APPLE VALLEY TOWN COUNCIL
AGENDA
Tuesday, February 24, 2026, 6:30 p.m.
Council Chamber
PLEASE SILENCE CELL PHONES UPON ENTERING THE CHAMBER
THIS MEETING IS BROADCAST LIVE AND VIEWABLE ON FRONTIER CHANNEL 29 OR CHARTER SPECTRUM CHANNEL 186 AND LIVE STREAMED ONLINE AT HTTPS://APPLEVALLEY.TV. THE TOWN OF APPLE VALLEY SUPPORTS PUBLIC COMMENTS FOR INDIVIDUALS NOT PHYSICALLY PRESENT AND WISHING TO MAKE PUBLIC COMMENTS.
PLEASE EMAIL YOUR COMMENT TO [email protected]. COMMENTS SHOULD BE SUBMITTED BY 12:00 P.M. ON THE MEETING DATE TO BE INCLUDED IN THE RECORD.
The meeting will occur in the Council Chamber located at 14955 Dale Evans Parkway in Apple Valley, California.
This is an agenda for the scheduled meeting of the Town of Apple Valley.
This agenda contains a brief description of each item of business to be considered at today’s meeting. In accordance with the Brown Act, this meeting agenda is posted at least 72 hours prior to the regularly scheduled meeting. The agenda, its supporting documents and all writings received by the Town Council related to these items are public records and available for review during regular business hours in the Town Clerk’s office in the Town Council Chamber. The agenda and its supporting documents, along with live and archived video of the meeting, can be viewed online at http://www.applevalley.org. However, the online agenda may not include all available supporting documents or the most current version of documents.
Materials related to an item on this agenda submitted to the Council after distribution of the agenda packet are available for public inspection in the Town Clerk’s Office at 14955 Dale Evans Parkway, Apple Valley, CA during normal business hours. Such documents are also available on the Town of Apple Valley website at www.applevalley.org subject to staff’s ability to post the documents before the meeting.
Items listed on the Consent Calendar are expected to be routine and non-controversial and, unless the Town Council directs that an item be held for further discussion, the entire Consent Calendar will be acted upon as the first item of business. If the Town Council directs that an item listed on the Consent Calendar be held for further discussion, the item will be addressed immediately after approval of the Consent Calendar.
In accordance with the Rules of Procedure, members of the public may address the Town Council on any item on the agenda and on any matter that is within the Town Council’s jurisdiction. To address the Town Council regarding an item, complete and submit the yellow card entitled Request to Speak.
Please indicate on the card whether you are speaking under Public Comments or on an item that is listed on the agenda and please list the item number.
No action or discussion shall be undertaken on any item not appearing on the posted agenda, except that members of the Town Council/Redevelopment Agency or its staff may briefly respond to statements made or questions posed by persons exercising their public testimony rights under Section 54954.3.
When called, approach the podium and if desired, please state your name before giving your presentation. Speakers may address the Town Council for up to three (3) minutes. Speakers are to address the Town Council as a whole through the Presiding Officer. Comments to individual Council Members and/or staff are not permitted.
Individuals, who demonstrate disruptive conduct during Town Council meetings that prevent the Town Council from conducting its meeting in an orderly manner, are guilty of a misdemeanor as stated in PC403, disrupting a public meeting and are subject to removal from the chamber or arrest.
The Town of Apple Valley recognizes its obligation to provide equal access to those individuals with disabilities. Please contact the Town Clerk’s Office at (760) 240-7000 two working days prior to the scheduled meeting for any requests for reasonable accommodations.
Pages
1. Call to Order
2. Opening Ceremonies
2.1 Invocation
Pastor Johnny Lewis with Grace Christian Community Church Apple Valley
2.2 Pledge of Allegiance
2.3 Presentations
3. Public Comments
4. Councilmember Committee/Commission/Community Participation 5 Councilmembers to make brief reports on their participation on committees, boards, and commissions on the Town’s behalf since the last meeting.
Councilmembers may also make brief reports on their community participation.
No formal action will be taken.
5. Town Council Announcements
5.1 Suggested items for next Agenda
5.2 Time, Date & Place for Next Town Council Regular or Special Meeting A. Regular Meeting - March 10, 2026 - Council Chambers Regular Session at 6:30pm
6. Town Council Consent Agenda
Recommended Motion:
To approve the Consent Calendar items numbered 6.1 to 6.4 as recommended.
6.1 APPROVAL OF MINUTES 7
That the Town Council approve the subject minutes as part of the consent agenda.
6.2 APPROVE PUCHASE OF 2026 PETERBILT 548 DUMP TRUCK 16 Approve the purchase of a new RapidView IBAK 1640’ 4K/HD Mainline CCTV Inspection System mounted in a Ford Transit VanWagon XL from Municipal Maintenance Equipment for $331,892.05.
6.3 AWARD DESIGN CONTRACT FOR THE BEAR VALLEY ROAD
CONNECTIVITY/BUS TURNOUT PROJECT
59 Award a Professional Services Contract to HRGreen for Design Services for the Bear Valley Road Connectivity project subject to “Approval as to Form” by the Town Attorney and “Approval as to Content” by the Town Manager.
6.4 AWARD A PROFESSIONAL SERVICES AGREEMENT TO CONDUCT
STRATEGIC VISION PLANNING SERVICES
85 It is recommended that the Town Council award a Professional Services Agreement to Harness Strategy LLC in an amount not to exceed $176,000 to facilitate development of the Town’s Vision 2035 Strategic Plan through public opinion research, community engagement, and leadership alignment subject to “Approval as to Form” by the Town Attorney and “Approval as to Content” by the Town Manager.
7. Public Hearings
7.1 RESOLUTION 2026-05, TO RECORD DELINQUENT UTILITY FEES
AND COSTS AGAINST REAL PROPERTY LOCATED IN THE TOWN
OF APPLE VALLEY AND DIRECTING THAT SAID ASSESSMENTS
CONSTITUTE A LIEN UPON SAID PROPERTIES
108
That the Town Council:
1. Open Public Hearing.
Adopt Resolution No. 2026-05, confirming delinquent utility fees and costs against real property located in the Town, and directing that said assessments constitute a lien upon said properties.
2. 3. Close Public Hearing.
8. Business of the Council
9. Reports, Requests and Communications
10. Town Manager’s Comments & Legislative Update
11. Closed Session
Recommended Motion:
To Adjourn the regular meeting to move into Closed Session at TIME to discuss the following:
11.1 CLOSED SESSION 162
PUBLIC EMPLOYEE PERFORMANCE EVALUATION (90 DAY)
Title: Town Manager
12. Adjournment
Recommended Motion:
To adjourn the meeting of the Apple Valley Town Council at TIME.
TOWN OF APPLE VALLEY
TOWN COUNCIL SERVING ON BOARDS, COMMITTEES & COMMISSIONS
CITIZEN ADVISORY COMMITTEES
HISTORICAL ADVISORY COMMITTEE (HAC)
Council Member Cusack
Meets every 2nd Tuesday of each month at 9:00 a.m.,
(location may vary)
SPECIAL ADVISORY COMMITTEES
DISASTER PREPAREDNESS*
Mayor - Chairman
Meets quarterly at 1:30 p.m., Town of Apple Valley
Conference Center - Development Services Building
14975 Dale Evans Parkway, Apple Valley.
TRAFFIC ADVISORY COMMITTEE (TAC)
Mayor Nassif
Meets as needed.
Town Council Chambers
TOWN PERSONNEL COMMITTEE
Mayor Nassif
Council Member Bishop
Meets as needed
PARK AND RECREATION ADVISORY COMMITTEE
Mayor Nassif
Council Member Emick
AD HOC COMMITTEES
APPLE VALLEY ROAD AD HOC COMMITTEE
Mayor Nassif
VILLAGE MERCHANTS AD HOC COMMITTEE
Council Member Emick
SINGLE-FAMILY RESIDENTIAL DESIGN CRITERIA
AD-HOC COMMITTEE
Council Member Bishop
Mayor Pro-Tem Leon
AGENCY - BOARDS/COMMITTEES &
COMMISSIONS
CALIFORNIA JOINT POWERS INSURANCE
AUTHORITY (CJPIA)
Mayor Nassif – Director
Exec. Committee meets every 4th Wednesday of each
month at 7:00 p.m., La Palma, CA.
CAL CITIES/DESERT MOUNTAIN DIVISION (DMD)
Mayor Nassif- Voting Delegate
Council Member Bishop – Alternate
Meets as needed, rotating cities.
MOJAVE DESERT AIR QUALITY MANAGEMENT
DISTRICT (MDAQMD)
Mator Pro-Tem Leon-– Delegate
Council Member Emick – Alternate
Meets every 4th Monday of each month at 10:00 a.m.,
14306 Park Avenue, Victorville
MOJAVE DESERT AND MOUNTAIN RECYCLING
AUTHORITY
Council Member Cusack – Delegate
Council Member Bishop – Alternate
Meets quarterly on the 2nd Thursday February, May,
August and November at 10:00 a.m.
at the Materials Recovery Facility, 17000 Abbey Lane,
Victorville
SAN BERNARDINO COUNTY TRANSPORTATION
AUTHORITY (SBCTA)
Council Member Bishop - Board Member
Council Member Cusack – Alternate
Meets 2
nd Wednesday of each month at 9:00 a.m.,
I10/I15 Corridor meets 2nd Thursday at 10:00 a.m.
1170 West 3rd St.
San Bernardino
SOLID WASTE ADVISORY TASK FORCE (SWAT)
Council Member Cusack – Committee Member
Julie Ryan - Alternate
Meets as needed on Wednesdays at 1:30 p.m.
Sam J. Racadio Library & Environmental Learning
Center Community Room 7863 Central Ave. Highland
VICTOR VALLEY ECONOMIC DEVELOPMENT
AUTHORITY (VVEDA)
(George Air Force Base Reuse Task Force)
Council Member Emick – Commissioner
Council Member Bishop – Alternate
Meets as needed, SCLA
VICTOR VALLEY TRANSIT AUTHORITY (VVTA)
Council Member Emick – Representative
Mayor Pro-Tem Leon - Alternate
Meets every 3rd Monday of each month at 9:30 a.m.,
Victorville City Hall
VICTOR VALLEY WASTEWATER RECLAMATION
AUTHORITY (VVWRA)
Mayor Nassif – Commissioner
Council Member Bishop – Alternate
Meets every 3rd Thursday at 7:30 a.m.
VVWRA Offices
GREATER HIGH DESERT CHAMBERS
GOVERNMENTAL RELATIONS COMMITTEE
Council Member Bishop – Representative
Council Member Cusack – Alternate
*These Boards, Committees and
Commissions require the Mayor to serve
as the representative.
Town Council Agenda Report
Date: February 24, 2026
To: Honorable Mayor and Town Council
Subject: APPROVAL OF MINUTES
From: Todd Bodem, Town Manager
Submitted by: La Vonda M-Pearson, Director of Government Services/Town Clerk Budgeted Item: Yes No N/A
RECOMMENDED ACTION
That the Town Council approve the subject minutes as part of the consent agenda.
SUMMARY:
A. Regular Meeting, February 10, 2026
B. Special Meeting, February 18, 2026 – 10:00 a.m.
C. Special Meeting, February 18, 2026 – 5:00 p.m.
Apple Valley Town Council
MINUTES
February 10, 2026, 6:30 p.m.
Council Chamber
Members Present: Mayor Scott Nassif
Mayor Pro Tem Kari Leon
Council Member Art Bishop
Council Member Curt Emick
Members Absent: Council Member Larry Cusack
_____________________________________________________________________
1. Call to Order
Mayor Nassif called to order the regular session of the Apple Valley Town Council at 6:30 p.m.
2. Opening Ceremonies
2.1 Invocation
Pastor Kit Johnson with Life Point Baptist Church Apple Valley
2.2 Pledge of Allegiance
The Pledge of Allegiance was led by Council Member Bishop.
2.3 Presentations
A. Colin Wilson - Certificate of Appreciation for service Apple Valley's Parks and Recreation Commission
B. Bruce Ebmeyer - Certificate of Appreciation for service on Apple Valley's Citizen's Transactions and Use (Sales) Tax Revenue Measure Oversight Committee
C. CJ Porter - Certificate of Appreciation for service on Apple Valley's Citizen's Transactions and Use (Sales) Tax Revenue Measure Oversight Committee
D. Appointment CJ Porter to the Parks and Recreation Commission
TC MINUTES FEBRUARY 10, 2026
2 3. Public Comments
David Dencker, Apple Valley, commented on the bill of rights. He spoke on the rights of citizens to ask questions about the Town of Apple Valley. He commented on requests for records that he submitted and has not received regarding the League of Cities Mayor and Council Academy.
Kerry Henard, Apple Valley, expressed concern regarding records requests, cameras and the need for a timer in the Council Chambers.
Ted Bohanon, Apple Valley, expressed concern regarding comments made by the Mayor in which he believed were negative against citizens. He also commented on a potential debate.
Marcy Taylor, Apple Valley, representing various historical committees, commented on past and upcoming events in the Town of Apple Valley and the County of San Bernardino.
CJ Porter, Apple Valley Stake, Church of Jesus Christ of Latter-Day Saints, commented on events that will be taking place at the church.
Shari Kidwell, Apple Valley, asked questions regarding taxpayer dollars being spent on items that she did not believe were appropriate.
Student Ambassadors from the Academy of Academic Excellence thanked the Town Council for the leadership and support that they have shown the school and its students.
Jeffrey Horney, Apple Valley, expressed concern over misinformation being spread against the Town of Apple Valley.
Mayor Nassif made a statement regarding the work that he and the Town Council do on behalf of the community. He spoke on representing Apple Valley at the League of Cities through involvement in committees and activities. He also spoke about the hard work that is being done by the Finance Department.
Mayor Nassif announced that the Town Finance Department would be conducting a workshop for the benefit of the public to discuss how the budget process works in the Town of Apple Valley.
4. Councilmember Committee/Commission/Community Participation Councilmembers to make brief reports on their participation on committees, boards, and commissions on the Town’s behalf since the last meeting.
Councilmembers may also make brief reports on their community participation.
No formal action will be taken.
TC MINUTES FEBRUARY 10, 2026
3 Council Member Bishop commented on committee meetings and events that she attended.
Council Member Emick commented on committee meetings and events that he attended.
Mayor Pro Tem Leon commented on committee meetings and events that he attended.
Mayor Nassif commented on committee meetings and events that he attended.
5. Town Council Announcements
5.1 Suggested items for next Agenda
Council Member Bishop commented on AB1421. Agendize or send a letter of opposition to the state on this bill. Bring back to the next meeting.
5.2 Time, Date & Place for Next Town Council Regular or Special Meeting A. Regular Meeting - February 24, 2026 - Council Chambers Regular Session at 6:30pm
6. Town Council Consent Agenda
David Dencker, Apple Valley, commented on Agenda Item 6.2, regarding the Commercial Warrants and Wire Transfer Schedules. He spoke of what he believed was a misuse of public funds.
Thomas Rice, Town Attorney, noted for the record that the use of town funds for a retirement party or employee holiday party was not an unlawful gift of funds. He stated that it was a legitimate purpose. He noted that boosting employee morale and rewarding dedicated service was a good use of public funds and also employee retention.
Motion by: Mayor Pro Tem Leon
Seconded by: Council Member Bishop
To approve the Consent Calendar items numbered 6.1 to 6.3 as recommended.
Yes (4): Mayor Nassif, Mayor Pro Tem Leon, Council Member Bishop, and Council Member Emick.
Absent (1): Council Member Cusack
Carried (4 to 1)
TC MINUTES FEBRUARY 10, 2026
4 6.1 APPROVAL OF MINUTES
That the Town Council approve the subject minutes as part of the consent agenda.
6.2 JANUARY 2026 COMMERCIAL WARRANT AND WIRE TRANSFER
SCHEDULES
That the Town Council receive, ratify, and file the Commercial Warrants and Wire Transfer Schedules as presented.
6.3 JANUARY 2026 PAYROLL/BENEFITS WARRANTS SCHEDULE
That the Town Council receive, ratify and file the payroll/benefits warrants as presented.
7. Public Hearings
8. Business of the Council
9. Reports, Requests and Communications
10. Town Manager’s Comments & Legislative Update
Todd Bodem, Town Manager, provided an update on the Buffalo Trading Post Project. He also commented on upcoming events in the Town of Apple Valley.
11. Closed Session
12. Adjournment
Motion by: Council Member Bishop
Seconded by: Council Member Emick
To adjourn the meeting of the Apple Valley Town Council at 8:01 p.m. in memory of John Blanco and Deputy Sheriff Grant Ward.
Unanimously Carried
________________________________
Scott Nassif, Mayor
________________________________
La Vonda M-Pearson, Town Clerk
Apple Valley Special Council
MINUTES
February 18, 2026, 10:00 a.m.
Singh Center for the Arts
Members Present: Mayor Scott Nassif
Mayor Pro Tem Kari Leon
Council Member Art Bishop
Council Member Larry Cusack
Council Member Curt Emick
_____________________________________________________________________
1. Call To Order
Mayor Nassif called to order the Special Meeting of the Apple Valley Town Council at 10:04 a.m.
1. Roll Call
2. Pledge of Allegiance
The Pledge of Allegiance was led by Council Member Emick.
2. Public Comments
None.
3. Recess
1. Town Council to recess for the State of the Town Address Motion by: Council Member Emick
Seconded by: Council Member Cusack
To recess the meeting of the Apple Valley Town Council at 10:06 a.m.
Carried Unanimously
2. Town Council to reconvene the Special Meeting of the Apple Valley Town Council
Mayor Nassif reconvened the meeting of the Apple Valley Town Council at 11:51 a.m.
SP TC MINUTES FEBRUARY 18, 2026
2 4. Adjournment
Motion by: Council Member Emick
Seconded by: Council Member Bishop
To adjourn the Special Meeting of the Apple Valley Town Council at 11:51 a.m.
Carried Unanimously
Scott Nassif, Mayor La Vonda M-Pearson, Town Clerk
Apple Valley Special Council
MINUTES
February 18, 2026, 5:00 p.m.
Singh Center for the Arts
Members Present: Mayor Scott Nassif
Mayor Pro Tem Kari Leon
Council Member Art Bishop
Council Member Larry Cusack
Council Member Curt Emick
_____________________________________________________________________
1. Call To Order
Mayor Nassif called to order the Special Meeting of the Apple Valley Town Council at 5:00 p.m.
1. Roll Call
2. Pledge of Allegiance
The Pledge of Allegiance was led by Mayor Pro Tem Leon.
2. Public Comments
None.
3. Recess
1. Town Council to recess for the State of the Town Address Motion by: Council Member Cusack
Seconded by: Mayor Pro Tem Leon
To recess the meeting of the Apple Valley Town Council at 5:01 p.m.
Carried Unanimously
2. Town Council to reconvene the Special Meeting of the Apple Valley Town Council
Mayor Nassif reconvened the meeting of the Apple Valley Town Council at
SP TC MINUTES FEBRUARY 181, 2026
2 4. Adjournment
Motion by: Council Member Emick
Seconded by: Council Member Bishop
To adjourn the Special Meeting of the Apple Valley Town Council at 6:53 p.m.
Carried Unanimously
Scott Nassif, Mayor Kiel Mangerino, Assistant Town Clerk
Town Council Agenda Report
Date: February 24, 2026
To: Honorable Mayor and Town Council
Subject: APPROVE PURCHASE OF 2026 PETERBILT 548 DUMP TRUCK From: Todd Bodem, Town Manager
Submitted by: Guy Eisenbrey, Assistant Town Manager
Public Works Division
Budgeted Item: Yes No N/A
RECOMMENDED ACTION
Approve the purchase of a 2026 Peterbilt 548 dump truck from Rush Truck Centers for $258,387.00.
BACKGROUND
The Town does not currently have a dump truck in its fleet, and the Street Maintenance Division is often required to rely on contractors and trucking brokers to transport bulk materials. During emergency conditions, such as those experienced during recent storms, the Town must also be able to respond promptly to remove or replace bulk materials in the public right-of-way and Town-maintained streets in order to protect public safety and critical infrastructure. Additionally, the dump truck can be used to deliver large amounts of asphalt material for the purposes of repairing areas of the roadway that would typically have to wait for a more substantial repaving project. To expand and further improve the Town’s operational capacity and improve response times, staff recommends the purchase of a dump truck to be added to the municipal fleet.
ANALYSIS
Rush Truck Centers has provided a quote through the Sourcewell cooperative purchasing program (Contract# 032824) for the total amount of $258,387.00. Utilization of this cooperative purchasing program allows the Town to obtain competitively bid pricing without the need to conduct a separate procurement process.
FISCAL IMPACT
Funds for this purchase are included in the approved FY 2025-26 Street Maintenance Division budget under account code 20105031-750010.
ATTACHMENTS
A. Quote from Rush Truck Centers
B. Sourcewell Peterbilt Dealer Quote
C. Sourcewell Contract
Customer Proposal Letter
Signature Printed Name Date
Signature Printed Name / Title Date
Signature Printed Name Date
Note: The above Customer Proposal is a quotation only. Sale terms subject to approval of Sales Manager of Dealer.
DISCLAIMER: Any order based on this Proposal is subject to Customer executing Dealer’s standard form Retail Sales Order and other required documents incorporating the above terms. Any documentary fees, FET, state tax, title, registration and license fees subject to adjustment and change. This Proposal is based upon Dealer’s current and expected inventory, which is subject to change. Dealer is not obligated to retain any specific vehicles in stock, nor maintain any specific inventory levels. Dealer shall not be obligated to fulfill Proposal in event quoted vehicle(s) is not in stock or available within requested delivery schedule. Manufacturer has reserved the right to change the price to Dealer of any vehicle not currently in Dealer’s stock, without notice to Dealer. If a vehicle identified in this Proposal is not currently in Rush’s stock at the time an order is placed by the Customer, Dealer reserves the right to change the vehicle price at any time to reflect any price increases imposed by the Manufacturer. Dealer shall not be liable for any delay in providing or inability to provide Quoted Vehicle(s). Above listed Trade Value based upon current appraisal of Trade Vehicle(s). Dealer may adjust Trade Value of Trade Vehicle(s) to reflect changes in condition and/or mileage of Trade Vehicle(s) between date of current appraisal and acceptance of the Trade Vehicle by Customer. (1) Includes subscription period for # of specified months. (2) Customer’s use of RushCare Service is governed by the RushCare User Agreement located at https://www.rushtruckcenters.com/rushcareuseragreement. (3) Customer’s use of Telematics Services is governed by separate 3rd party license terms and Rush is not liable for the Telematic Service. (4) Gap Coverage is provided and administered by an independent 3rd party provider under a separate contract directly between Customer and the 3 rd party
provider.
$ 228,350.40 $ 228,350.40 $ 0.00 $ 3,299.00 $ 3,299.00 $ 231,649.40 $ 231,649.40 8830 E Slauson Ave.
Pico Rivera, CA 90660
562-566-1800 Rush Truck Center, Los Angeles
Town of Apple Valley
14955 Dale Evans Pkwy
Apple Valley, CA 92307 2026 Peterbilt 548 TBD TBD $ 2,936.00 $ 2,936.00 $ 20,834.60 $ 20,834.60 $ 80.00 $ 80.00 $ 37.00 $ 2,600.00 $ 2,600.00 $ 250.00 $ 250.00 $ 258,387.00 $ 258,387.00 2/28/2026 Adam Samarin Additional Products Documentary Fee Electronic Filing RushCare Service Subscription Administration Fee $ 37.00 $ 258,387.00 $ 258,387.00 (1)(2) 12 months Additional Vehicle Details: Sourcewell contract number (032824) Thank you for trusting us with your business. Please review the proposal below, and if you approve, sign and return to us at your convenience. We look forward to working with you and will continue to do our best to earn your trust now and in the future. VEHICLE INFORMATION Year Make Model Stock # Serial # Quantity Truck Price per Unit F.E.T. (Factory & Dealer Paid) Net Sales Price Optional Extended Warranty(ies) State Sales Tax Total Total Sales Price Trade Allowance (see DISCLAIMER Below) Deposit / Down Payment Unpaid Balance Due on Delivery Sales Representative Purchaser Accepted by Sales Manager
or General Manager Quote good until
INSERT NOTES: Total price for all sourced goods above includes: Peterbilt fees/surcharges, freight to dealership, freight to body upfitter, freight to customer for delivery, cab upfits (safety items), admin fees, documentation fees, SmartLINQ for 5 years, CARB warranty, 2 yr towing warranty, flooring, and dealer pack. Delivery windown depends upon receipt of PO. If PO is issued and received prior to 2/28/26 the truck delivery should take place prior to 9/30/26 (assuming no factory constraints).
BODY PRICE (IF APPLICABLE) $40,300
HEAVY-DUTY
520 - 520EV - 567 - 579 -
579EV - 589
25.00% TOTAL PRICE FOR CAB & CHASSIS AND ALL SOURCED
GOODS/SERVICES AND APPLICABLE TAXES AND
FLOORING
$258,387
SOURCEWELL DISCOUNT % 15.00% 220/220EV 5.00%
SOURCEWELL DISCOUNT $ $29,729
MEDIUM-DUTY
535 - 536 - 537 - 548 15.00%
SOURCEWELL CAB & CHASSIS PRICE $168,466
ADDITIONAL DEALER DISCOUNT $0
Account# 26969
SOURCEWELL PETERBILT DEALER QUOTE/INVOICE TEMPLATE 2024 REVISION TOTAL PRICE FOR ALL SOURCED GOODS/SERVICES and
APPLICABLE TAXES, FET, FLOORING, ETC.
$49,621
PETERBILT MODEL 548
PETERBILT MOTORS COMPANY SOURCEWELL CONTRACT # 032824
*DEALER TO FILL IN ALL GREY CELLS
Rush Truck Center
Town of Apple Valley
CHASSIS # Chassis # TBD
CAB & CHASSIS LIST PRICE $198,195 PETERBILT MODEL SOURCEWELL DISCOUNT
032824-PMC
Rev. 3/2022 1
Solicitation Number: RFP #032824
CONTRACT
This Contract is between Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 (Sourcewell) and Peterbilt Motors Company, 1700 Woodbrook Street, Denton, TX 76205 (Supplier).
Sourcewell is a State of Minnesota local government unit and service cooperative created under the laws of the State of Minnesota (Minnesota Statutes Section 123A.21) that offers cooperative procurement solutions to government entities. Participation is open to eligible federal, state/province, and municipal governmental entities, higher education, K-12 education, nonprofit, tribal government, and other public entities located in the United States and Canada.
Sourcewell issued a public solicitation for Class 4-8 Chassis and Cabs with Related Equipment, Accessories, and Services from which Supplier was awarded a contract.
Supplier desires to contract with Sourcewell to provide equipment, products, or services to Sourcewell and the entities that access Sourcewell’s cooperative purchasing contracts (Participating Entities).
1. TERM OF CONTRACT
A. EFFECTIVE DATE. This Contract is effective upon the date of the final signature below.
EXPIRATION DATE AND EXTENSION. This Contract expires July 9, 2028, unless it is cancelled sooner pursuant to Article 22. This Contract allows up to three additional one-year extensions upon the request of Sourcewell and written agreement by Supplier. Sourcewell retains the right to consider additional extensions beyond seven years as required under exceptional circumstances.
B. SURVIVAL OF TERMS. Notwithstanding any expiration or termination of this Contract, all payment obligations incurred prior to expiration or termination will survive, as will the following: Articles 11 through 14 survive the expiration or cancellation of this Contract. All other rights will cease upon expiration or termination of this Contract.
2. EQUIPMENT, PRODUCTS, OR SERVICES
DocuSign Envelope ID: 9BB83347-9852-442D-ABE7-863BAFA32866
032824-PMC
Rev. 3/2022 2
A. EQUIPMENT, PRODUCTS, OR SERVICES. Supplier will provide the Equipment, Products, or Services as stated in its Proposal submitted under the Solicitation Number listed above.
Supplier’s Equipment, Products, or Services Proposal (Proposal) is attached and incorporated into this Contract.
All Equipment and Products provided under this Contract must be new and the current model.
Supplier may offer close-out or refurbished Equipment or Products if they are clearly indicated in Supplier’s product and pricing list. Unless agreed to by the Participating Entities in advance, Equipment or Products must be delivered as operational to the Participating Entity’s site.
This Contract offers an indefinite quantity of sales, and while substantial volume is anticipated, sales and sales volume are not guaranteed.
B. WARRANTY. Supplier warrants that all Equipment, Products, and Services furnished are free from liens and encumbrances, and are free from defects in design, materials, and workmanship.
In addition, Supplier warrants the Equipment, Products, and Services are suitable for and will perform in accordance with the ordinary use for which they are intended. Supplier’s dealers and distributors must agree to assist the Participating Entity in reaching a resolution in any dispute over warranty terms with the manufacturer. Any manufacturer’s warranty that extends beyond the expiration of the Supplier’s warranty will be passed on to the Participating Entity.
C. DEALERS, DISTRIBUTORS, AND/OR RESELLERS. Upon Contract execution and throughout the Contract term, Supplier must provide to Sourcewell a current means to validate or authenticate Supplier’s authorized dealers, distributors, or resellers relative to the Equipment, Products, and Services offered under this Contract, which will be incorporated into this Contract by reference. It is the Supplier’s responsibility to ensure Sourcewell receives the most current information.
3. PRICING
All Equipment, Products, or Services under this Contract will be priced at or below the price stated in Supplier’s Proposal.
When providing pricing quotes to Participating Entities, all pricing quoted must reflect a Participating Entity’s total cost of acquisition. This means that the quoted cost is for delivered Equipment, Products, and Services that are operational for their intended purpose, and includes all costs to the Participating Entity’s requested delivery location.
Regardless of the payment method chosen by the Participating Entity, the total cost associated with any purchase option of the Equipment, Products, or Services must always be disclosed in the pricing quote to the applicable Participating Entity at the time of purchase.
DocuSign Envelope ID: 9BB83347-9852-442D-ABE7-863BAFA32866
032824-PMC
Rev. 3/2022 3
A. SHIPPING AND SHIPPING COSTS. All delivered Equipment and Products must be properly packaged. Damaged Equipment and Products may be rejected. If the damage is not readily apparent at the time of delivery, Supplier must permit the Equipment and Products to be returned within a reasonable time at no cost to Sourcewell or its Participating Entities.
Participating Entities reserve the right to inspect the Equipment and Products at a reasonable time after delivery where circumstances or conditions prevent effective inspection of the Equipment and Products at the time of delivery. In the event of the delivery of nonconforming Equipment and Products, the Participating Entity will notify the Supplier as soon as possible and the Supplier will replace nonconforming Equipment and Products with conforming Equipment and Products that are acceptable to the Participating Entity.
Supplier must arrange for and pay for the return shipment on Equipment and Products that arrive in a defective or inoperable condition.
Sourcewell may declare the Supplier in breach of this Contract if the Supplier intentionally delivers substandard or inferior Equipment or Products.
B. SALES TAX. Each Participating Entity is responsible for supplying the Supplier with valid taxexemption certification(s). When ordering, a Participating Entity must indicate if it is a taxexempt entity.
C. HOT LIST PRICING. At any time during this Contract, Supplier may offer a specific selection of Equipment, Products, or Services at discounts greater than those listed in the Contract.
When Supplier determines it will offer Hot List Pricing, it must be submitted electronically to Sourcewell in a line-item format. Equipment, Products, or Services may be added or removed from the Hot List at any time through a Sourcewell Price and Product Change Form as defined in Article 4 below.
Hot List program and pricing may also be used to discount and liquidate close-out and discontinued Equipment and Products as long as those close-out and discontinued items are clearly identified as such. Current ordering process and administrative fees apply. Hot List Pricing must be published and made available to all Participating Entities.
4. PRODUCT AND PRICING CHANGE REQUESTS
Supplier may request Equipment, Product, or Service changes, additions, or deletions at any time. All requests must be made in writing by submitting a signed Sourcewell Price and Product Change Request Form to the assigned Sourcewell Supplier Development Administrator. This approved form is available from the assigned Sourcewell Supplier Development Administrator.
At a minimum, the request must:
• Identify the applicable Sourcewell contract number;
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• Clearly specify the requested change;
• Provide sufficient detail to justify the requested change; • Individually list all Equipment, Products, or Services affected by the requested change, along with the requested change (e.g., addition, deletion, price change); and • Include a complete restatement of pricing documentation in Microsoft Excel with the effective date of the modified pricing, or product addition or deletion. The new pricing restatement must include all Equipment, Products, and Services offered, even for those items where pricing remains unchanged.
A fully executed Sourcewell Price and Product Change Request Form will become an amendment to this Contract and will be incorporated by reference.
5. PARTICIPATION, CONTRACT ACCESS, AND PARTICIPATING ENTITY REQUIREMENTS A. PARTICIPATION. Sourcewell’s cooperative contracts are available and open to public and nonprofit entities across the United States and Canada; such as federal, state/province, municipal, K-12 and higher education, tribal government, and other public entities.
The benefits of this Contract should be available to all Participating Entities that can legally access the Equipment, Products, or Services under this Contract. A Participating Entity’s authority to access this Contract is determined through its cooperative purchasing, interlocal, or joint powers laws. Any entity accessing benefits of this Contract will be considered a Service Member of Sourcewell during such time of access. Supplier understands that a Participating Entity’s use of this Contract is at the Participating Entity’s sole convenience and Participating Entities reserve the right to obtain like Equipment, Products, or Services from any other source.
Supplier is responsible for familiarizing its sales and service forces with Sourcewell contract use eligibility requirements and documentation and will encourage potential participating entities to join Sourcewell. Sourcewell reserves the right to add and remove Participating Entities to its roster during the term of this Contract.
B. PUBLIC FACILITIES. Supplier’s employees may be required to perform work at governmentowned facilities, including schools. Supplier’s employees and agents must conduct themselves in a professional manner while on the premises, and in accordance with Participating Entity policies and procedures, and all applicable laws.
6. PARTICIPATING ENTITY USE AND PURCHASING
A. ORDERS AND PAYMENT. To access the contracted Equipment, Products, or Services under this Contract, a Participating Entity must clearly indicate to Supplier that it intends to access this Contract; however, order flow and procedure will be developed jointly between Sourcewell and Supplier. Typically, a Participating Entity will issue an order directly to Supplier or its authorized DocuSign Envelope ID: 9BB83347-9852-442D-ABE7-863BAFA32866
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subsidiary, distributor, dealer, or reseller. If a Participating Entity issues a purchase order, it may use its own forms, but the purchase order should clearly note the applicable Sourcewell contract number. All Participating Entity orders under this Contract must be issued prior to expiration or cancellation of this Contract; however, Supplier performance, Participating Entity payment obligations, and any applicable warranty periods or other Supplier or Participating Entity obligations may extend beyond the term of this Contract.
Supplier’s acceptable forms of payment are included in its attached Proposal. Participating Entities will be solely responsible for payment and Sourcewell will have no liability for any unpaid invoice of any Participating Entity.
B. ADDITIONAL TERMS AND CONDITIONS/PARTICIPATING ADDENDUM. Additional terms and conditions to a purchase order, or other required transaction documentation, may be negotiated between a Participating Entity and Supplier, such as job or industry-specific requirements, legal requirements (e.g., affirmative action or immigration status requirements), or specific local policy requirements. Some Participating Entities may require the use of a Participating Addendum, the terms of which will be negotiated directly between the Participating Entity and the Supplier or its authorized dealers, distributors, or resellers, as applicable. Any negotiated additional terms and conditions must never be less favorable to the Participating Entity than what is contained in this Contract.
C. SPECIALIZED SERVICE REQUIREMENTS. In the event that the Participating Entity requires service or specialized performance requirements not addressed in this Contract (such as ecommerce specifications, specialized delivery requirements, or other specifications and requirements), the Participating Entity and the Supplier may enter into a separate, standalone agreement, apart from this Contract. Sourcewell, including its agents and employees, will not be made a party to a claim for breach of such agreement.
D. TERMINATION OF ORDERS. Participating Entities may terminate an order, in whole or in part, immediately upon notice to Supplier in the event of any of the following events:
1. The Participating Entity fails to receive funding or appropriation from its governing body at levels sufficient to pay for the equipment, products, or services to be purchased; or
2. Federal, state, or provincial laws or regulations prohibit the purchase or change the Participating Entity’s requirements.
E. GOVERNING LAW AND VENUE. The governing law and venue for any action related to a Participating Entity’s order will be determined by the Participating Entity making the purchase.
7. CUSTOMER SERVICE
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A. PRIMARY ACCOUNT REPRESENTATIVE. Supplier will assign an Account Representative to Sourcewell for this Contract and must provide prompt notice to Sourcewell if that person is changed. The Account Representative will be responsible for:
• Maintenance and management of this Contract;
• Timely response to all Sourcewell and Participating Entity inquiries; and • Business reviews to Sourcewell and Participating Entities, if applicable.
B. BUSINESS REVIEWS. Supplier must perform a minimum of one business review with Sourcewell per contract year. The business review will cover sales to Participating Entities, pricing and contract terms, administrative fees, sales data reports, performance issues, supply issues, customer issues, and any other necessary information.
8. REPORT ON CONTRACT SALES ACTIVITY AND ADMINISTRATIVE FEE PAYMENT A. CONTRACT SALES ACTIVITY REPORT. Each calendar quarter, Supplier must provide a contract sales activity report (Report) to the Sourcewell Supplier Development Administrator assigned to this Contract. Reports are due no later than 45 days after the end of each calendar quarter. A Report must be provided regardless of the number or amount of sales during that quarter (i.e., if there are no sales, Supplier must submit a report indicating no sales were made).
The Report must contain the following fields:
• Participating Entity Name (e.g., City of Staples Highway Department); • Participating Entity Physical Street Address;
• Participating Entity City;
• Participating Entity State/Province;
• Participating Entity Zip/Postal Code;
• Participating Entity Contact Name;
• Participating Entity Contact Email Address;
• Participating Entity Contact Telephone Number;
• Sourcewell Assigned Entity/Participating Entity Number; • Item Purchased Description;
• Item Purchased Price;
• Sourcewell Administrative Fee Applied; and
• Date Purchase was invoiced/sale was recognized as revenue by Supplier.
B. ADMINISTRATIVE FEE. In consideration for the support and services provided by Sourcewell, the Supplier will pay an administrative fee to Sourcewell on all Equipment, Products, and Services provided to Participating Entities. The Administrative Fee must be included in, and not added to, the pricing. Supplier may not charge Participating Entities more than the contracted DocuSign Envelope ID: 9BB83347-9852-442D-ABE7-863BAFA32866
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price to offset the Administrative Fee.
The Supplier will submit payment to Sourcewell for the percentage of administrative fee stated in the Proposal multiplied by the total sales of all Equipment, Products, and Services purchased by Participating Entities under this Contract during each calendar quarter. Payments should note the Supplier’s name and Sourcewell-assigned contract number in the memo; and must be mailed to the address above “Attn: Accounts Receivable” or remitted electronically to Sourcewell’s banking institution per Sourcewell’s Finance department instructions. Payments must be received no later than 45 calendar days after the end of each calendar quarter.
Supplier agrees to cooperate with Sourcewell in auditing transactions under this Contract to ensure that the administrative fee is paid on all items purchased under this Contract.
In the event the Supplier is delinquent in any undisputed administrative fees, Sourcewell reserves the right to cancel this Contract and reject any proposal submitted by the Supplier in any subsequent solicitation. In the event this Contract is cancelled by either party prior to the Contract’s expiration date, the administrative fee payment will be due no more than 30 days from the cancellation date.
9. AUTHORIZED REPRESENTATIVE
Sourcewell's Authorized Representative is its Chief Procurement Officer.
Supplier’s Authorized Representative is the person named in the Supplier’s Proposal. If Supplier’s Authorized Representative changes at any time during this Contract, Supplier must promptly notify Sourcewell in writing.
10. AUDIT, ASSIGNMENT, AMENDMENTS, WAIVER, AND CONTRACT COMPLETE A. AUDIT. Pursuant to Minnesota Statutes Section 16C.05, subdivision 5, the books, records, documents, and accounting procedures and practices relevant to this Contract are subject to examination by Sourcewell or the Minnesota State Auditor for a minimum of six years from the end of this Contract. This clause extends to Participating Entities as it relates to business conducted by that Participating Entity under this Contract.
B. ASSIGNMENT. Neither party may assign or otherwise transfer its rights or obligations under this Contract without the prior written consent of the other party and a fully executed assignment agreement. Such consent will not be unreasonably withheld. Any prohibited assignment will be invalid.
C. AMENDMENTS. Any amendment to this Contract must be in writing and will not be effective until it has been duly executed by the parties.
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D. WAIVER. Failure by either party to take action or assert any right under this Contract will not be deemed a waiver of such right in the event of the continuation or repetition of the circumstances giving rise to such right. Any such waiver must be in writing and signed by the parties.
E. CONTRACT COMPLETE. This Contract represents the complete agreement between the parties. No other understanding regarding this Contract, whether written or oral, may be used to bind either party. For any conflict between the attached Proposal and the terms set out in Articles 1-22 of this Contract, the terms of Articles 1-22 will govern.
F. RELATIONSHIP OF THE PARTIES. The relationship of the parties is one of independent contractors, each free to exercise judgment and discretion with regard to the conduct of their respective businesses. This Contract does not create a partnership, joint venture, or any other relationship such as master-servant, or principal-agent.
11. INDEMNITY AND HOLD HARMLESS
Supplier must indemnify, defend, save, and hold Sourcewell and its Participating Entities, including their agents and employees, harmless from any claims or causes of action, including attorneys’ fees incurred by Sourcewell or its Participating Entities, arising out of any act or omission in the performance of this Contract by the Supplier or its agents or employees; this indemnification includes injury or death to person(s) or property alleged to have been caused by some defect in the Equipment, Products, or Services under this Contract to the extent the Equipment, Product, or Service has been used according to its specifications. Sourcewell’s responsibility will be governed by the State of Minnesota’s Tort Liability Act (Minnesota Statutes Chapter 466) and other applicable law.
12. GOVERNMENT DATA PRACTICES
Supplier and Sourcewell must comply with the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, as it applies to all data provided by or provided to Sourcewell under this Contract and as it applies to all data created, collected, received, maintained, or disseminated by the Supplier under this Contract.
13. INTELLECTUAL PROPERTY, PUBLICITY, MARKETING, AND ENDORSEMENT A. INTELLECTUAL PROPERTY
1. Grant of License. During the term of this Contract:
a. Sourcewell grants to Supplier a royalty-free, worldwide, non-exclusive right and license to use the trademark(s) provided to Supplier by Sourcewell in advertising and promotional materials for the purpose of marketing Sourcewell’s relationship with Supplier.
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b. Supplier grants to Sourcewell a royalty-free, worldwide, non-exclusive right and license to use Supplier’s trademarks in advertising and promotional materials for the purpose of marketing Supplier’s relationship with Sourcewell.
2. Limited Right of Sublicense. The right and license granted herein includes a limited right of each party to grant sublicenses to their respective subsidiaries, distributors, dealers, resellers, marketing representatives, and agents (collectively “Permitted Sublicensees”) in advertising and promotional materials for the purpose of marketing the Parties’ relationship to Participating Entities. Any sublicense granted will be subject to the terms and conditions of this Article. Each party will be responsible for any breach of this Article by any of their respective sublicensees.
3. Use; Quality Control.
a. Neither party may alter the other party’s trademarks from the form provided and must comply with removal requests as to specific uses of its trademarks or logos.
b. Each party agrees to use, and to cause its Permitted Sublicensees to use, the other party’s trademarks only in good faith and in a dignified manner consistent with such party’s use of the trademarks. Upon written notice to the breaching party, the breaching party has 30 days of the date of the written notice to cure the breach or the license will be terminated.
4. Termination. Upon the termination of this Contract for any reason, each party, including Permitted Sublicensees, will have 30 days to remove all Trademarks from signage, websites, and the like bearing the other party’s name or logo (excepting Sourcewell’s pre-printed catalog of suppliers which may be used until the next printing). Supplier must return all marketing and promotional materials, including signage, provided by Sourcewell, or dispose of it according to Sourcewell’s written directions.
B. PUBLICITY. Any publicity regarding the subject matter of this Contract must not be released without prior written approval from the Authorized Representatives. Publicity includes notices, informational pamphlets, press releases, research, reports, signs, and similar public notices prepared by or for the Supplier individually or jointly with others, or any subcontractors, with respect to the program, publications, or services provided resulting from this Contract.
C. MARKETING. Any direct advertising, marketing, or offers with Participating Entities must be approved by Sourcewell. Send all approval requests to the Sourcewell Supplier Development Administrator assigned to this Contract.
D. ENDORSEMENT. The Supplier must not claim that Sourcewell endorses its Equipment, Products, or Services.
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14. GOVERNING LAW, JURISDICTION, AND VENUE
The substantive and procedural laws of the State of Minnesota will govern this Contract. Venue for all legal proceedings arising out of this Contract, or its breach, must be in the appropriate state court in Todd County, Minnesota or federal court in Fergus Falls, Minnesota.
15. FORCE MAJEURE
Neither party to this Contract will be held responsible for delay or default caused by acts of God or other conditions that are beyond that party’s reasonable control. A party defaulting under this provision must provide the other party prompt written notice of the default.
16. SEVERABILITY
If any provision of this Contract is found by a court of competent jurisdiction to be illegal, unenforceable, or void then both parties will be relieved from all obligations arising from that provision. If the remainder of this Contract is capable of being performed, it will not be affected by such determination or finding and must be fully performed.
17. PERFORMANCE, DEFAULT, AND REMEDIES
A. PERFORMANCE. During the term of this Contract, the parties will monitor performance and address unresolved contract issues as follows:
1. Notification. The parties must promptly notify each other of any known dispute and work in good faith to resolve such dispute within a reasonable period of time. If necessary, Sourcewell and the Supplier will jointly develop a short briefing document that describes the issue(s), relevant impact, and positions of both parties.
2. Escalation. If parties are unable to resolve the issue in a timely manner, as specified above, either Sourcewell or Supplier may escalate the resolution of the issue to a higher level of management. The Supplier will have 30 calendar days to cure an outstanding issue.
3. Performance while Dispute is Pending. Notwithstanding the existence of a dispute, the Supplier must continue without delay to carry out all of its responsibilities under the Contract that are not affected by the dispute. If the Supplier fails to continue without delay to perform its responsibilities under the Contract, in the accomplishment of all undisputed work, the Supplier will bear any additional costs incurred by Sourcewell and/or its Participating Entities as a result of such failure to proceed.
B. DEFAULT AND REMEDIES. Either of the following constitutes cause to declare this Contract, or any Participating Entity order under this Contract, in default:
1. Nonperformance of contractual requirements, or
2. A material breach of any term or condition of this Contract.
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The party claiming default must provide written notice of the default, with 30 calendar days to cure the default. Time allowed for cure will not diminish or eliminate any liability for liquidated or other damages. If the default remains after the opportunity for cure, the non-defaulting party may:
• Exercise any remedy provided by law or equity, or
• Terminate the Contract or any portion thereof, including any orders issued against the Contract.
18. INSURANCE
A. REQUIREMENTS. At its own expense, Supplier must maintain insurance policy(ies) in effect at all times during the performance of this Contract with insurance company(ies) licensed or authorized to do business in the State of Minnesota having an “AM BEST” rating of A- or better, with coverage and limits of insurance not less than the following:
1. Workers’ Compensation and Employer’s Liability.
Workers’ Compensation: As required by any applicable law or regulation.
Employer's Liability Insurance: must be provided in amounts not less than listed below:
Minimum limits:
$500,000 each accident for bodily injury by accident
$500,000 policy limit for bodily injury by disease
$500,000 each employee for bodily injury by disease
2. Commercial General Liability Insurance. Supplier will maintain insurance covering its operations, with coverage on an occurrence basis, and must be subject to terms no less broad than the Insurance Services Office (“ISO”) Commercial General Liability Form CG0001 (2001 or newer edition), or equivalent. At a minimum, coverage must include liability arising from premises, operations, bodily injury and property damage, independent contractors, products-completed operations including construction defect, contractual liability, blanket contractual liability, and personal injury and advertising injury. All required limits, terms and conditions of coverage must be maintained during the term of this Contract.
Minimum Limits:
$1,000,000 each occurrence Bodily Injury and Property Damage $1,000,000 Personal and Advertising Injury
$2,000,000 aggregate for products liability-completed operations $2,000,000 general aggregate
3. Commercial Automobile Liability Insurance. During the term of this Contract, Supplier will maintain insurance covering all owned, hired, and non-owned automobiles in limits of liability not less than indicated below. The coverage must be subject to terms DocuSign Envelope ID: 9BB83347-9852-442D-ABE7-863BAFA32866
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no less broad than ISO Business Auto Coverage Form CA 0001 (2010 edition or newer), or equivalent.
Minimum Limits:
$1,000,000 each accident, combined single limit
4. Umbrella Insurance. During the term of this Contract, Supplier will maintain umbrella coverage over Employer’s Liability, Commercial General Liability, and Commercial Automobile.
Minimum Limits:
$2,000,000
5. Professional/Technical, Errors and Omissions, and/or Miscellaneous Professional Liability. During the term of this Contract, Supplier will maintain coverage for all claims the Supplier may become legally obligated to pay resulting from any actual or alleged negligent act, error, or omission related to Supplier’s professional services required under this Contract.
Minimum Limits:
$2,000,000 per claim or event
$2,000,000 – annual aggregate
6. Network Security and Privacy Liability Insurance. During the term of this Contract, Supplier will maintain coverage for network security and privacy liability. The coverage may be endorsed on another form of liability coverage or written on a standalone policy. The insurance must cover claims which may arise from failure of Supplier’s security resulting in, but not limited to, computer attacks, unauthorized access, disclosure of not public data – including but not limited to, confidential or private information, transmission of a computer virus, or denial of service.
Minimum limits:
$2,000,000 per occurrence
$2,000,000 annual aggregate
Failure of Supplier to maintain the required insurance will constitute a material breach entitling Sourcewell to immediately terminate this Contract for default.
B. CERTIFICATES OF INSURANCE. Prior to commencing under this Contract, Supplier must furnish to Sourcewell a certificate of insurance, as evidence of the insurance required under this Contract. Prior to expiration of the policy(ies), renewal certificates must be mailed to Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 or sent to the Sourcewell Supplier Development Administrator assigned to this Contract. The certificates must be signed by a person authorized by the insurer(s) to bind coverage on their behalf.
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Failure to request certificates of insurance by Sourcewell, or failure of Supplier to provide certificates of insurance, in no way limits or relieves Supplier of its duties and responsibilities in this Contract.
C. ADDITIONAL INSURED ENDORSEMENT AND PRIMARY AND NON-CONTRIBUTORY INSURANCE CLAUSE. Supplier agrees to list Sourcewell and its Participating Entities, including their officers, agents, and employees, as an additional insured under the Supplier’s commercial general liability insurance policy with respect to liability arising out of activities, “operations,” or “work” performed by or on behalf of Supplier, and products and completed operations of Supplier. The policy provision(s) or endorsement(s) must further provide that coverage is primary and not excess over or contributory with any other valid, applicable, and collectible insurance or self-insurance in force for the additional insureds.
D. WAIVER OF SUBROGATION. Supplier waives and must require (by endorsement or otherwise) all its insurers to waive subrogation rights against Sourcewell and other additional insureds for losses paid under the insurance policies required by this Contract or other insurance applicable to the Supplier or its subcontractors. The waiver must apply to all deductibles and/or self-insured retentions applicable to the required or any other insurance maintained by the Supplier or its subcontractors. Where permitted by law, Supplier must require similar written express waivers of subrogation and insurance clauses from each of its subcontractors.
E. UMBRELLA/EXCESS LIABILITY/SELF-INSURED RETENTION. The limits required by this Contract can be met by either providing a primary policy or in combination with umbrella/excess liability policy(ies), or self-insured retention.
19. COMPLIANCE
A. LAWS AND REGULATIONS. All Equipment, Products, or Services provided under this Contract must comply fully with applicable federal laws and regulations, and with the laws in the states and provinces in which the Equipment, Products, or Services are sold.
B. LICENSES. Supplier must maintain a valid and current status on all required federal, state/provincial, and local licenses, bonds, and permits required for the operation of the business that the Supplier conducts with Sourcewell and Participating Entities.
20. BANKRUPTCY, DEBARMENT, OR SUSPENSION CERTIFICATION
Supplier certifies and warrants that it is not in bankruptcy or that it has previously disclosed in writing certain information to Sourcewell related to bankruptcy actions. If at any time during this Contract Supplier declares bankruptcy, Supplier must immediately notify Sourcewell in writing.
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Supplier certifies and warrants that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from programs operated by the State of Minnesota; the United States federal government or the Canadian government, as applicable; or any Participating Entity. Supplier certifies and warrants that neither it nor its principals have been convicted of a criminal offense related to the subject matter of this Contract. Supplier further warrants that it will provide immediate written notice to Sourcewell if this certification changes at any time.
21. PROVISIONS FOR NON-UNITED STATES FEDERAL ENTITY PROCUREMENTS UNDER
UNITED STATES FEDERAL AWARDS OR OTHER AWARDS
Participating Entities that use United States federal grant or FEMA funds to purchase goods or services from this Contract may be subject to additional requirements including the procurement standards of the Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, 2 C.F.R. § 200. Participating Entities may have additional requirements based on specific funding source terms or conditions. Within this Article, all references to “federal” should be interpreted to mean the United States federal government.
The following list only applies when a Participating Entity accesses Supplier’s Equipment, Products, or Services with United States federal funds.
A. EQUAL EMPLOYMENT OPPORTUNITY. Except as otherwise provided under 41 C.F.R. § 60, all contracts that meet the definition of “federally assisted construction contract” in 41 C.F.R. § 60-
1.3 must include the equal opportunity clause provided under 41 C.F.R. §60-1.4(b), in accordance with Executive Order 11246, “Equal Employment Opportunity” (30 FR 12319, 12935, 3 C.F.R. §, 1964-1965 Comp., p. 339), as amended by Executive Order 11375, “Amending Executive Order 11246 Relating to Equal Employment Opportunity,” and implementing regulations at 41 C.F.R. § 60, “Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor.” The equal opportunity clause is incorporated herein by reference.
B. DAVIS-BACON ACT, AS AMENDED (40 U.S.C. § 3141-3148). When required by federal program legislation, all prime construction contracts in excess of $2,000 awarded by nonfederal entities must include a provision for compliance with the Davis-Bacon Act (40 U.S.C. § 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 C.F.R. § 5, “Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction”). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non-federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The non-federal entity must report all suspected or reported violations to the federal awarding agency. The contracts must also include a provision for compliance with DocuSign Envelope ID: 9BB83347-9852-442D-ABE7-863BAFA32866
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the Copeland “Anti-Kickback” Act (40 U.S.C. § 3145), as supplemented by Department of Labor regulations (29 C.F.R. § 3, “Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States”). The Act provides that each contractor or subrecipient must be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he or she is otherwise entitled. The non-federal entity must report all suspected or reported violations to the federal awarding agency. Supplier must be in compliance with all applicable Davis-Bacon Act provisions.
C. CONTRACT WORK HOURS AND SAFETY STANDARDS ACT (40 U.S.C. § 3701-3708). Where applicable, all contracts awarded by the non-federal entity in excess of $100,000 that involve the employment of mechanics or laborers must include a provision for compliance with 40 U.S.C. §§ 3702 and 3704, as supplemented by Department of Labor regulations (29 C.F.R. § 5).
Under 40 U.S.C. § 3702 of the Act, each contractor must be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than one and a half times the basic rate of pay for all hours worked in excess of 40 hours in the work week. The requirements of 40 U.S.C. § 3704 are applicable to construction work and provide that no laborer or mechanic must be required to work in surroundings or under working conditions which are unsanitary, hazardous or dangerous. These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence. This provision is hereby incorporated by reference into this Contract. Supplier certifies that during the term of an award for all contracts by Sourcewell resulting from this procurement process, Supplier must comply with applicable requirements as referenced above.
D. RIGHTS TO INVENTIONS MADE UNDER A CONTRACT OR AGREEMENT. If the federal award meets the definition of “funding agreement” under 37 C.F.R. § 401.2(a) and the recipient or subrecipient wishes to enter into a contract with a small business firm or nonprofit organization regarding the substitution of parties, assignment or performance of experimental, developmental, or research work under that “funding agreement,” the recipient or subrecipient must comply with the requirements of 37 C.F.R. § 401, “Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements,” and any implementing regulations issued by the awarding agency. Supplier certifies that during the term of an award for all contracts by Sourcewell resulting from this procurement process, Supplier must comply with applicable requirements as referenced above.
E. CLEAN AIR ACT (42 U.S.C. § 7401-7671Q.) AND THE FEDERAL WATER POLLUTION CONTROL ACT (33 U.S.C. § 1251-1387). Contracts and subgrants of amounts in excess of $150,000 require the non-federal award to agree to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. § 7401- 7671q) and the Federal Water Pollution Control Act as amended (33 U.S.C. § 1251- 1387). Violations must be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency (EPA).
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Supplier certifies that during the term of this Contract will comply with applicable requirements as referenced above.
F. DEBARMENT AND SUSPENSION (EXECUTIVE ORDERS 12549 AND 12689). A contract award (see 2 C.F.R. § 180.220) must not be made to parties listed on the government wide exclusions in the System for Award Management (SAM), in accordance with the OMB guidelines at 2 C.F.R. §180 that implement Executive Orders 12549 (3 C.F.R. § 1986 Comp., p. 189) and 12689 (3 C.F.R. § 1989 Comp., p. 235), “Debarment and Suspension.” SAM Exclusions contains the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive Order 12549. Supplier certifies that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation by any federal department or agency.
G. BYRD ANTI-LOBBYING AMENDMENT, AS AMENDED (31 U.S.C. § 1352). Suppliers must file any required certifications. Suppliers must not have used federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any federal contract, grant, or any other award covered by 31 U.S.C. § 1352. Suppliers must disclose any lobbying with non-federal funds that takes place in connection with obtaining any federal award. Such disclosures are forwarded from tier to tier up to the non-federal award. Suppliers must file all certifications and disclosures required by, and otherwise comply with, the Byrd Anti-Lobbying Amendment (31 U.S.C. § 1352).
H. RECORD RETENTION REQUIREMENTS. To the extent applicable, Supplier must comply with the record retention requirements detailed in 2 C.F.R. § 200.333. The Supplier further certifies that it will retain all records as required by 2 C.F.R. § 200.333 for a period of 3 years after grantees or subgrantees submit final expenditure reports or quarterly or annual financial reports, as applicable, and all other pending matters are closed.
I. ENERGY POLICY AND CONSERVATION ACT COMPLIANCE. To the extent applicable, Supplier must comply with the mandatory standards and policies relating to energy efficiency which are contained in the state energy conservation plan issued in compliance with the Energy Policy and Conservation Act.
J. BUY AMERICAN PROVISIONS COMPLIANCE. To the extent applicable, Supplier must comply with all applicable provisions of the Buy American Act. Purchases made in accordance with the Buy American Act must follow the applicable procurement rules calling for free and open competition.
K. ACCESS TO RECORDS (2 C.F.R. § 200.336). Supplier agrees that duly authorized representatives of a federal agency must have access to any books, documents, papers and DocuSign Envelope ID: 9BB83347-9852-442D-ABE7-863BAFA32866
032824-PMC
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records of Supplier that are directly pertinent to Supplier’s discharge of its obligations under this Contract for the purpose of making audits, examinations, excerpts, and transcriptions. The right also includes timely and reasonable access to Supplier’s personnel for the purpose of interview and discussion relating to such documents.
L. PROCUREMENT OF RECOVERED MATERIALS (2 C.F.R. § 200.322). A non-federal entity that is a state agency or agency of a political subdivision of a state and its contractors must comply with Section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. The requirements of Section 6002 include procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 C.F.R. § 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the value of the quantity acquired during the preceding fiscal year exceeded $10,000; procuring solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines.
M. FEDERAL SEAL(S), LOGOS, AND FLAGS. The Supplier cannot use the seal(s), logos, crests, or reproductions of flags or likenesses of Federal agency officials without specific pre-approval.
N. NO OBLIGATION BY FEDERAL GOVERNMENT. The U.S. federal government is not a party to this Contract or any purchase by a Participating Entity and is not subject to any obligations or liabilities to the Participating Entity, Supplier, or any other party pertaining to any matter resulting from the Contract or any purchase by an authorized user.
O. PROGRAM FRAUD AND FALSE OR FRAUDULENT STATEMENTS OR RELATED ACTS. The Contractor acknowledges that 31 U.S.C. 38 (Administrative Remedies for False Claims and Statements) applies to the Supplier’s actions pertaining to this Contract or any purchase by a Participating Entity.
P. FEDERAL DEBT. The Supplier certifies that it is non-delinquent in its repayment of any federal debt. Examples of relevant debt include delinquent payroll and other taxes, audit disallowance, and benefit overpayments.
Q. CONFLICTS OF INTEREST. The Supplier must notify the U.S. Office of General Services, Sourcewell, and Participating Entity as soon as possible if this Contract or any aspect related to the anticipated work under this Contract raises an actual or potential conflict of interest (as described in 2 C.F.R. Part 200). The Supplier must explain the actual or potential conflict in writing in sufficient detail so that the U.S. Office of General Services, Sourcewell, and Participating Entity are able to assess the actual or potential conflict; and provide any additional information as necessary or requested.
DocuSign Envelope ID: 9BB83347-9852-442D-ABE7-863BAFA32866
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R. U.S. EXECUTIVE ORDER 13224. The Supplier, and its subcontractors, must comply with U.S.
Executive Order 13224 and U.S. Laws that prohibit transactions with and provision of resources and support to individuals and organizations associated with terrorism.
S. PROHIBITION ON CERTAIN TELECOMMUNICATIONS AND VIDEO SURVEILLANCE SERVICES OR EQUIPMENT. To the extent applicable, Supplier certifies that during the term of this Contract it will comply with applicable requirements of 2 C.F.R. § 200.216.
T. DOMESTIC PREFERENCES FOR PROCUREMENTS. To the extent applicable, Supplier certifies that during the term of this Contract will comply with applicable requirements of 2 C.F.R. § 200.322.
22. CANCELLATION
Sourcewell or Supplier may cancel this Contract at any time, with or without cause, upon 60 days’ written notice to the other party. However, Sourcewell may cancel this Contract immediately upon discovery of a material defect in any certification made in Supplier’s Proposal. Cancellation of this Contract does not relieve either party of financial, product, or service obligations incurred or accrued prior to cancellation.
Sourcewell Peterbilt Motors Company
By: __________________________ By: __________________________ Jeremy Schwartz Phill Hall
Title: Chief Procurement Officer Title: National Fleet Sales Manager Date: ________________________ Date: ________________________ DocuSign Envelope ID: 9BB83347-9852-442D-ABE7-863BAFA32866 7/5/2024 | 11:29 PM CDT 7/5/2024 | 2:26 PM CDT
RFP 032824 - Class 4-8 Chassis and Cabs with Related
Equipment, Accessories, and Services
Vendor Details
Company Name: Peterbilt Motors - MD Sales
Does your company conduct
business under any other name? If
yes, please state:
TX
Address:
3200 Airport Road
Denton, TX 76205
Contact: Phillip Hall
Email: [email protected]
Phone: 940-367-5665
Fax: 940-367-5665
HST#:
Submission Details
Created On: Thursday February 08, 2024 08:16:30
Submitted On: Thursday March 28, 2024 09:59:08
Submitted By: Phillip Hall
Email: [email protected]
Transaction #: 7e53e445-46c2-4228-b451-099b1f022cfa
Submitter's IP Address: 71.14.148.40
Bid Number: RFP 032824 Vendor Name: Peterbilt Motors - MD Sales DocuSign Envelope ID: 9BB83347-9852-442D-ABE7-863BAFA32866
Specifications
Table 1: Proposer Identity & Authorized Representatives General Instructions (applies to all Tables) Sourcewell prefers a brief but thorough response to each question. Do not merely attach additional documents to your response without also providing a substantive response. Do not leave answers blank; respond “N/A” if the question does not apply to you (preferably with an explanation).
Line
Item Question Response *
1 Proposer Legal Name (one legal entity only): (In the event of award, will execute the resulting contract as "Supplier") Peterbilt Motors Company *
2 Identify all subsidiary entities of the Proposer whose equipment, products, or services are included in the Proposal.
N/A *
3 Identify all applicable assumed names or DBA names of the Proposer or Proposer's subsidiaries in Line 1 or Line 2 above.
N/A *
4 Provide your CAGE code or Unique Entity Identifier (SAM): 8K065 * 5 Proposer Physical Address: 1700 Woodbrook Street
Denton, Texas 76205
*
6 Proposer website address (or addresses): http://www.peterbilt.com * 7 Proposer's Authorized Representative (name, title, address, email address & phone) (The representative must have authority to sign the “Proposer’s Assurance of Compliance” on behalf of the Proposer and, in the event of award, will be expected to execute the resulting contract):
Phil Hall
National Fleet Sales Manager
1700 Woodbrook Street
Denton, Texas 76205
[email protected]
(940) 591-4006
*
8 Proposer's primary contact for this proposal (name, title, address, email address & phone):
Phil Hall
National Fleet Sales Manager
1700 Woodbrook Street
Denton, Texas 76205
[email protected]
(940) 591-4006
*
9 Proposer's other contacts for this proposal, if any (name, title, address, email address & phone):
Corin Gleason
District Sales Manager
[email protected]
(708)-833-1508
Greg Grabinsky
Vocational Sales Manager
[email protected]
(416) 523-4497
Table 2: Company Information and Financial Strength
Line
Item Question Response *
10 Provide a brief history of your company, including your company’s core values, business philosophy, and industry longevity related to the requested equipment, products or services.
Peterbilt Motors Company was founded in 1939. For 80+ years Peterbilt has been manufacturing Medium-Duty and Heavy-Duty commercial trucks for the U.S. & Canadian Market. We are proud to be American-owned, headquartered in the great state of Texas. Peterbilt operates manufacturing and parts distribution facilities across the U.S. & Canada and has a large independently owned & operated dealer network consisting of 423 locations and adding on average of 25 locations per year. Our trucks are recognized as the most reliable, durable, and highest quality trucks, well suited for the harshest vocational applications that government/municipal fleets operate in on a daily basis.
Peterbilt's four core values:
1) Purposeful Innovation - Provide technologically advanced products and services that deliver outstanding performance and value.
2) Individualized Solutions - Customize every Peterbilt product to meet the unique business needs of the customer, and support the customer with after-sales programs and services tailored to them. 3) Enduring Craftsmanship - Manufacture the industry s most durable and reliable trucks, assembled to the highest quality standards by the industry s proudest employees. 4) Pride & Class - Maintain a passion for unrivaled performance, forged out of the heritage of the iconic brand and focused on inspired styling and a premium driver experience.
Peterbilt's business philosophy
Peterbilt's business philosophy is to produce the highest quality, most durable, reliable trucks on the market that provide our owners with years of dependable and efficient service and therefore the best return on investment.
Peterbilt trucks are designed to last longer than any other truck on the market - on purpose! Peterbilt is the most highly desired truck on the used-truck market for a reason; the trucks are still reliable & dependable and can provide many more years of service. In fact, 94% of Peterbilt trucks in-serviced 20 years ago are STILL being in-serviced now - far better than competing OEMs.
*
11 What are your company’s expectations in the event of an award? Peterbilt has marketed the Sourcewell Program on it's website; both internally and externally. We take every opportunity to advertise our contract with Sourcewell; trade- shows, conventions, expositions, dealer open houses, and dealer training events, etc.
We hold Sourcewell Webinars for our entire dealer network multiple times/year and release Dealer Bulletins to further communicate and promote our contract.
If awarded, we would continue to aggressively promote our Sourcewell contract both internally & externally at events, through training, marketing, social media, etc. Our expectation is that Sourcewell members will continue to utilize the Peterbilt contract in order to secure vehicles that offer class leading reliability, durability, and value. *
Bid Number: RFP 032824 Vendor Name: Peterbilt Motors - MD Sales DocuSign Envelope ID: 9BB83347-9852-442D-ABE7-863BAFA32866
12 Demonstrate your financial strength and stability with meaningful data. This could include such items as financial statements, SEC filings, credit and bond ratings, letters of credit, and detailed reference letters. Upload supporting documents (as applicable) in the document upload section of your response.
Peterbilt is a Division of Paccar, Inc. (www.paccar.com).
PACCAR is a global technology company that designs and manufactures premium quality light, medium and heavy duty commercial vehicles sold worldwide under the Kenworth, Peterbilt and DAF nameplates. PACCAR designs and manufactures diesel engines and other powertrain components for use in its own products and for sale to third party manufacturers of trucks and buses. PACCAR distributes aftermarket truck parts to its dealers through a worldwide network of Parts Distribution Centers. Finance and leasing subsidiaries facilitate the sale of PACCAR products in many countries worldwide. PACCAR maintains exceptionally high standards of quality for all of its products: they are well engineered, highly customized for specific applications and sell in the premium segments of their markets, where they have a reputation for superior performance and pride of ownership PACCAR had an outstanding year in 2022. The company’s revenues of $28.82 billion and net income of $3.01 billion were the highest in the company’s history. The after-tax return on revenue increased to 10.4%. PACCAR has earned an annual net income for 84 consecutive years. PACCAR’s financial results reflect the company’s industry leading trucks and powertrains, excellent aftermarket parts and financial services businesses and continued technology leadership.
PACCAR’s strong financial performance generated an industry leading after-tax return on beginning stockholders’ equity of 26% in 2022. Year-end stockholders’ equity was a record $13.17 billion. PACCAR’s financial performance has enabled the company to declare $8.9 billion in dividends during the last ten years.
PACCAR’s A+/A1 credit rating supported PACCAR Financial Services’ record pre-tax profits of $588.9 million, including $6.22 billion of new loan and lease volume.
In 2022, capital investments were $505 million and research and development expenses were $341 million. These investments enabled PACCAR’s truck factories to build zero emissions vehicles, supported global production capacity increases and implemented advanced technologies to enhance manufacturing efficiency, including the expanded use of automated guided vehicles.
PACCAR made excellent progress in the development of its proprietary autonomous vehicle platform and advanced its partnership with Aurora to commercialize autonomous vehicles. Peterbilt, Kenworth and DAF continued to enhance their industry leading connected services offerings that provide valuable vehicle performance data to our customers, while also providing PACCAR with an increasing stream of recurring revenue.
PACCAR is a leader in the development of battery-electric, hydrogen combustion and hydrogen fuel cell vehicles.
Kenworth, Peterbilt and DAF delivered nearly 200 battery-electric trucks to customers in 2022 and have nine zero emissions vehicle models in production with a backlog of hundreds of customer units on order.
PACCAR’s three global embedded software development centers and global connected truck teams are providing proprietary, customer-focused solutions for all parts of the business. 2022 Financial Highlights
• Worldwide net sales and revenues were $28.82 billion in 2022 compared to $23.52 billion in 2021, primarily due to higher truck and parts revenues.
• Truck sales were $21.49 billion in 2022 compared to $16.80 billion in 2021, primarily due to higher truck deliveries and price realization in all markets.
• Parts sales were $5.76 billion in 2022 compared to $4.94 billion in 2021 reflecting higher demand and price realization in all markets.
• Financial Services revenues were $1.51 billion in 2022 compared to $1.69 billion in 2021, primarily due to lower used truck sales.
• In 2022, PACCAR earned net income for the 84th consecutive year. Net income was $3.01 billion ($5.75 per diluted share) in 2022 compared to $1.87 billion ($3.57 per diluted share) in 2021 reflecting higher Truck, Parts and Financial Services operating results.
• Capital investments were $505.0 million in 2022 compared to $511.8 million in 2021. • After-tax return on beginning equity (ROE) was 26.0% in 2022 compared to 17.7% in 2021. • Research and development (R&D) expenses were $341.2 million in 2022 compared to $324.1 million in 2021.
See attached 01-PACCAR Annual Report
*
13 What is your US market share for the solutions that you are proposing?
Class 6/7: 6.1%
Class 8: 13.9%
Above numbers take into account ALL trucks/tractors with the majority being freight- hauling tractors and inner-city delivery trucks.
Looking only at Vocational-Trucks, which includes the government sector, Peterbilt market share overall is 11.9% (Class 6/7/8 - all inclusive).
*
14 What is your Canadian market share for the solutions that you are proposing?
Class 6/7: 7.0%
Class 8: 12.4%
Above numbers take into account ALL trucks/tractors with the majority being freight- hauling tractors and inner-city delivery trucks.
Looking only at Vocational-Trucks, which includes the government sector, Peterbilt market share is overall 9.67% (Class 6/7/8 - all inclusive).
*
15 Has your business ever petitioned for bankruptcy protection? If so, explain in detail.
NO *
Bid Number: RFP 032824 Vendor Name: Peterbilt Motors - MD Sales DocuSign Envelope ID: 9BB83347-9852-442D-ABE7-863BAFA32866
16 How is your organization best described: is it a manufacturer, a distributor/dealer/reseller, or a service provider? Answer whichever question (either a) or b) just below) best applies to your organization.
a) If your company is best described as a
distributor/dealer/reseller (or similar entity), provide your written authorization to act as a distributor/dealer/reseller for the manufacturer of the products proposed in this RFP. If applicable, is your dealer network independent or company owned?
b) If your company is best described as a manufacturer or service provider, describe your relationship with your sales and service force and with your dealer network in delivering the products and services proposed in this RFP. Are these
individuals your employees, or the employees of a third party? Peterbilt Motors Company is a manufacturer of commercial trucks. Peterbilt has a dealer network of 432 locations across the U.S. & Canada. Peterbilt dealers are independently owned & operated. All Peterbilt dealers must meet stringent sales, service, and parts support requirements as set forth in their dealer contract with Peterbilt Motors Company & Paccar, Inc.
Peterbilt dealers employ 1,000+ salespersons across the U.S. & Canada. Dealer sales personnel are required to stay up to date on the latest product updates, industry technologies, emissions, etc through in-person & on-line training throughout each calendar year. All Peterbilt dealer salespersons are licensed to sell in the States they are assigned.
In addition to the dealer network sales force, Peterbilt Motors also employs a factory- sales-management staff of approximately 40; 13 of which are focused on Vocational Trucks, including government/municipal accounts. Peterbilt also employs an individual dedicated to government contracts and the Sourcewell contract. Peterbilt factory sales managers are required to complete truck product, and all other industry related training throughout the year. All Peterbilt factory sales managers are licensed to sell in the States they are assigned.
Peterbilt dealer AND factory sales forces work collaboratively with fleets to ensure the * customer experience is optimized in regards to truck specifications, performance, etc.
Peterbilt dealer service network includes 432+ locations (add ~25/year), 60 independent dealer groups, 5,000+ dealer personnel, and highly trained technicians that are ALL 100% factory certified. Peterbilt dealer locations perform all levels of service work from standard preventive maintenance to warranty repairs to complete engine rebuilds. Dealers also offer custom maintenance solutions including contract maintenance, mobile service, and on-site technician support.
Peterbilt dealers offer on-site comprehensive fluid analysis, DOT inspections and RapidCheck Express Service (provide diagnostics and an estimate of repairs in two hours or less). Dealers offer drop off service as well as pick-up and delivery.
Dealers also provide Mobile Service truck for repairs at your locations.. 24/7 roadside assistance as well as a 24/7 repair hotline also available at 1-800-4- PETERBILT.
Peterbilt factory service support management team consists of 30+ individuals across the U.S. & Canada that work collaboratively with our dealers service managers and technicians to take care of our customers & their trucks, from indepth troubleshooting to warranty & policy support. *
17 If applicable, provide a detailed explanation outlining the licenses and certifications that are both required to be held, and actually held, by your organization (including third parties and subcontractors that you use) in pursuit of the business contemplated by this RFP.
Peterbilt Manufacturing facilities are ISO 9001:2015 certified.
Peterbilt maintains ISO 14001:2015 Environmental Management System (EMS) to improve its environmental programs and to reduce the environmental impacts of its operations and activities.
Peterbilt trucks conform to all applicable Federal Motor Vehicle Safety Standards (FMVSS).
Peterbilt trucks are equipped with emission control equipment to comply with all applicable US Environmental Protection Agency (EPA) regulations governing control of air pollution from new motor vehicles and new motor vehicle engines, which are in effect on the date of manufacture. In addition, all vehicles conform to the State of California Vehicle Code air quality standards (CARB) for new motor vehicles and new motor vehicle engines in effect on the date of vehicle manufacture.
The exterior sound level of Peterbilt vehicles conforms to the noise legislation of the US Department of Transportation and the EPA.
The interior sound level of Peterbilt vehicles, when measured in accordance with the test procedure of SAE J336 do not exceed the decibels per hour dictated in the test procedure.
Peterbilt brake systems meet all NHSTA FMVSS regulations.
Peterbilt trucks are equipped with a lighting system that conforms to the requirements of FMVSS 108.
Peterbilt standard seat belt assembly (shoulder and lap), restraint system hardware, mounting, and performance conform to FMVSS Nos. 208, 209, 210.
All instruments, indicators, and panel controls are located, identified and illuminated to conform to 49 CFR, Part 571, FMVSS No. 101.
Peterbilt dealers are authorized/certified/licensed to sell Class 5-8 commercial trucks in the States & Provinces in which they do business.
*
18 Provide all “Suspension or Debarment” information that has applied to your organization during the past ten years.
N/A *
Bid Number: RFP 032824 Vendor Name: Peterbilt Motors - MD Sales DocuSign Envelope ID: 9BB83347-9852-442D-ABE7-863BAFA32866
Table 3: Industry Recognition & Marketplace Success
Line
Item Question Response *
19 Describe any relevant industry awards or recognition that your company has received in the past five years
2019 Awards
2019 Top Company for Women to Work for in Transportation by the Women In Trucking (WIT) Association • The organization’s mission is to encourage the employment of women in the trucking industry, promote their accomplishments, and minimize the obstacles they face.
2020 Awards
2020 Top Company for Women to Work for in Transportation by the Women In Trucking (WIT) Association • The organization’s mission is to encourage the employment of women in the trucking industry, promote their accomplishments, and minimize the obstacles they face.
2021 Awards
2021 Top Company for Women to Work for in Transportation by the Women In Trucking (WIT) Association • The organization’s mission is to encourage the employment of women in the trucking industry, promote their accomplishments, and minimize the obstacles they face.
Award of Distinction from the international Communicator Awards for Peterbilt Online EV Operations Cost Calculator. • The Communicator Awards is a leading international awards program dedicated to recognizing excellence, effectiveness and innovation across all areas of communication. The Peterbilt EV Operating Cost Calculator won for its user experience as a powerful tool for prospective customers to evaluate the Total Cost of Ownership of Peterbilt’s three EV vehicle configuration on a per mile (on-highway applications) or per hour basis (vocational applications). 2022 Awards
Operational Excellence Leadership Award from the National Association of Manufacturers (NAM) • Peterbilt received an Operational Excellence Leadership award for its Offline Priority Dashboard initiative, which provides a real-time, on-demand source of information assisting the Operations team to better forecast, prioritize and distribute resources, such as parts and labor, in the most effective manner in offline recovery efforts, and to achieve the delivery goals to assist with supply chain recovery across our country. With this new innovative process, Peterbilt streamlined offline processes to deliver trucks to our customers in the most efficient manner.
Engineering and Production Technology Award from the National Association of Manufacturers (NAM) • Peterbilt received the award for the Structural Fastening Equipment Modernization project that utilizes a fastening equipment hydraulic system featuring MiniBooster hydraulic pressure intensifiers that are simple, inexpensive, and with a parallel installation and modular mounting system changeable on the fly in the case of failure.
Transformative Culture Award from the National Association of Manufacturers (NAM) • Peterbilt received the Transformative Culture award for Safety Program Improvements, with the addition of the Velocity EHS and DuPont STOP program improving the efficiency with immediate corrective actions and shifting the safety culture to the proactive mindset that every safety incident can be prevented.
About the National Association of Manufacturers
The National Association of Manufacturers (NAM) is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. The NAM is a powerful voice in the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. 2022 Top Company for Women to Work for in Transportation by the Women In Trucking (WIT) Association • The organization’s mission is to encourage the employment of women in the trucking industry, promote their accomplishments, and minimize the obstacles they face.
2023 Awards
2023 Top Company for Women to Work for in Transportation by the Women In Trucking (WIT) Association • The organization’s mission is to encourage the employment of women in the trucking industry, promote their accomplishments, and minimize the obstacles they face.
*
20 What percentage of your sales are to the governmental sector in the past three years
2% *
21 What percentage of your sales are to the education sector in the past three years
<1% *
22 List any state, provincial, or cooperative purchasing contracts that you hold.
What is the annual sales volume for each of these contracts over the past three years?
Peterbilt Motors Company only Cooperative purchasing contract is with Sourcewell.
Rush Truck Centers holds contracts with The Florida Sheriffs Association (FSA) and the Houston-Galveston Area Council (H-GAC). Annual volume data available by request through Rush Enterprises. *
23 List any GSA contracts or Standing Offers and Supply Arrangements (SOSA) that you hold.
What is the annual sales volume for each of these contracts over the past three years?
N/A
*
Table 4: References/Testimonials
Line Item 24. Supply reference information from three customers who are eligible to be Sourcewell participating entities.
Entity Name * Contact Name * Phone Number *
Kent County Road Commission Steve Roose 616-481-5368 *
Montcalm County Road Commission Mark Christensen 616-835-6654 * McHenry County DOT Benjamen Justen 815-334-4977 *
Village of Northfield Illinois John Rikje 224-707-2645
Four Rivers Sanitation Authority Dave Daughenbaugh 815-387-7583 Bid Number: RFP 032824 Vendor Name: Peterbilt Motors - MD Sales DocuSign Envelope ID: 9BB83347-9852-442D-ABE7-863BAFA32866
Table 5: Top Five Government or Education Customers
Line Item 25. Provide a list of your top five government, education, or non-profit customers (entity name is optional), including entity type, the state or province the entity is located in, scope of the project(s), size of transaction(s), and dollar volumes from the past three years.
Entity Name Entity Type * State / Province * Scope of Work * Size of Transactions * Dollar Volume Past Three Years *
City of Fresno Government California - CA Refuse Trucks Model 520 6 Trucks $955,750 * City of Virginia Beach Government Virginia - VA Refuse Trucks Model 520 15 Trucks $2,018,482 * City of Visalia Government California - CA Refuse Trucks Model 520 9 Trucks 1,375,987 * Kent County Road
Commission
Government Michigan - MI Vocational Truck Model 365 11 Trucks $1,854,965 *
Miami Dade County Government Florida - FL Refuse Trucks Model 520 5 Trucks $930,620 * Table 6: Ability to Sell and Deliver Service
Describe your company’s capability to meet the needs of Sourcewell participating entities across the US and Canada, as applicable.
Your response should address in detail at least the following areas: locations of your network of sales and service providers, the number of workers (full-time equivalents) involved in each sector, whether these workers are your direct employees (or employees of a third party), and any overlap between the sales and service functions.
Line
Item Question Response *
26 Sales force. Peterbilt Motors Company Factory Sales force consists of Peterbilt's General Manager (equivalent to VP/President at other companies), Assistant General Manager, 3 General Sales Managers over the U.S. & Canada that have a total of 6 Region Managers reporting to them based out of Philadelphia (East), Nashville (South), Denton/Dallas (Midwest), Chicago (Great Lakes), Scottsdale/Phoenix (West), and Toronto (Canada).
Each Region Manager oversees 3-4 District Sales Managers. In addition, Peterbilt Motors has a separate Medium-Duty Sales Team (1 per Region/Canada), Vocational Sales Team (1 per Region/Canada), and National Account Sales Team (1 per Region/Canada). Peterbilt also has one National Fleet Sales Manager that is dedicated to the Sourcewell Account.
All Sales personnel mentioned above collaborate with Peterbilt's Dealer Network Sales teams which consists of 1,085 individuals throughout the US & Canada, including Sales VPs, Directors, Managers, Sales Personnel, and Sales Administrators.
Peterbilt Motors Company also has 3 Dealer Sales Councils comprised of Sales Managers and Representative from all over the US & Canada. The 3 Councils are: National-Accounts Sales Council, Vocational/Government Sales Council, and Medium- Duty Sales Council.
*
27 Dealer network or other distribution methods. Peterbilt Motors Company's dealer network is independently owned & operated. Peterbilt's dealer network consists of 432 locations across the US & Canada. In addition to the dealer network, Peterbilt's dealers are supported by 7 Paccar-owned Parts Distribution Centers strategically located across the US. The Parts Distribution Centers maintain a 99% fill- rate.
In addition to Peterbilt Dealer parts inventories AND the Paccar Parts Distribution Centers, Peterbilt also offers AllMakes parts at over 101 TRP locations in US/Canada and online at https://trpparts.com/ Peterbilt dealers also maintain strong relationships with several Body-Manufacturers. Many of these Body-Companies are Sourcewell members and stock vehicles that utilize Peterbilt trucks.
Please see attached 00-Peterbilt Dealer Locations
*
28 Service force. Peterbilt Motors Company maintains an extensive Corporate service force consisting of a General Manager of Service, Assistant General Manager of Service (GM titles at Peterbilt are equivalent of VP at most companies), Director of Field Service, Director of Warranty, 6 Region Service Managers located across the US (East-Philadelphia, SouthNashville, Midwest-Dallas, Great Lakes-Chicago, West-Phoenix, and Canada- Toronto). Each Region Manager has 3 District Service Managers and 2 Engine Service Managers.
The dealer network consists of 5,025 service personnel (Service Managers, Shop Foreman, Technicians, Service Advisors, Service Writers, etc.).
Peterbilt Motors Company also has a Dealer Service Council that meets multiple times annually to discuss all things service, preventive maintenance, warranty, etc.
*
29 Describe the ordering process. If orders will be handled by distributors, dealers or others, explain the respective roles of the Proposer and others.
Orders will be coordinated and managed by an authorized Petertbilt Dealer sales person. *
Bid Number: RFP 032824 Vendor Name: Peterbilt Motors - MD Sales DocuSign Envelope ID: 9BB83347-9852-442D-ABE7-863BAFA32866
30 Describe in detail the process and procedure of your customer service program, if applicable.
Include your response-time capabilities and commitments, as well as any incentives that help your providers meet your stated service goals or promises.
Peterbilt's Customer Service Program, TruckCare, starts with the initial request for service from the customer. Fleets can rely on Peterbilt TruckCare https://partsandservice.peterbilt.com/en/services to connect them to the help they need 24 hours a day, 365 days a year. Wherever in the U.S. or Canada, Peterbilt's dealer network will get you back on the road as fast as possible:
• Fast help when you call 1-800-4-PETERBILT
• Free registration
• Assistance with towing, jump and pull starts, tires, mechanical repairs and preventive maintenance services • An efficient roadside assistance system that tracks all aspects of your job • Custom-mapping technology including On-board diagnostics through SmartLinq that locates the nearest Peterbilt dealer, other PACCAR dealer or independent service provider to best assist you • Personalized customer profiles to specify your roadside assistance preferences • Bilingual representatives and translation service to ensure quality assistance in any language Peterbilt Dealers must achieve a year-to-date TruckCare Preventive Maintenance Customer Service Score of 90% or higher from Peterbilt Motors Company. The Preventive Maintenance Customer Service Score for each dealer location will reflect a score based upon the following criteria:
1. Dealer s ability to set firm appointment
2. Resolving all customer complaints regarding service quality, customer treatment, or any other complaint deemed reasonable brought to the attention of the Customer Center.
3. Dealer holding appointment slot for customer.
4. Customer is not to wait longer than 1 hour from the scheduled time of the appointment
5. Customer to receive a completed copy of the Preventive Maintenance Inspection Form at the completion of the service.
Since 2020, Peterbilt's "Platinum Service Center Certification". The program is intended to provide superior service for customers.
The certification process is stringent:
Platinum Factors for Dealerships scores are based on factors including:
• Facilities and drivers lounges.
• Expanded hours of service.
• Parts availability.
• Triage procedure.
• Having certified Paccar MX engine technicians.
Platinum Service Center locations will receive a special designation in Peterbilt s dealer locator on the company s website as well as a plaque to showcase in their dealership.
Customer service is also a reflection of parts support; without the needed parts on hand a service event can be significantly delayed.
Peterbilt has the parts you need, ready to ship, with a 99% fill rate. Fleets can reduce their inventory levels and gain security by relying on Peterbilt s dealer network of over 405 locations with 7 regional Parts Distribution Centers strategically located across the U.S. Fleets can be set up with Not-to-Exceed Pricing, Consolidated Billing, and dedicated Account Support locally and nationally.
Response time capability:
Rapidcheck:
Available at all Peterbilt Dealer service locations, Rapidcheck provides a Diagnostic check within 2 hours of truck dropoff; No appointment necessary. Rapid Check guarantees the following within 2 hours of when the work order is started:
Run initial diagnostic testing on the vehicle
Determine needed repairs or if more complete diagnoses is required Check parts availability Provide an estimate of when the vehicle repairs will be complete Communicate all findings to the customer With customer permission, repairs that can be completed within 2 hours will be carried out Response Time Capability:
Mobile Service:
Peterbilt's dealer network operates a fleet of 968+ mobile repair trucks; the fleet is growing rapidly. Mobile service allows for fast response to problems where the customer cannot or prefers not to bring their vehicle to the Peterbilt dealer location. Common in remote areas or areas where traffic is heavy and therefore drive time to/from dealer is not ideal.
Peterbilt also offers National Account Warranty Programs that include:
Access to online truck service & option database (E-Portal), Online electronic parts catalog (ECAT), and Field Service Bulletins
Option to perform in-house warranty repairs with a sponsoring Dealer Filing Warranty Claims on Behalf of Fleet (Dealer Sponsored) OR Fleet filing direct with Peterbilt (Direct Fleet) Discounted and/or free diagnostic tools. *
31 Describe your ability and willingness to provide your products and services to Sourcewell participating entities in the United States.
Peterbilt's full product line and support services are available to ALL Sourcewell participating entities in the United States. *
32 Describe your ability and willingness to provide your products and services to Sourcewell participating entities in Canada.
Peterbilt's full product line and support services are available to ALL Sourcewell participating entities in Canada. * 33 Identify any geographic areas of the United States or Canada that you will NOT be fully serving through the proposed contract.
N/A - Peterbilt services ALL geographic areas in the US & Canada. * 34 Identify any Sourcewell participating entity sectors (i.e., government, education, not-for-profit) that you will NOT be fully serving through the proposed contract.
Explain in detail. For example, does your company have only a regional presence, or do other cooperative purchasing contracts limit your ability to promote another contract?
N/A - Peterbilt will fully service ALL Sourcewell participating entity sectors. *
35 Define any specific contract requirements or restrictions that would apply to our participating entities in Hawaii and Alaska and in US Territories.
N/A - No specific contract requirements or restrictions apply to Sourcewell entities in Hawaii, Alaska, or other US Territories. *
Bid Number: RFP 032824 Vendor Name: Peterbilt Motors - MD Sales DocuSign Envelope ID: 9BB83347-9852-442D-ABE7-863BAFA32866
Table 7: Marketing Plan
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Item Question Response *
36 Describe your marketing strategy for promoting this contract opportunity. Upload representative samples of your marketing materials (if applicable) in the document upload section of your response.
Peterbilt Motors Company Marketing strategy for promoting the Sourcewell Contract consists of the following:
Internal Dealer Bulletins (sent out to all Dealers Management & Sales Personnel) that announce the program, describe the program, provide pricing, and contact details.
Peterbilt Intranet site: Sourcewell is the ONLY entity that has it's own dedicated page on Peterbilt Motors' internal website. The site contains an overview of the program, quick reference guide, customer presentation template, pricing guide, contact information & more.
Peterbilt has and will promote Sourcewell at all Vocational/Government shows, conferences, and expos at which we exhibit; NTEA Work Truck Show, WasteExpo, Electric Utility Fleet Managers Conference (EUFMC), International Construction and Utility Electrical Expo (ICUEE), etc. This includes Peterbilt created marketing materials (see attached) as well as Sourcewell provided pop-ups, flags, truck vinyl logos, etc.
All of Peterbilt's on-site training events include a module on Sourcewell. On-site training is held at Peterbilt's manufacturing locations on a quarterly basis and is open to all Dealer personnel. In addition to training held at Peterbilt facilities, Peterbilt also holds sales/product training at most major shows (NTEA, WasteExpo, etc) that also include module on Sourcewell.
Peterbilt markets our Sourcewell contract on Social Media (Facebook, Twitter, LinkedIn).
Peterbilt's dealer network actively promotes their participation in the Peterbilt Sourcewell contract through their websites, social media, and exhibition at various shows including local and regional APWA events.
See attached 02-Marketing Plan
*
37 Describe your use of technology and digital data (e.g., social media, metadata usage) to enhance marketing effectiveness.
Peterbilt Motors has and will continue to market Sourcewell on our Facebook page and Twitter account. Peterbilt will significantly increase our social media posts in general over the next several years with Sourcewell being part of that.
Peterbilt's dealer network utilizes Facebook, Twitter, and LinkedIn primarily to promote their participation in the Sourcewell contract and to make announcements regarding customer procurement via the contract, etc. *
38 In your view, what is Sourcewell’s role in promoting contracts arising out of this RFP?
How will you integrate a Sourcewell-awarded contract into your sales process?
Sourcewell's role in promoting contracts arising out of this RFP would be to announce the contracts on their website and conduct email campaigns to Sourcewell members.
Sourcewell's role is to continue to be present at major shows, expositions, and conferences to actively promote Sourcewell in general and provide assistance to contract holders to actively promote their specific contracts, including providing marketing materials, pop-up flags, truck decals, etc. Sourcewell should continue to offer sponsorship opportunities at major events for contract holders to participate - example) Peterbilt Motors sponsored the "Public Procurement Reception" at WasteExpo in CY2020.
Peterbilt Motors Company integrates the Sourcewell contract by setting sales goals for its District Sales Managers and Vocational Sales Managers that involve key government/municipal target accounts in their territories with an emphasis on promoting our Sourcewell Contract.
Peterbilt Dealers are provided with presentation templates, marketing material, and filtered spreadsheets of all Sourcewell members in their specific areas of operation. Sales Blitzes and joint sales calls with factory personnel are held monthly.
*
39 Are your products or services available through an e-procurement ordering process?
If so, describe your e-procurement system and how governmental and educational customers have used it.
Peterbilt products are not available through an e-procurement ordering process; only through Peterbilt Dealers and Sourcewell Member Body-Companies that sell complete/turnkey units to Sourcewell members. *
Table 8: Value-Added Attributes
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Item Question Response *
40 Describe any product, equipment, maintenance, or operator training programs that you offer to Sourcewell participating entities.
Include details, such as whether training is standard or optional, who provides training, and any costs that apply.
Peterbilt Motors Company offers on-site and on-line product training, maintenance/service training, and many other courses relevant to the municipal/vocational truck market.
Online training is available to all Sourcewell members 100% FREE of charge. Members would need to simply contact their local dealer who will sponsor the customer and provide the initial log in credentials at https://bcatraining.net/peterbiltfleet/account/login Members can take any course on the site and/or Fleet Managers can assign courses & track progress.
The following are just some of the training on the site that is available:
EV Module
Engine Service
Low Power Visual Inspection
Common Rail Troubleshooting Tandem Drive Axle Service Axle Kingpin Replacement Fuel System Flow and Components Common Rail Fuel System Engine Lubrication System Starting and Charging Systems Pending Active and Inactive Codes Clearing the MIL Light Smoke Analysis
Low Power Diagnosis Manual Compression Testing EGR System Diagnosis Warning Lights DPF System Diagnosis DEF System Diagnosis Turbo System Diagnosis Diesel Emissions System Exhaust and Aftertreatment System Diagnosis NOx Sensor Diagnosis On-site training is available from Peterbilt Motors Company Factory Training Department for a fee on a reservation basis. Training can be conducted at a Peterbilt Motors facility (factory, Region Office, etc.) or at a Sourcewell Member's fleet location.
Peterbilt's Dealer Network also offers operation, maintenance, service and other training. This training is offered for a fee on a reservation basis.
*
41 Describe any technological advances that your proposed products or services offer.
Peterbilt products and services incorporate leading technologies. By working with world-class supplier partners, Peterbilt leverages industry expertise to design and manufacture advanced vehicles, vehicle systems, powertrain components, hardware and software, all fully integrated to deliver outstanding performance and value.
In addition to the standard features of Peterbilt trucks that will be listed below, Peterbilt trucks offer the following technological advances:
Digital Display
The Peterbilt Digital Display fully integrates with electrical and safety systems found on the new 579, 567, 589, 535,536,537,548, and 520 models including the Bendix Fusion Advanced Driver Assistance System.
The state-of-art Digital Display features a fully customizable user interface (UI), delivering an almost endless combination of digital gauges on the main screen at any one time. Operators control the digital UI through one of Bid Number: RFP 032824 Vendor Name: Peterbilt Motors - MD Sales DocuSign Envelope ID: 9BB83347-9852-442D-ABE7-863BAFA32866
three different Drive View Zones. Minimized View eliminates everything but the speedometer and tachometer for minimal driver distraction. Basic View represents traditional information found on analog dashes with Air & Oil Pressure, Fuel & DEF level and Water temperature all prominently displayed along with a speedometer and tachometer. The Enhanced View builds upon the previous views displaying the maximum number of gauges from a list of over 30 information sources. The beauty of the Peterbilt Digital Display is that operators can fine-tune the information shown to suit their individual needs through the easy to use controls found on the all-new steering wheel.
SmartNav:
A high-tech infotainment system, SmartNav delivers GPS navigation (truck maps), communications (integrates with cell phones) and vehicle monitoring (virtual gauges and other truck info) direct to an in-dash seven-inch color touch-screen.
The SmartNav display enables intuitive interaction with an array of technologies, functions and apps, including truck camera systems. SmartNav features voice recognition and control, keeping hands on the wheel and eyes on the road.
SmartNav integrates seamlessly with your phone via Bluetooth® connection and includes WiFi capability, making it easy to stay in touch no matter where you are. The integrated audio system plays through the truck speakers and can also accommodate
satellite radio. The display is available in English, Spanish and French Canadian.
SmartAir:
Peterbilt s proprietary SmartAir system provides a factory installed, no-idle climate control solution that delivers maximum
comfort while also reducing emissions and lowering fuel costs.
The SmartAir system is powered by four, heavy-duty AGM batteries that are charged during normal driving conditions.
When
the engine is off, SmartAir provides quiet, effi cient, high-power cooling capacity for up to 10 hours on a single charge.
Peterbilt s SmartAir design features one of the smallest footprints in the industry. It also features on-board diagnostics, full automatic temperature control in A/C and heating modes and a digital LCD display that makes it easier to control the unit and provides battery monitoring. The system is fully integrated with Peterbilt s existing sleeper HVAC systems, resulting in increased cooling performance, enhanced reliability, reduced maintenance and lower overall operating costs. SmartLinq:
SmartLINQ and its suite of connected services monitor your truck’s health and have the capability to send customized alerts and notifications to your designated support team, including the nearest Peterbilt dealership.
Collision Mitigation:
Peterbilt offers both the Bendix Wingman Collision Mitigation System as well as the Meritor OnGuard System. These systems utilizes forward radar detection to provide driver alerts and active braking when objects are detected in the road or if closing on the vehicle ahead.
Systems also offer lane-keeping technology as well as side object detection. Camera- integrated option provides enhanced object detection and can even read speed limit signs and alert drivers if over the limit. Systems can provide electronic stability control to prevent rollovers as well as adaptive cruise control with reduces throttle and/or applies the service brakes to maintain safe distance with vehicles ahead.
HID + LED headlights:
Peterbilt offers both High-Intensity-Discharge headlights and LED headlights. HIDs provide the best available forward visibility, while LEDs provide superior wide-range/close-range lighting Predictive Cruise:
Predictive Cruise if offered and provides (via forward radar sensor) for automated reduced throttle and/or service brake application to maintain safe distance with vehicles ahead.
Driver Performance Assistant:
When manual transmission is specified, Driver Performance Assistant provides a visual aid to drivers to encourage them to operate in the vehicles RPM "sweet spot" as well as "shift now" notifications to optimize shift patterns for operational efficiency and improved fuel economy
Driver Information Display:
The standard Peterbilt Driver Information Display, located in the center of the dash cluster, provides the operator with the following selections via a toggle switch: Standard view shows cruise status, park-brake status, and gear selected.
Optional views show virtual gauges (i.e. voltmeter, transmission temperature gauge), engine RPM display, shut-down timer, trip information (fuel economy, miles operated, hours operated, idle time, etc.), truck information (VIN, engine make/model, transmission make/model, etc.), and diagnostics/warnings (fault codes with descriptions).
Stability Control with Automatic Traction Control:
Electronic Stability Control prevents roll-over situation by applying the anti-lock service brakes to individual wheels to maintain truck balance when taking turns.Combined with automatic traction control, the technology greatly enhances safety for drivers/fleets.
Zinc coated frame rails:
Peterbilt offers a zinc coating for it's frame rails and crossmembers that significantly reduces corrosion over the life of the truck.
Peterbilt offers a bump-fin style cooling system for extreme dirt environments to reduce wear on the engine.
Allison FuelSense:
Allison FuelSense technology optimizes shift patterns depending on the fleet's desired operating characteristics (power/max-fuel-economy/blend).
Peterbilt offers RollTek Air-Bag-equipped seats for enhanced safety in rollover accidents.
Peterbilt offers the full line of NFPA requirements including Seat & Occupancy sensor & warning, NFPA seats, NFPA grab handles, etc.
Peterbilt offers pre-wiring Provisions for fleet communication systems, camera systems, custom maintenance systems, etc.
Standard technology on Peterbilt trucks that provide value to fleets:
FRAME
Steel rails with gussets to maximize RBM.
Huck bobtail fasteners provide a consistent and durable clamping force up to 600% greater than bolted frames.
Tamper resistant round head and collar offers improved paint adhesion and corrosion resistance. Swage indicating features on collar allows for visual inspection of clamped joint.
Rubber-lined clamps along frame rail to protect air & electric lines routed in frame.
Chassis hose and wiring bundles conveniently routed through gussets provides protection for lines.
STEER AXLE
Zerk fittings on tie rod ends, king pins, and draglink ball joints for ease of maintenance and help extend service life of components.
*
Bid Number: RFP 032824 Vendor Name: Peterbilt Motors - MD Sales DocuSign Envelope ID: 9BB83347-9852-442D-ABE7-863BAFA32866
Greaseless spring pins reduce maintenance and improve ride quality.
Cognis EMGARD® Synthetic Axle Lube reduces wear and extends maintenance intervals, resulting in increased uptime. Provides improved fluid flow to protect components in extreme cold conditions and withstand the stress from high temperatures, extending component life. Glidekote splines on steering shaft extend service life of components.
DRIVE AXLE
Laser factory axle alignment (accurate to .030 of an inch) to improve handling and reduce tire wear.
Magnetic rear axle oil drain plug captures and holds any metal fragments in drive axle lube to extend service life.
ENGINES & RELATED SYSTEMS
Magnetic engine oil drain plug captures and holds any metal fragments in engine oil to extend service life.
Silicone radiator and heater hoses enhance value, durability and reliability.
ClimaTech extended life coolant extends maintenance intervals which reduces maintenance costs.
Constant tension and torque band clamps reduce leaks.
Stainless steel hard-line manifold reduces coolant hoses in the engine compartment to improve durability and appearance.
Thermal fuse in the air conditioning compressor clutch allows the pulley to free spin in the event of a compressor failure, thus reducing belt wear and vehicle downtime.
Weather pack silicone sealed electrical chassis connectors enhance value, durability and reliability.
Maintenance free 12V batteries provide reliable power for starting and accessories. Stranded copper battery cables are double aught (00) or larger to reduce resistance. Stainless steel flex exhaust tubing & clamps provide durability.
Optimized exhaust routing to simplify the truck order process and provide optimal performance.
AIR SYSTEM
Teflon-lined, stainless steel braided compressor discharge hose provides long service life in high operating temperatures.
FUEL TANKS
Aluminum fuel tanks with heavy-duty aluminum brackets and stainless steel straps. Wire braid fuel lines increase durability and reduce potential for leaks.
ELECTRICAL SYSTEM
Multiplex electrical design utilizing the industry standard J1939 data bus that sends multiple signals over a single wire instead of having an individual wire for each function. This allows each component (engine, transmission and instrumentation) to communicate to each other.
This design improves reliability and offers increased functionality.
Proprietary Electronic Service Analyst (ESA) allows dealer to monitor the electrical system, isolate sensors and gauges, and keep a log of service history.
Braided chassis harness cover provides durability.
Convoluted tube covering on harnesses protects from chaffing. Wires numbered every 4 inches or less for ease of serviceability.
CAB / HOOD
Proprietary all-aluminum cab is light weight and durable for long service life. Spring assisted, hood opening for serviceability.
Proprietary anti-blow-down locking mechanism that keeps the hood open during servicing and prevents unintentional closing.
One piece roof reduces potential for leaks.
Lap seam construction and aircraft fasteners has greater clamp load than rivets.
Double wall stamped aluminum doors provide virtually water-tight, rattle-free performance.
Full length, light weight hidden gravity-hinge system that provides low resistance and ease for closing doors providing durability.
Interior Left and Right Side Grab Handles for easy access into the cab.
CAB INTERIOR
LH & RH door mounted map pockets with door mounted step lights Cast rubber flooring with integral sound barrier.
Integrated "dead pedal" for driver comfort.
Four ergonomically positioned entry / egress grabhandles Proprietary non-slip threshold plate accented with a chrome inset and Peterbilt Red Oval adds a touch of Peterbilt class to safety and convenience.
LIGHTS
Projector module pod headlights provide outstanding visibility. 'Headlight On Warning' when headlights are active with door open and ignition off. The high beam headlamp icon flashes and sounds an audible alarm.
Headlights turn on automatically when windshield wiper blades are activated.
Lighting system is protected by an impact resistant Lexan® lens and requires no special tools for lamp adjustment or bulb replacement.
DASH & INSTRUMENTATION
Driver Information Display that allows the driver to view diagnostic information and monitor truck system behavior.
Information such as fuel economy, optimum engine speed and engine and transmission system management provides driver feedback and improves operating performance.
Dash features an "in-mold" color process that imbeds the color into the material making the color permanent and eliminating peeling and fading.
LED backlit gauges to prevent eye fatigue.
PAINT
Dupont Imron Elite two-stage non-metallic paint, one color cab / hood.
Bid Number: RFP 032824 Vendor Name: Peterbilt Motors - MD Sales DocuSign Envelope ID: 9BB83347-9852-442D-ABE7-863BAFA32866
42 Describe any “green” initiatives that relate to your company or to your products or services, and include a list of the certifying agency for each.
Peterbilt manufactures the largest product lineup of Battery-Electric-Vehicles (Models 220EV, 520EV and 579EV) and continues to invest in this technology with a manufacturing plant dedicated to building batteries for its electric vehicles. Additionally, as part of the transition to zero emissions, PACCAR has introduced new electric vehicle charging stations to support electric vehicles. PACCAR is collaborating with Faith Technologies and Schneider Electric to provide charging infrastructure solutions for customers who purchase Peterbilt electric trucks in the US and Canada.
Charging power from 20 kW up to 350 kW.
Our financial strength enables us to invest over $1.11B in Capital projects and R&D in 2023 to:
• Integrated powertrains including state to the art diesel; electric; hybrid; and hydrogen fuel technologies • Enhance our manufacturing capability for better efficiency • Strengthen our aftermarket transportation solutions • Leadership in autonomous systems, and connected vehicle services Peterbilt offers more models with CNG & LNG engines than any other OEM and has sold more CNG/LNG trucks and offered them longer (since 1996) than any other OEM.
Peterbilt’s full line of engines are approved for the use of Biodiesel up to B20.
Investing in Sustainable Operations:
All Company manufacturing locations are ISO 14001 certified and more than 80% are zero-waste-to-landfill.
The Company has invested $800 million over the past ten years in facility projects that have improved energy efficiency, reduced emissions, reduced water consumption and waste including $35 million in reusable containers.
First in the truck industry to implement chassis robotic paint systems. This process has enhanced paint quality, reduced cost and decreased paint usage, waste and air emissions.
Reducing Greenhouse Gas Emissions
From 2013 to 2022 PACCAR reduced greenhouse gas emissions 50% on a per revenue basis.
Hazardous air emissions have been reduced by over 200 metric tonnes per year in paint and other processes.
Peterbilt joined the CDP Reporter Services for reporting greenhouse gas emissions and to benchmark performance to continue reducing our greenhouse gas footprint.
Reducing Waste
Many of the Company s manufacturing locations achieve "zero waste to landfill" by recycling, employing reusable containers and composting food and paper waste.
Conserving Resources
Peterbilt reduces the use of water through internal recycling, reduces paint waste through robotic paint systems and conserves energy by using new technologies such regenerative dynamometers that capture electricity from vehicle testing.
Products
All Peterbilt internal combustion engine vehicles have near-zero emissions of NOx, a smog causing compound, and are compliant with all applicable standards including those by the California Air Resources Board (CARB), the US Environmental Protection Agency (EPA) and the European Commission.
Peterbilt uses Ecodesign, a software tool, to reduce environmental impacts through product design. Through this process, engineers increase recyclability of our trucks, reduce air emissions, use lighter materials to reduce fuel consumption and use fewer hazardous materials.
Fuel-Efficient, Low-Emission PACCAR Engines
Peterbilt has strengthened its leadership in environmental stewardship by expanding its global portfolio of high performing low emission engines.
Over the past five years, these engines have reduced GHG emissions by up to 14%. NOx and particulate matter have also been reduced by over 83%.
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43 Identify any third-party issued eco-labels, ratings or certifications that your company has received for the equipment or products included in your Proposal related to energy efficiency or conservation, life-cycle design (cradle-to-cradle), or other green/sustainability factors.
Peterbilt's full engine offerings all meet or exceed all Environmental Protection Agency (EPA) and California Air Resources Board (CARB) emissions requirements.
All plants that manufacture Peterbilt products are are ISO 14001:2015 and/or ISO 14001:2015 Certified.
Peterbilt offers EPA-Certified Green-House-Gas Emissions tires on all of its products. See Line Item 42 for additional details.
CARB and EPA labels available upon request.
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44 Describe any Women or Minority Business Entity (WMBE), Small Business Entity (SBE), or veteran owned business certifications that your company or HUB partners have obtained. Upload documentation of certification (as applicable) in the document upload section of your response.
Peterbilt's Dealer Network has several dealers/groups that operate as WMBE, SBE, and/or veteran owned businesses.
Example certification, see attached 05-Montana Peterbilt LLC - MBE Other certifications/inquiries available upon request to Peterbilt Motors. *
45 What unique attributes does your company, your products, or your services offer to Sourcewell participating entities? What makes your proposed solutions unique in your industry as it applies to Sourcewell participating entities?
Peterbilt is a US based (Headquartered in Denton, Texas) company that offers the widest array of trucks in the industry. Peterbilt offers Class 5 Conventional trucks, Class 6 & 7 Cab- Over trucks, Class 6 & 7 Conventional trucks & tractors, Class 8 Conventional trucks & tractors AND Class 8 Cab-Over trucks & tractors.
No other OEM has the variety of trucks offered by Peterbilt Motors.
This allows for a Sourcewell member fleet to procure all of their trucks from one OEM/Dealer. This "one-stopshopping" benefits the member through a single source for all trucks, parts, and service needs, streamlining their operations. For example, if a fleet needs a large cab-over refuse truck, a small cab-over for paint striping, and a conventional tandem truck for a dump/plow application, Peterbilt is the ONLY OEM that can provide all 3 trucks.
Additionally, Peterbilt is the only OEM who offers 3 Electric Trucks ranging from medium duty, vocational, and regional tractor.
Peterbilt offers Class leading re-sale values on all of its trucks. If/when a Sourcewell Member trades/sells/auctions its used Peterbilts they will get significantly more than any competitor. This is reflected in NADA book values and can also be extracted from "Truck Paper" pricing.
94% of Peterbilt trucks in-serviced in Calendar Year 2022 were still in-serviced in Calendar Year 2022 94% of 20-yearold trucks were still being put into service. This is a testament to Peterbilt's design philosophy of durable, reliable, custom engineered work trucks.
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Bid Number: RFP 032824 Vendor Name: Peterbilt Motors - MD Sales DocuSign Envelope ID: 9BB83347-9852-442D-ABE7-863BAFA32866
Table 9A: Warranty
Describe in detail your manufacturer warranty program, including conditions and requirements to qualify, claims procedure, and overall structure.
You may upload representative samples of your warranty materials (if applicable) in the document upload section of your response in addition to responding to the questions below.
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Item Question Response *
46 Do your warranties cover all products, parts, and labor? Yes. See attached for full warranty schedule. For extended warranty information, members can reach out to their local Peterbilt dealer or Peterbilt's Sourcewell manager listed on the contract. Hundreds of different combinations of extended warranties are available, including custom warranties to match the members needs (ex - more years, less miles/yr, etc.) See Attached 03 Warranty Procedure Manual and Schedule
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47 Do your warranties impose usage restrictions or other limitations that adversely affect coverage?
No. *
48 Do your warranties cover the expense of technicians’ travel time and mileage to perform warranty repairs?
Yes. *
49 Are there any geographic regions of the United States or Canada (as applicable) for which you cannot provide a certified technician to perform warranty repairs?
How will Sourcewell participating entities in these regions be provided service for warranty repair?
No.
*
50 Will you cover warranty service for items made by other manufacturers that are part of your proposal, or are these warranties issues typically passed on to the original equipment manufacturer?
Typically warranty for components added to a truck AFTER FACTORY DELIVERY (i.e. a Refuse Body or Dump Body, etc.) is covered by the OEM/Dealer/Distributor for that Body.
However, a number of Peterbilt Dealers are authorized distributors and/or service locations for other manufacturers/BodyCompanies and can therefore provide warranty support.
Peterbilt Dealer locations that are also authorized dealers/distributors for other manufacturers/Body-Companies can be researched via the Peterbilt dealer or manufacturer/Body-Company website or by contacting the Peterbilt Motors National Account Manager that manages the Sourcewell Contract listed on the Peterbilt landing page on the Sourcewell website.
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51 What are your proposed exchange and return programs and policies?
Exchange & return policies for trucks are at the discretion of the individual Peterbilt dealer providing the vehicle. * 52 Describe any service contract options for the items included in your proposal.
Service contracts direct through Peterbilt Motors would only be available through Peterbilt's company-owned Lease operations (PacLease).
Fleet Field Service….
The majority of service contract options would be handled through Peterbilt Motors dealer network.
Most Peterbilt Dealers offer service contracts that provide a variety of options i.e. Preventive Maintenance, towing services, DOT inspections, tire exchange programs, oil analysis, winter prep, etc.
Most Peterbilt dealers can also offer on-site technicians, mobile-service, and full-maintenance-contracts. *
Table 10: Payment Terms and Financing Options
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Item Question Response *
53 Describe your payment terms and accepted payment methods. Payment terms are at the discretion of Peterbilt Dealers and vary depending on the type of truck purchased, body installed (if applicable), lead-times for components, etc.
Payment terms are negotiable - typically Peterbilt dealers can provide payment terms that match what the Sourcewell member requests.
*
54 Describe any leasing or financing options available for use by educational or governmental entities.
Yes; Peterbilt Motors offers a full range of financing options including municipal leases through Paccar Financial Corporation (PFC), a Division of Paccar (Peterbilt is also a Division of Paccar).
In addition to PFC, Peterbilt dealers can provide financing options through various banks and other financial partners.
Also, many Dealer Groups operate their own finance companies and can provide options for Sourcewell members. *
55 Describe any standard transaction documents that you propose to use in connection with an awarded contract (order forms, terms and conditions, service level agreements, etc.). Upload a sample of each (as applicable) in the document upload section of your response.
Peterbilt Motors has created a special sales code that is added electronically in our "Truck Specification Software" that designates the truck(s) being ordered as a Sourcewell transaction.
Peterbilt dealers submit Sourcewell orders electronically to Peterbilt Motors. A quarterly report is generated using the special sales code from the system that shows all trucks that were invoiced and in service for that period. An automatic email will go out to the Peterbilt dealer to verify the trucks sold to the customer is indeed a Sourcewell member.
Peterbilt's system then cross references the special sales code with warranty start dates to determine what trucks were put into service during that particular quarter. The trucks are then loaded onto the Sourcewell quarterly sales report and submitted to Sourcewell and at the same time submitted to Peterbilt accounting for check processing to pay Sourcewell.
All purchase orders from Sourcewell members go directly to and are processed by Peterbilt dealers.
For trucks on the ground that were not ordered for particular Sourcewell deals (stock trucks), dealers submit pricing to Peterbilt's Sourcewell Manager to verify that the sell price qualifies as a Sourcewell contract pricing. Those "stock trucks" are then added to the quarterly tracking database. *
56 Do you accept the P-card procurement and payment process? If so, is there any additional cost to Sourcewell participating entities for using this process?
No.
*
Table 11: Pricing and Delivery
Provide detailed pricing information in the questions that follow below. Keep in mind that reasonable price and product adjustments can be made during the term of an awarded Contract as described in the RFP, the template Contract, and the Sourcewell Price and Product Change Request Form.
Line
Item Question Response *
Bid Number: RFP 032824 Vendor Name: Peterbilt Motors - MD Sales DocuSign Envelope ID: 9BB83347-9852-442D-ABE7-863BAFA32866
57 Describe your pricing model (e.g., line-item discounts or productcategory discounts).
Provide detailed pricing data (including standard or list pricing and the Sourcewell discounted price) on all of the items that you want Sourcewell to consider as part of your RFP response.
If applicable, provide a SKU for each item in your proposal.
Upload your pricing materials (if applicable) in the document upload section of your response.
Peterbilt will continue with pricing that provides a %-off-of-list format. Peterbilt's published Sourcewell pricing lists sample MSRP/List prices for each model offered.
Peterbilt will provide pricing for EVERY model we offer. Sourcewell members need to simply have their local Peterbilt dealer build their truck specification, obtain the specification from the dealer with the final list price. Member then takes the appropriate % (varies by Model) off of that list price to give them their final ceiling price for the truck.
Pricing includes cab & chassis, factory-freight, Pre-Delivery-Inspection (PDI), marketing fee, and dealer profit Pricing does NOT include flooring/interest, any applicable taxes (i.e. FET), commodity surcharge(s), any options/services provided by the dealer outside of PDI (i.e. body, lights, manuals, training, Doc Fees, DEF fluid, additional fuel, truck clean-up, local delivery etc.).
Also not included are any extended coverages requested and any engineering vehicle layout drawings if needed. *** Medium-Duty/Heavy-Duty/BEV Commercial trucks do not have true MSRPs - list prices can vary greatly depending on options. For example, the difference between a manual transmission and automatic transmission can be $10,000+ in list price. Aggressive deep-lug all terrain tires can add $5,000+. For BEV battery pack prices can vary $20,000+ due to range size.
*
58 Quantify the pricing discount represented by the pricing proposal in this response. For example, if the pricing in your response represents a percentage discount from MSRP or list, state the percentage or percentage range.
Peterbilt's discount for the Sourcewell contract is a %-off-of-List-Price format. The %-off yields truck pricing that is equalized to our best Marketing Program at the time of the RFP which will provide for substantial savings for Sourcewell members.
As per the comments in Line Item 57, Price is established by taking the appropriate % (varies by Model) off of the final list price of the truck (after dealer specs the truck per the Sourcewell member's specifications). Price yielded includes Peterbilt's factory freight and the Peterbilt dealer's profit & pre-delivery-inspection.
Pricing does NOT include flooring/interest, any applicable taxes (i.e. FET), commodity surcharge(s), any options/services provided by the dealer outside of PDI (i.e. body, lights, manuals, training, Doc Fees, DEF fluid, additional fuel, truck clean-up, local delivery etc.).
Also not included are any extended coverages requested and engineering vehicle layout drawings if needed.
Latest pricing guide for specific Sourcewell Members will be updated yearly. Peterbilt dealers will have the latest pricing guide.
See pricing example below:
Sourcewell member works with local dealer to build a spec for a Model 548 and final list price with all options assuming is
$200,000 and assuming the current discount is 15%.
Sourcewell member simply takes % off of list price and the number yielded is what they would pay for the truck. (List Price x % off) = Discount
($200,000 X 15%) = $30,000
(List Price – Discount) = Sourcewell Price
($200,000 - $30,000) = $170,000
*
59 Describe any quantity or volume discounts or rebate programs that you offer.
N/A *
60 Propose a method of facilitating “sourced” products or related services, which may be referred to as “open market” items or “nonstandard options”. For example, you may supply such items “at cost” or “at cost plus a percentage,” or you may supply a quote for each such request.
Peterbilt dealers can provide turnkey solutions for Sourcewell Members. Peterbilt dealers can provide one invoice that includes the truck cab & chassis and all other components required on the vehicle.
Examples of such components (or "sourced goods"): Bodies (refuse, dump, vacuum, etc.) Accessories (plows, additional lights, cameras, etc.)
Peterbilt dealers will provide both Bodies & Accessories at cost plus a maximum of 10%. Cost plus 10% amount may not exceed $7,000 for Bodies & Accessories.
*
61 Identify any element of the total cost of acquisition that is NOT included in the pricing submitted with your response.
This includes all additional charges associated with a purchase that are not directly identified as freight or shipping charges. For example, list costs for items like pre-delivery inspection, installation, set up, mandatory training, or initial inspection. Identify any parties that impose such costs and their relationship to the Proposer.
Items not included in Peterbilt's "%-off-of-List-Price" pricing are mentioned in Line Items 57 & 58.
Truck (cab & chassis) price calculated from %-off-of-list-price equation includes Peterbilt factory freight charge and dealer profit and pre-delivery-inspection (PDI).
Price does not include any component or service provided post factory delivery.
Examples of components/services NOT included from Peterbilt Motors: Extended truck warranty Extended engine warranty
Peterbilt Engineering Vehicle layout drawings
Examples of components/services NOT included from Peterbilt Motors and provided by the Peterbilt Dealer:
Body
Federal Excise Tax (FET) - if applicable Other taxes
Doc fees local delivery
clean-up/truck wash additional manuals training
additional lights camera systems additional fuel
additional diesel exhaust fluid
additional fuel
engineering vehicle layout drawings
Pricing does NOT include flooring/interest, any applicable taxes (i.e. FET), commodity surcharge(s), any options/services provided by the dealer outside of PDI (i.e. body, lights, manuals, training, Doc Fees, DEF fluid, additional fuel, truck clean-up, local delivery etc.).
Also not included are any extended coverages requested and engineering vehicle layout drawings if needed. *
62 If freight, delivery, or shipping is an additional cost to the Sourcewell participating entity, describe in detail the complete freight, shipping, and delivery program.
Freight from the Peterbilt factory where the truck is being manufactured to the 1st delivery point (either Body-Company or Peterbilt Dealer) IS included in Peterbilt's Sourcewell pricing.
Delivery of truck from the Body-Company or Peterbilt Dealer to the Sourcewell member is NOT included in Peterbilt's Sourcewell pricing and will be called out as a separate line item on the Body Company invoice and/or the Peterbilt dealer final invoice.
*
63 Specifically describe freight, shipping, and delivery terms or programs available for Alaska, Hawaii, Canada, or any offshore delivery.
Terms for freight, shipping, and delivery to Alaska, Hawaii, Canada, and Puerto Rico no different that US from a pricing perspective.
Time to ship estimated at 2-3 additional weeks for Alaska/Hawaii/Puerto Rico *
64 Describe any unique distribution and/or delivery methods or options offered in your proposal.
Peterbilt Motors dealers can offer delivery spread out across a calendar (depending on purchase volume and Peterbilt manufacturing schedule). Trucks can be delivered at intervals that suit the Sourcewell members need/budget. *
Bid Number: RFP 032824 Vendor Name: Peterbilt Motors - MD Sales DocuSign Envelope ID: 9BB83347-9852-442D-ABE7-863BAFA32866
Table 12: Pricing Offered
Line
Item The Pricing Offered in this Proposal is: * Comments 65 c. better than the Proposer typically offers to GPOs, cooperative procurement organizations, or state purchasing departments. Peterbilt pricing proposal reflects our best Marketing Program offered YTD
and due to limits placed on dealer
profit/pdi and other costs, the final
pricing is better than what is typically
offered.
Table 13: Audit and Administrative Fee
Line
Item Question Response *
66 Specifically describe any self-audit process or program that you plan to employ to verify compliance with your proposed Contract with Sourcewell.
This process includes ensuring that Sourcewell participating entities obtain the proper pricing, that the Vendor reports all sales under the Contract each quarter, and that the Vendor remits the proper administrative fee to Sourcewell.
Provide sufficient detail to support your ability to report quarterly sales to Sourcewell as described in the Contract template.
As noted in Line Item 55, Peterbilt Motors has created a special sales code that is added electronically in our "Truck Specification Software" that designates the truck(s) being ordered as a Sourcewell transaction.
Peterbilt dealers submit Sourcewell orders electronically to Peterbilt Motors. A quarterly report is generated that shows all trucks that were ordered with the code.
Peterbilt's Sourcewell Manager then cross references the code with warranty start dates to determine what trucks were put into service during that particular quarter.
Although not required by Sourcewell, Peterbilt Sourcewell Manager then obtains copies of all Peterbilt dealer invoices to the Sourcewell members for those trucks and verifies pricing meets the Sourcewell Contract.
The trucks are then loaded onto the Sourcewell quarterly report and submitted to Sourcewell and at the same time submitted to Peterbilt accounting for check processing to pay Sourcewell.
For trucks on the ground that were not ordered for particular Sourcewell deals (stock trucks), and therefore do not have the Sourcewell electronic code on them, dealers have been formally instructed through Peterbilt's Sourcewell dealer training material to notify Peterbilt Motors of any stock trucks that sell to a Sourcewell member. Dealers must also submit pricing for those stock trucks to Peterbilt's Sourcewell Manager to verify that the sell price meets our Sourcewell contract pricing.
*
67 If you are awarded a contract, provide a few examples of internal metrics that will be tracked to measure whether you are having success with the contract.
Peterbilt will track each sale utilizing the quarterly report described in line 66. This report will be compared to other customer and regional sales reports at Peterbilt to determine if that quarter was a success. If orders are 50+ per quarter is deemed a successful program. Please note current market conditions limits exponential growth due to allocation.
*
68 Identify a proposed administrative fee that you will pay to Sourcewell for facilitating, managing, and promoting the Sourcewell Contract in the event that you are awarded a Contract. This fee is typically calculated as a percentage of Vendor’s sales under the Contract or as a per-unit fee; it is not a line-item addition to the Member’s cost of goods.
(See the RFP and template Contract for additional details.) Peterbilt Motors proposes to offer the flat $500/truck administrative fee that was provided for our current Sourcewell contract.
*
Table 14A: Depth and Breadth of Offered Equipment Products and Services Proposers submitting a proposal in Category 1 as defined herein will be submitting in the broad category that includes all types of engines, fuel, and propulsion systems. For example, if a Proposer offers chassis and cabs with Internal Combustion Engines (ICE) as well as chassis and cabs with electric propulsion systems the Proposer should designate it is seeking an award in Category 1 only. Proposers seeking an award in Category 2, as defined herein, must include at least one solution offered within the scope of Category 2 for electric propulsion systems only.
Line Item Category Selection *
69 Category 1: All engines, fuel, and propulsion type chassis and cabs * Table 14B: Depth and Breadth of Offered Equipment Products and Services Line
Item Question Response *
Bid Number: RFP 032824 Vendor Name: Peterbilt Motors - MD Sales DocuSign Envelope ID: 9BB83347-9852-442D-ABE7-863BAFA32866
70 Provide a detailed description of the equipment, products, and services that you are offering in your proposal.
Peterbilt Motors offers the widest product line in the industry for Sourcewell members from class 5 to class 8.
Peterbilt offers the following products:
Cab over and conventional Medium, Vocational, Heavy, and EV Model 220: Cab-over cab. Truck configuration only (no tractor). 26,000 LBS GVW - 33,000 LBS GVW. 6.7 Liter diesel engine. Automated/automatic transmissions. Common applications include Street-Sweepers, Paint-Stripers, Stake- bed-trucks, and Van-body-trucks.
Model 535: Conventional cab. Truck configuration only (no tractor). 19,500 LBS GVW. 6.7 Liter or 9 Liter diesel engine.
Automated/automatic transmissions.
Common applications include Service/Mechanics-trucks, Stake-bed-trucks, flat-bed- trucks, and Van-body-trucks.
Model 536: Conventional cab. Truck configuration only (no tractor). 26,000 LBS GVW. Paccar 6.7 Liter or 9 Liter diesel engine. Automated/automatic transmissions. Common applications include Service/Mechanics-trucks, Stake-bed- trucks, flatbed-trucks, and Van-body-trucks.
Model 537: Conventional cab. Truck or tractor configuration. 26,000 LBS - 33,000 LBS GVW (52,000 LBS GVWR). 6.7 Liter or 9 Liter diesel engine.
Automated/automatic or manual transmissions. Common applications include Dump- trucks, Van-body-trucks, hook-lift-trucks, and Utility-trucks.
Model 548: Conventional cab. Truck or tractor configuration. 33,000 LBS - 66,000 LBS GVW & GVWR. 6.7 Liter or 9 Liter diesel or CNG/LNG engine.
Automated/automatic or manual transmissions. Common applications include Dump/Plow-trucks, Vacuum-trucks, Cranetrucks, Refuse/Waste Collection-trucks and Tank-trucks.
Model 567: Conventional cab. Truck or tractor configuration. 66,000 LBS - 80,000+ GVW & GVWR. 9 Liter, 11 Liter, 13 Liter, and 15 Liter diesel engine. Automated/automatic or manual transmissions. Common applications include Dump- trucks, Crane-trucks, Tank-trucks, and Low-Boy-tractors.
Model 579: Conventional cab. Tractor configuration only (no truck). 66,000 LBS - 80,000 LBS GVWR. 9 Liter, 11 Liter, 13 Liter, or 15 Liter diesel engine and 12 Liter CNG or LNG engine. Automated/automatic or manual transmissions.
Common applications include Van-Body-tractors, Flat-Bed-tractors, Tanker-tractors, and Low-Boy- tractors.
Model 589: Conventional cab. Tractor or truck configurations. 80,000+ LBS GVW & GVWR. 13 Liter or 15 Liter diesel engine. Automated/automatic or manual transmissions. Common applications include Heavy-haul-tractors, HeavyDump-tractors, Low-Boy-tractors, and Heavy-Dump-trucks.
Model 520: Cab-over cab. Truck configuration and limited tractor configurations. 66,000 LBS - 80,000 LBS GVW and 80,000 LBS GVWR. Automated/automatic or manual transmissions. Common applications include Refuse/Waste-Collectiontrucks (Rear-Load, Automated-Side-Loader, Front-Loader, etc.), Paint-Striping-trucks, and Concrete-Pumping-trucks.
Additional details can be found at https://www.peterbilt.com/trucks *
71 Within this RFP category there may be subcategories of solutions. List subcategory titles that best describe your products and services.
Truck & related Parts:
Peterbilt Motors Company and its sister division, Paccar Parts can provide comprehensive parts solutions (all makes/all models) for Sourcewell members. Some members can qualify for National Account Parts pricing depending on volumes.
Paccar Parts offers and "Online Parts Counter" (https://parts.peterbilt.com/), 24/7-365 parts ordering, consolidated billing, and Universal Credit Lines.
In addition, Several Peterbilt Dealers operate very large Parts operations with their own dedicated distributions centers and can provide comprehensive parts solutions to Sourcewell members by way of substantial discounts, delivery service, and inventory management services.
72 Describe any manufacturing processes or materials utilized that contribute to chassis strength, cab strength, overall durability, driver safety.
Each Peterbilt truck is built at one of our 3 manufacturing facilities. All components that make up each individual Vehicle Identification Number (VIN) are tracked by their serial number, at what station they were installed, by what employee, using what tools, at what specific time of the day and even the exact torque value of components fastened to the truck.
This allows for optimum monitoring of supplier quality, any manufacturing errors, and insight into issues in the field (i.e. - failure in the field can more easily be traced to a particular batch of parts or a particular supplier, manufacturing process may need adjusted, etc.).
Peterbilt Motors uses the highest quality materials that exceed most NHTSA, TMC, or SAE standards. All conventional cabs are aluminum in construction and use aircraft grade huck or henrob fasteners for assembly.
Chassis strength:
All OEMs use similar frame RAILS in regards to PSI/RBM - Peterbilt is the only OEM that uses FIVE 5/8" huck fasteners on each side of the crossmembers in the frame. This gives Peterbilt the absolute strongest frame in the industry - up to 600% stronger.
Most of Peterbilt's conventional cabs (535/536/537/548/567/589) are constructed of aluminum and are fastened together with adjoining aluminum sheets overlapped (lap- seam construction) and fastened using robotically punched henrob fasteners along with 2 adhesives (structural & acoustic) to fasten the cab together.
This superior frame and cab construction contributes to Peterbilt having 94% of it's trucks in-serviced in 1999 STILL being in-serviced in 2024! - Class leading durability.
Safety features include:
Bendix ESP Stability Control System Bendix Wingman collision mitigation Meritor OnGuard Smart Traction Control Battery disconnect switches
Auto Neutral activates with parking brake Brake lock PTO control Seat belt and occupancy sensor Remote keyless entry
Optional Severe Service Cab Orange/Red seat belts
RollTek Air-bag equipped seats
Other Peterbilt features & benefits/advantages:
FRAME
• Steel rails with gussets to maximize RBM.
• Huck bobtail fasteners provide a consistent and durable clamping force up to 600% greater than bolted frames.
Tamper resistant round head and collar offers improved paint adhesion and corrosion resistance. Swage indicating features on collar allows for visual inspection of clamped joint. • 3-piece C-Channel crossmember with cast gussets for the strongest crossmembers in the industry.
• Each crossmember is attached with FIVE 5/8" huck fasteners making for the strongest frames in the industry. • Rubber-lined clamps along frame rail to protect air & electric lines routed in frame. • Chassis hose and wiring bundles conveniently routed through gussets provides protection for lines. • Stanard front wheel mudflaps reduce road spray, help maintain a cleaner truck and better visibility. • Two frame mounted tow pins standard.
STEER AXLE
• Available with set forward front axle configuration for a smoother ride or set back front axle configuration for increased maneuverability and optimized weight distribution. • Factory front axle alignment to improve handling and reduce tire wear. • Zerk fittings on tie rod ends, king pins, and draglink ball joints for ease of maintenance and help extend service life of components.
• Greaseless spring pins reduce maintenance and improve ride quality. • Standard oil seals for long lasting leak protection.
Bid Number: RFP 032824 Vendor Name: Peterbilt Motors - MD Sales DocuSign Envelope ID: 9BB83347-9852-442D-ABE7-863BAFA32866
• Cognis EMGARD® Synthetic Axle Lube reduces wear and extends maintenance intervals, resulting in increased uptime. Provides improved fluid flow to protect components in extreme cold conditions and withstand the stress from high temperatures, extending component life.
• Glidekote splines on steering shaft extend service life of components. • DRIVE AXLE
• Laser factory axle alignment (accurate to .030 of an inch) to improve handling and reduce tire wear. • Magnetic rear axle oil drain plug captures and holds any metal fragments in drive axle lube to extend service life. • Parking brakes on ALL drive axles for optimal performance. • Cognis EMGARD® Synthetic Axle Lube for all Rear Axles.
ENGINES & RELATED SYSTEMS
• Magnetic engine oil drain plug captures and holds any metal fragments in engine oil to extend service life. • Silicone radiator and heater hoses enhance value, durability and reliability. • ClimaTech extended life coolant extends maintenance intervals which reduces maintenance costs. • Low coolant level sensor warns of low coolant condition to prevent engine damage. • Constant tension and torque band clamps reduce leaks. • Stainless steel hard-line manifold reduces coolant hoses in the engine compartment to improve durability and appearance.
• Thermal fuse in the air conditioning compressor clutch allows the pulley to free spin in the event of a compressor failure, thus reducing belt wear and vehicle downtime.
• Weather pack silicone sealed electrical chassis connectors enhance value, durability and reliability. • 12 Volt System with circuit protection for reliable easy maintenance and service. • Composite fan is light-weight but strong and corrosion resistant. • Full fan shroud, ring and rubber boot improves under hood airflow and provides a robust fan-to-radiator shroud interface for greater cooling capacity.
• Maintenance free 12V batteries provide reliable power for starting and accessories. • Stranded copper battery cables are double aught (00) or larger to reduce resistance. • Stainless steel air cleaner straps, brackets and fasteners provide a durable bright finish. • Molded rubber air intake connections with lined stainless steel clamps seal to prevent contaminants in air intake. • Washer bottle with 1.3 gallon capacity extends maintenance intervals to refill. • Polished stainless steel grille with a distinctive punched oval grille pattern provides a durable bright finish. • Stainless steel flex exhaust tubing & clamps provide durability. • Optimized exhaust routing to simplify the truck order process and provide optimal performance. • 5" diameter chrome plated steel standpipe cools exhaust for safety.
TRANSMISSION & RELATED SYSTEMS
• Synthetic lubricant to reduce friction, improve efficiency and extend component life. • Magnetic transmission oil drain plug captures and holds any metal fragments in transmission oil to extend service life. • Coated driveshaft splines extend service life.
• Configured Clutch to simplify the truck order process and provide optimal performance. • Torque limiting clutch brake
AIR SYSTEM
• Engine mounted air compressor with remote mounted air system filter dryer to reduce moisture in air system components.
• Teflon-lined, stainless steel braided compressor discharge hose provides long service life in high operating temperatures.
• Schrader valve for charging of air system from external source.
FUEL TANKS
• Aluminum fuel tanks with heavy-duty aluminum brackets and stainless steel straps. • Under cab fuel tanks include steps for cab access. • Single fuel tank will receive a single draw / single return fuel system. • Dual fuel tanks will receive dual draw / dual return fuel system equalizes fuel load. • Top draw fuel plumbing reduces chance of introducing air into the fuel system during low fuel level conditions due to the central placement of the fuel pickup tube.
• Optimized filler neck location on under cab fuel tanks optimizes access and safety. • Paddle handle filler cap with threadless filler neck to avoid stripping • Wire braid fuel lines increase durability and reduce potential for leaks.
ELECTRICAL SYSTEM
• Multiplex electrical design utilizing the industry standard J1939 data bus that sends multiple signals over a single wire instead of having an individual wire for
each function. This allows each component (engine, transmission and instrumentation) to communicate to each other. This design improves reliability and offers increased functionality. Standard are two RP1226 connectors inside the cab for easy connections.
• Proprietary Electronic Service Analyst (ESA) allows dealer to monitor the electrical system, isolate sensors and gauges, and keep a log of service history.
• Automatically resetting circuit breakers in selected circuits • Braided chassis harness cover provides durability. • Convoluted tube covering on harnesses protects from chaffing. • Wires numbered every 4 inches or less for ease of serviceability. • Power distribution center in cab is centrally located in a protected environment for easy access.
CAB / HOOD
• Proprietary all-aluminum cab is light weight and durable for long service life. • Light-weight, gently sloped, hood with and one-piece grille crown improves air flow and increases visibility. • Spring assisted 90 degree hood opening for serviceability. • Proprietary anti-blow-down locking mechanism that keeps the hood open during servicing and prevents unintentional closing.
• Hood latch on each side secures the hood to the cowl. • Three point rubber cab mounting
• One piece roof reduces potential for leaks.
• Lap seam construction and aircraft fasteners has greater clamp load than rivets. • Bulkhead style doors provide virtually water-tight, rattle-free performance. • Extruded aluminum door frames for strength and durability. • Full length, heavy-duty piano-type stainless steel door hinges and pins provide durability. • View window in RH door for safety.
• Electric windshield wipers and washers with intermittent wiper function • Grab handles mounted on cab LH & RH for cab access. • Convex mirror over RH door and below each rear view mirror for improved visibility and safety CAB INTERIOR
• Upper and lower dash panels in a dark charcoal color that is not only easier to clean and shows less scratches and scuffs, but also improves driver visibility due to less glare. • Contoured door pads featuring integrated ergonomic armrests for driver comfort • LH & RH door mounted map pockets with built-in courtesy lights • Power lift passenger window controls integrated into the door panel are within easy reach of the driver for safe and convenient operation.
• Padded vinyl headliner is easy to clean.
• Two inside sunvisors with map straps provide driver and passenger comfort and convenience. • Two coat hooks for driver and passenger convenience. • Integrated cup holder in dash
• Cast rubber flooring with integral sound barrier.
Bid Number: RFP 032824 Vendor Name: Peterbilt Motors - MD Sales DocuSign Envelope ID: 9BB83347-9852-442D-ABE7-863BAFA32866
• Heater / air conditioner with dedicated side window defroster • Adjustable steering column
• Key start ignition for an automotive feel.
• Ignition and doors keyed alike for driver convenience. • Cigar lighter and ashtray with power port
• Integrated "dead pedal" for driver comfort.
• Five ergonomically positioned entry / egress grab-handles • Proprietary non-slip threshold plate accented with a chrome inset and Peterbilt Red Oval adds a touch of Peterbilt class to safety and convenience. • Header mounted dome light
• Driver and passenger dome and reading lights
• Footwell lighting
• 12-volt and USB power outlet in dash
• Peterbilt in-dash Navigation System available
LIGHTS
• State-of-the-art LED and halogen projector module headlights increase visibility. • 'Headlight On Warning' when headlights are active with door open and ignition off. The high beam headlamp icon flashes and sounds an audible alarm.
• Headlights turn on automatically when windshield wiper blades are activated. • Polished cast aluminum headlight pod housing with LED side-turn indicators and an impact resistant lens matches durability with style.
DASH & INSTRUMENTATION
• Driver Information Display that allows the driver to view diagnostic information and monitor truck system behavior.
Information such as fuel economy, optimum engine speed and engine and transmission system management provides driver feedback and improves operating performance.
• Ergonomic dash provides enhanced driver comfort and productivity. • Dash features an "in-mold" color process that imbeds the color into the material making the color permanent and eliminating peeling and fading.
• LED backlit gauges to prevent eye fatigue.
• Standard warning lights with audible alarm for high coolant temperature, low oil pressure and low air pressure • Warning indicators for high beam, parking brake, turn signals, low fuel, road surface ice potential • Seat belt reminder
• Cruise control for driver convenience.
• Rocker switches with long-life LED indicators that are easy to reach for driver safety and convenience.
PAINT
• The best paint in the industry: Dupont Imron Elite two-stage non-metallic paint, one color cab / hood 73 Describe any differentiating serviceability attributes (remote diagnostics, etc.) your proposal offers.
Peterbilt hoods tilt a full 90-degrees providing class-leading engine compartment access for optimum serviceability of all components. All other OEMs hood tilt at approximately up to 75-degrees or worse.
In addition, Peterbilt's conventional cabs do NOT have dog-houses which push the back end of the engine into the cab.
Peterbilt's engine bay with no dog-house provides the best engine access for service in the industry.
Peterbilt offers individually replaceable gauges that allow for fast & inexpensive gauge replacement. Approximately 10 minutes & $50 to replace a gauge in the
gauge "cluster" vs ALL other OEMs needing the entire cluster replaced if 1 gauge goes out - approximately $1,200 & 1- 2 hours.
Peterbilt's cabin air filter is located out of the elements and easy to access near the passenger footwell. Other OEMs have external cabin air filters that require the windshield cowl to be removed and are exposed to the elements.
Peterbilt uses weatherpack connectors with o-ring seals on wiring connection points to keep the elements out and provide secure connections. All wires clearly numbered (every 4 inches) and include aluminum tags to help identify them for easier service.
Air lines are color-coded for simple tracing.
Published Labor Times for Common Maintenance and Repair Items Show that a Peterbilt can Save up to 20% on Labor Costs
Peterbilt trucks come standard with on-board-diagnostics, visible to the driver via the 7" or 15" digital displays. The onboard diagnostics will alert the driver of a fault code and provide the fault code number and a brief description. If the fault
requires service soon or immediately the display will provide the driver with the level of the fault and the time (in hours) to de-rate and if severe, the time in hours to (shut- down). If, for example, a fault has a time in hours to de-rate of 5-hours and the operator has only 2 hours left in their route, they can finish their route and return to their shop or take to the dealer at the end of their route. Without on-board- diagnostics and just a simple dash light, operators would often times cut their route off as soon as the light illuminated.
Peterbilt also offers Remote-diagnostics via our standard SmartLinq system. SmartLinq provides the same information noted above (on-board-diagnostics) but additionally through a desktop and/or mobile app format. The SmartLinq web portal can be set up for management by one or several fleet personnel and provides a dashboard that will display a map of all SmartLinq-enabled trucks the fleet operates. The vehicles move on the map in real time and will display colorcoded symbols to denote their current operating status (i.e. green-normal, yellow-service soon, red-service now, etc.).
Each truck can be clicked on for more detailed information. Email notifications can be set up to alert the fleet SmarLinq adminstrator(s) when a truck experiences a fault code and can be tailored to only alert when faults are mission disabling, etc. More information can be found at https://www.peterbilt.com/why-peterbilt/purposeful-innovation Peterbilt dealers offer "RapidCheck" service. Peterbilt launched the Rapid Check service program to provide diagnostics and an estimate of repairs in two hours or less.
The program is available throughout the more than 432 locations in the Peterbilt dealer network.
Within two hours, Rapid Check provides basic vehicle diagnostics, with more complex diagnostics if necessary. The information is evaluated and repairs are provided along with an estimated time needed to complete the work - again; all within 2 hours.
The service is being offered to maximize customer uptime. The service is available for ANY truck make or model, not just Peterbilt.
Bid Number: RFP 032824 Vendor Name: Peterbilt Motors - MD Sales DocuSign Envelope ID: 9BB83347-9852-442D-ABE7-863BAFA32866
Table 15: Category 1 - Depth and Breadth of Offered Equipment Products and Services Indicate below if the listed types or classes of equipment, products, and services are offered within your proposal. Provide additional comments in the text box provided, as necessary.
Proposers submitting a proposal in Category 1 will be submitting in the broad category that includes all types of engines, fuel, and propulsion systems. See RFP Section II. B. 1 for details.
We will not be submitting for Table 15: Category 1 - Depth and Breadth of Offered Equipment Products and Services Line
Item Category or Type Offered * Chassis Type (ICE and/or BEV) Comments 74 Class 4 chassis Yes
No
Internal Combustion Engine fuel types (ICE) Peterbilt does not offer Class 4 chassis. * 75 Class 5 chassis Yes
No
Internal Combustion Engine fuel types (ICE) Conventional cab. Truck only. Body- installation unlimited. Up to 19,500 LBS GVW
*
76 Class 6 chassis Yes
No
Both Chassis Types (ICE and BEV) Conventional cab & Cab-Over. Trucks & tractors. Body-installation unlimited. Up to 26,000 LBS GVW and 52,000 LBS GVWR
*
77 Class 7 chassis Yes
No
Both Chassis Types (ICE and BEV) Conventional cab & Cab-Over. Trucks & tractors. Body-installation unlimited. Up to 33,000 LBS GCW and 66,000 LBS GVWR
*
78 Class 8 chassis Yes
No
Both Chassis Types (ICE and BEV) Conventional cab & Cab-Over.
Trucks & tractors. Body-installation unlimited. Up to 160,000 LBS GVWR.
*
79 Related equipment, accessories,
parts, upfitting, services, used chassis
and Class 3 chassis
Yes
No
Internal Combustion Engine fuel types (ICE) Peterbilt does not offer Class 3 chassis.
Table 16: Category 2 - Depth and Breadth of Offered Equipment Products and Services Indicate below if the listed types or classes of equipment, products, and services are offered within your proposal. Provide additional comments in the text box provided, as necessary.
Proposers seeking an award in Category 2, as defined herein, must include at least one solution offered within the scope of Category 2 for electric propulsion systems only. See RFP Section II. B. 1 for details.
We will not be submitting for Table 16: Category 2 - Depth and Breadth of Offered Equipment Products and Services Line
Item Category or Type Offered * Comments
80 Battery Electric Vehicle (BEV)
Class 4 Chassis
Yes
No
Peterbilt does not offer Class 4 chassis. *
81 Battery Electric Vehicle (BEV)
Class 5 Chassis
Yes
No
Peterbilt does not offer Class 5 chassis. *
82 Battery Electric Vehicle (BEV)
Class 6 Chassis
Yes
No
Class: 6
GCWR: 26,000 lbs.
Used for: Local Pickup, Delivery & Regional Haul/Beverage Max Horsepower: 355 hp (265kw) - 499 hp (372kw)
Front Axle & Suspension: 10,000 lbs.
Rear Axle & Suspension: 17,000 lbs.
Est Daily Range: 100, 150 or 200 Miles Per Charge
Minimum Charge Time: 2.1 Hours
Box Size Configurations: 24’, 26’, 30’
*
83 Battery Electric Vehicle (BEV)
Class 7 Chassis
Yes
No
Class: 7
GCWR: 33,000 lbs.
Used for: Local Pickup, Delivery & Regional Haul/Beverage Max Horsepower: 355 hp (265kw) - 499 hp (372kw)
Front Axle & Suspension: 12,000 lbs.
Rear Axle & Suspension: 21,000 lbs.
Est Daily Range: 100, 150 or 200 Miles Per Charge
Minimum Charge Time: 2.1 Hours
Box Size Configurations: 24’, 26’, 30’
*
84 Battery Electric Vehicle (BEV)
Class 8 Chassis
Yes
No
Model 579EV
Class: 8
GCWR: 82,000 lbs.
Used for: Regional Haul, Drayage
Max Horsepower: 670 hp (500kw)
Front Axle & Suspension: 12,000 - 14,600 lbs.
Rear Axle & Suspension: 40,000 lbs.
Est Daily Range: 150 Miles Per Charge
Minimum Charge Time: 3 Hours
Model 520EV
Class: 8
GCWR: 66,000 lbs.
Used for: Right-Hand Side Loader and Rear Loader Refuse Collection Max Horsepower: 670 hp (500kw)
Front Axle & Suspension: 20,000 - 23,000 lbs.
Rear Axle & Suspension: 46,000 lbs.
Est Daily Range: 80 - 120 Miles Per Charge (1,100 Bin Pickups) Minimum Charge Time: 3 Hours
*
85 Related equipment, accessories, parts, upfitting,
services, used chassis and Class 3 chassis
Yes
No
Peterbilt does not offer Class 3 chassis.
Table 17: Exceptions to Terms, Conditions, or Specifications Form Line Item 86. NOTICE: To identify any exception, or to request any modification, to Sourcewell standard Contract terms, conditions, or specifications, a Proposer must submit the proposed exception(s) or requested modification(s) via redline in the Contract Template provided in the “Bid Documents” section. Proposer must upload the redline in the “Requested Exceptions” upload field. All exceptions and/or proposed modifications are subject to review and approval by Sourcewell and will not automatically be included in the Contract.
Do you have exceptions or modifications to propose? Acknowledgement * Yes
No
Bid Number: RFP 032824 Vendor Name: Peterbilt Motors - MD Sales DocuSign Envelope ID: 9BB83347-9852-442D-ABE7-863BAFA32866
Documents
Ensure your submission document(s) conforms to the following:
1. Documents in PDF format are preferred. Documents in Word, Excel, or compatible formats may also be provided.
2. Documents should NOT have a security password, as Sourcewell may not be able to open the file. It is your sole responsibility to ensure that the uploaded document(s) are not either defective, corrupted or blank and that the documents can be opened and viewed by Sourcewell.
3. Sourcewell may reject any response where any document(s) cannot be opened and viewed by Sourcewell.
4. If you need to upload more than one (1) document for a single item, you should combine the documents into one zipped file. If the zipped file contains more than one (1) document, ensure each document is named, in relation to the submission format item responding to. For example, if responding to the Marketing Plan category save the document as “Marketing Plan.” Pricing - 00-2024 Peterbilt Pricing Example.JPG - Tuesday March 26, 2024 17:38:03 Financial Strength and Stability - 01 - PACCAR Annual Report.pdf - Tuesday March 26, 2024 17:38:15 Marketing Plan/Samples - 02 - Marketing Plan.pdf - Tuesday March 26, 2024 17:38:32 WMBE/MBE/SBE or Related Certificates - 05-Montana Peterbilt LLC-MBE.pdf - Tuesday March 26, 2024 17:39:01 Warranty Information - 03 Warranty Procedure Manual and Schedule.pdf - Tuesday March 26, 2024 17:39:26 Standard Transaction Document Samples (optional)
Requested Exceptions (optional)
Upload Additional Document - 00-Peterbilt Dealer Locations.xls - Tuesday March 26, 2024 17:40:44 Bid Number: RFP 032824 Vendor Name: Peterbilt Motors - MD Sales DocuSign Envelope ID: 9BB83347-9852-442D-ABE7-863BAFA32866
Addenda, Terms and Conditions
PROPOSER AFFIDAVIT AND ASSURANCE OF COMPLIANCE
I certify that I am the authorized representative of the Proposer submitting the foregoing Proposal with the legal authority to bind the Proposer to this Affidavit and Assurance of Compliance:
1. The Proposer is submitting this Proposal under its full and complete legal name, and the Proposer legally exists in good standing in the jurisdiction of its residence.
2. The Proposer warrants that the information provided in this Proposal is true, correct, and reliable for purposes of evaluation for contract award.
3. The Proposer, including any person assisting with the creation of this Proposal, has arrived at this Proposal independently and the Proposal has been created without colluding with any other person, company, or parties that have or will submit a proposal under this solicitation; and the Proposal has in all respects been created fairly without any fraud or dishonesty.
The Proposer has not directly or indirectly entered into any agreement or arrangement with any person or business in an effort to influence any part of this solicitation or operations of a resulting contract; and the Proposer has not taken any action in restraint of free trade or competitiveness in connection with this solicitation. Additionally, if Proposer has worked with a consultant on the Proposal, the consultant (an individual or a company) has not assisted any other entity that has submitted or will submit a proposal for this solicitation.
4. To the best of its knowledge and belief, and except as otherwise disclosed in the Proposal, there are no relevant facts or circumstances which could give rise to an organizational conflict of interest. An organizational conflict of interest exists when a vendor has an unfair competitive advantage or the vendor’s objectivity in performing the contract is, or might be, impaired.
5. The contents of the Proposal have not been communicated by the Proposer or its employees or agents to any person not an employee or legally authorized agent of the Proposer and will not be communicated to any such persons prior to Due Date of this solicitation.
6. If awarded a contract, the Proposer will provide to Sourcewell Participating Entities the equipment, products, and services in accordance with the terms, conditions, and scope of a resulting contract.
7. The Proposer possesses, or will possess before delivering any equipment, products, or services, all applicable licenses or certifications necessary to deliver such equipment, products, or services under any resulting contract.
8. The Proposer agrees to deliver equipment, products, and services through valid contracts, purchase orders, or means that are acceptable to Sourcewell Members. Unless otherwise agreed to, the Proposer must provide only new and first-quality products and related services to Sourcewell Members under an awarded Contract.
9. The Proposer will comply with all applicable provisions of federal, state, and local laws, regulations, rules, and orders.
10. The Proposer understands that Sourcewell will reject RFP proposals that are marked "confidential" (or "nonpublic," etc.), either substantially or in their entirety. Under Minnesota Statutes Section 13.591, subdivision 4, all proposals are considered nonpublic data until the evaluation is complete and a Contract is awarded. At that point, proposals become public data. Minnesota Statutes Section 13.37 permits only certain narrowly defined data to be considered a "trade secret," and thus nonpublic data under Minnesota's Data Practices Act.
11. Proposer its employees, agents, and subcontractors are not:
1. Included on the “Specially Designated Nationals and Blocked Persons” list maintained by the Office of Foreign Assets Control of the United States Department of the Treasury found at: https://www.treasury.gov/ofac/downloads/sdnlist.pdf;
2. Included on the government-wide exclusions lists in the United States System for Award Management found at: https://sam.gov/SAM/; or
3. Presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from programs operated by the State of Minnesota; the United States federal government or the Canadian government, as applicable; or any Participating Entity. Vendor certifies and warrants that neither it nor its principals have been convicted of a criminal offense related to the subject matter of this solicitation.
By checking this box I acknowledge that I am bound by the terms of the Proposer’s Affidavit, have the legal authority to submit this Proposal on behalf of the Proposer, and that this electronic acknowledgment has the same legal effect, validity, and enforceability as if I had hand signed the Proposal. This signature will not be denied such legal effect, validity, or enforceability solely because an electronic signature or electronic record was used in its formation. - Phillip Hall, National Account Manager, Peterbilt Motors Company The Proposer declares that there is an actual or potential Conflict of Interest relating to the preparation of its submission, and/or the Proposer foresees an actual or potential Conflict of Interest in performing the contractual obligations contemplated in the bid.
Yes No
The Bidder acknowledges and agrees that the addendum/addenda below form part of the Bid Document.
Check the box in the column "I have reviewed this addendum" below to acknowledge each of the addenda.
Bid Number: RFP 032824 Vendor Name: Peterbilt Motors - MD Sales DocuSign Envelope ID: 9BB83347-9852-442D-ABE7-863BAFA32866
File Name
I have reviewed the
below addendum and
attachments (if
applicable)
Pages
Addendum_7_Class 4-8 Chassis and Cabs _RFP_032824
Thu March 21 2024 08:45 AM
1 Addendum_6_Class 4-8 Chassis and Cabs _RFP_032824
Wed March 20 2024 12:36 PM
3 Addendum_5_Class 4-8 Chassis and Cabs _RFP_032824
Mon March 18 2024 12:01 PM
1 Addendum_4_Class 4-8 Chassis and Cabs _RFP_032824
Wed March 6 2024 09:38 AM
1 Addendum_3_Class 4-8 Chassis and Cabs _RFP_032824
Wed February 21 2024 04:08 PM
2 Addendum_2_Class 4-8 Chassis and Cabs _RFP_032824
Wed February 14 2024 04:12 PM
1 Addendum_1_Class 4-8 Chassis and Cabs _RFP_032824
Thu February 8 2024 04:24 PM
1 Bid Number: RFP 032824 Vendor Name: Peterbilt Motors - MD Sales DocuSign Envelope ID: 9BB83347-9852-442D-ABE7-863BAFA32866
Town Council Agenda Report
Date: February 24, 2026
To: Honorable Mayor and Town Council
Subject: AWARD DESIGN CONTRACT FOR THE BEAR VALLEY ROAD
CONNECTIVITY/BUS TURNOUT PROJECT
From: Todd Bodem, Town Manager
Submitted by: Richard Pedersen, Town Engineer
Engineering Division
Budgeted Item: Yes No N/A
RECOMMENDED ACTION
Award a Professional Services Contract to HRGreen for Design Services for the Bear Valley Road Connectivity project subject to “Approval as to Form” by the Town Attorney and “Approval as to Content” by the Town Manager.
BACKGROUND
The Town of Apple Valley was awarded an Active Transportation Program (ATP) grant from the San Bernardino County Transportation Authority (SBCTA) for the Bear Valley Road Connectivity project with the purpose to enhance safety, accessibility, and connectivity for pedestrians, cyclists, and transit users along the Bear Valley Road corridor between Itoya Vista Street to Flying Feather Road.
The project combines two distinct but complementary components:
Apple Bear Bus Stop Project: This component will convert an existing dirt pullout into a fully ADA-compliant bus turnout, including a concrete pad, shelter, companion seating, and a 10-foot-wide sidewalk connection. Located just east of Apple Valley Road, this stop serves VVTA Route 43 and is a critical access point for residents in a high-traffic area with limited pedestrian infrastructure.
Bear Valley Road Class I Bike Path Connectivity Project: This component will deliver a complete plans, specifications, and estimates (PS&E) package for a 10-foot-wide Class I multi-use path along the south side of Bear Valley Road, from Itoya Vista Street to Flying Feather Road. The path will close a major gap in the Town’s active transportation network, connecting key destinations such as Victor Valley College, Jess Ranch Marketplace, senior living communities, and multiple VVTA bus stops. The project identifies as a priority
in the Town’s Complete Streets Action Plan and SBCTA’s Countywide Active Transportation Plan (CATP).
ANALYSIS
On October 27, 2025, staff issued a Request for Proposals seeking a design engineering consultant to prepare the Plans, Specifications, Estimate, and Right of Way Services for the subject project. Staff received and reviewed eleven submissions based on the following criteria:
Understanding of the work to be done 30
Experience with similar kinds of work 25
Quality of staff for work to be done 25
Timeliness of projected project completion 10
Quality and completeness of proposal 10
On January 29, 2026, Town staff interviewed the top two candidates and selected HRGreen. Once the finalist was selected, their sealed cost proposal was opened, and their cost was determined to be in line with the grant’s allocated budget. Staff recommends that HRGreen be awarded a Professional Services Agreement for design and right of way services totaling $362,550 with a 10% contingency of $36,255, totaling overall $398,805.
FISCAL IMPACT
Funding for the project is included in the adopted Fiscal Year 2025/26 budget. The Active Transportation Program grant will provide funding up to $250,000 in reimbursable funds for design. The Town’s $250,000 required match will come from Measure I.
ATTACHMENTS
A. Project Exhibit.
B. Professional Services Agreement.
Project Start
Connect to newly constructed sidewalk @ Sprouts Farmers Market Town of Apple Valley Bear Valley Pathways Project Site Plan and Connections FOR REFERENCE ONLY Not to Scale Connect to newly constructed sidewalk @ Gas Station Connect to newly constructed sidewalk @ Sprouts Farmers Market Connect to sidewalk @ Apple Bear Center Apple Valley Rd Ityoa Vista Rd
Deep Creek Rd
Bear Valley Road
Flying Feather Rd Apple Bear Bus Stop
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TOWN OF APPLE VALLEY
PROFESSIONAL SERVICES AGREEMENT
1. PARTIES AND DATE.
This Agreement is made and entered into this 27th day of February, 2026, by and between the Town of Apple Valley, a municipal corporation organized under the laws of the State of California with its principal place of business at 14955 Dale Evans Parkway, Apple Valley, California 92307 (“Town”) and HRGreen Pacific, Inc., a corporation, with its principal place of business at 1260 Corona Pointe, Suite 305, Corona, CA 92879 ("Consultant"). Town and Consultant are sometimes individually referred to herein as "Party" and collectively as "Parties."
2. RECITALS.
2.1 Consultant.
Consultant desires to perform and assume responsibility for the provision of certain professional services required by the Town on the terms and conditions set forth in this Agreement. Consultant represents that it is experienced in providing Engineering and Design services to public clients, is licensed in the State of California, and is familiar with the plans of Town.
2.2 Project.
Town desires to engage Consultant to render such professional services for the Bear Valley Road Connectivity/Bus Turnout project ("Project") as set forth in this Agreement.
3. TERMS.
3.1 Scope of Services and Term.
3.1.1 General Scope of Services. Consultant promises and agrees to furnish to the Town all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the professional Engineering and Design consulting services necessary for the Project ("Services"). The Services are more particularly described in Exhibit "A" attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations.
3.1.2 Term. The term of this Agreement shall be from February 27, 2026 to February 27, 2027, unless earlier terminated as provided herein. Consultant shall complete the Services within the term of this Agreement and shall meet any other established schedules and deadlines. The Parties may, by mutual, written consent, extend the term of this Agreement if necessary to complete the Services.
3.2 Fees and Payments
3.2.1 Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth
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in Exhibit "C" attached hereto and incorporated herein by reference. The total compensation shall not exceed three hundred sixty-two thousand five hundred fifty ($362,550) without written approval of the Town Council or Town Manager as applicable. Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement.
3.2.2 Payment of Compensation. Consultant shall submit to Town a monthly invoice which indicates work completed and hours of Services rendered by Consultant. The invoice shall describe the amount of Services provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the invoice.
Town shall, within 30 days of receiving such invoice, review the invoice and pay all non-disputed and approved charges. If the Town disputes any of Consultant's fees, the Town shall give written notice to Consultant within thirty (30) days of receipt of an invoice of any disputed fees set forth therein. Payment shall not constitute acceptance of any Services completed by Consultant. The making of final payment shall not constitute a waiver of any claims by the Town for any reason whatsoever.
3.2.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any expenses unless authorized in writing by Town, or included in Exhibit "C" of this Agreement.
3.2.4 Extra Work. At any time during the term of this Agreement, Town may request that Consultant perform Extra Work. As used herein, "Extra Work" means any work which is determined by Town to be necessary for the proper completion of the Project, but which the Parties did not reasonably anticipate would be necessary at the execution of this Agreement.
Consultant shall not perform, nor be compensated for, Extra Work without written authorization from the Town.
3.2.5 Rate Increases. In the event that this Agreement is renewed pursuant to Section 3.1.2, the rate set forth in Exhibit “C” may be adjusted each year at the time of renewal as set forth in Exhibit “C.”
3.3 Responsibilities of Consultant.
3.3.1 Independent Contractor; Control and Payment of Subordinates. The Services shall be performed by Consultant or under its supervision. Consultant will determine the means, methods and details of performing the Services subject to the requirements of this Agreement. Town retains Consultant on an independent contractor basis and not as an employee. Any personnel performing the Services on behalf of Consultant shall not be employees of Town and shall at all times be under Consultant's exclusive direction and control. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance.
3.3.2 Schedule of Services. Consultant shall perform the Services in a prompt and timely manner and in accordance with the Schedule of Services set forth in Exhibit "B" attached hereto and incorporated herein by reference. Consultant represents that it has the professional and technical personnel required to perform the Services expeditiously. Upon request of Town, Consultant shall provide a more detailed schedule of anticipated performance
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to meet the Schedule of Services.
3.3.3 Conformance to Applicable Requirements. All work prepared by Consultant shall be subject to the approval of Town.
3.3.4 Substitution of Key Personnel. Consultant has represented to Town that certain key personnel will perform and coordinate the Services under this Agreement. Should one or more of such personnel become unavailable, Consultant may substitute other personnel of at least equal competence upon written approval of Town. In the event that Town and Consultant cannot agree as to the substitution of key personnel, Town shall be entitled to terminate this Agreement for cause. The key personnel for performance of this Agreement are as follows: Min Zhou PE, Chase Keys PE, Bob Young PE, Shirjeel Muhammad TE, Dan Shane PE, Art Casillas EIT, Carolina Fernandez EIT, Trent MacDonald and Jonathan Guzman PLS.
3.3.5 Town's Representative. The Town hereby designates Richard Pedersen, PE, or his/her designee, to act as its representative in all matters pertaining to the administration and performance of this Agreement ("Town's Representative"). Town's Representative shall have the power to act on behalf of the Town for review and approval of all products submitted by Consultant but not the authority to enlarge the Scope of Services or change the total compensation due to Consultant under this Agreement. The Town Manager shall be authorized to act on Town's behalf and to execute all necessary documents which enlarge the Scope of Services or change the Consultant's total compensation subject to the provisions contained in Section 3.2 of this Agreement. Consultant shall not accept direction or orders from any person other than the Town Manager, Town's Representative or his/her designee.
3.3.6 Consultant's Representative. Consultant hereby designates Chase Keys, PE, or his/her designee, to act as its representative for the performance of this Agreement ("Consultant's Representative"). Consultant's Representative shall have full authority to represent and act on behalf of the Consultant for all purposes under this Agreement. The Consultant's Representative shall supervise and direct the Services, using his/her best skill and attention, and shall be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.
3.3.7 Coordination of Services. Consultant agrees to work closely with Town staff in the performance of Services and shall be available to Town's staff, consultants and other staff at all reasonable times.
3.3.8 Standard of Care; Performance of Employees. Consultant shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Consultant represents and maintains that it is skilled in the professional calling necessary to perform the Services. Consultant warrants that all employees and subconsultants shall have sufficient skill and experience to perform the Services assigned to them. Consultant represents that it, its employees and subconsultants have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, and that such licenses and approvals shall be maintained throughout the term of this Agreement. Consultant shall perform, at its own cost and expense and without reimbursement from the Town, any services necessary to correct errors or omissions which are caused by the Consultant's failure to comply with the standard of care provided for herein. Any employee of the Consultant or its subconsultants who is determined by the Town to be uncooperative, incompetent, a threat to the
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adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the Town, shall be promptly removed from the Project by the Consultant and shall not be re-employed to perform any of the Services or to work on the Project.
3.3.9 Period of Performance.
3.3.9.1 Consultant shall perform and complete all Services under this Agreement within the term set forth in Section 3.1.2 above (“Performance Time”). Consultant shall also perform the Services in strict accordance with any completion schedule or Project milestones described in Exhibits “A” or “B” attached hereto, or which may be separately agreed upon in writing by the Town and Consultant (“Performance Milestones”). Consultant agrees that if the Services are not completed within the aforementioned Performance Time and/or pursuant to any such Performance Milestones developed pursuant to provisions of this Agreement, it is understood, acknowledged and agreed that the Town will suffer damage.
3.3.9.2 Neither Town nor Consultant shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the non-performing Party. For purposes of this Agreement, such circumstances include a Force Majeure Event. A Force Majeure Event shall mean an event that materially affects a Party’s performance and is one or more of the following: (1) Acts of God or other natural disasters; (2) terrorism or other acts of a public enemy; (3) orders of governmental authorities (including, without limitation, unreasonable and unforeseeable delay in the issuance of permits or approvals by governmental authorities that are required for the Services); and (4) pandemics, epidemics or quarantine restrictions. For purposes of this section, “orders of governmental authorities,” includes ordinances, emergency proclamations and orders, rules to protect the public health, welfare and safety, and other actions of a public agency applicable to the Services and Agreement.
3.3.9.3 Should a Force Majeure Event occur, the non-performing Party shall, within a reasonable time of being prevented from performing, give written notice to the other Party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement.
3.3.9.4 Delays shall not entitle Consultant to any additional compensation regardless of the Party responsible for the delay. Notwithstanding the foregoing in this section, the Town may still terminate this Agreement in accordance with the termination provisions of this Agreement.
3.3.10 Laws and Regulations; Employee/Labor Certification. Consultant shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services, including all Cal/OSHA requirements, and shall give all notices required by law. Consultant shall be liable for all violations of such laws and regulations in connection with the Services and this Agreement.
All violations of such laws and regulations shall be grounds for the Town to terminate the Agreement for cause.
3.3.10.1 Employment Eligibility; Consultant. Consultant certifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time and shall require all subconsultants
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and sub-subconsultants to comply with the same. Consultant certifies that it has not committed a violation of any such law within the five (5) years immediately preceding the date of execution of this Agreement, and shall not violate any such law at any time during the term of the Agreement.
3.3.10.2 Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subconsultant, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Consultant shall also comply with all relevant provisions of Town's Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted.
3.3.10.3 Air Quality. To the extent applicable, Consultant must fully comply with all applicable laws, rules and regulations in furnishing or using equipment and/or providing services, including, but not limited to, emissions limits and permitting requirements imposed by the South Coast Air Quality Management District (SCAQMD) and/or California Air Resources Board (CARB). Consultant shall indemnify Town against any fines or penalties imposed by SCAQMD, CARB, or any other governmental or regulatory agency for violations of applicable laws, rules and/or regulations by Consultant, its subconsultants, or others for whom Consultant is responsible under its indemnity obligations provided for in this Agreement.
3.3.10.4 Safety. Consultant shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Consultant shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed.
3.3.11 Insurance.
3.3.11.1 Time for Compliance. Consultant shall not commence work under this Agreement until it has provided evidence satisfactory to the Town that it has secured all insurance required under this section. In addition, Consultant shall not allow any subconsultant to commence work on any subcontract until it has provided evidence satisfactory to the Town that the subconsultant has secured all insurance required under this section. Failure to provide and maintain all required insurance shall be grounds for the Town to terminate this Agreement for cause.
3.3.11.2 Types of Insurance Required. As a condition precedent to the effectiveness of this Agreement for work to be performed hereunder, and without limiting the indemnity provisions of the Agreement, the Consultant, in partial performance of its obligations under such Agreement, shall procure and maintain in full force and effect during the term of the Agreement the following policies of insurance. If the existing policies do not meet the insurance requirements set forth herein, Consultant agrees to amend, supplement or endorse the policies to do so.
(A) Commercial General Liability: Commercial General Liability Insurance which affords coverage at least as broad as Insurance Services Office "occurrence" form CG 00 01, or the exact equivalent, with limits of not less than $1,000,000 per occurrence and no less than $2,000,000 in the general aggregate. Defense costs shall be paid in addition to
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the limits. The policy shall contain no endorsements or provisions (1) limiting coverage for contractual liability; (2) excluding coverage for claims or suits by one insured against another (cross-liability); (3) products/completed operations liability; or (4) containing any other exclusion(s) contrary to the terms or purposes of this Agreement. (B) Automobile Liability Insurance: Automobile Liability Insurance with coverage at least as broad as Insurance Services Office Form CA 00 01 covering "Any Auto" (Symbol 1), or the exact equivalent, covering bodily injury and property damage for all activities with limits of not less than $1,000,000 combined limit for each occurrence. (C) Workers' Compensation: Workers' Compensation
Insurance, as required by the State of California and Employer's Liability Insurance with a limit of not less than $1,000,000 per accident for bodily injury and disease. (D) Professional Liability (Errors & Omissions): Professional Liability insurance or Errors & Omissions insurance appropriate to Consultant’s profession with limits of not less than $1,000,000. Covered professional services shall specifically include all work to be performed under the Agreement and delete any exclusions that may potentially affect the work to be performed (for example, any exclusions relating to lead, asbestos, pollution, testing, underground storage tanks, laboratory analysis, soil work, etc.). If coverage is written on a claims-made basis, the retroactive date shall precede the effective date of the initial Agreement and continuous coverage will be maintained or an extended reporting period will be exercised for a period of at least five (5) years from termination or expiration of this Agreement.
3.3.11.3 Insurance Endorsements. Required insurance policies shall contain the following provisions, or Consultant shall provide endorsements on forms approved by the Town to add the following provisions to the insurance policies:
(A) Commercial General Liability: (1) Additional Insured: The Town, its officials, officers, employees, agents, and volunteers shall be additional insureds with regard to liability and defense of suits or claims arising out of the performance of the Agreement.
Additional Insured Endorsements shall not (1) be restricted to "ongoing operations"; (2) exclude "contractual liability"; (3) restrict coverage to "sole" liability of Consultant; or (4) contain any other exclusions contrary to the terms or purposes of this Agreement. For all policies of Commercial General Liability insurance, Consultant shall provide endorsements in the form of ISO CG 20 10 10 01 and 20 37 10 01 (or endorsements providing the exact same coverage) to effectuate this requirement. (2) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the Town except ten (10) days shall be allowed for non-payment of premium. (B) Automobile Liability. (1) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the Town except ten (10) days shall be allowed for nonpayment of premium. (C) Professional Liability (Errors & Omissions): 1) Cancellation:
Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the Town except ten (10) days shall be allowed for non-payment of premium. (2) Contractual Liability Exclusion Deleted: This insurance
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shall include contractual liability applicable to this Agreement. The policy must “pay on behalf of” the insured and include a provision establishing the insurer’s duty to defend. (D) Workers' Compensation: (1) Cancellation: Required
insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the Town except ten (10) days shall be allowed for non-payment of premium. (2) Waiver of Subrogation: A waiver of subrogation stating that the insurer waives all rights of subrogation against the Town, its officials, officers, employees, agents, and volunteers.
3.3.11.4 Primary and Non-Contributing Insurance. All policies of Commercial General Liability and Automobile Liability insurance shall be primary and any other insurance, deductible, or self-insurance maintained by the Town, its officials, officers, employees, agents, or volunteers shall not contribute with this primary insurance. Policies shall contain or be endorsed to contain such provisions.
3.3.11.5 Waiver of Subrogation. All required insurance coverages, except for the professional liability coverage, shall contain or be endorsed to waiver of subrogation in favor of the Town, its officials, officers, employees, agents, and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against Town, and shall require similar written express waivers and insurance clauses from each of its subconsultants.
3.3.11.6 Deductibles and Self-Insured Retentions. Any deductible or selfinsured retention must be approved in writing by the Town and shall protect the Town, its officials, officers, employees, agents, and volunteers in the same manner and to the same extent as they would have been protected had the policy or policies not contained a deductible or self-insured retention.
3.3.11.7 Evidence of Insurance. The Consultant, concurrently with the execution of the Agreement, and as a condition precedent to the effectiveness thereof, shall deliver either certified copies of the required policies, or original certificates on forms approved by the Town, together with all endorsements affecting each policy. Required insurance policies shall not be in compliance if they include any limiting provision or endorsement that has not been submitted to the Town for approval. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. At least fifteen (15 days) prior to the expiration of any such policy, evidence of insurance showing that such insurance coverage has been renewed or extended shall be filed with the Town. If such coverage is cancelled or reduced and not replaced immediately so as to avoid a lapse in the required coverage, Consultant shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the Town evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies.
3.3.11.8 Acceptability of Insurers. Each such policy shall be from a company or companies with a current A.M. Best's rating of no less than A:VII and authorized to transact business of insurance in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law.
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3.3.11.9 Enforcement of Agreement Provisions (non estoppel).
Consultant acknowledges and agrees that actual or alleged failure on the part of the Town to inform Consultant of non-compliance with any requirement imposes no additional obligation on the Town nor does it waive any rights hereunder.
3.3.11.10 Requirements Not Limiting. Requirement of specific coverage or minimum limits contained in this Section are not intended as a limitation on coverage, limits, or other requirement, or a waiver of any coverage normally provided by any insurance.
3.3.11.11 Additional Insurance Provisions
(A) The foregoing requirements as to the types and limits of insurance coverage to be maintained by Consultant, and any approval of said insurance by the Town, is not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by the Consultant pursuant to this Agreement, including but not limited to, the provisions concerning indemnification.
(B) If at any time during the life of the Agreement, any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, Town has the right but not the duty to obtain the insurance it deems necessary and any premium paid by Town will be promptly reimbursed by Consultant or Town will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, Town may cancel this Agreement.
(C) The Town may require the Consultant to provide complete copies of all insurance policies in effect for the duration of the Project. (D) Neither the Town nor any of its officials, officers, employees, agents or volunteers shall be personally responsible for any liability arising under or by virtue of this Agreement.
(E) The limits set forth herein shall apply separately to each insured against whom claims are made or suits are brought, except with respect to the limits of liability. Further the limits set forth herein shall not be construed to relieve the Consultant from liability in excess of such coverage, nor shall it limit the Consultant’s indemnification obligations to the Town and shall not preclude the Town from taking such other actions available to the Town under other provisions of the Agreement or law.
(F) Consultant shall report to the Town, in addition to Consultant’s insurer, any and all insurance claims submitted by Consultant in connection with the Services under this Agreement.
3.3.11.12 Insurance for Subconsultants. Consultant shall include all subconsultants engaged in any work for Consultant relating to this Agreement as additional insureds under the Consultant's policies, or the Consultant shall be responsible for causing subconsultants to purchase the appropriate insurance in compliance with the terms of these Insurance Requirements, including adding the Town, its officials, officers, employees, agents, and volunteers as additional insureds to the subconsultant's policies. All policies of Commercial General Liability insurance provided by Consultant’s subconsultants performing work relating to this Agreement shall be endorsed to name the Town, its officials, officers, employees, agents and
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volunteers as additional insureds using endorsement form ISO CG 20 38 04 13 or an endorsement providing equivalent coverage. Consultant shall not allow any subconsultant to commence work on any subcontract relating to this Agreement until it has received satisfactory evidence of subconsultant’s compliance with all insurance requirements under this Agreement, to the extent applicable. The Consultant shall provide satisfactory evidence of compliance with this section upon request of the Town.
3.3.12 Water Quality Management and Compliance. Consultant shall keep itself and all subcontractors, staff, and employees fully informed of and in compliance with all local, state and federal laws, rules and regulations that may impact, or be implicated by the performance of the Services including, without limitation, all applicable provisions of the Town’s ordinances regulating water quality and storm water; the Federal Water Pollution Control Act (33 U.S.C. § 1251, et seq.); the California Porter-Cologne Water Quality Control Act (Water Code § 13000 et seq.); and any and all regulations, policies, or permits issued pursuant to any such authority.
Consultant must additionally comply with the lawful requirements of the Town, and any other municipality, drainage district, or other local agency with jurisdiction over the location where the Services are to be conducted, regulating water quality and storm water discharges. Town may seek damages from Consultant for delay in completing the Services caused by Consultant’s failure to comply with the laws, regulations and policies described in this section, or any other relevant water quality law, regulation, or policy.
3.4 Labor Code Requirements.
3.4.1 Prevailing Wages. Consultant is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on "public works" and "maintenance" projects. If the Services are being performed as part of an applicable "public works" or "maintenance" project, as defined by the Prevailing Wage Laws, and if the total compensation is $1,000 or more, Consultant agrees to fully comply with such Prevailing Wage Laws. Town shall provide Consultant with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Consultant shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at the Consultant's principal place of business and at the project site. It is the intent of the parties to effectuate the requirements of sections 1771, 1774, 1775, 1776, 1777.5, 1813, and 1815 of the Labor Code within this Agreement, and Consultant shall therefore comply with such Labor Code sections to the fullest extent required by law. Consultant shall defend, indemnify and hold the Town, its officials, officers, employees, agents, and volunteers free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.
3.4.2 Registration/DIR Compliance. If the Services are being performed on a public works project of over $25,000 when the project is for construction, alteration, demolition, installation, or repair work, or a public works project of over $15,000 when the project is for maintenance work, in addition to the foregoing, then pursuant to Labor Code sections 1725.5 and 1771.1, the Consultant and all subconsultants must be registered with the Department of Industrial Relations (“DIR”). Consultant shall maintain registration for the duration of the Project and require the same of any subconsultants. This Project may also be subject to compliance monitoring and enforcement by the DIR. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements, including the submission of payroll
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records directly to the DIR. Any stop orders issued by the DIR against Consultant or any subconsultant that affect Consultant’s performance of services, including any delay, shall be Consultant’s sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered Consultant caused delay and shall not be compensable by the Town. Consultant shall defend, indemnify and hold the Town, its officials, officers, employees and agents free and harmless from any claim or liability arising out of stop orders issued by the DIR against Consultant or any subconsultant.
3.4.3 Labor Certification. By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services.
3.5 Accounting Records.
3.5.1 Maintenance and Inspection. Consultant shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of Town during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement.
3.6 General Provisions.
3.6.1 Termination of Agreement.
3.6.1.1 Grounds for Termination. Town may, by written notice to Consultant, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Consultant of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon termination, Consultant shall be compensated only for those services which have been adequately rendered to Town, and Consultant shall be entitled to no further compensation. Consultant may not terminate this Agreement except for cause.
3.6.1.2 Effect of Termination. If this Agreement is terminated as provided herein, Town may require Consultant to provide all finished or unfinished Documents and Data and other information of any kind prepared by Consultant in connection with the performance of Services under this Agreement. Consultant shall be required to provide such document and other information within fifteen (15) days of the request.
3.6.1.3 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, Town may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated.
3.6.2 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose:
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Consultant: HRGreen Pacific, Inc
1260 Corona Pointe, Suite 305
Corona, CA, 92879
ATTN: Chase Keys, PE
Town: Town of Apple Valley
14955 Dale Evans Parkway
Apple Valley, California 92307
ATTN: Richard Pedersen, PE
Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.
3.6.3 Ownership of Materials and Confidentiality.
3.6.3.1 Documents & Data; Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for Town to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement ("Documents & Data"). All Documents & Data shall be and remain the property of Town, and shall not be used in whole or in substantial part by Consultant on other projects without the Town’s express written permission. Within thirty (30) days following the completion, suspension, abandonment or termination of this Agreement, Consultant shall provide to Town reproducible copies of all Documents & Data, in a form and amount required by Town. Town reserves the right to select the method of document reproduction and to establish where the reproduction will be accomplished. The reproduction expense shall be borne by Town at the actual cost of duplication. In the event of a dispute regarding the amount of compensation to which the Consultant is entitled under the termination provisions of this Agreement, Consultant shall provide all Documents & Data to Town upon payment of the undisputed amount. Consultant shall have no right to retain or fail to provide to Town any such documents pending resolution of the dispute. In addition, Consultant shall retain copies of all Documents & Data on file for a minimum of fifteen (15) years following completion of the Project, and shall make copies available to Town upon the payment of actual reasonable duplication costs.
Before destroying the Documents & Data following this retention period, Consultant shall make a reasonable effort to notify Town and provide Town with the opportunity to obtain the documents.
3.6.3.2 Subconsultants. Consultant shall require all subconsultants to agree in writing that Town is granted a non-exclusive and perpetual license for any Documents & Data the subconsultant prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data. Consultant makes no such representation and warranty in regard to Documents & Data which were prepared by design professionals other than Consultant or its subconsultants, or those provided to Consultant by the Town.
3.6.3.3 Right to Use. Town shall not be limited in any way in its use or reuse of the Documents and Data or any part of them at any time for purposes of this Project or
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another project, provided that any such use not within the purposes intended by this Agreement or on a project other than this Project without employing the services of Consultant shall be at Town’s sole risk. If Town uses or reuses the Documents & Data on any project other than this Project, it shall remove the Consultant’s seal from the Documents & Data and indemnify and hold harmless Consultant and its officers, directors, agents and employees from claims arising out of the negligent use or re-use of the Documents & Data on such other project. Consultant shall be responsible and liable for its Documents & Data, pursuant to the terms of this Agreement, only with respect to the condition of the Documents & Data at the time they are provided to the Town upon completion, suspension, abandonment or termination. Consultant shall not be responsible or liable for any revisions to the Documents & Data made by any party other than Consultant, a party for whom the Consultant is legally responsible or liable, or anyone approved by the Consultant.
3.6.3.4 Indemnification. Consultant shall defend, indemnify and hold the Town, its directors, officials, officers, employees, volunteers and agents free and harmless, pursuant to the indemnification provisions of this Agreement, for any alleged infringement of any patent, copyright, trade secret, trade name, trademark, or any other proprietary right of any person or entity in consequence of the use on the Project by Town of the Documents & Data, including any method, process, product, or concept specified or depicted.
3.6.3.5 Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents & Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without the prior written consent of Town, be used by Consultant for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use Town's name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of Town.
3.6.3.6 Confidential Information. The Town shall refrain from releasing Consultant’s proprietary information ("Proprietary Information") unless the Town's legal counsel determines that the release of the Proprietary Information is required by the California Public Records Act or other applicable state or federal law, or order of a court of competent jurisdiction, in which case the Town shall notify Consultant of its intention to release Proprietary Information.
Consultant shall have five (5) working days after receipt of the release notice to give Town written notice of Consultant's objection to the Town's release of Proprietary Information. Consultant shall indemnify, defend and hold harmless the Town, and its officers, directors, employees, and agents from and against all liability, loss, cost or expense (including attorney’s fees) arising out of a legal action brought to compel the release of Proprietary Information. Town shall not release the Proprietary Information after receipt of an objection notice unless either: (1) Consultant fails to fully indemnify, defend (with Town's choice of legal counsel), and hold Town harmless from any legal action brought to compel such release; and/or (2) a final and non-appealable order by a court of competent jurisdiction requires that Town release such information.
3.6.4 Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary,
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appropriate or convenient to attain the purposes of this Agreement.
3.6.5 Indemnification.
3.6.5.1 To the fullest extent permitted by law, Consultant shall defend (with counsel of Town’s choosing), indemnify and hold the Town, its officials, officers, employees, volunteers, and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Consultant’s Services, the Project or this Agreement, including without limitation the payment of all damages, expert witness fees and attorney’s fees and other related costs and expenses except such loss or damage caused by the sole negligence or willful misconduct of the Town. Consultant's obligation to indemnify shall survive expiration or termination of this Agreement and shall not be restricted to insurance proceeds, if any, received by Consultant, the Town, its officials, officers, employees, agents, or volunteers.
3.6.5.2 If Consultant’s obligation to defend, indemnify, and/or hold harmless arises out of Consultant’s performance as a “design professional” (as that term is defined under Civil Code section 2782.8), then, and only to the extent required by Civil Code section 2782.8, which is fully incorporated herein, Consultant’s indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, and, upon Consultant obtaining a final adjudication by a court of competent jurisdiction, Consultant’s liability for such claim, including the cost to defend, shall not exceed the Consultant’s proportionate percentage of fault.
3.6.6 Entire Agreement. This Agreement contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements.
3.6.7 Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in San Bernardino County. In addition to any and all contract requirements pertaining to notices of and requests for compensation or payment for extra work, disputed work, claims and/or changed conditions, Consultant must comply with the claim procedures set forth in Government Code sections 900 et seq. prior to filing any lawsuit against the Town. Such Government Code claims and any subsequent lawsuit based upon the Government Code claims shall be limited to those matters that remain unresolved after all procedures pertaining to extra work, disputed work, claims, and/or changed conditions have been followed by Consultant. If no such Government Code claim is submitted, or if any prerequisite contractual requirements are not otherwise satisfied as specified herein, Consultant shall be barred from bringing and maintaining a valid lawsuit against the Town.
3.6.8 Time of Essence. Time is of the essence for each and every provision of this Agreement.
3.6.9 Town's Right to Employ Other Consultants. Town reserves right to employ other consultants in connection with this Project.
3.6.10 Successors and Assigns. This Agreement shall be binding on the
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successors and assigns of the parties.
3.6.11 Assignment; Subcontracting. Consultant shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of the Town, which may be withheld for any reason. Any attempt to so assign or so transfer without such consent shall be void and without legal effect and shall constitute grounds for termination. Consultant shall not subcontract any portion of the Services required by this Agreement, except as expressly stated herein, without prior written approval of Town.
Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement.
3.6.12 Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not work days. All references to Consultant include all personnel, employees, agents, and subconsultants of Consultant, except as otherwise specified in this Agreement. All references to Town include its elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.
3.6.13 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.
3.6.14 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise.
3.6.15 No Third-Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties.
3.6.16 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.
3.6.17 Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. Consultant further agrees to file, or shall cause its employees or subconsultants to file, a Statement of Economic Interest with the Town’s Filing Officer as required under state law in the performance of the Services. For breach or violation of this warranty, Town shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of Town, during the term of his or her service with Town, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.
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3.6.18 Authority to Enter Agreement. Consultant has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party.
3.6.19 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.
3.6.20 Survival. All rights and obligations hereunder that by their nature are to continue after any expiration or termination of this Agreement, including, but not limited to, the indemnification obligations, shall survive any such expiration or termination. [SIGNATURES ON NEXT PAGE]
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SIGNATURE PAGE TO PROFESSIONAL SERVICES AGREEMENT
BETWEEN THE TOWN OF APPLE VALLEY
AND HRGREEN PACIFIC, INC.
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.
TOWN OF APPLE VALLEY
By:
Todd Bodem
Town Manager
ATTEST:
By:
La Vonda M-Pearson
Director of Government Services/Town
Clerk
APPROVED AS TO FORM:
By:
Thomas A. Rice, Best Best & Krieger LLP
Town Attorney
HRGREEN PACIFIC, INC.
By:
Its:
Printed Name:
By:
Its:
Printed Name:
BEAR VALLEY ROAD CONNECTVITY / BUS TURNOUT | TOWN OF APPLE VALLEY 1
TECHNICAL SCOPE OF WORK
TASK 1 – PROJECT MANAGEMENT
Kick-Off Meeting & Work Plan – Conduct a kick-off meeting with Town staff, VVTA, and stakeholders to confirm objectives, deliverables, and data needs.
Project Schedule & Controls – Develop and maintain a detailed project schedule identifying critical path tasks and review periods.
Progress Reporting & Meetings – HR Green will submit monthly progress reports summarizing completed work, upcoming tasks, and potential risks. Bi-weekly (or as-needed) coordination meetings (virtual) will be held with Town staff to confirm deliverable status, approvals, and budget tracking.
Agency and Stakeholder Coordination – Our project manager will serve as the single point of contact for all interagency coordination with the Victor Valley Transit Authority (VVTA), franchise utilities, adjacent property owners, and other stakeholders. Coordination will focus on clearances, utility adjustments, and ADA tie-ins to ensure constructability.
Quality Assurance / Quality Control (QA/QC) – HR Green will implement its corporate QA/QC Program, conducting independent design reviews at all deliverable stages. All review comments and resolutions will be documented and included in the project file.
Risk and Cost Management – A risk register will track potential schedule or cost impacts, including utility relocations, ROW constraints, or permitting delays. HR Green will recommend proactive mitigation and value-engineering alternatives to maintain alignment with Town and VVTA budgets.
Document Control and Deliverables – All deliverables will be provided in digital (PDF, CAD, Word, Excel) and hard-copy formats as requested by the Town. HR Green will maintain a master submittal register documenting file versions, transmittals, and approvals. Provide an organized project close-out package with as-built markups, utility coordination files, and QA/QC certification.
Deliverables:
• Project Management Plan including detailed schedule
• Monthly progress reports
• Meeting agendas and minutes
• Project close-out package
TASK 2 — PHASE 1: APPLE BEAR BUS STOP
Site Investigation and Data Collection – HR Green will collect all available as-built information for the site and conduct a thorough site investigation to identify existing conditions and potential conflicts. Topographic survey for the site will be collected from the road centerline to the
BEAR VALLEY ROAD CONNECTVITY / BUS TURNOUT | TOWN OF APPLE VALLEY 2 southerly ROW in 50’ cross sections. Survey base sheets will be prepared with collected survey data and ROW mapping per current San Bernardino County assessor maps or available parcel maps, tract maps, and record of surveys.
CEQA Clearance – This scope assumes a CEQA Notice of Exemption. We will prepare a brief technical memo to accompany the Notice of Exemption. No studies are included in those scope, nor are they anticipated.
Final Engineering Design – HR Green will prepare final engineering plans based on the grant application concepts, designing a fully ADA-compliant bus turnout, concrete pad, shelter, and 10-foot-wide sidewalk connection in accordance with the provided VVTA Bus Stop Guidelines.
Utility Coordination – HR Green will identify and coordinate with all utility owners for the potential relocation or adjustment of any infrastructure conflicting with the bus stop improvements. Three separate notifications may be sent: 1st – Shortly after notice to proceed requesting utility information, 2nd - After the completion of the preliminary plans to confirm proper location of existing facilities and serve as a “Notice to Prepare to Relocate” if deemed necessary, 3rd - After completion of 100% plans and serve as the “Notice to Relocate Immediately” if deemed necessary. Copies of all communication with the utility companies and the utility disposition matrix will be kept throughout the project and will be submitted to the City with each progress submittal.
PS&E – HR Green will prepare a complete 100% PS&E package for the bus stop, including detailed plans, technical specifications, and a comprehensive engineer's cost estimate. Plan sheets will include: Title Sheet, Index Sheet, Typical Sections, Details, Plan and Profile Improvements.
Bidding Support – HR Green will provide support during the construction bidding phase, which includes responding to bidder inquiries (RFIs) and preparing and issuing any necessary addenda.
Construction Engineering Support – HR Green will provide support services during the construction phase, including attending the pre-construction meeting, responding to contractor RFIs, reviewing material submittals, and making plan revisions as needed.
Deliverables:
• Field evaluation report with photos
• Base maps and inventory
• Utility notification letters
• Copies of utility correspondence
• Utility coordination matrix
• CEQA Notice of Exemption
• 100% PS&E
• Final Bid Ready PS&E
• Responses to Contractor RFIs
• Addenda as Needed
• Pre-Bid Meeting Attendance and Minutes
BEAR VALLEY ROAD CONNECTVITY / BUS TURNOUT | TOWN OF APPLE VALLEY 3 TASK 3 — PHASE 2: BEAR VALLEY ROAD CLASS I BIKE PATH
Site Investigation and Data Collection – HR Green will collect all available as-built information for the site and conduct a thorough site investigation to identify existing conditions and potential conflicts. Topographic survey for the site will be collected from the road centerline to the southerly ROW in 50’ cross sections. Survey base sheets will be prepared with collected survey data and ROW mapping per current San Bernardino County assessor maps or available parcel maps, tract maps, and record of surveys.
Limited Geotechnical Investigation – Our team will perform 5 hand augers along the bike path to 5-10 feet deep. We will call 811 and do a private locate. Hand augers are recommended due to the overhead power lines. We will take drive samples and do limited lab testing (moistures, densities, gradations) and prepare a short report with grading recommendations for the cut/fill slopes around the bike path. This scope assumes a no-fee encroachment permit will be provided by the Town.
Preliminary (30%) design for ATP Cycle 8 grant application – HR Green will develop 30% preliminary design plans showing the proposed alignment and typical sections. This task includes preparing all necessary draft exhibits, maps, technical data, and forecasted cost estimates to actively support the Town's ATP Cycle 8 grant application. This scope also includes the necessary exhibits to identify potential easements needed for the construction of the improvements.
CEQA and NEPA Clearance – This scope of work assumes a CEQA Initial Study (IS) and NEPA Categorical Exclusion (CE). Studies anticipated and included in this scope are air quality and greenhouse gas, cultural resources, and biological resources. For CEQA, we will first complete a draft IS for Town review. We will then finalize the IS per any Town comments and distribute to the necessary agencies. We will then prepare the Notice of Intent (NOI) and Notice of Determination (NOD) for the IS/MND and transmit to the State Clearinghouse for posting.
Town staff shall provide our team with any comment letters received during the IS comment period. We will then prepare responses to these comments. For NEPA services, we will first prepare the draft PES for Town review. We will then finalize the PES for submittal to Caltrans Local Assistance. After receiving final comments from Caltrans we will prepare the PES to address all comments received. This scope includes coordination with Caltrans for the CE adoption and minimal document drafting.
Final Engineering Design – After Town approval of preliminary plans, HR Green will prepare final engineering plans for the 10-foot-wide Class I bike path, including all paving, grading, and drainage plans; striping modifications (limited to U-haul frontage), ADA-compliant curb ramps; and pedestrian-focused signal upgrades.
Utility Coordination – HR Green will identify and coordinate with all utility owners for the potential relocation or adjustment of any infrastructure conflicting with the bus stop improvements. Three separate notifications may be sent: 1st – Shortly after notice to proceed requesting utility information, 2nd - After the completion of the preliminary plans to
BEAR VALLEY ROAD CONNECTVITY / BUS TURNOUT | TOWN OF APPLE VALLEY 4 confirm proper location of existing facilities and serve as a “Notice to Prepare to Relocate” if deemed necessary, 3rd - After completion of 100% plans and serve as the “Notice to Relocate Immediately” if deemed necessary. Copies of all communication with the utility companies and the utility disposition matrix will be kept throughout the project and will be submitted to the City with each progress submittal.
PS&E – HR Green will prepare a complete 100% PS&E package for the bike path, including detailed plans, technical specifications, and a comprehensive engineer's cost estimate. Plan sheets will include: Title Sheet, Index Sheet, Typical Sections, Details, Plan and Profile Improvements with grading details, Signing and Striping, and Signal Modifications.
Deliverables:
• Field evaluation report with photos
• Base maps and inventory
• Geotechnical report
• Utility notification letters
• Copies of utility correspondence
• Utility coordination matrix
• 30% preliminary plans
• Easement identification exhibits
• Environmental studies (AQ/GHG, Bio, Cultural)
• CEQA IS/MND
• NEPA PES
• 100% PS&E
• Final Bid Ready PS&E
TASK 4 — GRANT APPLICATION SUPPORT
HR Green will serve as both the technical lead and funding strategist to position the Bear Valley Road Class I Bike Path Project for success under ATP Cycle 8 and SBCTA-administered MPO funding. Our team will combine engineering readiness with funding alignment, ensuring the project not only meets design and safety objectives but also scores highly under Caltrans and CTC evaluation criteria.
Our approach focuses on two actionable strategies:
1. Grant Positioning and Documentation: HR Green will develop all engineering exhibits, cost estimates, and scope narratives in full compliance with ATP and MPO scoring rubrics. We will integrate measurable safety data, disadvantaged community mapping, and project phasing documentation to clearly demonstrate eligibility and competitiveness. HR Green will provide technical data and current forecasted cost estimates.
2. Leverage and Partnership Coordination: Our team will coordinate directly with VVTA, SBCTA, and Caltrans District 8 to confirm project consistency with Connect SoCal 2024, SBCTA’s Active Transportation Plan, and local Complete Streets policies. This alignment enhances scoring for regional collaboration.
BEAR VALLEY ROAD CONNECTVITY / BUS TURNOUT | TOWN OF APPLE VALLEY 5 Through this integrated approach, HR Green will deliver both a grant-ready design package and a compelling funding narrative, maximizing the Town’s competitiveness for ATP and MPO awards while ensuring that every design decision supports long-term maintenance efficiency and lifecycle cost savings.
Deliverables:
• Exhibits, maps and other visual aids
• Cost estimates
• Grant application assistance
OPTIONAL TASK — EASEMENT ACQUISITION SERVICES
This scope assumes up to 10 parcels will require easements for construction of the bike path.
Our team will first obtain preliminary title reports for the affected properties. We will then provide an opinion of fair market value in the form of an appraisal report. After the appraisals we will prepare purchase offer documents including an offer letter, appraisal report, and list of compensable items, in accordance with state or federal regulations. We will then present the written offer to the property owner and begin to negotiate for the purchase of property rights in good faith. Once signatures from the property owners are obtained, we will open escrow and oversee the escrow process to close. This scope of work assumes that federal funding is involved, therefore we have also included appraisal review reports and Caltrans ROW certification.
OPTIONAL TASK — UTILITY POTHOLING
Should this become necessary after preliminary design and utility coordination, HR Green can coordinate with a subcontractor to perform targeted utility potholes to confirm/verify horizontal and vertical location of existing utilities in the field.
HR GREEN - FEE PROPOSAL DETAIL - R1
PROJECT NAME: BEAR VALLEY ROAD CONNECTIVITY / BUS TURNOUT PROJECT NUMBER: 2503524 CLIENT: TOWN OF APPLE VALLEY CLIENT CONTACT: GEORGY HERRARTE PROJECT MANAGER: CHASE KEYS 20 123 52 70 240 222 180 410
$ 325.00 $ 260.00 $ 280.00 $ 240.00 $ 195.00 $ 190.00 $ 180.00 $ 145.00 6,500.00$ 31,980.00$ 14,560.00$ 16,800.00$ 46,800.00$ 42,180.00$ 32,400.00$ 59,450.00$ 250,670.00$ 4,000.00$ 107,880.00$ 362,550.00 $
0.025930506 0.127578091 0.058084334 0.06702039 0.18669964 0.168269039 0.1292536 0.237164399 0% 0% Hartnett Keys Young Shane, Fernandez Casillas MacDonald Ye, Diaz MacDonald/Procac cio/Pangco TASK DESCRIPTION OF TASK PIC PROJ MGR QA/QC SR ENGR LEAD DSNR PROJ DSNR ASSOC ENGR STAFF ENGR Reimbursables Sub Total Total
TASK 1 PROJECT MANAGEMENT, COORDINATION, AND MEETINGS 33,500.00$ 500.00$ - $ 34,000.00$ 20 60 24 0 24 0 0 0 500.00 - TASK 2 APPLE BEAR BUS STOP PROJECT 36,920.00$ 1,000.00$ 8,000.00$ 45,920.00$ 0 13 4 0 74 62 20 18 1,000.00 8,000.00
2.1 Site Investigation and Data Collection 3,580.00$ 500.00$ 1,500.00$ 5,580.00$ 8 8 4 500.00 1,500.00 Fomotor
2.2 CEQA Clearance 780.00$ -$ 6,500.00$ 7,280.00$ 4 6,500.00 Terra Nova2.3 Final Engineering Design 13,100.00$ -$ -$ 13,100.00$ 4 2 20 402.4 Utility Coordination 1,590.00$ -$ -$ 1,590.00$ 1 2 2 42.5 PS&E 6,260.00$ 500.00$ -$ 6,760.00$ 2 2 16 4 4 4 500.00 2.6 Bidding Support 3,870.00$ -$ -$ 3,870.00$ 2 8 6 2 22.7 Construction Engineering Support 7,740.00$ -$ -$ 7,740.00$ 4 16 12 4 4 TASK 3 BEAR VALLEY ROAD CLASS I BIKE PATH 164,770.00$ 1,500.00$ 99,880.00$ 266,150.00$ 0 42 24 30 142 140 160 392 1,500.00 99,880.00
3.1 Site Investigation and Data Collection 3,580.00$ 500.00$ 18,480.00$ 22,560.00$ 8 8 4 500.00 18,480.00 Fomotor
3.2 Limited Geotechnical Investigation 780.00$ -$ 9,300.00$ 10,080.00$ 4 9,300.00 Terracon3.3 Preliminary Design 38,440.00$ -$ -$ 38,440.00$ 12 4 40 40 40 80
3.4 CEQA and NEPA Clearance 1,820.00$ -$ 72,100.00$ 73,920.00$ 4 4 72,100.00 Terra Nova
3.5 Final Engineering Design 102,380.00$ -$ -$ 102,380.00$ 20 16 30 60 80 100 280
3.6 Utility Coordination 5,250.00$ -$ -$ 5,250.00$ 2 2 8 20
3.7 PS&E 12,520.00$ 1,000.00$ -$ 13,520.00$ 4 4 24 20 4 8 1,000.00 TASK 4 GRANT APPLICATION SUPPORT 15,480.00$ 1,000.00$ -$ 16,480.00$ 0 8 0 40 0 20 0 0 1,000.00 - TASK X OPTIONAL ITEMS 6,680.00$ -$ 145,138.00$ 151,818.00$ 0 8 0 0 8 16 0 0 - Easement Acquisition Services 6,680.00$ -$ 143,388.00$ 150,068.00$ 8 8 16 143,388.00 EPIC + Fomotor Utility Potholing (Per Each) -$ -$ 1,750.00$ 1,750.00$ 1,750.00 TBD Exclusions / AssumptionsPermit or other agency fees are not includedTraffic analysis is not includedTraffic control/handling plans are not includedPhase 2 design scope is limited to the bike path only. Roadway improvements, such as curb and gutter work or pavement patching, are not included.Bid support for Phase 1 is limited to the hours shown aboveConstruction engineering support for Phase 1 is limited to the hours shown aboveBid/construction engineering support is not included for Phase 2 due to not currently being funded for construction Grant support is limited to the hours shown aboveTraffic signal modifications are limited to pedestrian/bicyclists upgrades and not a complete signal replacement/upgradeIf the project duration is extended, we reserve the right to renegotiate project management fees and address the impacts through an amendmentEasement acquisistion is limited to 10 parcels maximumEasement acquisistion is limited to 48 hours of coordination per each individual propertySigning and striping revisions are limited to the frontage of the U-haul facility with additional room to tie back to existing stripingOther items not specifically mentioned above or the agreed upon scope of work ODC Task Total Subs Task Total Task Total
EXPENSES
TOTAL HOURS
Subs
COST PER HOUR/UNIT (CHARGE-OUT RATE) TOTAL LABOR COST
TOTAL PROJECT COSTS
% OF TOTAL LABOR COST
Labor Task Total
1317
PROJECT MANAGEMENT, COORDINATION, AND MEETINGS
PHASE 1 - APPLE BEAR BUS STOP
Site Investigation and Data CollectionFinal Engineering Design City Review
Utility CoordinationPS&EBidding Support
PHASE 2 - BEAR VALLEY ROAD CLASS I BIKE PATH
Site Investigation and Data CollectionPreliminary Design City Review
Final Engineering Design
City Review
Utility CoordinationPS&E
GRANT APPLICATION SUPPORT
LEGEND
Task SummaryHR Green Phase/TaskCity Review Time
Project Phases and Tasks FEB SEPMAR APR
2026
JUNMAY JUL AUG
Town Council Agenda Report
Date: February 24, 2026
To: Honorable Mayor and Town Council
Subject: AWARD A PROFESSIONAL SERVICES AGREEMENT TO CONDUCT
STRATEGIC VISION PLANNING SERVICES
From: Todd Bodem, Town Manager
Submitted by: Julie Ryan, Special Projects Manager
Town Manager Department
Budgeted Item: Yes No N/A
RECOMMENDED ACTION
It is recommended that the Town Council award a Professional Services Agreement to Harness Strategy LLC in an amount not to exceed $176,000 to facilitate development of the Town’s Vision 2035 Strategic Plan through public opinion research, community engagement, and leadership alignment subject to “Approval as to Form” by the Town Attorney and “Approval as to Content” by the Town Manager.
BACKGROUND
In April 2012, the Town Council and staff participated in a workshop with consultants to review the Town’s progress on Vision 2020 and revisit the goals of the document in light of the current economic climate. Based on the results of the workshop, the consultant compiled an updated list of priorities and core values resulting in Vision 2020.
ANALYSIS
The development of a Vision Plan is a disciplined process that requires input from all levels in the organization and stakeholders within the community. The Vision Plan is a guide and planning document that establishes the work plan for staff and assists with the allocation of sufficient fiscal and personnel resources during the Town’s annual budget process necessary to accomplish the work of the organization.
Community visioning is both a process and a product. The process may give residents the opportunity to express what they value about their community and to develop a consensus on what they would like to change or preserve. During this process, residents can discuss their ideas on what they would like their community to look and feel like in the next 10 years.
On January 6, 2026, staff issued a Request for Proposals (RFP) seeking proposals from qualified firms with experience in conducting public opinion research, communicating with the public, and developing strategic recommendations for the Town’s Vision 2035 Strategic Plan, building on the accomplishments and structure of the prior Vision 2020.
Five (5) consulting firms submitted proposals by the date specified in the RFP. Staff reviewed the five submissions and concluded upon review that Harness Strategy LLC is the most qualified to proceed with the project for the following reasons:
Harness Strategy supports local governments, utilities, and other public-serving organizations.
Provides a hands-on approach to community engagement that requires regional experience, knowledge, and proximity.
An industry leader in developing an approach and methodology for public opinion research, political strategy, and campaign experience at all different levels.
If awarded, the firm will begin in March upon execution of an agreement.
FISCAL IMPACT
Partial funding for this project has been appropriated under FY 2025-26 account number 10011001 720010, with additional appropriation required at mid-year budget.
ATTACHMENTS
A. Professional Services Agreement
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TOWN OF APPLE VALLEY
PROFESSIONAL SERVICES AGREEMENT
1. PARTIES AND DATE.
This Agreement is made and entered into this 24th day of February, 2026, by and between the Town of Apple Valley, a municipal corporation organized under the laws of the State of California with its principal place of business at 14955 Dale Evans Parkway, Apple Valley, California 92307 (“Town”) and Harness Strategy a Limited Liability Company (LLC), with its principal place of business at 2644 N Gaylord Street, Denver, CO 80205 ("Consultant"). Town and Consultant are sometimes individually referred to herein as "Party" and collectively as "Parties."
2. RECITALS.
2.1 Consultant.
Consultant desires to perform and assume responsibility for the provision of certain professional services required by the Town on the terms and conditions set forth in this Agreement. Consultant represents that it is experienced in providing Strategic Planning services to public clients, is licensed in the State of California, and is familiar with the plans of Town.
2.2 Project.
Town desires to engage Consultant to render such professional services for the Strategic (Vision) Planning Services ("Project") as set forth in this Agreement.
3. TERMS.
3.1 Scope of Services and Term.
3.1.1 General Scope of Services. Consultant promises and agrees to furnish to the Town all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the professional Strategic (Vision) Planning consulting services necessary for the Project ("Services"). The Services are more particularly described in Exhibit "A" attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations.
3.1.2 Term. The term of this Agreement shall be from February 24, 2026, to August 31, 2026, unless earlier terminated as provided herein. Consultant shall complete the Services within the term of this Agreement and shall meet any other established schedules and deadlines. The Parties may, by mutual, written consent, extend the term of this Agreement if necessary to complete the Services.
3.2 Fees and Payments
3.2.1 Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth
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in Exhibit "B" attached hereto and incorporated herein by reference. The total compensation shall not exceed one hundred seventy-six thousand dollars ($176,000) without written approval of the Town Council or Town Manager as applicable. Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement.
3.2.2 Payment of Compensation. Consultant shall submit to Town a monthly invoice which indicates work completed and hours of Services rendered by Consultant. The invoice shall describe the number of Services provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the invoice.
Town shall, within 30 days of receiving such invoice, review the invoice and pay all non-disputed and approved charges. If the Town disputes any of Consultant's fees, the Town shall give written notice to Consultant within thirty (30) days of receipt of an invoice for any disputed fees set forth therein. Payment shall not constitute acceptance of any Services completed by Consultant. The making of final payment shall not constitute a waiver of any claims by the Town for any reason whatsoever.
3.2.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any expenses unless authorized in writing by Town or included in Exhibit "B" of this Agreement.
3.2.4 Extra Work. At any time during the term of this Agreement, Town may request that Consultant perform Extra Work. As used herein, "Extra Work" means any work which is determined by Town to be necessary for the proper completion of the Project, but which the Parties did not reasonably anticipate would be necessary at the execution of this Agreement.
Consultant shall not perform, nor be compensated for, Extra Work without written authorization from the Town.
3.2.5 Rate Increases. In the event that this Agreement is renewed pursuant to Section 3.1.2, the rate set forth in Exhibit “B” may be adjusted each year at the time of renewal as set forth in Exhibit “B.”
3.3 Responsibilities of Consultant.
3.3.1 Independent Contractor; Control and Payment of Subordinates. The Services shall be performed by consultant or under its supervision. Consultant will determine the means, methods and details of performing the Services subject to the requirements of this Agreement. Town retains Consultant on an independent contractor basis and not as an employee. Any personnel performing the Services on behalf of Consultant shall not be employees of Town and shall at all times be under Consultant's exclusive direction and control. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance.
3.3.2 Schedule of Services. Consultant shall perform the Services in a prompt and timely manner. Consultant represents that it has the professional and technical personnel required to perform the Services expeditiously. Upon request of Town, Consultant shall provide a more detailed schedule of anticipated performance to meet the Schedule of Services.
3.3.3 Conformance to Applicable Requirements. All work prepared by
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Consultant shall be subject to the approval of Town.
3.3.4 Substitution of Key Personnel. Consultant has represented to Town that certain key personnel will perform and coordinate the Services under this Agreement. Should one or more of such personnel become unavailable, Consultant may substitute other personnel of at least equal competence upon written approval of Town. In the event that Town and Consultant cannot agree as to the substitution of key personnel, Town shall be entitled to terminate this Agreement for cause. The key personnel for performance of this Agreement is Harness Strategy LLC.
3.3.5 Town's Representative. The Town hereby designates Julie Ryan, Special Projects Manager, or his/her designee, to act as its representative in all matters pertaining to the administration and performance of this Agreement ("Town's Representative"). Town's Representative shall have the power to act on behalf of the Town for review and approval of all products submitted by Consultant but not the authority to enlarge the Scope of Services or change the total compensation due to Consultant under this Agreement. The Town Manager shall be authorized to act on Town's behalf and to execute all necessary documents which enlarge the Scope of Services or change the Consultant's total compensation subject to the provisions contained in Section 3.2 of this Agreement. Consultant shall not accept direction or orders from any person other than the Town Manager, Town's Representative or his/her designee.
3.3.6 Consultant's Representative. Consultant hereby designates Kerry Whitford, Founder & Principal Consultant, or his/her designee, to act as its representative for the performance of this Agreement ("Consultant's Representative"). Consultant's Representative shall have full authority to represent and act on behalf of the Consultant for all purposes under this Agreement. The Consultant's Representative shall supervise and direct the Services, using his/her best skill and attention, and shall be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.
3.3.7 Coordination of Services. Consultant agrees to work closely with Town staff in the performance of Services and shall be available to Town's staff, consultants and other staff at all reasonable times.
3.3.8 Standard of Care; Performance of Employees. Consultant shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Consultant represents and maintains that it is skilled in the professional calling necessary to perform the Services. Consultant warrants that all employees and subconsultants shall have sufficient skill and experience to perform the Services assigned to them. Consultant represents that it, its employees and subconsultants have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, and that such licenses and approvals shall be maintained throughout the term of this Agreement. Consultant shall perform, at its own cost and expense and without reimbursement from the Town, any services necessary to correct errors or omissions which are caused by the Consultant's failure to comply with the standard of care provided for herein. Any employee of the Consultant or its subconsultants who is determined by the Town to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the Town, shall be promptly removed from the Project by the Consultant and shall not be re-employed to perform
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any of the Services or to work on the Project.
3.3.9 Period of Performance.
3.3.9.1 Consultant shall perform and complete all Services under this Agreement within the term set forth in Section 3.1.2 above (“Performance Time”). Consultant shall also perform the Services in strict accordance with any completion schedule or Project milestones described in Exhibits “A” or “B” attached hereto, or which may be separately agreed upon in writing by the Town and Consultant (“Performance Milestones”). Consultant agrees that if the Services are not completed within the aforementioned Performance Time and/or pursuant to any such Performance Milestones developed pursuant to provisions of this Agreement, it is understood, acknowledged and agreed that the Town will suffer damage.
3.3.9.2 Neither Town nor Consultant shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the non-performing Party. For purposes of this Agreement, such circumstances include a Force Majeure Event. A Force Majeure Event shall mean an event that materially affects a Party’s performance and is one or more of the following: (1) Acts of God or other natural disasters; (2) terrorism or other acts of a public enemy; (3) orders of governmental authorities (including, without limitation, unreasonable and unforeseeable delay in the issuance of permits or approvals by governmental authorities that are required for the Services); and (4) pandemics, epidemics or quarantine restrictions. For purposes of this section, “orders of governmental authorities,” includes ordinances, emergency proclamations and orders, rules to protect the public health, welfare and safety, and other actions of a public agency applicable to the Services and Agreement.
3.3.9.3 Should a Force Majeure Event occur, the non-performing Party shall, within a reasonable time of being prevented from performing, give written notice to the other Party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement.
3.3.9.4 Delays shall not entitle Consultant to any additional compensation regardless of the Party responsible for the delay. Notwithstanding the foregoing in this section, the Town may still terminate this Agreement in accordance with the termination provisions of this Agreement.
3.3.10 Laws and Regulations; Employee/Labor Certification. Consultant shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services, including all Cal/OSHA requirements, and shall give all notices required by law. Consultant shall be liable for all violations of such laws and regulations in connection with the Services and this Agreement.
All violations of such laws and regulations shall be grounds for the Town to terminate the Agreement for cause.
3.3.10.1 Employment Eligibility; Consultant. Consultant certifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time and shall require all subconsultants and sub-subconsultants to comply with the same. Consultant certifies that it has not committed a violation of any such law within the five (5) years immediately preceding the date of execution of this Agreement, and shall not violate any such law at any time during the term of the Agreement.
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3.3.10.2 Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subconsultant, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Consultant shall also comply with all relevant provisions of Town's Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted.
3.3.10.3 Air Quality. To the extent applicable, Consultant must fully comply with all applicable laws, rules and regulations in furnishing or using equipment and/or providing services, including, but not limited to, emissions limits and permitting requirements imposed by the South Coast Air Quality Management District (SCAQMD) and/or California Air Resources Board (CARB). Consultant shall indemnify Town against any fines or penalties imposed by SCAQMD, CARB, or any other governmental or regulatory agency for violations of applicable laws, rules and/or regulations by Consultant, its subconsultants, or others for whom Consultant is responsible under its indemnity obligations provided for in this Agreement.
3.3.10.4 Safety. Consultant shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Consultant shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed.
3.3.11 Insurance.
3.3.11.1 Time for Compliance. Consultant shall not commence work under this Agreement until it has provided evidence satisfactory to the Town that it has secured all insurance required under this section. In addition, Consultant shall not allow any subconsultant to commence work on any subcontract until it has provided evidence satisfactory to the Town that the subconsultant has secured all insurance required under this section. Failure to provide and maintain all required insurance shall be grounds for the Town to terminate this Agreement for cause.
3.3.11.2 Types of Insurance Required. As a condition precedent to the effectiveness of this Agreement for work to be performed hereunder, and without limiting the indemnity provisions of the Agreement, the Consultant, in partial performance of its obligations under such Agreement, shall procure and maintain in full force and effect during the term of the Agreement the following policies of insurance. If the existing policies do not meet the insurance requirements set forth herein, Consultant agrees to amend, supplement or endorse the policies to do so.
(A) Commercial General Liability: Commercial General Liability Insurance which affords coverage at least as broad as Insurance Services Office "occurrence" form CG 00 01, or the exact equivalent, with limits of not less than $1,000,000 per occurrence and no less than $2,000,000 in the general aggregate. Defense costs shall be paid in addition to the limits. The policy shall contain no endorsements or provisions (1) limiting coverage for contractual liability; (2) excluding coverage for claims or suits by one insured against another (cross-liability); (3) products/completed operations liability; or (4) containing any other exclusion(s) contrary to the terms or purposes of this Agreement.
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(B) Automobile Liability Insurance: Automobile Liability Insurance with coverage at least as broad as Insurance Services Office Form CA 00 01 covering "Any Auto" (Symbol 1), or the exact equivalent, covering bodily injury and property damage for all activities with limits of not less than $1,000,000 combined limit for each occurrence. (C) Workers' Compensation: Workers' Compensation
Insurance, as required by the State of California and Employer's Liability Insurance with a limit of not less than $1,000,000 per accident for bodily injury and disease. (D) Professional Liability (Errors & Omissions): Professional Liability insurance or Errors & Omissions insurance appropriate to Consultant’s profession with limits of not less than $1,000,000. Covered professional services shall specifically include all work to be performed under the Agreement and delete any exclusions that may potentially affect the work to be performed (for example, any exclusions relating to lead, asbestos, pollution, testing, underground storage tanks, laboratory analysis, soil work, etc.). If coverage is written on a claims-made basis, the retroactive date shall precede the effective date of the initial Agreement and continuous coverage will be maintained or an extended reporting period will be exercised for a period of at least five (5) years from termination or expiration of this Agreement.
3.3.11.3 Insurance Endorsements. Required insurance policies shall contain the following provisions, or Consultant shall provide endorsements on forms approved by the Town to add the following provisions to the insurance policies:
(A) Commercial General Liability: (1) Additional Insured: The Town, its officials, officers, employees, agents, and volunteers shall be additional insureds with regard to liability and defense of suits or claims arising out of the performance of the Agreement.
Additional Insured Endorsements shall not (1) be restricted to "ongoing operations"; (2) exclude "contractual liability"; (3) restrict coverage to "sole" liability of Consultant; or (4) contain any other exclusions contrary to the terms or purposes of this Agreement. For all policies of Commercial General Liability insurance, Consultant shall provide endorsements in the form of ISO CG 20 10 10 01 and 20 37 10 01 (or endorsements providing the exact same coverage) to effectuate this requirement. (2) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the Town except ten (10) days shall be allowed for non-payment of premium. (B) Automobile Liability. (1) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the Town except ten (10) days shall be allowed for nonpayment of premium. (C) Professional Liability (Errors & Omissions): (1) Cancellation:
Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the Town except ten (10) days shall be allowed for non-payment of premium. (2) Contractual Liability Exclusion Deleted: This insurance shall include contractual liability applicable to this Agreement. The policy must “pay on behalf of” the insured and include a provision establishing the insurer’s duty to defend. (D) Workers' Compensation: (1) Cancellation: Required
insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the Town except ten (10) days shall be allowed for
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non-payment of premium. (2) Waiver of Subrogation: A waiver of subrogation stating that the insurer waives all rights of subrogation against the Town, its officials, officers, employees, agents, and volunteers.
3.3.11.4 Primary and Non-Contributing Insurance. All policies of Commercial General Liability and Automobile Liability insurance shall be primary and any other insurance, deductible, or self-insurance maintained by the Town, its officials, officers, employees, agents, or volunteers shall not contribute with this primary insurance. Policies shall contain or be endorsed to contain such provisions.
3.3.11.5 Waiver of Subrogation. All required insurance coverages, except for the professional liability coverage, shall contain or be endorsed to waiver of subrogation in favor of the Town, its officials, officers, employees, agents, and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against Town and shall require similar written express waivers and insurance clauses from each of its subconsultants.
3.3.11.6 Deductibles and Self-Insured Retentions. Any deductible or selfinsured retention must be approved in writing by the Town and shall protect the Town, its officials, officers, employees, agents, and volunteers in the same manner and to the same extent as they would have been protected had the policy or policies not contained a deductible or self-insured retention.
3.3.11.7 Evidence of Insurance. The Consultant, concurrently with the execution of the Agreement, and as a condition precedent to the effectiveness thereof, shall deliver either certified copies of the required policies, or original certificates on forms approved by the Town, together with all endorsements affecting each policy. Required insurance policies shall not be in compliance if they include any limiting provision or endorsement that has not been submitted to the Town for approval. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. At least fifteen (15 days) prior to the expiration of any such policy, evidence of insurance showing that such insurance coverage has been renewed or extended shall be filed with the Town. If such coverage is cancelled or reduced and not replaced immediately so as to avoid a lapse in the required coverage, Consultant shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the Town evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies.
3.3.11.8 Acceptability of Insurers. Each such policy shall be from a company or companies with a current A.M. Best's rating of no less than A:VII and authorized to transact business of insurance in the State of California or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law.
3.3.11.9 Enforcement of Agreement Provisions (non estoppel).
Consultant acknowledges and agrees that actual or alleged failure on the part of the Town to inform Consultant of non-compliance with any requirement imposes no additional obligation on the Town nor does it waive any rights hereunder.
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3.3.11.10 Requirements Not Limiting. Requirements of specific coverage or minimum limits contained in this Section are not intended as a limitation on coverage, limits, or other requirement, or a waiver of any coverage normally provided by any insurance.
3.3.11.11 Additional Insurance Provisions
(A) The foregoing requirements as to the types and limits of insurance coverage to be maintained by Consultant, and any approval of said insurance by the Town, is not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by the Consultant pursuant to this Agreement, including but not limited to, the provisions concerning indemnification.
(B) If at any time during the life of the Agreement, any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, Town has the right but not the duty to obtain the insurance it deems necessary and any premium paid by Town will be promptly reimbursed by Consultant or Town will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, Town may cancel this Agreement.
(C) The Town may require the Consultant to provide complete copies of all insurance policies in effect for the duration of the Project. (D) Neither the Town nor any of its officials, officers, employees, agents or volunteers shall be personally responsible for any liability arising under or by virtue of this Agreement.
(E) The limits set forth herein shall apply separately to each insured against whom claims are made or suits are brought, except with respect to the limits of liability. Further the limits set forth herein shall not be construed to relieve the Consultant from liability in excess of such coverage, nor shall it limit the Consultant’s indemnification obligations to the Town and shall not preclude the Town from taking such other actions available to the Town under other provisions of the Agreement or law.
(F) Consultant shall report to the Town, in addition to Consultant’s insurer, any and all insurance claims submitted by Consultant in connection with the Services under this Agreement.
3.3.11.12 Insurance for Subconsultants. Consultant shall include all subconsultants engaged in any work for Consultant relating to this Agreement as additional insureds under the Consultant's policies, or the Consultant shall be responsible for causing subconsultants to purchase the appropriate insurance in compliance with the terms of these Insurance Requirements, including adding the Town, its officials, officers, employees, agents, and volunteers as additional insureds to the subconsultant's policies. All policies of Commercial General Liability insurance provided by Consultant’s subconsultants performing work relating to this Agreement shall be endorsed to name the Town, its officials, officers, employees, agents and volunteers as additional insureds using endorsement form ISO CG 20 38 04 13 or an endorsement providing equivalent coverage. Consultant shall not allow any subconsultant to commence work on any subcontract relating to this Agreement until it has received satisfactory evidence of subconsultant’s compliance with all insurance requirements under this Agreement, to