Usage Item Description Metric Overage Net Unit Price
B93083 - Oracle Cloud Infrastructure-Database ManagementExternal DB Host CPU Core Per Hour 0.05
B93426 - Oracle Cloud Infrastructure-Database ManagementCloud Databases OCPU Per Hour 0.05
B93705 - Oracle Cloud Infrastructure Ops Insights for
Warehouse-Extract
Gigabyte Per Month 2.00
B93706 - Oracle Cloud Infrastructure Ops Insights for
Warehouse-Instance
OCPU Per Hour 0.5377
B95634 - Oracle Cloud Infrastructure Logging Analytics-Active Storage
Logging Analytics Storage Unit
Per Month 0 - 35
372.00
Logging Analytics Storage Unit
Per Month 35 - 103
260.4
Logging Analytics Storage Unit
Per Month 103 -
999999999999999
223.2
B96199 - Oracle Cloud Infrastructure Ops Insights for Oracle Autonomous Databases-Basic
ECPU Per Hour 0.00
B96200 - Oracle Cloud Infrastructure-Database ManagementAutonomous Databases-ECPU ECPU Per Hour 0.025
B96629 - Oracle Cloud Infrastructure-Application Performance Monitoring Service-Synthetic Usage-Free
10 Monitor Runs Per Hour 0.00
B97140 - Oracle Cloud Infrastructure Ops Insights for Oracle Autonomous Databases-Full
ECPU Per Hour 0.0075
B99259 - Oracle Cloud Infrastructure-Application Performance Monitoring Service-Stack Monitoring-Enterprise Edition
10 Monitored Resources Per
Hour
0.38 Application Development Cloud Service
B108130 - Oracle Backend for Spring Boot and MicroservicesStandard Edition-Marketplace Each 0.00
B88287 - Oracle Java Cloud Service-Enterprise
OCPU Per Hour 0.3097
B88288 - Oracle Java Cloud Service-Standard
OCPU Per Hour 0.3097
B88289 - Oracle Java Cloud Service-High Performance
OCPU Per Hour 0.7742
B88399 - Oracle Java Cloud Service-Enterprise-BYOL
OCPU Per Hour 0.1935
B88400 - Oracle Java Cloud Service-High Performance-BYOL CPQ-3523778 - 1 Issued by Oracle America, Inc. 22-JUL-2024
Usage Item Description Metric Overage Net Unit Price
OCPU Per Hour 0.1935
B88844 - Oracle Java Cloud Service-Standard-BYOL
OCPU Per Hour 0.1935
B89646 - Oracle Visual Builder
OCPU Per Hour 1.2365
B90203 - Oracle Visual Builder Studio-Additional Storage Gigabyte Storage Capacity Per
Month
1.6 B90260 - Oracle Digital Assistant Cloud Service
Request 0.0232
B90304 - Oracle Mobile Hub Cloud Service
Request 0.0028
B91346 - Oracle WebLogic Server Enterprise Edition for Oracle Cloud Infrastructure
OCPU Per Hour 0.2581
B91347 - Oracle WebLogic Suite for Oracle Cloud Infrastructure OCPU Per Hour 0.4646
B92302 - Oracle Cloud Infrastructure-Blockchain Platform Cloud Service-Standard
OCPU Per Hour 0.215
B92303 - Oracle Cloud Infrastructure-Blockchain Platform Cloud Service-Enterprise
OCPU Per Hour 0.4301
B92304 - Oracle Cloud Infrastructure-Blockchain Platform Cloud Service-Storage
Terabyte Storage Capacity Per
Month
70.4 B92305 - Oracle Cloud Infrastructure-Blockchain Platform Cloud Service-Enterprise-BYOL
OCPU Per Hour 0.3226
B92913 - Oracle WebLogic Server Enterprise Edition for Oracle Cloud Infrastructure Container Engine for Kubernetes
OCPU Per Hour 0.2581
B92914 - Oracle WebLogic Server Suite for Oracle Cloud
Infrastructure Container Engine for Kubernetes
OCPU Per Hour 0.4646
B96582 - Oracle Tuxedo for Oracle Cloud Infrastructure
OCPU Per Hour 0.5433
B96583 - Oracle Tuxedo Enterprise Edition for Oracle Cloud Infrastructure
OCPU Per Hour 0.8149
B96584 - Oracle Tuxedo Mainframe Modernization Runtimes for Oracle Cloud Infrastructure
OCPU Per Hour 1.0866
Big Data Cloud Service
B108080 - Oracle Cloud Infrastructure Generative AI-Large Meta
10,000 Transactions 0.015
CPQ-3523778 - 1 Issued by Oracle America, Inc. 22-JUL-2024
Usage Item Description Metric Overage Net Unit Price
B108085 - Oracle Cloud Infrastructure Generative AI-Large Meta-Dedicated
AI Unit Per Hour 12.00
B108711 - Oracle Cloud Infrastructure-Language-Dedicated Inferencing-Healthcare
Inferencing Unit Hour 20.00
B93423 - Oracle Cloud AI Services-Language-Pre-trained
Inferencing
1,000 Transactions 0 - 5 0.00
1,000 Transactions 5 -
999999999999999
0.25 B93555 - Oracle Big Data Service
OCPU Per Hour 0.015
B94282 - Oracle Cloud Infrastructure-Data Labeling
Annotated Data Record 0 - 1000 0.00
Annotated Data Record 1000 -
999999999999999
0.0002
B94896 - Oracle Cloud Infrastructure-Speech
Transcription Hour 0 - 5 0.00
Transcription Hour 5 -
999999999999999
0.5 B94973 - Oracle Cloud Infrastructure-Vision-Image Analysis 1,000 Transactions 0 - 5 0.00
1,000 Transactions 5 -
999999999999999
0.25 B94974 - Oracle Cloud Infrastructure-Vision-OCR
1,000 Transactions 0 - 5 0.00
1,000 Transactions 5 -
999999999999999
1.00 B94977 - Oracle Cloud Infrastructure-Vision-Custom Training Training Hour 0 - 15 0.00
Training Hour 15 -
999999999999999
1.5 B95917 - Oracle Cloud Infrastructure-Language-Custom Inferencing
1000 Transactions 3.5
B95918 - Oracle Cloud Infrastructure-Language-Custom
Inferencing-Dedicated
Inferencing Unit Hour 0 - 15 0.00
Inferencing Unit Hour 15 -
999999999999999
1.5 B95919 - Oracle Cloud Infrastructure-Language-Custom Training
Training Hour 0 - 15 0.00
Training Hour 15 -
999999999999999
1.5 B95920 - Oracle Cloud Infrastructure-Language-Text Translation 1000 Transactions 0 - 1 0.00
1000 Transactions 1 -
999999999999999
10.00 CPQ-3523778 - 1 Issued by Oracle America, Inc. 22-JUL-2024
Usage Item Description Metric Overage Net Unit Price
B96110 - Oracle Cloud Infrastructure-Document UnderstandingOCR 1,000 Transactions 0 - 5 0.00
1,000 Transactions 5 -
999999999999999
1.00 B96111 - Oracle Cloud Infrastructure-Document UnderstandingDocument Properties 1,000 Transactions 0 - 5 0.00
1,000 Transactions 5 -
999999999999999
0.25 B96112 - Oracle Cloud Infrastructure-Document UnderstandingDocument Extraction 1,000 Transactions 0 - 5 0.00
1,000 Transactions 5 -
999999999999999
10.00 B96113 - Oracle Cloud Infrastructure-Document UnderstandingCustom Training Training Hour 0 - 15 0.00
Training Hour 15 -
999999999999999
1.5 B97193 - Oracle Cloud Infrastructure-Document UnderstandingCustom Document Properties 1,000 Transactions 0 - 5 0.00
1,000 Transactions 5 -
999999999999999
1.5 B97194 - Oracle Cloud Infrastructure-Document UnderstandingCustom Document Extraction 1,000 Transactions 0 - 5 0.00
1,000 Transactions 5 -
999999999999999
30.00 Content Management Cloud Service
B108776 - WebCenter Imaging For Oracle Cloud Infrastructure OCPU Per Hour 0.6394
B108777 - WebCenter Enterprise Capture For Oracle Cloud Infrastructure
OCPU Per Hour 0.417
B108778 - WebCenter Enterprise Capture Standard Edition For Oracle Cloud Infrastructure
OCPU Per Hour 0.2085
B108779 - WebCenter Sites For Oracle Cloud Infrastructure OCPU Per Hour 0.695
B108780 - WebCenter Sites Satellite Server For Oracle Cloud Infrastructure
OCPU Per Hour 0.1738
B108781 - WebCenter Portal For Oracle Cloud Infrastructure OCPU Per Hour 0.8688
B108782 - WebCenter Forms Recognition For Oracle Cloud
Infrastructure
OCPU Per Hour 0.695
B108783 - WebCenter Content For Oracle Cloud Infrastructure CPQ-3523778 - 1 Issued by Oracle America, Inc. 22-JUL-2024
Usage Item Description Metric Overage Net Unit Price
OCPU Per Hour 1.1989
B108784 - WebCenter Universal Content Management For
Oracle Cloud Infrastructure
OCPU Per Hour 0.7993
B89969 - Oracle Content and Experience Cloud ServiceStandard Active User Per Hour 0.15
B89970 - Oracle Content and Experience Cloud ServiceEnterprise Active User Per Hour 0.45
B89971 - Oracle Content and Experience Cloud Service-Visitor Active User Per Hour 0.0101
B91210 - Oracle Content Management
5,000 Assets Per Month 0 - 1 640.00
5,000 Assets Per Month 1 - 3 640.00
5,000 Assets Per Month 3 - 100 172.00
5,000 Assets Per Month 100 -
999999999999999
32.00 B91211 - Oracle Content Management-Outbound Data Transfer Gigabyte Outbound Data Transfer
Per Month
0.04 B92637 - Oracle Content Management-BYOL
5000 Assets Per Month 0 - 10 120.00
5000 Assets Per Month 10 - 200 60.00
5000 Assets Per Month 200 -
10000
30.00 5000 Assets Per Month 10000 -
999999999
3.6 B93411 - Oracle Content Management-Starter Edition
5000 Assets Per Month 0 - 1 0.00
5000 Assets Per Month 1 - 3 75.00
5000 Assets Per Month 3 -
999999999999999
400.00
B95279 - Media Services-Media Flow-Standard-H264-SD-Below 30fps
Minute of Output Media Content 0.001
B95280 - Media Services-Media Flow-Standard-H264-SDAbove 30fps and Below 60fps Minute of Output Media Content 0.002
B95281 - Media Services-Media Flow-Standard-H264-SDAbove 60fps and Below 120fps Minute of Output Media Content 0.003
B95282 - Media Services-Media Flow-Standard-H264-HDBelow 30fps Minute of Output Media Content 0.003
B95283 - Media Services-Media Flow-Standard-H264-HDAbove 30fps and Below 60fps Minute of Output Media Content 0.004
B95284 - Media Services-Media Flow-Standard-H264-HDAbove 60fps and Below 120fps CPQ-3523778 - 1 Issued by Oracle America, Inc. 22-JUL-2024
Usage Item Description Metric Overage Net Unit Price
Minute of Output Media Content 0.01
B95285 - Media Services-Media Flow-Standard-H264-4k-Below 30fps
Minute of Output Media Content 0.015
B95286 - Media Services-Media Flow-Standard-H264-4k-Above 30fps and Below 60fps
Minute of Output Media Content 0.018
B95287 - Media Services-Media Flow-Standard-H264-4k-Above 60fps and Below 120fps
Minute of Output Media Content 0.036
B95288 - Media Services-Media Flow-Standard-VP8-SD-Below 30fps
Minute of Output Media Content 0.003
B95289 - Media Services-Media Flow-Standard-VP8-SD-Above 30fps and Below 60fps
Minute of Output Media Content 0.004
B95290 - Media Services-Media Flow-Standard-VP8-SD-Above 60fps and Below 120fps
Minute of Output Media Content 0.007
B95291 - Media Services-Media Flow-Standard-VP8-HD-Below 30fps
Minute of Output Media Content 0.008
B95292 - Media Services-Media Flow-Standard-VP8-HD-Above 30fps and Below 60fps
Minute of Output Media Content 0.01
B95293 - Media Services-Media Flow-Standard-VP8-HD-Above 60fps and Below 120fps
Minute of Output Media Content 0.015
B95294 - Media Services-Media Flow-Standard-VP8-4k-Below 30fps
Minute of Output Media Content 0.036
B95295 - Media Services-Media Flow-Standard-VP8-4k-Above 30fps and Below 60fps
Minute of Output Media Content 0.04
B95296 - Media Services-Media Flow-Standard-VP8-4k-Above 60fps and Below 120fps
Minute of Output Media Content 0.05
B95297 - Media Services-Media Flow-Standard-H265VP9-SDBelow 30fps Minute of Output Media Content 0.005
B95298 - Media Services-Media Flow-Standard-H265VP9-SDAbove 30fps and Below 60fps Minute of Output Media Content 0.007
B95299 - Media Services-Media Flow-Standard-H265VP9-SDAbove 60fps and Below 120fps Minute of Output Media Content 0.012
B95300 - Media Services-Media Flow-Standard-H265VP9-HDBelow 30fps Minute of Output Media Content 0.01
CPQ-3523778 - 1 Issued by Oracle America, Inc. 22-JUL-2024
Usage Item Description Metric Overage Net Unit Price
B95301 - Media Services-Media Flow-Standard-H265VP9-HDAbove 30fps and Below 60fps Minute of Output Media Content 0.02
B95302 - Media Services-Media Flow-Standard-H265VP9-HDAbove 60fps and Below 120fps Minute of Output Media Content 0.03
B95303 - Media Services-Media Flow-Standard-H265VP9-4kBelow 30fps Minute of Output Media Content 0.026
B95304 - Media Services-Media Flow-Standard-H265VP9-4kAbove 30fps and Below 60fps Minute of Output Media Content 0.05
B95305 - Media Services-Media Flow-Standard-H265VP9-4kAbove 60fps and Below 120fps Minute of Output Media Content 0.063
B95306 - Media Services-Media Flow-Speed-H264-SD-Below
30fps
Minute of Output Media Content 0.002
B95307 - Media Services-Media Flow-Speed-H264-SD-Above
30fps and Below 60fps
Minute of Output Media Content 0.003
B95308 - Media Services-Media Flow-Speed-H264-SD-Above
60fps and Below 120fps
Minute of Output Media Content 0.004
B95309 - Media Services-Media Flow-Speed-H264-HD-Below
30fps
Minute of Output Media Content 0.004
B95310 - Media Services-Media Flow-Speed-H264-HD-Above
30fps and Below 60fps
Minute of Output Media Content 0.005
B95311 - Media Services-Media Flow-Speed-H264-HD-Above
60fps and Below 120fps
Minute of Output Media Content 0.012
B95312 - Media Services-Media Flow-Speed-H264-4k-Below
30fps
Minute of Output Media Content 0.018
B95313 - Media Services-Media Flow-Speed-H264-4k-Above
30fps and Below 60fps
Minute of Output Media Content 0.02
B95314 - Media Services-Media Flow-Speed-H264-4k-Above
60fps and Below 120fps
Minute of Output Media Content 0.04
B95315 - Media Services-Media Flow-Speed-VP8-SD-Below
30fps
Minute of Output Media Content 0.005
B95316 - Media Services-Media Flow-Speed-VP8-SD-Above
30fps and Below 60fps
Minute of Output Media Content 0.006
B95317 - Media Services-Media Flow-Speed-VP8-SD-Above
60fps and Below 120fps
CPQ-3523778 - 1 Issued by Oracle America, Inc. 22-JUL-2024
Usage Item Description Metric Overage Net Unit Price
Minute of Output Media Content 0.008
B95318 - Media Services-Media Flow-Speed-VP8-HD-Below
30fps
Minute of Output Media Content 0.012
B95319 - Media Services-Media Flow-Speed-VP8-HD-Above
30fps and Below 60fps
Minute of Output Media Content 0.015
B95320 - Media Services-Media Flow-Speed-VP8-HD-Above
60fps and Below 120fps
Minute of Output Media Content 0.018
B95321 - Media Services-Media Flow-Speed-VP8-4k-Below
30fps
Minute of Output Media Content 0.048
B95322 - Media Services-Media Flow-Speed-VP8-4k-Above
30fps and Below 60fps
Minute of Output Media Content 0.05
B95323 - Media Services-Media Flow-Speed-VP8-4k-Above
60fps and Below 120fps
Minute of Output Media Content 0.06
B95324 - Media Services-Media Flow-Speed-H265VP9-SDBelow 30fps Minute of Output Media Content 0.006
B95325 - Media Services-Media Flow-Speed-H265VP9-SDAbove 30fps and Below 60fps Minute of Output Media Content 0.008
B95326 - Media Services-Media Flow-Speed-H265VP9-SDAbove 60fps and Below 120fps Minute of Output Media Content 0.015
B95327 - Media Services-Media Flow-Speed-H265VP9-HDBelow 30fps Minute of Output Media Content 0.012
B95328 - Media Services-Media Flow-Speed-H265VP9-HDAbove 30fps and Below 60fps Minute of Output Media Content 0.025
B95329 - Media Services-Media Flow-Speed-H265VP9-HDAbove 60fps and Below 120fps Minute of Output Media Content 0.036
B95330 - Media Services-Media Flow-Speed-H265VP9-4kBelow 30fps Minute of Output Media Content 0.05
B95331 - Media Services-Media Flow-Speed-H265VP9-4kAbove 30fps and Below 60fps Minute of Output Media Content 0.06
B95332 - Media Services-Media Flow-Speed-H265VP9-4kAbove 60fps and Below 120fps Minute of Output Media Content 0.075
B95333 - Media Services-Media Flow-Quality-H264-SD-Below 30fps
Minute of Output Media Content 0.003
CPQ-3523778 - 1 Issued by Oracle America, Inc. 22-JUL-2024
Usage Item Description Metric Overage Net Unit Price
B95334 - Media Services-Media Flow-Quality-H264-SD-Above 30fps and Below 60fps
Minute of Output Media Content 0.004
B95335 - Media Services-Media Flow-Quality-H264-SD-Above 60fps and Below 120fps
Minute of Output Media Content 0.005
B95336 - Media Services-Media Flow-Quality-H264-HD-Below 30fps
Minute of Output Media Content 0.005
B95337 - Media Services-Media Flow-Quality-H264-HD-Above 30fps and Below 60fps
Minute of Output Media Content 0.006
B95338 - Media Services-Media Flow-Quality-H264-HD-Above 60fps and Below 120fps
Minute of Output Media Content 0.015
B95339 - Media Services-Media Flow-Quality-H264-4k-Below 30fps
Minute of Output Media Content 0.024
B95340 - Media Services-Media Flow-Quality-H264-4k-Above 30fps and Below 60fps
Minute of Output Media Content 0.03
B95341 - Media Services-Media Flow-Quality-H264-4k-Above 60fps and Below 120fps
Minute of Output Media Content 0.05
B95342 - Media Services-Media Flow-Quality-VP8-SD-Below 30fps
Minute of Output Media Content 0.006
B95343 - Media Services-Media Flow-Quality-VP8-SD-Above 30fps and Below 60fps
Minute of Output Media Content 0.008
B95344 - Media Services-Media Flow-Quality-VP8-SD-Above 60fps and Below 120fps
Minute of Output Media Content 0.01
B95345 - Media Services-Media Flow-Quality-VP8-HD-Below 30fps
Minute of Output Media Content 0.015
B95346 - Media Services-Media Flow-Quality-VP8-HD-Above 30fps and Below 60fps
Minute of Output Media Content 0.018
B95347 - Media Services-Media Flow-Quality-VP8-HD-Above 60fps and Below 120fps
Minute of Output Media Content 0.02
B95348 - Media Services-Media Flow-Quality-VP8-4k-Below 30fps
Minute of Output Media Content 0.054
B95349 - Media Services-Media Flow-Quality-VP8-4k-Above 30fps and Below 60fps
Minute of Output Media Content 0.06
B95350 - Media Services-Media Flow-Quality-VP8-4k-Above 60fps and Below 120fps
CPQ-3523778 - 1 Issued by Oracle America, Inc. 22-JUL-2024
Usage Item Description Metric Overage Net Unit Price
Minute of Output Media Content 0.07
B95351 - Media Services-Media Flow-Quality-H265VP9-SDBelow 30fps Minute of Output Media Content 0.03
B95352 - Media Services-Media Flow-Quality-H265VP9-SDAbove 30fps and Below 60fps Minute of Output Media Content 0.045
B95353 - Media Services-Media Flow-Quality-H265VP9-SDAbove 60fps and Below 120fps Minute of Output Media Content 0.06
B95354 - Media Services-Media Flow-Quality-H265VP9-HDBelow 30fps Minute of Output Media Content 0.06
B95355 - Media Services-Media Flow-Quality-H265VP9-HDAbove 30fps and Below 60fps Minute of Output Media Content 0.09
B95356 - Media Services-Media Flow-Quality-H265VP9-HDAbove 60fps and Below 120fps Minute of Output Media Content 0.12
B95357 - Media Services-Media Flow-Quality-H265VP9-4kBelow 30fps Minute of Output Media Content 0.12
B95358 - Media Services-Media Flow-Quality-H265VP9-4kAbove 30fps and Below 60fps Minute of Output Media Content 0.18
B95359 - Media Services-Media Flow-Quality-H265VP9-4kAbove 60fps and Below 120fps Minute of Output Media Content 0.24
B95375 - Media Services-Media Streams
GB of Packaged Content 0.05
B95422 - Oracle Content Management-Video Creation PlatformVideo Pack (500 Videos 500 GB) Per Month 750.00
B96502 - Oracle Content Management-Advanced Hosting
Instance Per Month 5,200.00
B97408 - Oracle Content Management-Sales Accelerator Suite User Per Month 0 - 100 120.00
User Per Month 100 - 1000 60.00
User Per Month 1000 -
999999999999999
24.00 Analytics Cloud Service
B89630 - Oracle Analytics Cloud-Professional
OCPU Per Hour 1.0753
B89631 - Oracle Analytics Cloud-Enterprise
OCPU Per Hour 2.1506
B89636 - Oracle Analytics Cloud-Professional-BYOL
OCPU Per Hour 0.3226
B89637 - Oracle Analytics Cloud-Enterprise-BYOL
OCPU Per Hour 0.3226
CPQ-3523778 - 1 Issued by Oracle America, Inc. 22-JUL-2024
Usage Item Description Metric Overage Net Unit Price
B92335 - Essbase for Oracle Cloud Infrastructure
OCPU Per Hour 1.3129
B92682 - Oracle Analytics-Professional
User Per Month 16.00
B92683 - Oracle Analytics-Enterprise
User Per Month 80.00
B94568 - Oracle Analytics Server for Oracle Cloud Infrastructure OCPU Per Hour 1.75
Storage Cloud Service
B89057 - Oracle Cloud Infrastructure-File Storage
Gigabyte Storage Capacity per
Month
0.3 B90938 - Oracle Cloud Infrastructure-Streaming-PUT or GET Gigabytes of Data Transferred 0.025
B90939 - Oracle Cloud Infrastructure-Streaming-Storage
Gigabyte Per Hour 0.0002
B91445 - Oracle Cloud Infrastructure-Block Volume-Free
Gigabyte Storage Capacity per
Month
0.00 B91627 - Oracle Cloud Infrastructure-Object Storage-Requests 10,000 Requests per Month 0 - 5 0.00
10,000 Requests per Month 5 -
999999999
0.0034
B91628 - Oracle Cloud Infrastructure-Object Storage-Storage Gigabyte Storage Capacity per
Month 0 - 10
0.00 Gigabyte Storage Capacity per
Month 10 - 999999999
0.0255
B91633 - Oracle Cloud Infrastructure-Archive Storage-Free Gigabyte Storage Capacity per
Month 0 - 10
0.00 Gigabyte Storage Capacity per
Month 10 - 999999999
0.0026
B91961 - Oracle Cloud Infrastructure-Block Volume Storage Gigabyte Storage Capacity Per
Month
0.0255
B91962 - Oracle Cloud Infrastructure-Block Volume
Performance
Performance Units Per Gigabyte
Per Month
0.0017
B93000 - Oracle Cloud Infrastructure-Infrequent Access
Storage-Storage
Gigabyte Storage Capacity Per
Month 0 - 10
0.00 Gigabyte Storage Capacity Per
Month 10 - 999999999999999
0.01 B93001 - Oracle Cloud Infrastructure-Data Retrieval-Storage Gigabyte Storage Retrieved Per
Month 0 - 10
0.00 CPQ-3523778 - 1 Issued by Oracle America, Inc. 22-JUL-2024
Usage Item Description Metric Overage Net Unit Price
Gigabyte Storage Retrieved Per
Month 10 - 999999999999999
0.01 B95410 - Oracle ZFS Storage-High Availability
Instance Per Hour 1.85
Enterprise Integration Cloud Service
B89639 - Oracle Integration Cloud Service-Standard
5K Messages Per Hour 0.6452
B89640 - Oracle Integration Cloud Service-Enterprise
5K Messages Per Hour 1.2903
B89643 - Oracle Integration Cloud Service-Standard-BYOL 20K Messages Per Hour 0.3226
B89644 - Oracle Integration Cloud Service-Enterprise-BYOL 20K Messages Per Hour 0.3226
B92450 - Oracle SOA Suite for Oracle Cloud Infrastructure OCPU Per Hour 0.7231
B92451 - Oracle SOA Suite for Oracle Cloud Infrastructure-with B2B Adapter for EDI
OCPU Per Hour 1.2071
B95504 - Oracle Cloud Infrastructure Process Automation-User Active Process User Per Hour 0.1
B95505 - Oracle Cloud Infrastructure Process AutomationExecution Pack Execution Pack Per Month 0 - 1 0.00
Execution Pack Per Month 1 -
999999999999999
125.00
Security and Identity Management Cloud Service
B108188 - Oracle Cloud Infrastructure Cloud Guard Workload Protection Standard
Node Per Hour 0.0069
B108189 - Oracle Cloud Infrastructure Cloud Guard Workload Protection Limited
Node Per Hour 0.00
B108190 - Oracle Cloud Guard Instance Security Adhoc
Queries Enterprise
Request 0 - 950000 0.00
Request 950000 -
999999999999999
0.001
B90328 - Oracle Cloud Infrastructure-Key Management-Private Vault
Virtual Private Vault Per Hour 3.724
B90555 - Oracle Identity Cloud Service-Enterprise User
User Per Month 3.2
B90556 - Oracle Identity Cloud Service-Consumer User
User Per Month 0.016
B90557 - Oracle Identity Cloud Service-Enterprise User-BYOL User Per Month 0.8
B90558 - Oracle Identity Cloud Service-Consumer User-BYOL User Per Month 0.004
B90936 - Oracle Identity Foundation Cloud Service
CPQ-3523778 - 1 Issued by Oracle America, Inc. 22-JUL-2024
Usage Item Description Metric Overage Net Unit Price
Each 0.00
B92092 - Oracle Cloud Infrastructure-KMS Vault-Key Versions Key Version per Month 0 - 20 0.00
Key Version per Month 20 -
999999999
0.5334
B93493 - Oracle Cloud Infrastructure Identity and Access Management-External User
User Per Month 0.016
B93494 - Oracle Cloud Infrastructure Identity and Access Management-Oracle Apps Premium
User Per Month 0.25
B93495 - Oracle Cloud Infrastructure Identity and Access Management-Premium
User Per Month 3.2
B93496 - Oracle Cloud Infrastructure Identity and Access Management-SMS
1 SMS Message Sent 0 - 1000 0.00
1 SMS Message Sent 1000 -
999999999999999
0.03 B93497 - Oracle Cloud Infrastructure Identity and Access Management-Token
Token 0 - 10000 0.00
Token 10000 - 999999999999999 0.004
B93498 - Oracle Cloud Infrastructure Identity and Access Management-Replication
User Per Month 0.004
B94173 - Oracle Threat Intelligence Service
API Calls 0.00
B94277 - Oracle Cloud Infrastructure-Web Application FirewallRequests 1,000,000 Incoming Requests Per
Month 0 - 10
0.00 1,000,000 Incoming Requests Per
Month 10 - 999999999999999
0.6 B94579 - Oracle Cloud Infrastructure-Web Application FirewallInstance Instance Per Month 0 - 1 0.00
Instance Per Month 1 -
999999999999999
5.00 B97172 - Oracle Access Governance for Oracle Cloud Infrastructure-Workforce User
Workforce User Per Month 0 -
100000
0.1 Workforce User Per Month
100000 - 999999999999999
0.005
B97173 - Oracle Access Governance for Oracle WorkloadsWorkforce User Workforce User Per Month 0 -
10000
2.00 CPQ-3523778 - 1 Issued by Oracle America, Inc. 22-JUL-2024
Usage Item Description Metric Overage Net Unit Price
Workforce User Per Month 10000
- 30000
0.75 Workforce User Per Month 30000
- 999999999999999
0.1 B97179 - Oracle Access Governance Premium-Consumer User Consumer User Per Month 0.016
B97180 - Oracle Access Governance for Oracle WorkloadsConsumer User Consumer User Per Month 0.016
B97181 - Oracle Access Governance Premium-Workforce User Workforce User Per Month 0 -
10000
3.00 Workforce User Per Month 10000
- 30000
1.13 Workforce User Per Month 30000
- 999999999999999
0.15 B98100 - Oracle Cloud Infrastructure-External Key Management Key Version Per Month 3.00
B99597 - Oracle Cloud Infrastructure-Dedicated Key
Management-(Minimum 3 HSM Partitions)
HSM Partition Per Hour 1.75
Data Integration Cloud Service
B88299 - Oracle Data Integrator Cloud Service
OCPU Per Hour 0.7742
B88406 - Oracle Data Integrator Cloud Service-BYOL
OCPU Per Hour 0.1935
B92598 - Oracle Cloud Infrastructure-Data IntegrationWorkspace Workspace Usage per Hour 0.16
B92599 - Oracle Cloud Infrastructure-Data Integration
Gigabyte of Data Processed per
Hour
0.04 B92695 - Oracle Stream Analytics for Oracle Cloud
Infrastructure
OCPU Per Hour 0.9498
B92992 - Oracle Cloud Infrastructure-GoldenGate
OCPU Per Hour 1.3441
B92993 - Oracle Cloud Infrastructure-GoldenGate-BYOL
OCPU Per Hour 0.3226
B93306 - Oracle Cloud Infrastructure-Data Integration-Pipeline Operator Execution
Execution Hour 0 - 30 0.00
Execution Hour 30 -
999999999999999
0.3 Compute Cloud Service
B109479 - Oracle Cloud Infrastructure-Compute-GPU-L40S
GPU Per Hour 3.5
B88315 - Oracle Cloud Infrastructure-Compute-Bare Metal Standard-X5
CPQ-3523778 - 1 Issued by Oracle America, Inc. 22-JUL-2024
Usage Item Description Metric Overage Net Unit Price
OCPU Per Hour 0.0638
B88317 - Oracle Cloud Infrastructure-Compute-Virtual Machine Standard-X5
OCPU Per Hour 0.0638
B88513 - Oracle Cloud Infrastructure-Compute-Bare Metal Standard-X7
OCPU Per Hour 0.0638
B88514 - Oracle Cloud Infrastructure-Compute-Virtual Machine Standard-X7
OCPU Per Hour 0.0638
B88515 - Oracle Cloud Infrastructure-Compute-Bare Metal Dense I/O-X7
OCPU Per Hour 0.1275
B88516 - Oracle Cloud Infrastructure-Compute-Virtual Machine Dense I/O-X7
OCPU Per Hour 0.1275
B88517 - Oracle Cloud Infrastructure-Compute-Bare Metal GPU Standard-X7
GPU Per Hour 1.275
B88518 - Oracle Cloud Infrastructure-Compute-Virtual Machine GPU Standard-X7
GPU Per Hour 1.275
B89734 - Oracle Cloud Infrastructure-Compute-GPU StandardV2 GPU Per Hour 2.95
B90398 - Oracle Cloud Infrastructure-Compute-HPC-X7
OCPU Per Hour 0.075
B90425 - Oracle Cloud Infrastructure-Compute-Standard-E2 OCPU Per Hour 0.03
B90617 - Oracle Functions-Execution Time-10,000 Gigabyte Memory
Seconds 0 - 40 0.00
Seconds 40 - 999999999 0.1417
B90618 - Oracle Functions-Invocations
1,000,000 Function Invocations 0
- 2
0.00 1,000,000 Function Invocations 2
- 999999999
0.2 B91119 - Oracle Cloud Infrastructure-Compute-Bare Metal Standard-B1
OCPU Per Hour 0.0638
B91120 - Oracle Cloud Infrastructure-Compute-Virtual Machine Standard-B1
OCPU Per Hour 0.0638
B91372 - Oracle Cloud Infrastructure-Compute-Microsoft SQL Enterprise
OCPU Per Hour 1.47
B91373 - Oracle Cloud Infrastructure-Compute-Microsoft SQL Standard
OCPU Per Hour 0.37
CPQ-3523778 - 1 Issued by Oracle America, Inc. 22-JUL-2024
Usage Item Description Metric Overage Net Unit Price
B91444 - Oracle Cloud Infrastructure-Compute-Virtual Machine Standard-E2 Micro-Free
OCPU Per Hour 0.00
B92072 - Oracle Cloud Infrastructure-API Gateway-1,000,000 API Calls
1,000,000 API Calls Per Month 3.00
B92306 - Oracle Cloud Infrastructure-Compute-Standard-E3- OCPU
OCPU Per Hour 0.025
B92307 - Oracle Cloud Infrastructure-Compute-Standard-E3- Memory
Gigabyte Per Hour 0.0015
B92740 - Oracle Cloud Infrastructure-Compute-GPU-E3
GPU Per Hour 3.05
B93113 - Oracle Cloud Infrastructure-Compute-Standard-E4 OCPU Per Hour 0.025
B93114 - Oracle Cloud Infrastructure-Compute-Standard-E4- Memory
Gigabyte Per Hour 0.0015
B93121 - Oracle Cloud Infrastructure-Compute-Dense I/O-E4 OCPU Per Hour 0.025
B93122 - Oracle Cloud Infrastructure-Compute-Dense I/O-E4 Gigabyte Memory Per Hour 0.0015
B93123 - Oracle Cloud Infrastructure-Compute-Dense I/O-E4 NVMe Terabyte Per Hour 0.0612
B93297 - Oracle Cloud Infrastructure-Compute-Standard-A1 OCPU Per Hour 0 - 3000 0.00
OCPU Per Hour 3000 -
999999999999999
0.01 B93298 - Oracle Cloud Infrastructure-Compute-Standard-A1- Memory
Gigabyte Per Hour 0 - 18000 0.00
Gigabyte Per Hour 18000 -
999999999999999
0.0015
B93311 - Oracle Cloud Infrastructure-Compute-Optimized-X9 OCPU Per Hour 0.054
B93312 - Oracle Cloud Infrastructure-Compute-Optimized-X9- Memory
Gigabyte Per Hour 0.0015
B93544 - Oracle Cloud Infrastructure-Compute-GPU-E4
GPU Per Hour 3.05
B93704 - Oracle Cloud Infrastructure-Compute-GPU-T1
GPU Per Hour 1.55
B94176 - Oracle Cloud Infrastructure-Compute-Standard-X9 OCPU Per Hour 0.04
B94177 - Oracle Cloud Infrastructure-Compute-Standard-X9- Memory
Gigabyte Per Hour 0.0015
B95518 - Oracle Cloud Infrastructure-Secure Desktop
CPQ-3523778 - 1 Issued by Oracle America, Inc. 22-JUL-2024
Usage Item Description Metric Overage Net Unit Price
Desktop Per Month 5.00
B95907 - Oracle Cloud Infrastructure-Compute-GPU-A100-v2 GPU Per Hour 4.00
B95909 - Oracle Cloud Infrastructure-Compute-GPU-A10
GPU Per Hour 2.00
B96109 - Oracle Container Engine for Kubernetes-Virtual Node Virtual Node Per Hour 0.015
B96479 - Oracle Compute Cloud@Customer-ComputeStandard-E5 OCPU Per Hour 0.03
B96480 - Oracle Compute Cloud@Customer-ComputeStandard-E5-Memory Gibibyte Memory Per Hour 0.002
B96481 - Oracle Compute Cloud@Customer-Block Volume
Storage-Balanced
Gigabyte Storage Capacity Per
Month
0.0425
B96482 - Oracle Compute Cloud@Customer-Block Volume
Storage-Performance
Gigabyte Storage Capacity Per
Month
0.0595
B96483 - Oracle Compute Cloud@Customer-File Storage
Gigabyte Storage Capacity Per
Month
0.3 B96484 - Oracle Compute Cloud@Customer-Object StorageStorage Gigabyte Storage Capacity Per
Month
0.0255
B96485 - Oracle Compute Cloud@Customer-Load Balancer
Load Balancer Hour 0.0113
B96531 - Oracle Cloud Infrastructure-Compute-HPC-E5
OCPU Per Hour 0.044
B96545 - Oracle Container Engine for Kubernetes-Enhanced Cluster
Cluster Per Hour 0.1
B97384 - Oracle Cloud Infrastructure-Compute-Standard-E5- OCPU
OCPU Per Hour 0.03
B97385 - Oracle Cloud Infrastructure-Compute-Standard-E5- Memory
Gigabytes Per Hour 0.002
B98202 - Oracle Cloud Infrastructure-Compute-Dense I/O-E5 OCPU
OCPU Per Hour 0.03
B98203 - Oracle Cloud Infrastructure-Compute-Dense I/O-E5 Memory
Gigabyte Per Hour 0.002
B98204 - Oracle Cloud Infrastructure-Compute-Dense I/O-E5 NVMe
NVMe Terabyte Per Hour 0.0612
CPQ-3523778 - 1 Issued by Oracle America, Inc. 22-JUL-2024
Usage Item Description Metric Overage Net Unit Price
B98415 - Oracle Cloud Infrastructure-Compute-GPU-H100
GPU Per Hour 10.00
Network Cloud Service
B107975 - Oracle Cloud Infrastructure-FastConnect 400 Gbps Port Hour 20.00
B88325 - Oracle Cloud Infrastructure-FastConnect 1 Gbps Port Hour 0.2125
B88326 - Oracle Cloud Infrastructure-FastConnect 10 Gbps Port Hour 1.275
B88327 - Oracle Cloud Infrastructure-Outbound Data TransferOriginating in North America, Europe, and UK Gigabyte Outbound Data Transfer
Per Month 0 - 10240
0.00 Gigabyte Outbound Data Transfer
Per Month 10240 -
999999999999999
0.0085
B88523 - Oracle Cloud Infrastructure-Email Delivery
1,000 Emails Sent 0 - 3 0.00
1,000 Emails Sent 3 -
999999999999999
0.085
B88525 - Oracle Cloud Infrastructure-DNS
1,000,000 Queries 0.85
B90323 - Oracle Cloud Infrastructure-Health Checks-Basic Endpoints Per Month 0.3
B90325 - Oracle Cloud Infrastructure-Health Checks-Premium Endpoints Per Month 1.3
B90327 - Oracle Cloud Infrastructure-DNS Traffic Management 1,000,000 DNS Traffic
Management Queries
4.00 B90925 - Oracle Cloud Infrastructure-Monitoring-Ingestion Million Datapoints 0 - 500 0.00
Million Datapoints 500 -
999999999
0.0025
B90926 - Oracle Cloud Infrastructure-Monitoring-Retrieval Million Datapoints 0 - 1000 0.00
Million Datapoints 1000 -
999999999
0.0015
B90940 - Oracle Cloud Infrastructure-Notifications-HTTPS Delivery
Million Delivery Operations 0 - 1 0.00
Million Delivery Operations 1 -
999999999
0.6 B90941 - Oracle Cloud Infrastructure-Notifications-Email Delivery
1,000 Emails Sent 0 - 1 0.00
1,000 Emails Sent 1 - 999999999 0.02
B92593 - Oracle Cloud Infrastructure-Logging-Storage
Gigabyte Log Storage Per Month
0 - 10
0.00 CPQ-3523778 - 1 Issued by Oracle America, Inc. 22-JUL-2024
Usage Item Description Metric Overage Net Unit Price
Gigabyte Log Storage Per Month
10 - 999999999
0.05 B93004 - Oracle Cloud Infrastructure-Notifications-SMS Outbound to Country Zone 1
1 SMS Message Sent 0 - 100 0.00
1 SMS Message Sent 100 -
999999999999999
0.015
B93005 - Oracle Cloud Infrastructure-Notifications-SMS
Outbound to Country Zone 2
1 SMS Message Sent 0 - 100 0.00
1 SMS Message Sent 100 -
999999999999999
0.045
B93006 - Oracle Cloud Infrastructure-Notifications-SMS
Outbound to Country Zone 3
1 SMS Message Sent 0 - 100 0.00
1 SMS Message Sent 100 -
999999999999999
0.086
B93007 - Oracle Cloud Infrastructure-Notifications-SMS
Outbound to Country Zone 4
1 SMS Message Sent 0 - 100 0.00
1 SMS Message Sent 100 -
999999999999999
0.12 B93008 - Oracle Cloud Infrastructure-Notifications-SMS Outbound to Country Zone 5
1 SMS Message Sent 0 - 100 0.00
1 SMS Message Sent 100 -
999999999999999
0.24 B93030 - Oracle Cloud Infrastructure-Load Balancer Base Load Balancer Hour 0 - 744 0.00
Load Balancer Hour 744 -
999999999
0.0113
B93031 - Oracle Cloud Infrastructure-Load Balancer Bandwidth Mbps Per Hour 0 - 7440 0.00
Mbps Per Hour 7440 - 999999999 0.0001
B93126 - Oracle Cloud Infrastructure-FastConnect 100Gbps Port Hour 10.75
B93455 - Oracle Cloud Infrastructure-Outbound Data TransferOriginating in APAC, Japan, and South America Gigabyte Outbound Data Transfer
Per Month 0 - 10240
0.00 Gigabyte Outbound Data Transfer
Per Month 10240 -
999999999999999
0.025
B93456 - Oracle Cloud Infrastructure-Outbound Data TransferOriginating in Middle East and Africa Gigabyte Outbound Data Transfer
Per Month 0 - 10240
0.00 Gigabyte Outbound Data Transfer
Per Month 10240 -
999999999999999
0.05 CPQ-3523778 - 1 Issued by Oracle America, Inc. 22-JUL-2024
Usage Item Description Metric Overage Net Unit Price
B95697 - Oracle Cloud Infrastructure Queue
1,000,000 Requests 0 - 1 0.00
1,000,000 Requests 1 -
999999999999999
0.22 Data Management Cloud Service
B107951 - Oracle Exadata Exascale VM Filesystem Storage Gigabyte (GB) Storage Capacity
Per Month
0.0425
B107952 - Oracle Exadata Exascale Smart Database Storage Gigabyte (GB) Storage Capacity
Per Month
0.1156
B108030 - MySQL Database-ECPU
ECPU Per Hour 0.0366
B109166 - MySQL HeatWave-AWS-Storage
Gigabyte Storage Capacity Per
Month
0.03 B109169 - MySQL Database-Outbound Data Transfer-Inter OCI Region
Gigabyte Outbound Data Transfer
Per Month
0.04 B109187 - MySQL Database-AWS-Ingress private endpoint Endpoint Per Hour 0.0214
B109188 - MySQL Database-AWS-Egress private endpoint
Endpoint Per Hour 0.0106
B109355 - Oracle Exadata Exascale RDMA Compute
Infrastructure
ECPU Per Hour 0.025
B109356 - Oracle Exadata Exascale Database ECPU
ECPU Per Hour 0.336
B109357 - Oracle Exadata Exascale Database ECPU-BYOL
ECPU Per Hour 0.0807
B109375 - Oracle Exadata Exascale Additional Flash Cache Gigabyte (GB) Per Hour 0.0005
B109458 - MySQL Database-AWS-Private inbound and
outbound network traffic
Gigabyte (GB) of Data
Transferred
0.0086
B88290 - Oracle Database Cloud Service-Enterprise EditionGeneral Purpose OCPU Per Hour 0.4301
B88291 - Oracle Database Cloud Service-Enterprise Edition Extreme Performance-General Purpose
OCPU Per Hour 1.3441
B88292 - Oracle Database Cloud Service-Enterprise Edition High Performance-General Purpose
OCPU Per Hour 0.8871
B88293 - Oracle Database Cloud Service-Standard EditionGeneral Purpose OCPU Per Hour 0.215
CPQ-3523778 - 1 Issued by Oracle America, Inc. 22-JUL-2024
Usage Item Description Metric Overage Net Unit Price
B88294 - Oracle Database Backup Service-Outbound Data
Transfer
Gigabyte Outbound Data Transfer
per Month 0 - 1
0.00 Gigabyte Outbound Data Transfer
per Month 1 - 10240
0.096
Gigabyte Outbound Data Transfer
per Month 10240 - 51200
0.072
Gigabyte Outbound Data Transfer
per Month 51200 - 153600
0.056
Gigabyte Outbound Data Transfer
per Month 153600 - 512000
0.04 Gigabyte Outbound Data Transfer
per Month 512000 - 999999999
0.04 B88295 - Oracle Database Backup Service-GET and all other Requests
10000 Requests Per Month 0.0032
B88296 - Oracle Database Backup Service-PUT, COPY, POST or LIST Requests
1000 Requests Per Month 0.004
B88297 - Oracle Database Backup Service-Storage Capacity Gigabyte Storage Capacity per
Month 0 - 1024
0.0211
Gigabyte Storage Capacity per
Month 1024 - 51200
0.0208
Gigabyte Storage Capacity per
Month 51200 - 512000
0.0204
Gigabyte Storage Capacity per
Month 512000 - 1024000
0.0201
Gigabyte Storage Capacity per
Month 1024000 - 5120000
0.0197
Gigabyte Storage Capacity per
Month 5120000 - 999999999
0.0194
B88402 - Oracle Database Cloud Service-Enterprise Edition Extreme Performance RAC-BYOL
OCPU Per Hour 0.1935
B88404 - Oracle Database Cloud Service-All Editions-BYOL OCPU Per Hour 0.1935
B88592 - Exadata Database OCPU-Dedicated Infrastructure OCPU Per Hour 1.3441
B88593 - Oracle Cloud Infrastructure-Database Exadata
Quarter Rack-X6
Hosted Environment Per Hour 51.0753
B88594 - Oracle Cloud Infrastructure-Database Exadata Half Rack-X6
Hosted Environment Per Hour 102.1506
B88595 - Oracle Cloud Infrastructure-Database Exadata Full Rack-X6
Hosted Environment Per Hour 204.3011
CPQ-3523778 - 1 Issued by Oracle America, Inc. 22-JUL-2024
Usage Item Description Metric Overage Net Unit Price
B88847 - Exadata Database OCPU-Dedicated InfrastructureBYOL OCPU Per Hour 0.3226
B88854 - Oracle Cloud Infrastructure-Database Exadata Full Rack-X6-BYOL
Hosted Environment Per Hour 135.914
B88855 - Oracle Cloud Infrastructure-Database Exadata Half Rack-X6-BYOL
Hosted Environment Per Hour 67.957
B88856 - Oracle Cloud Infrastructure-Database Exadata
Quarter Rack-X6-BYOL
Hosted Environment Per Hour 33.9785
B89039 - Oracle Autonomous Data Warehouse-BYOL
OCPU Per Hour 0.3226
B89040 - Oracle Autonomous Data Warehouse
OCPU Per Hour 1.3441
B89041 - Oracle Autonomous Data Warehouse-Exadata
Storage
Terabyte Storage Capacity Per
Month
118.4
B89737 - Oracle NoSQL Database Cloud Service-Write
Write Unit Per Month 0.1254
B89738 - Oracle NoSQL Database Cloud Service-Read
Read Unit Per Month 0.0064
B89739 - Oracle NoSQL Database Cloud Service-Storage
Gigabyte Storage Capacity Per
Month
0.066
B89980 - Oracle Database Exadata Cloud at CustomerDatabase OCPU OCPU Per Hour 1.3441
B89981 - Oracle Database Exadata Cloud at CustomerDatabase OCPU-BYOL OCPU Per Hour 0.3226
B89999 - Oracle Cloud Infrastructure-Database Exadata
Infrastructure-Quarter Rack-X7
Hosted Environment Per Hour 21.5054
B90000 - Oracle Cloud Infrastructure-Database Exadata
Infrastructure-Half Rack-X7
Hosted Environment Per Hour 43.0107
B90001 - Oracle Cloud Infrastructure-Database Exadata
Infrastructure-Full Rack-X7
Hosted Environment Per Hour 86.0215
B90230 - Oracle Database Backup Cloud-Object Storage
Gigabyte Storage Capacity Per
Month
0.0051
B90231 - Oracle Database Backup Cloud-Archive Storage
Gigabyte Storage Capacity Per
Month
0.0005
B90453 - Oracle Autonomous Transaction Processing
OCPU Per Hour 1.3441
CPQ-3523778 - 1 Issued by Oracle America, Inc. 22-JUL-2024
Usage Item Description Metric Overage Net Unit Price
B90454 - Oracle Autonomous Transaction Processing-BYOL
OCPU Per Hour 0.3226
B90455 - Oracle Autonomous Transaction Processing-Exadata Storage
Terabyte Storage Capacity Per
Month
118.4
B90569 - Oracle Base Database Service-Standard
OCPU Per Hour 0.215
B90570 - Oracle Base Database Service-Enterprise
OCPU Per Hour 0.4301
B90571 - Oracle Base Database Service-High Performance
OCPU Per Hour 0.8871
B90572 - Oracle Base Database Service-Extreme Performance OCPU Per Hour 1.3441
B90573 - Oracle Base Database Service-BYOL
OCPU Per Hour 0.1935
B90777 - Oracle Cloud Infrastructure-Database Exadata
Infrastructure-Base System
Hosted Environment Per Hour 10.7527
B91121 - Oracle Cloud SQL-Compute Capacity
OCPU Per Hour 0.1075
B91128 - Oracle Big Data Service-Compute-Standard
OCPU Per Hour 0.1344
B91129 - Oracle Big Data Service-Compute-Dense I/O
OCPU Per Hour 0.214
B91130 - Oracle Big Data Service-Compute-HPC
OCPU Per Hour 0.1536
B91363 - Gen 2 Exadata Cloud at Customer-Database OCPU
OCPU Per Hour 1.3441
B91364 - Gen 2 Exadata Cloud at Customer-Database OCPUBYOL OCPU Per Hour 0.3226
B91391 - Oracle Autonomous Data Warehouse-Free
OCPU Per Hour 0.00
B91392 - Oracle Autonomous Data Warehouse-Exadata
Storage-Free
Terabyte Storage Capacity Per
Month
0.00 B91393 - Oracle Autonomous Transaction Processing-Free OCPU Per Hour 0.00
B91394 - Oracle Autonomous Transaction Processing-Exadata Storage-Free
Terabyte Storage Capacity Per
Month
0.00 B91535 - Oracle Cloud Infrastructure-Database Exadata Infrastructure-Quarter Rack-X8
Hosted Environment Per Hour 14.5162
B91536 - Oracle Cloud Infrastructure-Database Exadata
Infrastructure-Half Rack-X8
CPQ-3523778 - 1 Issued by Oracle America, Inc. 22-JUL-2024
Usage Item Description Metric Overage Net Unit Price
Hosted Environment Per Hour 29.0323
B91537 - Oracle Cloud Infrastructure-Database Exadata
Infrastructure-Full Rack-X8
Hosted Environment Per Hour 58.0645
B91631 - Oracle Cloud Infrastructure-Data Safe for Database Cloud Service-Audit Record Collection Over 1 Million Records 10,000 Audit Records Per Target
Per Month
0.1 B91632 - Oracle Cloud Infrastructure-Data Safe for Database Cloud Service
Each 0.00
B92023 - MySQL HeatWave-Standard
Node Per Hour 0.3536
B92024 - MySQL Database for HeatWave-Standard
Node Per Hour 0.3536
B92181 - Oracle Autonomous Transaction ProcessingDedicated OCPU Per Hour 1.3441
B92182 - Oracle Autonomous Data Warehouse-Dedicated
OCPU Per Hour 1.3441
B92183 - Oracle Autonomous Transaction ProcessingDedicated-BYOL OCPU Per Hour 0.3226
B92184 - Oracle Autonomous Data Warehouse-DedicatedBYOL OCPU Per Hour 0.3226
B92212 - Oracle Autonomous JSON Database
OCPU Per Hour 0.3226
B92380 - Oracle Cloud Infrastructure-Database Exadata
Infrastructure-Quarter Rack-X8M
Hosted Environment Per Hour 14.5162
B92381 - Oracle Cloud Infrastructure-Database Exadata
Infrastructure-Database Server-X8M
Hosted Environment Per Hour 2.9032
B92382 - Oracle Cloud Infrastructure-Database Exadata
Infrastructure-Storage Server-X8M
Hosted Environment Per Hour 2.9032
B92418 - Exadata Cloud at Customer-Autonomous Transaction Processing
Database OCPU Per Hour 1.3441
B92419 - Exadata Cloud at Customer-Autonomous Data
Warehouse
Database OCPU Per Hour 1.3441
B92420 - Exadata Cloud at Customer-Autonomous Transaction Processing-Database OCPU-BYOL
OCPU Per Hour 0.3226
B92421 - Exadata Cloud at Customer-Autonomous Data
Warehouse-Database OCPU-BYOL
OCPU Per Hour 0.3226
B92425 - MySQL Database-Standard-E2
CPQ-3523778 - 1 Issued by Oracle America, Inc. 22-JUL-2024
Usage Item Description Metric Overage Net Unit Price
OCPU Per Hour 0.0467
B92426 - MySQL Database-Storage
Gigabyte Storage Capacity per
Month
0.04 B92483 - MySQL Database-Backup Storage
Gigabyte Storage Capacity per
Month
0.04 B92627 - Oracle NoSQL Database Cloud-Write-Free
Write Unit Per Month 0.00
B92628 - Oracle NoSQL Database Cloud-Read-Free
Read Unit Per Month 0.00
B92629 - Oracle NoSQL Database Cloud-Storage-Free
Gigabyte Storage Capacity Per
Month
0.00 B92733 - Oracle Cloud Infrastructure-Data Safe for OnPremises Databases & Databases on Compute Target Database Per Month 0 -
100
200.00
Target Database Per Month 100 -
300
150.00
Target Database Per Month 300 -
500
100.00
Target Database Per Month 500 -
999999999999999
50.00 B92734 - Oracle Cloud Infrastructure-Data Safe for OnPremises Databases & Databases on Compute 10,000 Audit Records Per Target
Per Month
0.1 B92759 - MySQL Analytics-Bare Metal Standard-E2
Node Per Hour 0.5018
B92807 - MySQL Database-Bare Metal Standard-E2
Node Per Hour 0.5018
B92911 - Oracle APEX Application Development
OCPU Per Hour 0.3226
B92962 - MySQL Database-Standard-E3
OCPU Per Hour 0.038
B92963 - MySQL Database-Standard-E3-Memory
Gigabyte Per Hour 0.0022
B93199 - Oracle Cloud Infrastructure Database Migration Migration Hour 0.2
B93320 - Oracle APEX Application Development-Free
OCPU Per Hour 0.00
B93380 - Exadata Cloud Infrastructure-Quarter Rack-X9M
Hosted Environment Per Hour 14.5162
B93381 - Exadata Cloud Infrastructure-Database Server-X9M Hosted Environment Per Hour 2.9032
B93382 - Exadata Cloud Infrastructure-Storage Server-X9M Hosted Environment Per Hour 2.9032
B93546 - MySQL Database for HeatWave-Bare Metal Standard CPQ-3523778 - 1 Issued by Oracle America, Inc. 22-JUL-2024
Usage Item Description Metric Overage Net Unit Price
Node Per Hour 2.2144
B93709 - Oracle Cloud Infrastructure Search with OpenSearch HA
Node Per Hour 0.25
B93710 - Oracle NoSQL Database Cloud-Write-Auto
Write Unit Per Month 3.135
B93711 - Oracle NoSQL Database Cloud-Read-Auto
Read Unit Per Month 0.16
B93712 - Oracle NoSQL Database Cloud-Hosted Environment Hosted Environment Per Month 28,796.00
B95240 - Oracle Database Autonomous Recovery Service
Virtualized GB Per Month 0.0306
B95241 - Oracle Database Zero Data Loss Autonomous
Recovery Service
Virtualized GB Per Month 0.04
B95264 - Oracle Cloud Infrastructure Application Performance Monitoring Service-Stack Monitoring
Standard Edition 0.075
B95427 - MySQL Database-AWS-Storage
Gigabyte Storage Capacity Per
Month
0.132
B95428 - MySQL Database-AWS-Backup Storage
Gigabyte Storage Capacity Per
Month
0.0476
B95435 - MySQL Database-Standard-AMD E4-Compute
OCPU Per Hour 0.038
B95436 - MySQL Database-Standard-AMD E4-Memory
Gigabyte Per Hour 0.0022
B95437 - MySQL Database-Standard-Intel X7-Compute
OCPU Per Hour 0.062
B95438 - MySQL Database-Standard-Intel X7-Memory
Gigabyte Per Hour 0.0022
B95439 - MySQL Database-Standard-Intel X9-Compute
OCPU Per Hour 0.062
B95440 - MySQL Database-Standard-Intel X9-Memory
Gigabyte Per Hour 0.0022
B95441 - MySQL Database-Optimized-Intel X9-Compute
OCPU Per Hour 0.082
B95442 - MySQL Database-Optimized-Intel X9-Memory
Gigabyte Per Hour 0.0022
B95485 - Oracle Cloud Infrastructure Full Stack Disaster Recovery Service
OCPU Per Hour 0.0128
B95701 - Oracle Autonomous Data Warehouse-ECPU
ECPU Per Hour 0.336
B95702 - Oracle Autonomous Transaction Processing-ECPU
ECPU Per Hour 0.336
B95703 - Oracle Autonomous Data Warehouse-ECPU-BYOL
ECPU Per Hour 0.0807
CPQ-3523778 - 1 Issued by Oracle America, Inc. 22-JUL-2024
Usage Item Description Metric Overage Net Unit Price
B95704 - Oracle Autonomous Transaction Processing-ECPUBYOL ECPU Per Hour 0.0807
B95706 - Oracle Autonomous Database Storage for Transaction Processing
Gigabyte Storage Capacity Per
Month
0.1156
B95708 - Oracle Autonomous Data Warehouse-Exadata
Cloud@Customer-ECPU
ECPU Per Hour 0.336
B95709 - Oracle Autonomous Transaction Processing-Exadata Cloud@Customer-ECPU
ECPU Per Hour 0.336
B95710 - Oracle Autonomous Data Warehouse-Exadata
Cloud@Customer-ECPU-BYOL
ECPU Per Hour 0.0807
B95711 - Oracle Autonomous Transaction Processing-Exadata Cloud@Customer-ECPU-BYOL
ECPU Per Hour 0.0807
B95712 - Oracle Autonomous Data Warehouse-DedicatedECPU ECPU Per Hour 0.336
B95713 - Oracle Autonomous Transaction ProcessingDedicated-ECPU ECPU Per Hour 0.336
B95714 - Oracle Autonomous Data Warehouse-DedicatedECPU-BYOL ECPU Per Hour 0.0807
B95715 - Oracle Autonomous Transaction ProcessingDedicated-ECPU-BYOL ECPU Per Hour 0.0807
B95754 - Oracle Autonomous Database Storage
Gigabyte Storage Capacity Per
Month
0.0244
B96157 - MySQL HeatWave-AWS
HeatWave Capacity Per Hour 0.049
B96158 - MySQL Database-AWS-ECPU
ECPU Per Hour 0.049
B96159 - MySQL Database-AWS-Outbound Data Transfer-Inter AWS Region
Gigabyte of Data Transferred 0.0504
B96160 - MySQL Database-AWS-Outbound Data Transfer-To
Internet
Gigabyte of Data Transferred 0.0911
B96625 - Oracle Cloud Infrastructure-HeatWave-Storage
Gigabyte Storage Capacity Per
Month
0.02 B96626 - Oracle Cloud Infrastructure-HeatWave
HeatWave Capacity Per Hour 0.011
CPQ-3523778 - 1 Issued by Oracle America, Inc. 22-JUL-2024
Usage Item Description Metric Overage Net Unit Price
B97191 - Oracle NoSQL Database Cloud-Regional Replicated Write
Write Unit Per Month 0.36
B97197 - Oracle Base Database Service on Arm-Enterprise OCPU Per Hour 0.2151
B97198 - Oracle Base Database Service on Arm-High
Performance
OCPU Per Hour 0.4436
B97199 - Oracle Base Database Service on Arm-Extreme
Performance
OCPU Per Hour 0.6721
B97200 - Oracle Base Database Service on Arm-BYOL
OCPU Per Hour 0.0968
B98217 - Oracle Cloud Infrastructure Cache with Redis-Low Memory (up to 10 GB per node)
Redis Memory Gigabyte Per Hour 0.0194
B98277 - Oracle Autonomous Transaction Processing-Exadata Cloud@Customer-Developer
Instance Per Hour 0.00
B98278 - Oracle Autonomous Data Warehouse-Exadata
Cloud@Customer-Developer
Instance Per Hour 0.00
B98279 - Oracle Autonomous Transaction ProcessingDedicated-Developer Instance Per Hour 0.00
B98280 - Oracle Autonomous Data Warehouse-DedicatedDeveloper Instance Per Hour 0.00
B99060 - Oracle Cloud Infrastructure Database with
PostgreSQL-X86
OCPU Per Hour 0.098
B99062 - Oracle Cloud Infrastructure Database Optimized Storage
Gigabyte Storage Capacity Per
Month
0.072
B99591 - Oracle Cloud Infrastructure Cache with Redis-High Memory (over 10 GB per node)
Redis Memory Gigabyte Per Hour 0.0136
B99593 - Oracle Globally Distributed Autonomous Transaction Processing-Dedicated
ECPU Per Hour 0.3864
B99594 - Oracle Globally Distributed Autonomous Transaction Processing-Dedicated-BYOL
ECPU Per Hour 0.0928
B99595 - Oracle Globally Distributed Autonomous Data
Warehouse-Dedicated
ECPU Per Hour 0.3864
B99596 - Oracle Globally Distributed Autonomous Data
Warehouse-Dedicated-BYOL
ECPU Per Hour 0.0928
CPQ-3523778 - 1 Issued by Oracle America, Inc. 22-JUL-2024
Usage Item Description Metric Overage Net Unit Price
B99708 - Oracle Autonomous JSON Database-ECPU
ECPU Per Hour 0.0807
B99709 - Oracle APEX Application Development-ECPU
ECPU Per Hour 0.0807
Not Discount Eligible
B108077 - Oracle Cloud Infrastructure Generative AI-Large Cohere
10,000 Transactions 0.0219
B108078 - Oracle Cloud Infrastructure Generative AI-Small Cohere
10,000 Transactions 0.004
B108079 - Oracle Cloud Infrastructure Generative AI-Embed Cohere
10,000 Transactions 0.001
B108082 - Oracle Cloud Infrastructure Generative AI-Large Cohere-Dedicated
AI Unit Per Hour 24.00
B108083 - Oracle Cloud Infrastructure Generative AI-Small Cohere-Dedicated
AI Unit Per Hour 6.5
B108084 - Oracle Cloud Infrastructure Generative AI-Embed Cohere-Dedicated
AI Unit Per Hour 10.9
B108806 - Oracle Cloud VMware Solution-BM.GPU.A10.64-
Monthly Commit
Node Per Hour 16.00
B108807 - Oracle Cloud VMware Solution-BM.GPU.A10.64-1
Year Commit
Node Per Hour 13.00
B108808 - Oracle Cloud VMware Solution-BM.GPU.A10.64-3
Year Commit
Node Per Hour 11.00
B108809 - Oracle Cloud VMware Solution-BaseBM.Standard.E5.48-Hourly Commit Node Per Hour 16.6617
B108810 - Oracle Cloud VMware Solution-BaseBM.Standard.E5.48-1 Year Commit Node Per Hour 13.1604
B108811 - Oracle Cloud VMware Solution-BaseBM.Standard.E5.48-3 Year Commit Node Per Hour 10.6119
B88318 - Oracle Cloud Infrastructure-Compute-Windows OS OCPU Per Hour 0.092
B92386 - Oracle Cloud VMware Solution
OCPU Per Hour 0.2031
B92615 - Roving Edge Device-Compute Optimized-Ruggedized Resource Possession Per Day 160.00
B92686 - Oracle Analytics for Fusion Applications-Free
Hosted Named User 0.00
CPQ-3523778 - 1 Issued by Oracle America, Inc. 22-JUL-2024
Usage Item Description Metric Overage Net Unit Price
B93039 - Roving Edge Device-Compute Optimized-Standard
Resource Possession Per Day 160.00
B93040 - Roving Edge Device-Compute OptimizedUnreturnable/Loss Fee Each 45,000.00
B93288 - Oracle Cloud VMware Solution-BM.DenseIO2.52-
Hourly Commit
OCPU Per Hour 0.2437
B93289 - Oracle Cloud VMware Solution-BM.DenseIO2.52-1
Year Commit
OCPU Per Hour 0.1625
B93290 - Oracle Cloud VMware Solution-BM.DenseIO2.52-3
Year Commit
OCPU Per Hour 0.132
B93307 - Autonomous JSON Database-Free
OCPU Per Hour 0.00
B93421 - Oracle Cloud VMware Solution-HCX EnterpriseMonthly OCPU Per Hour 0.0126
B95178 - Oracle Cloud VMware Solution-BM.DenseIO.E4.64- Hourly Commit
OCPU Per Hour 0.2437
B95179 - Oracle Cloud VMware Solution-BM.DenseIO.E4.64- Monthly Commit
OCPU Per Hour 0.2031
B95180 - Oracle Cloud VMware Solution-BM.DenseIO.E4.64-1 year Commit
OCPU Per Hour 0.1625
B95181 - Oracle Cloud VMware Solution-BM.DenseIO.E4.64-3 year Commit
OCPU Per Hour 0.132
B95228 - Roving Edge Ultra
Resource Possession Per Day 45.00
B95229 - Roving Edge Ultra Non-Return or Loss Fee
Each 35,000.00
B95403 - Oracle Cloud Infrastructure-Network Firewall Instance Instance Per Hour 2.75
B95404 - Oracle Cloud Infrastructure-Network Firewall Data Processing
Gigabyte of Data Processed 0 -
10240
0.00 Gigabyte of Data Processed
10240 - 999999999999999
0.01 B95411 - Oracle Cloud VMware Solution-BM.DenseIO.E4.32- Hourly Commit
OCPU Per Hour 0.3047
B95412 - Oracle Cloud VMware Solution-BM.DenseIO.E4.32- Monthly Commit
OCPU Per Hour 0.2539
CPQ-3523778 - 1 Issued by Oracle America, Inc. 22-JUL-2024
Usage Item Description Metric Overage Net Unit Price
B95413 - Oracle Cloud VMware Solution-BM.DenseIO.E4.32-1 year Commit
OCPU Per Hour 0.2031
B95414 - Oracle Cloud VMware Solution-BM.DenseIO.E4.32-3 year Commit
OCPU Per Hour 0.165
B95415 - Oracle Cloud VMware Solution-BM.DenseIO.E4.128- Hourly Commit
OCPU Per Hour 0.195
B95416 - Oracle Cloud VMware Solution-BM.DenseIO.E4.128- Monthly Commit
OCPU Per Hour 0.1625
B95417 - Oracle Cloud VMware Solution-BM.DenseIO.E4.128-1 year Commit
OCPU Per Hour 0.13
B95418 - Oracle Cloud VMware Solution-BM.DenseIO.E4.128-3 year Commit
OCPU Per Hour 0.1056
B97102 - Oracle Cloud VMware Solution-BaseBM.Standard2.12-Hourly Commit Node Per Hour 4.714
B97103 - Oracle Cloud VMware Solution-BaseBM.Standard2.12-1 Year Commit Node Per Hour 3.7144
B97104 - Oracle Cloud VMware Solution-BaseBM.Standard2.12-3 Year Commit Node Per Hour 2.953
B97105 - Oracle Cloud VMware Solution-BaseBM.Standard3.16-Hourly Commit Node Per Hour 5.554
B97106 - Oracle Cloud VMware Solution-BaseBM.Standard3.16-1 Year Commit Node Per Hour 4.2943
B97107 - Oracle Cloud VMware Solution-BaseBM.Standard3.16-3 Year Commit Node Per Hour 3.3522
B97108 - Oracle Cloud VMware Solution-BaseBM.Standard.E4.32-Hourly Commit Node Per Hour 9.2565
B97109 - Oracle Cloud VMware Solution-BaseBM.Standard.E4.32-1 Year Commit Node Per Hour 6.9223
B97110 - Oracle Cloud VMware Solution-BaseBM.Standard.E4.32-3 Year Commit Node Per Hour 5.2233
B97111 - Oracle Cloud VMware Solution-Expansion-Hourly
Commit
OCPU Per Hour 0.1605
B97112 - Oracle Cloud VMware Solution-Expansion-1 Year
Commit
CPQ-3523778 - 1 Issued by Oracle America, Inc. 22-JUL-2024
Usage Item Description Metric Overage Net Unit Price
OCPU Per Hour 0.1092
B97113 - Oracle Cloud VMware Solution-Expansion-3 Year
Commit
OCPU Per Hour 0.0739
CPQ-3523778 - 1 Issued by Oracle America, Inc. 22-JUL-2024
Oracle Software Subscription Fees
Exhibit A – Software Pricing Details
SaaS Subscription Details
Part
Number Product Metric Quantity Term in Months
Monthly
Unit Cost
Annual
Fees
Total
Term Total Fees
B85800
Oracle Fusion Human Capital Management Base
Cloud Service Hosted Employee
1000 12 2.27 $27,278 60 $136,390
B87388
Oracle Fusion Human Resource Help Desk Cloud
Service Hosted Employee
1000 12 0.61 $7,274 60 $36,370
B89482
Oracle Fusion Workforce Health and Safety
Incidents Cloud Service Hosted Employee
1000 12 0.30 $3,637 60 $18,185
B95499
Oracle Fusion HCM Communicate Cloud Service Hosted Employee 1000 12 0.30 $3,637 60 $18,185
B94925
Oracle Fusion Talent Management Cloud Service Hosted Named User 1000 12 1.06 $12,730 60 $63,650
B95573
Oracle Fusion Touchpoints Cloud Service Hosted Named
User 1000 12 0.30 $3,637 60 $18,185
B94933
Oracle Fusion Workforce Compensation Cloud
Service Hosted Employee
1000 12 0.61 $7,274 60 $36,370
B86334
Oracle Fusion Payroll Cloud Service for United
States Hosted Employee
1000 12 1.06 $12,730 60 $63,650
B75365
Oracle Fusion Time and Labor Cloud Service Hosted Named User 1000 12 0.45 $5,456 60 $27,280
B84490
Oracle Additional Test Environment for Oracle
Fusion Cloud Service Each
1 12 947.17 $11,366 60 $56,830
B84490
Oracle Additional Test Environment for Oracle
Fusion Cloud Service Each
1 12 947.17 $11,366 60 $56,830
B87365
Oracle HIPAA Advanced Security for Fusion SaaS
in the Oracle Public Cloud Each
1 12 1262.92 $15,155 60 $75,775
B85242
Oracle Fusion Learning Cloud Service Hosted Named
User 1000 12 0.76 $9,093 60 $45,465
Packet Page. 1822
Oracle Software Subscription Fees
Part
Number Product Metric Quantity Term in Months
Monthly
Unit Cost
Annual
Fees
Total
Term Total Fees
B95657
Oracle Fusion Learning Connect Cloud Service Hosted Named User 1000 12 0.30 $3,637 60 $18,185
B91074
Oracle Enterprise Performance Management
Enterprise Cloud Service
Hosted Named
User 45 12 75.77 $40,918 60 $204,590
B91077
Oracle Additional Application for Oracle
Enterprise Performance Management Enterprise
Cloud Service
Hosted
Environment
4 12 0.00 $0 60 $0
B91939
Oracle Digital Assistant Platform for SaaS Hosted Employee 1000 12 0.45 $5,456 60 $27,280
B91084
Oracle Fusion Enterprise Resource Planning Cloud
Service Hosted Employee
1000 12 6.25 $75,015 60 $375,075
B91086
Oracle Fusion Procurement Cloud Service Hosted Employee 1000 12 5.30 $63,649 60 $318,245
B86841
Oracle Fusion Document Recognition Cloud
Service Hosted Employee
1000 12 0.09 $1,091 60 $5,455
Total Fees $320,399 $1,601,995
IaaS Subscription Details
Part
Number Product Data Center Region Quantity Annual Term
Funded
Allocation
Value
B88206 Oracle PaaS and IaaS Universal Credits Customer Selected21576 12 $21,576 Packet Page. 1823
Based on Cloud_Business Associate Agreement_v122316 Oracle Confidential Page 1 of 6
ORACLE RESELLER- BUSINESS ASSOCIATE AGREEMENT
C O N T R A C T I N F O R M A T I O N
This Business Associate Agreement (“BAA”) amends the Ordering Document to which it is attached, and all amendments and addenda thereto (the “Exhibit”) between City and City of San Bernardino (“You”) and Applications Software Technology Llc. as an authorized reseller of Oracle America, Inc. (“Oracle”). This BAA only applies to the Oracle products and /or services identified as being HIPAA Assessed in the Ordering Document.
WHEREAS you represent that the Health Insurance Portability and Accountability Act of 1996 as amended by the Health Information Technology for Economic and Clinical Health Act of 2009 and all implementing regulations of the U.S. Department of Health & Human Services (collectively “HIPAA”), govern your use of Electronic Protected Health Information (“ePHI”) (as defined by 45 C.F.R. § 160.103);
WHEREAS Oracle recognizes your obligations under HIPAA require service providers that create, receive, maintain or transmit ePHI to agree to certain contractual terms and conditions designed to maintain the privacy and security of such ePHI; THEREFORE, the parties agree to the following:
I. In the event that the Exhibit requires Oracle to access, receive, maintain or transmit your ePHI, Oracle will take the following measures designed to protect the privacy and security of such ePHI, unless otherwise required by law:
A. Not use or further disclose such ePHI other than as permitted or required by the Exhibit.
B. Use appropriate administrative, physical, and technical safeguards designed to protect the confidentiality, integrity, and availability of such ePHI and comply, where applicable to Oracle in its performance of the services, with 45 C.F.R. § 164 Subpart C, to prevent the use or disclosure of such ePHI other than as provided under the Exhibit; additional information concerning such measures may be specified in the Exhibit.
C. Report to you any use or disclosure of such ePHI in violation of the terms of the Exhibit of which Oracle becomes aware, including within 72 hours confirmed Breaches of Unsecured Protected Health Information as required by 45 C.F.R. § 164.410 (as those terms are defined by 45 C.F.R. § 164.402) and will report to you Security Incidents (as defined by 45 CFR 164.304). Such report shall include the identification of each individual, to the extent known by Oracle, whose unsecured protected health information has been, or is reasonably believed by Oracle to have been, accessed, acquired or disclosed during such breach. To the extent known, Oracle shall also provide you with:
a brief description of what happened, including the date of the breach and the date of the discovery of the breach; a description of the types of unsecured ePHI that were involved in the breach; and a brief description of what Oracle is doing to investigate the breach, remediate its cause, and protect against any further breaches of the same or similar nature.
D. In accordance with 45 C.F.R. § 164.502(e)(1)(ii) and § 164.308(b)(2), ensure that any subcontractors that access, receive, maintain, or transmit such ePHI on Oracle’s behalf in its provision of services under the Exhibit agree in all material respects to the same restrictions and conditions that apply to Oracle with respect to such ePHI under the Exhibit.
E. Make available to you any requests received by Oracle from individuals to inspect or obtain a copy of their ePHI in accordance with 45 C.F.R. § 164.524.
Packet Page. 1824
Based on Cloud_Business Associate Agreement_v122316 Oracle Confidential Page 2 of 6 F. Make available to you any requests received by Oracle from individuals to have their ePHI amended in accordance with 45 C.F.R. § 164.526.
G. Make available to you any requests received by Oracle from individuals for an accounting of disclosures of ePHI in accordance with 45 C.F.R. § 164.528.
H. Make its internal practices, books and records relating to the use and disclosure of such ePHI available to the Secretary of the United States Department of Health and Human Services or his or her designee for purposes of determining your compliance with 45 C.F.R. § 164 Subpart E .
I. At the end of the services under the Exhibit or upon termination thereof in accordance with its terms, if feasible and at your request, Oracle shall return or destroy any such ePHI then in its possession in any form, and retain no copies of such ePHI. If such return or destruction is not feasible, Oracle will extend the protections specified in the ordering document to such ePHI and limit further uses and disclosures to those purposes that make its return or destruction of such ePHI infeasible.
II. Additional Terms
A. You may terminate this Exhibit if Oracle is in material breach of the obligations stated in this Business Associate Agreement and fails to correct the breach within 30 days of written specification of the breach.
B. Prior to the effective date of Your termination of this BAA, You are responsible for ensuring that Your Content in the Cloud Services contains no ePHI
C. If Oracle knows of a pattern of activity or practice of a subcontractor that constitutes a material breach of the subcontractor’s obligation of the contract executed with Oracle in accordance with Section I.D above, Oracle will promptly require the subcontractor to cure the breach or end the violation, as applicable, and if such steps are unsuccessful, terminate the contract, if feasible.
D. The terms and conditions of this Business Associate Agreement shall survive termination of the Exhibit.
E. When using or disclosing such ePHI or when requesting such ePHI from you, the parties shall make reasonable efforts to limit ePHI to the minimum necessary to accomplish the intended purposes of the use, disclosure or request.
F. You agree to follow any ePHI handling procedures that are specified in the Exhibit.
G. IN NO EVENT WILL EITHER YOU OR ORACLE AND ITS AFFILIATES BE LIABLE FOR
ANY INDIRECT, CONSEQUENTIAL, INCIDENTAL, SPECIAL, PUNITIVE, OR
EXEMPLARY DAMAGES, OR ANY LOSS OF REVENUE, PROFITS, SALES, DATA, DATA USE GOODWILL OR REPUTATION. IN NO EVENT SHALL THE AGGREGATE
LIABILITY OF ORACLE AND ITS AFFILIATES ARISING OUT OF OR RELATED TO
THIS BUSINESS ASSOCIATE AGREEMENT, WHETHER IN CONTRACT, TORT, OR
OTHERWISE, EXCEED THE TOTAL AMOUNTS ACTUALLY PAID UNDER YOUR
ORDER FOR THE SERVICES GIVING RISE TO THE LIABILITY DURING THE TWELVE (12) MONTHS IMMEDIATELY PRECEDING THE EVENT GIVING RISE TO SUCH LIABILITY.
Packet Page. 1825
Based on Cloud_Business Associate Agreement_v122316 Oracle Confidential Page 3 of 6 Subject to the modifications herein, the Exhibit shall remain in full force and effect. {{*efdate_es_signer2}}
The effective date of this Business Associate Agreement is _______________, 2024. {to be completed by Oracle}.
City of San Bernardino Applications Software Technology Llc, authorized reseller of Oracle, America, Inc.
{{*_es_signer1_signature }} {{*_es_signer2_signature }} Authorized Signature: _________________________ Authorized Signature: _______________________ {{*_es_signer1_fullname }} {{*_es_signer2_fullname }}
Name: _______________________________________ Name: _____________________________________ {*_es_signer1_title }} {{*_es_signer2_title }}
Title: ________________________________________ Title: ______________________________________ {{*_es_signer1_date}} {{*_es_signer2_date}}
Signature Date: _______________________________ Signature Date: _____________________________ Packet Page. 1826
Teller Software as a Service Agreement Template
This is the Teller Software as a Service Agreement (“Agreement”) dated as of November 20, 2024, (the “Effective Date”) between Can/Am Technologies Inc. (“CanAm”) a company incorporated under the laws of Colorado, having its principal place of business at 1819 Denver West Dr, Suite 225, Lakewood, CO 80401 and City of San Bernardino, CA, having its principal place of business at Vanir Tower, 290 N. D. Street, Carlsbad, CA 92041 (hereinafter referred as "Client" or “City”).
RECITALS
1. Pursuant to the terms of this Agreement, CanAm will provide a web-based system to manage point of sale processes for Client.
2. This system assists Client in managing revenue intake from cashiering to balancing, providing reconciliation workflows, and is intended to provide Client with reporting and visibility into financial transactions, increasing the accountability and transparency of financial management for Client.
AGREEMENT
Client and CanAm agree as follows:
1. DEFINITIONS
1.1. Agreement – this document and all schedules attached or incorporated by reference, and any subsequent addendums or amendments made in accordance with the provisions hereof.
1.2. Annual Software as a Service Fee – the annual fee payable by Client (either to CanAm directly or to an authorized CanAm reseller, as applicable) for the use of Teller software, including Teller support services, including Updates, and SaaS Services provided by CanAm under this Agreement.
1.3. Concurrent User – means the users who are logged on at the same time and sharing a finite number of licenses.
1.4. Confidential Information – has the meaning set out in section 13 of this Agreement.
1.5. Configuration(s) – all work required to configure Teller to reflect the business rules, workflow, security and data requirements of Client. Configuration includes any custom reports, Interfaces, Plugins, and conversion scripts developed for Client.
1.6. Defect – a program error that will cause Teller to crash, or program algorithms or logic that produce incorrect results. Defects pertain to the intended operation of Teller as delivered to Client, but do not pertain to subsequent errors brought about by Infrastructure changes made by Client or any other ThirdParty. Defects do not include changing user preferences, report or screen aesthetics, presentation standards, or validity of converted data. With the exception of Interfaces that connect Teller to Third-Party software as set out in a statement of work, defects do not pertain to problems arising from Third-Party Software interfaced to Teller, or to problems arising from Teller Configurations not developed by CanAm.
1.7. Enhancement – any work requested by Client to alter existing Teller features, or to add any new features or functions to Teller software.
1.8. Force Majeure – circumstances beyond a Party’s reasonable control, including, without limitation, acts of God, acts of any governmental body, war, insurrection, sabotage, armed conflict, embargo, fire, flood, pandemics, unavailability or interruption in telecommunications or Third-Party services, virus attacks or hackers, failure of Third-Party Software, or inability to obtain power used in or equipment needed for provision of the Services.
1.9. SaaS Services – the services provided at the Third-Party hosting facility that are provided by CanAm to Client.
Packet Page. 1827
1.10. SaaS Services Site – the Third-Party hosting facility, at a U.S. location of CanAm’s choice, at which servers and related equipment are located.
1.11. SaaS Services SLA – the SaaS Service Level Agreement as provided in Exhibit B, and any subsequent addendums or amendments made in accordance with the provisions herein.
1.12. Client Infrastructure – any Client owned, leased, or licensed information technology hardware and/or software that is required by Client to perform business functions. This hardware and/or software can be providing the infrastructure needed to perform these functions or can also be used as a gateway to an external, non-client owned, infrastructure that provides the necessary business functions.
1.13. Deliverables – the services deliverables, documentation and defined milestone objectives set forth in a Statement of Work. For greater certainty, Deliverables shall not include any Third-Party Software or related documentation licensed directly to Client from a Third-Party, or any modifications or enhancements thereto or derivatives thereof.
1.14. Intellectual Property – property that derives from the work of the mind or intellect, specifically, an idea, invention, trade secret, process, program, data, formula, patent, copyright, or trademark or application, right, or registration. Intellectual Property includes: a) Teller pre-existing and newly developed software, or pre-existing and newly developed software Configurations (including stock report definitions) of CanAm; b) CanAm methodologies, processes, tools, and general knowledge of the matters under consideration; and c) any pre-existing or newly-acquired material provided to Client by CanAm under separate license. For clarity, Intellectual Property does not include Third Party APIs that are incorporated into Teller solely as an Interface to Client devices or Third Party Software.
1.15. Interface – a connection with Third Party Software or hardware used to deliver a unified end user experience.
1.16. Named User – an individual internal to Client who has access to the Teller Production Database. A Named User may access the Teller Production Database from any workstation on Client's network or intranet, or via the Internet.
1.17. On Call Support – support outside of CanAm’s support desk coverage (6 a.m. to 6 p.m. MT excluding CanAm published holidays).
1.18. Party or Parties – referring to CanAm or Client or both.
1.19. Plugin – additional functionality that extends core Teller features. Plugins may be added to Teller to permit additional functionality. Licensed Plugins are fully supported and may have their own release cycle separate from the Teller product release cycle.
1.20. Production Environment – the environment provided to Client for end user official business use.
1.21. Response Time – the target time for CanAm to respond to Critical, High, Medium and Low support requests (as defined in Section 6.3 of this Agreement).
1.22. Service(s) – the professional services to be provided pursuant to the Statement of Work (Exhibit C) or other written request.
1.23. Source Code – any and all program code or database definitions developed by CanAm programmers using a formal programming language and used by Teller software.
1.24. Specifications – means the requirements of the Deliverables as set forth in the Statement of Work (Exhibit C) or an amendment to this Agreement.
1.25. Statement of Work (SOW) – a document that describes the implementation services, software products, and other deliverables to be provided by CanAm (including its subcontractors if applicable) to Client under this Agreement. The Statement of Work is attached to this Agreement as Exhibit C.
1.26. Teller – an enterprise Point of Sale system that manages revenue intake from cashiering to balancing and reconciliation workflows in a single integrated database. Teller includes the reports and documentation that come with the Teller software.
1.27. Teller Annual Software as a Service Agreement – the document (i.e., this Agreement) which provides the terms and conditions under which the right to use Teller is provided to Client.
Packet Page. 1828
1.28. Test Environment – the environment set up by CanAm to provide testing and training capability for Client.
1.29. Third-Party – a person, corporation, organization or entity other than Client or CanAm.
1.30. Third-Party Software – any identifiable product embedded in and/or linked to Teller software, but to which the proprietary rights belong to an independent Third-Party.
1.31. Update(s) – updates to Teller issued by CanAm, generally every six (6) weeks, to general availability for Teller Clients.
2. SCOPE OF AGREEMENT
2.1. By this Agreement, CanAm agrees to provide Client with a single Annual Subscription Software License to use Teller in the Production Environment and a Test Environment. This License includes the number of Interfaces, Concurrent Users, and/or Named Users identified in Exhibit A and subsequent purchase orders.
2.2. Client and CanAm agree that CanAm may opt to permit the use of this Agreement by broader public sector entities to procure Teller Software as a Service according to the terms and conditions of this Agreement as follows:
"Broader Public Sector Entities" means other political subdivisions, municipalities, tax-supported agencies and non-profit entities in the United States, including all local and state government agencies, academic institutions, school boards, special districts and any other public entities as acknowledged by the Federal government and any other public entities as agreed by Client.
With respect to purchases by Broader Public Sector entities, Can/Am acknowledges that such Broader Public Sector Entities shall make purchases in their own name, make payments directly to CanAm, and shall be liable directly to CanAm, holding Client harmless.
3. TERM OF AGREEMENT
3.1. This Agreement will remain in effect for a period of one (1) year from signing and will be renewed annually thereafter upon payment by Client of the Annual Software as a Service Fee within thirty (30) days of receipt of the renewal invoice, unless otherwise revised or terminated under the provisions of this Agreement. Each annual renewal invoice will be issued thirty (30) days prior to renewal.
4. GRANT OF LICENSE
4.1. This Agreement provides Client with a non-exclusive and non-revocable license for Teller as identified in Exhibit A of this Agreement. This license will be effective for as long as this Agreement is in place and Client remains current with payment of their Annual Software as a Service Fee.
4.2. Client is licensed to use Teller in one (1) Test Environment and one (1) Production Environment at CanAm hosting site.
4.3. Client is licensed to use Teller only for processing transactions associated with Client’s business or public purposes. Any other use of Teller by Client is not permitted.
5. SOFTWARE AS A SERVICE FEE
5.1. Client agrees to pay an Annual Software as a Service Fee as specified in Exhibit A for license rights to Teller and for associated Teller support and Teller SaaS Services. The first year of the Teller Software as a Service Fee is billable upon execution of this agreement.
5.2. Client may subsequently add licenses and users throughout the Term for an additional price as set out in Exhibit A.
5.3. The Annual Software as a Service Fee does not include Configuration. CanAm may provide these Services for additional charge under a SOW or directly as professional services for the time and materials hourly rate established in Exhibit A.
Packet Page. 1829
5.4. Client agrees to remit payment annually within 30 calendar days of receipt of the invoice. CanAm reserves the right to charge Client one (1) per cent interest per month on the undisputed outstanding balance of any fees or expenses not paid with forty-five (45) days of date of invoice.
6. SUPPORT SERVICES
6.1. CanAm agrees, during the term of this Agreement, to provide Teller support services in a timely and professional manner. CanAm will provide unlimited technical support for Client’s Teller support personnel described in Section 7.2 of this Agreement. Support pertains to Teller and licensed Teller Plugins.
6.2. The Teller support web site will be available 24 x 7 for submitting Client support requests. The Teller support desk will be staffed from 6:00 a.m. to 6:00 p.m. Mountain Time, Monday to Friday, excluding CanAm published holidays. Extended hours of On Call Support outside of these working hours can be provided at additional rates per Section 8.
6.3. When Client submits a support request through the Teller support web site during normal CanAm hours for support, as specified in Section 6.2 of this Agreement, CanAm and Client will categorize, and CanAm will escalate as appropriate, the support request according to the following criteria. To ensure the listed Response Time, Client must call the provided Teller support toll-free number to report or confirm Critical and High priority issues.
Severity Definition Response
Time
Resolution Time
Critical Client site is down.
Major impact to operations of Client
site.
< 15
minutes
Immediate and ongoing effort, with
daily reporting to Client as
necessary until a work-around or
fix has been provided.
High Major impairment of at least one
important function at Client site.
Operations at Client site are
impacted.
All important Client functions are
working albeit with extra work.
< 1 hour Proceed with fix as high priority
work with reporting to Client as
necessary until a work-around or
fix has been provided.
Medium Client Operations not significantly
impacted.
One or more minor Client functions
not working.
Major usability irritations impacting
many staff at Client.
< 4 hours Proceed with fix as medium priority
work, according to schedule set by
CanAm.
Low Minor usability irritations.
Work-around exists.
< 2
business
days
Proceed with fix as low priority
work, according to schedule set by
CanAm
6.4. The Software as a Service Fee does NOT include technical support for Configurations and Third-Party Software not embedded within Teller, such as (but not limited to) operating system software and Microsoft Office products. Technical support for Teller related Third-Party hardware that may be used by Client, including scanners, printers, credit terminals, and other hardware peripherals is also not included.
6.5. CanAm will not begin charging Client for resolution of a non-Teller related problem until CanAm demonstrates to Client that the source of the problem is not related to a Teller Defect and Client has authorized work to resolve the issue. No time will be charged to Client for Teller Defects reported to CanAm.
Packet Page. 1830
6.6. Unless otherwise specified, Teller product warranty and support activities will be conducted at and deployed remotely. Travel and living expenses to provide on-site services deemed by CanAm at its sole discretion as required to repair a Teller Defect will not be charged to Client.
7. CLIENT OBLIGATIONS AND RESPONSIBILITIES
Unless otherwise stated in a separate agreement between the parties or in a Schedule of this Agreement, the following tasks will be the sole responsibility of Client:
7.1. Infrastructure Support –managing the local Internet Service Provider (ISP) providing Client its internet connection and/or its wireless service; managing its own networks; managing all desktop and mobile hardware for Client staff and implementing its own security policies and procedures.
7.2. First-Line Teller Support – Client is responsible for providing first-line Teller support to Client staff. Firstline Teller Client support is responsible for researching issues and assessing if they are the result of a Teller Defect. Client will identify a limited number of Client staff entitled to submit Teller support requests.
7.3. Future Updates – Client acknowledges that future Updates of Teller software may require different or additional Client equipment and/or software to function properly. CanAm will provide Client with sufficient notification of such requirements. Client will be responsible to fund, acquire, install, and maintain such different or additional equipment and/or software.
8. PROFESSIONAL SERVICES
8.1. At the request of Client, CanAm may provide any or all of the following professional services:
development of custom Configurations, report development, training, extended warranty, first line Teller support, On Call Support, and any other consulting activity. CanAm professional services may be purchased for an all-inclusive fixed-cost, or on a time-and-materials basis. All time and materials services will be approved in advance by the Client in a mutually agreed Statement of Work or other written request, and invoiced monthly based on the rates specified in Exhibit A. For fixed-cost services, all terms, conditions and costs will be specified in a mutually agreed Statement of Work.
8.2. CanAm will perform the Services and provide the deliverables that are described in each Statement of Work in accordance with the terms of the SOW and this Agreement, for the price and in accordance with the delivery dates and Specifications described in the Statement of Work.
9. PAYMENT FOR SERVICES
9.1. Client will pay (either to CanAm directly or to an authorized CanAm reseller, as applicable) the fees set out in the Statement of Work, plus all applicable taxes, upon acceptance of deliverables specified in the Statement of Work, subject to receipt of invoices from CanAm.
9.2. CanAm will submit invoices and other supporting documentation which may be required by Client describing the Services and deliverables for which payment is claimed.
9.3. Client will pay, without set-off or deduction, each invoice or undisputed portion of an invoice within thirty (30) days from receipt of the invoice. Any disputes will be resolved according to the dispute resolution process set out in Section 17 of this Agreement. CanAm reserves the right to charge Client one (1) per cent interest per month on any undisputed outstanding balance of any fees or expenses not paid within fortyfive (45) days of date of invoice.
10. SOURCE CODE
10.1. This license will provide Client with run-time only capability for Teller as described in Section 2 of this Agreement.
10.2. Source code (metadata) to custom Configurations, reports, and specialized code developed specifically for Client will be provided to Client upon request.
Packet Page. 1831
11. REPRESENTATIONS AND WARRANTIES
11.1. CanAm will repair Teller Defects reported by Client during the term of this Agreement at no additional charge to Client. CanAm will make all reasonable efforts to resolve Defects quickly, via an Update if necessary.
11.2. The warranty on all CanAm-developed custom Configuration is defined in the applicable SOW. Subject to clause 11.4, licensed Interfaces are warranted. Material changes to the Client environment may require additional fee-based work.
11.3. CanAm does not provide warranty for any custom Configuration, custom code not developed by CanAm, or Third Party files included with Teller that are required to integrate with equipment or Third Party software.
11.4. CanAm warrants that it has full power and authority to grant this Teller license and that as of the effective date of this Agreement, the Teller software does not infringe on any existing Intellectual Property rights of any Third Party. If a claim of infringement is made by any Third Party, CanAm may, at its sole option either:
a) secure for Client the right to continue using the Teller software; or b) modify the Teller software so that it does not infringe.
If CanAm cannot or does not either secure for Client the right to continue using the Teller software or modify the Teller software so that it does not infringe, Client may terminate this Agreement for CanAm’s breach under Section 15.2. This represents Client's sole and exclusive remedy with respect to this warranty.
CanAm has no obligation to indemnify Client under this Section if any infringement claim is solely based upon or caused by the following: (i) a use for which Teller was not designed or specified; (ii) design specifications or any data, information, drawings, manuals, script, or like materials provided by Client to CanAm, which has resulted in the infringement action; and/or (iii) the unapproved combination, operation or use of Teller with any other Third Party product not provided by CanAm, to the extent that such combination, operation, or use results in the loss, damage, claim or expense in question. CanAm provides no warranty whatsoever for any Third Party software or hardware products. In the event of an infringement claim for which Client is or may be entitled to indemnification hereunder, CanAm will assume the defense at CanAm’s sole expense. CanAm will consult with Client regarding any settlement of any Third Party Claim but shall not be required to receive Client’s consent to settle any such claim, provided that no settlement shall require Client to admit any wrongdoing without Client’s consent.
Notwithstanding the foregoing, Client is entitled to be represented in any such action, suit, or proceeding at its own expense and by counsel of its choice.
11.5. TO THE MAXIMUM EXTENT PERMITTED BY LAW, CANAM AND ITS LICENSORS AND
SUPPLIERS DISCLAIM ALL OTHER WARRANTIES AND CONDITIONS, EXPRESS OR IMPLIED,
INCLUDING, WITHOUT LIMITATION, IMPLIED WARRANTIES OF MERCHANTABLE
QUALITY OR FITNESS FOR PARTICULAR PURPOSE, WHETHER ARISING BY STATUTE OR IN LAW OR AS A RESULT OF A COURSE OF DEALING OR TRADE USAGE.
11.6. THIS SECTION 11 SETS OUT THE SOLE AND EXCLUSIVE REMEDY WHICH APPLIES OR SHALL APPLY TO TELLER AND THE SERVICES. NO ORAL OR VERBAL ADVICE OR
INFORMATION GIVEN BY EITHER PARTY, THEIR AFFILIATES OR ITS OR THEIR AGENTS,
SERVANTS, EMPLOYEES, OR REPRESENTATIVES, SHALL CREATE A DIFFERENT OR
GREATER WARRANTY, AND THE PARTIES ACKNOWLEDGES THAT IT MAY NOT RELY
UPON ANY SUCH ORAL OR WRITTEN COMMUNICATIONS TO CREATE OR ESTABLISH WARRANTY RIGHTS IN EXCESS OF THE SOLE AND EXCLUSIVE WARRANTY HEREIN.
12. OWNERSHIP OF SOFTWARE AND DATA
12.1. CanAm has exclusive licensing and distribution rights for Teller software (Copyright © 2004 – 2024, all rights reserved), including Teller; licensed Teller Plugins, and licensed Teller Interfaces within the United Packet Page. 1832
States of America and Canada. Client will not remove any ownership or copyright notices from Teller software or documentation. Reproduction, disassembly, decompilation, transfer, reverse engineering, or disclosure to others, in whole or in part, of Teller is strictly prohibited.
12.2. CanAm is, and will remain, the exclusive owner, or is the authorized agent of the owner of Teller proprietary information, and all patent, copyright, trade secret, trademark, and other Intellectual Property rights remain solely with CanAm. No license or conveyance of any such rights to Client is granted or implied under this Agreement.
12.3. CanAm will retain ownership of the Intellectual Property associated with Enhancements or Interfaces developed by CanAm for Client.
12.4. Client is deemed to own any custom Configuration for their Teller installation. Client grants CanAm a non-exclusive, perpetual, irrevocable, royalty-free, worldwide license to use, reproduce, sublicense, modify, and sell the custom Configuration developed pursuant to this Agreement without compensation to Client.
12.5. Notwithstanding anything to the contrary herein, each Party and its respective personnel and contractors shall be free to use and employ its and their general skills, know-how, pre-existing IP and expertise, and to use, disclose, and employ any generalized ideas, concepts, know-how, methods, techniques, or skills gained or learned during the course of any assignment, so long as it or they acquire and apply such information without disclosure of any Confidential Information of the other Party.
12.6. Client may not sell, rent, lease, give, distribute, assign, pledge, sublicense, loan, timeshare, or otherwise transfer Teller software or documentation to any other Party. Client agrees not to distribute Teller as part of any other software product, commercial or otherwise, without the prior written approval of CanAm.
12.7. Client will retain sole and complete ownership of its data at all times, regardless of the location of the data, and CanAm may not make any use of Client data other than for testing and Service delivery purposes, without the prior written consent of Client.
13. CONFIDENTIAL AND PROPRIETARY INFORMATION
13.1. Each Party will hold in confidence, and will not disclose to any unauthorized personnel, any confidential or proprietary information of the other Party. Each Party will use such confidential or proprietary information only for the purpose for which it was disclosed.
13.2. As used in this Agreement, the term “confidential or proprietary information” (“Confidential Information”) means all trade secrets or proprietary information designated as such in writing by one Party to the other. All software code in source of object format will be deemed to be proprietary information regardless of whether it is marked as such. Information which is orally or visually disclosed by one Party to the other, or is disclosed in writing without an appropriate letter, proprietary stamp or legend, will constitute proprietary information of the releasing Party if:
a) it would be apparent to a reasonable person, familiar with the business of the releasing Party and the industry in which it operates, that such information is of a confidential or proprietary nature; or b) The releasing Party, within thirty (30) calendar days after such disclosure, delivers to the receiving Party a written document describing such information and referencing the place and date of such oral, visual, or written disclosure, and the names of receiving Party personnel to whom such disclosure was made.
13.3. Except as required by law, each Party will only disclose Confidential Information received by it under this Agreement to personnel who have a need to know such Confidential Information for the performance of its duties and who are bound by an agreement to protect the confidentiality of such Confidential Information.
Packet Page. 1833
13.4. Each Party will adopt and maintain programs and procedures which are reasonably calculated to protect Confidential Information, and will be responsible to the other Party for any disclosure or misuse of Confidential Information which results from a failure to comply with this provision. Each Party will promptly report to the other Party any actual or suspected violation of the terms of this Agreement and will take all reasonable further steps requested by the offended Party to prevent, control, or remedy any such violation.
13.5. The obligations of each Party specified above will not apply with respect to any Confidential Information, if the receiving Party can demonstrate, by reasonable evidence, that such Confidential Information:
a) was generally known to the public at the time of disclosure or becomes generally known through no wrongful act on the part of the receiving Party;
b) was already in the possession of the receiving Party at the time of disclosure; c) becomes known to the receiving Party through disclosure by sources having the legal right to disclose such Confidential Information;
d) was independently developed by the receiving Party without reference to, or reliance upon, the Confidential Information; or
e) was required to be disclosed by the receiving Party to comply with applicable laws or governmental regulations, provided that the receiving Party provides prompt written notice of such disclosure to the offended Party and takes reasonable and lawful actions to avoid and/or minimize the extent of such disclosure and, if possible, ensure that the confidentiality obligations of this Agreement are maintained.
13.6. If Client is subject to freedom of information legislation CanAm agrees to adhere to the standards outlined in such legislation regarding protection of privacy and disclosure of records with respect to all work done for Client pursuant to this Agreement.
13.7. Upon termination of this Agreement, each Party will make all reasonable efforts to return to the other Party all tangible manifestations, and all copies thereof, of Confidential Information received by the other Party under this Agreement, if requested to do so by the disclosing Party. In addition, each Party shall certify in writing that it has not retained any copies of any materials belonging to or furnished by the other Party, and that any software provided by the other Party pursuant hereto has been deleted from that Party’s computer and no copies have been retained in any form. The foregoing obligation shall not apply to Confidential Information that: (i) a Party deems necessary to retain to comply with applicable laws and regulations; and (ii) exists only as part of regularly generated electronic backup data, destruction of which is not reasonably practicable.
13.8. CanAm understands and agrees that, in the performance of the work or services under this Agreement may involve access to City data or information that is Confidential Information. CanAm agrees to hold all Confidential Information in strict confidence and not to copy, reproduce, sell, transfer, or otherwise dispose of, give or disclose such Confidential Information to third-parties other than its employees, agents, or authorized subcontractors who have a need to know in connection with this Agreement or to use such Confidential Information for any purposes whatsoever other than the performance of this Agreement.
CanAm and any subconsultants or agents shall use Confidential Information only in accordance with all applicable local, state and federal laws restricting the access, use and disclosure of Confidential Information and only as necessary in the performance of this Agreement. CanAm’s failure to comply with any requirements of local, state or federal laws restricting access, use and disclosure of Confidential Information shall be deemed a material breach of this Agreement, for which City may terminate the Agreement. CanAm agrees to advise and require its respective employees, agents, and subcontractors of their obligations to keep all Confidential Information confidential. CanAm will not disclose any Confidential Information of City except as compelled by a court or administrative body or required by any law or regulation. CanAm will give notice if any disclosure request is received for City’s Confidential Information, so City may file an objection with the relevant court or administrative body.
Packet Page. 1834
14. LIMITATIONS OF LIABILITY AND INDEMNITY
14.1. To the fullest extent permitted by law, CanAm (“Indemnifying Party”) shall defend at CanAm’s expense , indemnify and hold the City, its elected and appointed officials, officers, employees, agents, and authorized volunteers (collectively, the “Indemnitees”) free and harmless from any and all third party claims, demands, causes of action, suits, actions, proceedings for , costs, expenses, liability, judgments, awards, decrees, settlements, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, (collectively, “Third Party Claims”) in any manner arising out of, pertaining to, or incident to any negligent acts, errors or omissions, or willful misconduct of CanAm, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of this Agreement, including without limitation the payment of all damages, expert witness fees, attorneys’ fees and other related costs and expenses. This indemnification clause excludes claims solely arising from the acts or omission of any Indemnitee. CanAm’s indemnification obligation shall survive the expiration or earlier termination of this Agreement
14.2. Neither Party shall be liable for any indirect, incidental, special, punitive or consequential damages, including without limitation loss of profits (otherwise than in respect of any obligation to pay the fees due to CanAm), savings, revenue, business or data, however arising, whether in contract, tort (including negligence) or any other legal or equitable theory, even if it has been advised of the possibility of such damages; and (ii) the Parties’ liability shall not exceed, in the event of City’s liability to CanAm, the fees and expenses due and owing to CanAm, and in the event of CanAm’s liability to the City, the fees and expenses actually paid by the City to CanAm, in the twelve (12) month period prior to the event giving rise to the claim. The City’s sole and exclusive remedy with respect to any alleged breach of a license or subscription agreement for, any warranty under a license or subscription agreement for, or the suitability, characteristics, functionality or performance of, or infringement of Intellectual Property Rights by, third party software shall be in accordance with the terms of the license or subscription agreement or related agreements between the City and the third party software vendor and CanAm shall have no liability therefor. Notwithstanding any of the foregoing, this limitation of liability provision shall not apply to losses and damages resulting from breaches of confidentiality, willful misconduct, bodily injury, death, damage to physical property, violations of applicable laws and gross negligence..
14.3. .
15. TERMINATION AND DEFAULT CONDITIONS
15.1. CanAm may terminate this Agreement if: Client fails to make required payments within 90 days of due date provided that CanAm has issued a minimum of two (2) delinquency notices, Client materially fails to fulfill its obligations and responsibilities or breaches any material term of this Agreement, Client becomes bankrupt or insolvent, or if a receiver is appointed to manage the property and assets of Client. If any of the above conditions are encountered, CanAm will provide written notice to Client and provide 30 calendar days for Client to remedy the default. If the default is not rectified within 30 calendar days, CanAm will have cause to terminate this Agreement.
15.2. Client may terminate this Agreement if: CanAm materially fails to fulfill its obligations and responsibilities or breaches any material term of this Agreement, CanAm becomes bankrupt or insolvent, or if a receiver is appointed to manage the property and assets of CanAm. If any of the above conditions are encountered, Client will provide written notice to CanAm and provide 30 calendar days for CanAm to remedy the default. If the default is not rectified within 30 calendar days, Client will have cause to terminate this Agreement.
Packet Page. 1835
15.3. City has the right to terminate or abandon any portion or all of the work under this Agreement by giving sixty (60) business days written notice to CanAm. In such event, City shall be immediately given title and possession to all original field notes, drawings and specifications, written reports and other documents produced or developed for that portion of the work completed and/or being abandoned upon payment to CanAm for work performed. City shall pay CanAm the value of services rendered for any portion of the work completed prior to termination. If said termination occurs prior to completion of any task for the project for which a payment request has not been received, the charge for Services performed during such task shall be the value of such Services, based on the hourly rate set forth in the Statement of Work. City shall not be liable for any costs other than the charges or portions thereof which are specified herein.
CanAm shall not be entitled to payment for unperformed Services, and shall not be entitled to damages or compensation for termination of work.
15.4. In the event that, during the term of this Agreement, funds are not appropriated for the payment of Client’s obligations hereunder, Client may terminate this Agreement with thirty (30) days advance written notice, effective on the last day for which an appropriation has been made.
15.5. Termination of this Agreement will not affect the provisions of this Agreement relating to the payment of amounts due under Section 5; Software as a Service License Fees, Section 14; Limitation of Liability and Indemnity, Section 13; Confidentiality; or any other obligations of the parties which by their nature are intended to survive termination of this Agreement.
16. RIGHTS AND OBLIGATIONS
16.1. If either CanAm or Client terminates this Agreement, CanAm will retain all fees for Services delivered to Client up to the date of termination. CanAm will refund a pro-rated portion of the Annual Software as a Service Fee to Client, based on the number of full or partial calendar months of service provided under the Agreement since the last annual renewal date.
16.2. Any termination by either Party as provided in this Agreement will not in any way operate to deny any right or remedy of the other Party, either at law or in equity, or to relieve a Party of any obligation to pay the sums due under this Agreement, or of any other obligation accrued prior to the effective date of termination.
16.3. Upon termination of this Agreement, Client agrees to cease any and all operational use of Teller and further agrees to delete all Teller software from the Client Infrastructure. CanAm agrees to make reasonable provision for an extract of Client’s operational data from Client’s Production Environment if requested by Client.
16.4. Teller is subject to the export control laws of the United States and other countries. Client may not export or re-export Teller software without the appropriate United States and foreign government licenses. Client must comply with all applicable export control laws and will defend, indemnify and hold CanAm harmless from any claims arising from Client’s violation of such export control laws.
17. DISPUTES
17.1. CanAm and Client will both separately and jointly use diligent efforts to establish positive and ongoing communications both within and between their respective organizations. Key personnel within CanAm and Client will communicate regularly in order to review the status and priorities for the provision of services by CanAm and Client.
17.2. In the event of any dispute arising between CanAm and Client with respect to their rights and obligations under this Agreement, the Party feeling itself aggrieved will notify the other Party of the substance in Packet Page. 1836
writing of such grievance. Both parties agree to work in good faith and make all reasonable efforts to resolve the dispute, including, if necessary, escalating the dispute to:
• First level: the Project Manager of CanAm and the Project Manager for Client; and • Second level: the President/CEO of CanAm and the Chief Executive for Client.
17.3. In the event the grievance cannot be resolved to the mutual satisfaction of the parties within 30 calendar days, the Party feeling itself aggrieved may request mediation, based on the then-current commercial mediation rules of the American Arbitration Association. The award of the mediation body will be nonbinding upon CanAm and Client.
18. RELATIONSHIP OF THE PARTIES
18.1. Each of the Parties is an independent contractor. Nothing herein shall be construed to place the Parties in a relationship of principal and agent, partners or joint venturers, and neither Party shall have the power to obligate or bind the other Party in any manner whatsoever.
19. WAIVER
19.1. No failure or delay on the part of either Party to exercise any right or remedy hereunder will operate as a waiver of such right or remedy.
20. ASSIGNMENT AND SUCCESSION
20.1. This Agreement, including all of its rights and obligations created hereunder, shall not be assigned or transferred in any manner whatsoever (except upon transfer of majority ownership of a Party's business by merger, or consolidation, in which case the Agreement may be assigned to the succeeding owner) unless with the prior written consent of the opposite Party signed by an officer thereof, which consent will not be unreasonably withheld. Subject to the foregoing, this Agreement shall be binding upon and shall inure to the benefit of the Parties and their respective successors and assigns.
21. NON SOLICITATION
21.1. Client agrees that for the duration of this Agreement, and for a period of one (1) year from the date of termination of this Agreement (or the date of termination of the final SOW if that date is later), it will not on its own behalf or on behalf of any other person or entity: (a) initiate contact for the purposes of hiring or contracting the service of, or (b) directly or indirectly solicit or induce for employment, or otherwise offer to hire or contract the services of, any employee, contractor or agent of CanAm who is directly related to the provision of services hereunder. Notwithstanding the foregoing, the provisions of this Section 21.1 shall not apply to the hiring of: (i) any individual who is hired as a result of responding to a general public “help wanted” type of solicitation by a Party; or (ii) any individual who, of his or her own volition, approaches, contacts, or solicits a Party for employment or other working arrangements and who such Party has not induced or solicited to make such approach, contact, or solicitation.
22. FORCE MAJEURE
22.1. Neither Party shall be under liability to each other by reason of non-performance or delay in performance of any obligation hereunder caused by Force Majeure, to the extent that non-performance or delay is attributable to such Force Majeure and only for the duration of the Force Majeure and the effect upon its ability to perform its obligation hereunder.
23. SEVERENCE
23.1. If any provision of this Agreement is declared by a court of competent jurisdiction to be invalid, illegal, or unenforceable, such provision can be severed from this Agreement and all other provisions will remain in full force and effect.
Packet Page. 1837
24. INSURANCE
24.1. Before commencement of the Services, CanAm shall take out and maintain, at its own expense, and shall cause any subcontractor with whom the CanAm uses for the performance of Services to take out and maintain, the following insurance until completion of the Services or termination of the Agreement, whichever is earlier, except as otherwise required by the “Minimum Limits of Insurance” section below.
All insurance shall be placed with insurance companies that are licensed and admitted to conduct business in the state of California and are rated at a minimum with an “A:VII” by A.M. Best Company, unless otherwise acceptable to the City. The amount of such insurance shall be at least for the limits specified below:
Coverage Limits of Liability
Workman’s Compensation Statutory
Professional Liability/Errors & Omissions $2,000,000
Cyber Liability $1,000,000
Employer’s Liability $1,000,000
General Liability Per Occurrence $1,000,000 Each
Occurrence
General Liability Aggregate $2,000,000
Non-owned Automobile Combined Single
Liability Limit
$1,000,000
CanAm shall list the City, its officers, officials, employees, and volunteers as additional insured with respect to general liability and automobile. Additionally, CanAm shall also obtain any endorsements that may be necessary to affect the waiver of subrogation for the aforementioned coverages.
24.2. CanAm shall provide Client with acceptable evidence of insurance upon request.
25. CURRENCY
25.1. Unless otherwise noted, all reference to payment amounts in this Agreement are in U.S. dollars.
26. GOVERNING LAW
26.1. This Agreement will be governed by, construed, and enforced in accordance with the laws of the State of California. The parties irrevocably attorn to the jurisdiction of the courts of the State of California. The Parties also agree that the venue of any action to enforce the provisions of this Agreement, or any document executed in connection with this Agreement, shall be in the County of San Bernardino, California.
27. COUNTERPARTS
27.1. This Agreement may be executed in two or more counterparts, by facsimile or otherwise, each of which is an original, and all of which together constitute one and the same instrument, notwithstanding that all parties are not signatories to the same counterpart.
Packet Page. 1838
28. ENTIRE AGREEMENT
28.1. This Agreement, and any applicable attachments, SOWs, schedules, exhibits or other documents constitutes the entire agreement of the Parties with regard to the matters herein, and supersedes all other prior written or oral agreements, representations and other communications between the Parties. All terms of any order acknowledgement or other document provided by Client, including but not limited to any preprinted terms thereon and any terms that are inconsistent, add to, or conflict with this Agreement, shall be null and void and of no legal force or effect. No modification of this Agreement is valid unless set out in writing by the Parties.
Can/Am Technologies, Inc. City of San Bernardino, CA
________________________________ _____________________________ Signature Signature
_________________________________ _____________________________ Name Name
_________________________________ _____________________________ Title Title
_________________________________ _____________________________ Date Date
Packet Page. 1839
Exhibit A
Licensed Teller Interfaces and Users
License Description Quantity Monthly Base
Amount
Teller Standard License Teller Standard License Package:
• Production instance of Teller
• Test instance of Teller
• 5 Named User Licenses
• Credit Processing Interface
• Unlimited read-only users
• Hosting and Support Services
1 $2,595
Based on $35/month/user.
Future Additional Named
Users @ $50/month/user
Named User Licenses (total: 153 user licenses) 148 $5,180 Based on
$250/month/interface.
Future Business System
Interfaces at
$275/month/interface
Oracle A/R, Acella, Go Enforce, PSI, Chamelon,
Library
6 $1,500
End of Day Payment Import
Interfaces @ $165/interface
Image Cash Letter License /
Check Recognition License
Up to 30,000 annual check scans 1 $495
Revenue Submission Up to 8 departments 1 $400
Teller Online Up to 50,000 annual transactions for A/R, Accela, Licenses and 1 tbd.
1 $1,225
Monthly Total Pricing based on annual payment $11,395
Packet Page. 1840
Annual Software as a Service Fees*
License and all other fees are in US dollars and exclude any applicable taxes.
Time Period Fee
Year 1 $136,740
Year 2 $142,210
Year 3 $147,898
Year 4 $153,814
Year 5 $159,966
Professional Services*
All rates are in US dollars and exclude any applicable taxes.
Service Rate
Professional Services Hours $220/hr
* After year one, Annual Fees and the Professional Services Hourly rate will be subject to an annual increase equal to 4% annually.
Additional licenses and/or users may be added throughout the Term of this Agreement. The price for each added license and/or user will be pro-rated to the annual renewal date, itemized accordingly in an invoice, and henceforth included in the annual invoice.
Packet Page. 1841
Exhibit B
SaaS Service Level Agreement
1. OWNERSHIP OF DATA
1.1. Regardless of the location of the hosting facility, Client will retain sole and complete, legal and beneficial ownership of its data stored on the Hosting Services Site.
1.2. CanAm’s responsibilities and rights regarding Client data are solely restricted to the provision of services described in this Hosting SLA. CanAm may not make any other uses of Client data for any reason whatsoever, without the express written consent of Client, unless ordered to release such data by a court of competent jurisdiction.
1.3. Client may request return of any or all of its data at any time, for any reason, and CanAm will provide such data within a reasonable period of time, in native format.
2. OVERVIEW OF SAAS SERVICES
2.1. CanAm is committed to providing secure, reliable and dedicated SaaS Services to Client. For maximum protection and value to Client, CanAm will contract with Amazon AWS for provision of a hosting facility in the United States.
2.2. CanAm reserves the right to change hosting providers to an alternate service providing comparable functionality, and meeting the standards in this document.
2.3. All SaaS services will be provisioned from data centers located within the United States.
2.4. In return for Annual Software as a Service Fee from Client, CanAm will provide the following services to Client:
Service Description
Secure Hosting
Site
A secure hosting facility with 24/7 security control.
Internet Service
Providers
A facility with stable network connectivity across North America.
Internet services will be routed through multiple independent carriers to eliminate single-carrier points of failure.
Data and Service
Redundancy
Redundant storage across multiple zones providing failover in the event of a catastrophic failure at the primary hosting site.
Software Operating System, Database and Virus Protection software as required to run the Teller environments.
CanAm will keep systems secure by keeping them up-to-date on security patches and security audits, and all Third-Party critical updates will be applied in a timely manner following Third-Party vendor notification.
Teller Software
Updates
CanAm will test and install into the Teller environment at the SaaS Services hosting Site, all Updates to the Teller software which are made generally available during the term of this Agreement.
Data Backups Securing Client data against loss is a key provision within the SLA. Full backups will be performed on a regular basis.
3. AVAILABILITY COMMITMENT, ISSUE TRACKING, AND REMEDIES
3.1. While the SaaS Services Site availability will generally be expected to be 24 x 7 (except for scheduled or critical outages), the commitment of CanAm is to provide SaaS Services hosting site availability during CanAm business hours (6:00 am – 6:00 pm Monday through Friday Mountain Time, excluding published Packet Page. 1842
CanAm holidays) for 99.9% uptime or better in a calendar month. Credits may be claimed only against loss of SaaS Services during CanAm business hours.
3.2. If CanAm during regular Client business hours fails to provide SaaS Services availability, as defined below, in any given calendar month, CanAm will issue a credit towards future SaaS Service Fees in accordance with the following schedule:
SaaS Services Site Availability Credit Percentage (of monthly fee)
99.9% to 100% 0%
98.0% to 99.8% 2.5%
97.0% to 97.9% 5%
95.0% to 96.9% 7.5%
90.0% to 95.0% 25%
Below 90.0% 100%
3.3. Can/Am will provide a monthly report identifying any downtime in the previous month. Downtime will be calculated to the minute from the time it is first detected (by our monitoring or by Client report) until service is restored, during the guaranteed availability time period defined in 3.1. Downtime percentage is calculated as: Minutes of Downtime / (Daily Guaranteed Availability Minutes X Number of Business Days in Month – Emergency Outage (as defined below) minutes). Credits will be applied to the next billing cycle.
3.4. The total amount credited to Client for any given month under this SaaS Services SLA will not exceed the total Annual Software as a Service fee paid by Client for such month for the affected service. Except in cases of gross negligence, client specifically acknowledges and confirms that under no circumstances whatsoever will CanAm be liable for any incidental, indirect, exemplary, special or consequential damages of any nature or kind, or any loss resulting from business disruption arising from any services covered under the terms of this agreement, regardless of the form of action, whether in contract, tort (including negligence), strict product liability or otherwise, even in the event that CanAm has been advised of the possibility of such damages.
3.5. Client will not receive any credits under this Agreement in connection with any failure or deficiency of CanAm SaaS Services caused by:
• Scheduled Maintenance – Time allocated for scheduled monthly maintenance, Emergency Outage, or critical updates of servers and other CanAm equipment will not be considered “down time” as used in the calculation of SaaS Services availability described in Section 3.2 of this SaaS Services SLA.
Maintenance will be scheduled for outside of Client Business hours specified in Section 3.1 of this SaaS Service SLA. The schedule for regular monthly maintenance windows will be provided to the Client at least 4 weeks prior. Except for emergencies, maintenance outages will be communicated via e-mail to the Client at least 2 business days in advance of any such outage. • Client Equipment – Client is solely responsible for maintaining all Client equipment not at the SaaS Services Site and for ensuring that such equipment is in proper working order, has the correct software installed, and has the ability to connect to the CanAm SaaS Services for the exchange of data.
• Client ISP Provider – Client is solely responsible for maintaining all Client connections with local Internet Service Providers (ISPs) and for resolving any problems that might arise with local ISP connections.
• Internet Outages – CanAm is not responsible for Internet outages (including ISP peering) that may make CanAm SaaS Services appear inaccessible when others can still access it.
Packet Page. 1843
• Client Acts or Omissions – including acts or omissions of others engaged or authorized by Client, including, without limitation, any negligence, willful misconduct, or use of the SaaS Services in breach of the terms and conditions of this SaaS Services SLA. • Emergency Outage - Unavailability of SaaS due to Can/Am or hosting provider response to critical security vulnerability (such as a “Zero Day Vulnerability”) or suspected breach • Force Majeure
Packet Page. 1844
©2024 Can/Am Technologies, Inc.
Exhibit C: Statement of Work
City of San Bernardino, CA
Teller Implementation Project
Packet Page. 1845
Exhibit C: Statement of Work – Teller Implementation Project City of San Bernardino, CA 10/18/2024
©2024 Can/Am Technologies, Inc. Page 2 of 14
Overview
This Statement of Work (“SOW”) is issued pursuant to the Teller Software as a Service agreement (the “Agreement”) between the City of San Bernardino, CA (“Client”) and Can/Am Technologies, Inc (“CanAm”). The SOW describes the scope and pricing of services and hardware for the Teller implementation project.
This Project has a fixed-price cost of $254,200 for professional services, not including travel costs and optional items which are itemized in this document. SaaS Licensing costs are specified in the Teller SaaS Agreement. Professional Services costs are fixed costs and payable as per the Payment Milestones section in this document.
The schedule will be discussed with the Client project team at the Project Kick-off meeting before a final schedule is established and will be contingent on several factors including Client staff availability and resources.
Packet Page. 1846
Exhibit C: Statement of Work – Teller Implementation Project City of San Bernardino, CA 10/18/2024
©2024 Can/Am Technologies, Inc. Page 3 of 14
Contact Information
Can/Am Technologies President: Joshua Langemann
• Direct Phone: 303-847-4684
• E-mail: [email protected]
Can/Am Technologies Director of Implementations: Noah Ardron • Direct Phone: 720-577-5180
• E-mail: [email protected]
Teller Project Manager: Ben Schweitzer
• Direct Phone: 720-577-5331
• E-mail: [email protected]
Can/Am Technologies Information:
Mailing Address:
1819 Denver West Dr, Suite 225
Lakewood, CO 80401
Telephone:
1-844-583-5537 – toll-free
Packet Page. 1847
Exhibit C: Statement of Work – Teller Implementation Project City of San Bernardino, CA 10/18/2024
©2024 Can/Am Technologies, Inc. Page 4 of 14
Scope of Work
The implementation project includes project planning, project management and project administration services to execute the Project successfully within the stated timelines and budget. The scope includes the project kickoff, Teller setup/configuration, development/testing of all integrations, standard reporting, training, and UAT/Go-live support. The stated Target Month will be determined by CanAm and the Client and may be adjusted once an approved project timeline is completed.
Scope of Services
Target
Month
Activity Description Acceptance Criteria
A.2 Project PrePlanningPreliminary planning, team ramp-up, and kickoff scheduling/project alignment.
Kickoff scheduled.
1 Kickoff
Meeting,
Teller Analysis
Workshops,
and
Configuration
2 days of onsite or remote configuration analysis,
including:
• Teller Kickoff meeting with
implementation team members to
provide project overview and
demonstration of Teller.
• Analysis workshops for configuration of
Teller software for baseline Teller
department.
• IT workshop for coordination of
deployment, hosting, and IT
requirements for equipment.
• Project planning.
CanAm has completed
workshops and shared the
resulting initial decision
documentation.
2 Interface
Workshops
2 days of onsite or remote interface analysis,
including:
• Oracle Financials
• Oracle A/R
• Accela (Bi-Directional)
• Go Enforce (Bi-Directional)
• PSI (Bi-Directional)
• Chameleon (Bi-Directional)
• Library (Bi-Directional)
• TBD Credit Integration
• ICL – Bank TBD
CanAm has completed
workshops and shared the
initial resulting decisions
and interface requirements.
2/3/4 Interface
Requirements
Interface specifications for all third-party
interfaces including:
• Oracle Financials
• Oracle A/R
• Accela (Bi-Directional)
• Go Enforce (Bi-Directional)
CanAm has delivered
finalized Interface
Requirements documents
based on information
gathered with Client on
each interface.
Packet Page. 1848
Exhibit C: Statement of Work – Teller Implementation Project City of San Bernardino, CA 10/18/2024
©2024 Can/Am Technologies, Inc. Page 5 of 14
• PSI (Bi-Directional)
• Chameleon (Bi-Directional)
• Library (Bi-Directional)
• TBD Credit Integration
• ICL – Bank TBD
5 Teller
Configuration
Completion of initial Teller Configuration and
Setup for baseline Department based on
Workshops.
CanAm has performed
initial Teller configuration
available to Client in Test
environment and provided
the Teller Configuration
Spreadsheet and Analysis
Decisions Document.
5 Interface
Configuration
Configuration of Teller interfaces to:
• Oracle A/R
• Oracle Financials
CanAm has demonstrated
working integrations in
Client Test environment.
6 Interface
Configuration
Configuration of Teller interfaces to:
• Accela
• TBD Credit Integration
CanAm has demonstrated
working integrations in
Client Test environment.
7 Revenue
Submission
Configuration
Completion of initial Revenue Submission
configuration.
CanAm has performed
initial Revenue Submission
configuration available to
Client in Test environment.
8 Interface
Development
Development of new Teller interfaces to:
• Go Enforce (Code)
CanAm has demonstrated
working integrations in
Client Test environment.
9 Interface
Development
Development of new Teller interfaces to:
• PSI
CanAm has demonstrated
working integrations in
Client Test environment.
10 Interface
Development
Development of new Teller interfaces to:
• Chameleon
• TBD ICL Integration
CanAm has demonstrated
working integrations in
Client Test environment.
11 Interface
Development
Development of new Teller interfaces to:
• Library
CanAm has demonstrated
working integrations in
Client Test environment.
12 Teller Online
Configuration
Completion of initial Teller Online configuration.
• Oracle A/R
• Accela
• PSI
• 1 TBD
CanAm has performed
initial online configuration
available to Client in Test
environment.
13 System
Integration
Testing
System Integration Testing with Client systems and
all interfaces and configuration in place.
CanAm has demonstrated
all integrations in Client
Test environment.
Packet Page. 1849
Exhibit C: Statement of Work – Teller Implementation Project City of San Bernardino, CA 10/18/2024
©2024 Can/Am Technologies, Inc. Page 6 of 14
14 Training Delivery of final configuration for 8 Departments.
Training preparation and 3-days of onsite or
remote delivery of setup and training sessions:
1. Teller Usage training (Train the Trainer)
2. Teller Administrator training (Train the
Trainer)
3. Revenue Submission Training (Train the
Trainer)
4. Teller Online Administration Training
Training sessions completed
including remedial sessions
as needed.
14 UAT Remote support for Client’s User Acceptance
Testing.
Client-led End-User Training.
CanAm has documented all
issues identified and
resolved any High or Critical
priority issues raised during
agreed-upon UAT period.
15 Go Live Provision Teller Production environment,
including configurations made to the Test
environment.
Provide 2 days of onsite or remote go-live support
by a Teller technician.
1-month Post-Go Live Support by Implementation
team or until any critical or high priority issues
remain unresolved.
Transition to Teller Client Care for ongoing
support.
Teller is utilized in
Production by Client for one
month with all in-scope
functions operational and
any High or Critical priority
issues resolved in
Production to Client’s
satisfaction.
Monthly Project
Management
Monthly
Plan and oversee all aspects of the Teller
implementation project to meet the Client’s
project goals on time and within budget.
Estimated at 15 months.
CanAm will provide monthly
project status documents to
the Client’s project
manager.
Packet Page. 1850
Exhibit C: Statement of Work – Teller Implementation Project City of San Bernardino, CA 10/18/2024
©2024 Can/Am Technologies, Inc. Page 7 of 14
Estimated Travel Costs
Item Description Estimated Total
Travel (4 trips) Actual costs billed monthly as incurred in each month $16,025 Packet Page. 1851
Exhibit C: Statement of Work – Teller Implementation Project City of San Bernardino, CA 10/18/2024
©2024 Can/Am Technologies, Inc. Page 8 of 14
Payment Milestones
Invoices will be sent once a month for PM services and the portion of the project attributable to the month per the schedule below. Hardware will be billed on separate invoices.
Month Planned Activities Notes Amount
A.1 Contract Execution 25% of services upon contract
execution.
$63,500
A.2 Project Pre-Planning Pre-Planning and Kickoff
Alignment.
$0
1 On-site Kickoff Meeting, Teller Analysis
Workshops
Services, PM $12,700
2 On-Site Interface Workshops, Interface
Requirements
Services, PM $12,700
3 Interface Requirements Services, PM $12,700
4 Interface Requirements Services, PM $12,700
5 Teller Configuration, Interface
Configuration
Services, PM $12,700
6 Interface Configuration Services, PM $12,700
7 Revenue Submission Configuration Services, PM $12,700 8 Interface Development Services, PM $12,700
9 Interface Development Services, PM $12,700
10 Interface Development Services, PM $12,700
11 Interface Development Services, PM $12,700
12 Teller Online Configuration Services, PM $12,700
13 System Integration Testing Services, PM $12,700
14 Training, UAT Services, PM $12,700
15 Go Live Services, PM $12,900
$254,200
Packet Page. 1852
Exhibit C: Statement of Work – Teller Implementation Project City of San Bernardino, CA 10/18/2024
©2024 Can/Am Technologies, Inc. Page 9 of 14
Pricing Terms
• All quoted pricing is in US dollars and exclusive of any applicable taxes. • All invoices are based on Net 30 payment terms. CanAm reserves the right to charge Client one (1) per cent interest per month on the undisputed outstanding balance of any fees or expenses not paid with forty-five (45) days of date of invoice.
Packet Page. 1853
Exhibit C: Statement of Work – Teller Implementation Project City of San Bernardino, CA 10/18/2024
©2024 Can/Am Technologies, Inc. Page 10 of 14
Hardware Options
Equipment prices are provided based on current rates, and subject to change due to changing hardware costs.
Item Model Unit Price Quantity Total
Receipt Printer Epson TM-M30/USB/Thermal Printer $312 0 $0 Check Scanner Digital Check CheXpress CX30 $481 0 $0
Cash Drawer APG Series 4000 Electronic Cash
Drawer with Multi-Pro interface cable
$328 0 $0
Credit/Debit
Device
Ingenico Lane 5000 USB credit/debit
PINPad with cables
$768 0 $0
Total Equipment 0 $0
Packet Page. 1854
Exhibit C: Statement of Work – Teller Implementation Project City of San Bernardino, CA 10/18/2024
©2024 Can/Am Technologies, Inc. Page 11 of 14
Assumptions
• All deliverables are provided on a Fixed Price basis. • 25% of services are billed upon contract signing.
• No data conversion of cashiering data is anticipated in this project or included in the scope. • Usage training is on a “train the trainer” basis, designed to enable the Client’s key users to train existing and future staff on Teller. It is assumed that Can/Am will provide one set of training with key Client staff and trainers, who will perform end-user training for each area. • Statement of Work is based on the assumption of a single Teller implementation cycle. • Configuration milestones assume CanAm will implement/assist in implementation of eight departments. Any additional departments will be configured by Client or will be additions to scope.
• Bi-Directional interfaces scoped within Interface Configuration Activities assume the usage of pre-existing Teller integration capabilities with the specified systems/solutions. Any new functionality requests/requirements will be evaluated and may constitute additions to scope. • Online Payment and Credit Processing functionality assumes that Client will contract with a single Teller-integrated credit/e-pay provider for electronic payment processing and online bill payment.
• Image Cash Letter integration is based on an interface with the Client Bank and assumes that the Bank will cooperate in testing and approval for ICL submission from Client’s Teller system. • The CanAm Project Manager will coordinate the project with the Client, in conjunction with the project team implementing the Oracle solution.
• The travel and accommodation costs necessary to deliver the scope of this effort described in this document are estimated and will be billed based on actual travel costs per the Can/Am Travel Policy. Public health concerns may require a combination of remote and on-site implementation.
Client Responsibilities
• Client Teller Business Owner/SME (and/or delegates) – Can/Am estimates that this role will spend an average of no more than 20 hours per month on Teller-related activities. o Provide available current cashiering process documentation, including copies of any forms or receipts used.
o Provide mandatory cash management controls required.
o Provide list of items for sale with applicable price & account strings. o Identify and provide subject matter experts to collaborate with CanAm. o Attend analysis, demonstration, and training sessions. o Create user acceptance testing scenarios and plans.
o Provide training to end users prior to go live.
Packet Page. 1855
Exhibit C: Statement of Work – Teller Implementation Project City of San Bernardino, CA 10/18/2024
©2024 Can/Am Technologies, Inc. Page 12 of 14
o Acquire all POS hardware and Credit Terminals (Through CanAm if desired). • Client Teller Technical Owner/SME (or Delegates) – Can/Am estimates that this role will spend an average of no more than 20 hours per month on Teller-related activities. o Identify and provide subject matter experts to collaborate with CanAm. o Attend analysis, demonstration, and training sessions. o Set up all POS hardware and Credit Terminals.
o For all business application interfaces, obtain and provide the Teller implementation team with all API specifications and/or database connections and/or example files as well as a dev/test environment suitable for development of the interfaces. Where a test environment is not available, Client will provide a technical resource that will provide sample input data and validation of all output batch files. • Client staff will be available when required. Delays caused by lack of access may impact cost and schedule.
Packet Page. 1856
Exhibit C: Statement of Work – Teller Implementation Project City of San Bernardino, CA 10/18/2024
©2024 Can/Am Technologies, Inc. Page 13 of 14
UAT and Change Management
UAT Acceptance
The process of UAT acceptance allows the project teams and other project stakeholders to confidently move the project forward to Go Live knowing that key deliverables have been completed to the satisfaction of both parties.
Upon completion of all deliverables and delivery of the complete system into the Client Testing Environment, Client will conduct User Acceptance Testing based on test plans that the Client develops.
CanAm will support Client in this process.
Within 2 weeks of start of testing, Client will deliver to CanAm a list of all issues the High or Critical of which must be resolved prior to go live, if any. High and/or Critical issues will be resolved within a timeline mutually agreed by Can/Am, Client and Oracle project teams. Once the issues have been resolved, Client will test and either approve for Go Live or provide an additional list of items to resolve. This process will be documented with an Issues Log to enable tracking of issues and approval of results.
Change Requests
Scope management is a joint responsibility of the CanAm Project Manager and the Client Project Manager.
The project team naturally plays a significant role in the management of scope and ultimately the success of the project.
The change control process is initiated when CanAm and/or Client determine that a change is required to the current scope or schedule baseline at the time the change is identified. Changes to the project scope, schedule and costs will be documented and agreed to using Change Request forms executed by the Client Project Manager and the CanAm Project Manager.
Packet Page. 1857
Exhibit C: Statement of Work – Teller Implementation Project City of San Bernardino, CA 10/18/2024
©2024 Can/Am Technologies, Inc. Page 14 of 14
Warranty
1. CanAm represents and warrants that:
a. it will perform the Services in a professional manner. This includes taking in good faith all reasonable measures to achieve the results described in the Statement of Work; b. the Deliverables created by CanAm in connection with this Agreement will conform to the terms and specifications provided herein;
c. it will not unreasonably delay deliverables beyond the estimated completion months set forth above, and it will immediately inform Client of any delays; d. it has the full power and authority to enter into this Agreement, to carry out the obligations under this Agreement and to grant to Client the rights granted hereunder.
2. Unless otherwise directed by Client, CanAm will commence the Services at the time specified in the Statement of Work or as otherwise agreed by the Parties. Unless otherwise specified by Client, the Services will continue without interruption, and the Services will be completed, and the Deliverables will be provided within the time specified. Notwithstanding the foregoing, Client acknowledges that CanAm’s performance of this Agreement is dependent in part on Client’s actions and that any dates or time periods relevant to the performance of this Agreement by CanAm will be appropriately extended to account for any delays caused by Client’s actions or omissions or failure to perform any of its obligations pursuant to this Agreement.
3. CanAm warrants the Services provided under this Agreement for a period of ninety (90) days after go-live.
Packet Page. 1858
1 PUBLIC SECTOR AGREEMENT FOR ORACLE CLOUD SERVICES
This Public Sector Agreement for Oracle Cloud Services (this “Agreement”) is between Oracle America, Inc. (“Oracle,” “we,” “us,” or “our”) and the entity that has executed this Agreement as identified in the signature block below (“You” or “Your”).
This Agreement sets forth the terms and conditions that govern orders placed under this Agreement.
1. USE OF THE SERVICES
1.1. We will make the Oracle services listed in Your order (the “Services”) available to You pursuant to this Agreement and Your order. Except as otherwise stated in this Agreement or Your order, You have the nonexclusive, worldwide, limited right to use the Services during the period defined in Your order, unless earlier terminated in accordance with this Agreement or Your order (the “Services Period”), solely for Your internal business operations. You may allow Your Users (as defined below) to use the Services for this purpose, and You are responsible for their compliance with this Agreement and Your order.
1.2. The Service Specifications describe and govern the Services. During the Services Period, we may update the Services and Service Specifications to reflect changes in, among other things, laws, regulations, rules, technology, industry practices, patterns of system use, and availability of Third Party Content (as defined below). Oracle updates to the Services or Service Specifications will not materially reduce the level of performance, functionality, security or availability of the Services during the Services Period of Your order.
1.3. You may not, and may not cause or permit others to: (a) use the Services to harass any person; cause damage or injury to any person or property; publish any material that is false, defamatory, harassing or obscene; violate privacy rights; promote bigotry, racism, hatred or harm; send unsolicited bulk e-mail, junk mail, spam or chain letters; infringe intellectual or other property rights; sell, manufacture, market and/or distribute any product or service in violation of applicable laws; or otherwise violate applicable laws, ordinances or regulations; (b) perform or disclose any benchmarking or availability testing of the Services, except as permitted in the Service Specifications; (c) perform or disclose any performance or vulnerability testing of the Services without Oracle’s prior written approval, except as permitted in the Service Specifications, or perform or disclose network discovery, port and service identification, vulnerability scanning, password cracking or remote access testing of the Services; or (d) use the Services to perform cyber currency or crypto currency mining ((a) through (d) collectively, the “Acceptable Use Policy”). In addition to other rights that we have in this Agreement and Your order, we have the right to take remedial action if the Acceptable Use Policy is violated, and such remedial action may include removing or disabling access to material that violates the policy.
2. FEES AND PAYMENT
2.1. All fees payable are due within 30 days from the invoice date. Once placed, Your order is non-cancelable and the sums paid nonrefundable, except as provided in this Agreement or Your order. You will pay any sales, valueadded or other similar taxes imposed by applicable law that we must pay based on the Services You ordered, except for taxes based on our income. Fees for Services listed in an order are exclusive of taxes and expenses, unless expressly stated otherwise in Your order.
2.2. If You exceed the quantity of Services ordered, then You promptly must purchase and pay fees for the excess quantity.
2.3. You understand that You may receive multiple invoices for the Services. Invoices will be submitted to You pursuant to Oracle's Invoicing Standards Policy, available at https://www.oracle.com/contracts/cloud-services.
3. OWNERSHIP RIGHTS AND RESTRICTIONS
3.1. You or Your licensors retain all ownership and intellectual property rights in and to Your Content (as defined below). We or our licensors retain all ownership and intellectual property rights in and to the Services, derivative works thereof, and anything developed or delivered by or on behalf of us under this Agreement.
Packet Page. 1859
2 3.2. You may have access to Third Party Content through use of the Services. Unless otherwise stated in Your order, all ownership and intellectual property rights in and to Third Party Content and the use of such content is governed by separate third party terms between You and the third party.
3.3. You have the authority to and do grant us the right to host, use, process, display and transmit Your Content to provide the Services pursuant to and in accordance with this Agreement and Your order. You have sole responsibility for the accuracy, quality, integrity, legality, reliability, and appropriateness of Your Content, and for obtaining all rights related to Your Content required by Oracle to perform the Services.
3.4. Except as permitted by this Agreement or Your order, You may not, and may not cause or permit others to: (a) modify, make derivative works of, disassemble, decompile, reverse engineer, reproduce, republish, download, or copy any part of the Services (including data structures or similar materials produced by programs); (b) access or use the Services to build or support, directly or indirectly, products or services competitive to Oracle; or (c) license, sell, transfer, assign, distribute, outsource, permit timesharing or service bureau use of, commercially exploit, or make available the Services to any third party.
4. NONDISCLOSURE
4.1. By virtue of this Agreement, the parties may disclose to each other information that is confidential (“Confidential Information”). Confidential Information shall be limited to the terms and pricing under this Agreement and Your order, Your Content residing in the Services, and all information clearly identified as confidential at the time of disclosure.
4.2. A party’s Confidential Information shall not include information that: (a) is or becomes a part of the public domain through no act or omission of the other party; (b) was in the other party’s lawful possession prior to the disclosure and had not been obtained by the other party either directly or indirectly from the disclosing party; (c) is lawfully disclosed to the other party by a third party without restriction on the disclosure; or (d) is independently developed by the other party.
4.3 Subject to applicable law, each party agrees not to disclose the other party’s Confidential Information to any third party. Each party may disclose Confidential Information only to those employees, agents or subcontractors who are required to protect it against unauthorized disclosure in a manner no less protective than required under this Agreement, and each party may disclose the other party’s Confidential Information in any legal proceeding or to a governmental entity as required by law.
4.4 The parties acknowledge and agree that You and this Agreement are subject to applicable freedom of information or open records laws. Should You receive a request under such law for Oracle’s Confidential Information, You agree to give Oracle adequate prior notice of the request and before releasing Oracle’s Confidential Information to a third party, in order to allow Oracle sufficient time to seek injunctive relief or other relief against such disclosure.
5. PROTECTION OF YOUR CONTENT
5.1. In order to protect Your Content provided to Oracle as part of the provision of the Services, Oracle will comply with the applicable administrative, physical, technical and other safeguards, and other applicable aspects of system and content management, available at https://www.oracle.com/contracts/cloud-services.
5.2. To the extent Your Content includes Personal Information (as that term is defined in the applicable data privacy policies and the Data Processing Agreement (as defined below)), Oracle will furthermore comply with the following:
a. the relevant Oracle privacy policies applicable to the Services, available at http://www.oracle.com/us/legal/privacy/overview/index.html; and b. the applicable version of the Data Processing Agreement for Oracle Services (the “Data Processing Agreement”), unless stated otherwise in Your order. The version of the Data Processing Agreement applicable to Your order (i) is available at https://www.oracle.com/contracts/cloud-services and is incorporated herein by reference, and (ii) will remain in force during the Services Period of Your order. In the event of any conflict between the terms of the Data Processing Agreement and the terms of the Service Specifications (including any applicable Oracle privacy policies), the terms of the Data Processing Agreement shall take precedence.
5.3. Without prejudice to Sections 5.1 and 5.2 above, You are responsible for (a) any required notices, consents and/or authorizations related to Your provision of, and our processing of, Your Content (including any Personal Information) as part of the Services, (b) any security vulnerabilities, and the consequences of such vulnerabilities, Packet Page. 1860
3 arising from Your Content, including any viruses, Trojan horses, worms or other harmful programming routines contained in Your Content, and (c) any use by You or Your Users of the Services in a manner that is inconsistent with the terms of this Agreement and/or Your order. To the extent You disclose or transmit Your Content to a third party, we are no longer responsible for the security or confidentiality of such content outside of Oracle’s control.
5.4. Unless otherwise specified in Your order (including in the Service Specifications), Your Content may not include any data that imposes specific data security, data protection, or regulatory obligations on Oracle in addition to or different from those specified in the Data Processing Agreement, Service Specifications or this Agreement. If Your Content includes any of the foregoing data (e.g., certain regulated health or payment card information), Oracle will process such data only pursuant to the terms of Your order, the Data Processing Agreement, Service Specifications and this Agreement. You are responsible for complying with Your specific regulatory, legal or data security obligations which may apply to such data. If available for the Services, You may purchase additional services from us (e.g., Oracle Payment Card Industry Compliance Services) designed to address specific data security, data protection or regulatory requirements applicable to such data.
6. WARRANTIES, DISCLAIMERS AND EXCLUSIVE REMEDIES
6.1. Each party represents that it has validly entered into this Agreement and that it has the power and authority to do so. We warrant that during the Services Period we will perform the Services using commercially reasonable care and skill and in all material respects as described in the Service Specifications (the “Services Warranty”). If the Services provided to You were not performed as warranted, You must promptly provide us with a written notice that describes the deficiency in the Services (including, as applicable, the service request number notifying us of the deficiency in the Services).
6.2. WE DO NOT WARRANT THAT THE SERVICES WILL BE PERFORMED ERROR-FREE OR
UNINTERRUPTED, THAT WE WILL CORRECT ALL SERVICES ERRORS, OR THAT THE SERVICES WILL MEET YOUR REQUIREMENTS OR EXPECTATIONS. WE ARE NOT RESPONSIBLE FOR ANY ISSUES
RELATED TO THE PERFORMANCE, OPERATION OR SECURITY OF THE SERVICES THAT ARISE FROM YOUR CONTENT OR THIRD PARTY CONTENT OR SERVICES PROVIDED BY THIRD PARTIES.
FOR ANY BREACH OF THE SERVICES WARRANTY, YOUR EXCLUSIVE REMEDY AND OUR ENTIRE
LIABILITY SHALL BE THE CORRECTION OF THE DEFICIENT SERVICES THAT CAUSED THE BREACH OF
WARRANTY, OR, IF WE CANNOT SUBSTANTIALLY CORRECT THE DEFICIENCY IN A COMMERCIALLY
REASONABLE MANNER, YOU MAY END THE DEFICIENT SERVICES AND WE WILL REFUND TO YOU THE
FEES PAID FOR THE DEFICIENT SERVICES FOR THE PERIOD OF TIME DURING WHICH THE SERVICES WERE DEFICIENT.
6.3. TO THE EXTENT NOT PROHIBITED BY LAW, THESE WARRANTIES ARE EXCLUSIVE AND THERE ARE
NO OTHER EXPRESS OR IMPLIED WARRANTIES OR CONDITIONS, INCLUDING FOR SOFTWARE,
HARDWARE, SYSTEMS, NETWORKS OR ENVIRONMENTS OR FOR MERCHANTABILITY, SATISFACTORY QUALITY AND FITNESS FOR A PARTICULAR PURPOSE.
7. LIMITATION OF LIABILITY
7.1. IN NO EVENT WILL EITHER PARTY OR ITS AFFILIATES BE LIABLE FOR ANY INDIRECT,
CONSEQUENTIAL, INCIDENTAL, SPECIAL, PUNITIVE, OR EXEMPLARY DAMAGES, OR ANY LOSS OF
REVENUE, PROFITS (EXCLUDING FEES UNDER THIS AGREEMENT), SALES, DATA, DATA USE, GOODWILL, OR REPUTATION.
7.2. EXCEPT FOR LOSSES AND DAMAGES RESULTING FROM BREACHES OF CONFIDENTIALITY, REFUSAL
OF SERVICES, WILLFUL MISCONDUCT, BODILY INJURY, DEATH, DAMAGE TO PHYSICAL PROPERTY,
VIOLATIONS OF APPLICABLE LAWS OR GROSS NEGLIGENCE, IN NO EVENT SHALL THE AGGREGATE
LIABILITY OF EITHER PARTY AND ITS AFFILIATES ARISING OUT OF OR RELATED TO THIS AGREEMENT OR ORDER, WHETHER IN CONTRACT, TORT, OR OTHERWISE, EXCEED TWO TIMES (2X) THE TOTAL COMPENSATION DUE TO ORACLE UNDER THIS AGREEMENT.
8. INDEMNIFICATION
8.1. Each Party shall indemnify, defend and hold the other Party harmless from all liabilities, costs and expenses (including, without limitation, attorneys fees) that such Party may suffer, sustain or become subject to as a result Packet Page. 1861
4 any misrepresentation or breach of warranty, covenant or agreement of the indemnifying Party contained herein or the indemnifying Party’s gross negligence or willful misconduct in performance of its obligations under this Agreement.
8.2. If a third party makes a claim against either You or Oracle (“Recipient,” which may refer to You or us, depending upon which party received the Material), that any information, design, specification, instruction, software, service, data, hardware, or material (collectively, “Material”) furnished by either You or us (“Provider,” which may refer to You or us depending on which party provided the Material) infringes the third party’s intellectual property rights, the Provider, at the Provider’s sole cost and expense, will, to the extent not prohibited by law, defend the Recipient against the claim and indemnify the Recipient from the damages, liabilities, costs and expenses awarded by the court to the third party claiming infringement or the settlement agreed to by the Provider, if the Recipient does the following:
a. notifies the Provider promptly in writing, not later than 30 days after the Recipient receives notice of the claim (or sooner if required by applicable law);
b. gives the Provider sole control of the defense and any settlement negotiations to the extent permitted by law; and
c. gives the Provider the information, authority and assistance the Provider needs to defend against or settle the claim.
If the Provider believes or it is determined that any of the Material may have violated a third party’s intellectual property rights, the Provider may choose to either modify the Material to be non-infringing (while substantially preserving its utility or functionality) or obtain a license to allow for continued use, or if these alternatives are not commercially reasonable, the Provider may end the license for, and require return of, the applicable Material and refund any unused, prepaid fees the Recipient may have paid to the other party for such Material. If such return materially affects our ability to meet obligations under the relevant order, then we may, upon 30 days’ prior written notice, terminate the order and refund any unused, prepaid fees for the Services under the terminated order. If such Material is third party technology and the terms of the third party license do not allow us to terminate the license, then we may, upon 30 days’ prior written notice, end the Services associated with such Material and refund any unused, prepaid fees for such Services.
The Provider will not indemnify the Recipient if the Recipient (a) alters the Material or uses it outside the scope of use identified in the Provider’s user or program documentation or Service Specifications, or (b) uses a version of the Material which has been superseded (and the Recipient has been notified in writing of the new version), if the infringement claim could have been avoided by using an unaltered current version of the Material which was made available to the Recipient. The Provider will not indemnify the Recipient to the extent that an infringement claim is based upon any material not furnished by the Provider. We will not indemnify You to the extent that an infringement claim is based on Third Party Content or any material from a third party portal or other external source that is accessible or made available to You within or by the Services (e.g., a social media post from a third party blog or forum, a third party web page accessed via a hyperlink, marketing data from third party data providers, etc.).
This Section 8.2 provides the parties’ exclusive remedy for any claims or damages under Section 8.2.
9. TERM AND TERMINATION
9.1. Unless this Agreement is terminated earlier, You may place orders governed by this Agreement for a period of five years from the date You accept this Agreement. Even if terminated, this Agreement will continue to govern any order for the duration of the Services Period of such order.
9.2. Services shall be provided for the Services Period defined in Your order. Notwithstanding anything to the contrary in the Service Specifications, the Services You order will not be automatically renewed.
9.3. We may suspend Your and/or Your Users’ access to, or use of, the Services if we believe that (a) there is a significant threat to the functionality, security, integrity, or availability of the Services or any content, data, or applications in the Services; (b) You or Your Users are accessing or using the Services to commit an illegal act; (c) there is a violation of the Acceptable Use Policy; or (d) You provided false account or payment information or Your digital payment method is refused. When reasonably practicable and lawfully permitted, we will provide You with advance notice of any such suspension. For Services with the applicable operational capability, Oracle will use reasonable efforts to limit any suspension only to the portion of the Services related to the issue causing suspension. We will use reasonable efforts to re-establish the Services promptly after we determine that the issue causing the suspension has been resolved. During any suspension period, we will make Your Content (as it existed Packet Page. 1862
5 on the suspension date) available to You. Any suspension under this Section shall not excuse You from Your payment obligations.
9.4. If either of us breaches a material term of this Agreement or any order and fails to correct the breach within 30 days of written specification of the breach (provided in accordance with Section 16.1 below), then the breaching party is in default and the non-breaching party may terminate (a) in the case of breach of any order, the order under which the breach occurred; or (b) in the case of breach of this Agreement, this Agreement and any orders that have been placed under this Agreement. If we terminate any orders as specified in the preceding sentence, You must pay within 30 days all amounts that have accrued prior to such termination, as well as all sums remaining unpaid for the terminated order(s) plus related taxes and expenses. Except for nonpayment of fees, the nonbreaching party may agree in its sole discretion to extend the 30 day period for so long as the breaching party continues reasonable efforts to cure the breach. You agree that if You are in default under this Agreement and/or Your order, You may not use those Services ordered.
9.5 You may terminate this Agreement at any time without cause by giving Oracle 30 days prior written notice of such termination. Termination of the Agreement will not affect orders that are outstanding at the time of termination. Those orders will be performed according to their terms as if this Agreement were still in full force and effect. However, those orders may not be renewed or extended subsequent to termination of this Agreement.
9.6 At the end of the Services Period, we will make Your Content (as it existed at the end of the Services Period) available for retrieval by You during a retrieval period specified in the Service Specifications. Following the retrieval period, and except as may be required by law, we will delete any of Your Content that remains in the Services. Our data deletion practices are described in more detail in the Service Specifications.
9.7 Provisions that survive termination or expiration of this Agreement are those relating to limitation of liability, indemnification, payment and others which by their nature are intended to survive.
10. THIRD PARTY CONTENT, SERVICES AND WEBSITES
10.1. The Services may enable You to link to, transfer Your Content or Third Party Content to, or otherwise access, third parties’ websites, platforms, content, products, services, and information (“Third Party Services”). Oracle does not control and is not responsible for Third Party Content or Third Party Services. You are solely responsible for complying with the terms of access and use of Third Party Services, and if Oracle accesses or uses any Third Party Services on Your behalf to facilitate performance of the Services, You are solely responsible for ensuring that such access and use, including through passwords, credentials or tokens issued or otherwise made available to You, is authorized by the terms of access and use for such services. If You transfer or cause the transfer of Your Content or Third Party Content from the Services to a Third Party Service or other location, that transfer constitutes a distribution by You and not by Oracle.
10.2. Any Third Party Content we make accessible is provided on an “as-is” and “as available” basis without any warranty of any kind. We disclaim all liabilities arising from or related to Third Party Content.
10.3. You acknowledge that: (a) the nature, type, quality and availability of Third Party Content may change at any time during the Services Period, and (b) features of the Services that interoperate with Third Party Services, such as FacebookTM, YouTubeTM and TwitterTM, etc., depend on the continuing availability of such third parties’ respective application programming interfaces (APIs). We may need to update, change or modify the Services under this Agreement as a result of a change in, or unavailability of, such Third Party Content, Third Party Services or APIs.
Any change to Third Party Content, Third Party Services or APIs, including their unavailability, during the Services Period does not affect Your obligations under this Agreement or the applicable order, and You will not be entitled to any refund, credit or other compensation due to any such changes.
11. SERVICE MONITORING, ANALYSES AND ORACLE-PROVIDED SOFTWARE
11.1. We continuously monitor the Services to facilitate Oracle’s operation of the Services; to help resolve Your service requests; to detect and address threats to the functionality, security, integrity, and availability of the Services as well as any content, data, or applications in the Services; and to detect and address illegal acts or violations of the Acceptable Use Policy. Oracle monitoring tools do not collect or store any of Your Content residing in the Services, except as needed for such purposes. Oracle does not monitor, and does not address issues with, non-Oracle software provided by You or any of Your Users that is stored in, or run on or through, the Services. Information collected by Oracle monitoring tools (excluding Your Content) may also be used to assist in managing Oracle’s Packet Page. 1863
6 product and service portfolio, to help Oracle address deficiencies in its product and service offerings, and for license management purposes.
11.2. We may (a) compile statistical and other information related to the performance, operation and use of the Services, and (b) use data from the Services in aggregated form for security and operations management, to create statistical analyses, and for research and development purposes (above clauses (a) and (b) are collectively referred to as “Service Analyses”). We retain all intellectual property rights in Service Analyses.
11.3. We may provide You with the ability to obtain certain Oracle-provided Software (as defined below) for use with the Services. Unless we specify that separate terms will apply to Oracle-provided Software, any Oracleprovided Software is provided as part of the Services and You have the non-exclusive, worldwide, limited right to use, and allow Your Users to use, such Oracle-provided Software, subject to the terms of this Agreement and Your order, solely to facilitate Your authorized use of the Services. Your right to use any Oracle-provided Software will terminate upon the earlier of our notice (by web posting or otherwise) or the end of the Services associated with the Oracle-provided Software. Your right to use any part of the Oracle-provided Software that is licensed under the separate terms is not restricted in any way by this Agreement.
12. HARDWARE DEVICES
The terms in this Section 12 (Hardware Devices) only apply to an order which includes a Hardware Device.
12.1. Your order may include a Hardware Device (as defined below), which You may use with the applicable Services as described in the Service Specifications. The terms of this Agreement and Your order (including those terms that refer to Services) govern Hardware Devices, the Operating System and Integrated Software (both as defined below), unless expressly stated otherwise in this Section 12, or if the terms by their nature would be inapplicable to Hardware Devices.
12.2. We provide a limited warranty for Hardware Devices as described in the Oracle Hardware Warranty available at http://www.oracle.com/contracts/hardware. Any changes to the Oracle Hardware Warranty will not apply to Hardware Devices ordered prior to such change.
12.3. We provide technical support services for Hardware Devices as described in the Service Specifications and/or Oracle’s Hardware and Systems Support Policies in effect at the time the technical support services are provided (available at http://www.oracle.com/contracts/hardware), as applicable.
12.4. With respect to our indemnification for Hardware Devices under Section 8, notwithstanding the provisions of Section 8.2, if we believe or it is determined that the Hardware Device (or portion thereof) may have violated a third party’s intellectual property rights, we may choose to either replace or modify the Hardware Device (or portion thereof) to be non-infringing (while substantially preserving its utility or functionality) or obtain a right to allow for continued use, or if these alternatives are not commercially reasonable, we may remove the applicable Hardware Device (or portion thereof) and refund the net book value for the Hardware Device.
12.5. “Hardware Device” is defined as hardware that meets both of the following requirements: (a) the hardware is managed by or used as part of the Services, and (b) the hardware is designated as a Hardware Device by Oracle. Title to Hardware Devices will transfer to You upon delivery to You unless otherwise specified in Your order.
12.6. “Operating System” refers to the software that manages the Hardware Device. You have the right to use the Operating System delivered with the Hardware Device (and any updates acquired through our technical support services) only as incorporated in, and as part of, the Hardware Device and subject to the terms of the license agreement(s) delivered with or on the Hardware Device. Current versions of the license agreements are located in the documentation for the Hardware Device.
12.7. “Integrated Software” refers to any software or programmable code that is embedded or integrated in a Hardware Device and enables the functionality of the Hardware Device. Integrated Software does not include and You do not have rights to (a) code or functionality for diagnostic, maintenance, repair or technical support services; or (b) separately licensed applications, development tools, or system management software or other code that is separately licensed by us or a third party. You have the limited, non-exclusive right to use Integrated Software with a Hardware Device (and any updates acquired through our technical support services) only as incorporated in, and as part of, the Hardware Device and subject to any terms delivered with or on the Hardware Device and/or in the applicable documentation.
Packet Page. 1864
7 12.8. We or our licensors retain all ownership and intellectual property rights in and to the Operating System and Integrated Software. The Hardware Device may contain or require the use of third party technology that is provided with or pre-installed on the Hardware Device. Third party technology is licensed under terms which we may provide to You (i) with or on the Hardware Device, (ii) in the applicable product documentation, (iii) in the readme files, or (iv) in the notice files. Your right to use this third party technology under separate license terms are not restricted in any way by this Agreement. We do not warrant or provide any technical support services for this third party technology.
12.9. The Operating System or Integrated Software may include separate works, identified in a readme file, notice file or the applicable documentation, which are licensed under open source or similar license terms; Your rights to use the Operating System and Integrated Software under such terms are not restricted in any way by this Agreement. The appropriate terms associated with these separate works can be found in the readme files, notice files or in the documentation accompanying the Operating System and Integrated Software. For software (i) that is part of the Operating System or Integrated Software and (ii) that You receive from us in binary form and (iii) that is licensed under an open source license that gives You the right to receive the source code for that binary, You may obtain a copy of the applicable source code from https://oss.oracle.com/sources/ or http://www.oracle.com/goto/opensourcecode. If the source code for the software was not provided to You with the binary, You may also receive a copy of the source code on physical media by submitting a written request pursuant to the instructions in the "Written Offer for Source Code" section of the latter website.
13. EXPORT
13.1. Export control and economic sanctions laws and regulations (“export laws”) of the United States and any other relevant local export laws apply to the Oracle Products and Services ordered under this Agreement. Such export laws govern use of the Oracle Products and Services (including technical data) and any Oracle products or services deliverables provided under this Agreement, and You and we each agree to comply with all such export laws (including “deemed export” and “deemed re-export” regulations). You agree that no data, information, software programs and/or materials resulting from the Oracle products or services (or direct product thereof) will be exported, directly or indirectly, in violation of these laws, or will be used for any purpose prohibited by these laws including, without limitation, nuclear, chemical, or biological weapons proliferation, or development of missile technology.
13.2. You acknowledge that the Services are designed with capabilities for You and Your Users to access the Services without regard to geographic location and to transfer or otherwise move Your Content between the Services and other locations such as User workstations. You are solely responsible for the authorization and management of User accounts across geographic locations, as well as export control and geographic transfer of Your Content.
14. FORCE MAJEURE
Neither You nor we shall be responsible for failure or delay of performance if caused by: an act of war, hostility, or sabotage; act of God; pandemic; electrical, internet, or telecommunication outage that is not caused by the obligated party; government restrictions (including, without limitation, an embargo, economic sanction or the denial or cancelation of any export, import or other license); or other event outside the reasonable control of the obligated party. Both You and we will use reasonable efforts to mitigate the effect of a force majeure event. If such event continues for more than 30 days, either of You or we may cancel unperformed Services and affected orders upon written agreement. This Section does not excuse either party’s obligation to take reasonable steps to follow its normal disaster recovery procedures or Your obligation to pay for the Services.
15. UCITA
The Uniform Computer Information Transactions Act does not apply to this Agreement or to orders placed under it.
Packet Page. 1865
8 16. NOTICE
16.1. Any notice required under this Agreement shall be provided to the other party in writing. If You have a legal dispute with us or if You wish to provide a notice under the Indemnification Section of this Agreement, or if You become subject to insolvency or other similar legal proceedings, You will promptly send written notice to: Oracle America, Inc., 500 Oracle Parkway Redwood Shores, CA 94065, Attention: General Counsel, Legal Department.
16.2. We may give notices applicable to our Services customers by means of a general notice on the Oracle portal for the Services, and notices specific to You (a) by electronic mail to Your e-mail address on record in our account information or (b) by written communication sent by first class mail or pre-paid post to Your address on record in our account information.
16.3. You may register to receive notice of updates to the Oracle Cloud Hosting and Delivery Policies and the Data Processing Agreement (and certain other Service Specifications made available by Oracle) at http://www.oracle.com/contracts/cloud-services.
17. ASSIGNMENT
You may not assign this Agreement or give or transfer the Services or any interest in the Services to another individual or entity.
18. OTHER
18.1. We are an independent contractor, and each party agrees that no partnership, joint venture, or agency relationship exists between the parties.
18.2. Our business partners and other third parties, including any third parties with which the Services have integrations or that are retained by You to provide consulting services, implementation services or applications that interact with the Services, are independent of Oracle and are not Oracle’s agents. Even if recommended by us, we are not liable for, bound by, or responsible for any problems with the Services or Your Content arising due to any acts or omissions of any business partner or third party, unless the business partner or third party is providing Services as our subcontractor or is otherwise engaged by Oracle in connection with performance of its obligations under this Agreement, and, if so, then only to the same extent as we would be responsible for our resources under this Agreement.
18.3. If any term of this Agreement is found to be invalid or unenforceable, the remaining provisions will remain effective and such term shall be replaced with another term consistent with the purpose and intent of this Agreement.
18.4. Except for actions for nonpayment or breach of Oracle’s proprietary rights, no action, regardless of form, arising out of or relating to this Agreement may be brought by either party more than two years after the termination or expiration of the Agreement.
18.5. Prior to entering into an order governed by this Agreement, You are solely responsible for determining whether the Services meet Your technical, business or regulatory requirements. Oracle will cooperate with Your efforts to determine whether use of the standard Services are consistent with those requirements. Additional fees may apply to any additional work performed by Oracle or changes to the Services. You remain solely responsible for Your regulatory compliance in connection with Your use of the Services.
19. ENTIRE AGREEMENT
19.1. You agree that this Agreement and the information which is incorporated into this Agreement by written reference (including reference to information contained in a URL or referenced policy), together with the applicable order, is the complete agreement for the Oracle Products and Services ordered by You and supersedes all prior or contemporaneous agreements, proposals, negotiations, demonstrations or representations, written or oral, regarding such Oracle Products and Services.
19.2. It is expressly agreed that the terms of this Agreement and any Oracle order shall supersede the terms in any purchase order, procurement internet portal, or other similar non-Oracle document, and no terms included in any such purchase order, portal, or other non-Oracle document shall apply to Your order. In the event of any Packet Page. 1866
9 inconsistencies between the terms of an order and the Agreement, the order shall take precedence; however, unless expressly stated otherwise in an order, the terms of the Data Processing Agreement shall take precedence over any inconsistent terms in an order. This Agreement and orders hereunder may not be modified and the rights and restrictions may not be altered or waived except in a writing signed or accepted online by authorized representatives of You and of Oracle; however, Oracle may update the Service Specifications, including by posting updated documents on Oracle’s websites. No third party beneficiary relationships are created by this Agreement.
20. AGREEMENT DEFINITIONS
20.1. “Oracle-provided Software” means any software agent, application or tool that Oracle makes available to You specifically for purposes of facilitating Your access to, operation of, and/or use with, the Services.
20.2. “Program Documentation” refers to the user manuals, help windows, readme files for the Services and any Oracle-provided Software. You may access the documentation online at http://oracle.com/contracts or such other address specified by Oracle.
20.3. “Service Specifications” means the following documents, as applicable to the Services under Your order:
(a) the Oracle Cloud Hosting and Delivery Policies, the Program Documentation, the Oracle service descriptions, and the Oracle Corporate Security Practices; (b) Oracle’s privacy policies; and (c) any other Oracle documents that are referenced in or incorporated into Your order. The following do not apply to any non-Cloud Oracle service offerings acquired under Your order, such as professional services: the Oracle Cloud Hosting and Delivery Policies and Program Documentation. The following do not apply to any Oracle-provided Software: the Oracle Cloud Hosting and Delivery Policies.
20.4. “Third Party Content” means all software, data, text, images, audio, video, photographs and other content and material, in any format, that are obtained or derived from third party sources outside of Oracle that You may access through, within, or in conjunction with Your use of, the Services. Examples of Third Party Content include data feeds from social network services, rss feeds from blog posts, Oracle data marketplaces and libraries, dictionaries, and marketing data. Third Party Content includes third-party sourced materials accessed or obtained by Your use of the Services or any Oracle-provided tools.
20.5. “Users” means, for Services, those employees, contractors, and end users, as applicable, authorized by You or on Your behalf to use the Services in accordance with this Agreement and Your order. For Services that are specifically designed to allow Your clients, agents, customers, suppliers or other third parties to access the Services to interact with You, such third parties will be considered “Users” subject to the terms of this Agreement and Your order.
20.6. “Your Content” means all software, data (including Personal Information), text, images, audio, video, photographs, non-Oracle or third party applications, and other content and material, in any format, provided by You or any of Your Users that is stored in, or run on or through, the Services. Services under this Agreement, Oracle-provided Software, other Oracle Products and Services, and Oracle intellectual property, and all derivative works thereof, do not fall within the meaning of the term “Your Content.” Your Content includes any Third Party Content that is brought by You into the Services by Your use of the Services or any Oracle-provided tools.
21. CLOUD SERVICES AGREEMENT EFFECTIVE DATE
The Effective Date of this Cloud Services Agreement is ______________________ . (DATE TO BE
COMPLETED BY ORACLE)
THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK. THE SIGNATURE BLOCK FOR THIS AGREEMENT FOLLOWS IMMEDIATELY ON THE NEXT PAGE.
Packet Page. 1867
10 Company Name: City of San Bernardino Oracle America, Inc.
Authorized Signature: ________________________________ Authorized Signature:
Name: ____________________________________________ Name: _____ Title: ____________________________________________ Title: ______ Signature Date: ____________________________________ Signature Date:
Agreement No.: US-CSA-CPQ-3234002
Packet Page. 1868
1 PROFESSIONAL SERVICES AGREEMENT
BETWEEN THE CITY OF SAN BERNARDINO
AND ONSITE COMPUTING INC
This Agreement is made and entered into as of November 20, 2024, by and between the City of San Bernardino, a charter city and municipal corporation organized and operating under the laws of the State of California with its principal place of business at Vanir Tower, 290 North D Street, San Bernardino, CA 92401 (“City”), and Onsite Computing Inc, a Corporation with its principal place of business at 495 E Rincon St #206 Corona CA 92879 (hereinafter referred to as “Consultant”). City and Consultant are hereinafter sometimes referred to individually as “Party” and collectively as the “Parties.”
RECITALS
A. City is a public agency of the State of California and is in need of professional services for the following project:
Enterprise Resource Planning Data Conversion (hereinafter referred to as “the Project”).
B. Consultant is duly licensed and has the necessary qualifications to provide such services.
C. The Parties desire by this Agreement to establish the terms for City to retain Consultant to provide the services described herein.
NOW, THEREFORE, IT IS AGREED AS FOLLOWS:
AGREEMENT
1. Incorporation of Recitals. The recitals above are true and correct and are hereby incorporated herein by this reference.
2. Services. Consultant shall provide the City with the services described in the Scope of Services attached hereto as Exhibit A.
3. Professional Practices. All professional services to be provided by Consultant pursuant to this Agreement shall be provided by personnel identified in their proposal. Consultant warrants that Consultant is familiar with all laws that may affect its performance of this Agreement and shall advise City of any changes in any laws that may affect Consultant’s performance of this Agreement. Consultant further represents that no City employee will provide any services under this Agreement.
4. Compensation.
a. Subject to paragraph 4(b) below, the City shall pay for such services in accordance with the Schedule of Charges set forth in Exhibit “A.” Packet Page. 1869
2 b. In no event shall the total amount paid for services rendered by Consultant under this Agreement exceed the sum of $775,500.00 ($705,000.00 plus a 10% contingency). This amount is to cover all related costs, and the City will not pay any additional fees for printing expenses. Consultant may submit invoices to City for approval. Said invoice shall be based on the total of all Consultant’s services which have been completed to City’s sole satisfaction. City shall pay Consultant’s invoice within fortyfive (45) days from the date City receives said invoice. The invoice shall describe in detail the services performed and the associated time for completion. Any additional services approved and performed pursuant to this Agreement shall be designated as “Additional Services” and shall identify the number of the authorized change order, where applicable, on all invoices.
5. Additional Work. If changes in the work seem merited by Consultant or the City, and informal consultations with the other party indicate that a change is warranted, it shall be processed in the following manner: a letter outlining the changes shall be forwarded to the City by Consultant with a statement of estimated changes in fee or time schedule. An amendment to this Agreement shall be prepared by the City and executed by both Parties before performance of such services, or the City will not be required to pay for the changes in the scope of work. Such amendment shall not render ineffective or invalidate unaffected portions of this Agreement.
a. Adjustments. No retroactive price adjustments will be considered.
Additionally, no price increases will be permitted during the first year of this Agreement, unless agreed to by City and Consultant in writing.
6. Term. This Agreement shall commence on the Effective Date and continue through January 31, 2027, unless the Agreement is previously terminated as provided for herein (“Term”).
7. Maintenance of Records; Audits.
a. Records of Consultant’s services relating to this Agreement shall be maintained in accordance with generally recognized accounting principles and shall be made available to City for inspection and/or audit at mutually convenient times for a period of four (4) years from the Effective Date.
b. Books, documents, papers, accounting records, and other evidence pertaining to costs incurred shall be maintained by Consultant and made available at all reasonable times during the contract period and for four (4) years from the date of final payment under the contract for inspection by City.
8. Time of Performance. Consultant shall perform its services in a prompt and timely manner and shall commence performance upon receipt of written notice from the City to proceed. Consultant shall complete the services required hereunder within Term.
9. Delays in Performance.
Packet Page. 1870
3 a. Neither City 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 the Consultant’s performance and is one or more of the following: (1) Acts of God or other natural disasters occurring at the project site; (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. b. 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. Delays shall not entitle Consultant to any additional compensation regardless of the Party responsible for the delay.
c. Notwithstanding the foregoing, the City may still terminate this Agreement in accordance with the termination provisions of this Agreement.
10. Compliance with Law.
a. Consultant shall comply with all applicable laws, ordinances, codes and regulations of the federal, state and local government, including Cal/OSHA requirements.
b. If required, Consultant shall assist the City, as requested, in obtaining and maintaining all permits required of Consultant by federal, state and local regulatory agencies.
c. If applicable, Consultant is responsible for all costs of clean up and/ or removal of hazardous and toxic substances spilled as a result of his or her services or operations performed under this Agreement.
11. Standard of Care. Consultant’s services will be performed in accordance with generally accepted professional practices and principles and in a manner consistent with the level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions. Consultant’s performance shall conform in all material respects to the requirements of the Scope of Work
12. Conflicts of Interest. During the term of this Agreement, Consultant shall at all times maintain a duty of loyalty and a fiduciary duty to the City and shall not accept payment from or employment with any person or entity which will constitute a conflict of Packet Page. 1871
4 interest with the City.
13. City Business Certificate. Consultant shall, prior to execution of this Agreement, obtain and maintain during the term of this Agreement a valid business registration certificate from the City pursuant to Title 5 of the City’s Municipal Code and any and all other licenses, permits, qualifications, insurance, and approvals of whatever nature that are legally required of Consultant to practice his/her profession, skill, or business.
14. Assignment and Subconsultant. Consultant shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of the City, 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. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement. Nothing contained herein shall prevent Consultant from employing independent associates and subconsultants as Consultant may deem appropriate to assist in the performance of services hereunder.
15. Independent Consultant. Consultant is retained as an independent contractor and is not an employee of City. No employee or agent of Consultant shall become an employee of City. The work to be performed shall be in accordance with the work described in this Agreement, subject to such directions and amendments from City as herein provided. Any personnel performing the work governed by this Agreement on behalf of Consultant 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 under this Agreement and as required by law.
Consultant shall be responsible for all reports and obligations respecting such personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, and workers’ compensation insurance.
16. Insurance. Consultant shall not commence work for the City until it has provided evidence satisfactory to the City it has secured all insurance required under this section. In addition, Consultant shall not allow any subcontractor to commence work on any subcontract until it has secured all insurance required under this section. a. Additional Insured
The City of San Bernardino, its officials, officers, employees, agents, and volunteers shall be named as additional insureds on Consultant’s and its subconsultants’ policies of commercial general liability and automobile liability insurance using the endorsements and forms specified herein or exact equivalents. b. Commercial General Liability
(i) The Consultant shall take out and maintain, during the performance of all work under this Agreement, in amounts not less than specified herein, Commercial General Liability Insurance, in a form and with insurance companies Packet Page. 1872
5 acceptable to the City.
(ii) Coverage for Commercial General Liability insurance shall be at least as broad as the following:
Insurance Services Office Commercial General Liability
coverage (Occurrence Form CG 00 01) or exact equivalent. (iii) Commercial General Liability Insurance must include coverage for the following:
(1) Bodily Injury and Property Damage
(2) Personal Injury/Advertising Injury
(3) Premises/Operations Liability
(4) Products/Completed Operations Liability
(5) Aggregate Limits that Apply per Project
(6) Explosion, Collapse and Underground (UCX)
exclusion deleted
(7) Contractual Liability with respect to this Contract (8) Broad Form Property Damage
(9) Independent Consultants Coverage
(iv) The policy shall contain no endorsements or provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for claims or suits by one insured against another; (3) products/completed operations liability; or (4) contain any other exclusion contrary to the Agreement.
(v) The policy shall give City, its elected and appointed officials, officers, employees, agents, and City-designated volunteers additional insured status using ISO endorsement forms CG 20 10 10 01 and 20 37 10 01, or endorsements providing the exact same coverage.
(vi) The general liability program may utilize either deductibles or provide coverage excess of a self-insured retention, subject to written approval by the City, and provided that such deductibles shall not apply to the City as an additional insured.
c. Automobile Liability
(i) At all times during the performance of the work under this Agreement, the Consultant shall maintain Automobile Liability Insurance for bodily injury and property damage including coverage for owned, non-owned and hired vehicles, in a form and with insurance companies acceptable to the City. (ii) Coverage for automobile liability insurance shall be at least as broad as Insurance Services Office Form Number CA 00 01 covering automobile liability (Coverage Symbol 1, any auto).
Packet Page. 1873
6 (iii) The policy shall give City, its elected and appointed officials, officers, employees, agents and City designated volunteers additional insured status. (iv) Subject to written approval by the City, the automobile liability program may utilize deductibles, provided that such deductibles shall not apply to the City as an additional insured, but not a self-insured retention. d. Workers’ Compensation/Employer’s Liability
(i) Consultant certifies that he/she is aware of the provisions of Section 3700 of the California Labor Code which requires every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and he/she will comply with such provisions before commencing work under this Agreement.
(ii) To the extent Consultant has employees at any time during the term of this Agreement, at all times during the performance of the work under this Agreement, the Consultant shall maintain full compensation insurance for all persons employed directly by him/her to carry out the work contemplated under this Agreement, all in accordance with the “Workers’ Compensation and Insurance Act,” Division IV of the Labor Code of the State of California and any acts amendatory thereof, and Employer’s Liability Coverage in amounts indicated herein. Consultant shall require all subconsultants to obtain and maintain, for the period required by this Agreement, workers’ compensation coverage of the same type and limits as specified in this section. e. Professional Liability (Errors and Omissions)
At all times during the performance of the work under this Agreement the Consultant shall maintain professional liability or Errors and Omissions insurance appropriate to its profession, in a form and with insurance companies acceptable to the City and in an amount indicated herein. This insurance shall be endorsed to include contractual liability applicable to this Agreement and shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the Consultant. “Covered Professional Services” as designated in the policy must specifically include work performed under this Agreement. The policy must “pay on behalf of” the insured and must include a provision establishing the insurer's duty to defend. f. Privacy/Network Security (Cyber)
At all times during the performance of the work under this Agreement, the Consultant shall maintain privacy/network security insurance for: (1) privacy breaches, (2) system breaches, (3) denial or loss of service, and the (4) introduction, implantation or spread of malicious software code, in a form and with insurance companies acceptable to the City.
g. Aviation and/or Drone Liability - Not Applicable
Packet Page. 1874
7 At all times during the performance of the work under this Agreement, the Consultant shall maintain Aviation and/or Drone Liability insurance for bodily injury and property damage, in a form and with insurance companies acceptable to the City. h. Minimum Policy Limits Required
(i) The following insurance limits are required for the Agreement:
Combined Single Limit
Commercial General Liability $2,000,000 per occurrence/$4,000,000 aggregate for bodily injury, personal
injury, and property damage
Automobile Liability $1,000,000 per occurrence for bodily injury and property damage
Employer’s Liability $1,000,000 per occurrence
Professional Liability $1,000,000 per claim and aggregate (errors and omissions)
Cyber Liability $1,000,000 per occurrence and
aggregate
Aviation and/or Drone Liability $1,000,000 per occurrence limit Not Applicable
(ii) Defense costs shall be payable in addition to the limits. (iii) Requirements of specific coverage or 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. Any available coverage shall be provided to the parties required to be named as Additional Insured pursuant to this Agreement.
i. Evidence Required
Prior to execution of the Agreement, the Consultant shall file with the City evidence of insurance from an insurer or insurers certifying to the coverage of all insurance required herein. Such evidence shall include original copies of the ISO CG 00 01 (or insurer’s equivalent) signed by the insurer’s representative and Certificate of Insurance (Acord Form 25-S or equivalent), together with required endorsements. All evidence of insurance shall be signed by a properly authorized officer, agent, or qualified representative of the insurer and shall certify the names of the insured, any additional Packet Page. 1875
8 insureds, where appropriate, the type and amount of the insurance, the location and operations to which the insurance applies, and the expiration date of such insurance. j. Policy Provisions Required
(i) Consultant shall provide the City at least thirty (30) days prior written notice of cancellation of any policy required by this Agreement, except that the Consultant shall provide at least ten (10) days prior written notice of cancellation of any such policy due to non-payment of the premium. If any of the required coverage is cancelled or expires during the term of this Agreement, the Consultant shall deliver renewal certificate(s) including the General Liability Additional Insured Endorsement to the City at least ten (10) days prior to the effective date of cancellation or expiration. (ii) The Commercial General Liability Policy and Automobile Policy shall each contain a provision stating that Consultant’s policy is primary insurance and that any insurance, self-insurance or other coverage maintained by the City or any named insureds shall not be called upon to contribute to any loss. (iii) The retroactive date (if any) of each policy is to be no later than the effective date of this Agreement. Consultant shall maintain such coverage continuously for a period of at least three years after the completion of the work under this Agreement. Consultant shall purchase a one (1) year extended reporting period A) if the retroactive date is advanced past the effective date of this Agreement; B) if the policy is cancelled or not renewed; or C) if the policy is replaced by another claims-made policy with a retroactive date subsequent to the effective date of this Agreement. (iv) All required insurance coverages, except for the professional liability coverage, shall contain or be endorsed to provide waiver of subrogation in favor of the City, 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 City, and shall require similar written express waivers and insurance clauses from each of its subconsultants.
(v) 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 City and shall not preclude the City from taking such other actions available to the City under other provisions of the Agreement or law. k. Qualifying Insurers
(i) All policies required shall be issued by acceptable insurance companies, as determined by the City, which satisfy the following minimum requirements:
Packet Page. 1876
9 (1) 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 admitted to transact in the 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.
l Additional Insurance Provisions
(i) 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 City, 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. (ii) 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, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement. (iii) The City may require the Consultant to provide complete copies of all insurance policies in effect for the duration of the Project. (iv) Neither the City nor the City Council, nor any member of the City Council, nor any of the officials, officers, employees, agents or volunteers shall be personally responsible for any liability arising under or by virtue of this Agreement. m. Subconsultant Insurance Requirements. Consultant shall not allow any subcontractors or subconsultants to commence work on any subcontract until they have provided evidence satisfactory to the City that they have secured all insurance required under this section. Policies of commercial general liability insurance provided by such subcontractors or subconsultants shall be endorsed to name the City as an additional insured using ISO form CG 20 38 04 13 or an endorsement providing the exact same coverage. If requested by Consultant, City may approve different scopes or minimum limits of insurance for particular subcontractors or subconsultants.
17. Indemnification.
a. To the fullest extent permitted by law, Consultant shall defend (with counsel reasonably approved by the City), indemnify and hold the City, its elected and appointed officials, officers, employees, agents, and authorized volunteers free and harmless from any and all claims, demands, causes of action, suits, actions, proceedings, costs, expenses, liability, judgments, awards, decrees, settlements, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, (collectively, “Claims”) in any manner arising out of, pertaining to, or incident to any alleged acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, Packet Page. 1877
10 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, attorneys’ fees and other related costs and expenses. This indemnification clause excludes Claims arising from the sole negligence or willful misconduct of the City. Consultant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the City, the City Council, members of the City Council, its employees, or authorized volunteers. Consultant’s indemnification obligation shall survive the expiration or earlier termination of this Agreement. b. 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 the extent which the Claims arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant in the performance of the services or this Agreement, 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.
18. California Labor Code Requirements. Consultant is aware of the requirements of California Labor Code Sections 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 certain “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, Consultant agrees to fully comply with such Prevailing Wage Laws, if applicable. Consultant shall defend, indemnify and hold the City, its elected officials, officers, employees and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It shall be mandatory upon the Consultant and all subcontractors to comply with all California Labor Code provisions, which include but are not limited to prevailing wages (Labor Code Sections 1771, 1774 and 1775), employment of apprentices (Labor Code Section 1777.5), certified payroll records (Labor Code Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and 1815) and debarment of contractors and subcontractors (Labor Code Section 1777.1).
If the Services are being performed as part of an applicable “public works” or “maintenance” project, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Consultant and all subconsultants performing such Services must be registered with the Department of Industrial Relations. Consultant shall maintain registration for the duration of the Project and require the same of any subconsultants, as applicable. This Project may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements.
19. Verification of Employment Eligibility. By executing this Agreement, Packet Page. 1878
11 Consultant verifies 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.
20. Laws and Venue. This Agreement shall be interpreted in accordance with the laws of the State of California. If any action is brought to interpret or enforce any term of this Agreement, the action shall be brought in a state or federal court situated in the County of San Bernardino, State of California.
21. Termination or Abandonment
a. City has the right to terminate or abandon any portion or all of the work under this Agreement by giving ten (10) calendar days’ written notice to Consultant.
In such event, City shall be immediately given title and possession to all original field notes, drawings and specifications, written reports and other documents produced or developed for that portion of the work completed and/or being abandoned. City shall pay Consultant the reasonable value of services rendered for any portion of the work completed prior to termination. If said termination occurs prior to completion of any task for the Project for which a payment request has not been received, the charge for services performed during such task shall be the reasonable value of such services, based on an amount mutually agreed to by City and Consultant of the portion of such task completed but not paid prior to said termination. City shall not be liable for any costs other than the charges or portions thereof which are specified herein. Consultant shall not be entitled to payment for unperformed services and shall not be entitled to damages or compensation for termination of work.
b. Consultant may terminate its obligation to provide further services under this Agreement upon thirty (30) calendar days’ written notice to City only in the event of substantial failure by City to perform in accordance with the terms of this Agreement through no fault of Consultant.
22. Attorneys’ Fees. In the event that litigation is brought by any Party in connection with this Agreement, the prevailing Party shall be entitled to recover from the opposing Party all costs and expenses, including reasonable attorneys’ fees, incurred by the prevailing Party in the exercise of any of its rights or remedies hereunder or the enforcement of any of the terms, conditions, or provisions hereof. The costs, salary, and expenses of the City Attorney’s Office in enforcing this Agreement on behalf of the City shall be considered as “attorneys’ fees” for the purposes of this Agreement.
23. Responsibility for Errors. Consultant shall be responsible for its work and results under this Agreement. Consultant, when requested, shall furnish clarification and/or explanation as may be required by the City’s representative, regarding any services rendered under this Agreement at no additional cost to City. In the event that an error or omission attributable to Consultant’s professional services occurs, Consultant shall, at no cost to City, provide all other services necessary to rectify and correct the Packet Page. 1879
12 matter to the sole satisfaction of the City and to participate in any meeting required with regard to the correction.
24. Prohibited Employment. Consultant shall not employ any current employee of City to perform the work under this Agreement while this Agreement is in effect.
25. Costs. Each Party shall bear its own costs and fees incurred in the preparation and negotiation of this Agreement and in the performance of its obligations hereunder except as expressly provided herein.
26. Documents. Except as otherwise provided in “Termination or Abandonment,” above, all original field notes, written reports, Drawings and Specifications and other documents, produced or developed for the Project shall, upon payment in full for the services described in this Agreement, be furnished to and become the property of the City.
27. Organization. Consultant shall assign Frank Barbarossa as Project Manager. The Project Manager shall not be removed from the Project or reassigned without the prior written consent of the City.
28. Limitation of Agreement. This Agreement is limited to and includes only the work included in the Project described above.
29. Notice. Any notice or instrument required to be given or delivered by this Agreement may be given or delivered by depositing the same in any United States Post Office, certified mail, return receipt requested, postage prepaid, addressed to the following addresses and shall be effective upon receipt thereof:
CITY:
City of San Bernardino
Vanir Tower, 290 North D Street
San Bernardino, CA 92401
Attn: Rochelle Clayton, City Manager
With Copy To:
City of San Bernardino
Vanir Tower, 290 North D Street
San Bernardino, CA 92401
Attn: City Attorney
CONSULTANT:
Onsite Computing Inc
495 E Rincon St #206
Corona CA 92879
Attn: Frank Barbarossa, Founder &
CEO
30. Third Party Rights. Nothing in this Agreement shall be construed to give any rights or benefits to anyone other than the City and the Consultant.
31. Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and that it shall not discriminate against any employee or applicant Packet Page. 1880
13 for employment because of race, religion, color, national origin, ancestry, sex, age or other interests protected by the State or Federal Constitutions. 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.
32. Entire Agreement. This Agreement, including Exhibit “A,” represents the entire understanding of City and Consultant as to those matters contained herein, and supersedes and cancels any prior or contemporaneous oral or written understanding, promises or representations with respect to those matters covered hereunder. Each Party acknowledges that no representations, inducements, promises, or agreements have been made by any person which are not incorporated herein, and that any other agreements shall be void. This is an integrated Agreement.
33. Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid, illegal, or unenforceable for any reason, such determination shall not affect the validity or enforceability of the remaining terms and provisions hereof or of the offending provision in any other circumstance, and the remaining provisions of this Agreement shall remain in full force and effect.
34. Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the successors in interest, executors, administrators and assigns of each Party to this Agreement. However, Consultant shall not assign or transfer by operation of law or otherwise any or all of its rights, burdens, duties or obligations without the prior written consent of City. Any attempted assignment without such consent shall be invalid and void.
35. Non-Waiver. The delay or failure of either Party at any time to require performance or compliance by the other Party of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance.
No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the Party against whom enforcement of a waiver is sought. The waiver of any right or remedy with respect to any occurrence or event shall not be deemed a waiver of any right or remedy with respect to any other occurrence or event, nor shall any waiver constitute a continuing waiver.
36. Time of Essence. Time is of the essence for each and every provision of this Agreement.
37. Headings. Paragraphs and subparagraph headings contained in this Agreement are included solely for convenience and are not intended to modify, explain, or to be a full or accurate description of the content thereof and shall not in any way affect the meaning or interpretation of this Agreement.
38. Amendments. Only a writing executed by all of the Parties hereto or their respective successors and assigns may amend this Agreement.
Packet Page. 1881
14 39. City’s Right to Employ Other Consultants. City reserves its right to employ other consultants, including engineers, in connection with this Project or other projects.
40. Prohibited Interests. Consultant maintains and warrants that it has neither employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, 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. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no official, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.
41. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original. All counterparts shall be construed together and shall constitute one single Agreement.
42. Authority. The persons executing this Agreement on behalf of the Parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said Parties and that by doing so, the Parties hereto are formally bound to the provisions of this Agreement.
43. Electronic Signature. Each Party acknowledges and agrees that this Agreement may be executed by electronic or digital signature, which shall be considered as an original signature for all purposes and shall have the same force and effect as an original signature.
44. Disciplinary Actions in Phases for Non-Performance. Failure for Consultant to perform its obligations under this Agreement or comply with the Performance Indicators may result in disciplinary action as follows:
(i) Informal Warning (Written or Verbal). Consultant is given a warning in regards to non-performance. If a verbal warning is issued, it will be confirmed with an electronic correspondence to the Consultant.
(ii) Formal Written Warning. A formal written warning is issued to Consultant pursuant to Section 29 of this Agreement. Consultant must respond within 5 to 10 days of receipt of the formal warning. Upon response from the Consultant, Consultant shall be provided a reasonable time to make corrections to their performance.
This time period
(iii) Formal Penalty Issued. A penalty of 15% of the Consultant’s current invoice amount or annual contract amount is deducted for non-performance after previous warnings have been issued.
Packet Page. 1882
15 (iv) Termination of Contract. If the performance has not been corrected after all warnings and previous penalties have been exhausted, City may terminate the contract pursuant to Section 21 of this Agreement. [SIGNATURES ON FOLLOWING PAGE]
Packet Page. 1883
16 SIGNATURE PAGE FOR PROFESSIONAL SERVICES AGREEMENT
BETWEEN THE CITY OF SAN BERNARDINO
AND ONSITE COMPUTING INC
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.
CITY OF SAN BERNARDINO
APPROVED BY:
Rochelle Clayton
City Manager
ATTESTED BY:
Genoveva Rocha, CMC
City Clerk
APPROVED AS TO FORM:
Best Best & Krieger LLP
City Attorney
ONSITE COMPUTING INC
Signature
Name
Title
Packet Page. 1884
17 EXHIBIT A
SCOPE OF SERVICES
Current
Application
Conversion Estimated #
of Records
Years of
Retention
Requested
Tyler New World Chart of Accounts 19,652 N/A
Tyler New World General Ledger Account Balances 19,652 5 Years Tyler New World Budgeting (Approved Budgets) 18,710 5 Years Tyler New World Budgeting (Adopted Budgets) 18,710 5 Years Tyler New World Detail Level Budgets 25,495 5 Years
Tyler New World Open Project/Grants 255 N/A
Tyler New World Project/Grant Actuals 2,500 15 Years
Tyler New World Project/Grant Budgets 5,000 15
Tyler New World Open Purchase Orders 9,900 11 Years
Tyler New World Historical Purchase Orders 9,000 11 Years Tyler New World Attachments 99,000 11 Years
Tyler New World Customer Master Records (AR) 431 N/A
Tyler New World Open Receivables (AR) 30 N/A
Tyler New World Vendor Master Records (AP) 11,750 N/A
Tyler New World Vendor Address Records (AP) 50,000 N/A
Tyler New World Vendor 1099 Records (AP) 16,750 5 Years Tyler New World Accounts Payable Check History
(AP)
60,500 11 Years
Tyler New World Accounts Payable Invoices (AP) 154,000 11 Years Tyler New World Fixed Assets 1,927 N/A
Tyler New World Attachments 3,500 3 Years
Packet Page. 1885
18 Tyler New World Chart of Accounts 19,652 N/A
Tyler New World General Ledger Account Balances 19,652 5 Years Tyler New World Budgeting (Approved Budgets) 18,710 5 Years Tyler New World Budgeting (Adopted Budgets) 18,710 5 Years Tyler New World Detail Level Budgets 25,495 5 Years
Tyler New World Open Project/Grants 255 N/A
Tyler New World Project/Grant Actuals 2,500 15 Years
Tyler New World Project/Grant Budgets 5,000 15
Tyler New World Open Purchase Orders 9,900 11 Years
Tyler New World Historical Purchase Orders 9,000 11 Years Tyler New World Attachments 99,000 11 Years
Tyler New World Customer Master Records (AR) 431 N/A
Tyler New World Open Receivables (AR) 30 N/A
Tyler New World Vendor Master Records (AP) 11,750 N/A
Tyler New World Vendor Address Records (AP) 50,000 N/A
Tyler New World Vendor 1099 Records (AP) 16,750 5 Years Tyler New World Accounts Payable Check History
(AP)
60,500 11 Years
Tyler New World Accounts Payable Invoices (AP) 154,000 11 Years Tyler New World Fixed Assets 1,927 N/A
Tyler New World Attachments 3,500 3 Years
Packet Page. 1886
1 PROFESSIONAL SERVICES AGREEMENT
BETWEEN THE CITY OF SAN BERNARDINO
AND MV CHENG AND ASSOCIATES, INC.
This Agreement is made and entered into as of November 20, 2024, by and between the City of San Bernardino, a charter city and municipal corporation organized and operating under the laws of the State of California with its principal place of business at Vanir Tower, 290 North D Street, San Bernardino, CA 92401 (“City”), and MV Chend and Associate, Inc., a Corporation with its principal place of business at 102 W 24th Street, Upland, CA 91784 (hereinafter referred to as “Consultant”). City and Consultant are hereinafter sometimes referred to individually as “Party” and collectively as the “Parties.”
RECITALS
A. City is a public agency of the State of California and is in need of professional services for the following project:
Supplemental Staffing for Enterprise Resource Project Migration (hereinafter referred to as “the Project”).
B. Consultant is duly licensed and has the necessary qualifications to provide such services.
C. The Parties desire by this Agreement to establish the terms for City to retain Consultant to provide the services described herein.
NOW, THEREFORE, IT IS AGREED AS FOLLOWS:
AGREEMENT
1. Incorporation of Recitals. The recitals above are true and correct and are hereby incorporated herein by this reference.
2. Services. Consultant shall provide the City with the services described in the Scope of Services attached hereto as Exhibit A.
3. Professional Practices. All professional services to be provided by Consultant pursuant to this Agreement shall be provided by personnel identified in their proposal. Consultant warrants that Consultant is familiar with all laws that may affect its performance of this Agreement and shall advise City of any changes in any laws that may affect Consultant’s performance of this Agreement. Consultant further represents that no City employee will provide any services under this Agreement.
4. Compensation.
a. Subject to paragraph 4(b) below, the City shall pay for such services in accordance with the Schedule of Charges set forth in Exhibit “A.” Packet Page. 1887
2 b. In no event shall the total amount paid for services rendered by Consultant under this Agreement exceed the sum of $1,937,000.00. This amount is to cover all related costs, and the City will not pay any additional fees for printing expenses.
Consultant may submit invoices to City for approval. Said invoice shall be based on the total of all Consultant’s services which have been completed to City’s sole satisfaction.
City shall pay Consultant’s invoice within forty-five (45) days from the date City receives said invoice. The invoice shall describe in detail the services performed and the associated time for completion. Any additional services approved and performed pursuant to this Agreement shall be designated as “Additional Services” and shall identify the number of the authorized change order, where applicable, on all invoices.
5. Additional Work. If changes in the work seem merited by Consultant or the City, and informal consultations with the other party indicate that a change is warranted, it shall be processed in the following manner: a letter outlining the changes shall be forwarded to the City by Consultant with a statement of estimated changes in fee or time schedule. An amendment to this Agreement shall be prepared by the City and executed by both Parties before performance of such services, or the City will not be required to pay for the changes in the scope of work. Such amendment shall not render ineffective or invalidate unaffected portions of this Agreement.
a. Adjustments. No retroactive price adjustments will be considered.
Additionally, no price increases will be permitted during the first year of this Agreement, unless agreed to by City and Consultant in writing.
6. Term. This Agreement shall commence on the Effective Date and continue through January 31, 2027, unless the Agreement is previously terminated as provided for herein (“Term”).
7. Maintenance of Records; Audits.
a. Records of Consultant’s services relating to this Agreement shall be maintained in accordance with generally recognized accounting principles and shall be made available to City for inspection and/or audit at mutually convenient times for a period of four (4) years from the Effective Date.
b. Books, documents, papers, accounting records, and other evidence pertaining to costs incurred shall be maintained by Consultant and made available at all reasonable times during the contract period and for four (4) years from the date of final payment under the contract for inspection by City.
8. Time of Performance. Consultant shall perform its services in a prompt and timely manner and shall commence performance upon receipt of written notice from the City to proceed. Consultant shall complete the services required hereunder within Term.
9. Delays in Performance.
a. Neither City nor Consultant shall be considered in default of this Packet Page. 1888
3 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 the Consultant’s performance and is one or more of the following: (1) Acts of God or other natural disasters occurring at the project site; (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. b. 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. Delays shall not entitle Consultant to any additional compensation regardless of the Party responsible for the delay.
c. Notwithstanding the foregoing, the City may still terminate this Agreement in accordance with the termination provisions of this Agreement.
10. Compliance with Law.
a. Consultant shall comply with all applicable laws, ordinances, codes and regulations of the federal, state and local government, including Cal/OSHA requirements.
b. If required, Consultant shall assist the City, as requested, in obtaining and maintaining all permits required of Consultant by federal, state and local regulatory agencies.
c. If applicable, Consultant is responsible for all costs of clean up and/ or removal of hazardous and toxic substances spilled as a result of his or her services or operations performed under this Agreement.
11. Standard of Care. Consultant’s services will be performed in accordance with generally accepted professional practices and principles and in a manner consistent with the level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions. Consultant’s performance shall conform in all material respects to the requirements of the Scope of Work
12. Conflicts of Interest. During the term of this Agreement, Consultant shall at all times maintain a duty of loyalty and a fiduciary duty to the City and shall not accept payment from or employment with any person or entity which will constitute a conflict of interest with the City.
Packet Page. 1889
4 13. City Business Certificate. Consultant shall, prior to execution of this Agreement, obtain and maintain during the term of this Agreement a valid business registration certificate from the City pursuant to Title 5 of the City’s Municipal Code and any and all other licenses, permits, qualifications, insurance, and approvals of whatever nature that are legally required of Consultant to practice his/her profession, skill, or business.
14. Assignment and Subconsultant. Consultant shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of the City, 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. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement. Nothing contained herein shall prevent Consultant from employing independent associates and subconsultants as Consultant may deem appropriate to assist in the performance of services hereunder.
15. Independent Consultant. Consultant is retained as an independent contractor and is not an employee of City. No employee or agent of Consultant shall become an employee of City. The work to be performed shall be in accordance with the work described in this Agreement, subject to such directions and amendments from City as herein provided. Any personnel performing the work governed by this Agreement on behalf of Consultant 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 under this Agreement and as required by law.
Consultant shall be responsible for all reports and obligations respecting such personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, and workers’ compensation insurance.
16. Insurance. Consultant shall not commence work for the City until it has provided evidence satisfactory to the City it has secured all insurance required under this section. In addition, Consultant shall not allow any subcontractor to commence work on any subcontract until it has secured all insurance required under this section. a. Additional Insured
The City of San Bernardino, its officials, officers, employees, agents, and volunteers shall be named as additional insureds on Consultant’s and its subconsultants’ policies of commercial general liability and automobile liability insurance using the endorsements and forms specified herein or exact equivalents. b. Commercial General Liability
(i) The Consultant shall take out and maintain, during the performance of all work under this Agreement, in amounts not less than specified herein, Commercial General Liability Insurance, in a form and with insurance companies acceptable to the City.
Packet Page. 1890
5 (ii) Coverage for Commercial General Liability insurance shall be at least as broad as the following:
Insurance Services Office Commercial General Liability
coverage (Occurrence Form CG 00 01) or exact equivalent. (iii) Commercial General Liability Insurance must include coverage for the following:
(1) Bodily Injury and Property Damage
(2) Personal Injury/Advertising Injury
(3) Premises/Operations Liability
(4) Products/Completed Operations Liability
(5) Aggregate Limits that Apply per Project
(6) Explosion, Collapse and Underground (UCX)
exclusion deleted
(7) Contractual Liability with respect to this Contract (8) Broad Form Property Damage
(9) Independent Consultants Coverage
(iv) The policy shall contain no endorsements or provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for claims or suits by one insured against another; (3) products/completed operations liability; or (4) contain any other exclusion contrary to the Agreement.
(v) The policy shall give City, its elected and appointed officials, officers, employees, agents, and City-designated volunteers additional insured status using ISO endorsement forms CG 20 10 10 01 and 20 37 10 01, or endorsements providing the exact same coverage.
(vi) The general liability program may utilize either deductibles or provide coverage excess of a self-insured retention, subject to written approval by the City, and provided that such deductibles shall not apply to the City as an additional insured.
c. Automobile Liability
(i) At all times during the performance of the work under this Agreement, the Consultant shall maintain Automobile Liability Insurance for bodily injury and property damage including coverage for owned, non-owned and hired vehicles, in a form and with insurance companies acceptable to the City. (ii) Coverage for automobile liability insurance shall be at least as broad as Insurance Services Office Form Number CA 00 01 covering automobile liability (Coverage Symbol 1, any auto).
Packet Page. 1891
6 (iii) The policy shall give City, its elected and appointed officials, officers, employees, agents and City designated volunteers additional insured status. (iv) Subject to written approval by the City, the automobile liability program may utilize deductibles, provided that such deductibles shall not apply to the City as an additional insured, but not a self-insured retention. d. Workers’ Compensation/Employer’s Liability
(i) Consultant certifies that he/she is aware of the provisions of Section 3700 of the California Labor Code which requires every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and he/she will comply with such provisions before commencing work under this Agreement.
(ii) To the extent Consultant has employees at any time during the term of this Agreement, at all times during the performance of the work under this Agreement, the Consultant shall maintain full compensation insurance for all persons employed directly by him/her to carry out the work contemplated under this Agreement, all in accordance with the “Workers’ Compensation and Insurance Act,” Division IV of the Labor Code of the State of California and any acts amendatory thereof, and Employer’s Liability Coverage in amounts indicated herein. Consultant shall require all subconsultants to obtain and maintain, for the period required by this Agreement, workers’ compensation coverage of the same type and limits as specified in this section. e. Professional Liability (Errors and Omissions)
At all times during the performance of the work under this Agreement the Consultant shall maintain professional liability or Errors and Omissions insurance appropriate to its profession, in a form and with insurance companies acceptable to the City and in an amount indicated herein. This insurance shall be endorsed to include contractual liability applicable to this Agreement and shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the Consultant. “Covered Professional Services” as designated in the policy must specifically include work performed under this Agreement. The policy must “pay on behalf of” the insured and must include a provision establishing the insurer's duty to defend. f. Privacy/Network Security (Cyber)
At all times during the performance of the work under this Agreement, the Consultant shall maintain privacy/network security insurance for: (1) privacy breaches, (2) system breaches, (3) denial or loss of service, and the (4) introduction, implantation or spread of malicious software code, in a form and with insurance companies acceptable to the City.
g. Aviation and/or Drone Liability - Not Applicable
Packet Page. 1892
7 At all times during the performance of the work under this Agreement, the Consultant shall maintain Aviation and/or Drone Liability insurance for bodily injury and property damage, in a form and with insurance companies acceptable to the City. h. Minimum Policy Limits Required
(i) The following insurance limits are required for the Agreement:
Combined Single Limit
Commercial General Liability $2,000,000 per occurrence/$4,000,000 aggregate for bodily injury, personal
injury, and property damage
Automobile Liability $1,000,000 per occurrence for bodily injury and property damage
Employer’s Liability $1,000,000 per occurrence
Professional Liability $1,000,000 per claim and aggregate (errors and omissions)
Cyber Liability $1,000,000 per occurrence and
aggregate
Aviation and/or Drone Liability $1,000,000 per occurrence limit Not Applicable
(ii) Defense costs shall be payable in addition to the limits. (iii) Requirements of specific coverage or 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. Any available coverage shall be provided to the parties required to be named as Additional Insured pursuant to this Agreement.
i. Evidence Required
Prior to execution of the Agreement, the Consultant shall file with the City evidence of insurance from an insurer or insurers certifying to the coverage of all insurance required herein. Such evidence shall include original copies of the ISO CG 00 01 (or insurer’s equivalent) signed by the insurer’s representative and Certificate of Insurance (Acord Form 25-S or equivalent), together with required endorsements. All evidence of insurance shall be signed by a properly authorized officer, agent, or qualified representative of the insurer and shall certify the names of the insured, any additional Packet Page. 1893
8 insureds, where appropriate, the type and amount of the insurance, the location and operations to which the insurance applies, and the expiration date of such insurance. j. Policy Provisions Required
(i) Consultant shall provide the City at least thirty (30) days prior written notice of cancellation of any policy required by this Agreement, except that the Consultant shall provide at least ten (10) days prior written notice of cancellation of any such policy due to non-payment of the premium. If any of the required coverage is cancelled or expires during the term of this Agreement, the Consultant shall deliver renewal certificate(s) including the General Liability Additional Insured Endorsement to the City at least ten (10) days prior to the effective date of cancellation or expiration. (ii) The Commercial General Liability Policy and Automobile Policy shall each contain a provision stating that Consultant’s policy is primary insurance and that any insurance, self-insurance or other coverage maintained by the City or any named insureds shall not be called upon to contribute to any loss. (iii) The retroactive date (if any) of each policy is to be no later than the effective date of this Agreement. Consultant shall maintain such coverage continuously for a period of at least three years after the completion of the work under this Agreement. Consultant shall purchase a one (1) year extended reporting period A) if the retroactive date is advanced past the effective date of this Agreement; B) if the policy is cancelled or not renewed; or C) if the policy is replaced by another claims-made policy with a retroactive date subsequent to the effective date of this Agreement. (iv) All required insurance coverages, except for the professional liability coverage, shall contain or be endorsed to provide waiver of subrogation in favor of the City, 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 City, and shall require similar written express waivers and insurance clauses from each of its subconsultants.
(v) 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 City and shall not preclude the City from taking such other actions available to the City under other provisions of the Agreement or law. k. Qualifying Insurers
(i) All policies required shall be issued by acceptable insurance companies, as determined by the City, which satisfy the following minimum requirements:
Packet Page. 1894
9 (1) 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 admitted to transact in the 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.
l Additional Insurance Provisions
(i) 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 City, 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. (ii) 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, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement. (iii) The City may require the Consultant to provide complete copies of all insurance policies in effect for the duration of the Project. (iv) Neither the City nor the City Council, nor any member of the City Council, nor any of the officials, officers, employees, agents or volunteers shall be personally responsible for any liability arising under or by virtue of this Agreement. m. Subconsultant Insurance Requirements. Consultant shall not allow any subcontractors or subconsultants to commence work on any subcontract until they have provided evidence satisfactory to the City that they have secured all insurance required under this section. Policies of commercial general liability insurance provided by such subcontractors or subconsultants shall be endorsed to name the City as an additional insured using ISO form CG 20 38 04 13 or an endorsement providing the exact same coverage. If requested by Consultant, City may approve different scopes or minimum limits of insurance for particular subcontractors or subconsultants.
17. Indemnification.
a. To the fullest extent permitted by law, Consultant shall defend (with counsel reasonably approved by the City), indemnify and hold the City, its elected and appointed officials, officers, employees, agents, and authorized volunteers free and harmless from any and all claims, demands, causes of action, suits, actions, proceedings, costs, expenses, liability, judgments, awards, decrees, settlements, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, (collectively, “Claims”) in any manner arising out of, pertaining to, or incident to any alleged acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, Packet Page. 1895
10 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, attorneys’ fees and other related costs and expenses. This indemnification clause excludes Claims arising from the sole negligence or willful misconduct of the City. Consultant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the City, the City Council, members of the City Council, its employees, or authorized volunteers. Consultant’s indemnification obligation shall survive the expiration or earlier termination of this Agreement. b. 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 the extent which the Claims arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant in the performance of the services or this Agreement, 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.
18. California Labor Code Requirements. Consultant is aware of the requirements of California Labor Code Sections 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 certain “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, Consultant agrees to fully comply with such Prevailing Wage Laws, if applicable. Consultant shall defend, indemnify and hold the City, its elected officials, officers, employees and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It shall be mandatory upon the Consultant and all subcontractors to comply with all California Labor Code provisions, which include but are not limited to prevailing wages (Labor Code Sections 1771, 1774 and 1775), employment of apprentices (Labor Code Section 1777.5), certified payroll records (Labor Code Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and 1815) and debarment of contractors and subcontractors (Labor Code Section 1777.1).
If the Services are being performed as part of an applicable “public works” or “maintenance” project, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Consultant and all subconsultants performing such Services must be registered with the Department of Industrial Relations. Consultant shall maintain registration for the duration of the Project and require the same of any subconsultants, as applicable. This Project may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements.
19. Verification of Employment Eligibility. By executing this Agreement, Packet Page. 1896
11 Consultant verifies 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.
20. Laws and Venue. This Agreement shall be interpreted in accordance with the laws of the State of California. If any action is brought to interpret or enforce any term of this Agreement, the action shall be brought in a state or federal court situated in the County of San Bernardino, State of California.
21. Termination or Abandonment
a. City has the right to terminate or abandon any portion or all of the work under this Agreement by giving ten (10) calendar days’ written notice to Consultant.
In such event, City shall be immediately given title and possession to all original field notes, drawings and specifications, written reports and other documents produced or developed for that portion of the work completed and/or being abandoned. City shall pay Consultant the reasonable value of services rendered for any portion of the work completed prior to termination. If said termination occurs prior to completion of any task for the Project for which a payment request has not been received, the charge for services performed during such task shall be the reasonable value of such services, based on an amount mutually agreed to by City and Consultant of the portion of such task completed but not paid prior to said termination. City shall not be liable for any costs other than the charges or portions thereof which are specified herein. Consultant shall not be entitled to payment for unperformed services and shall not be entitled to damages or compensation for termination of work.
b. Consultant may terminate its obligation to provide further services under this Agreement upon thirty (30) calendar days’ written notice to City only in the event of substantial failure by City to perform in accordance with the terms of this Agreement through no fault of Consultant.
22. Attorneys’ Fees. In the event that litigation is brought by any Party in connection with this Agreement, the prevailing Party shall be entitled to recover from the opposing Party all costs and expenses, including reasonable attorneys’ fees, incurred by the prevailing Party in the exercise of any of its rights or remedies hereunder or the enforcement of any of the terms, conditions, or provisions hereof. The costs, salary, and expenses of the City Attorney’s Office in enforcing this Agreement on behalf of the City shall be considered as “attorneys’ fees” for the purposes of this Agreement.
23. Responsibility for Errors. Consultant shall be responsible for its work and results under this Agreement. Consultant, when requested, shall furnish clarification and/or explanation as may be required by the City’s representative, regarding any services rendered under this Agreement at no additional cost to City. In the event that an error or omission attributable to Consultant’s professional services occurs, Consultant shall, at no cost to City, provide all other services necessary to rectify and correct the Packet Page. 1897
12 matter to the sole satisfaction of the City and to participate in any meeting required with regard to the correction.
24. Prohibited Employment. Consultant shall not employ any current employee of City to perform the work under this Agreement while this Agreement is in effect.
25. Costs. Each Party shall bear its own costs and fees incurred in the preparation and negotiation of this Agreement and in the performance of its obligations hereunder except as expressly provided herein.
26. Documents. Except as otherwise provided in “Termination or Abandonment,” above, all original field notes, written reports, Drawings and Specifications and other documents, produced or developed for the Project shall, upon payment in full for the services described in this Agreement, be furnished to and become the property of the City.
27. Organization. Consultant shall assign Frank Barbarossa as Project Manager. The Project Manager shall not be removed from the Project or reassigned without the prior written consent of the City.
28. Limitation of Agreement. This Agreement is limited to and includes only the work included in the Project described above.
29. Notice. Any notice or instrument required to be given or delivered by this Agreement may be given or delivered by depositing the same in any United States Post Office, certified mail, return receipt requested, postage prepaid, addressed to the following addresses and shall be effective upon receipt thereof:
CITY:
City of San Bernardino
Vanir Tower, 290 North D Street
San Bernardino, CA 92401
Attn: Rochelle Clayton, City Manager
With Copy To:
City of San Bernardino
Vanir Tower, 290 North D Street
San Bernardino, CA 92401
Attn: City Attorney
CONSULTANT:
MV Cheng and Associates, Inc.
102 W 24th Street
Upland, CA 91784
Attn: Misty Cheng, President
30. Third Party Rights. Nothing in this Agreement shall be construed to give any rights or benefits to anyone other than the City and the Consultant.
31. Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and that it shall not discriminate against any employee or applicant Packet Page. 1898
13 for employment because of race, religion, color, national origin, ancestry, sex, age or other interests protected by the State or Federal Constitutions. 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.
32. Entire Agreement. This Agreement, including Exhibit “A,” represents the entire understanding of City and Consultant as to those matters contained herein, and supersedes and cancels any prior or contemporaneous oral or written understanding, promises or representations with respect to those matters covered hereunder. Each Party acknowledges that no representations, inducements, promises, or agreements have been made by any person which are not incorporated herein, and that any other agreements shall be void. This is an integrated Agreement.
33. Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid, illegal, or unenforceable for any reason, such determination shall not affect the validity or enforceability of the remaining terms and provisions hereof or of the offending provision in any other circumstance, and the remaining provisions of this Agreement shall remain in full force and effect.
34. Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the successors in interest, executors, administrators and assigns of each Party to this Agreement. However, Consultant shall not assign or transfer by operation of law or otherwise any or all of its rights, burdens, duties or obligations without the prior written consent of City. Any attempted assignment without such consent shall be invalid and void.
35. Non-Waiver. The delay or failure of either Party at any time to require performance or compliance by the other Party of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance.
No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the Party against whom enforcement of a waiver is sought. The waiver of any right or remedy with respect to any occurrence or event shall not be deemed a waiver of any right or remedy with respect to any other occurrence or event, nor shall any waiver constitute a continuing waiver.
36. Time of Essence. Time is of the essence for each and every provision of this Agreement.
37. Headings. Paragraphs and subparagraph headings contained in this Agreement are included solely for convenience and are not intended to modify, explain, or to be a full or accurate description of the content thereof and shall not in any way affect the meaning or interpretation of this Agreement.
38. Amendments. Only a writing executed by all of the Parties hereto or their respective successors and assigns may amend this Agreement.
Packet Page. 1899
14 39. City’s Right to Employ Other Consultants. City reserves its right to employ other consultants, including engineers, in connection with this Project or other projects.
40. Prohibited Interests. Consultant maintains and warrants that it has neither employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, 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. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no official, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.
41. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original. All counterparts shall be construed together and shall constitute one single Agreement.
42. Authority. The persons executing this Agreement on behalf of the Parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said Parties and that by doing so, the Parties hereto are formally bound to the provisions of this Agreement.
43. Electronic Signature. Each Party acknowledges and agrees that this Agreement may be executed by electronic or digital signature, which shall be considered as an original signature for all purposes and shall have the same force and effect as an original signature.
44. Disciplinary Actions in Phases for Non-Performance. Failure for Consultant to perform its obligations under this Agreement or comply with the Performance Indicators may result in disciplinary action as follows:
(i) Informal Warning (Written or Verbal). Consultant is given a warning in regards to non-performance. If a verbal warning is issued, it will be confirmed with an electronic correspondence to the Consultant.
(ii) Formal Written Warning. A formal written warning is issued to Consultant pursuant to Section 29 of this Agreement. Consultant must respond within 5 to 10 days of receipt of the formal warning. Upon response from the Consultant, Consultant shall be provided a reasonable time to make corrections to their performance.
This time period
(iii) Formal Penalty Issued. A penalty of 15% of the Consultant’s current invoice amount or annual contract amount is deducted for non-performance after previous warnings have been issued.
Packet Page. 1900
15 (iv) Termination of Contract. If the performance has not been corrected after all warnings and previous penalties have been exhausted, City may terminate the contract pursuant to Section 21 of this Agreement.
45. Hiring of Consultant’s associates and/or subcontractors. City agrees that each of Consultant’s associates and/or sub-contractors will only be able to obtain a direct contract or professional services agreement with the City, only after the expiration of the contract or professional services agreement with Consultant AND only after 2 years from the expiration date of the contract or professional services agreement with Consultant.
City agrees to hire one of Consultant’s associates and/or sub-contractors as a full time, permanent, fully benefited employee of the City, only after City has performed a recruitment AND the associate and/or sub-contractor has billed 960 hours to the City. City agrees to hire one of Consultant’s associates and/or sub-contractors as a part time, nonbenefited employee on the City’s payroll only after the associate and/or subcontractor has billed 960 hours to the City and the City pays a fee of 5% % of the associate and/or subcontractor’s annualized wages based on the hourly rate charged, to Consultant. If City employs Consultant’s associates and/or sub-contractors through another temporary service or staffing agency, City agrees to pay a fee of 10% of the associate and/or subcontractor’s annualized wages based on the hourly rate charged, to Consultant. [SIGNATURES ON FOLLOWING PAGE]
Packet Page. 1901
16 SIGNATURE PAGE FOR PROFESSIONAL SERVICES AGREEMENT
BETWEEN THE CITY OF SAN BERNARDINO
AND MV CHENG AND ASSOCIATES, INC.
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.
CITY OF SAN BERNARDINO
APPROVED BY:
Rochelle Clayton
City Manager
ATTESTED BY:
Genoveva Rocha, CMC
City Clerk
APPROVED AS TO FORM:
Best Best & Krieger LLP
City Attorney
MC CHENG AND ASSOCIATES, INC.
Signature
Name
Title
Packet Page. 1902
17 EXHIBIT A
SCOPE OF SERVICES
1. General Administrative Support
a. Assist in managing department correspondence, filing, and record keeping.
b. Perform data entry and management of records in alignment with City policies and procedures.
c. Coordinate scheduling and meeting arrangements for division heads and departmental teams.
d. Provide customer service support through phone, email, or in-person inquiries, ensuring timely responses.
2. Human Resources (HR) Support
a. Assist with the recruitment process by posting job listings, screening resumes, and scheduling interviews.
b. Support onboarding activities, including preparing new hire paperwork and conducting orientations.
c. Manage employee records and ensure compliance with document retention policies.
d. Assist with employee benefits administration and payroll coordination. e. Provide support in the management of performance evaluations and training programs.
3. Finance Support
a. Perform daily financial operations such as accounts payable, accounts receivable, and procurement processing.
b. Assist in maintaining financial records and preparing monthly, quarterly, and annual financial reports.
c. Provide support for budget monitoring and financial reconciliation tasks. d. Assist with grant management, including reporting and compliance tracking.
e. Support internal audit processes and external financial audit preparations.
4. Information Technology (IT) Support
a. Provide support with IT helpdesk services, including addressing user issues related to hardware, software, and network systems. b. Assist in managing user access, setting up new accounts, and configuring devices for new employees.
c. Support the IT team in maintaining software systems, updates, and troubleshooting.
d. Help track and manage IT assets and inventory, ensuring proper documentation.
e. Provide technical assistance for City staff during meetings or events involving technology use.
Packet Page. 1903
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 1 of 99
PURCHASING GUIDELINES AND
PROCEDURES
Purchasing Division
Precious Carter: Purchasing Division Manager
Contact: [email protected]
Effective Date: April 18, 2023
Packet Page. 1904
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 2 of 99 Table of Contents
SECTION 1: OVERVIEW
Introduction…………………………………………………………………………………………………………………3 Role of the Purchasing Department…………………………………………………………………………….3 Purchasing Values and Principles………………………………………………………………………………..4 Purpose of the Purchasing Manual……………………………………………………………………………..4 Goal………………………………………………………………………………………………………………………….4 -5 Why Policies and Procedures Matter.………………………………………………………………………….5 Code of Ethics………………………………………………………………………………………………………….6 -7 Conflict of Interest………………………………………………………………………………………………………7 Gratuities…………………………………………………………………………………………………………………….7 Definitions and Terms………………………………………………………………………………………….7 – 16 SECTION 2: POLICIES
Policy Definition…………………………………………………………………………………………………………16 The Purpose of Policies………………………………………………………………………………………………16 What Makes a Good Policy………………………………………………………………………………………..16 Purchasing Policy………………………………………………………………………………………………..17 – 41 Purchasing Card Policy (P-Card)………………………………………………………………………….42 – 52 Travel Authority and Expense Reimbursement…………………………………………………..53 - 61 SECTION 3: PROCEDURES
Procedure Definition………………………………………………………………………………………………….62 The Purpose of Procedures…………………………………………………………………………………………62 What Makes a Good Procedure………………………………………………………………………………….62 Exceptions to the Bidding Process……………………………………………………………………….62 - 63 The Purchasing Process………………………………………………………………………………………………64 Telephone Quotes…………………………………………………………………………………..………………….65 Example & Details of a simple quote………………………………………………………………………….66 Response Time from Purchasing Agents…………………………………………………………………….67 Purchasing Dept. Led Bids………………………………………………………………………………….68 - 74 Protest Form and Content…………………………………………………………………………………………..75 Vendor Setup Instructions…………………………………………………………………………………………..76 Purchase Orders (POs)………………………………………………………………………………………………..76 PO Change Order Process……………………………………………………………………………………………77 Furniture Order Process……………………………………………………………………………………………..78 Staples Office Supplies……………………………………………………………………………………………….78 Business Registration…………………………………..…………………………………………………………….78 City of San Bernardino Contract Processing Guidelines………………………………………79 – 87 Justification of Single/Sole Source Request…………………………………………………………88 - 89 City Clerk DocuSign Process…………………………..……………………………………………………….….90 How to Calculate Cost Avoidance/Cost Savings………………………………………………….91 – 92 Certificate of Insurance (COI)………………………………………………………………………………93 - 99 Packet Page. 1905
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 3 of 99 SECTION 1: OVERVIEW
Introduction
The Purchasing Division supports the City Manager, Mayor and City Council, City Departments and Agencies of the City of San Bernardino. The Purchasing Division provides quality goods and services in a timely manner and at the best value for the City.
The Role of the Purchasing Division
A Purchasing Division, also called a procurement division, supports operations by serving as the primary buyer of goods and services in a private sector company, government agency, educational institution, or any other type of organization.
The Purchasing Division serves as a compliance division for the purchasing needs of the City.
The Purchasing Division serves the needs of internal customers by procuring goods and services in a timely manner. The purchasing staff serves the organization’s financial wellness by seeking out and purchasing goods and services at the lowest price and best value.
The Purchasing Division offers procurement services, administers contracts, ensures contract compliance, and manages vendor relationships. Purchasing involves the acquisition of equipment, furnishings, supplies, maintenance services, construction services and contractual services. Purchasing assists departments and/or leads with preparing bid specifications; initiation formal quotes, proposals, and bids, conducting public bid openings, evaluating bids, awarding, and administrating contracts until the final completion or termination of a contract.
The values of the Purchasing Division include Customer Services, Partnership, Innovation, Ethical and Fair Conduct, Professional Values and Transparency. These values assist the Division in fulfilling departments’ obligations while upholding legal requirements and fiduciary responsibilities to the residents of the City of San Bernardino.
Packet Page. 1906
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 4 of 99 Purchasing Values and Principles
Transparency: Being Open and Honest
Accountability: taking responsibility of our work
Ethics: The rules, principles, and standards of deciding what is morally right or wrong when working.
Impartiality: Acting fairly and equitable in all our dealings These values and principles influence how suppliers, contractors and vendors interact with the City and they can affect the way in which the press, public, and other government partners view the City. The Purchasing Division acts as a neutral party in purchasing activities. The Purchasing Division doesn’t have an interest in who is awarded a bid. The City’s Purchasing Division presents the facts that are submitted within bid proposals.
Purpose of the Purchasing Manual
The purpose of the Purchasing Guideline and Procedure Manual is to streamline and detail all Purchasing procedures and guidelines. This Manual will assist all departments in following proper procurement procedures and how to have all proper approvals and signature authorities for procuring materials, services, and equipment.
Goal
All purchasing activities are to be conducted in an ethical manner. Department Directors, Division Managers, and all staff members must be aware of their ethical duty as servants of the public trust while spending public funds. The Purchasing Division will provide a purchasing process that implements and maintains the requirements of City Municipal Code 3.04.070.
A. The Purchasing Division has established a program for all Departments to conduct competitive bidding in the open market that will obtain the greatest advantage for the City of San Bernardino.
B. The Purchasing Division has established purchasing processes utilizing ethical standards.
C. The bidding processes established by the Purchasing Division attempts to obtain high quality goods and services at reasonable costs.
TRANSPARENCY ACCOUNTABILITY ETHICS IMPARTIALITY
Packet Page. 1907
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 5 of 99 D. In most instances purchases will be awarded to the lowest most responsible and responsive bidder based on the specifications of the sourcing effort. All services and materials that are released to the public for bidding purposes will adhere to the City of San Bernardino requirements.
E. The established bidding/purchasing processes promote and maintain good relationships with vendors. All City of San Bernardino staff shall conduct themselves in a professional manner, while promoting equal opportunity, fairness and courtesy in vendor relations.
Why Do Policies and Procedures Matter to the City?
Together, policies and procedures guide our city and reduce risk of liability. They promote consistency across the organization, both for employees and for customers.
Consistency builds a healthy reputation for our city over time, especially regarding employee touchpoints with customers. Another term for this is branding. Consistency builds and protects the City’s brand. Policies and procedures promote Consistency across our City, which builds and protects our city’s brand over time.
Policies can only positively impact our city if they’re followed. The responsibility is twofold:
o Leadership must communicate policies effectively.
o Employees must follow them.
Packet Page. 1908
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 6 of 99 Code of Ethics
A. Avoid Unfair Practices: By granting all competitive suppliers’ equal consideration in so far as State, Federal and City regulations require.
B. Conduct business in good faith: Demanding honesty and ethical practices from all participants in the purchasing process.
C. Decline personal gifts or gratuities: from present or potential suppliers since this can influence or appear to influence procurement decisions.
D. Avoid preferential treatment of certain vendors: Favoritism is the presence of bias or partiality for one vendor over another, or actions that may cause this perception.
E. Promote positive supplier/contractor relationships: By providing vendors with courteous, fair, and equal treatment.
F. Avoid controversy: make every reasonable effort to negotiate equitable and mutually agreeable settlements of controversies with supplier(s).
G. Avoid conflicts of interest: avoid involvement in any transaction/activities that could be considered to be a conflict between personal interest and the interests of the City.
H. Know and obey the letter and the spirit of the law: governing the purchasing function and remain alert to the legal ramifications of purchasing decisions.
I. Enhance proficiency: by acquiring and maintaining current technical knowledge and pursuing related educational opportunities and professional growth.
J. Do not engage in auctioning of bids or quotes: The disclosure of one vendor’s price to another to obtain a lower price is illegal. Prices and other information provided in the purchasing process must not be divulged until made public.
K. Do not engage in back door buying or selling: Unofficial, irregular, devious buying or selling, usually resulting from undue efforts to induce preference for a particular vendor with the intent of limiting competition. Also, evasive actions taken by the seller to circumvent the Purchasing Division and/or City rules/regulations by trying to influence or sell directly to the City’s internal user/customer department.
L. Avoid false information: Employees must take care to avoid providing inaccurate information to vendors during a solicitation process and must not conceal relationships with vendors or other inappropriate purchasing activity.
M. Do not help a bidder with a proposal: Coaching or providing solutions to prepare or improve a proposal is unethical.
N. Avoid leveling: A form of fraud in which a contract is promised to a specific vendor, even though a public solicitation is being pursued for the save of appearances by asking other vendors to submit a bid. This form of collusion is illegal and is a form of price fixing. Procurement professionals and other employees who use leveling will be subject to applicable disciplinary processes and any other investigation by law enforcement agencies.
O. Proper award of contracts and/or purchase orders: Awards should be made to the vendor who receives the highest rating meeting the solicitation requirements (best value). Formal solicitations should state the criteria upon which the evaluation will be based. Criteria may include ability to meet the City’s needs, past performance, references, warranties, services costs, or other measurable specifications that will Packet Page. 1909
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 7 of 99 eliminate the appearance of an arbitrary or capricious award. Evaluations must be conducted in accordance with criteria established in the solicitation document.
Conflict of Interest
No employee or officer shall purchase goods or services for the City if they have a financial interest in connection to the purchase. No officer or employee shall participate in procurement or make evaluations concerning the purchase of a good or service if they have a relationship or a financial interest concerning the individual or Business seeking a contract from the City. This action would violate Government Code 1090.
Gratuities
All staff and employees are prohibited from accepting gifts, money, kickbacks, rebated goods, or anything that may be construed as an unlawful consideration from individuals or businesses currently engaged in a contract or may be awarded a contract in the future. The offer of such gratuity will result in declaring the individual or business an irresponsible bidder and will prevent the individual or business from bidding.
***PLEASE NOTE*** It is important to keep in mind that, even when no unethical behavior is evident, the appearance of unethical behavior must be avoided. Such behavior erodes public trust and the reputation of the employees, their department, and the city.
Definitions and Terms:
Amendment: An agreed addition to, deletion from, correction, or modification of a document or contract
Annual Purchase Order:
Annual purchase orders are used for repetitively purchasing from the same vendor for items that are under the $10,000 threshold.
If an item is purchased that is $10,001 and $40,000, the annual purchase order cannot be used. Three quotes must be obtained.
The proper procurement process must be followed while using an annual purchase order.
Best and Final Offer (BFOA): This procedure is utilized during the evaluation process after the invitation to negotiate is released and negotiations and presentations have taken place.
Vendors are asked to submit a best and final offer based off this negotiation. Best and final offers, as the name suggest, are a vendor’s final proposal submittal. Typically, best and final offers may include price adjustments, modification to a vendor’s proposed solution and contract terms that differ from standard City contractual language. “Best Value” Procurement Procedure: A procurement method that emphasizes value over price. 2. An assessment of the return that can be achieved over the useful life of the item, e.g., the best combination of quality, service, time, and price.
Packet Page. 1910
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 8 of 99 For specialized goods, nonprofessional services, and non-public improvement work, the Purchasing Division may approve the use of the “Best Value” method.
The “Best Value” Method takes into consideration the lowest cost, qualified bidder with the quantity and scope needed. This method utilizes the request for proposal solicitation which includes specifications and evaluation criteria and allows the vendor to determine the way in which they will best meet the City’s needs. “Best Value” Procurement must be approved by the Purchasing Division prior to the solicitation of any proposals.
Quality and performance considerations will also be given, as well as price of goods, services, or non-public project implementations.
Criteria for “Best Value” Performance shall include but not be limited to the following:
a. Ability, Capacity, and skill of the vendor to provide the required goods and services of the City within the time period required.
b. Character, integrity, reputation, judgement, experience, and efficiency of the proposer. c. Quality of performance of work performed by the vendor from previous purchases. d. Ability of the proposer to provide future maintenance, repairs parts and services for the use of goods and services.
e. Performance of the vendor under past contracts with the City. f. Possession of required licenses and insurance documents, and endorsements for the City as needed to supply goods and services.
Bid: The response submitted by a bidder to an invitation for Bids (IFB).
Bid Bond: An insurance agreement, accompanied by a monetary commitment, by which a third party (the surety) accepts liability and guarantees that the bidder will not withdraw the bid.
Please Note: The purchasing agent may require a bid bond to accompany a bid. A bid bond should be no more than 10% of the total bid. The City Manager shall establish standards for determining under what circumstances a bid bond is required. City Council and the City Manager have the authority to require a performance bond if they find it necessary in order to protect the City and its interest.
Certificate of Insurance (COI): is a document from an insurer to show you have business insurance. This is also called a certificate of liability insurance or proof of insurance. With a COI, your clients can make sure you have the right insurance before they start working with you.
Please Note: Sample COI located at the end of Purchasing Guidelines and Procedures.
Change Order: A written modification or amendment to a contract. You can also look at phrases such as: Amendment, Modification, Authorized Deviation, Change Order Authority, Contract Modification.
Change Order Authority: The power of right of a public entity to unilaterally modify a contract without the express consent of the contractor.
Packet Page. 1911
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 9 of 99 Commodity: Something useful that can be turned into a commercial advantage; anything that can be purchased, processed, or resold. Examples – paper, furniture, fasteners.
Completion or Performance Bond: An instrument executed, subsequent to award, by successful bidder that protects that public entity from loss due to the bidder’s inability to complete the contract as agreed. A risk mechanism that secures the fulfillment of all contract requirements. May be referred to as a completion bond.
Consultant: A person or company that possesses unique qualifications that allow them to perform specialized advisory services usually for a fee.
Consultant Services Agreement (CSA) or Vendor Service Agreement (VSA): A written contract between the City and a vendor, stating all terms and conditions of a proposed transaction or service.
Contract: 1. An obligation, such as an accepted offer, between competent parties upon a legal consideration, to do or abstain from doing some act. The essential elements of a contract are an offer and an acceptance of that offer; the capacity of the parties to contract; consideration to support the contract; a mutual identity of consent; legality of purpose; and definiteness. 2. A legally binding promise, enforceable by law. 3. An agreement between parties with binding legal and moral force, usually exchanging goods or services for money or other considerations.
Cost Avoidance: Action that avoids incurring costs in the future, also known as “soft savings” and, therefore, not reflected in financial statements.
Cost Savings: A realized and measurable reduction in material, resource, or labor expense(s) associated with the production and delivery of an item or service. Primarily associated in the manufacturing of an item; interchangeably used to indicate a lower price paid by the buyer form what was previously paid.
Cooperative Procurement (Purchasing): 1. The action taken when two or more entities combine their requirements to obtain the advantages of volume purchases, including administrative savings and other benefits. 2. A variety of arrangements, whereby two or more public procurement entities purchase from the same supplier or multiple suppliers using a single Invitation for Bids (IFB) or Request for Proposals (RFP). Cooperative procurement efforts may result in contracts that other entities may “piggyback.” Department of Industrial Relations (DIR): A department of the State of California, which is a regulatory agency for various functions, including enforceability of SB854, which now requires public works contractors subject to prevailing wage requirements to register annually with the Department of Industrial Relations and pay and annual fee. Beginning effective September 1, 2021, the City of San Bernardino will accept public works bids from only those contractors and subcontractors who have complied with this requirement. Please refer to the DIR website:
Packet Page. 1912
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 10 of 99 https://www.dir.ca.gov/Public-Works/Contractor-Registration.html Disadvantage Business Enterprise (DBE): For profit small business concerns where socially and economically disadvantaged individuals own at least a 51% interest and also control management and daily business operations. Usually is certified as a DBE entity in the United States by the government of the State in which it is located.
Emergency: A sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services as defined by California Public Contract Code Section 1102.
Emergency Purchase: A purchase made as the result of an unexpected and urgent request in which health and safety, or the conservation of public resources is at risk. Usually, formal competitive bidding procedures are waived, modified, or simplified. The City’s Municipal Code allows for Emergency Purchases under §3.04.070.
Encumbrance: The appropriation of funds to purchase an item or service. To encumber funds means to set aside or commit funds for specified future expenditure. “Environmentally Preferable” (Per Calrecycle): the Procurement of goods and services that have a reduced impact on human health and the environment compared to competing products serving the same purpose. It is an essential part of the search for high quality products and services at competitive prices.
Formal Bid: A bid that must be submitted in a sealed format and in conformance with a prescribed format to be opened in public at a specified date and time.
This type of format is generally used in the Public Sector for Public Works bid projects, usually called a Request for Bid (RFB)
General Services: furnishing of labor, time, or effort by a contractor for non-professional services as the city may, from time to time, find necessary and proper for the functioning of the City. Examples include, but are not limited to, janitorial, uniform cleaning, maintenance and other services which do not require any unique skill, special background, or training.
Goods: any and all supplies, materials, articles, equipment, apparatus, vehicles, things, or property, other than real property, furnished to be used by the City.
Informal Bid/Proposal: A competitive bid, price quotation, or proposal for supplies or services that is conveyed by a letter, fax, e-mail, or other manner that does not require a formal sealed bid or proposal, public opening, or other formalities. Generally relegated to requirements that may be considered low value or fall under a stipulated price/cost threshold.
Packet Page. 1913
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 11 of 99 Please Note: For the City, most bids conducted in this manner would be considered “Formal” as long as the actual proposal(s) are not viewed until the bid deadline date and time.
Key Performance Indicators (KPIs): Refer to a set of quantifiable measurements used to gauge a company’s overall long-term performance. KPIs specifically help determine a company’s strategic, financial, and operational achievements, especially compared to those of other businesses within the same sector.
Local Vendor: According to the City’s Municipal Code §3.04.100 Local Bidders, “local” is defined as having “(1) fixed facilities with employees within the City of San Bernardino’s jurisdiction (a PO Box or residential address is insufficient unless it is a home-based business, in which case the residential address may be used) and (2) an appropriate City of San Bernardino Business License.”
Lowest Responsive and Responsible Bidder: The Bidder who fully complied with all of the bid requirements and whose past performance, reputation, and financial capability is deemed acceptable, and who has offered the most advantageous pricing or cost benefit, based on the criteria stipulated in the bid documents.
Local Vendor Preference: Any formal or informal bid submitted by a local bidder for goods or materials, shall receive a five percent (5%) credit for comparison purposes with other bidders. A five percent (5%) credit for comparison purposes shall be used for bidders of services.
Municipal Code §3.04.100
Maintenance Services: The furnishing of labor, time, or effort by a contractor, including but not limited to:
• Routine, recurring, and usual work for the preservation or protection of a publicly owned, or publicly operated facility for intended purposes.
• Minor repainting.
• Resurfacing streets and highways at less than one inch. • Landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants, and servicing of irrigation and sprinkler systems; and • Other similar services that are generally classified as maintenance and not public projects.
Penalty Charge: A clause in a contract specifying the sum of money to be paid if the contractor defaults on the terms of the contract, particularly with respect to time.
Penalty Clause: Punitive language inserted in a competitive solicitation that details what action will be taken if the contractor does not perform in a satisfactory manner. (ISM, 2000) Packet Page. 1914
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 12 of 99 Pre-Bid/Pre-Proposal Conference (Meeting): A meeting held by the buyer with potential bidders/proposers prior to the opening of the solicitation for the purpose of answering questions, clarifying any ambiguities, and responding to general issues to establish a common basis for understanding all of the requirements of the solicitation. May result in the issuance of an addendum to all potential providers. In certain situations, a mandatory conference may be advisable.
Pre-Solicitation Conference (Bidders or Suppliers Conference): An informal, typically nonmandatory, meeting inviting comments and suggestions from a representative group of suppliers on the draft of a proposed solicitation; this conference provides useful market analysis information to the buyer; usually used for solicitation involving high technology or complex services.
Prevailing Wage: the average wage paid to similarly employed workers in a specific occupation in the area of intended employment.
o Per www.dir.ca.gov. When the Director of the California Department of Industrial Relations determines that the general prevailing rate of per diem wages for a particular craft, classification, or type of work is uniform throughout an area, the director issues a determination enumerated county by county, but covering the entire area. General determinations are issued twice a year, February 22 and August 22nd.
Price: 1. A value placed on an object or service provided by a seller to a buyer. 2. The money value of a unit of a good, service, or resource. 3. The total amount, in money or other consideration, to be paid or charged for a commodity normally includes all costs (direct labor, overhead, materials) a profit or fee.
Piggy-back (Piggyback Cooperatives Contracts or Government Contracts): A form of intergovernmental cooperative purchasing in which an entity will be extended the pricing and terms of a contract entered into by a larger entity. Generally, a larger entity will competitively award a contract that will include language allowing for other entities to utilize the contract which may be to their advantage in terms of pricing, thereby gaining economies of scale that they normally would not receive if they competed on their own.
Professional Service: A service rendered by member(s) of a recognized profession or possessing a special skill. Such a service is generally acquired to obtain information, advice, training, or direct assistance. See also: Nonprofessional Service.
Public Works (PW): According to Labor Code 1720, construction, alteration, demolition, installation, or repair work done under contract and paid for the whole or in part out of public funds, except work done directly by any public utility company pursuant to order of the Public Utilities Commission or other public authority. For purposes of this paragraph, “construction” Packet Page. 1915
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 13 of 99 includes work performed during the design and preconstruction phases of construction, including, but not limited to, inspection and land surveying work, and work performed during the post construction phases of construction, including, but not limited to, all cleanup work at the jobsite. “Installation” includes, but is not limited to, the assembly and disassembly of modular and/or affixed modular office systems.
Protest: A written objection by an interested party to a solicitation or award of a contract with the intention of receiving a remedial result.
Purchasing Agent: Individual who acts on behalf of any entity, such as a corporation, partnership, or any level of government as that entity conducts business. See also: Law of Agency, Principal, Buyer, General Agent, Special Agent.
Purchase Order: A purchaser’s written document to a supplier formalizing all terms and conditions of a proposed transaction (e.g., description of the requested items, cost of items being purchased, delivery schedule, terms of payment, transportation).
A purchaser’s written document to a supplier formalizing all the terms and conditions of a proposed “single” transaction, such as a description of the requested items, cost of items being purchased, delivery, schedule, terms of payment, and transportation. Purchase orders are only to be made by the Purchasing Division, except in the case of small purchases or in the case of an emergency. No employee is to request the delivery of goods or services without the issuance of a purchase order.
o Please note that a small purchase is a purchase that is less than or equal to $10,000.
Purchase Order (Stand Alone): This type of transaction is not connected to a contract in any way. Stand Alone POs are created for one-time purchases, usually for equipment and materials.
Stand Alone POs have their own terms and conditions. Once signed by the recipient it is a legally binding contract.
Purchase Order (Assigned to a Contract): This type of transaction is connected to a contract.
The terms and conditions along with the expiration date of the contract extend to the Purchase Order. Purchase Orders that are contract specific/related should not be drafted beyond the expiration date of the contract that it is attached to. If the contract is extended, then the PO can be extended. If the contract expires, the PO cannot be extended beyond the expiration date of the contract.
Purchase Requisition (PR): A document created by a requestor authorizing the commencement of purchasing transaction. This typically will include a description of the need and other information that is relative to the transaction. A requisition may be submitted in hard copy or via eProcurement software.
Packet Page. 1916
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 14 of 99 Quote: An informal purchasing process which solicits pricing information from several sources.
A price quote in general delivers a fixed price for a product or service. It is given to a customer by a supplier and can be either written or verbal. The quoted price is only valid for a certain period of time and can’t be changed once the client accepts it.
What isn’t a price quote:
A screen print from a vendor’s website.
A price taken from a newspaper or magazine advertisement.
A price paid from a previous product. Pricing changes over time. It mustn’t be assumed that the price of the product is the same as previously quoted.
A verbal price given without written confirmation and/or follow-up.
Requisition: An internal document by which a using agency sends details of supplies, services, or materials required to the Purchasing Division.
Request for Comments (RFC): A document generated prior to an authorized procurement in order to request feedback from the contracting community or potential Proposers/Bidders, to seek information about a product or service in order to assist in the finalization of technical specifications, design specifications, or a statement of work.
Request for Information (RFI): A non-binding method whereby a jurisdiction publishes via newspaper, internet, or direct mail its need for input from interested parties for an upcoming solicitation. A procurement practice used to obtain comments, feedback, or reactions from potential responders (suppliers, contracts) prior to the issuing of a solicitation. Generally, price or cost is not required. Feedback may include best practices, industry standards, technology issues, etc.
Request for Proposal (RFP): The document used to solicit proposals from potential providers (Proposers) for goods and services. Price is usually not a primary evaluation factor. Provides for the negotiation of all terms, including price, prior to contract award. May include a provision for the negotiation of best of final offers. May be a single or multi-step process. This format of bidding was introduced in the Armed Services Procurement Act of 1962 as wells as by the Competition in Contracting Act of 1984.
Request for Qualification (RFQual): A document that is issued by a procurement entity to obtain statements of the qualifications of potential responders (development teams or consultants) to gauge potential competition in the marketplace, prior to issuing the solicitation.
Request for Quotation (RFQ): Purchasing method generally used for small orders under a certain dollar threshold. A request is sent to suppliers along with a description of the commodity or services needed and the supplier is asked to respond with price and other Packet Page. 1917
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 15 of 99 information by predetermined date. Evaluation and recommendation for award should be based on the quotation that best meets price, quality, delivery, service, past performance, and reliability.
Single Source: A Single Source is a procurement decision whereby purchases are directed to one source because of standardization, warranty, or other factors, even though other competitive sources may be available. A department must demonstrate in writing, to the Purchasing Agent that the purchase can only be obtained from a single source. The Purchasing Agent is satisfied with the price and the terms and conditions negotiated, for single source goods and services greater than $10,000 and less than or equal to $100,000; this will require approval by the Purchasing Agent. Approval for a single source procurement in excess of $100,000 requires approval by the City Council.
Sole Source: Sole Source is used only when there is only one qualified company that has developed a patented or copyright product or service; when the product or service is required immediately due to a pressing emergency; or it is not in the public’s interest to hold a competition. Examples would be (rights to data, copyrights, or patents, proprietary interest, or secret processes) to the manufacturing of the good or service. The word “sole” means only one.
A sole source must meet certain requirements:
a) Is the commodity or good or service the only of its kind? b) The commodity is available from one, and only one source.
Specifications: A precise description of the physical characteristics, quality, or desired outcomes of a commodity to be procured, which a supplier must be able to produce or deliver to be considered for award of a contract.
Splitting Purchases: To divide a purchase into two or more parts in order to avoid the requirements of the Purchasing Policy in Municipal Code 3.04. This action is strictly prohibited by the Code. Municipal Code § 3.04.090: It shall be unlawful to split or separate into smaller purchases, a purchase so as to bring the purchase within the provisions of any exemption or less stringent procedure provided herein.
For example, procurement cards may be used to make single purchases without quotes for up to $10,000. An employee makes three purchases of $9,000 on their p-card for materials for an event, rather than getting bids. Their total spend is $27,000. When the Finance Department later audits p-card charges, they identify these charges as a split purchase that not only violated City Policy and Municipal Code but is illegal.
Surplus: 1. An overstock situation that occurs when the quantity of goods on hand exceeds the quantity of goods needed. The overstocked goods may be returned to the supplier, sold at Packet Page. 1918
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 16 of 99 auction, or disposed of in a method acceptable to the entity. 2. The goods or materials that are obsolete or no longer needed by the agency and are designated for disposal. Surplus becomes available for disposal outside of the entity due to an unforeseen situation that affects the use of the item (for example, chairs or desks that have been replaced with new items). Disposal of surplus is governed by Municipal Code § 3.04.080.
SECTION 2: POLICIES
Policy
A set of general guidelines that are outlined by the City for talking about certain situations/issues.
The Purpose of Policies
To communicate city values, philosophy, and culture. Effective policies also lay the foundation for a healthy work culture. Maybe you’ve seen firsthand how policies influence culture, communicate expectations to employees, and guide day-to-day operations. Also, maybe you’ve seen the adverse effect of neglected policies.
What makes a good policy?
Clear, concise, and simple language
Policy explains the rule, not how to implement the rule (That is what Procedures are for and that is what the purchasing manual does.)
Policies easily accessible by staff at all times.
Represents a consistent, logical framework.
Packet Page. 1919
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 17 of 99 City of San Bernardino
Administrative Policy
Purchasing Policy and Procedures Guide
Subject: Purchasing Policy and Procedures Guide
Purpose:
To set forth the policies governing procurement and contracting and to establish certain procedures concerning authorization, documentation, and expenditure for Agencies, Departments, and the City Manager of the City of San Bernardino. The City of San Bernardino has a goal of ethical and fair procurement, and open competition. This Purchasing Policy and Procedures Guide outlines procedures in compliance with Chapter 3.04 of the San Bernardino Municipal Code. Authority: Resolution No. 2023-020 Scope:
Unless otherwise stipulated herein, this policy applies to all City Employees and Elected Officials making purchases on behalf of the City of San Bernardino. All such employees and officials shall comply with the provisions outlined in this policy. The purpose of any required documentation is to ensure transparency and provide sufficient evidence to anyone who reviews bids, proposals, and/or other purchasing materials that public funds were expended in compliance with this Purchasing Policy and Procedures Guide, San Bernardino Municipal Code, and applicable State and Federal law.
Exemption from Scope
None
Packet Page. 1920
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 18 of 99
TABLE OF CONTENTS
Section Page
I. Introduction 3
II. Purchasing Expenditure and Approval Thresholds 6
III. Informal Procurement 7
IV. Competitive Procurement 7
V. Exemptions 8
VI. Protest Procedures 9
VII. Federal Emergency and Grant Procurement Procedures 10 VIII. Contracting 19
IX. Surplus Supplies and Equipment 20
X. Ethical Standards and Fair Processes 21
Exhibit A – Expenditure and Authorization Threshold Reference 24 Exhibit B – Contracting Guide 25
Packet Page. 1921
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 19 of 99 I. INTRODUCTION
(a) Purpose
Chapter 3.04 of the San Bernardino Municipal Code provides for the administration of the City’s procurement processes, including the establishment of Purchasing Policy and Procedures Guide (“Policy”). The purposes and objectives of this Policy are:
1. To ensure compliance with all current laws and regulations
2. To promote transparency of the City’s procurement activities
3. To establish standardized, cost-effective, and efficient purchasing methods
4. To ensure continuity of City operations
5. To promote fair competitive processes
6. To maintain integrity and fairness
7. To support the City’s mission and serve the best interest of the public This Policy shall not apply to the procurement of Public Works Projects. Procurement procedures for Public Works Projects are defined in Chapters 12.20, 12.21 and 12.24 of the San Bernadino Municipal Code.
(b) Definitions
In construing the provisions of this Policy, the following definitions shall apply:
Cooperative Purchasing – Cooperative purchasing is an arrangement in which multiple entities combine their buying requirements onto a single contract and aggregate volume to enhance their purchasing power.
Emergency – A sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services as defined by California Public Contract Code Section 1102.
Emergency Purchase – A purchase or procurement of supplies, equipment or services made during an emergency as defined under Section VI(A) and MC 3.04.070.
General Services - furnishing of labor, time, or effort by a contractor for non-professional services as the City may, from time to time, find necessary and proper for the functioning of the City. Examples include, but are not limited to, janitorial, uniform cleaning, maintenance and other services which do not require any unique skill, special background or training.
Goods - any and all supplies, materials, articles, equipment, apparatus, vehicles, things, or property, other than real property, furnished to be used by the City.
Local Business – The vendor (i) has fixed facilities with employees located at a business address within the City of San Bernardino city limits (a PO box or residence is insufficient); and (ii) has an appropriate City business license/permit, pursuant to MC 3.04.100.
Lowest Responsive, Responsible Bid – A bid from a responsible bidder, defined as a bidder qualified to do the solicited work, that conforms in all materials respects to the solicitation, and is the lowest price among qualified, responsive bids.
Packet Page. 1922
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 20 of 99 Maintenance Services - the furnishing of labor, time or effort by a contractor, including but not limited to:
• Routine, recurring, and usual work for the preservation or protection of a publicly owned, or publicly operated facility for intended purposes; • Minor repainting;
• Resurfacing streets and highways at less than one inch; • Landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants, and servicing of irrigation and sprinkler systems; and
• Other similar services that are generally classified as maintenance and not public projects.
Piggyback – (See Cooperative Purchasing).
Professional Services - services provided by a person, company, corporation, or firm engaged in a profession based on a generally recognized special knowledge, skill, license, and/or certification to perform the work including, but not limited to, the professions of accountant, attorney, artist, architect, landscape architect, construction manager, engineer, environmental consultant, dentist, physician, training or educational consultant, or land surveyor, and whose services are considered distinct and unique.
Protest – A protest is a challenge to the award or proposed award of a contract for the procurement of goods and/or services, or a challenge to the terms of a solicitation for such a contract.
Purchase Order (PO) – A purchase order, or PO, is an official document issued by the City committing to pay a vendor for the sale of specific products or services to be delivered in the future.
Purchasing Agent – An employee who purchases materials and supplies and solicits bids on behalf of the City.
Request for proposal (RFP) – A request for proposal (RFP) is a document that solicits firms to submit a proposal to perform the scope of work associated with a proposed project. Cost is not the sole basis for selection in an RFP; other qualifications including experience, turnaround time and approach to work are important factors when evaluating proposals. RFPs are project specific, and preparation requires general knowledge of the project. It is expected that interested parties would do a limited amount of work to develop a quality proposal.
Request for Qualification (RFQual) – A request for qualifications (RFQual) is a document that solicits firms to submit information about their qualification and capabilities to perform the type of work associated with a proposed project. The preparation of an RFQual generally does not require specific project knowledge or scope. An RFQual may be used as a pre-qualification step to engaging a service provider. If an RFQual is required, only those candidates who successfully respond to it and meet the qualification criteria will be included in the subsequent RFP process.
An RFQual will contain specific reference to selection criteria.
Request for Quote (RFQ) – A formal or informal solicitation of price quotes.
Services - either general services, maintenance services, or professional services.
Packet Page. 1923
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 21 of 99 Sole Source – A sole source purchase means that only one supplier, to the best of the requester's knowledge and belief, based upon thorough research, can provide the required product or service.
Surplus Supplies and/or Equipment – City owned materials, supplies and/or equipment deemed to be no longer useful or otherwise obsolete. See MC Section 3.04.080. (c) Organization
The Purchasing Division is part of the Finance Department, which is responsible for carrying out written administrative procedures adopted by the City Council related to procurement (M.C. § 3.04.020). (i) Purchasing Division.
The Purchasing Division is responsible for the oversight and internal control related to procurement and purchasing including, but not limited to:
i. Ensuring compliance with Chapter 3.04 of the San Bernardino Municipal Code and this Policy.
ii. Developing technical review matrices for proposals
iii. Carrying out the initial review of Bids/Proposals
iv. Verifying that all legal and other required internal reviews are completed
v. Ensuring that departments are using the correct contract templates vi. Opening sealed bids
vii. Certification of Sole Source Procurements
viii. Managing the City’s Disadvantaged Business Enterprise (DBE) and Small Business Enterprise (SBE) Program and reporting results to City Management and the Mayor and City Council.
(ii) Purchasing Division Manager (“Purchasing Manager”).
The Purchasing Manager is a critical internal control position. While not empowered to make purchases directly, the Purchasing Manager ensures that the City complies with applicable procurement law, grant funding requirements, the San Bernardino Municipal Code and this Policy. The Purchasing Manager is responsible for internal control and compliance related items including, but not limited to:
i. Reviewing selection of vendors for compliance with open and fair competition
ii. Responding to any bid protests
iii. Reviewing the DBE and SBE program including verifying affirmative steps and auditing results
iv. Reviewing contracts before they are submitted for final signatures Packet Page. 1924
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 22 of 99 v. Periodic audits for compliance with applicable law, the San Bernardino Municipal Code and the Policy
II. PURCHASING EXPENDITURE AND APPROVAL THRESHOLDS
(a) Purchasing Requirements by Expenditure Threshold
(i) Purchases up to $10,000 (Micro-Purchases):
1. Purchases up to $10,000 may be purchased using a Procurement -Card (“P-Card”) or through a check request.
2. No formal bids or quotes are required.
3. Purchases of $10,001 and over shall not be divided into multiple smaller purchases or invoices to circumvent required procedures. This is “split purchasing” and is unlawful and a violation of the Policy and the San Bernardino Municipal Code. (M.C. § 3.04.090).
(ii) Purchases Between $10,001 and $40,000 (Small Purchases):
1. Purchases in this category are processed informally through the simplified process outlined in Section III of this Policy and may be processed directly by the department making the purchase.
2. Competitive Bidding may be used for purchases under $40,000 at the discretion of the Agency or Department Director.
(iii) Purchases Above $40,000:
1. Purchases in this category are subject to competitive bidding or competitive selection outlined in Section IV of this Policy, depending on the type of purchase (formal procurement procedures).
2. Reporting. All contracts in this category signed by the City Manager, Agency Directors, Directors and/or their designees shall be reported (in list form) to the Mayor and City Council at each Regular City Council meeting during the City Manager Update.
(b) Purchasing Authority by Expenditure Threshold
(i) Purchases up to $50,000:
1. Purchases in this category may be authorized and signed by Agency/Department Directors and/or the City Manager or their designee.
(ii) Purchases between $50,001 and $100,000:
1. Purchases in this category may only be authorized and signed by the City Manager or the Assistant City Manager with prior written authorization from the City Manager in the City Manager’s absence. (iii) Purchases over $100,000:
1. Purchases in this category may only be authorized by the Mayor and Packet Page. 1925
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 23 of 99 City Council.
III. INFORMAL (SIMPLIFIED) PROCUREMENT PROCESS
Purchases for goods, services, and materials that are subject to the informal procurement process may be processed through vendor quotations as follows:
(a) Three (3) written quotes should be obtained.
(b) Departments shall strive to obtain written price quotes from three or more potential contractors or suppliers and accept the quote which is determined to be in the best interests of the City. Written price quotes shall be retained and provided as backup for the purchase requisition. If unable to obtain a minimum of three (3) price quotes, staff shall document that reasonable efforts were made to obtain price quotes or proposals including, that there were no other vendors to solicit price quotes or proposals from or that they solicited to other vendors and one or more declined to provide a quote or proposal.
(c) Award shall be made to the best qualified vendor presenting a quote or proposal that is in the City’s best interests. For purchases subject to the informal procurement process, criteria other than price may be used. For example, delivery time, quality, and vendor experience may impact the selection of quotes. If using criteria other than price, the criteria should be stated somewhere on the quote documentation for audit purposes. (d) Contracts for the purchase of professional services shall be awarded to the best qualified vendor on the basis of demonstrated competence and professional qualifications. While a reasonable price is always a consideration in selecting a vendor, it cannot be the sole factor in selecting a vendor for professional services.
IV. FORMAL PROCUREMENT PROCESS
(a) Purchases for goods, services, and materials that are subject to the formal procurement process shall be processed utilizing an RFP, RFQual or RFQ process as described in this Section. The RFP, RFQual or RFQ process shall be utilized to engage services on the basis of demonstrated competence and qualifications for the types of services to be performed and at fair and reasonable prices to the City. The following minimum guidelines and procedures shall be implemented.
(i) Notice Inviting RFQs or RFPs. At a minimum, the notice inviting RFQs, RFQuals or RFPs shall: (1) describe the project; (2) state how to obtain more detailed information about the project; (3) state the date, time and place for the submission of qualifications or proposals; (4) describe general parameters for evaluation and selection; and (5) include any other information required by state or local law.
(ii) Published Notice. City staff shall solicit RFQs, RFQuals or RFPs via published notice in a newspaper of general circulation and/or the City’s website at least ten Packet Page. 1926
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 24 of 99 (10) calendar days before the date for receiving qualifications or proposals, unless exigent circumstances call for a shorter time.
(iii) Review of Qualifications or Proposals. The City will receive qualifications or proposals at the date, time and place of submission on the notice inviting RFQs/RFQuals/RFPs. Any proposals received after the proposal opening time will be time/date stamped and returned unopened to the proposer. The City will review and evaluate qualifications or proposals based on the evaluation and selection criteria in the RFQs/RFQuals/RFPs and rank proposals based on factors listed in the RFQ/RFQual/RFP.
(iv) Negotiation. Once proposals are ranked, the City may negotiate a contract with the highest ranked proposer only, may negotiate with multiple proposers, or may attempt to reach an agreement with the highest ranked proposer before negotiating with other proposers in order of ranking. The City may also dispense with negotiations and recommend an award based on the proposals. (v) Award. Award for professional services contracts shall be to the best qualified vendor who will best serve the City’s interests taking into account the demonstrated competence, professional qualifications and suitability for the project. Award for other contracts shall to the vendor offering the best value to the City, in the City’s sole and absolute discretion.
(vi) Rejection of Bids. The City Council may, in its sole and absolute discretion, reject all proposals presented and re-advertise.
V. EXEMPTIONS
Exemptions from the procurement process may be requested under the following circumstances:
(a) Emergency Purchases. An exemption may be granted in case of an emergency, which is so urgent as to preclude advance action by the Mayor and Common Council and which requires purchase of supplies, materials, equipment, and contractual service. (i) In such a case, the City Manager shall have the authority to authorize the Purchasing Division to secure in the open market such supplies, materials, equipment, or contractual services as deemed necessary. (ii) This emergency authority shall extend to all purchases; irrespective of the fact that amount might exceed the City Manager’s authorization threshold. In such instances a full explanation of the emergency circumstances shall be filed with the Mayor and City Council (MC § 3.04.070).
(iii) If emergency work is performed, the Purchasing Division should be notified by the next business day, or as soon as practical. This will allow the Purchasing Division to properly ratify purchase orders.
Packet Page. 1927
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 25 of 99 (iv) An emergency includes the following: (1) a public calamity; (2) an immediate need to prepare for national or local defense; (3) the breakdown of machinery or equipment causing a service impediment requiring immediate resolution; (4) a hazard to public health or welfare; and (5) situation in which the City will be unable to perform services for the public.
(b) Cooperative Purchases. The City may engage in cooperative purchasing for goods or services as a third-party agency "piggybacking" on another agency's competitively bid agreement. Cooperative purchasing reduces administrative expenses and secure prices and other benefits of a large volume purchase. Caution must be exercised to ensure that the City is in compliance with all applicable federal, state, and local laws as well as the Policy. The Purchasing Division must be consulted prior to any department engaging in cooperative purchasing.
(c) Sole Source. When a department determines that the goods, services or public project can only be obtained from a sole source. For example, only one manufactured makes an item that meets the required specifications or only one item is compatible with existing equipment. Price cannot be used in a determination of sole source. This is an indication of competition in the marketplace.
A sole source purchase is a method of acquisition; it shall not be used to avoid competition. A sole source justification memo is required for any sole source purchase over $10,000. The sole source justification memo must be approved by the Purchasing Manager before the purchase is completed.
(d) Public Works Projects. This Policy shall not apply to the procurement of Public Works Projects. Procurement procedures for Public Works Projects are defined in Chapters
12.20, 12.21 and 12.24 of the San Bernadino Municipal Code. (e) Purchases Approved by Mayor and City Council. A purchase that is otherwise approved by the action of the Mayor and City Council in a public meeting is exempt from this Policy.
(f) Federal/Grant-Funded Procurement. Federal/grant-funded procurements shall be exempt from this Policy if such funding requires compliance with an alternative set of procurement rules not in compliance with this Policy. This is more particularly described in Section VII(c) of this Policy.
(g) Exemptions Authorized by San Bernardino Municipal Code Section 3.04.010(D)(1). Items listed in San Bernardino Municipal Code section 3.04.010(D)(1) shall be exempt from this Policy. This includes, but is not limited to, purchases/sales from other governmental agencies.
(h) Inadequate Competition. Inadequate competitive is defined as when, after solicitation from a number of sources (which must be documented for audit purposes), competition is determined to be inadequate. Inadequate competition includes the lack of receipt of responsive bids.
VI. PROTEST PROCEDURES
(a) Right to Protest. Prior to making the award, any responsible bidder in connection with Packet Page. 1928
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 26 of 99 the award of a contract may protest the award. A subcontractor of a bidder or proposer may not submit a protest. This Section shall apply to all contracts awarded by the City Council through a formal competitive process, including but not limited to a formal bid or formal request for proposal process. The protest procedure does not apply to contracts that are awarded at the staff level or through a non-competitive process (e.g., by sole source). The protest procedure is solely to serve the public interest and obtain finality of City contract awards.
(b) Procedure. The protest must:
(i) Be filed in writing within five (5) calendar days after the bid opening date relating to any Bid. Any protest relating to a City determination or recommendation regarding the bidder’s bid must be submitted within five (5) calendar days after the City makes the determination or recommendation (ii) Clearly identify the specific irregularity or accusation; (iii) Clearly identify the specific City staff determination or recommendation being protested, if applicable;
(iv) Specify in detail the legal grounds for protest and the facts supporting the protest; and
(v) Include all relevant, supporting documentation with the protest at time of filing. (c) City Response. Any grounds not raised in the written protest are deemed waived by the protesting bidder. If the protest does not comply with each of these requirements, the City may reject the protest without further review. If the protest is timely and complies with the above requirements, the City shall review the protest, any response from the challenged bidder(s), and all other relevant information. The City will provide a written decision to the protestor in a reasonable amount of time. (d) Effect of Failure to Comply with Protest Procedures. The procedure and time limits set forth are mandatory and are the sole and exclusive remedy in the event of a bid protest.
Failure to comply with these procedures shall constitute a failure to exhaust administrative remedies and a waiver of any right to further pursue the bid protest, including filing a Government Code Claim or legal proceeding. (e) Conflicts. The protest procedure contained in this Section shall not apply if a particular procurement solicitation contains a different protest procedure.
VII. FEDERAL EMERGENCY AND GRANT PROCUREMENT PROCEDURES (a) Purpose. The purpose of these Federal Emergency and Grant Procurement Procedures is to define the practices and policies governing the procurement of services, and goods (i) in preparation of, during, and after an emergency that may be subject to federal funding or reimbursement; (ii) when using federal grant funds subject to the regulations set forth in the following sentence. These Federal Emergency and Grant Procurement Procedures are compliant with Title 2 of the Code of Federal Regulations Part 200, Packet Page. 1929
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 27 of 99 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”).
(b) Federally Declared Emergencies and Federal Grants; Procurement and Contracting Requirements
(i) In the event of an emergency declared by the President of the United States, the City must comply with Federal procurement standards as a condition of receiving public assistance funding from the Federal Emergency Management Agency (FEMA) for contract costs for eligible work. FEMA funding is governed by the Uniform Guidance.
(ii) In addition, most federal grant funding is also subject to the Uniform Guidance.
Federal grant compliance requires the grantee to conduct procurements in accordance with written procurement policies and procedures that comply with the requirements set forth in the Uniform Guidance. These procurement procedures shall be complied with in connection with utilization of federal grant funding by the City, in addition to any other specific grant requirements. (iii) These procedures are in addition to and are not intended to replace or supersede the City’s other procurement requirements in this Policy or state law.
In the case of a conflict between these procedures, the more stringent requirement shall govern, provided that the more stringent requirement would not violate a federal procurement requirement. In such case, for federally funded contracts, the federal requirement shall govern. (c) Conflicts of Interest
(i) Standards of Conduct for Conflicts of Interest. No employee, officer or agent of the City shall participate in selection, or in the award or administration of a contract supported by federal funds if a conflict of interest, real or apparent, would be involved. Such a conflict would arise when: The employee, officer or agent; any member of his immediate family; his or her partner; or an organization which employs, or is about to employ, any of the above, has a financial or other interest in the firm selected for award. The City’s officers, employees or agents will neither solicit nor accept gratuities, favors or anything of monetary value from contractors, potential contractors, or parties to subagreements. Such a conflict will not arise where the financial interest is not substantial, or the gift is an unsolicited item of nominal intrinsic value.
Employees must follow applicable laws, rules, and regulations in regard to conflicts of interest including, but not limited to, the Political Reform Act, the prohibition against contractual conflicts of interest, and guidelines in the California Code of Regulations regarding acceptance of gifts. (ii) Violations. Disciplinary actions to be applied for violations of the above standards are as follows.
(1) The violation of these Standards of Conduct by City employees will subject the violator to any disciplinary proceedings or action deemed Packet Page. 1930
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 28 of 99 appropriate by the City Manager. Employees may correct a violation in any manner provided for under the Political Reform Act, and its implementing regulations.
(2) The violation of any of these Standards of Conduct by City officers will require correction of the violation in any manner provided for under the Political Reform Act, and its implementing regulations. (3) Contractors or subcontractors that violate these Standards of Conduct as relates to an active federally funded procurement may be prohibited from bidding on the procurement, or may be subject to other action as deemed appropriate by the City Manager.
(4) Agents of the City that violate these Standards of Conduct as relates to federally funded procurements may be prohibited from participation on behalf of the City on federally funded projects, or subject to other action as deemed appropriate by the City Manager.
(d) Procurement Standards
(i) Oversight. The City shall maintain administrative oversight of contractors to ensure that contractors perform in accordance with the terms, conditions and specifications of their contracts or purchase orders.
(ii) Economical Approach. The City must avoid acquisition of unnecessary or duplicative items. Consideration should be given to consolidating or breaking out procurements to obtain a more economical purchase. Where appropriate, an analysis will be made of lease versus purchase alternatives, and any other appropriate analysis to determine the most economical approach. The City will enter into state and local intergovernmental agreements or inter-entity agreements where appropriate for procurement or use of common or shared goods and services. If feasible and it reduces project costs, the City will explore using federal excess and surplus property in lieu of purchasing new equipment and property. When appropriate, the City will investigate using value engineering clauses in contracts for construction projects of sufficient size to offer reasonable opportunities for cost reductions.
(iii) Detailed Records. The City shall maintain records sufficient to detail the history of each procurement. These records will include but are not necessarily limited to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. (iv) Procurement Issues. The City alone shall be responsible, in accordance with good administrative practice and sound business judgment, for the settlement of all contractual and administrative issues arising out of procurements. These issues include, but are not limited to, source evaluation, protests, disputes and claims.
Protest procedures or information on obtaining the procedures shall be included in the procurement documents.
Packet Page. 1931
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 29 of 99 (e) Competition
(i) Full and Open Competition. In order to ensure objective contractor performance and eliminate unfair competitive advantage, contractors that develop or draft specifications, requirements, statements of work, or invitations for bids or requests for proposals must be excluded from competing for such procurements.
Some of the situations considered to be restrictive of competition include but are not limited to:
(1) Placing unreasonable requirements on firms in order for them to qualify to do business;
(2) Requiring unnecessary experience and excessive bonding; (3) Noncompetitive pricing practices between firms or between affiliated companies;
(4) Noncompetitive contracts to consultants that are on retainer contracts; (5) Organizational conflicts of interest, as further detailed herein; (6) Specifying only a “brand name” product instead of allowing “an equal” product to be offered and describing the performance or other relevant requirements of the procurement; and
(7) Any arbitrary action in the procurement process.
(ii) Organizational Conflicts of Interest. An unfair competitive advantage could result if a contractor were allowed to submit a bid or proposal for work described in a specification or statement of work that the contractor itself developed. For the purpose of eliminating a potential unfair competitive advantage, and in compliance with applicable state and federal laws and regulations, a contractor that develops or assists in developing specifications, requirements, statements of work, invitation for bids, and/or request for proposals for City procurement is excluded from competing for the resultant procurement, unless an appropriate waiver is issued by the City. All waivers will be assessed by the City on a case-bycase basis. (iii) Geographical Preference. The City shall conduct procurements in a manner that prohibits the use of statutorily or administratively imposed in-state or local geographical preferences in the evaluation of bids or proposals, except in those cases where applicable federal statutes expressly mandate or encourage geographic preference. When contracting for architectural and engineering (A/E) services, geographic location may be a selection criterion provided its application leaves an appropriate number of qualified firms, given the nature and size of the project, to compete for the contract.
(iv) Procurement Transactions. The City shall require the following information for procurement transactions:
Packet Page. 1932
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 30 of 99 (1) A clear and accurate description of the technical requirements for the material, product, or service to be procured. Such description shall not, in competitive procurements, contain features which unduly restrict competition. The description may include a statement of the qualitative nature of the material, product or service to be procured, and when necessary, shall set forth those minimum essential characteristics and standards to which it must conform if it is to satisfy its intended use.
Detailed product specifications should be avoided if at all possible. When it is impractical or uneconomical to make a clear and accurate description of the technical requirements, a brand name or equal description may be used as a means to define the performance or other salient requirements of procurement. The specific features of the named brand which must be met by offerors shall be clearly stated; and
(2) All requirements which the offerors must fulfill and all other factors to be used in evaluating bids or proposals.
(v) Prequalification Lists. The City shall ensure that all prequalified lists, if used, of persons, firms or products which are used in acquiring goods and services are current and include enough qualified sources to ensure maximum open and free competition. The City shall not preclude potential bidders from qualifying during the solicitation period.
(f) Procurement Procedures
The thresholds below are federal thresholds. If City thresholds are lower, the more restrictive requirement shall govern, notwithstanding the provisions herein. (i) Micro-Purchases. Purchases within the micro-purchase threshold (e.g., currently set at purchases of $10,000 or less but periodically adjusted for inflation) may be awarded without soliciting competitive quotations if the City considers the price to be reasonable. To the extent practicable, the City must distribute micropurchases equitably among qualified suppliers. (ii) Small Purchases. Purchases within the simplified acquisition threshold (e.g., currently set at purchases of $40,000 or less) shall not be required to be formally bid. Price quotations must be received from no less than three (3) sources. (iii) Formal, Sealed Bidding.
(1) Bids are publicly solicited and a firm-fixed-price contract (lump sum or unit price) is awarded to the responsible bidder whose bid, conforming to all the material terms and conditions of the invitation for bids, is the lowest in price. Formal, sealed bidding is required for purchases greater than the simplified acquisition threshold, which is currently set at $40,000, or as may be adjusted by the Federal Acquisition Regulation, pursuant to 48 CFR § 2.101.
Packet Page. 1933
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 31 of 99 (2) This is the preferred method for procuring construction, if a complete, adequate, and realistic specification or purchase description is available; two or more responsible bidders are willing and able to compete effectively and for the business; and the procurement lends itself to a firm-fixed-price contract and the selection of the successful bidder can be made principally on the basis of price.
(3) The City must publicly advertise the Invitation for Bids and publicly open all bids at the time and place prescribed in the invitation. (4) Any contracts awarded pursuant to this procedure shall be to the lowest responsible bidder submitting a responsive bid and shall be for a firm fixed price. Any or all bids may be rejected if there is a sound documented reason.
(iv) Competitive Proposals.
(1) When the nature of a procurement does not lend itself to formal, sealed bidding, the City may solicit competitive proposals. The technique of competitive proposals is normally conducted with more than one source submitting an offer, and either a fixed-price or cost-reimbursement type contract is awarded.
(2) A request for proposals (RFP) must be publicly advertised, and the City must solicit proposals from an adequate number of sources. The RFP must identify all evaluation factors and their relative importance; however, the numerical or percentage ratings or weights need not be disclosed.
(3) Evaluation factors that will be considered in evaluating proposals shall be tailored to each procurement and shall include only those factors that will have an impact on the selection decision.
a. The City’s procurement officer shall establish a formal evaluation committee, of at least two persons. The size of an evaluation committee should be based on the size and complexity of the goods or services being procured and well balanced and
represented by individuals involved with the procurement and/or affected by the goods or services being procured. b. The evaluation committee will be charged with responsibility for evaluating proposals in accordance with the evaluation criteria in the solicitation, short listing firms, establishing a competitive range, and/or recommending a firm or firms for contract award. (4) Any contract awarded based on the competitive proposal procurement process cannot be based exclusively on price or price-related factors.
Packet Page. 1934
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 32 of 99 (5) If a contract is awarded, it shall be to the responsible firm whose proposal is most advantageous to the City (“best value”), with price and other factors considered.
(v) Competitive Proposals for A&E Services. The competitive proposal procedures above may be used for procurement of architect and engineering (A&E) services, provided that proposers must be evaluated based on competence and qualifications, without regard to price. For A&E procurements, price will not be used as a selection factor. The City will rank proposers based on qualifications only, and attempt to negotiate fair and reasonable compensation with the highest ranked proposer. If negotiations with the highest ranked proposer are unsuccessful, such negotiations will be terminated and the City will commence negotiations with the next highest ranked proposer. This process shall be continued with successive qualified proposers until agreement is reached that is determined to be fair and reasonable.
(vi) Noncompetitive Procurements.
(1) Contracts may be procured through a noncompetitive proposal only when:
a. The item is only available from a single source;
b. The public exigency or emergency for the requirement will not permit a delay resulting from competitive solicitation; c. The Federal awarding agency or pass-through entity expressly authorizes noncompetitive proposals in response to a written request from the City; or
d. Competition is deemed inadequate after the solicitation of a number of sources.
(vii) Public Projects. Public projects shall be procured by the City’s formal contract bid procedures, if any, and the formal, sealed bidding in this section. If there is conflict between the foregoing, the more restrictive requirements shall apply. (viii) Award.
(1) Responsible Contractor. The City shall award contracts only to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement.
Consideration will be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources.
(2) Debarment and Suspension. In accordance with 2 CFR 200.213, in connection with the responsibility determination, a check of debarment and suspension using the System for Award Management (SAM), Packet Page. 1935
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 33 of 99 www.sam.gov, must be performed and documented in the procurement records prior to award.
(g) Contracting with Small and Minority Firms, Women’s Business Enterprises, and Labor Area Surplus Firms
(i) The City must take all necessary affirmative steps to ensure the use of minority businesses, women’s business enterprises, and labor surplus area firms when possible, as set forth at 2 CFR § 200.321 and detailed below. The City shall:
(1) Place qualified small and minority businesses and women's business enterprises on solicitation lists;
(2) Assure that small and minority businesses, and women's business enterprises are solicited whenever they are potential sources; (3) Divide total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority businesses, and women's business enterprises;
(4) Establish delivery schedules, where the requirement permits, which encourage participation by small and minority businesses, and women's business enterprises;
(5) Use the services and assistance, as appropriate, of such organizations as the Small Business Administration and the Minority Business Development Agency of the Department of Commerce; and
(6) Require the prime contractor, if subcontracts are to be let, to take the affirmative steps listed in paragraphs (1) through (5) of this section. (ii) The City shall document the steps above, and any relevant findings applicable to any of the steps above in its procurement file.
(h) Cost and Price
(i) Cost or Price Analysis. The City shall perform a cost or price analysis in connection with every procurement action, including contract modifications, in excess of the simplified acquisition threshold. While the method and degree of analysis depend on the facts surrounding the particular procurement situation, the City must, at a minimum, make independent estimates before receiving bids or proposals.
(ii) Profit. The City shall negotiate profit as a separate element of the price for each contract in which there is no price competition and in all cases where a cost analysis is performed as required by 2 CFR § 200.323(b).
Packet Page. 1936
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 34 of 99 (iii) Estimated Costs. Costs or prices based on estimated costs for contracts are allowable only to the extent that costs incurred or cost estimates included in negotiated prices would be allowable for the City under 2 CFR 200.400 et seq. (i) Payment Procedures
(i) Method of Contracting. Contracts entered into pursuant to these procedures shall utilize only fixed-price, cost-reimbursement, or, to a limited extent, time and materials payment methods.
(ii) Prohibited Methods of Contracting. The City shall not use the cost plus a percentage of cost or percentage of construction cost methods of contracting for any work for which federal reimbursement will be sought. (iii) Time and Materials (“T&M”) Contracts
(1) T&M contracts should be used rarely, and the use of T&M contracts should be limited to a reasonable time period (e.g., no more than 70 hours) based on circumstances during which the City cannot define a clear scope of work.
(2) The City shall only enter into a time and materials contract if all of the following apply:
a. The City has determined and documented in the project file that no other contract is suitable;
b. The contract has a guaranteed maximum price that the contractor exceeds at its own risk; and
c. The City provides a high degree of oversight to obtain reasonable assurance that the contractor is using efficient methods and effective cost controls.
(3) The City must define the scope of work as soon as possible to enable procurement of a more acceptable type of contract (i.e., non-T&M). (iv) Separate Invoicing. All purchases made during a proclaimed emergency shall require separate invoicing from routine (i.e., non-emergency related) purchases.
All invoices shall state the goods, services, or equipment provided and shall specify where the goods or services were delivered. All invoices shall specify the location(s) where the goods or services were used, if possible. Any invoice which fails to properly identify the emergency nature of the purchase and provide details as to the date(s) and location(s), as appropriate, shall not be paid until such errors are corrected by the vendor and re-submitted in correct form. (v) Auditing of Invoices for Debris Removal. All invoices for debris clearance and removal shall be audited prior to payment to the contractor. Contractors shall be notified of this requirement prior to the award of any contract for debris Packet Page. 1937
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 35 of 99 clearance and/or removal. Audits shall be in accordance with procedures for debris removal monitoring specified in FEMA’s Publication 325, Debris Management Guide.
(j) Bonding Requirements
(i) Bonding. For construction or facility improvement contracts or subcontracts exceeding the simplified acquisition threshold (See 2 CFR 200.88), the City shall require at a minimum:
(1) A bid guarantee from each bidder equivalent to five percent of the bid price.
(2) A performance bond on the part of the contractor for 100 percent of the contract price.
(3) A payment bond on the part of the contractor for 100 percent of the contract price.
(k) Procurement of Recovered Materials
(i) For procurements covered under these procedures, the City and its contractors must comply with section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. In accordance with these requirements, the City shall only procure items designated in the guidelines of the Environmental Protection Agency (EPA) at 40 CFR part 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition; 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.
(ii) This requirement applies to purchases of items when the purchase price of the item exceeds $10,000, or the value of the quantity acquired during the preceding fiscal year exceeded $10,000.
(l) Contract Provisions. The City’s contracts shall contain the applicable provisions described in Appendix II to Part 200 – Contract Provisions for Non-Federal Entity Contracts Under Federal Awards.
VIII. CONTRACTING
(a) Standard Contract Templates. The City utilizes written contracts to document each party's obligation and to minimize the City's risks during the performance of services or supply of goods. Contracts include standard terms and conditions that serve as the framework and a statement of work that serves as the substance, of the contract.
During the course of the relationship between the parties, the contract serves as a point of reference which may quickly resolve any misunderstanding.
Packet Page. 1938
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 36 of 99 (i) The contract templates include forms for: professional and consulting services, maintenance services, software licensing, and the purchase of goods. The type of contract used for a particular procurement is determined by the nature of the transaction. The City has a set of contract templates that can be found on the City’s Intranet.
(ii) The Purchasing Division can aid departments in determining which type of contract is needed. Exhibit B provides a brief explanation when certain contract templates should be used.
(iii) Questions regarding contract terms should be directed to the City Attorney’s Office. Under no circumstances should contract terms and conditions be adjusted, changed, or deleted by anyone other than a representative of the City Attorney’s Office.
(b) Non-Standard Contracts. In some cases, vendor services or products are specialized, and a department may wish to use the vendor contract. However, doing so requires specialized legal review. It is important to note that this can add anywhere from two (2) to four (4) weeks to the contracting process. This additional time must be allowed for to ensure that the City’s interests are protected.
(c) Contracts NOT Required. Neither a contract, nor a purchase order is required for the following: payroll-related expenses such as insurance or retirement payments as approved by City Council through the budget, other insurance premiums, petty cash, travel advances or reimbursements, utility payments, membership dues, subscriptions, debt service, various “pass-through” payments, or other mandated expenditures. Claim forms should be used to pay these items.
IX. SURPLUS SUPPLIES AND EQUIPMENT
(a) Submitting Reports. The applicable Department Head or their designee(s) will notify the Purchasing Division in writing of surplus supplies and/or equipment and request disposal. This notification shall list each item, acquisition date or estimated age, acquisition price (if known), condition, and any known defect not readily apparent through visual inspection.
(b) Review. The Purchasing Division shall review the surplus items and determine if any other City department has a use for the property.
(c) Disposing of Surplus. If the Purchasing Division determines that the surplus items are not functionally or economically suitable for further City use, they shall dispose of the items by using a public auction, sealed bids or through negotiated sale for items valued at more than $10,000. For recyclable items equal to or less than $10,000, Purchasing may dispose of those items through a scrap metal or a recycling vendor if the cost to do so does not outweigh the value received in return.
(d) Donation. Surplus items valued less than $10,000, for which the City no longer has an identified use, may be donated to 501(c)3 organizations operating within the city limits of the City of San Bernardino.
(e) Prohibitions. City employees and/or elected official of the City and their immediate Packet Page. 1939
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 37 of 99 families shall not be eligible to purchase such surplus materials, supplies, and equipment.
X. ETHICAL STANDARDS AND FAIR PROCESSES
(a) Ethical Standards for Purchasing. When placing City business with the business community, it is every employee’s responsibility to follow good business and ethical practices and to adhere to the City’s applicable law, policies, and procedures. This is a responsibility that should not be taken lightly as it is a duty under the law. All vendors shall be treated equally and fairly at all times by City personnel, with equal information given to each vendor who participates in a competitive situation. City employees must discharge their duties under this Policy in an impartial manner to foster the integrity of the City’s purchasing function and to assure fair and open competition for City business and the selection of competent, responsible vendors.
(b) Conflicts of Interest.
(i) No employee, officer, or agent of the City may participate in the selection, award, or administration of a contract pursuant to this Policy he or she has a real or apparent conflict of interest. A conflict of interest would arise when the City employee, officer, or agent, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated herein, has a financial or other interest in or a material benefit from a vendor considered for a contract. The officers, employees, and agents of the City may neither solicit nor accept gratuities, favors, or anything of monetary value from contractors or parties to subcontracts, subject to any applicable standards for determining whether a financial interest is not substantial, or a gift is an unsolicited item of nominal value. (ii) California Government Code § 1090 prohibits City officers and employees from having a financial interest in any contract "made" by them or by any board or body of which they are members. Virtually all City Council members, officers, employees, and consultants of a public entity are considered public officials under Government Code §1090. In a case where a consultant is developing a scope of work for a future project, creation of that scope of work is considered part of the “making” of the contract and defined by Section 1090. As such the consultant would be prohibited from submitting a proposal and/or being awarded a contract for the work.
(c) Communications Related to Solicitations.
(i) Bidders, proposers, and other potential vendors shall not contact City officials outside of the solicitation process and shall not make any efforts to unduly influence City decision-making or otherwise gain an unfair advantage outside of the solicitation process. Improper contacts or attempts to influence the selection process shall be grounds for automatic rejection. (ii) To the maximum extent feasible, City representatives shall provide each vendor with the same information related to the solicitation. For formal bids, RFP’s and Packet Page. 1940
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 38 of 99 RFQ’s, such information shall be provided in the form of an addendum to the solicitation.
(d) Confidentiality and Transparency.
(i) Negotiations related to any solicitation shall be maintained with strict confidentiality. No City official or employee with knowledge of the City’s bargaining position, or of the non-public position of other bidders or proposers, shall disclose such information for purposes of aiding a particular vendor, giving an advantage to a particular vendor over other bidders or proposers, or otherwise corrupting or frustrating the City’s procurement efforts. This Section does not prevent the City’s designated representative from engaging in negotiating tactics to obtain the best value to the City. (ii) All bids, proposals, quotes, and any related documents, including communications such as e-mails related to solicitations, are public records and shall be made available to the public upon request. However, public records may be withheld from disclosure while negotiations are pending, in accordance with applicable law.
(iii) To the extent a solicitation involves proprietary information or trade secrets, vendors should mark the proprietary information as confidential. Information that is not proprietary or a trade secret shall not be marked confidential. Unless a law specifically and expressly allows price information to be confidential, all price proposals and other financial terms shall be public. (iv) City Council decisions on all contract awards shall strictly comply with the Ralph M. Brown Act (Government Code sections 54950, et seq.). City Council members and staff should not engage in any series of communications that result in a majority of the City Council deliberating on a proposed contract award outside of a properly noticed City Council meeting.
(e) Disclosures. (i) Solicitations should require that bidders, proposers and other potential vendors disclose: (1) any ex parte contacts made by the vendors or made by City officials to the vendors outside of the official procurement process, (2) any gifts, loans or other benefits (other than campaign contributions) made to City officials within the 12 months preceding the solicitations, (3) whether the vendor has knowledge that a City official will be financially interested in the contract.
Vendors shall promptly notify the City if any City official requests any payment, contribution or any other quid pro quo in exchange for award of a contract. (ii) Vendors may be required by the Political Reform Act, and/or the Fair Political Practices Commission to disclose financial interests on the Form 700. Such vendors shall comply with all disclosure requirements.
(f) Discipline/Censure. Violations of the ethical and fair process requirements contained in this Section may be grounds for discipline (if by an employee) or censure (if by an elected official). Criminal violations, such as willful violations of Government Code section 1090, may be reported to the San Bernardino County District Attorney.
Packet Page. 1941
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 39 of 99
EXHIBIT A
EXPENDITURE AND AUTHORIZATION THRESHOLDS REFERENCE
Purchasing Requirements by Expenditure Threshold
Purchases up to $10,000 (Micro-Purchases):
Purchases up to $10,000 may be purchased using a Procurement Card (“P Card”) or through a check request.
No formal bids or quotes are required.
Purchases of $10,001 and over shall not be divided into multiple smaller purchases or invoices to circumvent required procedures. This is “split purchasing” and is unlawful and a violation of the Policy and the San Bernardino Municipal Code. (M.C. § 3.04.090).
Purchases Between $10,001 and $40,000 (Small Purchases):
Purchases in this category are processed informally through the simplified process outlined in Section III of this Policy and may be processed directly by the department making the purchase.
Competitive Bidding may be used for purchases under $40,000 at the discretion of the Agency or Department Director.
Purchases Above $40,000:
Purchases in this category are subject to competitive bidding or competitive selection outlined in Section IV of this Policy, depending on the type of purchase (formal procurement procedures).
Purchasing Authority
Purchases up to $50,000:
Purchases in this category may be authorized and signed by Agency/Department Directors and/or the City Manager and/or their designee.
Purchases between $50,001 and $100,000:
Purchases in this category may only be authorized by the City Manager or their designee.
Purchases over $100,000:
Purchases in this category may only be authorized by the Mayor and City Council.
Packet Page. 1942
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 40 of 99
EXHIBIT B
CONTRACTING GUIDE
Under this Policy, certain contract types are likely to arise for the purchase of goods and services. Here is a brief description of an appropriate situation to use each template.
Goods Purchase Agreement – To be used when the City desires to purchase goods totaling above $5,000.
Maintenance Services Agreement - To be used for routine maintenance/repair work of a non-professional nature, such as: landscape, traffic signals, electrical, street sweeping, HVAC, and plumbing.
Nuisance Abatement Services Agreement – To be used when the City desires to engage a third party to take action to remove a public nuisance.
On-Call Professional Services Agreement - To be used when the City desires to engage a professional to engage in certain services on an as-needed basis.
Professional Services Agreement – To be used for professional consultant work, such as non–design engineering, economic, accounting, legal, financial, and administrative work.
Professional Services Agreement (Federal) – To be used for professional consultant work that also involves the use of Federal funds.
Professional Software Services Agreement – To be used for the purchase of software services.
Request for Proposals – To be used when the City desires to solicit services or purchase goods which either require bidding or for which bidding is appropriate. Please note that requests for proposals that relate to state or federal funded projects may require additional terms in accordance with grant agreements.
Request for Qualification (RFQual) – To be used when the City desires to solicits firms to submit information about their qualification and capabilities to perform the type of work associated with a proposed project. An RFQual may be used as a pre-qualification step to engaging a service provider. If an Packet Page. 1943
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 41 of 99 RFQual is required, only those candidates who successfully respond to it and meet the qualification criteria will be included in the subsequent procurement process. An RFQual will contain specific reference to selection criteria.
Request for Quote (RFQ) – To be used when the City desires to solicit firms to submit pricing for products or services where the requirements are standardized or produced in repetitive quantities.
Short Form Services Agreement – To be used for low risk or uncomplicated services that do not require formal bidding. Should not be used for public works projects.
Vendor Services Agreement – To be used when the City desires to solicit services other than Professional, Design, or Construction Services.
Packet Page. 1944
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 42 of 99 City of San Bernardino Procurement Card (P-Card) Policy (Approved Resolution 2021-213)
Purpose:
To establish a methodology for and to define the appropriate use of the City of San Bernardino’s Procurement Cards provided to authorized personnel to purchase non-restricted goods and/or services for official use by the City of San Bernardino Scope:
This Policy is applicable to all employees and elected officials who are issued a Procurement Card.
Exemption from Scope
This policy shall not apply to employees or elected officials to whom P-Cards are not issued and does not apply to the use of an employee or elected official’s personal credit card(s). The use of personal funds to make purchases on behalf of the City is covered under the City of San Bernardino Expense Reimbursement Policy.
Policy:
3.1 Abbreviations
3.1.1 P-Card: A Procurement Card.
3.1.2 City: City of San Bernardino.
3.1.3 Bank: Financial Institution that manages the City’s P-Card Program.
3.1.4 GL: General Ledger, the official record of all financial transactions made by and on behalf of the City.
3.1.5 MCC: Merchant Category Code
3.2 Definitions
3.2.1 P-Card: A credit card to be utilized in the procurement of authorized nonrestricted goods and/or services for official use by the City.
3.2.2 Vendor: A Company from which the City is purchasing goods and/or services under the provision of this policy.
3.2.3 Merchant Category Code (MCC): Codes by which individual P-Cards can be restricted in their purchasing authority to merchants (vendors) in specific categories.
3.2.4 Cardholder: City personnel who has been issued a P-Card and who is authorized to make purchases in accordance with this policy and in accordance with the City’s Procurement, Purchasing and Contracting Policy.
3.2.5 Reconciler: Departmental Coordinator who collects receipts for P-Card purchases from the Cardholder, codes transactions to the appropriate GL account(s), and releases transactions for approval.
Packet Page. 1945
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 43 of 99
3.2.6 Approver: Cardholder’s manager or designee who reviews and approves Cardholder’s transactions.
3.2.7 Transaction: A single purchase made with a P-Card
3.2.8 Purchase Limits: Dollar limits assigned to each P-Card consisting of a Single Transaction Limit, a Daily Purchase Limit, and a Monthly Credit Limit.
3.2.9 P-Card Administrator: An individual authorized by the City to manage the P-Card program to include communicating with the Bank, adding and deleting P-Cards, and changing permanent and temporary purchase limits.
4.0 Responsibilities
4.1 The Finance Department, under the direction of the Finance Director, shall be responsible for the implementation and enforcement of this policy.
4.2 All City personnel and elected officials issued a P-Card shall be responsible for the card and its use in accordance with this policy.
1.0 Overview of P-Card Program
1.1 The goal if this program is to provide a more rapid turnaround of requisitions for low dollar goods (less than $5,000) with no credit card fees and to reduce paperwork and handling costs while maintaining good internal control of the disbursement of City funds.
1.2 City personnel and elected officials who have been issued P-Cards may initiate transactions in-person, by telephone, or over the internet within the limits of this policy and in accordance with the City’s Procurement, Purchasing and Contracting Policy.
1.3 The Finance Department with make settlements for P-Card purchases with the Bank.
1.4 Department Directors may request that City personnel be issued a P-Card if it is deemed necessary for their role. The request should recommend purchase limits as well as the default GL account code to which transactions will be charged. Requests should be forwarded to the P-Card Administrator for Finance Department approval.
1.5 Depending on the employee or official receiving the P-Card, the P-Card may be restricted to specific Merchant Category Codes.
1.6 Non-City personnel, temporary/seasonal employees, and interns are not eligible for a P-Card.
1.7 Upon review and approval by the Finance Department, the P-Card Administrator will notify the Bank to issue the P-Card.
1.8 All approved Cardholders must attend a training class on Policy and proper use of the P-Card prior to receiving their card.
1.8.1 The approved Cardholder will be issued a copy of this P-Card Program Policy and the P-Card Procedures Manual and be required to sign an agreement to indicate that the Cardholder understands these policies and procedures.
1.8.2 The Finance Department shall maintain records of all Procurement Card Request Forms.
1.9 Changes to P-Card Information
Packet Page. 1946
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 44 of 99
1.9.1 Once a P-Card is issued, it is the Cardholder’s responsibility to notify the PCard Administrator of any change in the Cardholder’s information.
1.9.2 It is the department’s responsibility to notify the P-Card Administrator of any changes to a Cardholder’s assigned Reconciler or Approver.
1.9.3 Purchase Limits may be temporarily changed for a limited amount and duration with the approval of the Department Director and Finance Director or their designee. Permanent changes may only be approved after review by the Finance Director.
1.10 Cardholder Termination/Transfer
1.10.1 If a Cardholder is no longer employed by the City or if a Department Director decides a Cardholder no longer needs a P-Card, it is the department’s responsibility to collect the Cardholder’s P-Card and complete the appropriate documentation. The P-Card will be immediately cut in half, and both the destroyed P-Card and documentation will be forwarded to the P-Card Administrator, who will notify the Bank to delete the P-Card.
1.10.2 Prior to transferring to another department of the City, the Cardholder is to return their P-Card to the issuing department. The P-Card will be cut in half and the appropriate documentation completed by the department. Both the destroyed P-Card and documentation will be forwarded to the P-Card Administrator, who will notify the Bank to delete the P-Card. The Cardholder’s new department may request a new P-Card be issued if necessary for the employee’s role.
1.11 Authorized P-Card Use
1.11.1 Each P-Card issued will be embossed with the Cardholder’s name and should ONLY be used by the Cardholder. NO OTHER PERSON IS AUTHORIZED to use the card. The Cardholder may make transactions on behalf of others in their department/division. However, the Cardholder is responsible for ALL purchases charged to their card.
1.11.2 The total value of a transaction will not exceed a Cardholder’s single purchase limit. Payment for a purchase SHALL NOT be split into multiple transaction to stay within the single purchase limit. Limits may be permanently or temporarily changed with proper approval. (See 5.9.3)
1.11.3 The Cardholder must obtain ITEMIZED vendor receipts, documentation of telephone orders, and/or copies of mail orders.
1.12 Prohibited P-Card Use
1.12.1 The P-Card MAY NOT BE USED for the following:
a. Personal purchases or for personal identification.
b. A single purchase that exceeds the Cardholder’s single purchase limit. c. Automotive Fuel unless authorized (see the City’s Travel Policy). d. Meals with limited exceptions (See Section 7.0)
e. Gift Cards.
f. Cash Advances.
g. Any City Fines or Fees.
h. Alcoholic Beverages.
Packet Page. 1947
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 45 of 99 i. Flowers, unless authorized by the City Manager and Finance Director.
Catering, unless the food is being dropped off for an approved City event. j. Payments under a City contract; these payments must be made through the regular Accounts Payable process, or the contract and Purchase Order will not be properly charged.
1.12.2 Accidental Use of P-Card. Any cardholder who accidentally charges a personal item to a City P-Card instead of their personal credit card must immediately notify their supervisor and the P-Card administrator. They must submit the receipt and repayment to the City via the Purchasing Division within ten (10) business days. A second accidental charge will result in a review by the Department Director and the Finance Director. Following review, the Finance Director may take action up to and including suspension or revocation of the Cardholder’s City P-Card privileges.
1.12.3 Unauthorized Purchases and Careless Use. Cardholders who make unauthorized purchases or carelessly use their P-Card will be liable to the City for the total dollar amount of such purchases. Misuse of a City P-Card will result in the Cardholder’s City P-Card privileges being revoked and may be subject to disciplinary action up to and including dismissal.
1.12.4 Intentional Misuse. The intentional use of a City P-Card to acquire or purchase goods and/or services for other than official use of the City is fraudulent. An employee guilty of fraudulent use of a City P-Card may be dismissed and may be subject to legal action.
1.13 Card Security
1.13.1 It is the Cardholder’s responsibility to safeguard their P-Card to the same degree that the Cardholder safeguards their personal credit information.
1.13.2 The Cardholder must not allow anyone to use their card. A violation of this trust will result in the Cardholder’s P-Card privileges being revoked as well as potential disciplinary action.
1.14 Lost or Stolen Cards and Fraud
1.14.1 Cardholders MUST immediately report a lost or stolen P-Card directly to the Bank and the P-Card Administrator. The Bank will inactivate the existing card and issue a new card that will be mailed to the P-Card Administrator.
1.14.2 If the original card is later found or recovered by the Cardholder after being reported lost or stolen, the card will be cut in half and given to the P-Card Administrator.
1.14.3 If a cardholder suspects fraud and has not already been contacted by the bank via telephone or email, the cardholder and/or reconciler MUST immediately contact the bank by calling the 1-800 number on the back of the cardholder’s card to report the suspected fraud. The cardholder and/or reconciler must then inform the P-Card Administrator of the fraud and what actions were executed by the bank to safeguard the card.
Packet Page. 1948
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 46 of 99
1.15 Recordkeeping/Reconciliation
1.15.1 Itemized Receipts. It is the Cardholder’s responsibility to obtain an ITEMIZED receipt whenever a P-Card purchase is made – either in-person by telephone, or over the internet and check the receipt for accuracy. A summary receipt is not acceptable.
1.15.2 Sales Tax. If sales tax has not been charged on taxable tangible goods, the Cardholder should notify the Finance Department and make a note on the receipt so that the Finance Department can pay the appropriate tax.
1.15.3 Providing Receipts to Reconciler. If a Reconciler is used to reconcile a Cardholder’s transaction, the Cardholder will provide receipts for transactions to the Reconciler on a timely on-going basis, not to exceed five (5) business days after the charge is made, or after the Cardholder returns from travel on City Business in order to give the Reconciler time to reconcile receipts and meet required deadlines.
1.15.4 No Itemized Receipt. If the Cardholder does not have an ITEMIZED receipt for a transaction, he/she will provide a memo stating that they were unable to obtain or that they lost the original itemized receipt. The memo shall include details of the transaction including the vendor’s name, date of purchase, description of the item(s) purchased, and the purpose of the purchase. The Cardholder must also include the reason for the missing receipt. The Cardholder must obtain the Department Director’s signature on the memo and submit the signed memo in lieu of the actual receipt to their reconciler or attach to the transaction in the financial system. Also, the words “No Itemized Receipt” need to be a part of the transaction’s charge description.
1.15.5 Missing Receipt. If a Cardholder does not provide an itemized receipt OR a missing receipt memo for a transaction, the Cardholder may be financially responsible for the purchase amount of the transaction.
1.15.6 General Ledger Import and Reconciliation. P-Card transaction will be imported into the GL each month. It is the Cardholder and/or Reconciler’s responsibility to review these transactions on a timely basis, code the purchase to the appropriate GL account, make any necessary adjustment, and scan and attach the supporting receipts and documentation into the banking system for backup. The transaction will then be released for approval. If no adjustment is made, the entire transaction will be charged to be default GL code established upon issue of the card (see Section 5.4). All transactions must be reviewed, reconciled and released for approval within the first five (5) calendar days of the month (see Section 5.16.3).
1.15.7 Approval. Once a monthly statement has been released for approval by the Cardholder or Reconciler, it will be approved by the Approver. By approving the statement, the Approver is attesting to the appropriate purchase of the goods and/or services for official use by the City. If the transaction is not in compliance with the P-Card Policy, the matter will be brought to the Packet Page. 1949
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 47 of 99 attention of the P-Card administrator, the Department Director, and the Finance Director to be resolved in a manner consistent with this Policy.
1.15.8 Returns. If a Cardholder returns an item, it is their responsibility to ensure that a credit is issued back to their P-Card. If a Reconciler reconciles the Cardholder’s transaction, the Reconciler should be made aware of the credit and follow up if the credit is not received.
1.15.9 Unauthorized Charges. If a Cardholder does not recognize a transaction, they must first contact the vendor to find out what was purchased and attempt to resolve the charge with the vendor before disputing it with the bank. If the transaction needs to be disputed after contacting the vendor, it is the Cardholder’s and/or Reconciler’s responsibility to complete appropriate documentation and submit to the P-Card Administrator. It is also the Cardholder’s and/or Reconciler’s responsibility to track the progress of the dispute until it is resolved. The P-Card Administrator will keep the Cardholder or Reconciler, if applicable, informed of any information received from the bank regarding the dispute.
5.16 Deadlines
5.16.1 P-Card transactions will post to the Bank 1-3 business days following the transaction.
5.16.2 It is the Cardholder and/or Reconciler’s responsibility to review and reconcile the P-Card transaction on a timely on-going basis.
5.16.3 Receipts should be reconciled no less frequently than every two weeks.
Finance staff will send reminder emails to Cardholders and Reconcilers with outstanding transactions.
5.16.4 Monthly Statements are to be reviewed, reconciled, and released for approval within the first five (5) calendar days of the following month.
5.16.5 Once released, P-Card transaction must be approved by the Approver within the first seven (7) calendar days of the Cardholder review.
5.16.6 All P-Card transactions for the previous month must be approved and posted by Finance before the 15th of the following month.
6.0 Compliance
6.1 Finance staff will conduct audits of P-Card transactions both randomly and selectively to ensure purchases are made in accordance with the Policy.
6.2 Failure to comply with this Policy may result in the Cardholder’s P-Card privileges being revoked and/or disciplinary action up to and including dismissal.
7.0 Meal Exceptions
7.1 Business Purpose Meals. Business purpose meals are meals purchased by a City employee or elected official for official city business.
7.1.1 Documentation. Documentation is required for a business purpose meal:
a. An ITEMIZED receipt.
b. A description of the business purpose of the meal. The description should be thorough enough to pass audit scrutiny. For example: “Development Packet Page. 1950
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 48 of 99 meeting to discuss vacant properties” is acceptable. “Business Meeting,” “Development Meeting,” or other descriptions that do not provide the actual purpose of the meeting are not acceptable.
c. A list of all attendees of the meeting, first and last name. The list should either be written on the receipt (legibly) or attached.
7.2 Meals with Traveling. Meals while traveling on City business are paid based on perdiem rates as indicated in the City’s Travel Policy. Meals while traveling charged to a PCard in excess of the per diem amount must be reimbursed to the City within ten (10) business days of the completed reconciliation.
7.3 Tipping. Tips added to meals on a P-Card should not be more than 20% Any amount more than 20% must be reimbursed to the City by the Cardholder within ten (10) business days of the charge posting to the City’s financial system.
7.4 Prohibited Meals.
7.4.1 Meals for Personal Consumption. It is expressly prohibited for employees or elected officials to purchase any meal: breakfast, lunch, dinner, or any other food for personal consumption on their City P-Card unless they are traveling overnight on City Business.
The IRS deems meals that are paid for by an employer while not “traveling away from home” to taxable wages. IRS Publication 5137 (Rev. 2-2020)
8.0 Exceptions
These general policies are not expected to address every issue, exception, or contingency that may arise in the use of the City P-Card. Accordingly, the basic standard that should always prevail in dealing with exceptions is the exercise of good judgement in the use and stewardship of the City’s resources. Unless otherwise specified herein, exceptions for employees will require the approval of the City Manager, the Assistant City Manager, or the Finance Director; exceptions for elected officials will require approval of City Council at a regular meeting of the Mayor and City Council.
Responsibilities:
The Department Director shall be responsible for determining which staff members can be issued a P-Card. The business need for obtaining a card should be carefully considered to limit the number of cards issued.
Card limits should be as low as possible while still accomplishing business needs. Pursuant to the Cardholder Agreement, each individual cardholder is ultimately responsible for their purchases.
The following is a chart showing the City's standard card dollar limits for a single transaction and monthly dollar limits; however, consideration may be given for other card limits if required for special circumstances:
Packet Page. 1951
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 49 of 99 Standard Card Limits
Single Purchase
Transaction Monthly Dollar Limit
$500 $2,500
$1,000 $5,000
$1,500 $5,000
$2,500 $10,000
Card Limits for emergency and disaster purchasing by the Finance Department and/or Emergency Management Operations personnel will be determined on an individual basis, based on FEMA best practices and guidelines.
To avoid confusing a P-Card with personal credit cards, each Cardholder will be provided a PCard embossed with both the Cardholder's name and the "City of San Bernardino," along with the City's logo.
ANY USE OF THE P-CARD IS RESTRICTED TO THE CARDHOLDER. THE USE OF THE P-CARD FOR
ANY PURPOSE OTHER THAN OFFICIAL CITY BUSINESS EXPENSES IS PROHIBITED AND IS GROUNDS FOR DISCIPLINE UP TO AND INCLUDING TERMINATION. IN ADDITION TO
DISCIPLINE, AND POTENTIAL CRIMINAL CHARGES, THE CARDHOLDER MUST REIMBURSE THE CITY FOR UNAUTHORIZED CHARGES. THIS CARD MAY NOT BE USED FOR PERSONAL PURCHASES - NO EXCEPTIONS.
The Cardholder must attend training and carefully review the training documents provided with the P-Card. Cardholders must sign and abide by the City of San Bernardino Cardholder Agreement and comply with the guidelines of this Policy.
Each P-Card will be assigned specific categories of purchases, as well as single transaction and monthly dollar limits. Each Department's overall P-Card exposure will also be verified against its annual approved Operating Budget.
P-Card Procedures:
To apply for a P-Card, departments must complete the following forms:
1. Cardholder Agreement
2. Cardholder Account Set-up
3. Approving Official Account Set-up form
a. If the P-Card Agreement is a new approving official, which indicates the maximum dollar amount for each single transaction and a total monthly dollar amount.
All P-Card forms are available on InsideSB, the employee intranet site under the section "Forms and Publications" of the Finance Department. The PSM will review the Cardholder application documents and will approve or reject, the applicant based on Policy guidelines.
Packet Page. 1952
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 50 of 99 To request an increase or modification to the P-Card limits, the Department Director must first approve the City's Purchase Card Modification/Increase form.
The Policy is a supplement to the procurement process. As with other procurement methods, the following conditions must be met when using the P-Card:
The P-Card should be used whenever possible in-lieu of petty cash, emergency purchase orders, or purchase requisitions when the item or group of items is under the transaction limit. Items should always be purchased at the lowest cost that meets the Departments basic needs.
Normal purchasing procedures must be followed if a purchase will exceed a limit established.
Each transaction may be comprised of multiple items, but the total, including tax and shipping, cannot exceed the single transaction dollar limit on the P-Card; nor exceed the monthly dollar limit. If either of these limits is exceeded, the transaction will be declined by the card issuing bank.
All charges must be supported by receipts or some written documentation. A Purchasing Card Receipt Detail form must be used to document all Meals, Travel, Meetings, and Event transactions made using a P-Card. All of the following information must be provided before Finance will approve a business expense.
Packet Page. 1953
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 51 of 99
CITY OF SAN BERNARDINO ALLOWABLE PURCHASES
Please use the following list as a guideline for allowable P-Card purchases.
PURCHASE TYPE DESCRIPTION CATEGORY
ASSOCIATION DUES,
PROFESSIONAL OR
INDUSTRY
MEMBERSHIPS
Dues may be charged if related to City business and with approval from Supervisor/Manager or Director.
ALLOWABLE
CITY BUSINESS MEALS Purchase of food for business requirements.
Receipts including the names and affiliations for all members of the party whose meals are paid for using the purchasing card, and then state the business purpose for the expense. You must include an itemized receipt showing food and beverage items purchased, rather than the receipt showing only the total.
The use of the P-Card for catering services is generally prohibited, as it is considered a service, unless the food is only dropped off.
ALLOWABLE
CITY BUSINESS TRAVEL City travel related purchases including airline tickets, hotel accommodations, car rentals, business meals, etc. Employee shall use their own credit card for any personal expenses, such as personal phone calls, video rentals, upgrades, etc.
ALLOWABLE
COMPUTER AND
TELEPHONE
ACCESSORIES
Information technology and telephone consumable items for City Business: flash drives, toner cartridges, diskettes, zip disks, COs, DVDs, tape cartridges, mouse, keyboards, USB peripherals, telephone headsets and paper DO NOT require Information Technology Department (IT) preapproval.
ALLOWABLE
CITY SPONSORED
EVENTS
Items necessary to conduct a City sponsored event. ALLOWABLE GENERAL SUPPLIES Items for City business not prohibited or in conflict with negotiated discounts such as Staples. Use Staples card or on-line ordering system.
ALLOWABLE
ON-LINE AUCTION
PURCHASES
On-line auction purchases for City business needs for items not on a City prohibited list may be purchased with approval from
Supervisor/Manager or Director.
ALLOWABLE
PROFESSIONAL
DEVELOPMENT
Allowable with approval from Supervisor/Manager or Director. ALLOWABLE
SEMINARS, CONFERENCES
WEBINARS, TRAINING
Seminars, training, books, etc., that have been preapproved by the Director or City Manager and budgeted for by the Department.
ALLOWABLE
SUPPLIES FOR CITY
MAINTENANCE AND
REPAIRS
Maintenance and repair supplies, including maintenance tools and equipment; janitorial supplies and other maintenance-related expenses.
ALLOWABLE
Packet Page. 1954
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 52 of 99 The City at its sole discretion may apply other restrictions and the Purchasing Card Policy shall be updated as needed by the Finance Department.
Acknowledgement
Before being issued a City of San Bernardino purchasing card or online management account authority under this policy, all authorized users shall sign and accept below indicating that such user will use such cards only in accordance with the policies of the city and with the requirements of state law.
Name Printed Signature
Date Role
Packet Page. 1955
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 53 of 99 City of San Bernardino Travel Authority and Expense Reimbursement Policy (Approved Resolution 2021-164)
Scope: This Policy applies to all employees and Elected Officials requesting reimbursement for expenses incurred on behalf of the City.
Exemption from Scope
None.
Policy:
1.0 DEFINITIONS
1.1 Appropriate Expense
An Expense that is suitable or fitting for a particular valid business purpose
1.2 Allowable Expense
A necessary, reasonable, and appropriate expense incurred for the primary benefit of City business and therefore permitted to be reimbursed or directly charged based on the permission of the City.
1.3 Available Budget
The total amount of funds available in the General Ledger expense line to be charged for the expense incurred by the employee or Elected Official
1.4 Necessary
Minimum purchase or service required to achieve a particular business objective.
1.5 Original Receipt
The original merchant receipt or invoice issued by the supplier or service provider to document and substantiate the business transaction. A digital image of the original receipt is allowable if it is legible, and the paper receipt is destroyed.
1.6 Reasonable
An expense that is ordinary and reflects and prudent decision to incur the expense on behalf of City business. Not extreme or excessive.
1.7 Request
Reimbursement Request or Request for Reimbursement.
1.8 Substantiation
Documentation to support an incurred business expense that includes the original receipt, documentation of business purpose, names of persons in attendance, and appropriate report of the expense for the incurred cost.
Packet Page. 1956
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 54 of 99
2.0 CRITERIA FOR DETERMINING AN ALLOWABLE EXPENSE
2.1 Considerations. To be reimbursed to an individual, a business expense must be:
2.1.1 Necessary to perform a valid business purpose fulfilling the mission of the City.
An expense is necessary if there is a valid business purpose required to fulfill the mission of the City. The primary benefit of a necessary business expense is the City, not the individual. A necessary expense is a minimum of purchase or service required to achieve a valid business objective.
2.1.2 Reasonable in that the expense is not extreme or excessive, and reflects a prudent decision to incur the expense. Reasonable means the amount that normally would be spent in a specific situation. An expense is considered reasonable if it is not extreme or excessive and reflects a prudent decision and action to incur the expense. This Policy does not define precise dollar amounts for what constitutes reasonable, because the reasonableness of an expense depends upon many relevant factors including the business purpose, the context, the source of funds, and the circumstances surrounding the expenditure.
2.1.3 Appropriate in that the expense is suitable and fitting in the context of the valid business purpose. Costs are appropriate if they are suitable or fitting for a particular business purpose. For a cost to be appropriate it is also presumed that there is a valid business purpose, which is normally the responsibility of the department to determine.
The following questions should be considered when determining the appropriateness of costs:
a. Could the cost be comfortably defended under public scrutiny? b. Would you be confident if the cost were selected for audit? c. Would you be comfortable reading about it in the newspaper? d. Has it been adequately documented?
2.1.4 Allowable according to the terms of any City policy. If a business expense is necessary, reasonable, and appropriate, the City will generally consider it an allowable expense, subject to approval.
2.1.4 (1) Allowable Food and Meals. Meals that meet all the above criteria must also meet IRS rules to be reimbursable and non-taxable to the employee or Elected Official. See Section 4.0 FOOD AND MEALS.
Packet Page. 1957
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 55 of 99
3.0 SUBSTANTIATION OF EXPENSE
For a business expense to be approved and reimbursed, it must be properly substantiated.
3.1 Clear, Complete and Accurate. All City-related business expenses require clear, complete, and accurate supporting documentation. The collective documentation associated with your expenses should answer who, what, where, when, and why of each transaction (as applicable). In your documentation, include:
a. Who attended (first and last names);
b. What purpose the expenditure served;
c. Why the expense was necessary, or how if furthered the City’s goals; and d. When and where the expense took place.
All documentation should be written in a way that will be understood by anyone who reviews it, whether today or many years from now. This includes a person outside of the City who is unfamiliar with a department’s work or jargon.
3.2 Business Purpose Examples.
3.2.1 The following would be considered incomplete business purpose descriptions for substantiation:
a. Dinner with Marcus G., economic development-PPP; Miyagi Sushi b. Lunch with Echo Group
c. Printing-sidewalk vending
3.2.2 The following are examples of clear, concise, and complete business purpose descriptions for substantiation:
a. Dinner with Marcus Grimm, economic development – Public-Private Partnership; Miyagi Sushi.
b. Lunch with Echo Group – Anh Nguyen, Felix Baca, and Ron Watson, re:
development in canyon; Jose’s Mexican Food.
c. Extra copies of sidewalk vending brochures printed for event at Orange Show.
3.2.3 Clear examples are important so that auditors and the public, even years from now, can understand why a purchase was made. For instance, in the examples above, printing services are usually purchased through the normal course of City business. It is only through the normal course of City business. It is only through the business description that clearly states “extra copies” printed for “event” that someone reading the backup material would understand the business need for printing outside a normal business process.
Packet Page. 1958
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 56 of 99
4.0 FOOD AND MEALS
Food and meal purchases are covered under this policy, the City’s Procurement Card (“P-Card”) Policy and the City’s Travel Policy. Because of IRS rules, any City purchase or reimbursement of meals require additional documentation.
4.1 General Eligibility. Purchases of food and meals are eligible for reimbursement if they are part of overnight travel (See Travel Policy), business meetings (Business Meals, Section 4.3) as allowed for Elected Officials or as approved by the City Manager, or to provide meals in the case of all-day meetings or scheduling that requires meetings to be held over a mealtime (Meals Provided During Work, Section
4.4). Any meal reimbursement will be in accordance with IRS rules.
4.2 Meals During Travel. For details about meals during travel for City business, see the City’s Travel Policy.
4.3 Business Meals. Meals that are purchased as part of business meeting are allowed for Elected Officials or as approved by the City Manager. These meals are governed under IRS rules (see IRS Pub. 5137) and require specific documentation
4.3.1 IRS Requirements
a. Business Connections. A description of the business purpose of the meal. The description should be through enough to pass audit scrutiny. See Section 5.2 for examples
b. Adequate Accounting within a “Reasonable” Period of Time. While the IRS does not specify a length of time for submitting receipts for reimbursement; this policy requires that any request for reimbursement be submitted no later than 60 days after the date of purchase.
c. Excess Reimbursements are Returned within a “Reasonable” Period of Time.
If an employee or Elected Official finds that they have been reimbursed more than amount owed; the excess should be remitted to the City with ten (10) business days of discovering the error.
4.3.2 Audit and Transparency Requirements
a. Itemized Receipt. The meal receipt MUST be itemized. Reimbursement will not be provided for summary receipts.
b. Names of Attendees. A list of all attendees of the meeting, first and last name.
Packet Page. 1959
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 57 of 99
4.3.3 Tipping. A maximum of 20% will be reimbursed.
4.4 Meals Provided During Work. The purchase/reimbursement of meals/food for staff during work hours is allowed under the following circumstances:
4.4.1 Working Meals. Working meals must be occasional and require preapproval by the Department Director. In the case of an employee meeting held during mealtime, a good faith attempt should be made by the meeting organizer to schedule the meeting at a time that does not overlap mealtime.
The following criteria must be met for a working meal to be reimbursable:
4.4.1 (1) City Business Purpose. There must be a clearly stated City business purpose for the meeting/working meal.
4.4.1 (2) List of Attendees. A list of all attendees (first and last name), and department, must be included.
4.4.1 (3) Reasonable Cost. As stewards of taxpayer dollars, it is incumbent upon all City employees and Elected Officials to use City funds wisely.
Food brought in for working lunches should be reasonably priced. “Reasonable cost” while not defined in this Policy in actual dollar terms, is defined as what would be paid by a prudent person under the same circumstances. Consider the Appropriate Cost questions from Section 2.1.3 when determining reasonable cost:
Could the cost be comfortably defended under public scrutiny? Would you be confident if the cost were selected for audit? Would you be comfortable reading about it in the newspaper?
4.4.1 (4) Tipping. No more than a 20% tip will be reimbursed
4.5 Prohibited Meals and Food.
4.5.1 Alcohol. The purchase of alcohol is not eligible for reimbursement.
4.5.2 Taxable Fringe Benefits. Because IRS rules require that they be included in taxable wages as fringe benefits, reimbursements will not be provided for the following categories of meals (See IRS Pub. 5137 for details):
4.5.2 (1) Individual Meals. Meals purchased for or by an individual employee or Elected Official will not be reimbursed (Except for during overnight travel, which is covered under the Travel Policy. NOTE: if an individual meal is purchased, whether by p-card or erroneously reimbursed, and the funds are not returned to the City, the cost of the meal will be Packet Page. 1960
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 58 of 99 included in the employee or Elected Official’s taxable wages as required by the IRS.
4.5.2 (2) Meals while on Day Trips. Meals purchased during day trips for work (not overnight) are not reimbursable, even if the trip extends beyond the regular workday.
5.0 AVAILABLE BUDGET AND PRE-APPROVALS
5.1 Verify Available Budget. It is the responsibility of the employee or the Elected Official to verify that there is adequate available budget for the planned expense before making any purchase on behalf of the City.
5.2 Pre-Approval. Employees purchasing food or tangible goods for a City purpose should have the approval of their immediate supervisor or Department Director before expending personal funds whenever possible.
5.2.1 Establishes City Purpose. By obtaining pre-approval, the City purpose of the expense is already established.
5.2.2 Forms of Pre-Approval. Pre-approval is for the protection of the employee making the purchase. By obtaining pre-approval, the employee can be reasonably assured that the personal funds expended for a City business purpose will be reimbursed. As such, it is the interest of the employee to ensure that the pre-approval:
5.2.2 (1) Includes the name of the person making the approval.
5.2.2 (2) Clearly identifies the specific expense that is pre-approved (may not be a “blanket” approval of multiple expenses).
5.2.2 (3) Can be printed or electronically attached to the request for reimbursement.
5.2.3 Verification of allowable Expense. If an employee, supervisor, or Department Director is uncertain regarding the allowability of the expense for reimbursement, they should contract Finance for verification.
5.2.4 Exemption of Pre-Approval Requirement for Elected Officials. Elected Officials are not required to obtain pre-approval for City business-related expenses except in the case of travel (See Travel Policy). However, it is incumbent upon the Elected Official to ensure that there is adequate budget available to cover any expenses before they are incurred.
Packet Page. 1961
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 59 of 99
6.0 APPROVAL AND REIMBURSEMENT
Requests for reimbursements should be submitted with original receipts attached and all appropriate documentation as discussed above to meet IRS, audit, and City transparency standards. Once this is complete, the request may be submitted for approval reimbursement.
6.1 Review and Approval – Employee Request for Reimbursement
6.1.1 Approval. Employees requests for reimbursement will go through approvals in the Department as follows – the employee’s immediate supervisor, and Department Director review and approval. After the Departmental approvals are complete, the Request will be moved to Finance for final approval and reimbursement. If Finance staff questions any expenses, they will escalate the Request to the Finance Director for review and a decision as to the allowability of the expense under the Policy. Once any questions are resolved, the Request will be moved to Accounts Payable for reimbursement.
6.1.1. (1) Finance Director Decision. The Finance Director’s decision as to the allowability of an expense will be final.
a. Rejected Reimbursement Memo. If the Finance Director determines that an expense is not reimbursable, they will draft a memo to the employee and the Department Director explaining the reason.
b. Option to Appeal. An employee may appeal the decision of the Finance Director to the City Manager.
6.1.1 (2) Appeal to City Manager. If an employee disagrees with the Finance Director’s decision, they may appeal the decision to the City Manager within ten (10) business days of the employee receiving the Rejected Reimbursement Memo.
a. Appeal Process. The employees making the appeal must submit a memo to the City Manager detailing why they disagree with the Finance Director’s decision. The memo should include specific references to this policy
b. Language and Accessibility. If the employee believes that they require help to write the memo, help will be provided by Human Resources personnel unconnected to this process. The deadline to submit the memo will be extended to accommodate for any scheduling issue delays. The deadline of ten (10) days will be Packet Page. 1962
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 60 of 99 extended only in the case of a language or accessibility issue in completing the memo.
c. City Manager Decision. The City Manager’s decision will be final
6.1.1 (3) Taxability. If the City Manager allows reimbursement of an expense that the Finance Director has identified and rejected for reimbursement as a fringe benefit under IRS Pub. 5137 the amount will be reimbursed, and Finance will add the amount of the reimbursement to the employee’s taxable wages, as required by IRS rules regarding fringe benefits.
6.1.2 Payment. Accounts Payable will cut a check for reimbursement if there is adequate budget available. If there is not adequate budget, the Request will be rejected and returned to the Department.
6.2 Review and Approval – Elected Official Request for Reimbursement
6.2.1 Approval. Elected Official Requests for Reimbursement will go through approvals as follows – the Council Supervisor/Mayor’s Executive Assistant will review the Request, verify available budget, and escalate any questioned expenses to the Finance Director for review and a decision as to the allowability of the expense under this Policy. If there are not questioned expenses, the Council Supervisor/Mayor’s Executive Assistant will approve the Request and move it to Finance for final approval and reimbursement. If Finance staff questions any expenses, they may escalate the Request to the Finance Director for further review as to the allowability of the expense under this policy.
6.2.2 Questioned Costs. If the Finance Director finds that an expense submitted for reimbursement is not reimbursable under this Policy, and the Elected Official disagrees, the Elected Official may bring the expense before the Mayor and City Council during a regular meeting for a final determination of allowability (see Section 6.3.1).
6.2.2 (1) Taxability. If the Mayor and Council vote to allow reimbursement of an expense that the Finance Director has identified and rejected for reimbursement as a fringe benefit under IRS Pub. 5137, the amount will be reimbursed, and Finance will ad the amount of the reimbursement to the Elected Official’s taxable wages, as required by IRS rules regarding fringe benefits.
Packet Page. 1963
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 61 of 99
6.2.3 Payment. Accounts Payable will cut a check for reimbursement if there is adequate budget available. If there is not adequate budget, the Request will be rejected and returned to the Elected Official.
6.2.3 (1) Insufficient Budget. If there is insufficient budget in the appropriate line item to cover the expense, the Elected Official has two options:
a. Request that budget be transferred from another line item within the Elected Official’s department budget in an amount sufficient to cover the expense, or
b. Withdraw the Request or Reimbursement.
6.3 Rejected Reimbursement Requests to City Council – Elected Officials Only
6.3.1 Bringing a Rejected Reimbursement Request Before City Council
6.3.1 (1) Documentation. For a Rejected Reimbursement Request to be considered by City Council, the Elected Official must provide in advance of the meeting:
a. Substantiation of the Expense, see Section 3.0
b. All written communication (email, etc.) from City staff documenting the reason for rejecting the Request.
6.3.1 (2) Decision. The decision of City Council will be final. a. Abstain. The Elected Official requesting the reimbursement shall abstain from the vote.
b. Tie Vote. If the vote results in a tie, the Mayor will cast the deciding vote unless it is the Mayor requesting the reimbursement. If the vote results in a tie, the rejection will stand.
c. Council Decline. Council may decline to hear the Reimbursement Request by a majority vote. If Council declines to hear the Request, the rejection will stand.
d. Taxability. See Section 6.2.2 (1)
Packet Page. 1964
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 62 of 99 SECTION 3: PROCEDURES
Procedures:
Explain the “how” of decision making. They provide step-by-step instructions for specific routine tasks. They may include a checklist or process steps to follow. Procedures help guide policies. Procedures give instructions on how to utilize policies.
The Purpose of Procedures:
At the very least, procedures should outline the following information:
Who is responsible for each task.
What steps need to be taken.
Who the responsible party reports to.
What makes a good procedure?
Clear, concise, and simple language.
Addresses how to implement policies.
Takes user insight into account.
Providing options when feasible, not unnecessarily restrictive.
Exceptions to the Bidding Process
Current Emergency Purchases: 3.04.075
In case of an emergency, which is so urgent as to preclude advance action by the Mayor and Common Council and which requires purchase of supplies, materials, equipment and contractual service, The City Administrator shall have the authority to authorize the Purchasing Agent to secure the open market at the lowest obtainable price and such supplies, materials equipment or contractual services. This emergency authority shall extend to all purchases; irrespective of the fact that amount might exceed the authorized limitation for open market purchases. In all instances a full explanation of the emergency circumstances shall be filed with the Mayor and Common Council.
If emergency work is performed, the Purchasing Division should be notified by the next business day. This will allow the Purchasing Division to properly ratify purchase orders.
What Constitutes as an Emergency:
A public calamity
An immediate need to prepare for national or local defense.
Packet Page. 1965
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 63 of 99 The breakdown of machinery or equipment on service impediment which will require immediate resolution.
A hazard or peril to public health or welfare
A situation where the city is unable to perform services for the public.
Steps to take:
If the emergency occurs during business hours, The Purchasing Division shall be notified the same day.
If an emergency occurs during non-working hours, purchasing shall be notified during the next business day.
Purchasing contracts vendor or delegates to department to secure rough order magnitude (ROM) written estimate. Purchasing or delegate notifies vendor to proceed.
Only licensed and insured vendors can be contracted with, as appropriate.
A purchasing order with a Not to Exceed Amount (NTE) shall be issued within 5 – 10 days.
If feasible, a Vendor service Agreement to follow.
If ROM exceed $100,000, council approval is required even if after the fact.
After the emergency is mitigated, if additional work is required, the normal competitive procurement procedure is to be followed.
Contractors must be registered with DIR prior to the bid opening, to qualify to win the bid.
Municipal Code §3.04.070 Emergency Purchases
In case of an emergency, which is so urgent as to preclude advance action by the Mayor and City Council and which requires purchase of supplies, materials, equipment or contractual services, the City Manager shall have the authority to authorize securing in the open market any such supplies, materials, equipment or contractual services. This emergency authority shall extend to all purchases, irrespective of the fact that the amount might exceed the authorized thresholds outlined in Section 3.05.020 of the Municipal Code. An explanation of the emergency circumstances shall be filed with the Mayor and City Council within forty-eight (48) hours of the emergency purchase.
Packet Page. 1966
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 64 of 99 The Purchasing Process
Department Led Bids for Purchases between $10,001 and $40,000:
Please see Section 2: Polices, for Purchasing Expenditure and Approval Thresholds.
1. Department must contact all vendors/contractors/consultants via telephone, teleconference, or email for a quote request.
a. Please note if verbal requests for quotes are made, a written confirmation and/or follow-up must be sent to the vendors/contractors/consultants.
2. Department must provide all vendors/contractors/consultants with same SOW and specifications for the services/products/equipment that is needed. a. This for transparency and audit purposes
3. Department must provide all vendors/contractors/consultants with a due date/deadline to return their bid/quote. Please see the definition and detailed example of a valid quote.
a. Quote can be electronic in Excel, Word and PDF format. b. The date should be noted on the quote.
4. Departments must evaluate the bids submitted, showing documentation of the cost comparison.
5. Once bid is awarded, Department may process a purchase order for purchases between $10,001 up to $40,000. All bid documents must be attached to the PO in New World along with the certificate of insurance (Endorsements and Waivers of Subrogation), and current W9 with date and signature, if services are being provided to the City. a. It is the discretion of the Agency or Department Director to process an agreement for purchases between $10,001 and $40,000.
i. Agreement templates are available from the Purchasing Division. ii. If an agreement is required, please contact the Purchasing Division for review of the agreement before it is uploaded to DocuSign for signature.
Packet Page. 1967
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 65 of 99 Telephone Quotes
If quotes are requested verbally, they should always be followed up by email, fax, or text, if email is not an option. The only time that a follow-up is not required is under the following unusual conditions:
Wi-fi servers are inoperable for both parties; therefore, emails can’t be received and sent.
Fax is not available.
The post office and other delivery courier services are not available.
Text messages are not an option.
When requesting a phone quote from a vendor, please follow the following instructions:
Pre-write verbiage or a script in order to be transparent and ask each vendor for the same information.
Make sure to document the time and date the vendor was contacted.
Make sure to advise the vendor of the date and time the quotes need to be submitted..
All vendors need to be contacted within the ten (10) business days to ensure pricing is comparable. Prices obtained months apart are not comparable.
Make sure to obtain the vendors contact information in order to send a confirmation email.
If you send a follow-up email, you are much more likely to receive the written back-up for the quote that is required for audit purposes. While verbal quotes are quick and easy, sending a follow-up email takes only a few seconds and saves a lot of headaches later during an audit! Packet Page. 1968
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 66 of 99 Example of an ideal simple quote:
Quotation
Quote Number: Date: May 7, 2021
Company Name: Contact Person and Contact Info.:
Project Title/Number: Total Cost:
Item Description Unit Price Quantity Price
Office Phone System
Instruction Book
Instruction Manual for the
NEC Office Phone System
$XX.XX 40 $XXX.XXX
Total Price $XXX.XX
Thank You very much for giving us the opportunity to quote. We hope to serve your order soon. If you have any questions, feel free to contact us at_______________.
Sincerely,
Contact Title
Contact Name
A valid quote should contain the following information:
Supplier’s business details
Client details
Quote number
Date of issue
A list of services to be provided
What services won’t be provided
Breakdown of costs
Total cost of the project
Variations of (extra costs)
Timelines and completion dates
Factors which may affect the completion date
A place for customers to sign their acceptance
Please Note: City staff should not sign acceptance of a quote. If terms and conditions are attached, the signer may be accepting terms and conditions and obligating the City to terms and conditions that are contrary to the City’s usual terms and conditions. Staff members that have been assigned purchasing and signing authority Packet Page. 1969
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 67 of 99 should be the only individuals signing on behalf of the City. Individuals that have been designated purchasing and signature authority will contact the City’s legal Counsel if necessary to obtain legal advice as to signing pricing, quotes and proposals.
Payment methods, is asking for a deposit
Response Time From Purchasing Agents
1. Please allow at least 72 hours for the Purchasing Division to respond to your requests.
Same day inquiries will be reviewed by urgency and/or priority but responses are not guaranteed the same day.
2. This is to respect and prioritize all duties/tasks for the purchasing staff and most importantly to be able to address all City departments fairly and timely.
3. For projects, please contact purchasing no less than 6 months, but preferably a year or more before your project has to be finalized and ready to go. i. Allowing long lead times assists purchasing with identifying the needs for your department, and it assists with the needs for the City overall. Purchasing may be able to assist with your SOW, identifying suppliers/vendors in the marketplace, and with formulating your department’s purchasing strategy which will reduce potential risks.
4. Please include the purchasing process/plan and timeline in your project presentation to the City Council.
i. This shows the City Council that the departments are collaborating with the Purchasing Division and that citywide staff is accountable for the project. This also gives the City Council more realistic estimated dates and times of when your project can be fully executed.
Packet Page. 1970
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 68 of 99 Purchasing Division Led Bids for all purchases:
1. Quick Quote via Planet Bids: Did you know that a quick quote can be utilized via Planet Bids for small purchases up to $10,000? Quick Quotes can be released with a bid close date within 48 to 72 hours.
a. The department must provide specifications to the Purchasing Division two (2) business days in advance for review and revisions before they would like the Quick Quote bid to be released. b. Departments should always send a detailed request to City Purchasing - - A detailed description of what you want to purchase, should include:
1. Color
2. Size
3. Amount/Quantity
4. Manufacturer Number
5. Name of Manufacturer, etc.
c. Quick Quotes have a turnaround time of 48 to 72 hours.
Quick Quote Process Chart
YES
NO
Department Identifies
Goods/Services to be
purchased
Purchasing will review the
request.
Did Dept. Provide all
relevant information for
Quick Bid to be Processed?
Request to be
returned to dept
for revisions.
Requesting Dept. Revises
request and resends to
purchasing.
Purchasing Dept. will move forward
with Quick Bid Release.
Purchasing Dept. Releases quick
quote with an assigned bid No. Bid
Turnaround is 48 to 72 hours
Bid Closes – Purchasing Reviews Bid
& Advises Dept. of winning
Company, Dept. Creates PO
(Purchasing May draft contract if
required) - Process is not Complete.
Packet Page. 1971
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 69 of 99
2. Request for Quotation (RFQ): RFQ’s can be processed for purchases greater than $10,000. a. Requesting Department must provide RFQ documents to the Purchasing Division seven (7) business days before the requested bid release date, for review and revisions before bid is RFQ is released.
b. Departments should always send a detailed request to the Purchasing Division.
1. A detailed Scope Of Services (SOS)/Scope Of Work (SOW) is to be provided to purchasing. A good, drafted SOS/SOW should answer the questions: What, When, Where, Who, Why & How.
2. A detailed pricing sheet for the vendor to fill out and submit for the RFQ
1. Please Note: If the RFQ request is sent back to the department due to insufficient information, when the request is returned to purchasing, there will be up to five (5) additional business days for review before the RFQ is released. c. RFQs have a minimum turnaround time of 14 business days (from release to closing).
This does not include the evaluation of the bids, bid protest and award protests.
RFQ Process Chart
YES
NO
Did Dept. Provide all
relevant information for
RFQ Bid to be Processed?
Request to be
returned to dept
for revisions.
Requesting Dept. Revises
request and resends to
purchasing.
Purchasing Dept. will move forward
with RFQ Bid Release.
Purchasing Dept. Releases RFQ Bid
with an assigned bid No. Bid
Turnaround is 2 to 4 weeks
Bid Closes – Purchasing Reviews Bid
& Advises Dept. of winning
Company, Dept. Creates PO
(Purchasing will draft contract and
Process for signature Execution
Department Identifies
Goods/Services to be
purchased.
Purchasing will review the
request.
Packet Page. 1972
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 70 of 99
3. Request for Proposal (RFP): The document used to solicit proposals from potential providers (proposers) for contractual goods and services. Price is usually not a primary factor. RFPs provide for the negotiation of all terms, including price, prior to contract award.
An RFP may include a provision for the negotiation of best of final offers, and may be a single or multi-step process. For the City of San Bernardino, RFPs can be processed for purchases above $40,000. RFPs are usually solicited for High Value/High Risk projects and services.
1. The Department should be preparing for an RFP month in advance and contacting the Purchasing Division for advanced notification. RFP documents must be provided to the Purchasing Division no less than fourteen (14) business days in advance, before the requested RFP release date. This is for review and revisions before RFP is released.
2. The Department should always send a detailed request to the City Purchasing Division.
1. A detailed SOS/SOW is to be provided to purchasing. A good, drafted SOS/SOW should answer the questions: What, When, Where, Who, Why & How.
2. A detailed pricing sheet for the vendor to fill out and submit for the RFP.
Please Note: If an RFP request is sent back to the department due to insufficient information, when the RFP request is returned to purchasing, there will be up to five (5) additional business days for review before the RFP is released.
b. Department can require a Bidders Conference (Bid Meeting) to discuss and clarify inquiries from the participating proposers.
c. RFPs have a minimum turnaround time of 30 calendar days (from release to closing).
This does not include the evaluation of the RFPs, any protest and award protests.
See RFP Process Flow Chart on Next Page
Packet Page. 1973
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 71 of 99 RFP Process Chart
Yes
No
Department Identifies
Goods/Services to be
purchased.
Purchasing will review the
request.
Did Dept. Provide all
relevant information for
RFP to be Processed?
Request to be
returned to dept
for revisions.
Requesting Dept. Revises
request and resends to
purchasing.
Purchasing Dept. will move forward
with RFP Bid Release.
Purchasing Dept. Releases RFP Bid
with an assigned bid No. Bid
Turnaround is 4 to 6 weeks
Bid Closes –
Purchasing Reviews: Bid Pricing,
References, Exceptions, Deviations,
Purchasing Draft complete evaluation
Matrix.
Department Reviews: responses and
qualifications of bids submitted.
Evaluation Matrix is reviewed by
Purchasing and Evaluation team, if a Best
and Final Offer (BAFO) is necessary,
Purchasing will contact vendors for
revised bid and deadline to submit BAFO’s
BAFO Closes:
Purchasing Reviews Revised Bid Pricing,
Exceptions, Deviations. Purchasing draft
complete evaluation Matrix
Department Reviews Revised responses
and qualifications of BAFOs submitted.
Purchasing Sends Tentative award to most
responsive/responsible bidder, (Dept. cc’d)
once award accepted.
Purchasing sends finalized matrix to Dept.
so staff report can be drafted. and
qualifications of BAFOs submitted.
Once Agreement has been approved by City
Attorney (If Exceptions were taken) contract
is uploaded to DocuSign for signature
processing.
Once contract has been signed by all parties,
including vendor/consultant/contract, the bid
and contract process is complete.
DONE!!
Packet Page. 1974
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 72 of 99 Request for Information (RFI) or Request for Qualification (RFQual): A nonbinding method whereby a jurisdiction publishes its need for input from interested parties for an upcoming solicitation. A procurement practice used to obtain comments, feedback, or reactions from potential responders (suppliers, contracts) prior to the issuing of a solicitation.
Generally, price or cost is not required. Feedback may include best practices, industry standards, technology issues, etc.
b. The Department requesting an RFI or RFQual should be preparing for the process months in advance and should contact the Purchasing Division for assistance. The Department must provide RFI/RFQual documents to the Purchasing Division fourteen (14) business days in advance of the requested release date, for review and revisions before the RFI or RFQual is released.
c. Departments should always send a detailed request to the City Purchasing Division. d. A detailed SOS/SOW is to be provided to purchasing.
1. A good, drafted SOS/SOW should answer the questions: What, When, Where, Who, Why & How. A detailed pricing sheet is not required for RFIs/RFQuals e. Departments can require a Bidders Conference to discuss and clarify inquiries from the participating respondents.
f. RFI’s/RFQual’s have a minimum turnaround time of 30 calendar days (from release to closing)
Please Note: If an RFI/RFQual request is sent back to a department due to insufficient information, when it is returned to purchasing, there will be up to five (5) additional business days for review before the bid is released. This does not include the evaluation of the RFI/RFQual, any protest and award protests.
Packet Page. 1975
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 73 of 99 RFI/RFQual Process Chart
Yes
NO
PROTEST PROCEDURE
1. Vendors not awarded for a contract have ten (10) business days to formally protest the award. The award should include precise fact and circumstances, and reason for the intent to award to be overturned.
a. The protest must be filed before the awarded contract or purchase order has been issued. The Purchasing Division may not act on a bid protest if it hasn’t been received in a timely manner. If the protest deadline has expired, the vendor will be notified, and the award process will move forward.
2. If the vendor bid protest is appropriately filed, the Purchasing Division may delay the award of a contract or purchase order until the matter is resolved. a. Please note that situations may occur where the delay of an award may not be in the best interest of the City due to emergency and/or time constraints such as the end of the City’s fiscal year or grant funding requirements. In these situations, the City has no obligation to delay or otherwise postpone an award of a purchase order or contract based on a vendor protest. In all cases, the Cities Purchasing Manager reserves the right to make an award when it is determined to be in the best interest of the City of San Bernardino. b. The Purchasing Manager will review the protest and will considered all information submitted with the protest. The purchasing manager will make the final decision in writing by email and will be followed up with a hard copy, or Department
Identifies
Goods/Services to be
purchased.
Purchasing will
review the request.
Did Dept. Provide all
relevant information for
RFP to be Processed?
Request to be
returned to dept
for revisions.
Requesting Dept. Revises
request and resends to
purchasing.
Bid Closes –Purchasing Reviews: Bid
& Advice Dept. of Results. A short
list is created from Results and a
RFP/RFQ is processed for the next
step., (See RFQ/RFP Flow Charts)
Purchasing Dept. will move
forward with RFI Bid Release
Purchasing Dept. Releases RFI
Bid Request with an assigned
bid number. Bid Turnaround
time 30 Calendar Days.
Packet Page. 1976
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 74 of 99 mail the notice to the protesting bidder within thirty (30) business days of confirmed receipt.
3. The Purchasing Manager may refer a protest of a technical nature to the requesting City Department for further clarification, and will prepare a response to the protesting vendor, advising them of the pending action(s), and when a formal response can be expected.
Packet Page. 1977
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 75 of 99
PROTEST FORM AND CONTENT
All protests shall be in writing and state that the vendor is submitting a formal protest, and the protesting vendor is responsible for ensuring that the protest is received within the protest deadlines. If the City does not receive the protest within the specified deadline, the protest may be rejected. The mailing address for all protests is:
City of San Bernardino
Purchasing Division
Attention: Purchasing Manager
290 North “D” Street
San Bernardino, CA. 92401
Include the following information shall be placed in the protest letter. Failure to provide the following information could result in rejection of vendor’s protest:
1. Company name, mailing address, phone number, and name of company individual responsible for submission of the protest
2. Please provide an email address for communication, clarification, and disposition of the pending protest
3. Specify the City Bid Number, bid title, closing date, and proposed award date of the solicitation
4. State the specific action or decision being protested
5. Indicate the basis for the protest
6. Indicate what relief or corrective action vendor believes the City should make
7. Demonstrate that every reasonable effort was made within the schedule provided, for vendor to resolve the basis of the protest during the process, including asking questions, seeking clarification, requesting addenda, and otherwise alerting the City to any perceived problems.
8. Protest letter must be signed by an authorized agent of the company Packet Page. 1978
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 76 of 99 Vendor Setup
Instruction on how to request a New Vendor set-up and/or make changes to an existing vendor:
Go to New World (ERP System)
Financial Management
Purchasing
Vendor Change Request
• All vendors need documentation verifying their mailing address:
• W9
• City refund form
• Driver's License
• Asset forfeiture, Memo from PD
Purchase Orders (POs)
1. POs will be reviewed 2 days per week (Mondays and Fridays)
2. POs will be returned if proper documentation is not attached. a. Description must match the GL Account used and scope of work
3. Please be mindful that a PO is necessary “before” services are rendered. a. Example: POs are not rushed due to services being provided outside of an approved PO and/or agreement.
4. If using a Grants Account, please make sure to use a Grants PO.
5. Please make sure to obtain written permission the Grants Division.
Packet Page. 1979
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 77 of 99 PO Change Order Process:
Changes are made via the New World Database. A Detailed comment needs to be entered stating what is being updated.
1. Remove the check mark in the change process only
2. Enter either the PO number or Vendor to find the departments PO
3. Hit Search
4. Click on the PO number that needs to be changed
5. Make the changes as needed
6. Click Save, if enough funds aren’t available the PO will not validate
7. If you get a GIANT red X do not move it forward, you will need to adjust the budget
8. If a GREEN check mark appears , the PO is validated, then approve to move forward in the approval process
9. Once change order request goes through the approval process and is fully approved, purchasing will post, print and forward a copy of your to your department so you will know the change order is complete.
Packet Page. 1980
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 78 of 99 Furniture Order Process
There are a few things to be considered when you order furniture for new or existing staff.
1. There may be existing furniture that will meet your needs. Before ordering new furniture and/or cubicles, reach out to the Facilities Team. There are desks, credenzas, bookshelves, and cubicles available that are in excellent condition that may suit your needs. a. You are not required to use existing office furniture or cubicles. Sometimes the existing furnishings are too large for smaller offices, or the cubes are not suitable for the space. b. Chairs should always be ordered new. Using old chairs to save money can cost the City in the long term with potential ergonomic problems that they can cause or exacerbate for health employees.
2. If there is not existing furniture that suits the needs of your department, follow the RFQ Process to initiate the purchase of furniture that meets the needs of your department.
3. It is important to note that if City Facilities staff is unable to install your furniture and/or cubicles, a Public Works bid must be released for the installation of the furniture system according to State Law.
a. The bid will be released to certified/qualified vendors that have the proper licensing and certifications for the installation and comply with Prevailing Wage. b. Prevailing Wage applies to assembly, disassembly, installation, reconfiguring or securing furniture to walls.
c. Prevailing wage does not apply to delivery of furniture, or rearranging/moving chairs, bookcases, filing cabinets, desks, etc. within a space.
Staples Office Supplies
Staples is the city’s designated office supplies vendor.
1. To obtain a log-in
Send an email to your assigned City Representative with your employee’s name, email address, phone, department and shipping address.
It is okay to ask for price matches for large, priced items. Please advise City Representative when an employee separates from the city so that their account is removed. Please note Furniture orders can be placed with Staples if a department has the approved specifications and measurements.
Business Registration
According to Municipal Code 5.04.005, a business registration certificate needs to be obtained before any person or business conducts business in the City. Please contact the Business Registration Department for all business certificate, licensing, and fee requirement information.
Packet Page. 1981
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 79 of 99 City of San Bernardino Contract Processing Guidelines
The Purchasing Division wants to ensure to meet the purchasing needs of the city as much as possible.
To safeguard that appropriate contract procedures a being properly followed; the following process is being implemented immediately:
1. Drafting a Contract.
a. If an individual department processes a bid, the Department can draft the service agreement using the city approved template.
2. All Contracts require purchasing review & approval prior to sending to the vendor/consultant for signature.
a. This is to ensure that everything is documented correctly within the agreement. b. The Department shall forward drafted agreement to the Purchasing Division for review and approval.
c. Purchasing may have some approved language and/or options to add to the agreement before sending to the vendor/consultant for review.
3. Contracts Requiring Purchasing/City Attorney review & approval prior to and after the vendor/consultant has been requested to sign the contract. a. Drafted templates that will not require City Attorney approval prior to sending to the vendor/consultant for signature are:
i. The contract is drafted on the City approved template and no exceptions or deviations have been taken on the terms and conditions. b. Drafted templates that will require Purchasing/City Attorney approval prior to sending to the vendor/consultant for review/revisions are:
i. The contract is above $40,000.
ii. The contract drafted on the City approved template and exceptions/deviations are being requested on the terms and conditions
iii. The contract is drafted on the vendor/consultants’ contract template. c. Drafted templates that will require City Attorney approval after sending to the vendor/consultant for review/revisions are:
i. The vendor has taken exceptions to the Terms and Conditions within the City approved agreement template.
ii. The vendor is counter-responding to the exceptions the City has taken on the vendor/consultants drafted contract template.
d. City Attorney is to be given a minimum of 7 to 10 business days to review contracts or to complete other legal review requests.
4. If wet signature is required. All contracts should be signed by the vendor/consultant prior to sending the contract to the Purchasing Manager and/or City Manager for final signature and approval. a. This is a best practice for the business issuing the contract not to sign a contract until it is accepted by the other party and signed. Once it is accepted and signed by the other Packet Page. 1982
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 80 of 99 party, the issuer should review the contract again to make sure no terms were changed and then sign it.
i. This best practice is also used when a vendor gives the City their contract template to review and sign. The city will not sign the contract until the vendor signs the negotiated terms and conditions first.
b. The City Purchasing Division is to be given a minimum of five (5) business days to review contracts or to complete other purchasing requests.
c. Sometimes vendors/consultants may change terms and sign contracts without advising that changes have been made on their end.
i. We must review and make sure that the same contract that was sent to them is being signed and returned to us.
d. Purchasing will forward the contract to the City Clerk for the City Attorney’s Signature and City Manager’s signature, via DocuSign, unless a wet signature is required. e. Once signed by the City Manager and finalized, everyone should receive a copy of the sign.
5. Agreement Amendments are generally Processed for the following reasons:
a. Rate Adjustments
i. Processed when a vendor has requested a rate increase. If rates are increased in a contract, an amendment needs to be processed. The amendment should contain the new rates along with indicating the new percentage of the rate increase.
b. Expiration Date Extensions
i. If an agreement is needed for a longer period of time, then an amendment needs to be processed. This will include contracts that have options to extend. If the City is going to use the option to extend, an amendment needs to be generated and stated that the City is using the option to extend the agreement. c. Scope of Work Changes
i. If the scope of services is being altered or information is being added to the SOW, then an amendment should be processed. Vendors are already obligated to provide the services/materials that are in their executed agreements, they are not obligated to provide more than what is stated in their SOW, this is why an amendment is needed.
d. Services/Delivery Schedule Changes
i. If a vendor has a set schedule of days and time that are in their contract and they want to make changes to that schedule, then the department needs to agree to that change and process an amendment.
e. Typos and Errors
i. When there is an error in an agreement it needs to be corrected and an amendment may need to be processed; an error may change the meaning of terms and conditions in a contract. Contact Legal Services for review to determine if the error has a material impact on the agreement or contract.
Packet Page. 1983
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 81 of 99 All completed copies of executed amendments shall be attached to the PO in the Financial System.
6. When purchasing conducts, a bid, purchasing is responsible for drafting the contract. Please provide the Buyer with the Following information:
a. Annual Cost for the contract
b. Whether or not it is a multiple year contract
c. If Council approval is required, please provide the date of the meeting, item number, and annotated page showing approval.
Please do not upload contracts to DocuSign that have been processed by the Purchasing Division, that is Purchasing’s responsibility.
7. When using DocuSign, Contract will be uploaded into DocuSign and the contract will go through the internal process for signatures and the vendor’s email is added in order to obtain their electronic signature.
Packet Page. 1984
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 82 of 99 City Approved Agreements
Template Title Purposes Insurance Requirements Bonds
Contract Amendment To amend Terms and Conditions in an
executed agreement
Insurance requirements are based on
original Agreement
N/A
Contract Extensions To extend the terms and conditions of an agreement
Insurance requirements are based on
original Agreement
N/A
Design Build Agreement For single projects with turnkey design and construction
Commercial General Liability (CGL)
Contract Price Amt of Liability Ins (occ.)
$0 - $2mil $2 mil
$2mil - $5mil $3 mil
$5mil - $10mil $5 mil
$10mil - $20 mil $10 mil
Automobile $5 mil per accident
Workers Comp. $1 mil
Professional Liability $2 mil
Performance
Bond
Payment Bond
Design Services Agreement For Professional Design Services Only CGL $2mil per occ/$4 mil aggregate Automobile $1 mil per occ
Employers Liability $1 mil per occ
Professional Liability $2 mil per
claim/Aggregate
Performance
Bond
Payment Bond
Encroachment Agreement To document City’s authorization of the Permittee’s encroachment onto City’s
Property
Insurance Requirements is dependent on
Scope of Work contained in the
agreement and Permit shall not take
effect or become binding on City until
Permittee has complied with the
insurance requirements.
N/A
Goods Purchase Agreement Is to purchase all machinery,
equipment, supplies, items, parts,
materials, labor or other services,
including design, engineering and
installation services. Delivery Date(s)
upon which the goods are to be
delivered to the City, ready for
approval, testing and/or use.
CGL $2mil per occ/$4 mil aggregate
Automobile $1 mil per occ
Workers Comp $1 mil per occ
Professional Liability $2 mil per
claim/Aggregate
N/A
Lease Agreement – City as
Lessee
For City the pay Lessor rent for a
property for a premises, for an
extended period of time
Insurance requirements are based on the
intended use of the rental property
N/A
Lease Agreement – City as
Lessor
For city to rent out city owned property
to a Lessee for an extended period of
time.
CGL $2mil per occ/$4 mil aggregate
Automobile $1 mil per occ
Workers Comp $1 mil per occ
N/A
License Agreement City owned real property in which a
Licensee desires to obtain CITY’S
permission to enter onto the Property
for a specified period of time.
CGL $2mil per occ/$4 mil aggregate
Automobile $1 mil per occ
Workers Comp $1 mil per occ
N/A
Long Form Construction
Specifications
Complex/High Risk/High Value
Construction Projects
CGL $5mil per occ/$10 mil aggregate
Automobile $5 mil per occ
Workers Comp $1 mil per occ
Professional Liability $2 mil per
claim/Aggregate
Performance
Bond
Payment Bond
Packet Page. 1985
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 83 of 99 Template Title Purposes Insurance Requirements Bonds
Builder’s Risk
Contractor’s Pollution Liability $1 mil per
occ/ $2 mil aggregate
Maintenance Services
Agreement
1. Routine, recurring, and usual work for
the preservation or protection of any
publicly owned or publicly operated
facility for its intended purposes.
2. Minor repainting
3. Resurfacing of streets and highways
at less than one inch.
4. Landscape maintenance, including
mowing, watering, trimming, pruning,
planting, replacement of plants, and
servicing of irrigation and sprinkler
systems.
5. Work performed to keep, operate,
and maintain publicly owned water,
power, or waste disposal system,
including, but not limited to, dams,
reservoirs, powerplants, and electrical
transmission lines of 230,000 volts and
higher.
CGL:
$2 mil per occ/$4 mill aggregate.
Limits may be increased if work involved
Construction $5mil per occ/$10 mil
aggregate.
Automobile $1 mil per occ
Workers Comp $1 mil per occ
Professional Liability $2 mil per
claim/Aggregate
Builder’s Risk
Contractor’s Pollution Liability $1 mil per
occ/ $2 mil aggregate
Performance
Bond
Payment Bond
Nuisance Abatement
Services Agreement
Nuisance abatement is a legal
procedure for correcting a situation that
is considered a nuisance. Nuisances can
take the form of health and safety
threats in addition to circumstances
that impact quality of life. Thus, issues
like poor sanitation, abandoned
property, havens for criminal activity,
and loud music are all nuisances and
can be subjected to nuisance
abatement.
CGL $2mil per occ/$4 mil aggregate
Automobile $1 mil per occ
Workers Comp $1 mil per occ
Performance
Bond
Payment Bond
On-Call Professional
Services Agreement
For Professional Services for Specialized
Services such as Financial, Economic,
Accounting, Legal Engineering or
Administrative Services
CGL $2mil per occ/$4 mil aggregate
Automobile $1 mil per occ
Employers Liability $1 mil per occ
Professional Liability $2 mil per
claim/Aggregate
N/A
Professional Services
Agreement
A professional services agreement is
essentially a form that collects all the
relevant information in a professional
endeavor between two parties. Its
purpose is to aid in preparing a
functional contract for said services
between the parties. It is typically
divided into two sections – the
agreement, and the exhibit.
CGL $2mil per occ/$4 mil aggregate
Automobile $1 mil per occ
Employers Liability $1 mil per occ
Professional Liability $2 mil per
claim/Aggregate
N/A
Professional Software
Services Agreement
A professional services agreement is
essentially a form that collects all the
relevant information in a professional
software services endeavor between
CGL $2mil per occ/$4 mil aggregate
Automobile $1 mil per occ
Employers Liability $1 mil per occ
N/A
Packet Page. 1986
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 84 of 99 Template Title Purposes Insurance Requirements Bonds
two parties. Its purpose is to aid in
preparing a functional contract for said
services between the parties. It is
typically divided into two sections – the
agreement, and the exhibit.
Professional Liability $2 mil per
claim/Aggregate
Cyber Liability $1 mil per
claim/Aggregate
Professional Services
Agreement Caltrans –
FHWA
A professional services agreement is
essentially a form that collects all the
relevant information in a professional
endeavor between two parties. Its
purpose is to aid in preparing a
functional contract for said services
between the parties. It is typically
divided into two sections – the
agreement, and the exhibit. Agreement
is full funded by Caltrans on behalf of
FHWA
CGL $2mil per occ/$4 mil aggregate
Automobile $1 mil per occ
Employers Liability $1 mil per occ
Professional Liability $2 mil per
claim/Aggregate
N/A
Real Estate Purchase
Agreement
Transactional agreement between a
Buyer and Seller of Real Estate Property
Buyer maintains and will continue to
maintain adequate public liability
insurance coverage throughout the term
of this Agreement. Buyer’s indemnity
obligations as set forth herein will survive
termination of this Agreement.
N/A
Real Estate Sale Agreement Transactional agreement between a Buyer and Seller of Real Estate Property
At Close of Escrow (as defined below),
Seller will convey good and marketable
title to the Property to Buyer as
evidenced by an ALTA Non-Extended
Form Owners Policy of Title Insurance
(“Title Policy”), issued by the Title
Company in an amount equal to the
Purchase Price, and with endorsements
requested and paid for by Buyer, and
subject only to the Permitted Exceptions.
Seller will assign to Buyer all insurance
proceeds and the Purchase Price will be
reduced by the amount of any
deductible.
N/A
Reimbursement &
Indemnification Agreement
Reimbursement: to Reduce or avoid tax.
The benefit under a reimbursement
agreement can be the payment of
money, the transfer to property or an
estate, interest, right or power in or
over property or the provision of
services.
An Indemnity Agreement allows the
injured party to claim compensation or
reimbursement for the losses that are
suffered from the party that is liable to
make up for these damages
N/A N/A
Packet Page. 1987
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 85 of 99 Template Title Purposes Insurance Requirements Bonds
Reverse License Agreement the License Agreement to be entered into by Buyer and Seller at the Closing in
the form attached hereto as Exhibit B.
CITY, shall be lawfully self-insured with
minimum coverage limits as required by
LICENSOR as described in Exhibit “C”.
Prior to (i) entering the Licensed Property
or (ii) performing any work or
maintenance on the Facility, CITY shall
furnish LICENSOR with the insurance
endorsements and certificates in the
form and amounts specified in Exhibit
“C”, evidencing the existence, amounts
and coverage of the insurance required
to be maintained hereunder. LICENSOR
shall not be liable for the payment of any
premiums or assessments for insurance
required to be maintained by CITY under
this Agreement.
N/A
Reverse Right of Entry
Agreement
GRANTOR hereby grants to GRANTEE
and its agents, employees and
contractors the temporary nonexclusive right to enter onto the Property for the Project; provided,
however, that GRANTEE’s use of the
Property permitted hereunder shall not
interfere with the reasonable use and
enjoyment thereof by GRANTOR or any
tenants, occupants or persons claiming
through or under GRANTOR; and
provided further that all persons who
enter upon the Property pursuant to
this Right of Entry do so at their own
risk and shall comply with any and all
instructions and directions of GRANTOR.
N/A Bond
Right of Entry Agreement Employees and contractors the
temporary non-exclusive right to enter
onto Property solely for a project.
provided, however, that GRANTEE’s use
of the Property permitted hereunder
shall not interfere with the reasonable
use and enjoyment thereof by
GRANTOR or any tenants, occupants or
persons claiming through or under
GRANTOR; and provided further that all
persons who enter upon the Property
pursuant to this Right of Entry do so at
their own risk and shall comply with any
and all instructions and directions of
GRANTOR.
CGL $2mil per occ/$4 mil aggregate
Automobile $1 mil per occ
Workers Compensation $1 mil per occ
N/A
Short Form Construction
Contract
A short form agreement is legal
document that is used to procure small
renovation or construction services
from a contractor or construction
CGL $2mil per occ/$4 mil aggregate
Automobile $1 mil per occ
Workers Compensation $1 mil per occ
Builders’/All Risk
N/A
Packet Page. 1988
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 86 of 99 Template Title Purposes Insurance Requirements Bonds
company. The contract states who the
parties are, what work is to be
completed, and by what date the
project should be done.
Professional Liability Ins. $2 mill per occ.
Short Form Services
Agreement
It is intended for use in business-tobusiness transactions and is not suitable for use in consumer transactions.
CGL $2mil per occ/$4 mil aggregate
Automobile $1 mil per occ
Workers Compensation $1 mil per occ
Builders’/All Risk
Professional Liability Ins. $2 mill per occ.
N/A
Vendor Services Agreement A vendor service agreement is used whenever a business owner or an
individual hires a person or company to
provide services or products. Vendor
agreements are used in all sorts of
industries, including professional
services, technology, marketing, event
planning, and much more. A quality
vendor service agreement clearly states
the product or service the vendor will
provide and the expectations of the
deal from the beginning. It also lowers
the risk of dispute or confusion for
everyone involved.
A vendor service agreement should be
used for all types of events, including
farmer's markets, festivals, or fairs, to
ensure everyone benefits from the
experience. In a vendor agreement, the
conditions and expectations of the
service or product are clearly laid out.
CGL $2mil per occ/$4 mil aggregate
Automobile $1 mil per occ
Workers Compensation $1 mil per occ
Builders’/All Risk
Professional Liability Ins. $2 mill per occ.
Packet Page. 1989
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 87 of 99 Non-City Approved Agreements
Type of Agreement Definitions
Cooperative Agreements These are agreements between a government entity and a business, created in order to lower the cost of procuring goods and services that multiple entities commonly need.
1. Cal Procure: State Leveraged Procurement Agreements
2. OMNIA Partners
3. Sourcewell
4. NASPO
5. BuyBoard Purchasing Cooperative
Piggybacking When you use an existing contract to acquire the same commodities or services at the same or lower price from another public entity contract. Subject Matter Comparisons: The product or service acquired through piggybacking must be comparable to what your original acquisition needs, function, and goals are.
Single Source A procurement decision whereby purchases are directed to one source because of standardization, warranty, or other factors, even though other competitive sources may be available.
A department must demonstrate in detailed writing, to the Purchasing Agent that the purchase can only be obtained from a single source.
Note: This is a LEGAL requirement, not just an ordinance. This is to protect against any discrimination for ALL bidders, contractors.
We are ran by the public for the public.
Sole Source Is used only when there is only one qualified company that has developed a patent or copyright product or services; when the product or service is required immediately due to a pressing emergency; or it is not in the public’s interest to hold a competition.
Please contact purchasing to use the Single/Sole Source Justification Form when requesting to utilize a Single/Sole Source Procurement. See example below
Packet Page. 1990
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 88 of 99 City of San Bernardino
Finance Department, Purchasing Division
JUSTIFICATION OF SINGLE/SOLE SOURCE REQUEST
ITEM Description ________________________________ DATE__________ Select Source: ____Sole Source: Item is manufactured and/or only distributed by one vendor. ____Single Source: Item is available from several vendors, but item is the only one that will work Please answer all questions in detail, in order to prevent delays in the evaluation.
Please do not provide one sentence answers. If any additional pages are needed to answer all questions, please attach all pages to this document.
1. Why is the acquisition restricted to this good/service/supplier? (Explain why the acquisition cannot be competitively bid). Please enter answer below
2. Describe the uniqueness of the purchase (why was the good/service/supplier chosen?) Please enter the answer below
3. What are the consequences of not purchasing the goods/service or contracting with the proposed supplier?
4. What market research was conducted to substantiate the single source, including evaluation of other items considered?
a. (Please provide a narrative of your efforts to identify other similar or appropriate goods/services, including a summary of how the department concluded that such alternatives are either inappropriate or unavailable. The names, addresses and phone numbers of suppliers contacted and the reasons for not considering them must be included or an explanation of why the survey or effort to identify other goods/services was not performed.)
5. How was the price offered determined to be fair and reasonable? Explain what the basis was for comparison and include cost analyses as applicable. (I.e., Compared to vendor’s previous or current offer to the city or to another agency/company – or any other method of comparison that will substantiate fair and reasonable pricing in the absence of competition) Packet Page. 1991
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 89 of 99
6. Describe any cost savings realized or costs avoided by acquiring the goods/services from this supplier.
Signature Block Below
____________________ ___________ Department Head Date ____________________ _____________ Approved Not Approved Date (Up to $100,000)
Purchasing Manager
SSJ Justification: _______________________________________________________________________________ _____________________________________________________________________________________________ _____________________________________________________________________________________________ _____________________________________________________________________________________________ _____________________________________________________________________________________________ Over $100,000 – must be submitted for City Council Approval with the Purchasing Manager in concurrence.
Packet Page. 1992
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 90 of 99 Please contact the City Clerk’s office if you have questions regarding the DocuSign Process for Agreement Signatures:
City Clerk requires: That only Finalized Agreement be uploaded to DocuSign. Before uploading an agreement to DocuSign, please forward the following Documents to your designated Buyer for review via email:
1. Drafted Agreement
2. Quote(s)
3. COI with waivers of Subrogation and Endorsements
4. W9 with wet signature and current date
5. City Business License
Packet Page. 1993
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 91 of 99 How to Calculate Cost Avoidances and Cost Savings for Procurement Projects Cost Savings vs. Cost Avoidance
- Cost-savings measures any actions that lower current spending, investment, or debt levels. They result in a tangible financial benefit for the organization. The amount of money saved as a result of these measures should always be reflected in the financial statements and next year’s budget. Actual cost savings should be visible in the financial statements compared to prior period; planned cost savings should be reflected in the budget. Examples of cost saving measures are:
o Reduction of overtime hours
o Elimination of temporary labor employees
o Negotiation of price decreases for products and services o Negotiation of a lower rental fee for facilities and equipment - Cost avoidance measures are any actions that avoid having to incur costs in the future.
They represent potential increases in costs that are averted through specific preemptive actions. These measures will never be reflected in the budget or the financial statements. Some examples of cost avoidance measures are:
o A reduction of a proposed price increase from a vendor o The elimination of the need for additional headcount through process improvements, or a change in maintenance schedules for critical equipment to avoid work stoppages.
Packet Page. 1994
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 92 of 99 How to Calculate a Cost Avoidance Example
Average Cost of Bids Submitted $ 1,000,000.00
Winning Bid $ 350,000.00
Average Cost of Bids - Subtracted from winning bid = Cost Avoidance $ 650,000.00 Divide Cost Avoidance/ Average cost of bids = Percentage of savings/avoidance for project 65%
How to Calculate a Basic Cost Savings Example
Cost used in previous project/services $ 55,000.00
Cost of new winning bid $ 46,000.00
Subtract previous cost from - new bid cost = New cost savings $ 9,000.00 Divide Cost Savings/ previous project cost = Percentage of new cost savings 16% Packet Page. 1995
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 93 of 99 Certificate of Insurance (COI):
All vendors are required to provide a COI for the services, materials and equipment that they are providing to the city. Insurance limits vary dependent upon the type of work and services that are being provided. The Current Insurance Limits for 2023 are the following:
Professional Services Agreements, Lessee Agreements & Vendor Agreements General Services will usually require a minimum amount such as CGL $2,000,000 per occ./$4,000,000 aggregate.
Professional Liability will usually require No less than $2,000,000 per occurrence or Claim, $2,000,000 aggregate.
Automobile Liability will usually require No less than $1,000,000 per accident for bodily injury and property damage.
Worker’s Compensation will usually require No less than $1,000,000 per accident for bodily injury or disease. Not required if consultant provides written verification, it has no employees.
Environmental Contractors and/or Consultants Agreements Commercial General Liability (CGL). No less than $2,000,000 per occ./$4,000,000 aggregate
Contractors’ Pollution Legal Liability and/or Asbestos Legal Liability and/or Errors and Omissions (if project involves environmental hazards) with limits no less than $1,000,000 per occurrence or claim, and $2,000,000 policy aggregate.
Automobile Liability will usually require No less than $1,000,000 per accident for bodily injury and property damage.
Worker’s Compensation will usually require No less than $1,000,000 per accident for bodily injury or disease. Not required if consultant provides written verification, it has no employees.
Construction Services Agreements
Commercial General Liability (CGL). No less than $5,000,000 per occ./ $10,000,000 aggregate.
o The higher limit is appropriate for general contractors on any new construction or major remodel projects. Subcontractors in areas of higher risk, such as electric, roofing, or plumbing work, should have limits above the standard minimum of $2 million.
Automobile Liability. No less than $5,000,000 per accident for bodily injury and property damage.
Packet Page. 1996
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 94 of 99 Worker’s Compensation will usually require No less than $1,000,000 per accident for bodily injury or disease. Not required if consultant provides written verification, it has no employees.
Builder’s Risk. (Course of Construction) insurance utilizing an “All Risk” (Special Perils) coverage form, with limits equal to the completed value of the project and no coinsurance penalty provisions.
Professional Liability. No less than $2,000,000 per occurrence or Claim, $2,000,000 aggregate.
Contractors’ Pollution Legal Liability. And/or Asbestos Legal Liability and/or Errors and Omissions (if project involves environmental hazards) with limits no less than $1,000,000 per occurrence or claim, and $2,000,000 policy aggregate.
Aviation and Cyber Liability Insurance (May be required):
o Unmanned Aerial Systems (UAS) – aka “Drones”, has determined that drones are “currently the most dynamic growth sector in Aviation.
o Amount of Insurance Needed:
Typically, liability limits may be purchased on a combined single limit basis at $500,000, $1,000,000 and $2,000,000 and higher depending on insurance company and/or requirement.
Design/Build Contracts (Professional Liability). For contracts with construction risk, there is added coverage requirements for professional liability. It is necessary for “design/build” contracts where the contractor is expected to provide engineering and architectural services.
Please note that Bonds may be required such as: Surety Bonds, Bid Bonds, Performance Bonds, Payment Bonds, Subdivision or Completion Bonds. Please review the contract template and/or contact the City Attorney to verify if there is a requirement for Bonds.
Professional Software Services Agreements and may be required for other types of agreements.
General Services will usually require a minimum amount such as CGL $2,000,000 per occ./$4,000,000 aggregate.
Professional Liability will usually require No less than $2,000,000 per occurrence or Claim, $2,000,000 aggregate.
Automobile Liability will usually require No less than $1,000,000 per accident for bodily injury and property damage.
Worker’s Compensation will usually require No less than $1,000,000 per accident for bodily injury or disease. Not required if consultant provides written verification, it has no employees.
Packet Page. 1997
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 95 of 99 Cyber Liability with limits not less than $2,000,000 per occurrence or claim, $2,000,000 aggregate
o Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by Vendor/Contractor/Operator in this agreement and shall include, but not be limited to, claims involving infringement of intellectual property, including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage to or destruction electronic information, release of private information, alteration of electronic information, extortion and network security.
This policy shall provide coverage for breach response costs as well as regulatory fines and penalties as well as credit expenses with limit sufficient to respond to these obligations.
Packet Page. 1998
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 96 of 99 Packet Page. 1999
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 97 of 99 Packet Page. 2000
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 98 of 99 Packet Page. 2001
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 99 of 99 Packet Page. 2002
DISCUSSION
City of San Bernardino
Request for Council Action
Date: November 20, 2024
To: Honorable Mayor and City Council Members
From: Helen Tran
Department: Mayor's Office
Subject: Discuss and provide direction regarding Termination of City Attorney contract and immediately Appoint Interim
City Attorney and evaluate appropriate City Attorney
services for the City.
Recommendation:
Discuss and provide direction to Staff.
Packet Page. 2003