CITY OF CHULA VISTA
COOPERATIVE PURCHASING AGREEMENT
WITH SWEEPING CORP OF AMERICA
TO PROVIDE STREET SWEEPING SERVICES
This Cooperative Purchasing Agreement (“Agreement”) is made and entered into between the City of Chula Vista (“City”) and Sweep America Intermediate Holdings, LLC; dba Sweeping Corp of America (“Contractor”) (collectively, the “Parties” and, individually, a “Party”) with reference to the following facts:
RECITALS
WHEREAS, Sweeping Corp of America (SCA) was awarded a contract by Sourcewell following a competitive bid process (062421-SWP) to perform street sweeping services for improvement to public buildings and grounds, and all attachments and exhibits thereto, which are attached hereto as Exhibit A and incorporated herein by this reference (“Original Contract”); and WHEREAS, Section 2.56.140 of the Chula Vista Municipal Code authorizes the City to contract for goods or services through a cooperative purchasing arrangement provided the goods or services were purchased through a competitive process that the Purchasing Agent determines to be consistent with good purchasing practices; and
WHEREAS, the City has a need for street sweeping services like those found in the Original Contract; and
WHEREAS, the City desires to enter into an agreement with Contractor through a cooperative purchasing arrangement on the terms and conditions set forth in the Original Contract and this Agreement; and
WHEREAS, the City’s Purchasing Agent has determined that the Sourcewell competitive process for the Original Contract to be consistent with good purchasing practices; and WHEREAS, the Contractor warrants and represents that it is experienced and staffed in a manner such that it can deliver the services required of Contractor to the City in accordance with the time frames and the terms and conditions of this Agreement.
OBLIGATORY PROVISIONS
NOW, THEREFORE, for and in consideration of the above recitals, the covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which the Parties hereby acknowledge, City and Contractor hereby agree as follows:
1. Required Services
Contractor agrees to perform all services, and deliver to City all deliverables (if any), as described in Exhibit A (Original Contract) and further described below:
ACN#2022-117
The Contractor shall in a manner consistent with th e highest level of care and skill exercised by members of the profession clean all curbs, gutters, median curbs and painted islands, centerlines, road shoulders, turning lanes, alleys, cross gutter s, intersection curb return areas and parking lots located in the City as designated in Exhibits D and E. Parking is not restricted for street sweeping purposes.
The Contractor shall sweep around any vehicle on Ci ty streets in a safe manner and missing as little curb and/or gutter as possible.
The streets and parking lots to be cleaned, and fre quency of cleaning are listed in Exhibits D and E. The lengths represent the City’s best measuremen t. Payment will be based on the quantities indicated with no adjustments except as provided he rein. Contractor is responsible for verifying measurements and inspecting all conditions prior su bmitting their bid and starting work. The streets and parking lots to be cleaned are divided into the following categories:
(1) Class A: (Residential) Streets to be swept once every two months.
(2) Class B: (Business/Commercial) Streets to be swept once every two weeks.
(3) Class C: (Commercial) Streets to be swept once every two weeks.
(4) Class D: Center lines to be swept once every two months.
(5) Class E: Center lines to be swept once every two months.
(6) Class F: Non-curbed street to be swept once every two months.
(7) Class G: Parking lots to be swept once every two months.
(8) Class H: Other special sweeping requested by the City at the rate stipulated within the bid
The services and/or deliverables described in Origi nal Contract and above shall be referred to herein as the “Required Services.” Contractor agre es to perform the Required Services in strict accordance with Exhibit A (Original Contract) and E xhibit B (Required Services Provisions) which are attached hereto and incorporated herein by reference.
2. Term of the Agreement
The effective date of this Agreement is July 1, 202 2 (“Effective Date”) and it expires June 30, 2023. Notwithstanding the completion date above, the Agreement may be extended for a total of (2) additional one-year terms (July 1 – June 30). The City Manager or Director of Finance shall be authorized to exercise the extensions on behalf of the City. If the City exercises an option to extend, each extension shall be on the same terms and conditions contained herein.
3. Payment Terms
For performance of the Required Services by Contractor, City shall pay Contractor as provided in Exhibit C (Payment Terms), which is attached hereto and are incorporated herein by reference.
The reimbursement for productive hours spent or exp enses incurred in the performance of this Agreement shall be made only upon acceptance by Cit y of Contractor’s invoice and supporting documentation.
If the City exercises an option to extend, the amou nts specified in Exhibit C.1 may be increased by up to the lower of the annual San Diego Area Con sumer Price Index (CPI-W) increase or 5% of the Contractor-quoted prices for each extension.
4. Insurance
Contractor must procure and maintain insurance in s trict accordance with the Insurance Requirements identified in Exhibit F, which is atta ched hereto and are incorporated herein by reference.
5. Indemnity
Contractor must indemnify, defend, and hold harmles s the Indemnified Parties (as defined in Exhibit G) as provided in Exhibit G, which is attac hed hereto and are incorporated herein by reference.
6. Authorized Representatives and Notices
The City hereby designates as its Authorized Representative:
Kalani Camacho, Public Works Superintendent
Department of Public Works
1800 Maxwell Road, Chula Vista, CA 91911
All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands and reque sts to be sent to any Party shall be deemed to have been properly given or serviced if personally served or deposited in the United States mail, addressed to such Party, postage prepaid, register or certified, with return receipt requested, at the address[es] identified in this Agreement.
Notices, demands or requests sent to City shall be submitted to:
Kalani Camacho, Public Works Superintendent
Department of Public Works
1800 Maxwell Road, Chula Vista, CA 91911
Notices, demands or requests sent to Contractor shall be submitted to:
Mike Siragusa, Vice President
Sweeping Corp of America
285 Pawnee, Suite A
San Marcos, CA 92078
7. Remedies
7.1 Termination for Cause . If for any reason whatsoever Contractor shall fa il to perform the Required Services under this Agreement, in a proper or timely manner, or if Contractor shall violate any of the other covenants , agreements or conditions of this Agreement (each a “Default”), in addition to any an d all other rights and remedies City may have under this Agreement, at law or in equity, City shall have the right to terminate this Agreement by giving five (5) days written noti ce to Contractor. Such notice shall identify the Default and the Agreement termination date. If Contractor notifies City of its intent to cure such Default prior to City’s specifi ed termination date, and City agrees that the specified Default is capable of being cured, Ci ty may grant Contractor up to ten (10) additional days after the designated termination da te to effectuate such cure. In the event of a termination under this Section 7.a, Contractor shall immediately provide City any and all reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties produced in w hole or in part under this Agreement (“Work Product”) in connection with the performance of the Required Services work product prepared by Contractor as part of the Required Services. Such Work Product shall be City's sole and exclusive property. Contractor may be entitled to compensation for work satisfactorily performed prior to Contractor’s rece ipt of the Default notice; provided, however, in no event shall such compensation exceed the amount that would have been payable under this Agreement for such work, and any such compensation shall be reduced by any costs incurred or projected to be incurred by City as a result of the Default.
7.2 Termination or Suspension for Convenience of City . City may suspend or terminate this Agreement, or any portion of the Required Serv ices, at any time and for any reason, with or without cause, by giving specific written n otice to Contractor of such termination or suspension at least fifteen (15) days prior to the effective date thereof. Upon receipt of such notice, Contractor shall immediately cease all work under the Agreement and promptly deliver all Work Product to City. Such Wo rk Product shall be City's sole and exclusive property. Contractor shall be entitled to receive just and equitable compensation for this Work Product in an amount equal to the amo unt due and payable under this Agreement for work satisfactorily performed as of t he date of the termination/suspension notice plus any additional remaining Required Servi ces requested or approved by City in advance that would maximize City’s value under the Agreement.
7.3 Waiver of Claims . In the event City terminates the Agreement in ac cordance with the terms of this section, Contractor hereby expres sly waives any and all claims for damages or compensation as a result of such termina tion except as expressly provided in this Section 7.
7.4 Administrative Claims Requirements and Procedures . No suit or arbitration shall be brought arising out of this Agreement against City unless a claim has first been presented in writing and filed with City and acted upon by Ci ty in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may be amended, the provisions of which, including such policies and pr ocedures used by City in the implementation of same, are incorporated herein by this reference. Upon request by City,
Contractor shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement.
8. Conflicts or Discrepancies
In the event of any inconsistencies, conflicts, or discrepancies between any of the terms or conditions of the Original Contract and this Agreement, the inconsistency shall be resolved by giving precedence in the following order:
1) This Agreement (excluding the incorporated Original Contract) 2) Original Contract
9. General Provisions
9.1 Amendment. This Agreement may be amended, but only in writing signed by both Parties.
9.2 Assignment. City would not have entered into t his Agreement but for Contractor’s unique qualifications and traits. Contractor shall not assign any of its rights or responsibilities under this Agreement, nor any part hereof, without City’s prio r, written consent, which City may grant, condition, or deny in its sole discretion.
9.3 Authority. The person(s) executing this Agreem ent for Contractor warrants and represents that they have the authority to execute same on beh alf of Contractor and to bind Contractor to its obligations hereunder without any further action or direction from Contractor or any board, principle or officer thereof.
9.4 Counterparts. This Agreement may be executed i n counterparts, each of which shall be deemed an original, but all of which shall constitu te one Agreement after each Party has signed such a counterpart.
9.5 Entire Agreement. This Agreement together with all exhibits attached hereto and other agreements expressly referred to herein, constitutes the entire Agreement between the Parties with respect to the subject matter contained herein. Al l exhibits referenced herein shall be attached hereto and are incorporated herein by reference. A ll prior or contemporaneous agreements, understandings, representations, warranties and statements, oral or written, are suspended.
9.6 Record Retention. During the course of this Ag reement and for three (3) years following completion of the Services, Contractor agrees to ma intain, intact and readily accessible, all data, documents, reports, records, contracts, and supporting materials relating to the performance of this Agreement, including accounting for costs and expen ses charged to City, including such records in possession of sub-contractors.
9.7 Further Assurances. The Parties agree to perfo rm such further acts and to execute and deliver such additional documents and instruments as may be reasonably required in order to carry out the provisions of this Agreement and the intentions of the Parties.
9.8 Independent Contractor. Contractor is and shal l at all times remain as to City a wholly independent contractor. Neither City nor any of its officers, employees, agents or volunteers shall have control over the conduct of Contractor or any of Contractor’s officers, employees, or agents (“Contractor Related Individuals”), except as set forth in this Agreement. No Contractor Related Individuals shall be deemed employees of City, and none of them shall be entitled to any benefits to which City employees are entitled, including but not limited to, overtime, retirement benefits, worker’s compensation benefits, injury leave or oth er leave benefits. Furthermore, City will not withhold state or federal income tax, social securi ty tax or any other payroll tax with respect to any Contractor Related Individuals; instead, Contractor shall be solely responsible for the payment of same and shall hold City harmless with respect t o same. Contractor shall not at any time or in any manner represent that it or any of its Contract or Related Individuals are employees or agents of City. Contractor shall not incur or have the po wer to incur any debt, obligation or liability whatsoever against City, or bind City in any manner.
SIGNATURE PAGE
COOPERATIVE PURCHASING AGREEMENT
IN WITNESS WHEREOF, by executing this Agreement whe re indicated below, City and Contractor agree that they have read and understood all terms and conditions of this Agreement, that they fully agree and consent to bound by same, and that they are freely entering into this Agreement as of the Effective Date.
For: SWEEP AMERICA INTERMEDIATE For: CITY OF CHUL A VISTA HOLDINGS, LLC dba SWEEPING CORP OF
AMERICA
Date: ______________________________ Date: _______ _______________________
By: _______________________________ By: __________ _____________________ Mike Siragusa, Vice President Mary Casillas Salas, Mayor
ATTEST:
Date:
By:
Kerry K. Bigelow, MMC
City Clerk
APPROVED AS TO FORM
Glen R. Googins, City Attorney
Date: ______________________________
By: _______________________________
EXHIBITS
A Original Contract, Contract No. 062421-SWP Source well and Sweep America Intermediate Holdings, LLC / Sweeping Corp of America
B Required Service s Provisions
C Payment Terms
D Sweep Schedule
E Parking Lots
F Insurance Requirements
G Indemnity Requirements
H Contractor Conflict of Interest Designation
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Solicitation Number: RFP #062421
CONTRACT
This Contract is between Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 (Sourcewell) and Sweep America Intermediate Holdings, LLC, 4141 Rockside Road, Suite 100, Seven Hills, OH 44131 (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 Facilities Maintenance 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.
B. EXPIRATION DATE AND EXTENSION. This Contract expires August 8, 2025, unless it is cancelled sooner pursuant to Article 22. This Contract may be extended one additional year upon the request of Sourcewell and written agreement by Supplier.
C. 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 rights will cease upon expiration or termination of this Contract.
2. EQUIPMENT, PRODUCTS, OR SERVICES
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.
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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.
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
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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 tax- exemption certification(s). When ordering, a Participating Entity must indicate if it is a tax- exempt 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:
x Identify the applicable Sourcewell contract number;
x Clearly specify the requested change;
x Provide sufficient detail to justify the requested change;
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x Individually list all Equipment, Products, or Services affected by the requested change, along with the requested change (e.g., addition, deletion, price change); and x 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 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 government- owned 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 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
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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 Entitles may require the use of a Participating Addendum; the terms of which will be negotiateddirectly between the Participating Entity and the Supplier. 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 e- commerce 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
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:
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x Maintenance and management of this Contract;
x Timely response to all Sourcewell and Participating Entity inquiries; and x 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, 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:
x Participating Entity Name (e.g., City of Staples Highway Department); x Participating Entity Physical Street Address;
x Participating Entity City;
x Participating Entity State/Province;
x Participating Entity Zip/Postal Code;
x Participating Entity Contact Name;
x Participating Entity Contact Email Address;
x Participating Entity Contact Telephone Number;
x Sourcewell Assigned Entity/Participating Entity Number; x Item Purchased Description;
x Item Purchased Price;
x Sourcewell Administrative Fee Applied; and
x 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 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
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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 Agreement 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.
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.
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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, stored, used, 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 thetrademark(s) provided to Supplier by Sourcewell in advertising and promotional materials for the purpose of marketing Sourcewell’s relationship with Supplier.
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,
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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. As applicable, Supplier agrees to indemnify and hold harmless Sourcewell and its Participating Entities against any and all suits, claims, judgments, and costs instituted or recovered against Sourcewell or Participating Entities by any person on account of the use of any Equipment or Products by Sourcewell or its Participating Entities supplied by Supplier in violation of applicable patent or copyright laws.
5. 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:
x Exercise any remedy provided by law or equity, or
x 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-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
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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. 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.
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
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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.
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.
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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 non- federal 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 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.
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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).
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
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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 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
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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 not 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 an 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.
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.
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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 Sweep America Intermediate Holdings, LLC
By: __________________________ By: __________________________ Jeremy Schwartz M.J. DuBois, President, DuCo, LLC
Title: Chief Procurement Officer Title: Authorized Contract Administrator
Date: ________________________
Date: ________________________
Approved:
By: __________________________
Chad Coauette
Title: Executive Director/CEO
Date: ________________________
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Bid Number: RFP 062421 Vendor Name: DuCo, LLC
AMENDMENT #1
TO
CONTRACT #062421-SWP
THIS AMENDMENT is by and between Sourcewell and Sweep America Intermediate Holdings, LLC (Vendor).
Vendor was awarded a Sourcewell Contract for Facilities Maintenance Services effective August 5, 2021, through August 8, 2025, relating to the provision of services by Vendor to Sourcewell and its Members (Original Agreement).
The parties agree that certain terms within the Original Agreement will be updated and amended and only to the extent as hereunder provided.
IN CONSIDERATION OF the mutual covenants and agreements described in this Amendment, the parties agree as follows:
1. This Amendment is effective upon the date of the last signature below.
2. Section 18. Insurance, Subsection A. Requirements, Item 5. Network Security and Privacy Liability Insurance of the Original Agreement is modified to reduce the minimum limits required to $1,000,000 per occurrence and annual aggregate.
Except as amended by this Amendment, the Original Agreement remains in full force and effect.
Sourcewell Sweep America Intermediate Holdings, LLC
B y : B y :
Jeremy Schwartz Matthew Spencer
Title: Director of Operations & Procurement/CPO Title:
D a t e : D a t e :
Sourcewell–APPROVED:
B y :
Chad Coauette
Title: Executive Director/CEO
Date:
EXHIBIT B
REQUIRED SERVICES
B.1 Required Services. Contractor agrees to perfor m the services as stated in the Original Contract and this Agreement, within the time frames set forth herein.
B.2 Reductions in Scope of Work. City may independ ently, or upon request from Contractor, reduce the Required Services to be performed by Con tractor under this Agreement. Upon doing so, City and Contractor agree to meet and confer in good faith for the purpose of negotiating a corresponding reduction in the compensation associated with the reduction.
B.3 Additional Services. Subject to compliance wit h the City’s Charter, codes, policies, procedures and ordinances governing procurement and purchasing authority, City may request Contractor provide additional services related to t he Required Services (“Additional Services”).
If so, City and Contractor agree to meet and confer in good faith for the purpose of negotiating an amendment to the Agreement to add the Additional Se rvices. Unless otherwise agreed, compensation for the Additional Services shall be c harged and paid consistent with the rates and terms already provided therein. Once added to the Agreement, “Additional Services” shall also become “Required Services” for the purposes of this Agreement.
B.4 Standard of Care. Contractor expressly warrant s and agrees that any and all Required Services hereunder shall be performed in accordance with the highest standard of care exercised by members of the profession currently practicing u nder similar conditions and in similar locations.
B.5 No Waiver of Standard of Care. Where approval by City is required, it is understood to be conceptual approval only and does not relieve Contractor of responsibility for complying with all laws, codes, industry standards, and liability for damages caused by negligent acts, errors, omissions, noncompliance with industry standards, o r the willful misconduct of Contractor or its subcontractors.
B.6 Security of Performance. In the event that the Payment Terms in Exhibit C indicate the need for Contractor to provide additional security for performance of its duties under this Agreement, Contractor shall provide such additional security prior to commencement of its Require Services in the form and on the terms presc ribed in the this Agreement, or as otherwise prescribed by the City Attorney.
B.7 Compliance with Laws. In its performance of th e Required Services, Contractor shall comply with any and all applicable federal, state, and local laws, including the Chula Vista Municipal Code.
EXHIBIT C
PAYMENT TERMS
(Non-Prevailing Wage Rate)
C.1. Time and Materials. For performance of the R equired Services by Contractor as identified herein, City shall pay Contractor for the productiv e hours of time spent by Contractor in the performance of the Required Services, at the rates or amounts as indicated below:
Rate Schedule
Class A Streets to be swept once every two months, at the rate of $29.40 per curb mile.
Class B Streets to be swept once every two weeks, at the rate of $29.40 per curb mile.
Class C Streets to be swept once every two weeks, at the rate of $29.40 per curb mile.
Class D Center islands and medians to be swept once every two months, at the rate of $29.40 per curb mile.
Class E Center lines to be swept once every two months, at the rate of $29.40 per pass mile.
Class F Non-curbed streets to be swept once every two months, at the rate of $29.40 per curb mile.
Class G Parking lots to be swept once every two months, at the rate of $0.0100 per square feet.
Class H Other special sweeping requested by the City at the following rates:
Streets Weekdays: Hourly rate of $120.00 per hour
Street Weekends and Holidays: Hourly rate of $120.00 per hour
C.2. Reimbursement of Costs
There are no reimbursable costs under this Agreemen t. The compensation identified herein includes all costs.
C.3. Additional Security. None
C.4. Prevailing Wages. No.
C.5. Maximum Contract Amount. The maximum amount to be paid to the Contractor for services performed during the Initial Term ending June 30, 2023 is $350,000. If the City elects to exercise an option to extend the Agreement per Section 2, th e maximum amounts to be paid to Contractor for services performed during each option term(s) s hall be as follows: $350,000 for Option Year 1 (July 1, 2023 – June 30, 2024) and $350,000 for Option Year 2 (July 1, 2024 – June 30, 2025).
Amounts duly approved but encumbered during the Ini tial Term, or prior option term(s), may be carried over, in the City’s sole discretion, to inc rease the maximum amount to be paid during Option Year 1 or Option Year 2.
Notwithstanding any of the above, the maximum amount to be paid to the Contractor for services performed through June 30, 2025 shall be $1,250,000.
C.6. Permitted Subcontractors. None.
EXHIBIT C
PAYMENT TERMS
(Prevailing Wage Rate)
C.1. Time and Materials. For performance of the R equired Services by Contractor as identified herein, City shall pay Contractor for the productiv e hours of time spent by Contractor in the performance of the Required Services, at the rates or amounts as indicated below:
Rate Schedule
Class A Streets to be swept once every two months, at the rate of $49.86 per curb mile.
Class B Streets to be swept once every two weeks, at the rate of $49.86 per curb mile.
Class C Streets to be swept once every two weeks, at the rate of $49.86 per curb mile.
Class D Center islands and medians to be swept once every two months, at the rate of $49.86 per curb mile.
Class E Center lines to be swept once every two months, at the rate of $49.86 per pass mile.
Class F Non-curbed streets to be swept once every two months, at the rate of $49.86 per curb mile.
Class G Parking lots to be swept once every two months, at the rate of $0.0175 per square feet.
Class H Other special sweeping requested by the City at the following rates:
Streets Weekdays: Hourly rate of $232.80 per hour
Street Weekends and Holidays: Hourly rate of $257.05 per hour
C.2. Reimbursement of Costs
There are no reimbursable costs under this Agreemen t. The compensation identified herein includes all costs.
C.3. Additional Security. None
C.4. Prevailing Wages. Contractor acknowledges that this Agreement and the Required Services are subject to the provisions of the Labor Code relating to public works and prevailing wages and agrees to be bound by all the provisions thereof. In accordance with the provisions of section 1773 of the Labor Code, the City has ascertained th at general prevailing wage scales may be applicable to certain work or services to be done under this Agreement. Contractor acknowledges and agrees that it is required to pay prevailing wages to persons employed by them in performing a covered work classification in accordance with La bor Code Section 1771 and 1774. The prevailing wage scales are those determined by the DIR and are available at the DIR’s website.
As applicable, Contractor acknowledges and agrees to comply with and be subject to Labor Code sections 1775 and 1776 including but not limited fulfilling its duty to keep accurate payrolls, make payroll records available, and inform the City of t he location of such records. Contractor acknowledges and agrees that portions or all the wo rk under this Agreement are subject to compliance monitoring and enforcement by the Department of Industrial Relations.
C.5. Maximum Contract Amount. The maximum amount to be paid to the Contractor for services performed during the Initial Term ending June 30, 2023 is $565,000. If the City elects to exercise an option to extend the Agreement per Section 2, th e maximum amounts to be paid to Contractor for services performed during each option term(s) s hall be as follows: $565,000 for Option Year 1 (July 1, 2023 – June 30, 2024) and $565,000 for Option Year 2 (July 1, 2024 – June 30, 2025).
Amounts duly approved but encumbered during the Ini tial Term, or prior option term(s), may be carried over, in City’s sole discretion, to increase the maximum amount to be paid during a Option Year 1 or Option Year 2.
Notwithstanding any of the above, the maximum amount to be paid to the Contractor for services performed through June 30, 2025 shall be $2,000,000.
C.6. Permitted Subcontractors. None.
EXHIBIT D
SWEEPING CALL BY SCHEDULE
EXISTING EXISTING
LINEAR FEET CURB MILES
SWEEP CLASS A
TOTAL RESIDENTIAL STREETS
SWEPT ONCE EVERY TWO MONTHS 3,480, 643 662.06
_____________________________________________________________________________________
SWEEP CLASS B
TOTAL BUSINESS/COMMERCIAL STREETS
SWEPT ONCE EVERY TWO WEEKS 639.461 121.11
_____________________________________________________________________________________
SWEEP CLASS C
TOTAL COMMERCIAL STREETS
SWEPT ONCE EVERY TWO WEEKS 55,440 10.5
_____________________________________________________________________________________
SWEEP CLASS D
TOTAL CENTER ISLANDS AND MEDIANS
SWEPT ONCE EVERY TWO MONTHS 393,730 75.47
_____________________________________________________________________________________
SWEEP CLASS E
TOTAL CENTER LINES
SWEPT ONCE EVERY TWO MONTHS 242,352 49.5
PASS MILES
_____________________________________________________________________________________
SWEEP CLASS F
TOTAL NON-CURBED STREETS
SWEPT ONCE EVERY TWO MONTHS 102,432 19.4
_____________________________________________________________________________________
TOTAL 4,275,236 934.44
_____________________________________________________________________________________
SWEEP CLASS H
OTHER SPECIAL SWEEPING REQUESTED BY THE CITY AT THE RATE STIPULATED IN
EXHIBIT C
EXHIBIT E
CLASS G
CITY OF CHULA VISTA PARKING LOTS
SWEPT EVERY TWO MONTHS
PARKING LOTS LOCATION SQ.FT.
Civic Center Library 365 F Street 59,864
Civic Center 276 Fourth Avenue 16,640
Discovery Park 700 Buena Vista Way 64,670
Eucalyptus Park SW Corner of Fourth Avenue & C Street 69,710 Hilltop Park 780 Hilltop Drive 10,877
Horizon Park 970 East Palomar 7,800
Ken Lee Building 430 F Street 35,000
Public Parking Lot #2 245 Landis Avenue 25,520
Public Parking Lot #3 285 -287 Landis Avenue 24,132 Lauderbach Park 333 Oxford Street 19,350
Loma Verde Park 1420 Loma Lane 88,468
Memorial Park/Parkway Gym 385 Park Way 20,913
Montevalle Park 840 Duncan Ranch Road 148, 252
Mountain Hawk Park 1475 Lake Crest Drive 23,042
Norman Park Center 270 F Street 13,200
Reinstra Park/Max Field 1500 Max Avenue 85,083
Rohr Park 4548 Sweetwater Road 205,404
Salt Creek Park 2710 Otay Lakes Road 119,064
SDG&E Park 1450 Hilltop Drive 11,329
South Chula Vista Library 1427 Fourth Avenue 82,780 Terra Nova Park 450 Hidden Vista Drive 15,370
Veterans Park 785 East Palomar Street 28,266
TOTAL 1,174,734
Additional parking lots shall be swept on an as-needed basis, to be paid at the per sq.ft. rate, in accordance with Exhibit C.
EXHIBIT F
INSURANCE REQUIREMENTS
F.1 Required Insurance. Contractor must procure an d maintain, during the period performance of the Required Services under this Agreement, and for twelve months after completion of Required Services, the policies of insurance set forth below in C.13 (“Required Insurance”). The Required Insurance shall also comply with all other terms of this Exhibit.
F.2 Deductibles and Self-Insured Retentions. Any d eductibles or self-insured retentions relating to the Required Insurance must be disclose d to approved by City in advance of the commencement of work.
F.3 Standards for Insurers. Required Insurance mus t be placed with licensed insurers admitted to transact business in the State of California wit h a current A.M. Best’s rating of A V or better, or, if insurance is placed with a surplus lines ins urer, insurer must be listed on the State of California List of Eligible Surplus Lines Insurers (LESLI) with a current A.M. Best’s rating of no less than A X. For Worker’s Compensation Insurance, insurance issued by the State Compensation Fund is also acceptable.
F.4 Subcontractors. Contractor must include all su b-contractors/service providers as insured under its policies and/or furnish separate certific ates and endorsements demonstrating separate coverage for those not under its policies. Any sep arate coverage for sub-contractors/service providers must also comply with the terms of this Agreement.
F.5 Additional Insureds. City, its officers, offic ials, employees, agents, and volunteers must be named as additional insured with respect to any policy of general liability, automobile, or pollution insurance specified as required below in C.13 or as may otherwise be specified by City’s Risk Manager. The general liability additional ins ured coverage must be provided in the form of an endorsement to the Contractor’s insurance using ISO CG 20 10 (11/85) or its equivalent; such endorsement must not exclude Products/Completed Operations coverage.
F.6 General Liability Coverage to be “Primary.” Co ntractor’s general liability coverage must be primary insurance as it pertains to City, its officers, officials, employees, agents, and volunteers.
Any insurance or self-insurance maintained by City, its officers, officials, employees, or volunteers is wholly separate from the insurance provided by C ontractor and in no way relieves Contractor from its responsibility to provide insurance.
F.7 No Cancellation. No Required Insurance policy may be canceled by either Party during the required insured period under this Agreement, e xcept after thirty days’ prior written notice to City by certified mail, return receipt requested. Prior to the Effective Date of any such cancellation Contractor must procure and put into effect equivalent coverage(s).
F.8 Waiver of Subrogation. Contractor will provide a Waiver of Subrogation in favor of City for each Required Insurance policy under this Agreement. In addition, Contractor waives any right it may have or may obtain to subrogation for a claim against City.
F.9 Verification of Coverage. Prior to commencemen t of any work, Contractor shall furnish City with original certificates of insurance and an y amendatory endorsements necessary to demonstrate to City that Contractor has obtained th e Required Insurance in compliance with the terms of this Agreement. The words “will endeavor” and “but failure to mail such notice hall impose no obligation or liability of any kind upon the company, its agents, or representatives” or any similar must be deleted from all certificates. The required certificates and endorsements should otherwise be on industry standard forms. Ci ty reserves the right to require, at any time, complete, certified copies or all required insuranc e policies, including endorsements evidencing the coverage required by these specifications.
F.10 Claims Made Policy Requirements. If General L iability, Pollution, and/or Asbestos Pollution Liability and/or Errors & Omissions coverage are required and are provided on a claims- made form, the following requirements also apply:
a. The “Retro Date” must be shown and must be before t he date of this Agreement or the beginning of the work required by this Agreement.
b. Insurance must be maintained, and evidence of insurance must be provided, for at least five (5) years after completion of the work required by this Agreement.
c. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a “Retro Date” prior to the Effective Dat e of this Agreement, Contractor must purchase “extended reporting” coverage for a minimu m of five (5) years after completion of the work required by this Agreement.
d. A copy of the claims reporting requirements must be submitted to City for review.
F.11 Not a Limitation of Other Obligations. Insura nce provisions under this section shall not be constructed to limit Contractor’s obligations under this Agreement, including Indemnity.
F.12 Additional Coverage. To the extent that insur ance coverage provide by Contractor maintains higher limits than the minimums appearing below in C.13, City requires and shall be entitled to coverage for higher limits maintained.
F.13 Insurance Requirements.
Type of Insurance Minimum Amount Form
☒ General Liability:
Including products
and complete
operations,
personal and
advertising injury
$2,000,000 per occurrence for
bodily injury, personal injury
(including death), and property
damage. If Commercial General
Liability insurance with a general
aggregate limit must apply
separately to this Agreement or the
general aggregate limit must be
twice the required occurrence
limit.
Additional Insured Endorsement
or Blanket AI Endorsement for
City*
Waive of Recovery Endorsement
Insurance Services Office
Form
CG 00 01
*Must be primary and must
not exclude
Products/Completed
Operations
☒ Automobile
Liability
$1,000,000 per accident for bodily
injury, including death, and
property damage
Insurance Services Office
Form
CA 00 01
Code 1 – Any Auto
Code 8 – Hired
Code 9 – Non -Owned
☒ Workers’
Compensation
Employer’s
Liability
$1,000,000 each accident
$1,000,000 disease policy limit
$1,000,000 disease each employee
Waiver of Recovery Endorsement
☒ Professional
Liability (Errors &
Omissions)
$1,000,000 each occurrence
$2,000,000 aggregate
Other Negotiated Insurance Terms: NONE
EXHIBIT G
INDEMNITY REQUIREMENTS
G.1 General. To the maximum extent allowed by law, Contractor shall protect, defend, indemnify and hold harmless City, its elected and a ppointed officers, agents, employees and volunteers (collectively, “Indemnified Parties”), f rom and against any and all claims, demands, causes of action, costs, expenses, (including reaso nable attorneys’ fees and court costs), liability, loss, damage or injury, in law or equity, to proper ty or persons, including wrongful death, in any manner arising out of or incident to any alleged acts, omissions, negligence, or willful misconduct of Contractor, its officials, officers, employees, agents, and contractors, arising out of or in connection with the performance of the Required Services, the results of such performance, or this Agreement. This indemnity provision does not inclu de any claims, damages, liability, costs and expenses arising from the sole negligence or willfu l misconduct of the Indemnified Parties. Also covered is liability arising from, connected with, caused by or claimed to be caused by the active or passive negligent acts or omissions of the Indem nified Parties which may be in combination with the active or passive negligent acts or omissi ons of the Contractor, its employees, agents or officers, or any third party.
G.2 Modified Indemnity Where Agreement Involves Des ign Professional Services.
Notwithstanding the forgoing, if the services provi ded under this Agreement are design professional services, as defined by California Civ il Code Section 2782.8, as may be amended from time to time, the defense and indemnity obligation under Section D.1, above, shall be limited to the extent required by California Civil Code Section 2782.8.
G.3 Costs of Defense and Award. Included in Contra ctor’s obligations under these Indemnity Provisions is Contractor’s obligation to defend, at Contractor’s own cost, expense and risk, any and all suits, action or other legal proceedings th at may be brought or instituted against one or more of the Indemnified Parties. Subject to the limitations in this Indemnity Provisions, Contractor shall pay and satisfy any judgment, award or decree s that may be rendered against on or more of the Indemnified Parties for any and all related legal expenses and costs incurred by any of them.
G.4 Contractor’s Obligations Not Limited or Modifie d. Contractor’s obligations under these Indemnity Provisions shall not be limited to insura nce proceeds, if any, received by the Indemnified Parties, or by any prior or subsequent declaration by Contractor. Furthermore, Contractor’s obligations under this Indemnity Requi rements shall in no way limit, modify or excuse any of Contractor’s other obligations or duties under this Agreement.
G.5 Enforcement Costs. Contractor agrees to pay an y and all costs City incurs in enforcing Contractor’s obligations under these Indemnity Provisions.
G.6 Survival. Contractor’s obligations under these Indemnity Provisions shall survive the termination of this Agreement.
EXHIBIT H
CONTRACTOR CONFLICT OF INTEREST DESIGNATION
The Political Reform Act
1 and the Chula Vista Conflict of Interest Code 2 (“Code”) require designated state and local government officials, including some consultants, to make certain public disclosures using a Statement of Economic Interests form (Form 700). Once filed, a Form 700 is a public document, accessible to any member of the public. In addition, consultants designated to file the Form 700 are also required to comply with certain ethics training requirements. 3
☒ A. Contractor IS a corporation or limited liability company and is therefore EXCLUDED 4 from
disclosure.
☐ B. Contractor NOT a corporation or limited liability company and disclosure designation is as follows:
APPLICABLE DESIGNATIONS FOR INDIVIDUAL(S) ASSIGNED TO PROVIDE
SERVICES
(Category descriptions available at
www.chulavistaca.gov/departments/city-clerk/conflict-of- interest-code .)
Name Email Address Applicable Designation
Enter Name of Each
Individual Who Will Be
Providing Service Under
the Contract – If
individuals have different
disclosure requirements,
duplicate this row and
complete separately for
each individual
Enter email
address(es)
☐ A. Full Disclosure
☐ B. Limited Disclosure
(select one or
more of the categories under which the
Contractor shall file
):
☐ 1. ☐ 2. ☐ 3. ☐ 4. ☐ 5. ☐
6. ☐ 7.
Justification:
☐ C. Excluded from Disclosure
1. Required Filers
Each individual who will be performing services for the City pursuant to the Agreement and who meets the definition of “Consultant,” pursuant to FPPC Regulation 18700.3, must file a Form 700.
2. Required Filing Deadlines
Each initial Form 700 required under this Agreement shall be filed with the Office of the City Clerk via the City's online filing system, NetFile, within 30 days of the approval of the Agreement. Additional Form 700 filings will be required annually on April 1 during the term of the Agreement, and within 30 days of the termination of the Agreement.
3. Filing Designation
The City Department Director will designate each individual who will be providing services to the City pursuant to the Agreement as full disclosure, limited disclosure, or excluded from disclosure , based on an analysis of the services the Contractor will pro vide. Notwithstanding this designation or anything
1 Cal. Gov. Code §§81000 et seq. ; FPPC Regs. 18700.3 and 18704. 2 Chula Vista Municipal Code §§2.02.010-2.02.040.
3 Cal. Gov. Code §§53234, et seq.
4 CA FPPC Adv. A-15-147 ( Chadwick ) (2015); Davis v. Fresno Unified School District (2015) 237 Cal.App.4 th
261; FPPC Reg. 18700.3 (Consultant defined as an “i ndividual” who participates in making a governmenta l decision; “individual” does not include corporation or limited liability company).
in the Agreement, the Contractor is ultimately resp onsible for complying with FPPC regulations and filing requirements. If you have any questions rega rding filing requirements, please do not hesitate t o contact the City Clerk at (619)691-5041, or the FPPC at 1-866-ASK-FPPC, or (866) 275-3772 *2.
Pursuant to the duly adopted City of Chula Vista Conflict of Interest Code, this document shall serve as the written determination of the consultant’s requirement to comply with the disclosure requirements set forth in the Code.
Completed by Kalani Camacho, Public Works Superintendent.