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R10-1701 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 RESOLUTION NO. R10- 1 O A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOYNTON BEACH, FLORIDA, APPROVING THE "PIGGY- BACK" OF A STATE OF FLORIDA CONTRACT ITN NO. 618- 001 -10 -1 WITH STAPLES CONTRACT & COMMERCIAL, INC., AND OFFICE DEPOT, INC., FOR THE PURCHASE OF OFFICE SUPPLIES AND EDUCATIONAL CONSUMABLES; AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A CONTRACT WITH EACH VENDOR; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, City staff has confirmed that the State of Florida , Department of Management Services has complied with Public Contract Bid requirements which equal or exceed the City of Boynton Beach's requirements; and WHEREAS, upon recommendation of staff, it is the City's desire to "piggy- back" the State of Florida Contracts ITN No. 618 - 001 -10 -1 with Staples Contract & Commercial, Inc., and Office Depot, Inc., for the purchase of office supplies and educational consumables, and authorizes the Mayor and City Clerk to sign Contracts. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF BOYNTON BEACH, FLORIDA, THAT: Section 1. The foregoing "Whereas" clauses are hereby ratified and confirmed as being true and correct and are hereby made a specific part of this Resolution upon adoption. Section 2. The City Commission of the City of Boynton Beach, Florida, hereby approves the "piggy- back" of the State of Florida Contracts ITN No. 618 - 001 -10 -1 with Staples Contract & Commercial, Inc., and Office Depot, Inc., for the purchase of office SACA \RESO\Agreements \Reso - Piggy -Back State - Office Supplies.doc 1 2 3 4 5 6 7 8 9 10 11 12,' 13 14 15 16 17 18 j 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 supplies and educational consumables., and authorizes the Mayor and City Clerk to sign Contracts, a copy of the Contracts are attached hereto as Exhibits "A" and "B ". Section 3. That this Resolution shall become effective immediately. PASSED AND ADOPTED this /� day of November, 2010. CITY OF BOYNTON BEACH, FLORIDA Mayor — J Rodriguez Vice yor — lene Ross GZ , Commi ioner — William Oi ATTEST: JVyy M. Prainito, MMC ler k e/ Commissi w — Woodrow L. H Commis ><on — Stev Holzm S \CA \RESMAgreements \Reso - Piggy -Back State - Office Supplies.doc hd - /1 ° EXECUTION COPY THE STATE OF FLORIDA, DEPARTMENT OF MANAGEMENT SERVICES PIGGYBACK CONTRACT BETWEEN CITY OF BOYNTON BEACH AND OFFICE DEPOT, INC. This Piggyback Contract ( "Contract ") is made and entered into this 3rd day of January, 2011 ( "Effective Date "), by and between City of Boynton Beach (hereinafter referred to as the "Customer "), and Office Depot, Inc., a Delaware corporation with corporate headquarters located at 6600 North Military Trail, Boca Raton, FL 33496 (hereinafter referred to as "Office Depot "). WITNESSETH: WHEREAS, the State of Florida, Department of Management Services and Office Depot entered into that Contract 618 - 000 -11 -1, effective as of October 18, 2010, for Office and Education Consumables, pursuant to Invitation to Negotiate No. 618 - 001 -10 -1 (the "Master Agreement "); and WHEREAS, the Master Agreement permits government entities to purchase goods and services in accordance with terms and conditions set forth in the Master Agreement; and WHEREAS, the Customer has determined that the terms and conditions of the Master Agreement would be economically beneficial to the Customer; and WHEREAS, the Customer has determined that the most effective and feasible manner of obtaining office supplies and services offered under the Master Agreement is for the Customer to become a participating government agency under the Master Agreement; and WHEREAS, the Customer is eligible to purchased under the Master Agreement; and WHEREAS, the undersigned representative of the Customer is authorized, on behalf of the Customer, to contract with Office Depot for the purchase of the office supplies and services in accordance with the terms of the Master Agreement. NOW, THEREFORE, in consideration of the mutual covenants, benefits and promises herein stated and in conjunction with the cooperative agreement referenced, the parties hereto agree to the following terms and conditions: INCORPORATION OF MASTER AGREEMENT The purpose of this Contract is to allow the Customer to purchase supplies from Office Depot at the discounted prices set forth in the Master Agreement. To that end, the Master Agreement is hereby incorporated by reference as if set forth herein in its entirety, including all subsequent amendments thereto. However, to the extent any terms and conditions set forth in the Master Agreement (excepting any terms and conditions relating to price and cost) conflict with any terms and conditions of this Contract (the "Supplemental Terms "), the Supplemental Terms shall prevail. 2. CREDIT TERMS Customer's credit limit shall be established by Office Depot's credit department. Office Depot reserves the right to lower Customer's credit limit or refuse to ship any orders if at any time: (a) Customer's account is materially past due and Customer has not responded with a reasonable response within three (3) business days of written notice of said delinquency to work with Office Depot to resolve the issues; (b) in Office Depot's commercially reasonable opinion, Customer's credit standing becomes impaired as a result of Customer's payment habits having slowed down to an unsatisfactory level with all non - critical suppliers including Office Depot; (c) Customer's EXECUTION COPY financial condition becomes unstable based on Customer's financial reports or reputable third party ratings, or (d) if there are severe risk alerts from reputable third party credit bureaus. 3. NOTICES All notices, requests, demands and other communications under this Agreement shall be given in writing. Such notices shall be deemed to have been given when delivered in person or three (3) business days after being sent via certified mail or upon delivery if sent via reputable overnight delivery service and addressed to the appropriate party at its mailing address set forth below: To Customer: City of Boynton Beach 100 E Boynton Beach Blvd Boynton Beach, FL 33435 Attn: Carol Doppler, Purchasing Director To Office Depot: Office Depot, Inc. 5345 Oakbrook Parkway Norcross, GA 30093 Attn: James E. Pollman, Regional Vice President with a copy to: Office Depot, Inc. 6600 North Military Trail Boca Raton, FL 33496 Attn: Office of the General Counsel 4. TERMINATION FOR CONVENIENCE Either party may terminate this Contract for convenience by providing the other party sixty (60) days prior written notice. IN WITNESS WHEREOF, the Customer and Office Depot have executed this Contract on the Effective Date. OFFICE DEPOT, INC. ICI CITY OF BOYNTON BEACH By:.ill�it�• KU .. Title: CITY u_N Date: ► Q- W e �E PAR7MENT r v Governor Charlie Crist OF MANAGEMENT 1ces CERTIFICATION OF CONTRACT TITLE: Office and Educational Consumables CONTRACT NO.: 518- 000 -11 -1 l'rN No.: 618- 001 -10 -1 EFFECTIVE: October 18, 2010 through October 1.7, 2013 SUPERSEDES: 6 001 - -ACS CONTRACTORS: Gulf Coast Office Products Office Depot Staples Contract & Commercial, Inc. Division of State Purchas ng 4050 Esplanade Way, Suite 360 Tallahassee, Florida 32399 -0950 Tel' 850 488,8+10 Fax; 850A 1+6122 www.dm , ;.MyFlorida.com Secretary Linda H. South ANY QUESTIONS, SUGGESTIONS, OR CONTRACT SUPPLIER ISSUES WHICH MAY ARISE SHALL BE BROUGHT TO THE ATTENTION OF MARK HERNANDEZ AT (850) 414- 6741, E -MAIL: mat 'k.hemandez(@dms.myflorida.com A. AUTHORITY - Upon affirmative action taken by the State of Florida Department of Management Services, a contract has been executed between the State of Florida and the designated contractors. B. EFFECT - This contract was entered into to provide economies in the purchase of Office and Educational Consumables by all State of Florida agencies and institutions. 'Therefore, in compliance with Section 287.042, Florida Statutes, all purchases of these commodities shall be made tinder the terms, prices, and conditions of this contract and with the suppliers specified. C. ORDERING INSTRUCTIONS - All purchase orders shall be issued in accordance with the attached ordering instructions. Purchaser shall order at the prices indicated. exclusive of all Federal, State and local taxes. All contract purchase orders shall show the State Purchasing contract number, product number, quantity, description of item, with unit prices extended and purchase order totaled. (This requirement may be waived when purchase is made by a blanket purchase order.) D. CONTRAC "roil 1 - Agencies shall report any vendor failure to perform according to the requirements of this contract on Complaint to Vcndor, form PUR 7017. Should the vendor fail to correct the problem within a prescribed period of time, then form PUR 7029, Request for Assistance, is to be filed with this office. We serve those who serve Florida. 483 of 745 E. S I?ECIAl- AND CENMRAi, CoNDMONS - Special and general conditions are enclosed for your information. Any restrictions accepted from the supplier are noted on the ordering. instructions. Anthony Garcia Purchasing Director (date) 5'Cn'I'ii I'ukrr fACn G • 405th li ri,nuniNlC +nti •'l nLr nF[A sn., FLORIDA 33399. 0950 • ` ELGPHUNLI50.488 -8440 • FA,x:850- 414 -6122 484 of 745 INVITATION To NEGOTIATE (ITN) FOR OFFICE AND EDUCATIONAL CONSUMABLES ITN No. 618 -001 -10 -1 ITN ISSUE DATE: MARCH 31, 2010 RESPONSES DUE: APRIL 30, 2010 REFER ALL INQUIRIES TO: DANIELLE KOSBERG, PMP LEAD PURCHASING ANALYST DIVISION OF STATE PURCHASING DEPARTMENT OF MANAGEMENT SERVICES 4050 ESPLANADE WAY, SUITE 360 TALLAHASSEE, PL 32399 TELEPHONE: 850-413-0474 EMAIL: DANIELLE, KOSBERG @DMS.MYFLORIDA.COM 618 - 001 -10 -1 Office and Educational Consumables ITN Page 3 of 73 485 of 745 CONTRACT DETWEEN FLORIDA DEPARTMENT OF MANAGEMENT SERVICES AND STAPLES CONTRACT & COMMERCIAL, INC. CONTRACT 618 - 000 -11 -1 This Contract is by and between the State of Florida, Department of Management Services (Department), Division of Stale Purchasing (Division), an agency of the State of Florida with offices at 4050 Esplanade Way, Tallahassee, Florida 32399 -0950, and Staples Contract & Commercial, hoc. (Contractor). Whereas, the Contractor replied to the Division's Invitation to Negotiate (rTN), No.: 61$- 001 -10 -1 — Office and Educational Consumables; and Whereas, the Division negotiated and accepted the best terms and conditions for Office and Educational Consumables pursuant to Section 287.057(1) (c). Accordingly, and in consideration of the mutual promises contained in the Contract documents, the Department and the Contractor do hereby enter into this Contract. 1.0 NAME OF PROJECT Office and Educational Consumables. 2.0 SUMMARY OF THE CONTRACTUAL SERVICES (SCOPE OF WORD The scope of products for this Office and Educational Consumables contract are described in section 1,2 of the ITN document and are summarized in the table below. The Product Categories listed below refers to categories covered under this agreement. Pttoduct Categories lu Scope I • Consumables • Breakrootn & Cleaning Supplies • Folders, Binders & Accessories • Taper — Other • Paper - 20# White (Recycled and Virgin) • Toner HP • Toner Non HP • Toner RemanufactuxW • IT peripherals • Equipment 3.0 DELIVERABLES The ITN identifies all the performance requirements and expectations to be satisfied by the contractor throughout the term of the contract. However, included below are the primary deliverables related to the scope of work above. Also included below are the required minim level of service and criteria for evaluating successful completion of each deliverable. The Contractor will provide the following Deliverables: 3.1 Monthly Service Level Agreement Metrics and Reports; Contract No.: 618 - 400 -11 -1 Page 1 of 6 486 of 745 A. Delivery Timing — The Contractor shall maintain an on -time delivery rate of 95% or greater. On -time delivery will be defined as delivery of order within two (2) business days of placement of order. This SLA supersedes Section 4.11 Transportation and Delivery of the General Conditions. The contractor shall submit to the Department t3tis monthly service level agreement report in Microsoft Excel that details the on -time delivery rate. Specifically, the report shall include the number of orders delivered complete within the 2 business day requirement divided by total number of orders delivered. B. Order Accuracy - The Contractor shall maintain an order accuracy rate of 98% or greater. Order accuracy rate is defined as the number of items delivered as ordered divided by the total number of items ordered. Tire contractor shall submit to the Department this monthly service level agreement report in Microsoft Excel that details the order accuracy rate. Specifically, the report shall include the number of orders with order accuracy rate of more than 98% divided by total number of orders. C. Order Completeness / Fill - The Contractor shall maintain an order fill rate of 95% or greater. Order fill rate is defined as a number of items on an order filled completely as ordered divided by to the total number of lines on an order. The contractor shall submit to the Department this monthly service level agreement report in Microsoft Excel that details the order fill rate. Specifically, the report shall include Number of orders with order fill rate of more than 95% divided by total number of orders. D. Price Accuracy - The Contractor shall maintain a price accuracy rate of 99.5% or greater. Price accuracy is defined as the number of audited items each month where the net price (calculated by multiplying the list price by 1 minus the discount % for that product category) is equal to or less than the contract price (calculated by multiplying the list price, outlined in Section 3.2, by 1 minus the discount % for that product category). The Contractor shall obtain a third party firm at no additional cost to the State to conduct external price audits on this contract. The Contractor shall contract with a third party firm (to be approved by the Department) to conduct a monthly random sampling (a minimum of $70 items per month) of contract items to confirm the accuracy of list price, discount % and net price. Specifically, the third party firm will confirm the prices displayed on the Contractor's website are equal to or less than the contract terms. The third party firm shall provide a monthly report to the Department indicating the Price Accuracy Rate (Price Accuracy Rate = the number of audited items each month where the net price (calculated by multiplying the list price by 1 minus the discount % for that product category) is equal to or less than the contract price (calculated by multiplying the list price, outlined in Section 3.2, by 1 minus the discount % for that product category) divided by the number of audited items). Also, at a mini mum, the monthly report shall identify items not in compliance with the contract terms, provide the date of the audit, and screenshots of the Contractor's on -line catalog of all items in the random sample that were not in compliance with the contract terms. E. Hickorder Fill — The contractor will ship backorders within five (5) calendar days of original order, unless special circumstances apply. The contractor will submit to the Department at the customer or the Departments request a report in Microsoft Excel that details the item name and product ID, reason for shortage, and plan of action when delivery may be expected or suggested replacement). 3.2 Quarterly Sales Report Data: The Contractor shall report sales data to the Contract Manager on a quarterly basis using the Contract Quarterly Reporting Form in Attachment G — Quarterly Reporting Fortin. Contract No.: 618- 000 -11 -1 Page 2 o£6 487 of 745 The following summary data must be reported to the Contract Manager on a quarterly basis: • Total purchases on the contract for the quarter • Total purchases on the contract for the quarter by Eligible 'User • Total purchases for the quarter made using the State's Purchasing Card • Total Certified Vendor (including Minority, Women, and Service - Disabled Veteran) purchases for the quarter by Eligible User. The following detailed data trust be, reported to the Contract Manager on a quarterly basis in Excel spreadsheet format: r Eligible User (Customer) Entity Name • Product Category + Item Description • Manufacturer Name Manufacturer Part Number • UPC + Unit of Measure r Quantity Shipped r Date shipped r List Price • Invoice Price • Core Item Flag (indicates if item is on Core Items list) • P-Card Flag (indicates if transaction was paid for using a P- Card). + Flag Purchases made within the stores (if applicable) 3.3 Annual Service Level Agreement Metrics and Reports: A. Price Accuracy . The Contractor shall maintain a price accuracy rate of 49.3% or greater. Price accuracy is defined as the number of audited items each month where the net price (calculated by multiplying the list price by 1 minus the discount % for that product category) is equal to or less than the contract price (calculated by multiplying the list price, outlined in Section 3.2, by 1 minus the discount % for that product category). The Contractor shall Contract with a third party firm (to be approved by the Department) to conduct an annual (on each anniversary of the contract effective date) sampling of Customer invoices (a minimum of 600 customer invoices for the 12 month period) to confirm accuracy of list prices and discount %, and that net prices of invoiced items are equal to or less than the contract terms. Specifically, the third party firm will confirm the price charged to the Customer is equal to or less than the contract terms during that time period. The third party firm shall provide an annual report to the DvTartment indicating the Price Accuracy Rate (price Accuracy Rate — the number of audited items each year where the net price (calculated by multiplying the list price by 1 minus the discount % for that product category) is equal to or less than the contract price (calculated by multiplying the list price, outlined in Section 3.2, by 1 minus the discount % for that product category) divided by the number of audited items). Also, at a minimum, the annual report will include copies of the invoices in the random sample that were not in compliance with the contract terms. Contract No.: 618-000-11-1 Page 3 of 6 488 of 745 4.0 SUMMARY OF PENALTY FOR FAILURE OF CONTRACTOR TO MEET DEL VERALBES The Contractor is required to meet the performance standards as described in Section 3.0 above. Contractor is required to meet performance standards for Delivery Timing, Order Accuracy, Order Completeness/Fill and price Accuracy on standard contract'orders only, special/custom orders can be excluded from the calculations of these performance standards. Failure to meet the performance standards recified will result in the specified damages to the State as shown in the chart below. On the 15 of the month following the month being reported, the Contractor shall submit a report to the Contract Administrator containing the information required in Section 3.0 above. Performance Assurances, if applicable, will be paid via check or money order made out to the Department of Management Services in US Dollars within 30 days after report submission. These damages are assessed for failures over each 12 month period beginning with the first full month of contract performance and every 12 months thereafter. Item First Second :.' hird Fourth Fifth £arch' Failure Failure �ilore Failuirci . Failurew . Add nsl; Failure Submit Report $0 $500 $500 $ _ $2 L 00 0 $ 3,0 0 0 Delivery $0 $0 $1,000 $1,000 $2,000 $3,000 Timing — less than 95% on time Order $0 $a $1,000 $1,000 $2,000 $3,000 Accuracy — less than 98% of items delivered are accurate Order $0 $0 $1,000 $1,000 $2,000 $3,000 Completeness/ Fill — less than 95 % Price Accuracy $0 $0 $2,000 $3,000 $4,000 $5,000 — less than 9 9.5% *Note: if respondent fails to meet the performance standards 5 or more times to a 11 month contract period, the State shall have grounds to initiate contract breach and termination proceedings. 5.0 EFFEG°>t'IVE DATE This Contract shall begin on October 18, 2010, or on the last date in which it is signod by all parties, whichever is later. 6.0 EXPIRATION DATE This Contract shall expire three years from the effective date of the Contract, unless cancelled earlier in accordance with its terms. 7.0 RENEWAL Upon mutual written agreement, the Department and the Contractor tray renew the Contract for up to three (3) years as allowed by Section 287.057 (13)(a), Florida Statutes and pursuant to the provision of PUR 1000 Section 26. Contract No.: 618 - 000 -11 -1 Page 4 of 6 489 of 745 8.0 INTELLECTUAL PROPERTY The parties do not anticipate that any intellectual property will be developed as a result of this contract, Any intellectual property developed as a result of this contract will belong to and be the sole property of the state. "This provision will survive the termination or expiration of the contract. 9.0 PREFERRED PRICE The Contractor agrees to submit to the Department at least annually an affidavit from an authorized representative attesting that the Contractor is in compliance with the preferred pricing provision in Section 5.14 Best Pricing Comparison of the ITN. 10.0 CONTRACT DOCUMENTS This Contract, together with the following attached documents, set forth the entire understanding of the parties with respect to the subject matter. In case of conflict, the terms of this Contract shall control. If a conflict exists among any of the attached documents, the documents shall have priority in the order listed: A. ATTACHMENT It Office and Educational Consumables ITN No.: 618- 001 -10 -1, as amended, U. ATTACHMENT 11: Contractor's Response to the ITN. C. ATTACHMENT M: Contractor's Best and Final Offer Pricing. 11.0 CONTRACT MANAGEMENT A. Contract Manamer The Department employee who is primarily responsible for overseeing the Contractor's performance of its duties and obligations pursuant to the terms of this Contract. The Contract Manager shall be as follows: Mark Hernandez Division of State Purchasing Department of Management Services 4050 Esplanade Way 'fallahassee, FL 32399 -0950 Telephone: (830) 414 -6741 Fax - (850) 414 -6122 E- mail: rrwk.hernandez@dm&MXAorida.co The Department may appoint a different Contract Manager, which shall not constitute an amendment to the Contract, by sending written notice to Contractor. Any communication to the Department relating to the Contract shall be addressed to the Contract Manager, B. Ca tractor's Representa #ve Steven Schumacher Staples Contract & Commercial, Inc. 4661 Oak Fair Drive Tampa, FL, 33610 Telephone: (813) 627 -4821 Fax: (813) 527.4871 E -mail: ateven.schumnherRstaples. om Contract No.: 618 - 400 -11 -1 Page 5 of 6 490 of 745 State of Florida Approved as to form and legality Department of Management Services by the Department General Counsel's Office By: Linda T, oath Date Date Contractor: Staples Contract & Commereia4 Inc. Sig re Print Name 101150 /n Date Contract No,: 619-000-11-1 G JQ INITIALS .AT Page 6 of 6 491 of 745 Attachment Il: Contractor's Response to the ITN. 492 of 745 Attachment III: Contractor's Best and Final Offer Pricing 493 of 745 CONTRACT BETWEEN FLORIDA DEPARTMENT OF MANAGEMENT SERVICES AND OFFICE DEPOT CONTRACT 618- 000 -11 -1. This Contract is by and between the State of Florida, Department of Management Services (Department), Division of State Purchasing (Division), an agency of the State of Florida with offices at 4050 Esplanade Way, Tallahassee, Florida 32399 -0950, and Office Depot (Contractor). Whereas, the Contractor replied to the Division's Invitation to Negotiate (ITTI), No.: 618- 001 -10 -1 — Office and Educational Consumables and Whereas, the Division negotiated and accepted the best terms and conditions for Office and Educational Consumables pursuant to Section 287.057(1) (c). Accordingly, and in consideration of the mutual promises contained in the Contract documents, the Department and the Contractor do hereby enter into this Contract. 1.0 NAME OF PROJECT Office and Educational Consumables, 2.0 SUMMARY OF TPXE CONTRACTUAL SERVICES (SCOPE OF WORK) The scope of products for this Office and Educational Consumables contract are described in section 1.2 of the ITN document and are summarized in the tabic below. The ;Product Categories listed below refers to categories covered under this agreement. Product Categories in Scope • Consumables • Breakroom & Cleaning Supplies • Polders, Binders &: Accessories • Paper — Other • Paper - 20 White (Recycled and Virgin) • Toner HP • Toner Non HP • Toner Remanufactured • IT Peripherals • Equipment 3.0 AET tVERABLES The ITN identifies all the performance requirements and expectations to be satisfied by the contractor throughout the term of the contract. However, included below are the primary deliverables related to the scope of work above. Also included below are the required minimum level of service and criteria for evaluating successful completion of each deliverable, The Contractor will provide the following Deliverables: 11 Monthly Service Level Agreement Metrics and Reports: Contract No.: 618- UUU -11 -1 Pa 1 of 494 of 745 A. Delivery Timing — The Contractor shall maintain an on -time delivery rate of 95% or greater. On -time delivery will be defined as delivery of order within two (2) business days of placement of order. This SLA supersedes Section 4.11 Transportation and Delivery of the General Conditions. The contractor shall submit to the Department this monthly service level agreement report in Microsoft Excel that details the on -time delivery rate. Specifically, the report shall include the number of orders delivered complete within the 2 business day requirement divided by total number of orders delivered. B. Order Accuracy - The Contractor shall maintain an order accuracy rate of 9$% or greater. Order accuracy rate is defined as the number of items delivered as ordered divided by the total number of items ordered. The contractor shall submit to the Department this monthly service level agreement report in Microsoft Excel that details the order accuracy rate. Specifically, the report shall include the number of orders with order accuracy rate of more than 98% divided by total number of orders. C. Order Completeness / Fill - The Contractor shall maintain an order fill rate of 95% or greater, Order fill rate is defined as a number of items on an order filled completely as ordered divided by to the total number of lines on an order, The contractor shal l submit to the Department this monthly service level agreement report in Microsoft Excel that details the order fill rate. Specifically, the report shall include Number of orders with order fill rate of more than 95% divided by total number of orders. D. )Price Accuracy - The Contractor shall maintain a price accuracy rate of 99.5% or greater. Price accuracy is defined as the number of audited items each month where the net price (calculated by multiplying the list price by 1 minus the discount % for that product category) is equal to or less than the contract price ( caiculated by multiplying the list price, outlined in Section 3.2, by 1 minus the discount % for that product category). The Contractor shall obtain a third parry firm at no additional cost to the State to conduct external price audits on this contract. The Contractor shall contract with a third party firm (to be approved by the Department) to Conduct a monthly random sampling (a minimum of 570 items per month) of contract items to confirm the accuracy of list price, discount and net price. Specifically, the third party firm will confirm the prices displayed on the Contractor's website are equal to or less than the contract terms. The third party firm shall provide a monthly report to the Department indicating the Price Acouracy Rate (Price Accuracy Rate = the number of audited items each month where the net price (calculated by multiplying the list price by 1 minus the discount % for that product category) is equal to or less than the contract price (calculated by multiplying the list price, outlined in Section 3.2, by 1 minus the discount % for that product category) divided by the number of audited items). Also, at a minimum, the monthly report shall identify items not in compliance with the contract terms, provide the date of the audit, and screenshots of the Contractor's on -line catalog of all items in the random sample that were not in compliance with the contract terms. E. Backorder Fill — The contractor will ship backorders within five (5) calendar days of original order, unless special circumstances apply. The contractor will submit to the Department at the customer or the Departments request a report in Microsoft Excel that details the item name and product ID, reason far shortage, and plan of action when delivery may be expected or suggested replacement). 3.2 Quarterly Sales Report Data: The Contractor shall report sales data to the Contract Manager on a quarterly basis using the Contract Quarterly Reporting Form in Attachment G — Quarterly Reporting Form. Contract No.: 618-000-11-1 Page 2 of 495 of 745 The following summary data must be reported to the Contract Manager on a quarterly basis: • Total purchases on the contract for the quarter • Total purchases on the contract for the quarter by Eligible User • Total purchases for the quarter made using the State's Purchasing Card Total Certified Vendor (including Minority, Women, and Service - Disabled Veteran) purchases for the quarter by Eligible User, The following detailed data must be reported to the Contract Manager on a quarterly basis in Excel spreadsheet format: • Eligible User (Customer) Entity Name Product Category • Item Description • Manufacturer Name • Manufacturer Part Number • UPC • Unit of Measure • Quantity Shipped • Date Shipped • List Price • Invoice price • Core Item Flag (indicates if item is on Core Items list) • P -Card Flag (indicates if transaction was paid for using a P- Card). • Flag Purchases made within the stores (if applicable) 3.3 Annual Service Level Agreement Metrics and Reports: A. Price Accuracy - The Contractor shall maintain a price accuracy rate of 99.5% or greater. Price accuracy is deFned as the number of audited items each month where the net price (calculated by multiplying the list price by 1 minus the discount % for that product category) is equal to or less than the contract price (calculated by multiplying the list price, outlined in Section 3.2, by I minus the discount % for that product category). The Contractor shall Contract with a third party firm (to be approved by the Department) to conduct an annual (on each anniversary of the contract effective date) sampling of Customer invoices (a minimum of 640 customer invoices for the 12 month period) to confirm accuracy of list prices and discount %, and that net prices of invoiced items arc equal to or less than the contract terms. Specifically, the third party firm will confirm the price charged to the Customer is equal to or less than the contract terms during that time period. The third parry firm shall provide an annual report to the Department indicating the Price Accuracy Rate (Price Accuracy Rate = the number of audited items each year where the net price (calculated by multiplying the list price by 1 minus the discount % for that product category) is equal to or less than the contract price (calculated by multiplying the list price, outlined in Section 3.2, by I minus the discount % for that product category) divided by the number of audited items). Also, at a minimum, the annual report will include copies of the invoices in the random sample that were not in compliance with the contract terms. Contract No.: 618-000-11 - i Page 3 of G 496 of 745 4.0 SUMMARY OF PEANALTY FOR FAILURE OF CONTRAC'T'OR TO MTIET DELIVER A.LRES The Contractor is required to meet the performance standards as described in Section 3.0 above. Contractor is required to meet performance standards for Delivery Timing, Order Accuracy, Order Completeness/Fill and Price Accuracy on standard contract orders only, special /custom orders can be excluded from the calculations of these performance standards. Failure to meet the performance standards specified will result in the specified damages to the State as shown in the chart below. On the 15" of the month following the month being reported, the Contractor shall submit a report to the Contract Administrator containing the information required in Section 3.0 above. Performance Assurances, if applicable, will be paid via check or money order made out to the Department of Management Services in US Dollars within 30 days after report submission. These damages are assessed for failures over each 12 month period beginning with the first full month of contract performance and every 12 months thereafter. Item First Second Third Fourth Fifth Each Failure Failure Failure Failure Failure* Additional Failure Submit Report $0 I $500 $500 $1,000 $2,000 $3000 Delivery $0 $0 $1,000 $1,000 $2,000 $3,000 Timing -- less than 95% on time Order $0 $0 $1,000 $1,000 $2,000 $3,000 Accuracy — less than 98% of items delivered are accurate Order $0 $0 $1,000 $1,000 52,000 $3,000 Completeness/ Fill — less than 95% Price Accuracy $0 $0 $2,000 $3,000 $4,000 $5,000 — Iess than 99.5% *Note: if respondent fails to meet the performance standards 5 or more times in a 12 month contract period, the State shall have grounds to initiate contract breach and termination proceedings. 5.0 EFFECTIVE ]DATE This Contract shall begin on October 18, 2010, or on the last date in which it is signed by all parties, whichever is later. 6.0 EXPIRATION DATE This Contract shall expire three years from the effective date of the Contract, unless cancelled earlier in accordance with its terms. 7,0 RENEWAL, Upon mutual written agreement, the Department and the Contractor may renew the Contract for up to three (3) years as allowed by Section 287.057 (13)(a), Florida Statutes and pursuant to the provision of PUR 1000 Section 26. Contract No.: 618 - 000 -11 -1 Page 4 of 6 497 of 745 8.0 INTELLECTUAL PROPERTY The parties do not anticipate that any intellectual property will be developed as a result of this contract. Any intellectual property developed as a result of this contract will belong to and be the sole property of the state. This provision will survive the termination or expiration of the contract. 9.0 PREFERRED PRICE The Contractor agrees to submit to the Department at least annually an affidavit from an authorized representative attesting that the Contractor is in compliance with the preferred pricing provision in Section 5.14 Best Pricing Comparison of the ITN. 1.0.0 CON'T'RACT DOCUMIN'T'S This Contract, together with the following attached documents, set forth the entire understanding of the parties with respect to the subject matter. In case of conflict, the terms of this Contract shal I control. If a conflict exists among any of the attached documents, the documents shall have priority in the order listed: A. ATTACHMENT I: Office and Educational Consumables ITN No.. 618- 001 -10 -1, as amended. B. ATTACHMENT Tx: Contractor's Response to the ITN. C. ATTACEUVIENT III: Contractor's Best and Final Offer Pricing. I1.0 CONTRACT MANAGENWN'T A. Contract Manager The Department employee who is primarily responsible for overseeing the Contractor's performance of its duties and obligations pursuant to the terms of this Contract, The Contract Manager shall be as fol lows: Mark Hernandez Division of State Purchasing Department of Management Services 4050 Esplanade Way Tallahassee, FL 32399 -0950 Telephone: (850) 414 -6741 Fax: (850) 414.6122 E -mail: mark.hep dez r� dms,mvflorida.00m The Department may appoint a different Contract Manager, which shall not constitute an amendment to the Contract, by sending written notice to Contractor. Any communication to the Department relating to the Contract shall be addressed to the Contract Manager. B. Contract is Rearese►atative Morrie Norwood Office Depot 4300 -1 Tennessee Street Tallahassee, FL 32034 [city, state, zip] Telephone 850- 575 -0255 Fax: 850 - 575 -1581 E -mail: mom rwood fficede t.cotn Contract No.- 618- 000 -11 -1 .Page 5 oP6 498 of 745 State of Florida Department of Management Services k, By: Linda S South /V �f Date Contractor: gn ,ie Print Name — ioj to Date �' C:oai cract No.: 418- 000 -11 -1 Approved as to form and legality by the Departme General Counsel's Office by • N 5enne— - hate 499 of 745 Page 6 of 6 Attachment If: Contractor's Response to the ITN. 500 of 745 Attachment IU: Contractor's Best and Final Offer Pricing 501 of 745 Product Category BAFO Office Depot Discount % off List Core Breakroom tx Cleaning Su lies 40% Consumables 66% Folders Binders & Accessories 70% Toner - HP 35% Toner - Non HP 32% IT Perl herals 34% E ui ment 30 % Nan -Core Breakroom & Cleaning Supplies 40% Consumables 66% Folders Binders & Accessories 70% Pa er -Other 60% Toner- HP 35% Toner- Nan HP 32% Toner - Reman 63% IT Peripherals 34% Equipment 30% Generic Core and Non -Core Consumables 79% Folders, Binders & Accessories 75% Equipment 36 % M Peripherals 32% Paper - Other 71% Breakroom & Cleaning Supplies 55% Paper - 20# White (Recycled and Vir in 79% Toner - Non H P 01% Toner — Remanufactured 83% 502 of 745