Staff Report with attachments
PREPARED BY: Dan Keller
Facilities and Environmental Services Manager
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Finance Director, and Interim
Director of Parks and Public Works
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 06/07/2022 ITEM NO: 15
DATE: June 2, 2022
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Authorize the Town Manager to Execute an Agreement for Services with
Shaw Industries Inc. for Flooring Replacement at the Adult Recreation Center
in an Amount of $133,920.59 Including a 5% for Unanticipated Services, for a
Total Agreement Amount Not to Exceed $140,616.61 RECOMMENDATION:
Authorize the Town Manager to execute an Agreement for Services with Shaw Industries Inc.
for flooring replacement at the Adult Recreation Center (Attachment 1) in an amount of
$133,920.59 including a 5% for unanticipated services, for a total agreement amount not to
exceed $140,616.61.
BACKGROUND:
This project will replace the flooring in the Adult Recreation Center to better provide
comfortable, attractive, safer, and easier to maintain floor coverings throughout the facility.
The new flooring products include vinyl plank for community rooms, lobby, and hallway, and
non-slip material for the stairs. Commercial grade carpet squares will be installed in the offices.
The existing floor coverings throughout the facility have exceeded their serviceable life.
On September 21, 2021, an Agreement for Services for this project was awarded by Town
Council with a vendor, Harry L. Murphy. The Agreement for Services with Harry L. Murphy was
not executed. During the process of completing the agreement, it was brought to staff’s
attention that the main contractor on this project would be Shaw Industries Inc., therefore,
staff is now requesting a contract with Shaw Industries Inc. to provide materials and
installation.
PAGE 2 OF 3 SUBJECT: Authorize the Town Manager to Execute an Agreement for Services with Shaw Industries Inc. for Flooring Replacement at the Adult Recreation Center in an Amount of $133,920.59 Including a 5% Contingency, for a Total Agreement Amount Not to Exceed $140,616.61 DATE: June 2, 2022
DISCUSSION:
Shaw Industries Inc. is a flooring contractor that is a member of Sourcewell, an organization
that establishes competitive labor and materials costs. Sourcewell contractors are held to
competitive industry labor and material costs. One quote was obtained based on this
information as the Town’s Purchasing Policy allows for the use of cooperative purchasing
agreements.
Sourcewell awards contracts through cooperative purchasing which is a procurement
conducted by one or more "Public Procurement Units" as defined by the American Bar
Association Model Procurement Code for State and Local Governments.
Sourcewell holds hundreds of competitively solicited cooperative contracts ready for use by
government, education, and nonprofit organizations. The contract between Sourcewell and
Shaw Industries Inc. is shown in Attachment 2.
CONCLUSION:
Authorize the Town Manager to execute an Agreement for Services with Shaw Industries Inc.
for flooring replacement at the Adult Recreation Center (Attachment 1) in an amount of
$133,920.59 including a 5% contingency, for a total agreement amount not to exceed
$140,616.61. Approval of the recommended action will allow this project to progress.
FISCAL IMPACT:
The Adopted FY 2021/22-2024/25 Capital Improvement Program has sufficient funding for the
Adult Recreation Center – Floor Repair project. In addition, through the County’s budgeting
process, the Town may receive grant funding for a portion of this project. The County will be
deciding its budget later in June. If the grant is approved, any unused Town funds would return
to the General Fund Appropriated Reserve (GFAR) for Council allocation to other capital needs.
PAGE 3 OF 3 SUBJECT: Authorize the Town Manager to Execute an Agreement for Services with Shaw Industries Inc. for Flooring Replacement at the Adult Recreation Center in an Amount of $133,920.59 Including a 5% Contingency, for a Total Agreement Amount Not to Exceed $140,616.61 DATE: June 2, 2022
FISCAL IMPACT (continued):
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. Agreement for Services
2. Contract between Sourcewell and Shaw Industries Inc.
Budget Costs
GFAR 200,000$
Total Budget 200,000$
Shaw Industries Incorporated 140,616$
Total Expenditures 140,616$
Remaining Budget 59,384$
Adult Recreation Center Floor Repair
CIP No. 821-2206
Shaw Industries Inc.
Agreement for Services Attachment 1
Page 1 of 8
AGREEMENT FOR SERVICES
THIS AGREEMENT is dated for identification this 23rd day of May 2022, and is made by and
between TOWN OF LOS GATOS, a California municipal corporation, (“Town”) and Shaw Industries
Inc., (“Service Provider”), whose address is P O Box 208408, Dallas, TX 75320. This Agreement is
made with reference to the following facts.
I.RECITALS
1.1 Town sought quotations for the services described in this Agreement, and Service Provider
was found to be the lowest responsible supplier for this purchase.
1.2 Service Provider represents and affirms that it is willing to perform the desired work
pursuant to this Agreement.
1.3 Town desires to engage Service Provider to provide flooring installation services in the Adult
Recreation Center.
1.4 Service Provider warrants it possesses the distinct professional skills, qualifications,
experience, and resources necessary to timely perform the services described in this
Agreement. Service Provider acknowledges Town has relied upon these warranties to retain
Service Provider.
II.AGREEMENT
2.1 Scope of Services. Service Provider shall provide services as described in the Proposal sent
to the Town on January 24, 2022 and is hereby incorporated by reference and attached as
Exhibit A.
2.2 Term and Time of Performance. The effective date of this Agreement shall begin upon
execution through June 30, 2023, subject to appropriation of funds, notwithstanding any
other provision in this agreement.
2.3 Compliance with Laws. The Service Provider shall comply with all applicable laws, codes,
ordinances, and regulations of governing federal, state and local laws. Service Provider
represents and warrants to Town that it has all licenses, permits, qualifications and
approvals of whatsoever nature which are legally required for Service Provider to practice
its profession. Service Provider shall maintain a Town of Los Gatos business license pursuant
to Chapter 14 of the Code of the Town of Los Gatos.
2.4 Sole Responsibility. Service Provider shall be responsible for employing or engaging all
persons necessary to perform the services under this Agreement.
Shaw Industries Inc.
Agreement for Services Attachment 1
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2.5 Information/Report Handling. All documents furnished to Service Provider by the Town and
all reports and supportive data prepared by the Service Provider under this Agreement are
the Town’s property and shall be delivered to the Town upon the completion of services or
at the Town's written request. All reports, information, data, and exhibits prepared or
assembled by Service Provider in connection with the performance of its services pursuant
to this Agreement are confidential until released by the Town to the public, and the Service
Provider shall not make any of these documents or information available to any individual
or organization not employed by the Service Provider or the Town without the written
consent of the Town before such release. The Town acknowledges that the reports to be
prepared by the Service Provider pursuant to this Agreement are for the purpose of
evaluating a defined project, and Town's use of the information contained in the reports
prepared by the Service Provider in connection with other projects shall be solely at Town's
risk, unless Service Provider expressly consents to such use in writing. Town further agrees
that it will not appropriate any methodology or technique of Service Provider which is and
has been confirmed in writing by Service Provider to be a trade secret of Service Provider.
2.6 Compensation: Compensation for the supplies and materials delivered and for supplier's
professional services for an amount of $133,920.59 including 5% for unanticipated services,
for a total agreement amount not to exceed $140,616.61. Payment shall be based upon
Town approval of each task.
2.7 Billing. Billing shall be monthly by invoice within thirty (30) days of the rendering of the
service and shall be accompanied by a detailed explanation of the work performed by whom
at what rate and on what date. Also, plans, specifications, documents or other pertinent
materials shall be submitted for Town review, even if only in partial or draft form.
Payment shall be net thirty (30) days. All invoices and statements to the Town shall be
addressed as follows:
Invoices:
Town of Los Gatos
Attn: Accounts Payable
P.O. Box 655
Los Gatos, CA 95031-0655
2.8 Availability of Records. Service Provider shall maintain the records supporting this billing for
not less than three years following completion of the work under this Agreement. Service
Provider shall make these records available to authorized personnel of the Town at the
Service Provider offices during business hours upon written request of the Town.
2.9 Assignability and Subcontracting. The services to be performed under this Agreement are
unique and personal to the Service Provider. No portion of these services shall be assigned
or subcontracted without the written consent of the Town.
Shaw Industries Inc.
Agreement for Services Attachment 1
Page 3 of 8
2.10 Independent Contractor. It is understood that the Service Provider, in the performance of
the work and services agreed to be performed, shall act as and be an independent
contractor and not an agent or employee of the Town. As an independent contractor he/she
shall not obtain any rights to retirement benefits or other benefits which accrue to Town
employee(s). With prior written consent, the Service Provider may perform some
obligations under this Agreement by subcontracting, but may not delegate ultimate
responsibility for performance or assign or transfer interests under this Agreement. Service
Provider agrees to testify in any litigation brought regarding the subject of the work to be
performed under this Agreement. Service Provider shall be compensated for its costs and
expenses in preparing for, traveling to, and testifying in such matters at its then current
hourly rates of compensation, unless such litigation is brought by Service Provider or is
based on allegations of Service Provider's negligent performance or wrongdoing.
2.11 Conflict of Interest. Service Provider understands that its professional responsibilities are
solely to the Town. The Service Provider has and shall not obtain any holding or interest
within the Town of Los Gatos. Service Provider has no business holdings or agreements with
any individual member of the Staff or management of the Town or its representatives nor
shall it enter into any such holdings or agreements. In addition, Service Provider warrants
that it does not presently and shall not acquire any direct or indirect interest adverse to
those of the Town in the subject of this Agreement, and it shall immediately disassociate
itself from such an interest, should it discover it has done so and shall, at the Town's sole
discretion, divest itself of such interest. Service Provider shall not knowingly and shall take
reasonable steps to ensure that it does not employ a person having such an interest in this
performance of this Agreement. If after employment of a person Service Provider discovers
it has employed a person with a direct or indirect interest that would conflict with its
performance of this Agreement Service Provider shall promptly notify Town of this
employment relationship, and shall, at the Town's sole discretion, sever any such
employment relationship.
2.12 Equal Employment Opportunity. Service Provider warrants that it is an equal opportunity
employer and shall comply with applicable regulations governing equal employment
opportunity. Neither Service Provider nor its subcontractors do and neither shall
discriminate against persons employed or seeking employment with them on the basis of
age, sex, color, race, marital status, sexual orientation, ancestry, physical or mental
disability, national origin, religion, or medical condition, unless based upon a bona fide
occupational qualification pursuant to the California Fair Employment & Housing Act.
III. INSURANCE AND INDEMNIFICATION
3.1 Minimum Scope of Insurance:
i. Service Provider agrees to have and maintain, for the duration of the
contract, General Liability insurance policies insuring him/her and his/her
Shaw Industries Inc.
Agreement for Services Attachment 1
Page 4 of 8
firm to an amount not less than: one million dollars ($1,000,000) combined
single limit per occurrence for bodily injury, personal injury and property
damage.
ii. Service Provider agrees to have and maintain for the duration of the contract,
an Automobile Liability insurance policy ensuring him/her and his/her staff
to an amount not less than one million dollars ($1,000,000) combined single
limit per accident for bodily injury and property damage.
iii. Service Provider shall provide to the Town all certificates of insurance, with
original endorsements effecting coverage. Service Provider agrees that all
certificates and endorsements are to be received and approved by the Town
before work commences.
General Liability:
i. The Town, its officers, officials, employees and volunteers are to be covered
as insured as respects: liability arising out of activities performed by or on
behalf of the Service Provider; products and completed operations of Service
Provider, premises owned or used by the Service Provider.
ii. The Service Provider's insurance coverage shall be primary insurance as
respects the Town, its officers, officials, employees and volunteers. Any
insurance or self-insurances maintained by the Town, its officers, officials,
employees or volunteers shall be excess of the Service Provider's insurance
and shall not contribute with it.
iii. Any failure to comply with reporting provisions of the policies shall not affect
coverage provided to the Town, its officers, officials, employees or
volunteers.
iv. The Service Provider's insurance shall apply separately to each insured
against whom a claim is made or suit is brought, except with respect to the
limits of the insurer's liability.
3.2 All Coverages. Each insurance policy required in this item shall be endorsed to state that
coverage shall not be suspended, voided, cancelled, reduced in coverage or in limits except
after thirty (30) days' prior written notice by certified mail, return receipt requested, has
been given to the Town. Current certification of such insurance shall be kept on file at all
times during the term of this agreement with the Town Clerk.
3.3 Workers’ Compensation. In addition to these policies, Service Provider shall have and
maintain Workers' Compensation insurance as required by California law and shall provide
Shaw Industries Inc.
Agreement for Services Attachment 1
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evidence of such policy to the Town before beginning services under this Agreement.
Further, Service Provider shall ensure that all subcontractors employed by Service Provider
provide the required Workers' Compensation insurance for their respective employees.
3.4 Indemnification. The Service Provider shall save, keep, hold harmless and indemnify and
defend the Town its officers, agent, employees and volunteers from all damages, liabilities,
penalties, costs, or expenses in law or equity that may at any time arise or be set up because
of damages to property or personal injury received by reason of, or in the course of
performing work which may be occasioned by a willful or negligent act or omissions of the
Service Provider, or any of the Service Provider's officers, employees, or agents or any
subcontractor.
IV. GENERAL TERMS
4.1 Waiver. No failure on the part of either party to exercise any right or remedy hereunder
shall operate as a waiver of any other right or remedy that party may have hereunder, nor
does waiver of a breach or default under this Agreement constitute a continuing waiver of
a subsequent breach of the same or any other provision of this Agreement.
4.2 Governing Law. This Agreement, regardless of where executed, shall be governed by and
construed to the laws of the State of California. Venue for any action regarding this
Agreement shall be in the Superior Court of the County of Santa Clara.
4.3 Termination of Agreement. The Town and the Service Provider shall have the right to
terminate this agreement with or without cause by giving not less than fifteen days (15)
written notice of termination. In the event of termination, the Service Provider shall deliver
to the Town all plans, files, documents, reports, performed to date by the Service Provider.
In the event of such termination, Town shall pay Service Provider an amount that bears the
same ratio to the maximum contract price as the work delivered to the Town bears to
completed services contemplated under this Agreement, unless such termination is made
for cause, in which event, compensation, if any, shall be adjusted in light of the particular
facts and circumstances involved in such termination.
4.4 Prevailing Wages. This project is subject to the requirements of Section 1720 et seq.
of the California Labor Code requiring the payment of prevailing wages, the training of
apprentices and compliance with other applicable requirements. Contractors and all
subcontractors who perform work on the project are required to comply with these
requirements. Prevailing wages apply to all projects over $1,000 which are defined as
a “public work” by the State of California. This includes: construction, demolition,
repair, alteration, maintenance and the installation of photovoltaic systems under a
Power Purchase Agreement when certain conditions are met under Labor Code Section
1720.6. This include service and warranty work on public buildings and structures.
Shaw Industries Inc.
Agreement for Services Attachment 1
Page 6 of 8
4.4.1 The applicable California prevailing wage rate can be found at www.dir.ca.gov
and are on file with the Town of Los Gatos Parks and Public Works Department,
which shall be available to any interested party upon request. The contractor
is also required to have a copy of the applicable wage determination posted
and/or available at each jobsite.
4.4.2 Specifically, contractors are reminded of the need for compliance with Labor
Code Section 1774-1775 (the payment of prevailing wages and documentation
of such), Section 1776 (the keeping and submission of accurate certified
payrolls) and 1777.5 in the employment of apprentices on public works
projects. Further, overtime, weekend and holiday pay, and shift pay must be
paid pursuant to applicable Labor Code section.
4.4.3 The public entity for which work is being performed or the California
Department of Industrial Relations may impose penalties upon contractors and
subcontractors for failure to comply with prevailing wage requirements. These
penalties are up to $200 per day per worker for each wage violations identified;
$100 per day per worker for failure to provide the required paperwork and
documentation requested within a 10-day window; and $25 per day per worker
for any overtime violation.
4.4.4 As a condition to receiving progress payments, final payment and payment of
retention on any and all projects on which the payment of prevailing wages is
required, the contractor agrees to present to the TOWN, along with its request
for payment, all applicable and necessary certified payrolls (for itself and all
applicable subcontractors) for the time period covering such payment request.
The term “certified payroll” shall include all required documentation to comply
with the mandates set forth in Labor Code Section 1720 et seq, as well as any
additional documentation requested by the Agency or its designee including,
but not limited to: certified payroll, fringe benefit statements and backup
documentation such as monthly benefit statements, employee timecards,
copies of wage statements and cancelled checks, proof of training contributions
(CAC2 if applicable), and apprenticeship forms such as DAS-140 and DAS-142.
4.4.5 In addition to submitting the certified payrolls and related documentation to
the TOWN, the contractor and all subcontractors shall be required to submit
certified payroll and related documents electronically to the California
Department of Industrial Relations. Failure to submit payrolls to the DIR when
mandated by the project parameters shall also result in the withholding of
progress, retention and final payment.
4.4.6 No contractor or subcontractor may be listed on a bid proposal for a public
works project unless registered with the Department of Industrial Relations
pursuant to Labor Code section 1725.5 [with limited exceptions from this
requirement for bid purposes only under Labor Code section 1771.1(a)].
4.4.7 No contractor or subcontractor may be awarded a contract for public work on
a public works project, unless registered with the Department of Industrial
Relations pursuant to Labor Code section 1725.5. Contractors MUST be a
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Agreement for Services Attachment 1
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registered “public works contractor” with the DIR AT THE TIME OF BID. Where
the prime contract is less than $15,000 for maintenance work or less than
$25,000 for construction alternation, demolition or repair work, registration is
not required.
4.4.8 Should any contractor or subcontractors not be a registered public works
contractor and perform work on the project, Contractor agrees to fully
indemnify the TOWN for any fines assessed by the California Department of
Industrial Relations against the TOWN for such violation, including all staff costs
and attorney’s fee relating to such fine.
4.4.9 The TOWN shall withhold any portion of a payment; including the entire
payment amount, until certified payroll forms and related documentation are
properly submitted, reviewed and found to be in full compliance. In the event
that certified payroll forms do not comply with the requirements of Labor Code
Section 1720 et seq., the TOWN may continue to hold sufficient funds to cover
estimated wages and penalties under the contract.
4.5 Amendment. No modification, waiver, mutual termination, or amendment of this
Agreement is effective unless made in writing and signed by the Town and the Service
Provider.
4.6 Disputes. In any dispute over any aspect of this Agreement, the prevailing party shall be
entitled to reasonable attorney's fees, including costs of appeal.
4.7 Notices. Any notice required to be given shall be deemed to be duly and properly given if
mailed postage prepaid, and addressed to:
Town of Los Gatos
Attn: Town Clerk
110 E. Main Street
Los Gatos, CA 95030
Shaw Industries Inc.
Attn: Eric Taylor
P O Box 208408
Dallas, TX 75320
or personally delivered to Service Provider to such address or such other address as
Service Provider designates in writing to Town.
4.8 Order of Precedence. In the event of any conflict, contradiction, or ambiguity between the
terms and conditions of this Agreement in respect of the Products or Services and any
attachments to this Agreement, then the terms and conditions of this Agreement shall
prevail over attachments or other writings.
4.9 Entire Agreement. This Agreement, including all Exhibits, constitutes the complete and
exclusive statement of the Agreement between the Town and Service Provider. No terms,
conditions, understandings or agreements purporting to modify or vary this Agreement,
Shaw Industries Inc.
Agreement for Services Attachment 1
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unless hereafter made in writing and signed by the party to be bound, shall be binding on
either party.
IN WITNESS WHEREOF, the Town and Service Provider have executed this Agreement.
Town of Los Gatos by:
Laurel Prevetti, Town Manager
Recommended by:
Interim Director of Parks and Public Works
Shaw Industries Inc., by:
Title
Approved as to Form:
_____________________________________
Gabrielle Whelan, Town Attorney
Attest:
______________________________________
Shelley Neis, MMC, CPMC, Town Clerk
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Solicitation Number: 080819 CONTRACT
This Contract is between Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN
56479 (Sourcewell) and Shaw Industries, Inc., 616 E. Walnut Avenue, Dalton, GA 30721
(Vendor).
Sourcewell is a State of Minnesota local government agency and service cooperative created
under the laws of the State of Minnesota (Minnesota Statutes Section 123A.21) that offers
cooperative procurement solutions to its members. Participation is open to all levels of
governmental entity, higher education, K-12 education, nonprofit, tribal government, and other
public entities located in the United States and Canada.
Vendor desires to contract with Sourcewell to provide equipment, products, or services to
Sourcewell and its Members (Members).
For clarification and avoidance of doubt, this Contract entirely supersedes and replaces the
prior Contract version, signed on October 8, 2019.
1.TERM OF CONTRACT
A.EFFECTIVE DATE. This Contract is effective upon the date of the final signature below.
B.EXPIRATION DATE AND EXTENSION. This Contract expires October 11, 2023, unless it is
cancelled sooner pursuant to Article 24. This Contract may be extended up to one additional
one-year period upon request of Sourcewell and with written agreement by Vendor.
C.SURVIVAL OF TERMS. Articles 11 through 16 survive the expiration or cancellation of this
Contract.
2.EQUIPMENT, PRODUCTS, OR SERVICES
A.EQUIPMENT, PRODUCTS, OR SERVICES. Vendor will provide the Equipment, Products, or
Services as stated in its Proposal submitted under the Solicitation Number listed above.
Vendor’s Equipment, Products, or Services Proposal (Proposal) is attached and incorporated
into this Contract.
All Equipment and Products provided under this Contract must be new/current model. Vendor
may offer close-out or refurbished Equipment or Products if they are clearly indicated in
Vendor’s product and pricing list. Unless agreed to by the Member in advance, Equipment or
Products must be delivered as operational to the Member’s site.
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Attachment 2
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This Contract offers an indefinite quantity of sales, and while substantial volume is anticipated,
sales and sales volume are not guaranteed.
B. LAWS AND REGULATIONS. All Equipment, Products, or Services must comply fully with
applicable federal laws and regulations, and with the laws of the state or province in which the
Equipment, Products, or Services are sold.
C. WARRANTY. Vendor warrants that all Equipment, Products, and, subject to the applicable
generally-published manufacturer's limited product warranty, Services furnished are free from
liens and encumbrances, and are free from defects in design, materials, and workmanship.
Vendor’s dealers and distributors must agree to assist the Member in reaching a resolution in
any dispute over warranty terms with the manufacturer. Any manufacturer’s warranty that is
effective past the expiration of the Vendor’s warranty will be passed on to the Member.
EXCEPT AS EXPRESSLY SET FORTH HEREIN AND TO THE MAXIMUM EXTENT PERMITTED BY
LAW, VENDOR MAKES NO OTHER WARRANTIES FOR ANY EQUIPMENT, PRODUCTS, SERVICES,
OR MATERIALS PROVIDED UNDER THIS AGREEMENT AND HEREBY DISCLAIMS ALL OTHER
WARRANTIES, EXPRESS OR IMPLIED, INCLUDING THE WARRANTY OF FITNESS FOR A
PARTICULAR PURPOSE OR USE.
D. DEALERS AND DISTRIBUTORS. Upon Contract execution, Vendor will make available to
Sourcewell a means to validate or authenticate Vendor’s authorized Distributors/Dealers
relative to the Equipment, Products, and Services related to this Contract. This list may be
updated from time-to-time and is incorporated into this Contract by reference. It is the
Vendor’s responsibility to ensure Sourcewell receives the most current version of this list.
3. PRICING
All Equipment, Products, or Services under this Contract will be priced as stated in Vendor’s
Proposal.
Regardless of the payment method chosen by the Member, the total cost associated with any
purchase option of the Equipment, Products, or Services must always be disclosed in the pricing
quote to the applicable Member at the time of purchase.
When providing pricing quotes to Members, all pricing quoted must reflect a Member’s total
cost of acquisition. This means that the quoted cost is for delivered Equipment, Products, and
Services that are operational for their intended purpose, and includes all costs to the Member’s
requested delivery location.
A. SHIPPING AND SHIPPING COSTS. All delivered Equipment and Products must be properly
packaged. Damaged Equipment and Products may be rejected. If the damage is not readily
apparent at the time of delivery, Vendor must permit the Equipment and Products to be
returned within a reasonable time at no cost to Sourcewell or its Members. Members reserve
the right to inspect the Equipment and Products at a reasonable time after delivery where
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circumstances or conditions prevent effective inspection of the Equipment and Products at the
time of delivery.
Vendor must arrange for and pay for the return shipment on Equipment and Products that arrive
in a defective or inoperable condition.
Sourcewell may declare the Vendor in breach of this Contract if the Vendor intentionally
delivers substandard or inferior Equipment or Products. In the event of the delivery of
nonconforming Equipment and Products, the Member will notify the Vendor as soon as
possible and the Vendor will replace nonconforming Equipment and Products with conforming
Equipment and Products that are acceptable to the Member.
B. SALES TAX. Each Member is responsible for supplying the Vendor with valid tax-exemption
certification(s). When ordering, Members must indicate if it is a tax-exempt entity. Unless
exempt, Members shall be responsible for all applicable taxes arising from the provision of
Products, Equipment, or Services under this Contract.
C. HOT LIST PRICING. At any time during this Contract, Vendor may offer a specific selection
of Equipment, Products, or Services at discounts greater than those listed in the Contract.
When Vendor determines it will offer Hot List Pricing, it must be submitted electronically to
Sourcewell in a line-item format. Equipment, Products, or Services may be added or removed
from the Hot List at any time through a Sourcewell Price and Product Change Form as defined
in Article 4 below.
Hot List program and pricing may also be used to discount and liquidate close-out and
discontinued Equipment and Products as long as those close-out and discontinued items are
clearly identified as such. Current ordering process and administrative fees apply. Hot List
Pricing must be published and made available to all Members.
4. PRODUCT AND PRICING CHANGE REQUESTS
Vendor may request Equipment, Product, Service, or price changes, additions, or deletions at
any time. All requests must be made in writing by submitting a signed Sourcewell Price and
Product Change Request Form to the assigned Sourcewell Contract Administrator. Sourcewell's
approval of such requests shall not be unreasonably withheld. Notwithstanding anything herein to the
contrary, Sourcewell will approve all Equipment, Product, and/or Service price increases without limitation
if attributable to a material change to applicable duties, taxes, tariffs, similar charges, or other government
action, and Sourcewell will use commercially reasonable efforts to expedite the effective implementation
of such price increase. This form is available from the assigned Sourcewell Contract
Administrator. At a minimum, the request must:
Ƒ Identify the applicable Sourcewell contract number
Ƒ Clearly specify the requested change
Ƒ Provide sufficient detail to justify the requested change
Ƒ Individually list all Equipment, Products, or Services affected by the requested
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change, along with the requested change (e.g., addition, deletion, price change)
Ƒ Include a complete restatement of pricing documentation in Microsoft Excel
with the effective date of the modified pricing, or product addition or deletion. The
new pricing restatement must include all Equipment, Products, and Services offered,
even for those items where pricing remains unchanged.
A fully executed Sourcewell Price and Product Request Form will be become an
amendment to this Contract and be incorporated by reference.
5. MEMBERSHIP, CONTRACT ACCESS, AND MEMBER REQUIREMENTS
A. MEMBERSHIP. Membership in Sourcewell is open to public and nonprofit entities across the
United States and Canada; such as municipal, state/province, K-12 and higher education, tribal
government, and other public entities.
The benefits of this Contract should be available to all Members that can legally access the
Equipment, Products, or Services under this Contract. A Member’s authority to access this
Contract is determined through its cooperative purchasing, interlocal, or joint powers laws. Any
entity accessing benefits of this Contract will be considered a Service Member of Sourcewell
during such time of access. Vendor understands that a Member’s use of this Contract is at the
Member’s sole convenience and Members reserve the right to obtain like Equipment, Products,
or Services from any other source.
Vendor is responsible for familiarizing its sales and service forces with Sourcewell membership
requirements and documentation and, where appropriate, will use commercially reasonable
efforts to encourage potential members to join Sourcewell, unless such potential member is
already a member of another group purchasing organization or similar organization. Sourcewell
reserves the right to add and remove Members to its roster during the term of this Contract.
B. PUBLIC FACILITIES. Vendor’s employees may be required to perform work at government-
owned facilities, including schools. Vendor’s employees and agents must conduct themselves in
a professional manner while on the premises, and in accordance with Member policies and
procedures, and all applicable laws.
6. MEMBER ORDERING AND PURCHASE ORDERS
A. PURCHASE ORDERS AND PAYMENT. To access the contracted Equipment, Products, or Services
under this Contract, Member must clearly indicate to Vendor that it intends to access this
Contract; however, order flow and procedure will be developed jointly between Sourcewell
and Vendor. Typically a Member will issue a purchase order directly to Vendor. Members may
use their own forms for purchase orders, but it should clearly note the applicable Sourcewell
contract number. Members and/or their authorized purchasing agent, contractor, or similar designee
shall be solely responsible for noting the applicable Sourcewell contract number on all purchase
orders. Members will be solely responsible for payment and Sourcewell will have no liability for
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any unpaid invoice of any Member.
B. ADDITIONAL TERMS AND CONDITIONS. Additional terms and conditions to a purchase order
may be negotiated between a Member and Vendor, such as job or industry-specific
requirements, legal requirements (such as affirmative action or immigration status
requirements), or specific local policy requirements. Any negotiated additional terms and
conditions must never be less favorable to the Member than what is contained in Vendor’s Proposal.
C. PERFORMANCE BOND. If reasonably requested by a Member, Vendor may provide a
performance bond that meets the requirements set forth in the Member’s purchase order.
D. SPECIALIZED SERVICE REQUIREMENTS. In the event that the Member requires service or
specialized performance requirements (such as e-commerce specifications, specialized delivery
requirements, or other specifications and requirements) not addressed in this Contract, the
Member and the Vendor may enter into a separate, standalone agreement, apart from this
Contract. Sourcewell, including its agents and employees, will not be made a party to a claim
for breach of such agreement.
E. TERMINATION OF PURCHASE ORDERS. Members may terminate a purchase order, in
whole or in part, immediately upon notice to Vendor in the event of any of the following
events:
1. The Member fails to receive funding or appropriation from its governing body at
levels sufficient to pay for the goods to be purchased;
2. Federal or state laws or regulations prohibit the purchase or change the
Member’s requirements; or
3. Vendor commits any material breach of this Contract or the additional terms
agreed to between the Vendor and a Member.
F. GOVERNING LAW AND VENUE. The governing law and venue for any action related to a
Member’s purchase order will be determined by the Member making the purchase.
7. CUSTOMER SERVICE
A. PRIMARY ACCOUNT REPRESENTATIVE. Vendor will assign an Account Representative to
Sourcewell for this Contract and must provide prompt notice to Sourcewell if that person is
changed. The Account Representative will be responsible for:
Ƒ Maintenance and management of this Contract;
Ƒ Timely response to all Sourcewell and Member inquiries; and
Ƒ Business reviews to Sourcewell and Members, if applicable.
B. BUSINESS REVIEWS. Vendor must perform a minimum of one business review with
Sourcewell per contract year. The business review will cover sales to members, pricing and
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contract terms, administrative fees, supply issues, customer issues, and any other necessary
information.
8. REPORT ON CONTRACT SALES ACTIVITY AND ADMINISTRATIVE FEE PAYMENT
A. CONTRACT SALES ACTIVITY REPORT. Each calendar quarter, Vendor must provide a contract
sales activity report (Report) to the Sourcewell Contract Administrator assigned to this Contract.
A Report must be provided regardless of the number or amount of sales during that quarter
(i.e., if there are no sales, Vendor must submit a report indicating no sales were made). Except
to the extent applicable law deems the Report and its underlying information public or
requires its disclosure, the foregoing will be limited by Vendor’s applicable confidentiality
obligations, including without limitation any contractual obligations to Members.
The Report must contain the following fields:
Ƒ Customer Name (e.g., City of Staples Highway Department);
Ƒ Customer Physical Street Address;
Ƒ Customer City;
Ƒ Customer State;
Ƒ Customer Zip Code;
Ƒ Customer Contact Name;
Ƒ Customer Contact Email Address;
Ƒ Customer Contact Telephone Number;
Ƒ Sourcewell Assigned Entity/Member Number;
Ƒ Item Purchased Description;
Ƒ Item Purchased Price;
Ƒ Sourcewell Administrative Fee Applied; and
Ƒ Date Purchase was invoiced/sale was recognized as revenue by Vendor.
B. ADMINISTRATIVE FEE. In consideration for the support and services provided by Sourcewell, the
Vendor will pay an administrative fee to Sourcewell on all Equipment, Products, and Services
provided to Members under this Contract. The Vendor will submit a check payable to
Sourcewell for the percentage of administrative fee stated in the Proposal multiplied by the
total net sales of all Equipment, Products, and Services purchased by Members under this
Contract during each calendar quarter, less any applicable taxes, freight, fees, and discounts
and less amounts attributable to any Services, freight, delivery installation, unpaid invoices,
returned Products or materials, or credits issued. Orders under this Contract will only be eligible for
the administrative fee if the Member notes the applicable Sourcewell contract number on the
purchase order when submitting such purchase order. Payments should note the Sourcewell-
assigned contract number in the memo and must be mailed to the address above “Attn:
Accounts Receivable.” Payments must be received no later than forty-five (45) calendar days
after the end of each calendar quarter.
Vendor agrees to cooperate with Sourcewell in auditing transactions under this Contract to
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ensure that the administrative fee is paid on all items purchased under this Contract.
In the event the Vendor is delinquent in any undisputed administrative fees, Sourcewell
reserves the right to cancel this Contract and reject any proposal submitted by the Vendor in
any subsequent solicitation. In the event this Contract is cancelled by either party prior to the
Contract’s expiration date, the administrative fee payment will be due no more than thirty (30)
days from the cancellation date.
Sourcewell is solely responsible for notifying any Member or other entity participating
hereunder of its Administrative Fee and for complying with all laws and regulations related or
applicable to such Administrative Fee.
9. AUTHORIZED REPRESENTATIVE
Sourcewell's Authorized Representative is its Chief Procurement Officer.
Vendor’s Authorized Representative is the person named in the Vendor’s Proposal. If Vendor’s
Authorized Representative changes at any time during this Contract, Vendor must promptly
notify Sourcewell in writing.
10. ASSIGNMENT, AMENDMENTS, WAIVER, AND CONTRACT COMPLETE
A. ASSIGNMENT. Neither the Vendor nor Sourcewell may assign or transfer any rights or
obligations under this Contract without the prior consent of the parties and a fully executed
assignment agreement. Such consent will not be unreasonably withheld.
B. AMENDMENTS. Any amendment to this Contract must be in writing and will not be effective
until it has been fully executed by the parties.
C. WAIVER. If either party fails to enforce any provision of this Contract, that failure does not
waive the provision or the right to enforce it.
D. CONTRACT COMPLETE. This Contract contains all negotiations and agreements between
Sourcewell and Vendor. No other understanding regarding this Contract, whether written or
oral, may be used to bind either party.
E. RELATIONSHIP OF THE PARTIES. The relationship of the parties is one of independent
contractors, each free to exercise judgment and discretion with regard to the conduct of their
respective businesses. This Contract does not create a partnership, joint venture, master-
servant, principal-agent, or any other relationship.
11. LIABILITY
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Vendor must indemnify, save, and hold Sourcewell and its Members, including their agents and
employees, harmless from any claims or causes of action, including attorneys’ fees brought
against Sourcewell or its Member by a third party to the extent, arising out of the
performance of this Contract by the Vendor or its agents or employees; this indemnification
includes injury or death to person(s) or property alleged to have been caused by some defect in
the Equipment, Products, or Services under this Contract to the extent the Equipment,
Product, or Service has been used according to its specifications.
12. AUDITS
A. Sourcewell reserves the right to review the books, records, documents, and accounting
procedures and practices of the Vendor pursuant to this Contract solely to the extent
necessary to verify Vendor's compliance with its obligations hereunder for a minimum of six (6)
years from the end of this Contract. This clause extends to Members as it relates to
business conducted by that Member under this Contract.
13. GOVERNMENT DATA PRACTICES
Vendor and Sourcewell must comply with the Minnesota Government Data Practices Act,
Minnesota Statutes Chapter 13, as it applies to all data provided by or provided to Sourcewell
under this Contract and as it applies to all data created, collected, received, stored, used,
maintained, or disseminated by the Vendor under this Contract.
If the Vendor receives a request to release the data referred to in this article, the Vendor must
immediately notify Sourcewell and Sourcewell will assist with how the Vendor should respond
to the request.
14. INTELLECTUAL PROPERTY
As applicable, Vendor agrees to indemnify and hold harmless Sourcewell and its Members
against any and all suits, claims, judgments, and costs instituted or recovered against
Sourcewell or Members by any person on account of the authorized use of any Equipment or
Products by Sourcewell or its Members in accordance with their applicable specifications supplied
by Vendor under this Contract in violation of applicable patent or copyright laws.
15. PUBLICITY, MARKETING, AND ENDORSEMENT
A. PUBLICITY. Any publicity regarding the subject matter of this Contract must not be released
without prior written approval from the Authorized Representatives. Publicity includes notices,
informational pamphlets, press releases, research, reports, signs, and similar public notices
prepared by or for the Vendor individually or jointly with others, or any subcontractors, with
respect to the program, publications, or services provided resulting from this Contract.
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B. MARKETING. Any direct advertising, marketing, or offers with Members must be approved
by Sourcewell. Materials should be sent to the Sourcewell Contract Administrator assigned to
this Contract.
C. ENDORSEMENT. The Vendor must not claim that Sourcewell endorses its Equipment,
Products, or Services.
16. GOVERNING LAW, JURISDICTION, AND VENUE
Minnesota law governs this Contract. Venue for all legal proceedings out of this Contract, or its
breach, must be in the appropriate state court in Todd County or federal court in Fergus Falls,
Minnesota.
17. FORCE MAJEURE
Neither party to this Contract will be held responsible for delay or default caused by acts of God
or other conditions that are beyond that party’s reasonable control. A party defaulting under
this provision must provide the other party prompt written notice of the default.
18. SEVERABILITY
If any provision of this Contract is found to be illegal, unenforceable, or void then both
Sourcewell and Vendor will be relieved of all obligations arising under such provisions. If the
remainder of this Contract is capable of performance, it will not be affected by such declaration
or finding and must be fully performed.
19. PERFORMANCE, DEFAULT, AND REMEDIES
A. PERFORMANCE. During the term of this Contract, the parties will monitor performance and
address unresolved contract issues as follows:
1. Notification. The parties must promptly notify each other of any known dispute
and work in good faith to resolve such dispute within a reasonable period of time. If
necessary, Sourcewell and the Vendor will jointly develop a short briefing document
that describes the issue(s), relevant impact, and positions of both parties.
2. Escalation. If parties are unable to resolve the issue in a timely manner, as specified
above, either Sourcewell or Vendor may escalate the resolution of the issue to a higher
level of management. The Vendor will have not less than sixty (60) calendar days, unless
otherwise approved in writing, to cure an outstanding issue or, in the event such issue
cannot be cured within sixty (60) calendar days, to take material steps to cure such
issue, provided that Vendor must continue to diligently pursue such cure until complete.
3. Performance while Dispute is Pending. Notwithstanding the existence of a
dispute, the Vendor must continue without delay to carry out all of its responsibilities
under the Contract that are not affected by the dispute. If the Vendor fails to continue
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without delay to perform its responsibilities under the Contract, in the accomplishment
of all undisputed work, any additional costs incurred by Sourcewell and/or its Members
as a result of such failure to proceed will be borne by the Vendor.
B. DEFAULT AND REMEDIES. Either of the following constitutes cause to declare this Contract,
or any Member order under this Contract, in default:
1. Nonperformance of contractual requirements, or
2. A material breach of any term or condition of this Contract.
Written notice of default and a reasonable opportunity to cure must be issued by the party
claiming default. Time allowed for cure will not diminish or eliminate any liability for liquidated
or other damages. If the default remains after the opportunity for cure, the non-defaulting
party may:
Ƒ Exercise any remedy provided by law or equity, or
Ƒ Terminate the Contract or any portion thereof, including any orders issued
against the Contract.
20. INSURANCE
A. REQUIREMENTS. At its own expense, Vendor must maintain insurance policy(ies) in effect at
all times during the performance of this Contract with insurance company(ies) licensed or
authorized to do business in the State of Minnesota having an “AM BEST” rating of A- or better,
with coverage and limits of insurance not less than the following:
1. Workers’ Compensation and Employer’s Liability.
Workers’ Compensation: As required by any applicable law or regulation.
Employer's Liability Insurance: must be provided in amounts not less than listed below:
Minimum limits:
$500,000 each accident for bodily injury by accident
$500,000 policy limit for bodily injury by disease
$500,000 each employee for bodily injury by disease
2. Commercial General Liability Insurance. Vendor will maintain insurance covering its
operations, with coverage on an occurrence basis, and must be subject to terms no less
broad than the Insurance Services Office (“ISO”) Commercial General Liability Form CG0001
(2001 or newer edition). At a minimum, coverage must include liability arising from
premises, operations, bodily injury and property damage, independent contractors,
products-completed operations including construction defect, contractual liability, blanket
contractual liability, and personal injury and advertising injury. All required limits, terms
and conditions of coverage must be maintained during the term of this Contract.
Minimum Limits:
$1,000,000 each occurrence Bodily Injury and Property Damage
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$1,000,000 Personal and Advertising Injury
$2,000,000 aggregate for Products-Completed operations
$2,000,000 general aggregate
3. Commercial Automobile Liability Insurance. During the term of this Contract, Vendor
will maintain insurance covering all owned, hired, and non-owned automobiles in limits of
liability not less than indicated below. The coverage must be subject to terms no less broad
than ISO Business Auto Coverage Form CA 0001 (2010 edition or newer).
Minimum Limits:
$1,000,000 each accident, combined single limit
4. Umbrella Insurance. During the term of this Contract, Vendor will maintain
umbrella coverage over Workers’ Compensation, Commercial General Liability, and
Commercial Automobile.
Minimum Limits:
$2,000,000
5. Network Security and Privacy Liability Insurance. During the term of this
Contract, Vendor will maintain coverage for network security and privacy liability. The
coverage may be endorsed on another form of liability coverage or written on a
standalone policy. The insurance must cover claims which may arise from failure of
Vendor’s security resulting in, but not limited to, computer attacks, unauthorized
access, disclosure of not public data – including but not limited to, confidential or
private information, transmission of a computer virus, or denial of service.
Minimum limits:
$2,000,000 per occurrence
$2,000,000 annual aggregate
Failure of Vendor to maintain the required insurance will constitute a material breach entitling
Sourcewell to immediately terminate this Contract for default.
B. CERTIFICATES OF INSURANCE. Prior to commencing under this Contract, Vendor must furnish
to Sourcewell a certificate of insurance, as evidence of the insurance required under this
Contract. Prior to expiration of the policy(ies), renewal certificates must be mailed to
Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 or sent to the
Sourcewell Contract Administrator assigned to this Contract. The certificates must be signed by
a person authorized by the insurer(s) to bind coverage on their behalf. All policies must include
there will be no cancellation, suspension, non-renewal, or reduction of coverage without thirty
(30) days’ prior written notice to the Vendor.
Upon request, Vendor must provide to Sourcewell copies of applicable policies and
endorsements, within ten (10) days of a request. Failure to request certificates of insurance by
Sourcewell, or failure of Vendor to provide certificates of insurance, in no way limits or relieves
Vendor of its duties and responsibilities in this Contract.
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C. ADDITIONAL INSURED ENDORSEMENT AND PRIMARY AND NON-CONTRIBUTORY
INSURANCE CLAUSE. Vendor agrees to name Sourcewell and its Members, including their
officers, agents, and employees, as an additional insured under the Vendor’s commercial
general liability insurance policy with respect to liability arising out of activities, “operations,” or
“work” performed by or on behalf of Vendor, and products and completed operations of
Vendor. The policy provision(s) or endorsement(s) must further provide that coverage is
primary and not excess over or contributory with any other valid, applicable, and collectible
insurance or self-insurance in force for the additional insureds.
D. WAIVER OF SUBROGATION. Vendor waives and must require (by endorsement or
otherwise) all its insurers to waive subrogation rights against Sourcewell and other additional
insureds for losses paid under the insurance policies required by this Contract or other
insurance applicable to the Vendor or its subcontractors. The waiver must apply to all
deductibles and/or self-insured retentions applicable to the required or any other insurance
maintained by the Vendor or its subcontractors. Where permitted by law, Vendor must require
similar written express waivers of subrogation and insurance clauses from each of its
subcontractors.
E. UMBRELLA/EXCESS LIABILITY. The limits required by this Contract can be met by either
providing a primary policy or in combination with umbrella/excess liability policy(ies).
F. SELF-INSURED RETENTIONS. Any self-insured retention in excess of $10,000 is subject to
Sourcewell’s approval.
21. COMPLIANCE
A. LAWS AND REGULATIONS. All Equipment, Products, or Services provided under this
Contract must comply fully with applicable federal laws and regulations, and with the laws in
the states and provinces in which the Equipment, Products, or Services are sold.
B. LICENSES. Vendor must maintain a valid status on all required federal, state, and local
licenses, bonds, and permits required for the operation of the business that the Vendor
conducts with Sourcewell and Members.
22. BANKRUPTCY, DEBARMENT, OR SUSPENSION CERTIFICATION
Vendor certifies and warrants that it is not in bankruptcy or that it has previously disclosed in
writing certain information to Sourcewell related to bankruptcy actions. If at any time during
this Contract Vendor declares bankruptcy, Vendor must immediately notify Sourcewell in
writing.
Vendor certifies and warrants that neither it nor its principals are presently debarred,
suspended, proposed for debarment, declared ineligible, or voluntarily excluded from programs
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operated by the State of Minnesota, the United States federal government, or any Member.
Vendor certifies and warrants that neither it nor its principals have been convicted of a criminal
offense related to the subject matter of this Contract. Vendor further warrants that it will
provide immediate written notice to Sourcewell if this certification changes at any time.
23. PROVISIONS FOR NON-UNITED STATES FEDERAL ENTITY PROCUREMENTS UNDER
UNITED STATES FEDERAL AWARDS OR OTHER AWARDS
Members that use United States federal grant or FEMA funds to purchase goods or services
from this Contract may be subject to additional requirements including the procurement
standards of the Uniform Administrative Requirements, Cost Principles and Audit Requirements
for Federal Awards, 2 C.F.R. § 200. Members may also require additional requirements based
on specific funding specifications. Within this Article, all references to “federal” should be
interpreted to mean the United States federal government. The following list only applies when
a Member accesses Vendor’s Equipment, Products, or Services with United States federal
funds.
A. EQUAL EMPLOYMENT OPPORTUNITY. Except as otherwise provided under 41 C.F.R. § 60, all
contracts that meet the definition of “federally assisted construction contract” in 41 C.F.R. § 60-
1.3 must include the equal opportunity clause provided under 41 C.F.R. §60-1.4(b), in
accordance with Executive Order 11246, “Equal Employment Opportunity” (30 FR 12319,
12935, 3 C.F.R. §, 1964-1965 Comp., p. 339), as amended by Executive Order 11375, “Amending
Executive Order 11246 Relating to Equal Employment Opportunity,” and implementing
regulations at 41 C.F.R. § 60, “Office of Federal Contract Compliance Programs, Equal
Employment Opportunity, Department of Labor.” The equal opportunity clause is incorporated
herein by reference.
B. DAVIS-BACON ACT, AS AMENDED (40 U.S.C. § 3141-3148). When required by federal
program legislation, all prime construction contracts in excess of $2,000 awarded by non-
federal entities must include a provision for compliance with the Davis-Bacon Act (40 U.S.C. §
3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 C.F.R. § 5,
“Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted
Construction”). In accordance with the statute, contractors must be required to pay wages to
laborers and mechanics at a rate not less than the prevailing wages specified in a wage
determination made by the Secretary of Labor. In addition, contractors must be required to pay
wages not less than once a week. The non-federal entity must place a copy of the current
prevailing wage determination issued by the Department of Labor in each solicitation. The
decision to award a contract or subcontract must be conditioned upon the acceptance of the
wage determination. The non-federal entity must report all suspected or reported violations to
the federal awarding agency. The contracts must also include a provision for compliance with
the Copeland “Anti-Kickback” Act (40 U.S.C. § 3145), as supplemented by Department of Labor
regulations (29 C.F.R. § 3, “Contractors and Subcontractors on Public Building or Public Work
Financed in Whole or in Part by Loans or Grants from the United States”). The Act provides that
each contractor or subrecipient must be prohibited from inducing, by any means, any person
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employed in the construction, completion, or repair of public work, to give up any part of the
compensation to which he or she is otherwise entitled. The non-federal entity must report
all suspected or reported violations to the federal awarding agency. Vendor must be in
compliance with all applicable Davis-Bacon Act provisions.
C. CONTRACT WORK HOURS AND SAFETY STANDARDS ACT (40 U.S.C. § 3701-3708). Where
applicable, all contracts awarded by the non-federal entity in excess of $100,000 that involve
the employment of mechanics or laborers must include a provision for compliance with 40
U.S.C. § 3702 and 3704, as supplemented by Department of Labor regulations (29 C.F.R. § 5).
Under 40 U.S.C. § 3702 of the Act, each contractor must be required to compute the wages of
every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess
of the standard work week is permissible provided that the worker is compensated at a rate of
not less than one and a half times the basic rate of pay for all hours worked in excess of 40
hours in the work week. The requirements of 40 U.S.C. § 3704 are applicable to construction
work and provide that no laborer or mechanic must be required to work in surroundings or
under working conditions which are unsanitary, hazardous or dangerous. These requirements
do not apply to the purchases of supplies or materials or articles ordinarily available on the
open market, or contracts for transportation or transmission of intelligence. This provision is
hereby incorporated by reference into this Contract. Vendor certifies that during the term of
an award for all contracts by Sourcewell resulting from this procurement process, Vendor
must comply with applicable requirements as referenced above.
D. RIGHTS TO INVENTIONS MADE UNDER A CONTRACT OR AGREEMENT. If the federal award
meets the definition of “funding agreement” under 37 C.F.R. § 401.2(a) and the recipient or
subrecipient wishes to enter into a contract with a small business firm or nonprofit organization
regarding the substitution of parties, assignment or performance of experimental,
developmental, or research work under that “funding agreement,” the recipient or subrecipient
must comply with the requirements of 37 C.F.R. § 401, “Rights to Inventions Made by Nonprofit
Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative
Agreements,” and any implementing regulations issued by the awarding agency. Vendor
certifies that during the term of an award for all contracts by Sourcewell resulting from this
procurement process, Vendor must comply with applicable requirements as referenced above.
E. CLEAN AIR ACT (42 U.S.C. § 7401-7671Q.) AND THE FEDERAL WATER POLLUTION CONTROL
ACT (33 U.S.C. § 1251-1387). Contracts and subgrants of amounts in excess of $150,000 require
the non-federal award to agree to comply with all applicable standards, orders or regulations
issued pursuant to the Clean Air Act (42 U.S.C. § 7401- 7671q) and the Federal Water Pollution
Control Act as amended (33 U.S.C. § 1251- 1387). Violations must be reported to the Federal
awarding agency and the Regional Office of the Environmental Protection Agency (EPA). Vendor
certifies that during the term of this Contract will comply with applicable requirements as
referenced above.
F. DEBARMENT AND SUSPENSION (EXECUTIVE ORDERS 12549 AND 12689). A contract award
(see 2 C.F.R. § 180.220) must not be made to parties listed on the government wide exclusions in
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the System for Award Management (SAM), in accordance with the OMB guidelines at 2 C.F.R.
§180 that implement Executive Orders 12549 (3 C.F.R. § 1986 Comp., p. 189) and 12689 (3
C.F.R. § 1989 Comp., p. 235), “Debarment and Suspension.” SAM Exclusions contains the names
of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared
ineligible under statutory or regulatory authority other than Executive Order 12549. Vendor
certifies that neither it nor its principals are presently debarred, suspended, proposed for
debarment, declared ineligible, or voluntarily excluded from participation by any federal
department or agency.
G. BYRD ANTI-LOBBYING AMENDMENT, AS AMENDED (31 U.S.C. § 1352). Vendors must file
any required certifications. Vendors must not have used federal appropriated funds to pay any
person or organization for influencing or attempting to influence an officer or employee of any
agency, a member of Congress, officer or employee of Congress, or an employee of a member
of Congress in connection with obtaining any federal contract, grant, or any other award
covered by 31 U.S.C. § 1352. Vendors must disclose any lobbying with non-federal funds that
takes place in connection with obtaining any federal award. Such disclosures are forwarded
from tier to tier up to the non-federal award. Vendors must file all certifications and disclosures
required by, and otherwise comply with, the Byrd Anti-Lobbying Amendment (31 U.S.C. §
1352).
H. RECORD RETENTION REQUIREMENTS. To the extent applicable, Vendor must comply with
the record retention requirements detailed in 2 C.F.R. § 200.333. The Vendor further certifies
that it will retain all records as required by 2 C.F.R. § 200.333 for a period of three (3) years
after grantees or subgrantees submit final expenditure reports or quarterly or annual financial
reports, as applicable, and all other pending matters are closed.
I. ENERGY POLICY AND CONSERVATION ACT COMPLIANCE. To the extent applicable, Vendor
must comply with the mandatory standards and policies relating to energy efficiency which are
contained in the state energy conservation plan issued in compliance with the Energy Policy
and Conservation Act.
J. BUY AMERICAN PROVISIONS COMPLIANCE. To the extent applicable, Vendor must comply
with all applicable provisions of the Buy American Act. Purchases made in accordance with the
Buy American Act must follow the applicable procurement rules calling for free and open
competition.
K. ACCESS TO RECORDS (2 C.F.R. § 200.336). Vendor agrees that duly authorized
representatives of a federal agency must have access to any books, documents, papers and
records of Vendor that are directly pertinent to Vendor’s discharge of its obligations under this
Contract for the purpose of making audits, examinations, excerpts, and transcriptions. The right
also includes timely and reasonable access to Vendor’s personnel for the purpose of interview
and discussion relating to such documents.
L. PROCUREMENT OF RECOVERED MATERIALS (2 C.F.R. § 200.322). A non-federal entity that is
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a state agency or agency of a political subdivision of a state and its contractors must comply
with Section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation
and Recovery Act. The requirements of Section 6002 include procuring only items designated in
guidelines of the Environmental Protection Agency (EPA) at 40 C.F.R. § 247 that contain the
highest percentage of recovered materials practicable, consistent with maintaining a
satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the
value of the quantity acquired during the preceding fiscal year exceeded $10,000; procuring
solid waste management services in a manner that maximizes energy and resource recovery;
and establishing an affirmative procurement program for procurement of recovered materials
identified in the EPA guidelines.
24.CANCELLATION
Sourcewell or Vendor may cancel this Contract at any time, with or without cause, upon sixty
(60)days’ written notice to the other party. However, Sourcewell may cancel this Contract
immediately upon discovery of a material defect in any certification made in Vendor’s Proposal.
Termination of this Contract does not relieve either party of financial, product, or service
obligations incurred or accrued prior to termination.
[
Sourcewell
By: __________________________
Jeremy Schwartz
Title: Director of Operations &
Procurement/CPO
Date: ________________________
Shaw Industries, Inc.
By: __________________________
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Title: ŽŶƚƌĂĐƚ^ƉĞĐŝĂůŝƐƚ
Date: ________________________
Approved:
By: __________________________
Chad Coauette
Title: Executive Director/CEO
Date: ________________________
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