 3 4 4 4 4 4 4 5 5 6 6 6 6 6 6 6 7 7 7 7 8 8 8 8 8 8 8 8 8 8 8 9 9 9 PAGE 9 9 10 10 10 10 10 10 10 11 11 11 11 11 11 11 11 12 12 12 12 13 13 13 13 13 13 13 13 15 15 15 15 15 THE FOLLOWING CLAUSES PERTAIN TO TECHNOLOGY & NEGOTIATED CONTRACTS 78. Software License Grant 79. Product Acceptance 80. Audit of Licensed Product Usage 81. Ownership/Title to Project Deliverables 82. Proof of License 83. Product Version 84. Changes to Product or Service Offerings 85. No Hardstop/Passive License Monitoring 86. Source Code Escrow for Licensed Product 15 17 17 17 18 18 18 19 19 July 2006 GENERAL SPECIFICATIONS APPENDIX B GENERAL 1. APPLICABILITY The terms and conditions set forth in this Appendix B are expressly incorporated in and applicable to the resulting procurement contracts let by the Office of General Services Procurement Services Group, or let by any other Authorized User where incorporated by reference in its Bid Documents. Captions are intended as descriptive and are not intended to limit or otherwise restrict the terms and conditions set forth herein. 2. GOVERNING LAW This procurement, the resulting contract and any purchase orders issued hereunder shall be governed by the laws of the State of New York except where the Federal supremacy clause requires otherwise, and actions or proceedings arising from the ___ contract shall be heard in a court of competent jurisdiction in the State of New York. 3. ETHICS COMPLIANCE All Bidders/Contractors and their employees must comply with the requirements of Sections 73 and 74 of the Public Officers Law, other State codes, rules, regulations and executive orders establishing ethical standards for the conduct of business with New York State. In signing the Bid, Bidder certifies full compliance with those provisions for any present or future dealings, transactions, sales, contracts, services, offers, relationships, etc., involving New York State and/or its employees. Failure to comply with those provisions may result in disqualification from the Bidding process, termination of contract, and/or other civil or criminal proceedings as required by law. 4. CONFLICT OF TERMS Unless otherwise set forth in the procurement or contract documents, conflicts among documents shall be resolved in the following order of precedence: a. Appendix A (Standard Clauses for NYS Contracts) b. Mini -Bid Protect Definition if applicable and in accordance with the terms and conditions of the Back -Drop Contract. c. Contract and other writing(s) setting forth the final agreements, clarifications and terms between the Bid Documents and Contractor's Bid. In the latter circumstance, clarifications must specifically note in writing what was offered by the Contractor and what was accepted by the State. If not, such clarifications shall be considered last in the order of precedence under this paragraph. d. Bid Documents (Other than Appendix A). i. Bid Specifications prepared by the Authorized User. ii. Appendix B (General Specifications). iii. Incorporated Contract Appendices, if any, following the order of precedence as stated for Contract above. e. Contractor's Bid or Mini -Bid Proposal. f. Unincorporated Appendices (if any). 5. DEFINITIONS Terms used in this Appendix B shall have the following meanings: AFFILIATE Any individual or other legal entity, (including but not limited to sole proprietor, partnership, limited liability company, firm or corporation) that effectively controls another company in which (a) the Bidder owns more than 50% of the ownership; or (b) any individual or other legal entity which owns more than 50% of the ownership of the Bidder. In addition, if a Bidder owns less than 50% of the ownership of another legal entity, but directs or has the right to direct such entity's daily operations, that entity will be an Affiliate. AGENCY OR AGENCIES The State of New York, acting by or through one or more departments, boards, commissions, offices or institutions of the State of New York. ATTORNEY GENERAL Attorney General of the State of New York. AUTHORIZED USER(S) Agencies, or any other entity authorized by the laws of the State of New York to participate in NYS centralized contracts (including but not limited to political subdivisions, public authorities, public benefit corporations and certain other entities set forth in law), or the State of New York acting on behalf of one or more such Agencies or other entities, provided that each such Agency or other entity shall be held solely responsible for liabilities or payments due as a result of its participation. BID OR BID PROPOSAL An offer or proposal submitted by a Bidder to furnish a described product or a solution, perform services or means of achieving a practical end, at a stated price for the stated Contract term. As required by the Bid Documents, the Bid or proposal may be- subject to modification through the solicitation by the Agency of best and final offers during the evaluation process prior to recommendation for award of the Contract. BIDDER/OFFERER Any individual or other legal entity (including but not limited to sole proprietor, partnership, limited liability company, firm or corporation) which submits a Bid in response to a Bid Solicitation. The term Bidder shall also include the term "offeror." In the case of negotiated Contracts, "Bidder" shall refer to the "Contractor." BID DOCUMENTS Writings by the State setting forth the scope, terms, conditions and technical specifications for a procurement of Product. Such writings typically include, but are not limited to: Invitation for Bids (IFB), Request for Quotation (RFQ), Request for Proposals (RFP), addenda or amendments thereto, and terms and conditions which are incorporated by reference, including but not limited to, Appendix A (Standard Clauses for NYS Contracts), Appendix B, (General Specifications). Where these General Specifications are incorporated in negotiated Contracts that have not been competitively Bid, the term "Bid Documents" shall be deemed to refer to the terms and conditions set forth in the negotiated Contract and associated documentation. BID SPECIFICATION A written description drafted by the Authorized User setting forth the specific terms of the intended procurement, which may include: physical or functional characteristics, the nature of a commodity or construction item, any description of the work to be performed, Products to be provided, the necessary qualifications of the Bidder, the capacity and capability of the Bidder to successfully carry out the proposed Contract, or the process for achieving specific results and/or anticipated outcomes or any other requirement necessary to perform work. Where these General Specifications are incorporated in negotiated Contracts that have not been competitively Bid, the term "Bid Specifications" shall be deemed to refer to the terms and conditions set forth in the negotiated Contract and associated documentation. COMMISSIONER Commissioner of OGS, or in the case of Bid Specifications issued by an Authorized User, the head of such Authorized User or their authorized representative. COMPTROLLER Comptroller of the State of New York. CONTRACT The writing(s) which contain the agreement of the Commissioner and the Bidder/Contractor setting forth the total legal obligation between the parties as determined by applicable rules of law, and which most typically include the following classifications of public procurements: July 2006 1 GENERAL SPECIFICATIONS APPENDIX B a. Agency Specific Contracts Contracts where the specifications for a Product or a particular scope of work are described and defined to meet the needs of one or more Authorized User(s). b. Centralized Contracts Single or multiple award Contracts where the specifications for a Product or general scope of work are described and defined by the Office of General Services to meet the needs of Authorized Users. Centralized Contracts may be awarded through multiple awards or through adoption of another jurisdiction's contract or on a sole source, single source, emergency or competitive basis. Once established, procurements may be made from the selected Contractor(s) without further competition or Mini -Bid unless otherwise required by the Bid Specifications or Contract Award Notification. c. Back -Drop Contracts Multiple award Centralized Contracts where the Office of General. Services defines the specifications for a Product or general scope of work to meet the needs of Authorized Users. Bids may be submitted either at a date and time certain or may be accepted on a continuous or periodic recruitment basis, as set forth in the Bid Specifications. Selection of a Contractor(s) from among Back -Drop contract holders for an actual Product, project or particular scope of work may subsequently be made on a single or sole source basis, or on the basis of a Mini -Bid among qualified Back -Drop contract holders, or such other method as set forth in the Bid Document. d. Piggyback Contract A Contract let by any department, agency or instrumentality of the United States government, or any department, agency, office, political subdivision or instrumentality of any state or state(s) which is adopted and extended for use by the OGS Commissioner in accordance with the requirements of the State Finance Law. e. Contract Letter A letter to the successful Bidder(s) indicating acceptance of its Bid in response to a solicitation. Unless otherwise specified, the issuance of a Letter of Acceptance forms a Contract but is not an order for Product, and Contractor should not take any action with respect to actual Contract deliveries except on the basis of Purchase Orders sent from Authorized User(s). CONTRACT AWARD NOTIFICATION An announcement to Authorized Users that a Contract has been established. CONTRACTOR Any successful Bidder(s) to whom a Contract has been awarded by the Commissioner. DOCUMENTATION The complete set of manuals (e.g., user, installation, instruction or diagnostic manuals) in either hard or electronic copy, which are necessary to enable an Authorized User to properly test, install, operate and enjoy full use of the Product. EMERGENCY An urgent and unexpected requirement where health and public safety or the conservation of public resources is at risk. ENTERPRISE The total business operations in the United States of Authorized User (s) without regard to geographic location where such operations are performed or the entity actually performing such operations on behalf of Authorized User. ENTERPRISE LICENSE A license grant of unlimited rights to deploy, access, use and execute Product anywhere within the Enterprise up to the maximum capacity stated on the Purchase Order or in the Contract. ERROR CORRECTIONS Machine executable software code fumished by Contractor which corrects the Product so as to conform to the applicable warranties, performance standards and/or obligations of the Contractor. GROUP A classification of Product, services or technology which is designated by OGS. INVITATION FOR BIDS (IFB) A type of Bid Document which is most typically used where requirements can be stated and award will be made based on lowest price to the responsive and responsible Bidder(s). LICENSED SOFTWARE Software transferred upon the terms and conditions set forth in the Contract. "Licensed Software" includes error corrections, upgrades, enhancements or new releases, and any deliverables due under a maintenance or service contract (e.g., patches, fixes, PTFs, programs, code or data conversion, or custom programming). LICENSEE One or more Authorized Users who acquire Product from Contractor by issuing a Purchase Order in accordance with the terms and conditions of the Contract; provided that, for purposes of compliance with an individual license, the term "Licensee" shall be deemed to refer separately to the individual Authorized User(s) who took receipt of and who is executing the Product, and who shall be solely responsible for performance and liabilities incurred. In the case of acquisitions by State Agencies, the Licensee shall be the State of New York. LICENSE EFFECTIVE DATE The date Product is delivered to an Authorized User. Where a License involves Licensee's right to copy a previously licensed and delivered Master Copy of a Program, the license effective date for additional copies shall be deemed to be the date on which the Purchase Order is executed. LICENSOR A Contractor who transfers rights in proprietary Product to Authorized Users in accordance with the rights and obligations specified in the Contract. MINI -BID PROJECT DEFINITION A Bid Document containing project specific Bid Specifications developed by or for an Authorized User which solicits Bids from Contractors previously qualified under a Back -Drop Contract. MULTIPLE AWARD A determination and award of a Contract in the discretion of the Commissioner to more than one responsive and responsible Bidder who meets the requirements of a specification, where the multiple award is made on the grounds set forth in the Bid Document in order to satisfy multiple factors and needs of Authorized Users (e.g., complexity of items, various manufacturers, differences in performance required to accomplish or produce required end results, production and distribution facilities, price, compliance with delivery requirements, geographic location or other pertinent factors). NEW PRODUCT RELEASES (Product Revisions) Any commercially released revisions to the licensed version of a Product as may be generally offered and available to Authorized Users. New releases involve a substantial revision of functionality from a previously released version of the Product. OGS The New York State Office of General Services. PROCUREMENT RECORD Documentation by the Authorized User of the decisions made and approach taken during the procurement process and during the contract term. July 2006 2 GENERAL SPECIFICATIONS APPENDIX B PRODUCT A deliverable under any Bid or Contract which may include commodities, services and/or technology. The term "Product" includes Licensed Software. PROPRIETARY Protected by secrecy, patent, copyright or trademark against commercial competition. PURCHASE ORDER The Authorized User's fiscal form or format that is used when making a purchase (e.g., formal written Purchase Order, Procurement Card, electronic Purchase Order, or other authorized instrument). REQUEST FOR PROPOSALS (RFP) A type of Bid Document that is used for procurements where factors in addition to cost are considered and weighted in awarding the contract and where the method of award is "best value," as defined by the State Finance Law. REQUEST FOR QUOTATION (RFQ) A type of Bid Document that can be used when a formal Bid opening is not required (e.g., discretionary, sole source, single source or emergency purchases). RESPONSIBLE BIDDER A Bidder that is determined to have financial and organizational capacity, legal authority, satisfactory previous performance, skill, judgment and integrity, and that is found to be competent, reliable and experienced, as determined by the Commissioner. For purposes of being deemed responsible, a Bidder must also be determined to be in compliance with Sections 139 j and 139-k of the State Finance Law relative to restrictions on contacts during the procurement process and disclosure of contacts and prior findings of non -responsibility under these statutes. RESPONSIVE BIDDER A Bidder meeting the specifications or requirements prescribed in the Bid Document or solicitation, as determined by the OGS Commissioner. SINGLE SOURCE A procurement where two or more Bidders can supply the required Product, and the Commissioner may award the contract to one Bidder over the other. SITE The location (street address) where Product will be executed or services delivered. SOLE SOURCE A procurement where only one Bidder is capable of supplying the required Product. SOURCE CODE The programming statements or instructions written and expressed in any language understandable by a human being skilled in the art which are translated by a language compiler to produce executable machine Object Code. STATE State of New York. SUBCONTRACTOR Any individual or other legal entity, (including but not limited to sole proprietor, partnership, limited liability company, firm or corporation) who has entered into a contract, express or implied, for the performance of a portion of a Contract with a Contractor. TERMS OF LICENSE The terms and conditions set forth in the Contract that are in effect and applicable to a Purchase Order at the time of order placement. VIRUS Any computer code, whether or not written or conceived by Contractor, that disrupts, disables, harms, or otherwise impedes in any manner the operation of the Product, or any other associated software, firmware, hardware, or computer system (such as local area or wide - area networks), including aesthetic disruptions or distortions, but does not include security keys or other such devices installed by Product manufacturer. BID SUBMISSION 6. INTERNATIONAL BIDDING All offers (tenders), and all information and Product required by the solicitation or provided as explanation thereof, shall be submitted in English. All prices shall be expressed, and all payments shall be made, in United States Dollars ($US). Any offers (tenders) submitted which do not meet the above criteria will be rejected. 7. BID OPENING Bids may, as applicable, be opened publicly. The Commissioner reserves the right at any time to postpone or cancel a scheduled Bid opening: 8. BID SUBMISSION All Bids are to be packaged, sealed and submitted to the location stated in the Bid Specifications. Bidders are solely responsible for timely delivery of their Bids to the location set forth in the Bid Specifications prior to the stated Bid opening date/time. A Bid return envelope, if provided with the Bid Specifications, should be used with the Bid sealed inside. If the Bid response does not fit into the envelope, the Bid envelope should be attached to the outside of the sealed box or package with the Bid inside. If using a commercial delivery company that requires use of their shipping package or envelope, Bidder's sealed Bid, labeled as detailed below, should be placed within the shipper's sealed envelope to ensure that the Bid is not prematurely opened. All Bids must have a label on the outside of the package or shipping container outlining the following information: "BID ENCLOSED (bold print, all capitals) • Group Number IFB or RFP Number • Bid Submission date and time" In the event that a Bidder fails to provide such information on the return Bid envelope or shipping material, the receiving entity reserves the right to open the shipping package or envelope to determine the proper Bid number or Product group, and the date and time of Bid opening. Bidder shall have no claim against the receiving entity arising from such opening and such opening shall not affect the validity of the Bid or the procurement. Notwithstanding the receiving agency's right to open a Bid to ascertain the foregoing information, Bidder assumes all risk of late delivery associated with the Bid not being identified, packaged or labeled in accordance with the foregoing requirements. All Bids must be signed by a person authorized to commit the Bidder to the terms of the Bid Documents and the content of the Bid (offer). 9. FACSIMILE SUBMISSIONS Unless specifically prohibited by the terms of the Bid Specifications, facsimile Bids may be SUBMITTED AT THE SOLE OPTION AND RISK OF THE BIDDER. Only the FAX number(s) indicated in the Bid Specifications may be used. Access to the facsimile machine(s) is on a "first come, first serve" basis, and the Commissioner bears no liability or responsibility and makes no guarantee whatsoever with respect to July 2006 3 GENERAL SPECIFICATIONS APPENDIX B the Bidder's access to such equipment at any specific time. Bidders are solely responsible for submission and receipt of the entire facsimile Bid by the Authorized User prior to Bid opening and must include on the first page of the transmission the total number of pages transmitted in the facsimile, including the cover page. Incomplete, ambiguous or unreadable transmissions in whole or in part may be rejected at the sole discretion of the Commissioner. Facsimile Bids are fully governed by all conditions outlined in the Bid Documents and must be submitted on forms or in the format required in the Bid Specifications, including the executed signature page and acknowledgment. 10. AUTHENTICATION OF FACSIMILE BIDS The act of submitting a Bid by facsimile transmission, including an executed signature page or as otherwise specified in the Bid Documents, shall be deemed a confirming act by Bidder which authenticates the signing of the Bid. 11. LATE BIDS For purposes of Bid openings held and conducted by OGS, a Bid must be received in such place as may be designated in the Bid Documents or if no place is specified in the OGS Mailroom located in the Empire State Plaza, Albany, New York 12242, at or before the date and time established in the Bid Specifications for the Bid opening. For purposes of Bid openings held and conducted by Authorized Users other than OGS, the term late Bid is defined as a Bid not received in the location established in the Bid Specifications at or before the date and time specified for the Bid opening. Any Bid received at the specified location after the time specified will be considered a late Bid. A late Bid shall not be considered for award unless: (i) no timely Bids meeting the requirements of the Bid Documents are received or, (ii) in the case of a multiple award, an insufficient number of timely Bids were received to satisfy the multiple award; and acceptance of the late Bid is in the best interests of the Authorized Users. Bids submitted for continuous or periodic recruitment contract awards must meet the submission requirements associated with their specifications. Delays in United States mail deliveries or any other means of transmittal, including couriers or agents of the Authorized User shall not excuse late Bid submissions. Similar types of delays, including but not limited to, bad weather, or security procedures for parking and building admittance shall not excuse late Bid submissions. Determinations relative to Bid timeliness shall be at the sole discretion of the Commissioner. 12. BID CONTENTS Bids must be complete and legible. All Bids must be signed. All information required by the Bid Specifications must be supplied by the Bidder on the forms or in the format specified. No alteration, erasure or addition is to be made to the Bid Documents. Changes may be ignored by the Commissioner or may be grounds for rejection of the Bid. Changes, corrections and/or use of white -out in the Bid or Bidder's response portion of the Bid Document must be initialed by an authorized representative of the Bidder. Bidders are cautioned to verify their Bids before submission, as amendments to Bids or requests for withdrawal of Bids received by the Commissioner after the time specified for the Bid opening, may not be considered. 13. EXTRANEOUS TERMS Bids must conform to the terms set forth in the Bid Documents, as extraneous terms or material deviatii ns (including additional, inconsistent, conflicting or alternative terms) may render the Bid non -responsive and may result in rejection ofithe Bid. Extraneous term(s) submitted on standard, pre-printed forms (including but not limited to: product literature, order forms, license agreements, contracts or other documents) that are attached or referenced with submissions shall not be considered part of the Bid or resulting Contract, but shall be deemed included for informational or promotional purposes only. Only those extraneous terms that meet all the following requirements may be considered as having been submitted as part of the Bid: a. Each proposed extraneous term (addition, deletion, counter-offer, deviation, or modification) must be specifically enumerated in a writing which is not part of a pre-printed form; and b. The writing must identify the particular specification requirement (if any) that Bidder rejects or proposes to modify by inclusion of the extraneous term; and c. The Bidder shall enumerate the proposed addition, counter offer, modification or deviation from the Bid Document, and the reasons therefore. No extraneous term(s), whether or not deemed "material," shall be incorporated into a Contract or Purchase Order unless submitted in accordance with the above and the Commissioner or Authorized User expressly accepts each such term(s) in writing. Acceptance and/or processing of the Bid shall not constitute such written acceptance of Extraneous Term(s). 14. CONFIDENTIAL/TRADE SECRET MATERIALS a. Contractor Confidential, trade secret or proprietary materials as defined by the laws of the State of New York must be clearly marked and identified as such upon submission by the Bidder. Marking the Bid as "confidential" or "proprietary" on its face or in the document header or footer shall not be considered by the Commissioner or Authorized User to be sufficient without specific justification as to why disclosure of particular information in the Bid would cause substantial injury to the competitive position of the Bidder. Bidders/Contractors intending to seek an exemption from disclosure of these materials under the Freedom of Information Law must request the exemption in writing, setting forth the reasons for the claimed exemption. Acceptance of the claimed materials does not constitute a determination on the exemption request, which determination will be made in accordance with statutory procedures. Properly identified information that has been designated confidential, trade secret, or proprietary by the Bidder will not be disclosed except as may be required by the Freedom of Information Law or other applicable State and federal laws. b. Commissioner or Authorized User Contractor further warrants, covenants and represents that any confidential information obtained by Contractor, its agents, Subcontractors, officers, distributors, resellers or employees in the course of performing its obligations, including without limitation, security procedures, business operations information, or commercial proprietary information in the possession of the State or any Authorized User hereunder or received from another third party, will not be divulged to any third parties. Contractor shall not be required to keep confidential any such material that is publicly available through no fault of Contractor, independently developed by Contractor without reliance on confidential information of the Authorized User, or otherwise obtained under the Freedom of Information Act or other applicable New York State laws and regulations. This warranty shall survive termination of this Contract. Contractor further agrees to take appropriate steps as to its agents, Subcontractors, officers, distributors, resellers or employees regarding the obligations arising under this clause to insure such confidentiality. 15. RELEASE OF BID EVALUATION MATERIALS Requests concerning the evaluation of Bids may be submitted under the Freedom of Information Law. Information, other than statistical or July 2006 4 GENERAL SPECIFICATIONS APPENDIX B factual tabulations or data such as the Bid Tabulation, shall only be released as required by law after Contract award. Bid Tabulations are not maintained for all procurements. Names of Bidders may be disclosed after Bid opening upon request. Written requests should be directed to the Commissioner. 16. FREEDOM OF INFORMATION LAW During the evaluation process, the content of each Bid will be held in confidence and details of any Bid will not be revealed (except as may be required under the Freedom of Information Law or other State law). The Freedom of Information Law provides for an exemption from disclosure for trade secrets or information the disclosure of which would cause injury to the competitive position of commercial enterprises. This exception would be effective. both during and _after the_eyaluation process. If the Bid contains any such trade secret or other confidential or proprietary information, it must be accompanied in the Bid with a written request to the Commissioner to not disclose such information: Such request -• must state with particularity the reasons why the information should not be available for disclosure and must be provided at the time of submission of the Bid. Notations in the header, footer or watermark of the Bid Document will not be considered sufficient to constitute a request for non -disclosure of trade secret or other confidential or proprietary information. Where a Freedom of Information request is made for trademark or other confidential or proprietary information, the Commissioner reserves the right to determine upon written notice to the Bidder whether such information qualifies for the exemption for disclosure under the law. Notwithstanding the above, where a Bid tabulation is prepared and Bids publicly opened, such Bid tabulation shall be available upon request. _ 17. PREVAILING WAGE RATES - PUBLIC WORKS AND BUILDING SERVICES CONTRACTS If any portion of work being Bid is subject to the prevailing wage rate provisions of the Labor Law, the following shall apply: a. "Public Works" and `Building Services" - Definitions i. Public Works Labor Law Article 8 applies to contracts for public improvement in which laborers, workers or mechanics are employed on a "public works" project (distinguished from public "procurement" or "service" contracts). The State, a public benefit corporation, a municipal corporation (including a school district), or a commission appointed by law must be a party to the Contract. The wage and hours provision applies to any work performed by Contractor or Subcontractors. ii. Building Services Labor Law Article 9 applies to Contracts for building service work over $1,500 with a public agency, that: (i) involve the care or maintenance of an existing building, or (ii) involve the transportation of office furniture or equipment to or from such building, or (iii) involve the transportation and delivery of fossil fuel to such building, and (iv) the principal purpose of which is to furnish services through use of building service employees. b. Prevailing Wage Rate Applicable to Bid Submissions A copy of the applicable prevailing wage rates to be paid or provided are annexed to the Bid Documents. Bidders must submit Bids which are based upon the prevailing hourly wages, and supplements in cash or equivalent benefits (i.e., fringe benefits and any cash or non -cash compensation which are not wages, as defined by law) that equal or exceed the applicable prevailing wage rate(s) for the location where the work is to be performed. Bidders may not submit Bids based upon hourly wage rates and supplements below the applicable prevailing wage rates as established by the New York State Department of Labor. Bids that fail to comply with this requirement will be disqualified. c. Wage Rate Payments / Changes During Contract Term The wages to be paid under any resulting Contract shall not be less than the prevailing rate of wages and supplements as set forth by law. It is required that the Contractor keep informed of all changes in the Prevailing Wage Rates during the Contract term that apply to the classes of individuals supplied by the Contractor on any projects resulting from this Contract, subject to the provisions of the Labor Law. Contractor is solely liable for and must pay such required prevailing wage adjustments during the Contract term as required by law. d. Public Posting & Certified Payroll Records In compliance with Article 8, Section 220 of the New York State Labor Law: i. Posting The Contractor must publicly post on the work site, in a prominent and accessible place, a legible schedule of the prevailing wage rates and supplements. ii. Payroll Records Contractors and Subcontractors must keep original payrolls or transcripts subscribed and affirmed as true under the penalties of perjury as required by law. For public works contracts over $25,000 where the Contractor maintains no regular place of business in New York State, such records must be kept at the work site. For building services contracts, such records must be kept at the work site while work is being performed. iii. Submission of Certified Payroll Transcripts for Public Works Contracts Only Contractors and Subcontractors on public works projects must submit monthly payroll transcripts to the Authorized User that has prepared or directs the preparation of the plans and specifications for a public works project, as set forth in the Bid Specifications. For Mini -Bid solicitations, the payroll records must be submitted to the entity preparing the agency Mini -Bid project specification. For "agency specific" Bids, the payroll records should be submitted to the entity issuing the purchase order. For all other OGS Centralized Contracts, such records should be submitted to the individual agency issuing the purchase order(s) for the work. Upon mutual agreement of the Contractor and the Authorized User, the form of submission may be submitted in a specified disk format acceptable to the -Department of Labor provided: 1) the Contractor/Subcontractor retains the original records; and, (2) an original signed letter by a duly authorized individual of the Contractor or Subcontractor attesting to the truth and accuracy of the records accompanies the disk. This provision does not apply to Article 9 of the Labor Law building services contracts. iv. Records Retention Contractors and Subcontractors must preserve such certified transcripts for a period of three years from the date of completion of work on the awarded contract. Day's Labor Eight hours shall constitute a legal day's work for all classes of employees in this state except those engaged in farm and domestic service unless otherwise provided by law. No laborers, workmen or mechanics in the employ of the Contractor, Subcontractor or other person doing or contracting to do all or part of the work contemplated by the Contract shall be permitted or required to work more than eight hours in any one calendar day or more than five calendar days in any one week except in cases of extraordinary emergency including fire, flood or danger to life or property. "Extraordinary emergency" shall be deemed to include situations in which sufficient laborers, workers and mechanics cannot be employed to carry on public work expeditiously as a result of such restrictions upon the number of hours and days of labor and the immediate commencement or prosecution or completion without undue delay of the public work is necessary in the judgment of the NYS July 2006 5 GENERAL SPECIFICATIONS APPENDIX B Commissioner of Labor for the preservation of the Contract site or for the protection of the life and limb of the persons using the Contract site. 18. TAXES ' a. Unless otherwise specified in the Bid Specifications or Contract, the quoted Bid price includes all taxes applicable to the transaction. b. Purchases made by the State of New York and certain non -State Authorized Users are exempt from New York State and local sales taxes and, with certain exceptions, federal excise taxes. To satisfy the requirements of the New York State Sales tax exemption, either the Purchase Order issued by a State Agency or the invoice forwarded to authorize„payment for_such purchases will.be sufficient evidence that.,,,,, the sale by the Contractor was made to the State, an exempt organization under Section 1116 (a) (1) of the Tax Law. Non -State Authorized Users must offer their own proof of exemption upon request. No person, firm or corporation is, however, exempt from paying the State Truck Mileage and Unemployment Insurance or Federal Social Security taxes, which remain the sole responsibility of the Bidder/Contractor. c. Pursuant to Revised Tax Law 5-a, Contractor will be required to furnish sales tax certification on its behalf and for its affiliates, and subcontractors for Contracts with a value greater than $100,000 in accordance with provisions of the law. d. Purchases by Authorized Users other than the State of New York may be subject to certain taxes which were not included in the Bid price, and in those instances the tax should be computed based on the Contract price and added to the invoice submitted to such entity for payment. 19. EXPENSES PRIOR TO CONTRACT EXECUTION The Commissioner and any Authorized User(s) are not liable for any costs incurred by a Vendor, Bidder or Contractor in the preparation and production of a Bid, Mini -Bid or best and final offers or for any work performed prior to Contract execution. 20. ADVERTISING RESULTS The prior written approval of the Commissioner is required in order for results of the Bid to be used by the Contractor as part of any commercial advertising. The Contractor shall also obtain the prior written approval of the Commissioner relative to the Bid or Contract for press or other media releases. 21. PRODUCT REFERENCES a. "Or Equal" In all Bid Specifications the words "or equal" are understood to apply where a copyrighted, brand name, trade name, catalog reference, or patented Product is referenced. References to such specific Product are intended as descriptive, not restrictive, unless otherwise stated. Comparable Product will be considered if proof of compatibility is provided, including appropriate catalog excerpts, descriptive literature, specifications and test data, etc. The Commissioner's decision as to acceptance of the Product as equal shall be final. b. Discrepancies in References In the event of a discrepancy between the model number referenced in the Bid Specifications and the written description of the Products which cannot be reconciled, with respect to such discrepancy, then the written description shall prevail. 22. REMANUFACTURED, RECYCLED, RECYCLABLE OR RECOVERED MATERIALS Upon the conditions specified in the Bid Specifications and in accordance with the laws of the State of New York, Contractors are encouraged to use recycled, recyclable or recovered materials in the manufacture of Products and packaging to the maximum extent practicable without jeopardizing the performance or intended end use of the Product or packaging unless such use is precluded due to health, welfare, safety requirements or in the Bid Specifications. Contractors are further encouraged to offer remanufactured Products to the maximum extent practicable without jeopardizing the performance or intended end use of the Product and unless such use is precluded due to health, welfare, safety requirements or by the Bid Specifications. Where such use is not practical, suitable, or permitted by the Bid Specifications, Contractor shall deliver new materials in accordance with the "Warranties" set forth below. _Items,_ with_ ,_recycled,.._,_ recyclable, __recovered ___refurbished_.._or___. remanufactured content must be identified in the Bid or Bidder will be deemed to be offering new Product. 23. PRODUCTS MANUFACTURED IN PUBLIC INSTITUTIONS Bids offering Products that are manufactured or produced in public institutions will be rejected. 24. PRICING a. Unit Pricing If required by the Bid Specifications, the Bidder should insert the price per unit specified and the price extensions in decimals, not to exceed four places for each item unless otherwise specified, in the Bid. In the event of a discrepancy between the unit price and the extension, the unit price shall govern unless, in the sole judgment of the Commissioner, such unit pricing is obviously erroneous. b. Net Pricing Unless otherwise required by the Bid Specifications, prices shall be net, including transportation, customs, tariff, delivery and other charges fully prepaid by the Contractor to the destination(s) indicated in the Bid Specifications, subject to the cash discount. c. "No Charge" Bid When Bids are requested on a number of Products as a Group or Lot, a Bidder desiring to Bid "no charge" on a Product in the Group or Lot must clearly indicate such. Otherwise, such Bid may be considered incomplete and be rejected, in whole or in part, at the discretion of the Commissioner. d. Educational Pricing All Products to be supplied for educational purposes that are subject to educational discounts shall be identified in the Bid and such discounts shall be made available to qualifying institutions. e. Third Partv Financing If Product acquisitions are financed through any third party financing, Contractor may be required as a condition of Contract Award to agree to the terms and conditions of a "Consent & Acknowledgment Agreement" in a form acceptable to the Commissioner. f. Best Pricing Offer During the Contract term, if substantially the same or a smaller quantity of a Product is sold by the Contractor outside of this Contract upon the same or similar terms and conditions as that of this Contract at a lower price to a federal, state or local governmental entity, the price under this Contract, at the discretion of the Commissioner, shall be immediately reduced to the lower price. Price decreases shall take effect automatically during the Contract term and apply to Purchase Orders submitted on or after: (i) GSA Changes: Where NYS Net Prices are based on an approved GSA Schedule, the date the approved GSA Schedule pricing decreases during the Contract term; or (ii) Commercial Price List Reductions: Where NYS Net Prices are based on a discount from Contractor's list prices, the date Contractor July 2006 6 GENERAL SPECIFICATIONS APPENDIX B lowers its pricing to its customers generally or to similarly situated government customers during the Contract term; or (iii) Special Offers/Promotions Generally: Where Contractor generally offers more advantageous special price promotions or special discount pricing to other customers during the Contract term for a similar quantity, and the maximum price or discount associated with such offer or promotion is better than the discount or Net Price otherwise available under this Contract, such better price or discount shall apply for similar quantity transactions under this Contract for the life of such general offer or promotion; and (iv) Special Offers/Promotions to Authorized Users: Contractor may offer Authorized Users, under either this Contract or any other Contracting vehicle, competitive pricing which is lower than the NYS Net Price set_ forth_here n_at_anytime during _the _Contract_term and__. such lower pricing shall not be applied as a global price reduction under the Contract pursuant to the foregoing paragraph (iii). Unless otherwise specified in the Bid Specifications, Contractor may offer lower prices or better terms (see Modification of Contract Terms) on any specific Purchase Order(s) from any Authorized User without being in conflict with, or obligation to comply on a global basis, with the terms of this clause. g. Best and Final Prices As specified in the Bid Documents and Contract, a Contractor may be solicited at the time of issuance of a Purchase Order or Mini -Bid award for best and final pricing for the Product or service to be delivered to the Authorized User. Contractors are encouraged to reduce their pricing upon receipt of such request. 25. DRAWINGS a. Drawings Submitted With Bid When the Bid Specifications require the Bidder to furnish drawings and/or plans, such drawings and/or plans shall conform to the mandates of the Bid Documents and shall, when approved by the Commissioner, be considered a part of the Bid and of any resulting Contract. All symbols and other representations appearing on the drawings shall be considered a part of the drawing. b. Drawings Submitted During the Contract Term Where required to develop, maintain and deliver diagrams or other technical schematics regarding the scope of work, Contractor shall do so on an ongoing basis at no additional charge, and must, as a condition of payment, update drawings and plans during the Contract term to reflect additions, alterations, and deletions. Such drawings and diagrams shall be delivered to the Authorized User's representative. c. Accuracy of Drawings Submitted All drawings shall be neat and professional in manner and shall be clearly labeled as to locations and type of product, connections and components. Drawings and diagrams are to be in compliance with accepted drafting standards. Acceptance or approval of such plans shall not relieve the Contractor from responsibility for design or other errors of any sort in the drawings or plans, or from its responsibility for performing as required, furnishing product, services or installation, or carrying out any other requirements of the intended scope of work. 26. SITE INSPECTION Where a site inspection is required by the Bid Specifications or Project Definition, Bidder shall be required to inspect the site, including environmental or other conditions for pre- existing deficiencies that may affect the installed Product, equipment, or environment or services to be provided and, which may affect Bidder's ability to properly deliver, install or otherwise provide the required Product. All inquiries regarding such conditions shall be made in writing. Bidder shall be deemed to have knowledge of any deficiencies or conditions which such inspection or inquiry might have disclosed. Bidder must provide a detailed explanation with its Bid if additional work is required under this clause in order to properly complete the delivery and installation of the required Product or provide the requested service. 27. PROCUREMENT CARD The State has entered into an agreement for purchasing card services. The Purchasing Card enables Authorized Users to make authorized purchases directly from a Contractor without processing a Purchase Orders or Purchase Authorizations. Purchasing Cards are issued to selected employees authorized to purchase for the Authorized User and having direct contact with Contractors. Cardholders can make purchases directly from any Contractor that accepts the Purchasing Card. The Contractor shall not process a transaction for payment through the credit card clearinghouse until the purchased products have been shipped or services performed. Unless the cardholder requests correction or replacement of a defective or faulty Product in accordance with other Contract requirements, the Contractor shall immediately credit a cardholder's account for products returned as defective or faulty. 28. SAMPLES a. Standard Samples Bid Specifications may indicate that the Product to be purchased must be equal to a standard sample on display in a place designated by the Commissioner and such sample will be made available to the Bidder for examination prior to the opening date. Failure by the Bidder to examine such sample shall not entitle the Bidder to any relief from the conditions imposed by the Bid Specifications. b. Bidder Supplied Samples The Commissioner reserves the right to request from the Bidder/Contractor a representative sample(s) of the Product offered at any time prior to or after award of a contract. Unless otherwise instructed, samples shall be furnished within the time specified in the request. Untimely submission of a sample may constitute grounds for rejection of Bid or cancellation of the Contract. Samples must be submitted free of charge and be accompanied by the Bidder's name and address, any descriptive literature relating to the Product and a statement indicating how and where the sample is to be returned. Where applicable, samples must be properly labeled with the appropriate Bid or Contract reference. A sample may be held by the Commissioner during the entire term of the Contract and for a reasonable period thereafter for comparison with deliveries. At the conclusion of the holding period the sample, where feasible, will be returned as instructed by the Bidder, at the Bidder's expense and risk. Where the Bidder has failed to fully instruct the Commissioner as to the return of the sample (i.e., mode and place of return, etc.) or refuses to bear the cost of its retum, the sample shall become the sole property of the receiving entity at the conclusion of the holding period. c. Enhanced Samples When an approved sample exceeds the minimum specifications, all Product delivered must be of the same enhanced quality and identity as the sample. Thereafter, in the event of a Contractor's default, the Commissioner may procure a Product substantially equal to the enhanced sample from other sources, charging the Contractor for any additional costs incurred. d. Conformance with Sample(s) Submission of a sample (whether or not such sample is tested by, or for, the Commissioner) and approval thereof shall not relieve the Contractor from full compliance with all terms and conditions, performance related and otherwise, specified in the Bid Specifications. If in the judgment of the Commissioner the sample or product submitted is not in accordance with the specifications or testing requirements prescribed in the Bid July 2006 7 GENERAL SPECIFICATIONS APPENDIX B Specifications, the Commissioner may reject the Bid. If an award has been made, the Commissioner may cancel the Contract at the expense of the Contractor. e. Testing All samples are subject to tests in the manner and place designated by the Commissioner, either prior to or after Contract award. Unless otherwise stated in the Bid Specifications, Bidder samples consumed or rendered useless by testing will not be returned to the Bidder. Testing costs for samples that fails to meet Contract requirements may be at the expense of the Contractor. f. Requests For Samples By Authorized Users Requests for samples by Authorized Users require the consent of the Contractor. Where Contractor_refusesto_furnish a sample, Authorized User may, ___ in its sole discretion, make a determination on the performance capability of the Product or on the issue in question. BID EVALUATION 29. BID EVALUATION The Commissioner reserves the right to accept or reject any and all Bids, or separable portions of offers, and waive technicalities, irregularities, and omissions if the Commissioner determines the best interests of the State will be served. The Commissioner, in his/her sole discretion, may accept or reject illegible, incomplete or vague Bids and his/her decision shall be final. A conditional or revocable Bid which clearly communicates the terms or limitations of acceptance may be considered, and Contract award may be made in compliance with the Bidder's conditional or revocable terms in the offer. 30. CONDITIONAL BID Unless the Bid Specifications provides otherwise, a Bid is not rendered non -responsive if the Bidder specifies that the award will be accepted only on all or a specified group of items or Product included in the specification. It is understood that nothing herein shall be deemed to change or alter the method of award contained in the Bid Documents. 31. CLARIFICATIONS / REVISIONS Prior to award, the Commissioner reserves the right to seek clarifications, request Bid revisions, or to request any information deemed necessary for proper evaluation of Bids from all Bidders deemed to be eligible for Contract award. Failure to provide requested information may result in rejection of the Bid. 32. PROMPT PAYMENT DISCOUNTS While prompt payment discounts will not be considered in determining the low Bid, the Commissioner may consider any prompt payment discount in resolving Bids which are otherwise tied. However, any notation indicating that the price is net, (e.g., net 30 days), shall be understood to mean only that no prompt payment discount is offered by the Bidder. The imposition of service, interest, or other charges, except pursuant to the provisions of Article 11-A of the State Finance Law, which are applicable in any case, may render the Bid non -responsive and may be cause for its rejection. 33. EQUIVALENT OR IDENTICAL BIDS In the event two offers are found to be substantially equivalent, price shall be the basis for determining the award recipient. If two or more Bidders submit substantially equivalent Bids as to pricing or other factors, the decision of the Commissioner to award a Contract to one or more of such Bidders shall be final. 34. PERFORMANCE AND RESPONSIBILITY QUALIFICATIONS The Commissioner reserves the right to investigate or inspect at any time whether or not the Product, services, qualifications or facilities offered by the Bidder/Contractor meet the requirements set forth in the Bid Specifications/Contract or as set forth during Contract negotiations. Contractor shall at all times during the Contract term remain responsible and responsive. A Bidder/Contractor must be prepared, if requested by the Commissioner, to present evidence of legal authority to do business in New York State, integrity, experience, ability, prior performance, organizational and financial capacity as well as where applicable, a statement as to supply, plant, machinery and capacity of the manufacturer or source for the production, distribution and servicing of the Product offered/Bid. If the Commissioner determines that the conditions and terms of the Bid Documents, Bid Specifications or Contract are not complied with, or that items, services or Product ____proposed_to be_ fumished_do . _not_ meet_ the_ specified_regmrements, or _ that the legal authority, integrity experience, ability, prior performance, organization and financial capacity or facilities are not satisfactory, the Commissioner may reject such Bid or terminate the Contract. 35. DISQUALIFICATION FOR PAST PERFORMANCE AND FINDINGS OF NON -RESPONSIBILITY Bidder may be disqualified from receiving awards if Bidder, or anyone in Bidder's employment, has previously failed to perform satisfactorily in connection with public Bidding or contracts or is deemed non - responsible. 36. QUANTITY CHANGES PRIOR TO AWARD The Commissioner reserves the right, at any time prior to the award of a specific quantity Contract, to alter in good faith the quantities listed in the Bid Specifications. In the event such right is exercised, the lowest responsible_ Bidder meeting Bid Specifications will be advised of the revised quantities and afforded an opportunity to extend or reduce its Bid price in relation to the changed quantities. Refusal by the low Bidder to so extend or reduce its Bid price may result in the rejection of its Bid and the award of such Contract to the lowest responsible Bidder who accepts the revised qualifications. 37. TIMEFRAME FOR OFFERS The Commissioner reserves the right to make awards within sixty (60) days after the date of the Bid opening or such other period of time as set forth in the Bid Documents, during which period, Bids must remain firm and cannot e withdrawn. Pursuant to Section 163(9)(e) of the State Finance Law and Section 2- 205 of the Uniform Commercial Code when applicable, where an award is not made within the sixty (60) day period or other time specified as set forth in the Bid Documents, the Bids shall remain firm until such later time as either a Contract is awarded or the Bidder delivers to the Commissioner written notice of the withdrawal of its Bid. Any Bid which expressly states therein that acceptance must be made within a shorter specified time, may at the sole discretion of the Commissioner, be accepted or rejected. TERMS & CONDITIONS 38. CONTRACT CREATION / EXECUTION Except for contracts governed by Article 11-B of the State Finance Law, subject to and upon receipt of all required approvals as set forth in the Bid Specifications a Contract shall be deemed executed and created with the successful Bidder(s), upon the Commissioner's mailing or electronic communication to the address on the Bid/Contract of: (i) the final Contract Award Notice; (ii) a fully executed Contract; or (iii) a Purchase Order authorized by the Commissioner. 39. PARTICIPATION IN CENTRALIZED CONTRACTS The following shall not limit or inhibit the OGS Commissioner's authority under State Finance Law, Section 163 (10) (e) (Piggybacking): July 2006 8 GENERAL SPECIFICATIONS APPENDIX B a. Agencies All State Agencies may utilize and purchase under any state Centralized Contract let by the Commissioner, unless the Bid Documents limit purchases to specific State Agencies. b. Non -State Agency Authorized Users Authorized Users other than State Agencies are permitted to make purchases through state Centralized Contracts where permitted by law, the Contract or the Commissioner. c. Voluntary Extension Purchase Orders issued against a State Centralized Contract by any Authorized User not provided for in the Bid Specifications shall be honored by the Contractor at its discretion and_only with the_approval_of theOGS Commissioner and_any other___ approvals required by law. Contractors are encouraged to voluntarily extend service Contracts to those additional entities authorized to utilize commodity Contracts under Section 163 (3) (iv) of the State Finance Law. d. Responsibility for Performance Participation in state Centralized Contracts by Authorized Users is permitted upon the following conditions: (i) the responsibility with regard to performance of any contractual obligation, covenant, condition or term thereunder by any Authorized User other than State Agencies shall be borne and is expressly assumed by such Authorized User and not by the State; (ii) a breach of the Contract by any particular Authorized User shall neither constitute nor be deemed a breach of the Contract as a whole which shall remain in full force and effect, and shall not affect the validity of the Contract nor the obligations of the Contractor thereunder respecting non -breaching Authorized Users, whether State or otherwise; (iii) for a breach by an Authorized User other than a State Agency, the State specifically and expressly disclaims any and all liability for such breach; and (iv) each non -state agency Authorized User and Contractor guarantees to save the State, its officers, agents and employees harmless from any liability that may be or is imposed by their failure to perform in accordance with its obligations under the Contract. e. Contract Migration Authorized Users holding individual Contracts with a Contractor at the time that Contractor is awarded a Centralized Contract for the same Products or services shall be permitted to migrate to that Centralized Contract effective with its commencement date. Such migration shall not operate to diminish, alter or eliminate any right that the Authorized User otherwise had under the terms and conditions of their individual Contract. 40. MODIFICATION OF CONTRACT TERMS The terms and conditions set forth in the Contract shall govern all transactions by Authorized User(s) under this Contract. The Contract may only be modified or amended upon mutual written agreement of the Commissioner and Contractor. The Contractor may, however, offer Authorized User(s) more advantageous pricing, payment, or other terms and conditions than those set forth in the Contract. In such event, a copy of such terms shall be furnished to the Authorized User(s) and Commissioner by the Contractor at the time of such offer. Other than where such terms are more advantageous for the Authorized User(s) than those set forth in the Contract, no alteration or modification of the terms of the Contract, including substitution of Product, shall be valid or binding against Authorized User(s) unless authorized by the Commissioner or specified in the Contract Award Notification. No such alteration or modification shall be made by unilaterally affixing such terms to Product upon delivery (including, but not limited to, attachment or inclusion of standard pre-printed order forms, product literature, "shrink wrap" terms accompanying software upon delivery, or other documents) or by incorporating such terms onto order forms, purchase orders or other documents forwarded by the Contractor for payment, notwithstanding Authorized User's subsequent acceptance of Product, or that Authorized User has subsequently processed such document for approval or payment. 41. SCOPE CHANGES The Commissioner reserves the right, unilaterally, to require, by written order, changes by altering, adding to or deducting from the Bid Specifications, such changes to be within the general scope of the Contract. The Commissioner may make an equitable adjustment in the Contract price or delivery date if the change affects the cost or time of performance. Such equitable adjustments require the consent of the Contractor which consent shall___ not be unreasonably withheld. 42. ESTIMATED / SPECIFIC QUANTITY CONTRACTS Estimated quantity contracts are expressly agreed and understood to be made for only the quantities, if any, actually ordered during the Contract term. No guarantee of any quantity(s) is implied or given. Purchases by Authorized Users from Contracts for services and technology are voluntary. With respect to any specific quantity stated in the contract, the Commissioner reserves the right after award to order up to 20% more or less (rounded to the next highest whole number) than the specific quantities called for in the Contract. Notwithstanding the foregoing, the Commissioner may purchase greater or lesser percentages of Contract quantities should the Commissioner and Contractor so agree. Such agreement may include an equitable price adjustment. 43. EMERGENCY CONTRACTS In the event that a disaster emergency is declared by Executive Order under Section 28 of Article 2-B of the Executive Law, or the Commissioner determines pursuant to his/her authority under Section 163 (10) (b) of the State Finance Law that an emergency exists requiring the prompt and immediate delivery of Product, the Commissioner reserves the right to obtain such Product from any source, including but not limited to this Contract(s), as the Commissioner in his/her sole discretion determines will meet the needs of such emergency. Contractor shall not be entitled to any claim or lost profits for Product procured from other sources pursuant to this paragraph. The reasons underlying the finding that an emergency exists shall be included in the procurement record. 44. PURCHASE ORDERS Unless otherwise authorized in writing by the Commissioner, no Product is to be delivered or furnished by Contractor until transmittal of an official Purchase Order from the Authorized User. Unless terminated or cancelled pursuant to the authority vested in the Commissioner, Purchase Orders shall be effective and binding upon the Contractor when placed in the mail or electronically transmitted prior to the termination of the contract period, addressed to the Contractor at the address for receipt of orders set forth in the Contract or in the Contract Award Notification. All Purchase Orders issued pursuant to Contracts let by the Commissioner must bear the appropriate Contract number and, if necessary, required State approvals. As deemed necessary, the Authorized User may confirm pricing and other Product information with the Contractor prior to placement of the Purchase Order. The State reserves the right to require any other inforniation from the Contractor which the State deems necessary in order to complete any Purchase Order placed under the Contract. Unless otherwise specified, all Purchase Orders against Centralized Contracts will be placed by Authorized Users directly with the Contractor and any discrepancy between the terms stated on the vendor's order form, confirmation or acknowledgment, and the Contract terms shall be resolved in favor of July 2006 9 GENERAL SPECIFICATIONS APPENDIX B the terms most favorable to the Authorized User. Should an Authorized User add written terms and conditions to the Purchase Order that conflict with the terms and conditions of the Contract, the Contractor has the option of rejecting the Purchase Order within five business days of its receipt but shall first attempt to negotiate the additional written terms and conditions in good faith with the Authorized User, or fulfill the Purchase Order. Notwithstanding the above, the Authorized User reserves the right to dispute any discrepancies arising from the presentation of additional terms and conditions with the Contractor. If, with respect to an Agency Specific Contract let by the OGS Commissioner, a Purchase Order is not received by the Contractor within two weeks after the issuance of a Contract Award Notification, it is the responsibility of the Contractor to request in writing that the appropriate Authorized User forward a Purchase Order. If, thereafter, a Purchase Order is not received within a reasonable period of time, the Contractor shall promptly notify in writing the appropriate purchasing officer in OGS. Failure to timely notify such officer may, in the discretion of the OGS Commissioner and without cost to the State, result in the cancellation of such requirement by the OGS Commissioner with a corresponding reduction in the Contract quantity and price. 45. PRODUCT DELIVERY Delivery must be made as ordered to the address specified on the Purchase Order and in accordance with the terms of the Contract or Contract Award Notice. Unless otherwise specified in the Bid Documents, delivery shall be made within thirty calendar days after receipt of a Purchase Order by the Contractor. The decision of the Commissioner as to compliance with delivery terms shall be final. The burden of proof for delay in receipt of Purchase Order shall rest with the Contractor. In all instances of a potential or actual delay in delivery, the Contractor shall immediately notify the Commissioner and the Authorized User, and confirm in writing the explanation of the delay, and take appropriate action to avoid any subsequent late deliveries. Any extension of time for delivery must be requested in writing by the Contractor and approved in writing by the Authorized User. Failure to meet such delivery time schedule may be grounds for cancellation of the order or, in the Commissioner's discretion, the Contract. 46. WEEKEND AND HOLIDAY DELIVERIES Unless otherwise specified in the Bid Specifications or by an Authorized User, deliveries will be scheduled for ordinary business hours, Monday through Friday (excluding legal holidays observed by the State of New York). Deliveries may be scheduled by mutual agreement for Saturdays, Sundays or legal holidays observed by the State of New York where the Product is for daily consumption, an emergency exists, the delivery is a replacement, delivery is late, or other reasonable circumstance in which event the convenience of the Authorized User shall govern. 47. SHIPPING/RECEIPT OF PRODUCT a. Packaging Tangible Product shall be securely and properly packed for shipment, storage and stocking in appropriate, clearly labeled shipping containers and according to accepted commercial practice, without any extra charges for packing materials, cases or other types of containers. The container shall become and remain the property of the Authorized User unless otherwise specified in the Contract documents. b. Shipping Charges Unless otherwise stated in the Bid Specifications, all deliveries shall be deemed to be freight on board (F.O.B.) destination tailgate delivery at the dock of the Authorized User. Unless otherwise agreed, items purchased at a price F.O.B. Shipping point plus transportation charges shall not relieve the Contractor from responsibility for safe and proper delivery notwithstanding the Authorized User's payment of transportation charges. Contractor shall be responsible for ensuring that the Bill of Lading states "charges prepaid" for all shipments. c. Receipt of Product The Contractor shall be solely responsible for assuring that deliveries are made to personnel authorized to accept delivery on behalf of the Authorized User. Any losses resulting from the Contractor's failure to deliver Product to authorized personnel shall be borne exclusively by the Contractor. 48. TITLE AND RISK OF LOSS Notwithstanding the form of shipment, title or other property interest, risk of loss shall not pass from the Contractor to the Authorized User until the Products have been received, inspected and accepted by the receiving entity. Acceptance shall occur within a reasonable time or in accordance with such other defined acceptance period as may be specified in the Bid Specifications or Purchase Order. Mere acknowledgment by Authorized User personnel of the delivery or receipt of goods (e.g., signed bill of lading) shall not be deemed or construed as acceptance of the Products received. Any delivery of Product that is substandard or does not comply with the Bid Specifications or Contract terms and conditions, may be rejected or accepted on an adjusted price basis, as determined by the Commissioner. 49. RE -WEIGHING PRODUCT Deliveries are subject to re - weighing at the point of destination by the Authorized User. If shrinkage occurs which exceeds that normally allowable in the trade, the Authorized User shall have the option to require delivery of the difference in quantity or to reduce the payment accordingly. Such option shall be exercised in writing by the Authorized User. 50. PRODUCT SUBSTITUTION In the event a specified manufacturer's Product listed in the Contract becomes unavailable or cannot be supplied by the Contractor for any reason (except as provided for in the Savings/Force Majeure Clause) a Product deemed in writing by the Commissioner to be equal to or better than the specified Product must be substituted by the Contractor at no additional cost or expense to the Authorized User. Unless otherwise specified, any substitution of Product prior to the Commissioner's written approval may be cause for cancellation of Contract. 51. REJECTED PRODUCT When Product is rejected, it must be removed by the Contractor from the premises of the Authorized User within ten calendar days of notification of rejection by the Authorized User. Upon notification of rejection, risk of loss of rejected or non- conforming Product shall remain with Contractor. Rejected items not removed by the Contractor within ten calendar days of notification shall be regarded as abandoned by the Contractor, and the Authorized User shall have the right to dispose of Product as its own property. The Contractor shall promptly reimburse the Authorized User for any and all costs and expenses incurred in storage or effecting removal or disposition after the ten -calendar day period. 52. INSTALLATION Where installation is required, Contractor shall be responsible for placing and installing the Product in the required locations. All materials used in the installation shall be of good quality and shall be free from any and all defects that would mar the appearance of the Product or render it structurally unsound. Installation includes the furnishing of any equipment, rigging and materials required to install or place the Product in the proper location. The Contractor shall protect the site from damage for all its work and shall repair damages or injury of any kind caused by the Contractor, its employees, officers or agents. If any alteration, dismantling or excavation, etc. is required to effect installation, the Contractor shall thereafter promptly restore the structure or site. Work shall be July 2006 10 GENERAL SPECIFICATIONS APPENDIX B performed to cause the least inconvenience to the Authorized User(s) and with proper consideration for the rights of other Contractors or workers. The Contractor shall promptly perform its work and shall coordinate its activities with those of other Contractors. The Contractor shall clean up and remove all debris and rubbish from its work as required or directed. Upon completion of the work, the building and surrounding area of work shall be left clean and in a neat, unobstructed condition, and everything in satisfactory repair and order. 53. REPAIRED OR REPLACED PARTS / COMPONENTS Where the Contractor is required to repair, replace or substitute Product or parts or components of the Product under the Contract, the repaired, replaced or substituted Products shall be subject to all terms and conditions for new parts and components set forth in the Contract including Warranties, as set forth in the Additional Warranties Clause herein. Replaced or repaired Product or parts and components of such Product shall be new and shall, if available, be replaced by the original manufacturer's component or part. Remanufactured parts or components meeting new Product standards may be permitted by the Commissioner or Authorized User. Before installation, all proposed substitutes for the original manufacturer's installed parts or components must be approved by the Authorized User. The part or component shall be equal to or of better quality than the original part or component being replaced. 54. ON -SITE STORAGE With the written approval of the Authorized User, materials, equipment or supplies may be stored at the Authorized User's site at the Contractor's sole risk. 55. EMPLOYEES, SUBCONTRACTORS & AGENTS All employees, Subcontractors or agents performing work under the Contract must be trained staff or technicians who meet or exceed the professional, technical and training qualifications set forth in the Bid Specifications or the Bid Documents, whichever is more restrictive, and must comply with all security and administrative requirements of the Authorized User. The Commissioner reserves the right to conduct a security background check or otherwise approve any employee, Subcontractor or agent furnished by Contractor and to refuse access to or require replacement of any personnel for cause based on, including but not limited to, professional, technical or training qualifications, quality of work or change in security status or non- compliance with Authorized User's security or other requirements. Such approval shall not relieve the Contractor of the obligation to perform all work in compliance with the Contract terms. The Commissioner reserves the right to reject and/or bar from the facility for cause any employee, Subcontractor, or agents of the Contractor. 56. ASSIGNMENT The Contractor shall not assign, transfer, convey, sublet, or otherwise dispose of the contract or its right, title or interest therein, or its power to execute such contract to any other person, company, firm or corporation in performance of the contract without the prior written consent of the Commissioner or Authorized User (as applicable). Failure to obtain consent to assignment from the Authorized User shall revoke and annul such Contract. Notwithstanding the foregoing, the State shall not hinder, prevent or affect assignment of money by a Contractor for the benefit of its creditors. Prior to a consent to assignment of monies becoming effective, the Contractor shall file a written notice of such monies assignment(s) with the Comptroller. Prior to a consent to assignment of a Contract, or portion thereof, becoming effective, the Contractor shall submit the request to assignment to the Commissioner and seek written agreement from the Commissioner which will be filed with the Comptroller. The Commissioner reserves the right to reject any proposed assignee in his/her discretion. Upon notice to the Contractor, the Contract may be assigned without the consent of the Contractor to another State Agency or subdivision of the State pursuant to a governmental reorganization or assignment of functions under which the functions are transferred to a successor Agency or to another Agency that assumes OGS responsibilities for the Contract. 57. SUBCONTRACTORS AND SUPPLIERS The Commissioner reserves the right to reject any proposed Subcontractor or supplier for bona fide business reasons, which may include, but are not limited to: they are on the Department of Labor's list of companies with which New York State cannot do business; the Commissioner determines that the company is not qualified; the Commissioner determines that the company is not responsible; the company has previously provided unsatisfactory work or services; the company failed to solicit minority and women's business enterprises (M/WBE) Bidders as required by prior Contracts. 58. PERFORMANCE / BID BOND The Commissioner reserves the right to require a Bidder or Contractor to furnish without additional cost, a performance, payment or Bid bond or negotiable irrevocable letter of credit or other form of security for the faithful performance of the Contract. Where required, such bond or other security shall be in the form prescribed by the Commissioner. 59. SUSPENSION OF WORK The Commissioner, in his/her sole discretion, reserves the right to suspend any or all activities under this Contract, at any time, in the best interests of the Authorized User. In the event of such suspension, the Contractor will be given a formal written notice outlining the particulars of such suspension. Examples of the reason for such suspension include, but are not limited to, a budget freeze or reduction on State spending, declaration of emergency, contract compliance issues or other such circumstances. Upon issuance of such notice, the Contractor is not to accept any Purchase Orders, and shall comply with the suspension order. Activity may resume at such time as the Commissioner issues a formal written notice authorizing a resumption of performance under the Contract. An Authorized User may issue a formal written notice for the suspension of work for which it has engaged the Contractor for reasons specified in the above paragraph. The written notice shall set forth the reason for such suspension and a copy of the written notice shall be provided to the Commissioner. 60. TERMINATION a. For Cause: For a material breach that remains uncured for more than thirty (30) days or other specified period after written notice to the Contractor, the Contract or Purchase Order may be terminated by the Commissioner or Authorized User at the Contractor's expense where Contractor becomes unable or incapable of performing, or meeting any requirements or qualifications set forth in the Contract, or for non- performance, or upon a determination that Contractor is non - responsible. Such termination shall be upon written notice to the Contractor. In such event, the Commissioner or Authorized User may complete the contractual requirements in any manner it may deem advisable and pursue available legal or equitable remedies for breach. b. For Convenience: By written notice, this Contract may be terminated at any time by the State for convenience upon sixty (60) days written notice or other specified period without penalty or other early termination charges due. Such termination of the Contract shall not affect any project or Purchase Order that has been issued under the Contract prior to the date of such termination. If the Contract is terminated pursuant to this subdivision, the Authorized User shall remain liable for all accrued but unpaid charges incurred through the date of the termination. Contractor shall use due diligence and provide any outstanding deliverables. July 2006 11 GENERAL SPECIFICATIONS APPENDIX B c. For Violation of the Sections 139-j and 139-k of the State Finance Law: The Commissioner reserves the right to terminate the Contract in the event it is found that the certification filed by the Bidder in accordance with Section 139-k of the State Finance Law was intentionally false or intentionally incomplete. Upon such finding, the Commissioner may exercise its termination right by providing written notification to the Contractor in accordance with the written notification terms of the Contract. d. For Violation of Revised Tax Law 5a: The Commissioner reserves the right to terminate the contract in the event it is found that the certification filed by the Contractor in accordance with §5-a of the Tax Law is not timely filed during the term of the Contract or the certificationfurnished was intentionally_ _false_—or_intentionally_:. incomplete. Upon such finding, the Commissioner may exercise its termination right by providing written notification to the Contractor. 61. SAVINGS/FORCE MAJEURE A force majeure occurrence is an event or effect that cannot be reasonably anticipated or controlled. Force majeure includes, but is not limited to, acts of God, acts of war, acts of public enemies, strikes, fires, explosions, actions of the elements, floods, or other similar causes beyond the control of the Contractor or the Commissioner in the performance of the Contract which non- performance, by exercise of reasonable diligence, cannot be prevented. Contractor shall provide the Commissioner with written notice of any force majeure occurrence as soon as the delay is known. Neither the Contractor nor the Commissioner shall be liable to the other for any delay in or failure of performance under the Contract due to a force majeure occurrence. Any such delay in or failure of performance shall not constitute default or give rise to any liability for damages. The existence of such causes of such delay or failure shall extend the period for performance to such extent as determined by the Contractor and the Commissioner to be necessary to enable complete performance by the Contractor if reasonable diligence is exercised after the cause of delay or failure has been removed. Notwithstanding the above, at the discretion of the Commissioner where the delay or failure will significantly impair the value of the Contract to the State or to Authorized Users, the Commissioner may: a. Accept allocated performance or deliveries from the Contractor. The Contractor, however, hereby agrees to grant preferential treatment to Authorized Users with respect to Product subjected to allocation; and/or b. Purchase from other sources (without recourse to and by the Contractor for the costs and expenses thereof) to replace all or part of the Products which are the subject of the delay, which purchases may be deducted from the Contract quantities without penalty or liability to the State; or c. Terminate the Contract or the portion thereof which is subject to delays, and thereby discharge any unexecuted portion of the Contract or the relative part thereof. In addition, the Commissioner reserves the right, in his/her sole discretion, to make an equitable adjustment in the Contract terms and/or pricing should extreme and unforeseen volatility in the marketplace affect pricing or the availability of supply. "Extreme and unforeseen volatility in the marketplace" is defined as market circumstances which meet the following criteria: (i) the volatility is due to causes outside the control of Contractor; (ii) the volatility affects the marketplace or industry, not just the particular Contract source of supply; (iii) the effect on pricing or availability of supply is substantial; and (iv) the volatility so affects Contractor's performance that continued performance of the Contract would result in a substantial loss. 62. CONTRACT BILLINGS Contractor and the distributors/resellers designated by the Contractor, if any, shall provide complete and accurate billing invoices to each Authorized User in order to receive payment. Billings for Authorized Users must contain all information required by the Contract and the State Comptroller. The State Comptroller shall render payment for Authorized User purchases, and such payment shall be made in accordance with ordinary State procedures and practices. Payment of Contract purchases made by Authorized Users, other than Agencies, shall be billed directly by Contractor on invoices/vouchers, together with __ complete_and_accurate_supporting_documentation.. as_required_by_the___ ._. Authorized User. Submission -of an invoice and payment thereof shall not preclude the Commissioner from reimbursement or demanding a price adjustment in any case where the Product delivered is found to deviate from the terms and conditions of the Contract or where the billing was inaccurate. Contractor shall provide, upon request of the Commissioner, any and all information necessary to verify the accuracy of the billings. Such information shall be provided in the format requested by the Commissioner and in a media commercially available from the Contractor. The Commissioner may direct the Contractor to provide the information to the State Comptroller or to any Authorized User of the Contract. 63. DEFAULT — AUTHORIZED USER a. Breach of Authorized User Not Breach of Centralized Contract. An Authorized User's breach shall not be deemed a breach of the Centralized Contract, rather it shall be deemed a breach of the Authorized User's performance under the terms and conditions of the Centralized Contract. b. Failure to Make Payment. In the event a participating Authorized User fails to make payment to the Contractor for Products delivered, accepted and properly invoiced, within 60 days of such delivery and acceptance, the Contractor may, upon 10 days advance written notice to both the Commissioner and the Authorized User's purchasing official, suspend additional shipments of Product or provision of services to such entity until such time as reasonable arrangements have been made and assurances given by such entity for current and future Contract payments. c. Notice of Breach. Notwithstanding the foregoing, the Contractor shall, at least 10 days prior to declaring a breach of Contract by any Authorized User, by certified or registered mail, notify both the Commissioner and the purchasing official of the breaching Authorized User of the specific facts, circumstances and grounds upon which a breach will be declared. d. It is understood, however, that if the Contractor's basis for declaring a breach is insufficient, the Contractor's declaration of breach and failure to service an Authorized User shall constitute a breach of its Contract and the Authorized User may thereafter seek any remedy available at law or equity. 64. INTEREST ON LATE PAYMENTS a. State Agencies The payment of interest on certain payments due and owed by Agency may be made in accordance with Article 11-A of the State Finance Law (SFL §179-d et. Seq.) and Title 2 of the New York Code of Rules and Regulations, Part 18 (Implementation of Prompt Payment Legislation -2 NYCRR § 18.1 et seq.). July 2006 12 GENERAL SPECIFICATIONS APPENDIX B b. By Non -State Agencies The terms of Article 11-A apply only to procurements by and the consequent payment obligations of Agencies. Neither expressly nor by any implication is the statute applicable to Non -State Authorized Users. Neither OGS nor the State Comptroller is responsible for payments on any purchases made by a Non -State Agency Authorized User. c. By Contractor Should the Contractor be liable for any payments to the State hereunder, interest, late payment charges and collection fee charges will be determined and assessed pursuant to Section 18 of the State Finance Law. 65. REMEDIES. FOR .BREACH Jti&understoodancLagreedthat_ all rights and remedies afforded below shall be in addition to all remedies or actions otherwise authorized or permitted by law: a. Cover/Substitute Performance In the event of Contractor's material breach, the Commissioner may, with or without formally Bidding: (i) Purchase from other sources; or (ii) If the Commissioner is unsuccessful after making reasonable attempts, under the circumstances then existing, to timely obtain acceptable service or acquire replacement Product of equal or comparable quality, the Commissioner may acquire acceptable replacement Product of lesser or greater quality. Such purchases may, in the discretion of the Commissioner, be deducted from the Contract quantity and payments due Contractor. b. Withhold Payment In any case where a question of non- performance by Contractor arises, payment may be withheld in whole or in part at the discretion of the Commissioner. Should the amount withheld be finally paid, a cash discount originally offered may be taken as if no delay in payment had occurred. c. Bankruptcy In the event that the Contractor files a petition under the U.S. Bankruptcy Code during the term of this Centralized Contract, Authorized Users may, at their discretion, make application to exercise its right to set-off against monies due the Debtor or, under the Doctrine of Recoupment, credit the Authorized User the amounts owed by the Contractor arising out of the same transactions. d. Reimbursement of Costs Incurred The Contractor agrees to reimburse the Authorized User promptly for any and all additional costs and expenses incurred for acquiring acceptable services, and/or replacement Product. Should the cost of cover be less than the Contract price, the Contractor shall have no claim to the difference. The Contractor covenants and agrees that in the event suit is successfully prosecuted for any default on the part of the Contractor, all costs and expenses expended or incurred by the Authorized User in connection therewith, including reasonable attomey's fees, shall be paid by the Contractor. Where the Contractor fails to timely deliver pursuant to the guaranteed delivery terms of the Contract, the ordering Authorized User may rent substitute equipment temporarily. Any sums expended for such rental shall, upon demand, be reimbursed to the Authorized User promptly by the Contractor or deducted by the Authorized User from payments due or to become due the Contractor on the same or another transaction. e. Deduction/Credit Sums due as a result of these remedies may be deducted or offset by the Authorized User from payments due, or to become due, the Contractor on the same or another transaction. If no deduction or only a partial deduction is made in such fashion the Contractor shall pay to the Authorized User the amount of such claim or portion of the claim still outstanding, on demand. The Commissioner reserves the right to determine the disposition of any rebates, settlements, restitution, liquidated damages, etc., which arise from the administration of the Contract. 66. ASSIGNMENT OF CLAIM Contractor hereby assigns to the State any and all its claims for overcharges associated with this Contract which may arise under the antitrust laws of the United States, 15 USC Section 1, et. seq. and the antitrust laws of the State of New York, General Business Law Section 340, et. seq. 67. TOXIC SUBSTANCES Each Contractor fumishing a toxic substance as defined by Section 875 of the Labor Law, shall provide __such.Authorized.User_with not lessthan,two,copiesof a.material.safety_. data sheet, which sheet shall include for each such substance the information outlined in Section 876 of the Labor Law. Before any chemical product is used or applied on or in any building, a copy of the product label and Material Safety Data Sheet must be provided to and approved by the Authorized User agency representative. 68. INDEPENDENT CONTRACTOR It is understood and agreed that the legal status of the Contractor, its agents, officers and employees under this Contract is that of an independent Contractor, and in no manner shall they be deemed employees of the Authorized User, and therefore are not entitled to any of the benefits associated with such employment. The Contractor agrees, during the term of this Contract, to maintain at Contractor's expense those benefits to which its employees would otherwise be entitled by law, including health benefits, and all necessary insurance for its employees, including worker's compensation, disability and unemployment insurance, and to provide the Authorized User with certification of such insurance upon request. The Contractor remains responsible for all applicable federal, state and local taxes, and all FICA contributions. 69. SECURITY Contractor warrants, covenants and represents that it will comply fully with all security procedures of the Authorized User(s) in performance of the Contract including but not limited to physical, facility, documentary and cyber security rules, procedures and protocols. 70. COOPERATION WITH THIRD PARTIES The Contractor shall be responsible for fully cooperating with any third party, including but not limited to other Contractors or Subcontractors of the Authorized User, as necessary to ensure delivery of Product or coordination of performance of services. 71. CONTRACT TERM - RENEWAL In addition to any stated renewal periods in the Contract, any Contract or unit portion thereof let by the Commissioner may be extended by the Commissioner for an additional period(s) of up to one year with the written concurrence of the Contractor and Comptroller. Such extension may be exercised on a month to month basis or in other stated periods of time during the one year extension. 72. ADDITIONAL WARRANTIES Where Contractor, product manufacturer or service provider generally offers additional or more advantageous warranties than set forth below, Contractor shall offer or pass through any such warranties to Authorized Users. Contractor hereby warrants and represents: a. Product Performance Contractor warrants and represents that Products delivered pursuant to this Contract conform to the manufacturer's specifications, performance standards and documentation, and the documentation fully describes the proper procedure for using the Products. July 2006 13 GENERAL SPECIFICATIONS APPENDIX B b. Title and Ownership Warranty Contractor warrants, represents and conveys (i) full ownership, clear title free of all liens, or (ii) the right to transfer or deliver perpetual license rights to any Products transferred to Authorized User under this Contract. Contractor shall be solely liable for any costs of acquisition associated therewith. Contractor fully indemnifies the Authorized User for any loss, damages or actions arising from a breach of said warranty without limitation. c. Contractor Compliance Contractor represents and warrants to pay, at its sole expense, for all applicable permits, licenses, tariffs, tolls and fees to give all notices and comply with all laws, ordinances, rules and regulations of any governmental entity _in conjunction with the___ performance of obligations under the Contract. Prior to award and during the Contract term and any renewals thereof, Contractor must establish to the satisfaction of the Commissioner that it meets or exceeds all requirements of the Bid/Contract and any applicable laws, including but not limited to, permits, insurance coverage, licensing, proof of coverage for worker's compensation, and shall provide such proof as required by the Commissioner. Failure to do so may constitute grounds for the Commissioner to cancel or suspend this Contract, in whole or in part, or to take any other action deemed necessary by the Commissioner. d. Product Warranty Unless recycled or recovered materials are available in accordance with the "Recycled or Recovered Materials" clause, Product offered shall be standard new equipment, current model or most recent release of regular stock product with all parts regularly used with the type of equipment offered; and no attachment or part has been substituted or applied contrary to the manufacturer's recommendations and standard practice. Contractor further warrants and represents that components or deliverables specified and furnished by or through Contractor shall individually, and where specified and furnished as a system, be substantially uninterrupted or error -free in operation and guaranteed against faulty material and workmanship for the warranty period, or for a minimum of one (1) year from the date of acceptance, whichever is longer ("Project warranty period"). During the Project warranty period, defects in the materials or workmanship of components or deliverables specified and furnished by or through Contractor shall be repaired or replaced by Contractor at no cost or expense to the Authorized User. Contractor shall extend the Project warranty period for individual component(s), or for the System as a whole, as applicable, by the cumulative period(s) of time, after notification, during which an individual component or the System requires servicing or replacement (down time) or is in the possession of the Contractor, its agents, officers, Subcontractors, distributors, resellers or employees ("extended warranty"). Where Contractor, the Independent Software Vendor "ISV," or other third party manufacturer markets any Project Deliverable delivered by or through Contractor with a standard commercial warranty, such standard warranty shall be in addition to, and not relieve the Contractor from, Contractor's warranty obligations during the project warranty and extended warranty period(s). Where such standard commercial warranty covers all or some of the Project warranty or extended warranty period(s), Contractor shall be responsible for the coordination during the Project warranty or extended warranty period(s) with ISV or other third party manufacturer(s) for warranty repair or replacement of ISV or other third party manufacturer's Product. Where Contractor, ISV or other third party manufacturer markets any Project Deliverable with a standard commercial warranty which goes July 2006 14 beyond the Project warranty or extended warranty period(s), Contractor shall notify the Authorized User and pass through the manufacturer's standard commercial warranty to Authorized User at no additional charge; provided, however, that Contractor shall not be responsible for coordinating services under the third party extended warranty after expiration of the Project warranty and extended warranty period(s). e. Replacement Parts Warranty If during the regular or extended warranty period's faults develop, the Contractor shall promptly repair or, upon demand, replace the defective unit or component part affected. All costs for labor and material and transportation incurred to repair or replace defective Product during the warranty period shall _be borne solely by_ the Contractor,_and the Stateor_Authorized User _ shall in no event be liable or responsible therefor. Any part of component replaced by the Contractor under the Contract warranty shall be replaced at no cost to the Authorized User and guaranteed for the greater of: a) the warranty period under paragraph (d) above; or b) if a separate warranty for that part or component is generally offered by the manufacturer, the standard commercial warranty period offered by the manufacturer for the individual part or component. f. Virus Warranty The Contractor represents and warrants that Licensed Software contains no known viruses. Contractor is not responsible for viruses introduced at Licensee's site. g. Date/Time Warranty Contractor warrants that Product(s) fumished pursuant to this Contract shall, when used in accordance with the Product documentation, be able to accurately process date/time data (including, but not limited to, calculating, comparing, and sequencing) transitions, including leap year calculations. Where a Contractor proposes or an acquisition requires that specific Products must perform as a package or system, this warranty shall apply to the Products as a system. Where Contractor is providing ongoing services, including but not limited to: i) consulting, integration, code or data conversion, ii) maintenance or support services, iii) data entry or processing, or iv) contract administration services (e.g., billing, invoicing, claim processing), Contractor warrants that services shall be provided in an accurate and timely manner without interruption, failure or error due to the inaccuracy of Contractor's business operations in processing date/time data (including, but not limited to, calculating, comparing, and sequencing) various date/time transitions, including leap year calculations. Contractor shall be responsible for damages resulting from any delays, errors or untimely performance resulting therefrom, including but not limited to the failure or untimely performance of such services. This Date/Time Warranty shall survive beyond termination or expiration of this contract through: a) ninety (90) days or b) the Contractor's or Product manufacturer/developer's stated date/time warranty term, whichever is longer. Nothing in this warranty statement shall be construed to limit any rights or remedies otherwise available under this Contract for breach of warranty. h. Workmanship Warranty Contract warrants that all components or deliverables specified and furnished by or through Contractor under the Project Definition/Work Order meet the completion criteria set forth in the Project Definition/Work Order and any subsequent statement(s) of work, and that services will be provided in a workmanlike manner in accordance with industry standards. i. Survival of Warranties All warranties contained in this Contract shall survive the termination of this Contract. GENERAL SPECIFICATIONS APPENDIX B 73. LEGAL COMPLIANCE Contractor represents and warrants that it shall secure all notices and comply with all laws, ordinances, rules and regulations of any governmental entity in conjunction with the performance of obligations under the Contract. Prior to award and during the Contract term and any renewals thereof, Contractor must establish to the satisfaction of the Commissioner that it meets or exceeds all requirements of the Bid and Contract and any applicable laws, including but not limited to, permits, licensing, and shall provide such proof as required by the Commissioner. Failure to comply or failure to provide proof may constitute grounds for the Commissioner to cancel or suspend the Contract, in whole or in part, or to take any other action deemed necessary by the Commissioner. Contractor also agrees to disclose information and provide affirmations and _____certifications_to_comply.with_Sections 139;j_and_139 k_ofthe State_ Finance Law. 74. INDEMNIFICATION Contractor shall be fully liable for the actions of its agents, employees, partners or Subcontractors and shall fully indemnify and save harmless the Authorized Users from suits, actions, damages and costs of every name and description relating to personal injury and damage to real or personal tangible property caused by any intentional act or negligence of Contractor, its agents, employees, partners or Subcontractors, without limitation; provided, however, that the Contractor shall not indemnify for that portion of any claim, loss or damage arising hereunder due to the negligent act or failure to act of the Authorized Users. 75. INDEMNIFICATION RELATING TO THIRD PARTY RIGHTS The Contractor will also indemnify and hold the Authorized Users harmless from and against any and all damages, expenses (including reasonable attorneys' fees), claims, judgments, liabilities and costs that may be finally assessed against the Authorized Users in any action for infringement of a United States Letter Patent, or of any copyright, trademark, trade secret or other third party proprietary right except to the extent such claims arise from the Authorized Users gross negligence or willful misconduct, provided that the State shall give Contractor: (i) prompt written notice of any action, claim or threat of infringement suit, or other suit, (ii) the opportunity to take over, settle or defend such action, claim or suit at Contractor's sole expense, and (iii) assistance in the defense of any such action at the. expense of Contractor. If usage shall be enjoined for any reason or if Contractor believes that it may be enjoined, Contractor shall have the right, at its own expense and sole discretion to take action in the following order of precedence: (i) to procure for the Authorized User the right to continue Usage (ii) to modify the service or Product so that Usage becomes non - infringing, and is of at least equal quality and performance; or (iii) to replace said service or Product or part(s) thereof, as applicable, with non -infringing service or Product of at least equal quality and performance. If the above remedies are not available, the parties shall terminate the Contract, in whole or in part as necessary and applicable, provided the Authorized User is given a refund for any amounts paid for the period during which Usage was not feasible. The foregoing provisions as to protection from third party rights shall not apply to any infringement occasioned by modification by the Authorized User of any Product without Contractor's approval. In the event that an action at law or in equity is commenced against the Authorized User arising out of a claim that the Authorized User's use of the service or Product under the Contract infringes any patent, copyright or proprietary right, and Contractor is of the opinion that the allegations in such action in whole or in part are not covered by the indemnification and defense provisions set forth in the Contract, Contractor shall immediately notify the Authorized User and the Office of the Attorney General in writing and shall specify to what extent Contractor believes it is obligated to defend and indemnify under the terms and conditions of the Contract. Contractor shall in such event protect the interests of the Authorized User and secure a continuance to permit the Authorized User to appear and defend its interests in cooperation with Contractor, as is appropriate, including any jurisdictional defenses the Authorized User may have. This constitutes the Authorized User's sole and exclusive remedy for patent infringement, or for infringement of any other third party proprietary right. 76. LIMITATION OF LIABILITY Except as otherwise set forth in the Indemnification Paragraphs above, the limit of liability shall be ____as follows. a. Contractor's liability for any claim, loss or liability arising out of, or connected with the Products and services provided, and whether based upon default, or other liability such as breach of contract, warranty, negligence, misrepresentation or otherwise, shall in no case exceed direct damages in: (i) an amount equal to two (2) times the charges specified in the Purchase Order for the Products and services, or parts thereof forming the basis of the Authorized User's claim, (said amount not to exceed a total of twelve (12) months charges payable under the applicable Purchase Order) or (ii) one million dollars ($1,000,000), whichever is greater. b. The Authorized User may retain such monies from any amount due Contractor as may be necessary to satisfy any claim for damages, costs and the like asserted against _ the Authorized User unless Contractor at the time of the presentation of claim shall demonstrate to the Authorized User's satisfaction that sufficient monies are set aside by the Contractor in the form of a bond or through insurance coverage to cover associated damages and other costs. c. Notwithstanding the above, neither the Contractor nor the Authorized User shall be liable for any consequential, indirect or special damages of any kind which may result directly or indirectly from such performance, including, without limitation, damages resulting from loss of use or loss of profit by the Authorized User, the Contractor, or by others. 77. INSURANCE Contractor shall secure and maintain insurance coverage as specified in the Bid Documents and shall promptly provide documentation of specified coverages to the Authorized User. If specified, the Contractor may be required to add the Authorized User as an additional insured. THE FOLLOWING CLAUSES PERTAIN TO TECHNOLOGY & NEGOTIATED CONTRACTS 78. SOFTWARE. LICENSE GRANT Where Product is acquired on a licensed basis the following shall constitute the license grant: a. License Scope Licensee is granted a non-exclusive, perpetual license to use, execute, reproduce, display, perform, or merge the Product within its business enterprise in the United States up to the maximum licensed capacity stated on the Purchase Order. Product may be accessed, used, executed, reproduced, displayed or performed up to the capacity measured by the applicable licensing unit stated on the Purchase Order (i.e., payroll size, number of employees, CPU, MIPS, MSU, concurrent user, workstation). Licensee shall have the right to use and distribute modifications or customizations of the Product to and for use by any Authorized Users otherwise licensed to use the Product, provided that any modifications, however extensive, shall not diminish Licensor's proprietary title or interest. No license, right or July 2006 15 GENERAL SPECIFICATIONS APPENDIX B interest in any trademark, trade name, or service mark is granted hereunder. b. License Term The license term shall commence upon the License Effective Date, provided, however, that where an acceptance or trial period applies to the Product, the License Term shall be extended by the time period for testing, acceptance or trial. c. Licensed Documentation If commercially available, Licensee shall have the option to require the Contractor to deliver, at Contractor's expense: (i) one (1) hard copy and one (1) master electronic copy of the Documentation in a mutually agreeable format; (ii) based on hard copy instructions for access by downloading from the Internet (iii) hard copies_of the_Product Documentation_by _type_of license in the following amounts, unless otherwise mutually agreed: • Individual/Named User License - one (1) copy per License • Concurrent Users - 10 copies per site • Processing Capacity - 10 copies per site Software media must be in a format specified by the Authorized User, without requiring any type of conversion. Contractor hereby grants to Licensee a perpetual license right to make, reproduce (including downloading electronic copies of the Product) and distribute, either electronically or otherwise, copies of Product Documentation as necessary to enjoy full use of the Product in accordance with the terms of license. d. Product Technical Support & Maintenance Licensee shall have the option of electing the Product technical support and maintenance ("maintenance") set forth in the Contract by giving written notice to Contractor any time during the Centralized Contract term. Maintenance term(s) and any renewal(s) thereof are independent of the expiration of the Centralized Contract term and will not automatically renew. Maintenance shall include, at a minimum, (i) the provision of error corrections, updates, revisions, fixes, upgrade and new releases to Licensee, and (ii) Help Desk assistance with locally accessible "800" or toll free, local telephone service, or alternatively on-line Help Desk accessibility. Contractor shall maintain the Products so as to provide Licensee with the ability to utilize the Products in accordance with the Product documentation without significant functional downtime to its ongoing business operations during the maintenance term. Authorized User shall not be required to purchase maintenance for use of Product, and may discontinue maintenance at the end of any current maintenance term upon notice to Contractor. In the event that Authorized User does not initially acquire or discontinues maintenance of licensed Product, it may, at any time thereafter, reinstate maintenance for Product without any additional penalties or other charges, by paying Contractor the amount which would have been due under the Contract for the period of time that such maintenance had lapsed, at then current NYS net maintenance rates. e. Permitted License Transfers As Licensee's business operations may be altered, expanded or diminished, licenses granted hereunder may be transferred or combined for use at an alternative or consolidated site not originally specified in the license, including transfers between Agencies ("permitted license transfers"). Licensee(s) do not have to obtain the approval of Contractor for permitted license transfers, but must give thirty (30) days prior written notice to Contractor of such move(s) and certify in writing that the Product is not in use at the prior site. There shall be no additional license or other transfer fees due Contractor, provided that: i) the maximum capacity of the consolidated machine is equal to the combined individual license capacity of all licenses running at the consolidated or transferred site (e.g., named users, seats, or MIPS); or ii) if the maximum capacity of the consolidated machine is greater than the individual license capacity being transferred, a logical or physical partition or other means of restricting access will be maintained within the computer system so as to restrict use and access to the Product to that unit of licensed capacity solely dedicated to beneficial use for Licensee. In the event that the maximum capacity of the consolidated machine is greater than the combined individual license capacity of all licenses running at the consolidated or transferred site, and a logical or physical partition or other means of .,_._restricting useisnot available,_thefees.due_Contractorshall.not exceed-_- the fees otherwise payable for a single license for the upgrade capacity. f. Restricted Use By Outsourcers / Facilities Management, Service Bureaus / or Other Third Parties Outsourcers, facilities management or service bureaus retained by Licensee shall have the right to use the Product to maintain Licensee's business operations, including data processing, for the time period that they are engaged in such activities, provided that: 1) Licensee gives notice to Contractor of such party, site of intended use of the Product, and means of access; and 2) such party has executed, or agrees to execute, the Product manufacturer's standard nondisclosure or restricted use agreement which executed agreement shall be accepted by the Contractor ("Non - Disclosure Agreement"); and 3) if such party is engaged in the business of facility management, outsourcing, service bureau or other services, such third party will maintain a logical or physical partition within its computer system so as to restrict use and access to the program to that portion solely dedicated to beneficial use for Licensee. In no event shall Licensee assume any liability for third parry's compliance with the terms of the Non -Disclosure Agreement, nor shall the Non -Disclosure Agreement create or impose any liabilities on the State or Licensee. Any third party with whom a Licensee has a relationship for a state function or business operation, shall have the temporary right to use Product (e.g., JAVA Applets), provided that such use shall be limited to the time period during which the third party is using the Product for the function or business activity. g. Archival Back -Up and Disaster Recovery Licensee may use and copy the Product and related Documentation in connection with: i) reproducing a reasonable number of copies of the Product for archival backup and disaster recovery procedures in the event of destruction or corruption of the Product or disasters or emergencies which require Licensee to restore backup(s) or to initiate disaster recovery procedures for its platform or operating systems; ii) reproducing a reasonable number of copies of the Product and related Documentation for cold site storage. "Cold Site" storage shall be defined as a restorable back-up copy of the Product not to be installed until and after the declaration by the Licensee of a disaster; iii) reproducing a back-up copy of the Product to run for a reasonable period of time in conjunction with a documented consolidation or transfer otherwise allowed herein. "Disaster Recovery" shall be defined as the installation and storage of Product in ready -to -execute, back-up computer systems prior to disaster or breakdown which is not used for active production or development. h. Confidentiality Restrictions The Product is a trade secret, copyrighted and proprietary product. Licensee and its employees will keep the Product strictly confidential, and Licensee will not disclose or otherwise distribute or reproduce any Product to anyone other than as July 2006 16 GENERAL SPECIFICATIONS APPENDIX B authorized under the terms of Contract. Licensee will not remove or destroy any proprietary markings of Contractor. i. Restricted Use by Licensee Except as expressly authorized by the terms of license, Licensee shall not: (i) Copy the Product; (ii) Cause or permit reverse compilation or reverse assembly of all or any portion of the Product; (iii) Export the Licensed Software in violation of any U.S. Department of Commerce export administration regulations. 79. PRODUCT ACCEPTANCE Unless otherwise provided by mutual agreement of the Authorized User and the Contractor, Authorized ____User(s) shall_have_thirty_(30)_daysfrom_the_date of_deliyery_to_accept_ hardware products and sixty (60) days from the date of delivery to accept all other Product. Where the Contractor is responsible for installation, acceptance shall be from completion of installation. Failure to provide notice of acceptance or rejection or a deficiency statement to the Contractor by the end of the period provided for under this clause constitutes acceptance by the Authorized User(s) as of the expiration of that period. The License Term shall be extended by the time periods allowed for trial use, testing and acceptance unless the Commissioner or Authorized User agrees to accept the Product at completion of trial use. Unless otherwise provided by mutual agreement of the Authorized User and the Contractor, Authorized User shall have the option to run testing on the Product prior to acceptance, such tests and data sets to be specified by User. Where using its own data or tests, Authorized User must have the tests or representative set of data available upon delivery. This demonstration will take the form of a documented installation test, capable of observation by the Authorized User, and shall be made part of the Contractor's standard documentation. The test data shall remain accessible to the Authorized User after completion of the test. In the event that the documented installation test cannot be completed successfully within the specified acceptance period, and the Contractor or Product is responsible for the delay, Authorized User shall have the option to cancel the order in whole or in part, or to extend the testing period for an additional thirty (30) day increment. Authorized User shall notify Contractor of acceptance upon successful completion of the documented installation test. Such cancellation shall not give rise to any cause of action against the Authorized User for damages, Toss of profits, expenses, or other remuneration of any kind. If the Authorized User elects to provide a deficiency statement specifying how the Product fails to meet the specifications within the testing period, Contractor shall have thirty (30) days to correct the deficiency, and the Authorized User shall have an additional sixty (60) days to evaluate the Product as provided herein. If the Product does not meet the specifications at the end of the extended testing period, Authorized User, upon prior written notice to Contractor, may then reject the Product and return all defective Product to Contractor, and Contractor shall refund any monies paid by the Authorized User to Contractor therefor. Costs and liabilities associated with a failure of the Product to perform in accordance with the functionality tests or product specifications during the acceptance period shall be bome fully by Contractor to the extent that said costs or liabilities shall not have been caused by negligent or willful acts or omissions of the Authorized User's agents or employees. Said costs shall be limited to the amounts set forth in the Limitation of Liability Clause for any liability for costs incurred at the direction or recommendation of Contractor. 80. AUDIT OF LICENSED PRODUCT USAGE Contractor shall have the right to periodically audit, no more than annually, at Contractor's expense, use of licensed Product at any site where a copy of the Product resides provided that: (i) Contractor gives Licensee(s) at least thirty (30) days advance written notice, (ii) such audit is conducted during such parry's normal business hours, (iii) the audit is conducted by an independent auditor chosen on mutual agreement of the parties. Contractor shall recommend a minimum of three (3) auditing/accounting firms from which the Licensee will select one (1). In no case shall the Business Software Alliance (BSA), Software Publishers Association (SPA), Software and Industry Information Association (SIIA) or Federation Against Software Theft (FAST) be used directly or indirectly to conduct audits, or be recommended by Contracto; (iv)_Contractor_and_Licensee.are_each entitled_to_designate a representative who shall be entitled to participate, and who shall mutually agree on audit format, and simultaneously review all information obtained by the audit. Such representatives also shall be entitled to copies of all reports, data or information obtained from the audit; and (v) if the audit shows that such party is not in compliance, Licensee shall be required to purchase additional licenses or capacities necessary to bring it into compliance and shall pay for the unlicensed capacity at the NYS Net Price in effect at time of audit, or if none, then at the Contractor's U.S. Commercial list price. Once such additional licenses or capacities are purchased, Licensee shall be deemed to have been in compliance retroactively, and Licensee shall have no further liability of any kind for the unauthorized use of the software. 81. OWNERSHIP/TITLE TO PROJECT DELIVERABLES a. Definitions (i) For purposes of this paragraph, "Products." A deliverable furnished under this Contract by or through Contractor, including existing and custom Products, including, but not limited to: a) components of the hardware environment, b) printed materials (including but not limited to training manuals, system and user documentation, reports, drawings), whether printed in hard copy or maintained on diskette, CD, DVD or other electronic media c) third party software, d) modifications, customizations, custom programs, program listings, programming tools, data, modules, components, and e) any properties embodied therein, whether in tangible or intangible form (including but not limited to utilities, interfaces, templates, subroutines, algorithms, formulas, source code, object code). (ii) For purposes of this paragraph, "Existing Products." Tangible Products and intangible licensed Products that exist prior to the commencement of work under the Contract. Contractor bears the burden of proving that a particular product was in existence prior to the commencement of the Project. (iii) For purposes of this paragraph, "Custom Products." Products, preliminary, final or otherwise, which are created or developed by Contractor, its Subcontractors, partners, employees or agents for Authorized User under the Contract. b. Title to Project Deliverables Contractor acknowledges that it is commissioned by the Authorized User to perform the services detailed in the Purchase Order. Unless otherwise specified in writing in the Bid or Purchase Order, the Authorized User shall have ownership and license rights as follows: (i) Existing Products: 1. Hardware - Title and ownership of Existing Hardware Product shall pass to Authorized User upon Acceptance. 2. Software - Title and ownership to Existing Software Product(s) delivered by Contractor under the Contract that is normally commercially distributed on a license basis by the Contractor or other independent software vendor proprietary owner ("Existing Licensed July 2006 17 GENERAL SPECIFICATIONS APPENDIX B Product"), whether or not embedded in, delivered or operating in conjunction with hardware or Custom Products, shall remain with Contractor or the proprietary owner of other independent software vendor(s) (ISV). Effective upon acceptance, such Product shall be licensed to Authorized User in accordance with the Contractor or ISV owner's standard license agreement, provided, however, that such standard license, must, at a minimum: (a) grant Authorized User a non-exclusive, perpetual license to use, execute, reproduce, display, perform, adapt (unless Contractor advises Authorized User as part of Contractor's proposal that adaptation will violate existing agreements or statutes and Contractor demonstrates such to the Authorized User's satisfaction) and distribute Existing Licensed Product to the Authorized User up to the license capacity stated in the Purchase Order or_work order with all license rights_necessary._to fully effect the .. general business purpose(s) stated in the Bid or Authorized User's Purchase Order or work order, including the financing assignment rights set forth in paragraph (c) below; and (b) recognize the State of New York as the licensee where the Authorized User is a state agency, department, board, commission, office or institution. Where these rights are not otherwise covered by the ISV's owner's standard license agreement, the Contractor shall be responsible for obtaining these rights at its sole cost and expense. The Authorized User shall reproduce all copyright notices and any other legend of ownership on any copies authorized under this paragraph. (ii.) Custom Products: Effective upon creation of Custom Products, Contractor hereby conveys, assigns and transfers to Authorized User the sole and exclusive rights, title and interest in Custom Product(s), whether preliminary, final or otherwise, including all trademark and copyrights. Contractor hereby agrees to take all necessary and appropriate steps to ensure that the Custom Products are protected against unauthorized copying, reproduction and marketing by or through Contractor, its agents, employees, or Subcontractors. Nothing herein shall preclude the Contractor from otherwise using the related or underlying general knowledge, skills, ideas, concepts, techniques and experience developed under a Purchase Order, project definition or work order in the course of Contractor's business. Authorized User may, by providing written notice thereof to the Contractor, elect in the alternative to take a non-exclusive perpetual license to Custom Products in lieu of Authorized User taking exclusive ownership and title to such Products. In such case, Licensee on behalf of all Authorized Users shall be granted a non-exclusive perpetual license to use, execute, reproduce, display, perform, adapt and distribute Custom Product as necessary to fully effect the general business purpose(s) as stated in paragraph (b)(i)(2), above. c. Transfers or Assignments to a Third Party Financing Agent It is understood and agreed by the parties that a condition precedent to the consummation of the purchase (s) under the Contract may be the obtaining of acceptable third party financing by the Authorized User. The Authorized User shall make the sole determination of the acceptability of any financing proposal. The Authorized User will make all reasonable efforts to obtain such financing, but makes no representation that such financing has been obtained as of the date of Bid receipt. Where financing is used, Authorized User may assign or transfer its rights in Licensed Products (existing or custom) to a third party financing entity or trustee ("Trustee") as collateral where required by the terms of the financing agreement. Trustee's sole rights with respect to transferability or use of Licensed Products shall be to exclusively sublicense to Authorized User all of its Licensee's rights under the terms and conditions of the License Agreement; provided, further, however, in the event of any termination or expiration of such sublicense by reason of payment in full, all of Trustee's rights in such Licensed Product shall terminate immediately and Authorized User's prior rights to such Existing Licensed Product shall be revived. d. Sale or License of Custom Products Involving Tax -Exempt Financing (i.e., Certificates of Participation - COPS) The Authorized User's sale or other transfer of Custom Products which were acquired by the Authorized User using third party, tax-exempt financing may not occur until such Custom Products are, or become, useable. In the event that the Contractor wishes to obtain ownership rights to Custom Product(s), the sale or other transfer shall be at fair market value determined at the time of such sale or other transfer, and must be pursuant to a separate written agreement in a form acceptable to the Authorized User which complies with the terms of this paragraph. e. Contractor's Obligation with Regard to ISV (Third Party) Product Where Contractor furnishes Existing Licensed Product(s) as a Project Deliverable, and sufficient rights necessary to effect the purposes___,_ of this section are not otherwise provided in the Contractor or ISV's standard license agreement, Contractor shall be responsible for obtaining from the ISV third party proprietary owner/developer the rights set forth herein to the benefit of the Authorized User at Contractor's sole cost and expense. 82. PROOF OF LICENSE The Contractor must provide to each Licensee who places a Purchase Order either: (i) the Product developer's certified License Confirmation Certificates in the name of such Licensee; or (ii) a written confirmation from the Proprietary owner accepting Product invoice as proof of license. Contractor shall submit a sample certificate, or alternatively such written confirmation from the proprietary developer. Such certificates must be in a form acceptable to the Licensee. 83. PRODUCT VERSION Purchase Orders shall be deemed to reference Manufacturer's most recently released model or version of the Product at time of order, unless an earlier model or version is specifically requested in writing by Authorized User and Contractor is willing to provide such version. 84. CHANGES TO PRODUCT OR SERVICE OFFERINGS a. Product or Service Discontinuance Where Contractor is the Product Manufacturer/Developer, and Contractor publicly announces to all U.S. customers ("date of notice") that a Product is being withdrawn from the U.S. market or that maintenance service or technical support provided by Contractor ("withdrawn support") is no longer going to be offered, Contractor shall be required to: (i) notify the Commissioner, each Licensee and each Authorized User then under contract for maintenance or technical support in writing of the intended discontinuance; and (ii) continue to offer Product or withdrawn support upon the Contract terms previously offered for the greater of: a) the best terms offered by Contractor to any other customer, or b) not less than twelve (12) months from the date of notice; and (iii) at Authorized User's option, provided that the Authorized User is under contract for maintenance on the date of notice, either: provide the Authorized User with a Product replacement or migration path with at least equivalent functionality at no additional charge to enable Authorized User to continue use and maintenance of the Product. In the event that the Contractor is not the Product Manufacturer, Contractor shall be required to: (i) provide the notice required under the paragraph above, to the entities described within five (5) business days of Contractor receiving notice from the Product Manufacturer, and (ii) include in such notice the period of time from the date of notice that the Product Manufacturer will continue to provide Product or withdraw support. The provisions of this subdivision (a) shall not apply or eliminate Contractor's obligations where withdrawn support is being provided by an independent Subcontractor. In the event that such Subcontractor July 2006 18 GENERAL SPECIFICATIONS APPENDIX B ceases to provide service, Contractor shall be responsible for subcontracting such service, subject to state approval, to an alternate Subcontractor. b. Product or Service Re -Bundling In the event that Contractor is the Product manufacturer and publicly announces to all U.S. customers ("date of notice") that a Product or maintenance or technical support offering is being re -bundled in a different manner from the structure or licensing model of the prior U.S. commercial offering, Contractor shall be required to: (i) notify the State and each Authorized User in writing of the intended change; (ii) continue to provide Product or withdrawn support upon the same terms and conditions as previously offered on the then -current NYS Contract for the greater of: a) the best terms offered by Contractor to any other customer, or b) not less than twelve (12) nionths fro-iii-the-date of notice; and (iii) shall submitthe proposed rebundling change to the Commissioner for approval prior to its becoming effective for the remainder- of the Contract term. The provisions of this section do not apply if the Contractor is not the Product manufacturer. 85. NO HARDSTOP/PASSIVE LICENSE MONITORING Unless an Authorized User is otherwise specifically advised to the contrary in writing at the time of order and prior to purchase, Contractor hereby warrants and represents that the Product and all Upgrades do not and will not contain any computer code that would disable the Product or Upgrades or impair in any way its operation based on the elapsing of a period of time, exceeding an authorized number of copies, advancement to a particular date or other numeral, or other similar self-destruct mechanisms (sometimes referred to as "time bombs," "time locks," or "drop dead" devices) or that would permit Contractor to access the Product to cause such disablement or impairment (sometimes referred to as a "trap door" device). Contractor agrees that in the event of a breach or alleged breach of this provision that Authorized User shall not have an adequate remedy at law, including monetary damages, and that Authorized User shall consequently be entitled to seek a temporary restraining order, injunction, or other form of equitable relief against the continuance of such breach, in addition to any and all remedies to which Authorized User shall be entitled. 86. SOURCE CODE ESCROW FOR LICENSED PRODUCT If Source Code or Source Code escrow is offered by either Contractor or Product manufacturer or developer to any other commercial customers, Contractor shall either: (i) provide Licensee with the Source Code for the Product; or (ii) place the Source Code in a third party escrow arrangement with a designated escrow agent who shall be named and identified to the State, and who shall be directed to release the deposited Source Code in accordance with a standard escrow agreement acceptable to the State; or (iii) will certify to the State that the Product manufacturer/developer has named the State, acting by and through the Authorized User, and the Licensee, as a named beneficiary of an established escrow arrangement with its designated escrow agent who shall be named and identified to the State and Licensee, and who shall be directed to release the deposited Source Code in accordance with the terms of escrow. Source Code, as well as any corrections or enhancements to such source code, shall be updated for each new release of the Product in the same manner as provided above and such updating of escrow shall be certified to the State in writing. Contractor shall identify the escrow agent upon commencement of the Contract term and shall certify annually that the escrow remains in effect in compliance with the terms of this paragraph. The State may release the Source Code to Licensees under this Contract who have licensed Product or obtained services, who may use such copy of the Source Code to maintain the Product. FOR NEGOTIATED CONTRACTS THE FOLLOWING CLAUSES ARE RESERVED BECAUSE BIDDING DOES NOT APPLY: Clauses: 7, 8, 9, 10, 11, 12, 13, 16, 15, 21, 25, 26, 28, 29, 30, 31, 32, 33, 36, 49, 50, 52, 54 and 37 July 2006 19 GENERAL SPECIFICATIONS APPENDIX B A Additional Warranties Advertising Results Applicability Assignment Assignment of Claim Audit of Licensed Product Usage Authentication of Facsimile Bids B INDEX Paragraph No. 72 20 1 56 66 80 10 M Modification of Contract Terms N_ No Hardstop/Passive License Monitoring 0 On -Site Storage Ownership/Title to Project Deliverables Paragraph No. 40 85 54 81 Bid Contents_. Bid Evaluation Bid Opening Bid Submission C Changes to Product or Service Offerings Clarification/Revisions Confidential/Trade Secret Materials Conflict of Terms Conditional Bid Contract Billings Contract Creation/Execution Contract Term - Renewal Cooperation with Third Parties D Default - Authorized User Definitions Disqualification for Past Performance Drawings E Emergency Contracts Employees/Subcontractors/Agents Equivalent or Identical Bids Estimated/Specific Quantity Contracts Ethics Compliance Expenses Prior to Contract Execution Extraneous Terms F Facsimile Submissions Freedom of Information Law G Governing Law Indemnification Indemnification Relating to Third Party Rights Independent Contractor Installation Insurance Interest on Late Payments International Bidding L Late Bids Legal Compliance Limitation of Liability 12. 29 7 8 74 75 68 52 77 64 6 11 73 76 Participation in Centralized Contracts 39 Performance. and Responsibility. Qualifications 34 Performance/Bid Bond 58 Prevailing Wage Rates Public Works & Building Services Contracts 17 84 Pricing 24 31 Procurement Card 27 14 Product Acceptance 79 4 Product Delivery 45 30 Product References 21 62 Product Substitution 50 38 Product Version 83 71 Products Manufactured in Public Institutions 23 70 Prompt Payment Discounts 32 Proof of License 82 Purchase Orders 44 63 5 35 25 43 55 33 42 3 19 13 Q Quantity Changes Prior to Award R Rejected Product Release of Bid Evaluation Materials Re -Weighing Product Remanufactured, Recycled, Recyclable or Recovered Materials Remedies for Breach Repaired or Replaced Product/Components S Samples 9 Savings/Force Majeure 16 Scope Changes Security Site Inspection 2 Shipping/Receipt of Product Software License Grant Source Code Escrow for Licensed Product Subcontractors and Suppliers Suspension of Work T Taxes Termination Timeframe for Offers Title and Risk of Loss Toxic Substances 36 51 15 49 22 65 53 28 61 41 69 26 47 78 86 57 59 18 60 37 48 67 W Weekend and Holiday Deliveries 46 July 2006 20 APPENDIX C MINORITY AND WOMEN OWNED BUSINESS ENTERPRISES (M/WBE) New York State - Office of General Services Equipment Maintenance Program (EMP) (Statewide) RFP 21988PF — Appendix C — M/WBE Page 1 of 1 Page 2 of 12 APPENDIX C Contractor Requirements and Procedures for Equal Employment and Business Participation Opportunities for Minority Group Members and Certified Minority/Women-Owned Businesses on OGS Contracts In accordance with Article 15-A of the Executive Law (Participation by Minority Group Members and Women with Respect to State Contracts) and in conformance with the Regulations promulgated by the Minority and Women's Business Development Division of the New York State Department of Economic Development set -forth -at 5 -NYCRR Parts 140444 the Offeror/Contractor agrees to -be bound_ by the following to promote equality of economic opportunities for minority group members and women, and the facilitation of minority and women -owned business enterprise participation on all covered OGS contracts. Equal Employment Opportunity Requirements By submission of a bid or proposal in response to this solicitation, the Offeror agrees with all of the terms and conditions of Appendix A including Clause 12 - Equal Employment Opportunities for Minorities and Women. The contractor is required to ensure that the provisions of Appendix A clause 12 - Equal Employment Opportunities for minorities and women, are included in every subcontract in such a manner that the requirements of these provisions will be binding upon each subcontractor as to work in connection with the State contract. The following forms are required to ensure offeror compliance with the Equal Employment Opportunity requirements: 1. Staffing Plan (Form EEO 100) To ensure compliance with the foregoing section, the Offeror shall submit a staffing plan to document the composition of the proposed workforce to be utilized in the performance of this contract broken down by the specified categories listed, including ethnic background, gender, and Federal occupational categories. Offerors shall complete the Staffing Plan form and submit it as part of their bid or proposal or within a reasonable time thereafter, but no later than the time of award of the contract. A contractor's failure to submit a Staffing Plan prior to the time required shall result in the rejection of the bid or proposal. 2. Workforce Employment Utilization/Compliance Report (Form EEO 101). Once a contract has been awarded, the Contractor is responsible to update OGS on any changes to the Staffing Plan submitted. This information is to be submitted on a quarterly basis during the life of the contract to report the actual workforce utilized in the performance of the contract broken down by the specified categories listed including ethnic background, gender, and Federal occupational categories. The Workforce Employment Utilization/Compliance Report (Utilization/Compliance Report) must be submitted to report this information. Separate forms are to be completed for the contractor and any subcontractor performing work on the contract. Please note that in all instances, the Contractor may not be able to separate out the workforce utilized in the performance of the contract from the Contractor's and/or sub contractor's total workforce. When a separation can be made, the Contractor shall submit the Utilization/Compliance Report and indicate that the information provided relates to the actual workforce utilized on the subject contract. When the workforce to be utilized on the contract cannot be . separated out from the Contractor's and/or 7-08 Page 3 of 12 subcontractor's total workforce, the Contractor shall submit the Utilization/Compliance Report and indicate that the information provided is the Contractor's total workforce during the subject time frame, not limited to work specifically under the contract. The Utilization/Compliance Report is to be completed for the quarters ending on 3/31, 6/30, 9/30 and 12/31 and submitted to the OGS Office of Minority/Women-owned Business Enterprise Program Operations (OM/ WBEPO) within 15 days of the end of each quarter. If there are no changes to the workforce utilized on the contract during the reporting period, the Contractor can submit a copy of the previously submitted report with the date and reporting period updated, indicating no change. 2equirements_—and Procedures Regarding . Business Participation_ Opportunities for Certified Minorities and Women on OGS Contracts In accordance with Article 15-A of the Executive Law and regulations adopted pursuant thereto, the following forms are required to ensure compliance with the Minority and Women -owned Business participation requirements. In accordance with these requirements, the Offeror agrees to make every good faith effort to promote and assist the participation of New York State Certified Minority and Women -owned Business Enterprises (M/WBE) as subcontractors and suppliers on this contract for the provision of services and materials. The directory of New York State Certified Businesses can be viewed at: http://www.nylovesmwbe.ny.gov/ In addition, the Offeror agrees to submit the following documents as evidence of compliance with the foregoing: 1. M/WBE Utilization Plan (Form M/WBE 100). A. Offerors are required to submit a Utilization Plan on Form M/WBE 100 with this bid or proposal. The Utilization Plan shall list NYS Certified minority or women -owned business enterprises which the contractor intends to use to perform the State contract and a description of the contract scope of work which the contractor intends to structure to increase the participation by NYS Certified minority or women -owned enterprises on the State contract, and the estimated or, if known, actual dollar amounts to be paid to and performance dates of each component of a State contract which the contractor intends to be performed by a NYS Certified minority or woman - owned business. Any modifications or changes to the agreed participation by NYS Certified M/ WBEs after the Contract Award and during the term of the contract must be reported on a revised M/WBE Utilization Plan and submitted to the OGS OM/WBEPO. B. The OGS OM/WBEPO will review the M/WBE Utilization Plan and will issue to the Offeror a written notice of acceptance or deficiency within twenty (20) days of its receipt. A notice of deficiency shall include (i) the name of any M/WBE which is not acceptable for the purpose of complying with the M/WBE participation goals and the reasons why it is not acceptable; (ii) elements of the Contract scope of work which OGS has determined can be reasonably structured by the Offeror to increase the likelihood of participation in the Contract by M/WBEs; and (iii) other information which OGS determines to be relevant to the M/ WBE Utilization Plan. C. The Offeror shall respond to the notice of deficiency within seven (7) business days of receipt by submitting to OGS OM/WBEPO a written remedy in response to the notice of deficiency. If the written remedy that is submitted is not timely or is found by OGS OM/ WBEPO to be inadequate, OGS OM/WBEPO shall notify the Offeror and direct the Offeror to submit, within five (5) business days, a request for a partial or total waiver of M/ WBE participation goals on forms 7-08 Page 4 of 12 provided by OGS OM/ WBEPO. Failure to file the waiver form in a timely manner may be grounds for disqualification of the bid or proposal. D. OGS may disqualify an Offeror as being non -responsive under the following circumstances: a) If an Offeror fails to submit a M/WBE Utilization Plan; b) If an Offeror fails to submit a written remedy to a notice of deficiency in a M/WBE Utilization Plan; c) If an Offeror fails to submit a request for waiver; or d)If the OGS OM/WBEPO determines that the Offeror has failed to document good faith efforts. 2. Request for Waiver Form (if applicable) (Form M/WBE 101). An Offeror who documents good faith efforts to meet the goal requirements may submit a request for a partial or total waiver at the same time it submits its M/WBE Utilization Plan. If a request for waiver is submitted with the M/WBE Utilization plan and is not accepted by the OGS OM/WBEPO at that time, the provisions of clauses 1 (B & C), regarding the notice of deficiency and written remedy will apply. The Awarded Contractor shall attempt to utilize, in good faith, any MBE or WBE identified within its M/ WBE Utilization Plan, during the performance of the contract. Requests for a partial or total waiver of established goal requirements made subsequent to award of a Contract may be made at any time during the term of the Contract to the OGS OM/WBEPO but prior to the submission of a request for final payment on the Contract. 3. Monthly M/WBEContractor Compliance Report (Form M/WBE 102). Contractors are required to submit a Monthly M/WBE Contractor Compliance Report to OGS OM/WBEPO by the loth day of each month over the term of the contract documenting the progress made towards achievement of the M/WBE goals of the Contract. Please Note: Failure to comply with the foregoing requirements may result in a finding of non - responsiveness, non -responsibility and/or a breach of contract, leading to the withholding of funds or such other actions or enforcement proceedings as allowed by the contract. Copies of all referenced forms can be found on the OGS Website at: http://www.ogs.state.ny.us/mwbegorms.html If you have any questions regarding the foregoing requirements or the requirements of Article 15-A of the Executive Law and 5 NYCRR Parts 140-144, please contact the identified Designated Contact(s) for this solicitation. 7-08 Page 5 of 12 EQUAL EMPLOYMENT OPPORTUNITY STAFFING PLAN Submit with Bid or Proposal — Instructions on page 2 Solicitation No.: Report includes: ❑ Work force to be utilized on, o Contractor/Subcontractor's this contract total work force Offeror's Name: Reporting Entity: ❑ Contractor ❑ Subcontractor Subcontractor's name Offeror's Address: Enter the total number of employees for each classification in each of the EEO -Job Categories identified EEO -Job Category Total Work force Work force by Gender Work force by Race/Ethnic Identification Total Male (M) Total Female (F) White (M) (F) Black (M) (F) Hispanic (M) (F) Asian (M) (F) Native American (M) !(F) Disabled (M) (F) Veteran (M) (F) Officials/Administrators Professionals Technicians Sales Workers Office/Clerical Craft Workers Laborers Service Workers Temporary /Apprentices Totals PREPARED BY (Signature): TELEPHONE NO.: EMAIL ADDRESS: DATE: NAME AND TITLE OF PREPARER (Print or Type): Submit completed plan with bid or proposal EEO 100 (Rev 6-08) Page6of12 General instructions: All Offerors and each subcontractor identified in the bid or proposal must complete an EEO Staffing Plan (EEO 100) and submit it as part of the bid or proposal package. Where the work force to be utilized in the performance of the State contract can be separated out from the contractor's or subcontractor's total work force, the Offeror shall complete this form only for the anticipated work force to be utilized on the State contract. Where the work force to be utilized in the performance of the State contract cannot be separated out from the contractor's or subcontractor's total work force, the Offeror shall complete this form for the contractor's or subcontractor's total work force. Instructions for completing: 1. Enter the Solicitation number that this report applies to along with the name and address of the Offeror. 2. Check off the appropriate box to indicate if the Offeror completing the report is the contractor or a subcontractor. 3. Check off the appropriate box to indicate if the work force being reported is just for the contract or the Offerors' total 4. Enter the total work force by EEO job category. 5. Break down the total work force by gender and enter under the heading 'Work force by Gender' 6. Break down the total work force by race/ethnic background and enter under the heading 'Work force by Race/Ethnic Designated Contact(s) for the solicitation if you have any questions. 7. Enter information on disabled or veterans included in the work force under the appropriate headings. 8. Enter the name, title, phone number and email address for the person completing the form. Sign and date the form work force. Identification'. Contact the n the designated boxes. RACE/ETHNIC IDENTIFICATION Race/ethnic designations as used by the Equal Employment Opportunity Commission do not denote scientific definitions of anthropological origins. For the purposes of this report, an employee may be included in the group to which he or she appears to belong, identifies with, or is regarded in the community as belonging. However, no person should be counted in more than one race/ethnic group. The race/ethnic categories for this survey are: • WHITE (Not of Hispanic origin) All persons having origins in any of the original peoples of Europe, North Africa, or the Middle East. • BLACK aperson, not of Hispanic origin, who has origins in of the black racial groups of the original eo les of Africa. Pany 9 Ppeoples • HISPANIC a person of Mexican, Puerto Rican, Cuban, Central or South American or other Spanish culture or origin, regardless of race. • ASIAN & PACIFIC a person having origins in any of the original peoples of the Far East, Southeast Asia, the Indian subcontinent or the Pacific Islands. ISLANDER • NATIVE INDIAN (NATIVE a person having origins in any of the original peoples of North America, and who maintains ;cultural identification through tribal AMERICAN/ ALASKAN affiliation or community recognition. NATIVE) OTHER CATEGORIES • DISABLED INDIVIDUAL any person who: has a physical or mental impairment that substantially limits one or more major life activity(ies) - has a record of such an impairment; or - is regarded as having such an impairment. • VIETNAM ERA VETERAN a veteran who served at any time between and including January 1, 1963 and May.7, 1975. • GENDER age 7 of 12 EQUAL EMPLOYMENT OPPORTUNITY WORK FORCE EMPLOYMENT UTILIZATION/COMPLIANCE REPORT Contract No.: Reporting Entity: o Contractor o Subcontractor Reporting Period: o January 1, 20_ - March 31, 20_ o April 1, 20_ - June 30, 20_ o July 1, 20_ - September 30, 20_ o October 1, 20_ - December 31, 20_ Offeror's Name: Report includes: o Work force to be utilized on o Contractor/Subcontractor's' this contract otal work force Offeror's Address: Enter the total number of employees in each classification in each of the EEO -Job Categories identified. EEO -Job Category Total Work force Work force by Gender Work force by Race/Ethnic Identification Male (M) Female (F) White (M) (F) Black (M) (F) Hispanic (M) (F) Asian (M) (F) Native American (M) ;(F) Disabled (M) (F) Veteran (M) (F) Officials/Administrators Professionals Technicians Sales Workers Office/Clerical Craft Workers Laborers Service Workers Temporary /Apprentices Totals PREPARED BY (Signature): TELEPHONE NO.: EMAIL ADDRESS: DATE: NAME AND TITLE OF PREPARER (Print or Type): Submit completed form for OGS contract to: NYS Office of General Services Office of Minority/Woman-owned Business Enterprise Corning Tower, 41ST Floor Empire State Plaza, Albany NY, 12242 Program Operations EEO 101 (Revised 6/08) Page 8 of 12 General Instructions: The work force utilization/compliance report (EEo 101) is to be submitted on a quarterly basis during the life of the contract to report the actual work force utilized in the performance of the contract broken down by the specified categories. When the work force utilized in the performance of the contract can be separated out from the contractor's or subcontractor's total work force, the contractor or subcontractor shall submit a Utilization Report of the work force utilized on the contract. When the work force to be utilized on the contract cannot be separated out from the contractor's or subcontractor's total work force, information on the contractor's total work force shall be included in the Utilization Report. Utilization reports are to be completed for the quarters ended 3/31, 6/30, 9/30 and 12/31 and submitted to OGS within 15 days of the end of each quarter. If there are no changes to the work force utilized on the contract during the reporting period, the contractor can submit a written statement of no change or submit a copy of the previously submitted report with the date and reporting period updated. Instructions for completing: 1. Enter the number of the contract that this report applies to along with the name and address of the Contractor preparing the report. 2. Check off the appropriate box to indicate if the entity completing the report is the contractor or a subcontractor. 3. Check off the box that corresponds to the reporting period for this report. 4. Check off the appropriate box to indicate if the work force being reported is just for the contract or the Contractor's total work force. 5. Enter the total work force by EEO job category. 6. Break down the total work force by gender and enter under the heading 'Work force by Gender' 7. Break down the total work force by race/ethnic background and enter under the heading 'Work force by Race/Ethnic Identification'. Contact the OGS Office of Minority/Woman-Owned Business Enterprise Programs at (518) 473-5212 if you have any questions. 8. Enter information on any disabled or veteran employees included in the work force under the appropriate heading. 9. Enter the name, title, phone number and email address for the person completing the form. Sign and date the form in the designated boxes. RACE/ETHNIC IDENTIFICATION Race/ethnic designations as used by the Equal Employment Opportunity Commission do not denote scientific definitions of anthropological origins. For the purposes of this report, an employee may be included in the group to which he or she appears to belong, identifies with, or is regarded in the community as belonging. However, no person should be counted in more than one race/ethnic group. The race/ethnic categories for this survey are: • WHITE (Not of Hispanic origin) All persons having origins in any of the original peoples of Europe, North Africa, or the Middle East. • BLACK a person, not of Hispanic origin, who has origins in any of the black racial groups of the original peoples of Africa. • HISPANIC a person of Mexican, Puerto Rican, Cuban, Central or South American or other Spanish culture or origin, regardless of race. • ASIAN & PACIFIC a person having origins in any of the original peoples of the Far East, Southeast Asia, the Indian subcontinent or the Pacific Islands. ISLANDER • NATIVE INDIAN (NATIVE a person having origins in any of the original peoples of North America, and who maintains cultural identification through tribal AMERICAN/ ALASKAN affiliation or community recognition. NATIVE) OTHER CATEGORIES • DISABLED INDIVIDUAL any person who: - has a physical or mental impairment that substantially limits one or more major life activity(ies) - has a record of such an impairment; or - is regarded as having such an impairment. • VIETNAM ERA VETERAN a veteran who served at any time between and including January 1, 1963 and May 7, 1975. • GENDER 12 OFFICE OF MINORITY/WOMEN-OWNED BUSINESS ENTERPRISE PROGRAM OPERATIONS M/WBE UTILIZATION PLAN INSTRUCTIONS: This form must be submitted with any bid, proposal, or proposed negotiated contract or within a reasonable time thereafter, but prior to contract award, for an OGS contract. This Utilization Plan must contain a detailed description of the supplies and/or services to be provided by each certified Minority and Women -owned Business Enterprise (M/WBE) under the contract. Attach additional sheets if necessary. Offeror's Name: Address: City, State, Zip Code: Ret=ion/Location of Work: Federal Identification Number: Solicitation Number: Telephone Number: M/WBE Goals in the Contract: MBE % WBE % 1. Certified M/WBE Subcontractors/Suppliers Name, Address, Email Address, Telephone No. 2. Classification 3. Federal ID No. 4. Detailed Description of Work (Attach additional sheets, if necessary) 5. Dollar Value of Subcontracts/ Supplies/Services and intended performance dates of each component of the contract. A. NYS ESD CERTIFIED 1 ■MBE ❑ WBE B. NYS ESD CERTIFIED ❑ MBE El WBE PREPARED BY: Signature; THE OFFEROR'S ACKNOWLEDGEMENT REQUIREMENTS SET FORTH UNDER NYCRR PART 143, AND THE ABOVE- FOR OGS USE ONLY • f REVIEWED BY: DATE: DATE: TELEPHONE NO: EMAIL ADDRESS: NAME AND TITLE OF PREPARER (Print or Type): SUBMISSION OF THIS FORM CONSTITUTES AND AGREEMENT TO COMPLY WITH THE M/WBE NYS EXECUTIVE LAW, ARTICLE 15-A, 5 REFERENCED SOLICITATION. M/WBE 100 (Revised 6-08) UTILIZATION PLAN APPROVED: Contract No: Contract Award Date: Estimated Date of Completion: 1 Amount Obligated Under the Contract: 1 NOTICE OF DEFICIENCY ISSUED: NOTICE OF ACCEPTANCE ISSUED: Date: Date: ■ YES ■ NO ■ YES ■ NO Date: ■ YES ■ NO age 10 of 12 OFFICE OF MINORITYIWOMEN-OWNED BUSINESS ENTERPRISE PROGRAM OPERATIONS REQUEST FOR WAIVER FORM INSTRUCTIONS: SEE PAGE 2 OF THIS ATTACHMENT FOR REQUIREMENTS AND DOCUMENT SUBMISSION INSTRUCTIONS. Offeror/Contractor Name: Federal Identification No.: Address: Solicitation/Contract No.: City, State, Zip Code: MIWBE Goals: MBE % WBE % By submitting this form and the required information, the offeror/contractor certifies that every Good Faith Effort has been taken topromote M/WBE participation pursuant to the M/WBE requirements set forth under the contract. Contractor is requesting a: 1. ❑ MBE Waiver — A waiver of the MBE Goal for this procurement is requested. ❑ Total ❑ Partial 2. ❑ WBE Waiver — A waiver of the WBE Goal for this procurement is requested. ❑ Total ❑ Partial 3. ❑ Waiver Pending ESD Certification — (Check here if subcontractors or suppliers of Contractor are not certified certification has been filed with Empire State Development.) Date of such filing with Empire State Development:! M/WBE, but an application for PREPARED BY (Signature): SUBMISSION OF THIS FORM CONSTITUTES THE OFFEROR/CONTRACTOR'S ACKNOWLEDGEMENT AND AGREEMENT TO COMPLY WITH THE M/WBE REQUIREMENTS SET FORTH UNDER NYS EXECUTIVE LAW, ARTICLE 15-A AND 5 NYCRR PART 143. FAILURE TO SUBMIT COMPLETE AND ACCURATE INFORMATION MAY RESULT IN A FINDING OF NONCOMPLIANCE AND/OR TERMINATION OF THE CONTRACT. Date: Name and Title of Preparer (Printed or Typed): Telephone Number: .Email Address: ! Submit with the bid or proposal or if submittingafter award,11 p p for an OGS contract, submit to: NYS Office of General Services Office of Minority/Woman-owned Business Enterprise Program Operations Corning Tower, 41ST Floor Empire State Plaza Albany, NY 12242 M/WBE 101 (Revised 6-08) ******************** FOR OGS USE ONLY ******************** REVIEWED BY: ;DATE: I Waiver Granted: ❑ YES MBE: ❑ ❑ Total Waiver ❑ Partial ❑ ESD Certification Waiver ❑ *Conditional ❑ Notice of Deficiency Issued WBE: ❑ 1 Waiver *Comments: Page 11 of 12 REQUIREMENTS AND DOCUMENT SUBMISSION INSTRUCTIONS When completing the Request for Waiver Form please check all boxes that apply. To be considered, the Request for Waiver Form must be accompanied by documentation for items 1 —11, as listed below. If box # 3 has been checked above, ;please see item 11. Copies of the following information and all relevant supporting documentation must be submitted along with the request: 1. A statement setting forth your basis for requesting a partial or total waiver. 2. The names of general circulation, trade association, and M/WBE-oriented publications in which you; solicited certified M/WBEs for the purposes of complying with your participation goals. 3. A list identifying the date(s) that all solicitations for certified M/WBE participation were published in any of'the above publications. 4. A list of all certified M/WBEs appearing in the NYS Directory of Certified Firms that were solicited fdr purposes of complying with your certified M/WBE participation levels. 5. Copies of notices, dates of contact, letters, and other correspondence as proof that solicitations were made in writing and copies of such solicitations, or a sample copy of the solicitation if an identical solicitation was made to all certified M/WBEs. 6. Provide copies of responses made by certified M/WBEs to your solicitations. 7. Provide a description of any contract documents, plans, or specifications made available to certified MBEs for purposes of soliciting their bids and the date and manner in which these documents were made available. 8. Provide documentation of any negotiations between you, the Offeror/Contractor, and the M/WBEs undertaken for purposes of complying with the certified M/WBE participation goals. 9. Provide any other information you deem relevant which may help us in evaluating your request for a waiver. 10. Provide the name, title, address, telephone number, and email address of offeror/contractor's representative authorized to discuss and negotiate this waiver request. 11. Copy of notice of application receipt issued by Empire State Development (ESD). Note: Unless a Total Waiver has been granted, Offeror/Contractor will be required to submit all reports and documents pursuant to the provisions set forth in the Contract, as deemed appropriate by OGS, to determine M/WBE compliance. M/WBE 101 Instructions (6-08) OEPage 12 of 12 OFFICE OF MINORITY/WOMEN-OWNED BUSINESS ENTERPRISE PROGRAM OPERATIONS MONTHLY M/WBE CONTRACTOR COMPLIANCE REPORT INSTRUCTIONS: BEGINNING THIRTY (30) DAYS AFTER A CONTRACT IS AWARDED; MONTHLY COMPLIANCE REPORTS ARE DUE ON THE TENTH DAY OF EACH MONTH FOR THE PRECEDING MONTH'S ACTIVITY. Contractor's Name: Address: City, State, Zip Code: Federal Identification No.: Contract No.: Telephone No: AS EVIDENCE OF THE PROGRESS MADE TOWARDS ACHIEVEMENT OF THE MINORITY/WOMEN-OWNED BUSINESS ENTERPRISE (M/WBE) GOAL(S), CONTRACTOR IS REQUIRED TO COMPLETE AND SUBMIT THE FOLLOWING FOR EACH MBE OR WBE (PLEASE USE A SEPARATE FORM FOR EACH MBE OR WBE.): 1. Copy (ies) of the written agreement with certified MANBEs (submit with first monthly report). 2. List below the name, address and telephone number(s) of the certified M/WBE(s) utilized during the preceding month. NAME ADDRESS CITY, STATE, ZIP 3. Description of the work performed by the certified M/WBE in the reporting period (attach separate sheet if needed)) 4. Dates of performance of the work by the certified M/WBE 5. Actual payments made to the certified M/WBE in the reporting period $ 6. Actual total amount(s) of all payments made over the life of the contract by the Contractor to the certified M/WBE as of the date the compliance report is being submitted $ TELEPHONE NO. LOCATION OF WORK PERF RMED PREPARED BY (Signature): DATE: SUBMISSION OF THIS FORM CONSTITUTES THE CONTRACTOR'S ACKNOWLEDGEMENT AND AGREEMENT TO COMPLY WITH THE M/WBE REQUIREMENTS SET FORTH UNDER NYS EXECUTIVE LAW, ARTICLE 15-A AND 5 NYCRR PART 143. FAILURE TO SUBMIT COMPLETE AND ACCURATE INFORMATION MAY RESULT IN A FINDING OF NONCOMPLIANCE AND/OR TERMINATION OF THE CONTRACT NAME AND TITLE OF PREPARER (Print or Type): TELEPHONE NO.: EMAIL ADDRESS: Monthly reports for OGS contracts should be submitted by the 10th day of each month to: Financial Administration New York State - Office of General Services 40th Floor, Mayor Erastus Corning 2nd Tower The Governor Nelson A. Rockefeller Empire State Plaza Albany, NY 12242 FOR OGS USE ONLY REVIEWED BY: ! DATE: M/WBE 102 (rev 6-08) Appendix D Cost Proposal New York State - Office of General Services Equipment Maintenance Program (EMP) (Statewide) RFP 21988PF — Appendix D —Cost Proposal Page 1 of 2 Cost Proposal Discount Proposer will provide equipment maintenance Service agreement coverage for equipment requested by any Authorized User at the minimum fixed percentage discount stated herein, which discount shall be applied against the cost of the previous vendor maintenance contracts, or if such contracts are not available, the minimum discount shall be applied against the then prevailing market cost of comparable vendor maintenance coverage with the same level of service. - Minimum Percent discount ok (Vendor's Name) By (Signature) Name: Title: Date: New York State - Office of General Services Equipment Maintenance Program (EMP) (Statewide) RFP 21988PF — Appendix D —Cost Proposal Page 2 of 2 Appendix E OGS Security Requirements New York State - Office of General Services Equipment Maintenance Program (EMP) (Statewide) RFP 2 1 9 8 8PF — Appendix E — OGS Security Requirements Page 1 of 2 OGS SECURITY REQUIREMENT a. This clause is applicable to all contracts that include information technology resources or services in which the Contractor must have physical or electronic access to sensitive OGS information. For the purpose of this clause, the term "Sensitive" is defined by the guidance set forth in the NYS Information Security Policy (P03-002), issued by the NYS Office of Cyber Security and Critical Infrastructure Coordination (CSCIC). There is a presumption that all information technology systems contain some sensitive information. Information—technology_resour_ces_include,_but are _not limited. to, system.software application software, and information (data). Information technology services include, but are not limited to, the management, operation (including input, processing, transmission, and output), maintenance, programming, and system administration of computer systems, networks, and telecommunications systems. The Contractor shall be responsible for implementing sufficient information technology security to reasonably prevent the compromise of OGS IT resources for all of the contractor's systems that are interconnected with an OGS network, as well as for OGS systems that are operated by the Contractor. b. All Contractor personnel performing under this contract, and all Contractor equipment used to process or store OGS data or to connect to OGS networks, must comply with the requirements contained in: • The NYS Information Security Policy (P03-002) To obtain a copy, contact CSCIC (http://www.cscic.state.nv.us/lib/policies/); • NYS information technology policies, standards and best practice guidelines (http://www.oft.state.ny.us/policy/technologvpolicyindex.htm); and • OGS information security policies, procedures, and standards. c. For all Contractor -owned systems for which performance of the contract requires interconnection with an OGS network or that OGS data be stored or processed on them, the Contractor shall provide, implement, and maintain an IT Security Plan. This plan shall be submitted to OGS prior to the commencement of any work under the contract. It shall describe the processes and procedures that will be followed to ensure the appropriate security of IT 'resources that are developed, processed, or used under this contract. The plan shall also describe those parts of the contract to which this clause applies. The plan shall meet IT security requirements in accordance with NYS policies and procedures that include, but are not limited to: • The NYS Information Security Policy (P03-002) To obtain a copy, contact CSCIC (http://www.cscic.state.nv.us/lib/policies/); • NYS information technology policies, standards and best practice guidelines (http://www.oft.state.ny.us/policy/technologypolicyindex.htm); and • OGS information security policies, procedures, and standards. d. The Contractor shall incorporate this clause in all subcontracts that meet the conditions in paragraph (a) of this clause. New York State - Office of General Services Equipment Maintenance Program (EMP) (Statewide) RFP 21988PF - Appendix E — OGS Security Requirements Page 2 of 2 Appendix F Model Maintenance Service Agreement New York State - Office of General Services Equipment Maintenance Program (EMP) (Statewide) RFP 21988PF - Appendix F — Model Maintenance Service Agreement Page I of 13 Equipment Maintenance Coverage Information Page SERVICE AGREEMENT NO.: SERVICE AGREEMENT TERM: COMPANY NAME & ADDRESS: / / to / / CLIENT NAME & ADDRESS: COVERAGE PROVIDED: Equipment Maintenance Coverage LOCATION OF PREMISES: As shown on the Schedule of Covered Property EQUIPMENT DESCRIPTION: As Shown on the Schedule of Covered Property ANNUAL FEE: New York State - Office of General Services Equipment Maintenance Program (EMP) (Statewide) RFP 21988PF - Appendix F — Model Maintenance Service Agreement Page 2 of 13 Equipment Maintenance Supplemental Coverage Information Page 1. Coverage Limits: A. Aggregate Service Agreement Liability $ B. Item Limit: The most we will pay for any one Loss is the Actual Cash Value of the property at the time of Loss C. Rental Reimbursement Limit, unless otherwise specified (Not to exceed the Actual Cash Value of the property less Corrective Maintenance Charges) 2. Deductibles Each loss deductible 3. Large Loss Notification Limit 4. Loss Notification Period 5. Hourly Rate for Requested Consultative Services 10 days $ 0 $ 90 days $ New York State - Office of General Services Equipment Maintenance Program (EMP) (Statewide) RFP 21988PF — Appendix F — Model Maintenance Service Agreement Page 3 of 13 Model Equipment Maintenance Service Agreement In return for Your payment of the required Fee, We provide the coverage described herein subject to all the terms of this Equipment Maintenance Coverage Service Agreement. The terms and conditions of the Agreement for Equipment Maintenance Program dated 2011, (the "EMP Agreement") between and the New York State Office of General Services (Comptroller's Contract No. ) are hereby incorporated by reference and made a part hereof as fully as if set forth at length herein. In the case of any discrepancy between the terms and conditions of this Agreement and the terms and conditions of the EMP Agreement, the terms and conditions of the EMP Agreement shall be controlling. COVERAGE PROVIDED We will indemnify You for Loss that You incur as Corrective Maintenance Charges to return Covered Property to Effective Operation due to a Precipitating condition during the Service Agreement Period. DEFINITIONS Throughout this Service Agreement the words "You" and "Your" refer to the Client shown in the Coverage Information Page. The words "We," "Us," and "Our" refer to the company providing this service agreement. The term "Property" is used interchangeably with "Equipment" and "Item". "Actual Cash Value" means the market value of the Covered Property or of similar equipment of equivalent age, kind, and functionality at the time of the Loss. "Corrective Maintenance Charges" means necessary, standard, and customary charges for services rendered to You to restore covered equipment to Effective Operation including the cost of parts, Labor, travel, taxes, and shipping charges. "Coverage Information Page" means the document so labeled and attached hereto, which is hereby incorporated by reference and made a part hereof as fully as if set forth at length herein. "Covered Property" means property owned or leased by You or property in Your care, custody or control, that is shown in the Schedule of Covered Property. "Effective Operation" means the ability of Covered Property to render the same or similar service as prior to the development of a Precipitating condition and operating within manufacturer specifications for the device. "Labor" is defined as seven (7) days per week, twenty-four (24) hours per day at the vendor's prevailing Labor rates, not including additional expenses associated with overtime, weekend, or holiday repair, except as is noted in the Schedule of Covered Property. "Loss" means necessary Corrective Maintenance Charges incurred by You to restore Covered Property to Effective Operation due to a Precipitating condition. A Loss occurs at the time when it is discovered that a Precipitating condition is impairing the Effective Operation of Covered Property. "Schedule of Covered Property" means the document so labeled and attached hereto, which is hereby incorporated by reference and made a part hereof as fully as if set forth at length herein. The schedule of Covered Property may be amended from time to time by agreement of the parties. "Service Agreement Period" means the period from the effective date of this agreement to the Service Agreement expiration date shown in the Coverage Information Page, or its earlier termination date, if any. "Supplemental Coverage Information Page" means the document so labeled and attached hereto, which is hereby incorporated by reference and made a part hereof as fully as if set forth at length herein. "Precipitating Condition" means an impairment of the Effective Operation of Covered Property arising from electrical or mechanical failure. New York State - Office of General Services Equipment Maintenance Program (EMP) (Statewide) RFP 21988PF - Appendix F — Model Maintenance Service Agreement Page 4 of 13 EXCLUDED CAUSES OF LOSS Unless specifically noted on the Schedule of Covered Property, We will not reimburse You for those Corrective Maintenance Charges caused directly or indirectly by any of the following regardless of any other cause or event that contributes concurrently or in any sequence to the Loss: 1. Any cause of Loss customarily covered under the following commercial insurance forms: a. Boiler & Machinery; b. Automobile; c. Crime; d. Electronics Data Processing; e _Business_Interruption_or-Time-Element; .. _. f. Fire & Extended Coverage; or g. Named Peril, Special or All Risk Property; 2. Flood, sewer or drain back-up or earth movement, including earthquake, landslide, mudflow, and earth sinking, rising or shifting; 3. Insect or vermin damage to Covered Property; 4. Obsolescence of Covered Property; 5. War, including undeclared war, civil war, insurrection, rebellion, revolution, terrorism, warlike act by a military force or military personnel, destruction or seizure or use for a military purpose, and including any consequence of any of these. Discharge of a nuclear, biological, or chemical weapon(s) will be deemed a warlike act even if accidental; 6. Radioactive Contamination, meaning: a. Ionizing radiation from or contamination by radioactivity from any nuclear fuel or from any nuclear waste or from the combustion of nuclear fuel; b. The radioactive, toxic, explosive or other hazardous or contaminating properties of any nuclear installation, reactor or other nuclear assembly or nuclear component thereof; c. Any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter; 7. Vandalism, defacement, malicious mischief, or any willful act of malicious intent; 8. Willful, fraudulent or dishonest act or omission by You; 9. Ordinances, regulations, laws, or court actions; 10. Application software or software virus; 11. Vendor, Contractor, or In -House Repair Staff error, faulty workmanship, improper installation, improper maintenance, negligence or fraud. EXCLUDED COSTS Unless specifically noted on the Schedule of Covered Property, We will not reimburse You for the direct cost of: 1. Replacement of operating supplies, consumables, disposables, expendables, or accessory items; 2. Improvements, updates, upgrades, cosmetic restorations, preferential equipment adjustments, retrofits, overhauls, refurbishment, or correcting conditions of obsolescence and all costs of repairing or replacing parts when the discovery of deficiencies occurs as a result or in conjunction with any of these not related to preventative maintenance; 3. Expenses incurred for functions and services normally performed by the equipment operator; New York State - Office of General Services Equipment Maintenance Program (EMP) (Statewide) RFP 21988PF - Appendix F — Model Maintenance Service Agreement Page 5 of 13 4. Maintaining or repairing covered equipment mounting hardware, supports, fixtures, or furniture; 5. Trace gas analysis, safety checks, certifications, calibrations, or preventive maintenance; 6. Repair or replacement of X-Ray tubes, pick-up tubes, image intensifiers, glassware, transducers, probes, magnets, cryogens, crystals, wave guides, shock wave generators, magnetrons, klystrons, thyratrons, fiber optics, laser systems, lights, uninterrupted power supplies (UPS), drums, including copier drums and laser imaging drums, MRI magnets, coils, equalization, repair, or replacement of batteries, battery cells or electrodes; 7. Loaner charges or rent for replacement CT's, PET Scanners, MR1's, Nuclear Medicine Labs, Cath Labs, Oncology Systems; 8. Repairs and expenses associated with de -installation, movement, or installation of covered equipment; 9 Delay,loss of.market,loss_of_use,_or_business-interruption;. _ _ 10. If there is a Loss to an item that is part of a pair or set, We will pay only for the costs to repair or replace the impaired item; 11. If there is a Loss to a part of an item that consists of several parts, We will pay only for the Loss to that part. A Loss to a part is not considered to be a Loss to the whole item; 12. If there is other insurance or service agreement, whether collectible or not, that applies to a covered Loss, or would have applied in the absence of this coverage, We will pay for the Loss only after the full amount from the other insurance or service agreement has been paid; 13. We will not pay for the part of a Loss that has been paid by someone else. CONDITIONS 1. Aggregate Service Agreement Liability We will not be liable for more than the aggregate liability shown in the Supplemental Coverage Information Page. 2. Item Limit of Liability The most We will pay for any one Loss is the Actual Cash Value of the property at the time of Loss or damage. 3. Deductible There shall be no deductibles paid by You under this Service Agreement. 4. Service Agreement Period and Territory This Service Agreement applies only to Losses that occur: a. During the Service Agreement period shown in the Coverage Information Page; b. Within the effective coverage period for each piece of equipment as specified in the Schedule of Covered Property; and c. While the Covered Property is within the United States. 5. Concealment or Fraud At Our discretion, We may cancel or void the Service Agreement if You have: a. Intentionally concealed or misrepresented any material fact or circumstance; or b. Engaged in fraudulent conduct or false swearing by You relating to this service agreement. 6. Prior known Precipitating condition We will not cover Loss that results from a Precipitating condition that is known by You prior to the effective date of this agreement. New York State - Office of General Services Equipment Maintenance Program (EMP) (Statewide) RFP 21988PF - Appendix F — Model Maintenance Service Agreement Page 6 of 13 7. Loss Settlement We will not reimburse You for more than the Actual Cash Value of the property at the time of Loss or damage. The Loss or damage will be ascertained or estimated on the basis of Actual Cash Value of property similar in kind, age, model and manufacturer to the Covered Property at the place and time of the Loss or damage. We will not reimburse You for: a. Any increase in the cost of repair or replacement necessitated by any ordinance or law regulating or restricting repair, alteration, construction or installation; b. Loss or damage to property useless to You; or c. The cost of rental of substitute equipment of like kind, necessitated by a covered Loss, for more than a ten (10) day period, unless otherwise specified in the Schedule of Covered Property The total reimbursement for rental charges plus Corrective Maintenance Charges shall not exceed the Actual Cash Value of the property at the time of Loss. If We agree that replacement of an item is more cost effective than repair, You may substitute property of a similar kind, age, model, and manufacturer. Written authorization must be obtained from Us prior to the replacement of any Covered Property. We will not be liable for the cost of any unauthorized property replacement. 8. Special Duties Upon discovery of a Precipitating condition, which may give rise to a claim under this agreement, You must take all reasonable steps within Your power to minimize the extent of Loss. You must preserve and protect any undamaged or defective parts of Covered Property and make them available for inspection by Us or any of Our representatives. This obligation does not replace or supersede any other obligations under this agreement. 9. Protective Safeguards and Physical Environment You agree to maintain throughout each Service Agreement Period of this agreement such protective safeguards as were in existence at the time of or installed subsequent to the first effective date of this agreement. You further agree to take due care to maintain a physical environment (levels of temperature, humidity, dust, etc.) in keeping with the manufacturer's recommendation for the Covered Property. 10. Alteration of Risk You must provide Us notice in writing prior to or as soon as possible after every material change varying any of the facts or circumstances existing at the commencement of this contract, such as the moving of Covered Property or nearby construction. Such alteration of risk shall be basis for amendment of this Agreement. 11. Impairment of Recovery Rights Any act or agreement by You after Loss or damage whereby any right of Yours to recover in whole or in part for the Loss or damage to Covered Property against any carrier, bailee or other party is released, impaired or lost will render this Service Agreement null and void as to that Loss or damage. We are not liable for any Loss or damage, which, without Our written consent, has been settled or compromised by You. It shall, however, be permissible for You, without prejudice to this service agreement, to accept the ordinary Bills of Lading or Shipping Receipts issued by carriers limiting their liability to less than the actual value. 12. Volunteer Payments You must not, except at Your own expense, voluntarily make any payments, assume any obligations, pay or offer any rewards, or incur any other expenses except as respects to protecting property from further damage. 13. Notice of Loss a. If You expect the cost to restore the equipment may exceed the Large Loss Notification Limit specified on the Supplemental Coverage Information Page of this Service Agreement You New York State - Office of General Services Equipment Maintenance Program (EMP) (Statewide) RFP 21988PF - Appendix F — Model Maintenance Service Agreement Page 7 of 13 must report the Loss to Us prior to authorizing or commencing any service. Upon receipt of Your notice of Loss, We reserve the right to research and recommend alternative sources for parts and Labor to resolve the covered service event. This includes the right to obtain an alternative proposal, at Our expense, to restore the covered item to Effective Operation. Any alternative solution We proposed would use parts and services that comply with Original Equipment Manufacturer ("OEM") specifications for the Covered property. b. For routine corrective maintenance that will not reach or exceed the Large Loss Notification Limit specified on the Supplemental Coverage Information Page, there is no preliminary Loss notice requirement. c. In all cases You must give Us satisfactory notice of Loss within the Loss Notification Period specified on the Supplemental Coverage Information Page of this Service Agreement from the date of Loss. The notice of Loss must include a description of the property involved, a legible copy of the vendor service report, and corresponding vendor invoice. We will not be liable for any Loss, damage or occurrence not reported in compliance with this Section. 14. Service Agreement Schedule of Covered Property Changes a. During the Service Agreement term, You must request all changes to the Service Agreement Schedule of Covered Property in writing. if We accept the requested change, the effective date of the change will be either the date You notify Us in writing to execute the Service Agreement Schedule of Covered Property change, or an agreed future date. You agree that any equipment You request to be added for coverage will be in good working order with no known Precipitating condition. b. All Service Agreement Schedule of Covered Property changes acceptable to Us will be bound by a written modification issued by Us. You agree to pay the adjusted amount reflecting the changes for the remainder of the term of the Service Agreement Schedule of Covered Property. c. We are not liable for any Loss or return Fee associated with Service Agreement Schedule of Covered Property changes not reported in accordance with this Condition. 15. Abandonment. There can be no abandonment to Us of any Covered Property. 16. Property of Others Losses to property of others may be adjusted with and paid to: a. You on behalf of the owner; or b. the owner If We pay the owner, We do not have to pay You. We may also choose to defend any suits arising from the owners at Our expense. 17. Conformity with Statute When a condition of this coverage is in conflict with an applicable law, that condition is amended to conform to that law. 18. Examination You must submit to examination under oath in matters connected with the Loss as often as We reasonably request and give Us sworn statements of the answers. If more than one person is examined, We have the right to examine and receive statements separately and not in the presence of others. 19. Warranties, Maintenance Contracts, Service Agreements a. This Service Agreement shall not apply to any Loss or damage to any Covered Property to the extent that such Loss or damage is covered under any warranty, guarantee, maintenance contract, service contract, or insurance contract. New York State - Office of General Services Equipment Maintenance Program (EMP) (Statewide) RFP 21988PF - Appendix F — Model Maintenance Service Agreement Page 8 of 13 b. The terms and conditions of any warranty, maintenance contract, service agreement, or any other contract or agreement that You enter into with any third party does not bind Us related to scheduled equipment, unless We consent to the agreement in writing. 20. Cooperation You must cooperate with Us in performing all acts required by this Service Agreement. 21. Appraisal If You and We do not agree on the amount of the Loss, the Actual Cash Value of the property or the cost to repair or replace the property either party may demand that these amounts be determined by appraisal. If either party makes a written demand for appraisal, each will select a competent, independent appraiser and notify the other of the appraiser's identity within twenty (20) days after the receipt of the written-demand:=-Thetwo-appraisers will select a -competent; impartial -umpire within-15 - -- - days, You or We can ask a judge of a court in the state where the appraisal is pending to select an umpire. The appraisers will determine: a. the amount of the Loss; b. the Actual Cash Value of the property; and c. the cost to repair or replace the property. Each amount will be stated separately. If the appraisers submit a written report of an agreement to Us, the agreement will establish these amounts. If the appraisers fail to agree within a reasonable time, they will submit only their differences to the umpire. A written agreement by any two of these three will establish the amounts stated above. Each appraiser will be paid by the party selecting that appraiser. The compensation of the umpire and any other expenses of the appraisal will be shared equally by You and Us. 22. In -House Labor Reimbursement In consideration of the reduced fees charged under this Service Agreement, it is understood and agreed that members of Your staff are authorized to perform Labor to restore Covered Property to Effective Operation following a Loss. You warrant that staff used to restore Covered Property to Effective Operation have the necessary skill, experience and training to complete the repairs and are properly licensed and certified by the manufacturer, if required. We agree to reimburse You at the rate of $50.00 per hour for the actual hours of Labor performed by Your staff. 23. Assignment This Service Agreement may not be assigned by either party without the other parties written consent, except that this Service Agreement may be assigned by You pursuant to a governmental reorganization where the pertinent functions of You are transferred to a successor governmental entity. 24. Cancellation, Non -renewal, and Conditional Renewal a. You may cancel this service agreement for any reason by returning the service agreement to Us or by giving Us written notice and stating at what future date coverage is to stop. We may cancel this service agreement by written notice to You at the address shown on the service agreement and to Your authorized agent or broker, if any. Our notice will specify the grounds for cancellation. Proof of delivery or mailing is sufficient proof of notice. We may cancel without cause upon ninety (90) days advance written notice before cancellation is effective. We may also cancel for cause only for one or more of the following reasons: 1) the fee has not been paid when due, 2) Your conviction of a crime arising out of acts increasing the hazard insured against; 3) discovery of fraud or material misrepresentation in obtaining the service agreement or in New York State - Office of General Services Equipment Maintenance Program (EMP) (Statewide) RFP 21988PF - Appendix F — Model Maintenance Service Agreement Page 9 of 13 the presentation of a claim thereunder; 4) after issuance of the service agreement or after the last renewal date, discovery of an act or omission, or a violation of any service agreement condition that substantially and materially increases the hazard covered against and which occurred subsequent to inception of the current service agreement period; 5) material physical changes in the property covered, occurring after issuance or last annual renewal anniversary date of the service agreement, which result in the property becoming uninsurable in accordance with Our objective, uniformly applied underwriting standards in effect at the time the service agreement was issued or last renewed; or material change in the nature or extent of the risk, occurring after issuance or last annual renewal anniversary date of the service agreement, which causes the risk of loss to be substantially and materially increased beyond that contemplated at the time the service agreement was issued or last renewed; -6) -a determination -by -the -Superintendent -of Insurance -that -continuation -of -Our - present. -._ _._._ premium volume would jeopardize Our solvency or be hazardous to the interests of Our clients, creditors, or the public; 7) a determination by the Superintendent of Insurance that a continuation of the service agreement would violate, or would place Us in violation of, any provision of New York Service Agreement Laws; or 8) where We have reason to believe, in good faith and with sufficient cause, that there is a probable risk or danger that You will destroy, or permit to be destroyed, Your property for the purpose of collecting the service agreement proceeds. If We cancel this service agreement for any of the reasons listed in a. 1) through 8), We will give You notice at least 30 days before cancellation is effective. If We cancel this service agreement for reason 8) above, We will advise You that You must act within ten days if You desire a review by the Service Agreement Department. We will also simultaneously notify the Service Agreement Department of Our cancellation of Your service agreement. b. We may not renew or not renew with the same "terms", conditions, or rates, this service agreement by written notice to You at the address shown in the policy and to Your authorized agent or broker, if any. Proof of delivery or mailing is sufficient proof of notice. These non -renewal or conditional renewal requirements will not apply when You, an agent or broker authorized by You, or another contractor of Yours has mailed or delivered written notice to Us that the service agreement has been replaced or is no longer desired. If We do not renew this service agreement, We will mail or deliver to You Our written notice at least 90 days, but not more than 120 days, before the end of the service agreement period or the anniversary date. Our notice will specify the grounds for non -renewal. If We decide not to renew this service agreement with the same "terms", conditions, or rates, We will mail or deliver to You Our notice of conditional renewal at least 90 days, but not more than 120 days, before the end of the service agreement period or anniversary date. Our notice will state the reasons for conditional renewal and set forth the amount of any fee increase and the nature of any other proposed changes. This provision applies to renewal conditioned upon change of "limits", change in type of coverage, reduction of coverage, increased deductible, addition of exclusion, or upon increased Fee in excess of 10% (exclusive of any fee increase generated as a result of increased exposure units or as a result of experience rating or loss rating). c. Your return fee, if any, will be refunded at the time of cancellation or as soon as practical. Payment or tender of the unearned fee is not a condition of cancellation. 25. Change, Modification, or Waiver of Service Agreement Terms A waiver or change of the "terms" of this Service Agreement must be issued by Us in writing to be valid. If We adopt a revision, which broadens coverage under this edition of Our service agreement without an additional fee during the service agreement period, or within six months before this coverage is effective, the broadened coverage will apply. If a change in forms reduces coverage or "limits", We must notify You as provided under the non -renewal "terms" contained in this service agreement. 26 Inspections We have the right, but are not obligated, to inspect Your property and operations at any reasonable time, subject to all then applicable security procedures and any operational restrictions. This inspection may be made by Us or may be made on Our behalf. An inspection Ncw York State - Office of General Services Page 10 of 13 Equipment Maintenance Program (EMP) (Statewide) RFP 21988PF - Appendix F — Model Maintenance Service Agreement or its resulting advice or report does not warrant that Your property or operations are safe, healthful, or in compliance with laws, rules, or regulations. Inspections or reports are for Our benefit only. 27. Reimbursements Reimbursements for Corrective Maintenance Repairs shall be remitted directly to the vendor within thirty (30) days of receipt by Us or Our designated agent of all required documentation. IN WITNESS WHEREOF, the parties hereto have executed this Service Agreement as of the date first above written. _-_(Client) Name: Title: By (Company) By Name: Title: Federal I.D. No.: CORPORATE ACKNOWLEDGMENT STATE OF } COUNTY OF ss.: } On the day of in the year 20 _ , before me personally came: , to me known, who, being by me duly sworn, did depose and say that he/she/they reside(s) in ; that he/she/they is (are) (the President or other officer or director or attorney in fact duly appointed) of , the corporation described in and which executed the above instrument; and that he/she/they signed his/her/their name(s) thereto by authority of the board of directors of said corporation. Signature and Office of Person Taking Acknowledgment New York State - Office of General Services Equipment Maintenance Program (EMP) (Statewide) RFP 2I988PF - Appendix F — Model Maintenance Service Agreement Page 11 of 13 AGENCY NAME Schedule of Covered Property Service Agreement Number: AGENCY ADDRESS / / CITY, STATE ZIP Location: 888 Main Street, Mail Room Effective Dates: // - Report Date: _I_I_ 1234 ABC Vendor Company PQR-6543 555555 Mailing Mac ' e 1/1/05 $ 0642 XYZ Vendor Company 7002 XYZ Vendor Company 789-A 5432 222-Z 93 5678 ABC Vendor Company PQR-1050 Location Totals: 888 Main Street, Mail Location: 777 Main Stre New York S Statewid Solicit f General intenance P pendix D —Cost Annual Ton Annual ► v Sup cries ba 22222 A• •ualRibi• Copier Ti n lim 'oom # em• a is Location = 4 1/1105 1/1/05 $45 $185 $520 $13,200 $45 185 $15,250 $13,950 Page 12 of 13 6543 XYZ Vendor Company 732-C 6273 Copier Drums included Annual Toner limit = 8 Paper & Staples exclude Supplies based on 290 000 6544 XYZ Vendor Company 320-A 2468 6569 XYZ Vendor Company 963-F 0135 2846 LMN Vendor Company HG32QR 2847 LMN Vendor Company Location Totals: 777 M esktop P4 1 000 annual copies $290 $290 $2,100 $2,100 Se• rity Sys -m 4/8/05 $3,500 $2,600 ded Portals 4/8/05 $9,000 $6,700 (including overtime) included ent # Items at this Location = 5 $15,910 $12,710 Total # ocations - Total # Equipment Items = 9 New York State - Office of General Services Statewide Equipment Maintenance Program Solicitation 1551 — Appendix D —Cost Proposal $31,160 $26,650 Page 13 of 13