Loading...
HomeMy WebLinkAboutReso 2020-3094RESOLUTION NO. 2020 - 3`0 - - A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, AUTHORIZING THE CITY MANAGER OR DESIGNEE TO PURCHASE NECESSARY OFFICE AND OTHER SUPPLIES FROM STAPLES FOR FISCAL YEAR 2020-2021, IN AN AMOUNT NOT TO EXCEED FIFTY-FIVE THOUSAND DOLLARS ($55,000.00), SUBJECT TO CERTAIN CONDITIONS; AUTHORIZING THE CITY MANAGER TO DO ALL THINGS NECESSARY TO EFFECTUATE THIS RESOLUTION; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Sunny Isles Beach currently purchases supplies and equipment, many of which are purchased from Staples; and WHEREAS, staff will utilize a contract through the State of Florida Contract No. 44111513-17-01 to purchase office supplies as well as other supplies from Staples; and WHEREAS, Section 62-13(C) of the City Code provides the authority to access a competitively solicited contract from any other governmental organization; and WHEREAS, the City wishes to authorize the blanket purchase order for Staples for supplies and equipment, in an amount not to exceed Fifty -Five Thousand Dollars ($55,000.00). NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, AS FOLLOWS: Section 1. Authorization to Purchase. The City Commission hereby authorizes a blanket purchase order to Staples for fiscal year 2020-2021, in an amount not to exceed Fifty -Five Thousand Dollars ($55,000.00). The City Manager shall seek additional authority from the City Commission if the $55,000.00 cap is exceeded. Section 2. Authorization of City Manager. The City Manager is hereby authorized to do all things necessary to effectuate this Resolution. Section 3. Effective Date. This Resolution will become effective upon adoption. PASSED AND ADOPTED this 17th day f Sep mber 2020. r 82020 — Staples Blanket PO H. Scholl, Mayor APPROVED AS TO FORM AND LEG&L SUFF C CY Edward A. Dion, City Attorney Moved by:�5/U//� rn�*VSeconded by:&gjg4S5/07 y✓ L4N Vote: ¢ 'O Mayor Scholl—/05, Vice Mayor Svechin Commissioner Goldman Commissioner Lama Commissioner Viscarra 82020 — Staples Blanket PO (Yes) (No) (Yes) (No) (Yes) (No) a/ Yes) (No) Ll (Yes) (No) SJNNY IS,e City of Sunny Isles Beach - 18070 Collins Avenue Sunny Isles Beach, Florida 33160 S A9�. (305) 947-0606 City Hall e� FLOA e` (305)949-3113 Fax Tt OF 5uµ ATS MEMORANDUM TO: The Honorable Mayor and City Commission VIA: Christopher J. Russo, City Manager FROM: Tiffany D. Neely, Finance Director DATE: 9/17/2020 RE: FY 2020-2021 Blanket Purchase Order for STAPLES RECOMMENDATION: To approve a resolution authorizing a blanket purchase order with Staples for office and other supplies for the fiscal year 2020-2021 in an amount not to exceed $55,000.00. REASONS: The City shall utilize State of Florida Contract No. 44111513-17-01 which expires 04/17/22 to purchase office and other supplies from Staples, in accordance with Section 62-13(c) of the City Code. FUNDING SOURCE: Various budget accounts. Description Resolution State of Florida Contract Item Number: 10.17. FLORIDA DEPARTMENT OF MANAGEMENT SERVICES state purchasing We serve those who serve Florida State Term Contract No. 44111513-17-01 For Office Supplies This Contract is between the State of Florida, Department of Management Services (Department), an agency of the State of Florida and Staples Contract & Commercial, Inc. (Contractor), collectively referred to herein as the "Parties." The Contractor submitted a response to the Department's solicitation, Request for Proposals No. 07-44111513-K for Office Supplies. After concluding all evaluations, the Department has determined that the Contractor's response provides the best Ivalue to the State of Florida. Accordingly, the Parties agree as follows: Initial Contract Term The Initial Contract Term shall be for five (5) years. The Initial Contract Term shall begin on April 18, 2017. The Contract shall expire on April 17, 2022 unless terminated earlier in accordance the General Contract Conditions. II. Renewal Term Upon mutual written agreement, the Parties may renew this Contract, in whole or in part, for a Renewal Term not to exceed the Initial Contract Term, pursuant to the incorporated General Contract Conditions. III. Contract As used in this document, "Contract" (whether or not capitalized) shall, unless the context requires otherwise, include this document and all incorporated Exhibits, which set forth the entire understanding of the Parties and supersedes all prior agreements. All modifications to this Contract must be in writing and signed by all Parties. All Exhibits attached and listed below are incorporated in their entirety into, and form part of this Contract. The Contract Exhibits shall have priority in the order listed: Page 1 of 15 Contract No. 44111513-17-01 Office Supplies a) Exhibit A: General Contract Conditions b) Exhibit B: RFP 07-44111513-K and any addenda in reverse order of issuance c) Exhibit C: Contractor's price sheet(s) to the RFP d) Exhibit D: Contractor's product catalog to the RFP e) Exhibit E: Contractor's proposal to the RFP IV. Contract Management Department's Contract Manager: Abraham Alvarado Division of State Purchasing Florida Department of Management Services 4050 Esplanade Way, Suite 360 Tallahassee, Florida 32399-0950 Telephone: (850) 922-1214 Email: Abraham.Alvarado@dms.myflorida.com Contractor's Contract Manager: Bill Simons, Strategic Account Leader Staples Contract & Commercial, Inc. 4661 Oak Fair Blvd Tampa, Florida 33610 Telephone: 1-352-406-2308 Email: Bill. Sim ons(a-)Staples.com V. Statement of Work The Contractor shall provide Office Supplies on a statewide basis for the following Product Categories: Products Categories Breakroom & Cleaning Supplies Folders, Binders & Accessories Office Consumables (Art, Educational & Envelopes) Office Equipment IT Peripherals Paper - Other (fewer than 10 cartons per order) Paper — White, Recycled & Virgin (fewer than 10 cartons per order) Toner (Original Equipment Manufacturer) Toner (Remanufactured) Page 2 of 15 Contract No. 44111513-17-01 Office Supplies VI. Product Categories Examples of Product Categories contained in the Contract are included in the table below. The table below is not meant to provide a comprehensive list of Products included in scope; it describes the most common types of Products (Product Sub -Categories) contained within each Product Category. Please note that calendar related items will be replaced yearly with the next calendar year's version within the same Product category and related discount. The Department and the Contractor during the contract period may mutually agree to align any missing or new Product sub -categories or services into the Product Categories listed below. The Department may use the S.P. Richards Product Categories and other Product wholesalers as a'point of reference during this process. Product Category Product Sub -Categories Breakroom & Hand Sanitizer, Paper Towels, Lysol Spray, Wipes, Dusters and Facial Cleaning Supplies Tissue, Wastebaskets, Safety Supplies, All Wipes, Hand Soaps, Knives, Cutters, Blades and Scrapers, Computer Dust -off, Lysol, Clorox, Windex, Air Freshener, Dust Pans, Cleaning Supplies, Cups, Spoons, Forks, Plates, Bowls and Shredder bags Folders, Binders & . Manila File Folders, Hanging File Folders, Fastener Folder, Accessories Classification Folders, View Binders, Ring Binders, Report Covers, Files, File Folders, Pocket Files, Portfolios, Jackets, Inserts, Folder Frames, Dividers, Wallet Files, File Guides, File Indexes, Tabs, Tab Reinforcements, and Accessories Office • Adhesives, Glues, Gluesticks, Adhesive Removers Consumables • Appointment Books, Phone Message Books, Statement Books, Fax (includes Art, Message Books, 'While You Were Out' Books, Forms, Dictionaries, Educational & Thesaurus, Diaries, Tickets, Reference Sets Envelopes) • Archive Boxes, Cardboard Boxes, Storage Containers • Award Frames, Displays, Plaques, Certificates • Badges, Badge Holders, Lanyards • Batteries, Chargers, • Binder Clips, Paper Clips, Panel Clips, Pushpins, Thumbtacks, Safety Pins, Rubber bands, Scissors, Shears, Cutters, Trimmers, Hole Punches (non -electric) • Binders, Combs, Rings, Spines • Bulletin Boards, Cork Boards, Easels, Easel Pads, Poster Boards • Calendars, Desk pads, Refills, Planners • Calculator Ink, Calculator Spools, Adding Machine Tape, Cash Register Tape • Camera Film • Correction Fluid, Correction Tape, Correction Pens • Erasers, Dry -Erase Erasers, Chalk, Crayons • Ink Pads, Refills, Stamps • Labels, Label Holders • Mailing Tubes, Mailing Tubs, CD Mailers, Packaging, Fingertips, Letter Openers, Moistener Markers, Highlighters Page 3 of 15 Contract No. 44111513-17-01 Office Supplies VII. Purchases Outside of Florida With the consent of the Contractor, other governmental entities, including those located outside the State of Florida, may make purchases from this Contract under the terms and conditions stated in the Office Supplies solicitation No. 07-44111513-K. Page 4 of 15 Contract No. 44111513-17-01 Office Supplies • Envelopes • Notebooks, Notepads, Pads of Paper, Post it Notes • Office Organizers, Inboxes, Copyholders, Pen and Pencil Holders, Drawers, Desktop Shelves, Extension Cords • Pencils, Pencil Erasers, Lead Refills, Pencil Sharpeners, Pens, Pen Refills • Protractors, Rulers, Yardsticks, Compasses, Engineer Triangles • Ledgers, Tags, Sheet Protectors, Letters, Numbers, Fasteners, Fastener Bases, Clipboards, Flag Tape • Signs, Sign Holder, Flyer Holders, Racks, Literature Displays, Name Plates • Staplers, Staples, Staple Removers • Tape, Tape Dispensers, Embossing Tape, Velcro Products • Transparency Film, Transparency Paper, Laminating Supplies, Laminating Pouches • Art and Science Supplies Office Equipment . Calculators, Easels, Pencil Sharpeners, Dividers, Carts, Hand Trucks, Hole Punches, Label Makers, Laminators, Shredders, Typewriters, Printers, Book Cases, Book Ends, Book Shelves, Chair mats, Clocks, Hooks, Lamps and Furniture IT Peripherals • CDs, DVDs, Cassette Tapes, Tape Cartridges, CD and DVD Cases, CD and DVD Storage, VHS Tapes, Computer Disks and Diskettes, Computer Bags and Cases, Mouse, Keyboards, Keyboard Pads, Mouse pads, Camera Bags, Camera Cases • Headsets, Headset Accessories, Headphones • Surge Protectors, UPS Power Supply • USB Drives, Flash Memory, Zip Disks • IT Hardware / Software Paper — Other . Art Paper, Construction Paper, Crepe Paper, Colored Paper, Photo Paper, Computer Paper and Specialty Paper Paper — White, . Paper — 20# White, Recycled and Virgin Copy Paper, minimum 92 bright Recycled & Virgin Toner — Original • Original Equipment Manufacturer (OEM) - Toners, Cartridges, Fusers, Equipment Kits, Drums, Ribbons and Related Accessories Manufacturer • Brands include but are not limited to: Hewlett Packard, Dell, Lexmark, Cannon, Brother, etc. Toner — • Remanufactured - Toners, Cartridges, Fusers, Kits, Drums, Ribbons, Remanufactured and Related Accessories VII. Purchases Outside of Florida With the consent of the Contractor, other governmental entities, including those located outside the State of Florida, may make purchases from this Contract under the terms and conditions stated in the Office Supplies solicitation No. 07-44111513-K. Page 4 of 15 Contract No. 44111513-17-01 Office Supplies VIII. Recycled and Climate Friendly Products The State supports and encourages initiatives to protect and preserve our environment. The Contractor is encouraged to offer Office Supplies with recycled content, climate friendly products and fulfill the intent of Section 287.045, Florida Statutes. IX. Product List The Contractor is required to provide and maintain a Product list with a minimum of 10,000 Products throughout the life of the Contract. The Product list will serve as the Contractor's catalog and prices for the first year of the contract. At a minimum, the Product list shall include the following: Product Category, Product Description, Brand Name or Generic Product, UPC, GTIN (if available), Manufacturer Name, Manufacturer Number, SKU/Item Number, Unit of Measure, S.P. Richards Price or MSRP, MSRP % discount and final sell price to the Customer. Each Product Category must be listed on a separate tab. Ex: Office Supplies on Tab 1, Toner on Tab 2, etc. Where there is no S.P. Richards' or other wholesaler's price available, the MSRP shall be listed. If the Product is a Generic Product, then the Contractor is considered the Product manufacturer and their established, reasonable price shall be listed. X. Delivery The Contractor shall deliver within two business days for orders placed by 4:00 PM ET. The Contractor shall provide F.O.B., the place of destination, freight prepaid, terms for the Desktop Location, or an alternate location as specified by the Customer at no additional cost. The Contractor shall not impose delivery charges for orders above $25.00 for the life of the contract, including all contract renewals and extensions excluding furniture deliveries and custom/special orders. The Contractor shall not impose a delivery charge greater than $40.00 for furniture deliveries which includes inside delivery, set-up, and removal of packing debris. For deliveries, the Contractor shall provide a packing label on the outside of each package shipped that contains the following information, at a minimum: Customer Name, Physical Address, Delivery Address, and Telephone Number. The Contractor shall provide a packaging slip in the inside of each package shipped that contains the following information, at a minimum: line item description, quantity ordered, quantity shipped, backordered products with expected delivery date, unit price, number of parcels, and purchase order or delivery order number. XI. Returns The Contractor shall provide a full credit and no restocking fee to Customers on all returns for products that are in their original packaging and in sellable condition. The original packaging may not have the Customer's writing located on any Products. The Contractor shall provide a full credit and no restocking fee to Customers on all returns for products that are returned within 30 calendar days of delivery and/or products that are returned due to damage, incorrectly shipped, or due to a vendor's order entry error. The Contractor shall have a restocking fee that does not exceed ten percent of the value of the product(s) to be restocked. XII. Customer Service and Technical Resources The Contractor shall provide a single point of contact for each Customer. The Contractor shall provide customer service representatives and technical resources by phone (toll-free), Page 5 of 15 Contract No. 44111513-17-01 Office Supplies fax, and email to handle all orders and mitigate order -related technical issues from 8:00 AM to 5:00 PM ET, Monday through Friday, excluding State of Florida holidays. XIII. Training The Contractor shall provide at the Customer's request, the necessary training at no additional cost, on all aspects of ordering, Product delivery, Product returns and customer service processes. XIV. Product Substitutions The Contractor shall not replace any ordered Product with an alternate Product without the prior consent of the Customer (e.g., no forced substitutions). The Contractor shall honor orders where the Customer agrees to use a higher -priced Product to fill the order and the Customer will be billed at the lower price of the Product that was out of stock. XV. Marketing Materials The Contractor shall obtain the Department's approval prior to distributing any marketing materials to Customers. XVI. Reports The contractor shall submit the following reports: a. Transaction Fee Reports Contractors will be required to pay the required Transaction Fees, as prescribed by rule 60A-1.031, Florida Administrative Code, or as may otherwise be established by law. The Transaction Fees imposed shall be based upon the date of issuance of the payment. The Contractor is required to submit monthly Transaction Fee Reports in electronic format. Reports are due fifteen (15) business days after the end of the reporting period. For information on how to submit Transaction Fee Reports online, please reference the detailed fee reporting instructions and training presentations available on the MFMP website: MFMP Transaction Fee and Reporting. Assistance is also available with the Transaction Fee Reporting System from the MFMP Vendor Help Desk by email at feeprocessinq@myfloridamarketplace.com, or by telephone at 866-FLA-EPRO (866- 352-3776) between the hours of 8:00 AM to 6:00 PM Eastern Time. b. Contract Quarterly Sales Reports The Contractor agrees to submit a Contract Quarterly Sales Report, Attachment J to the DMS Contract Manager in the format to be provided by the Contract Manager fifteen business days after the close of the State Fiscal quarter (September 30, December 31, March 31, and June 30). Reports must be submitted in MS Excel format. The report will include all sales (orders) from Customers received (associated with this contract) during the period. Initiation and submission of the Sales Report is the responsibility of the Contractor without prompting Page 6 of 15 Contract No. 44111513-17-01 Office Supplies or notification from the DMS Contract Manager. If no orders are received during the period, the contractor must submit a report stating that there was no activity. Data elements to be included in the Contract Quarterly Sales Report are as follows: Data Element Description Order Date The date the order was received by the Contractor. Order Number The identifier of the transaction that establishes the obligation for the Product or service. Typical Transactions may include purchase orders (PO) or Purchasing Card (PCard) transactions. Product Category Product Category specific to this RFP (Office Consumables, Toner, etc.) Product Description Nomenclature of the Product or service ordered. Customer Type Classification of the Customer (Drop-down Menu provided): • Agency, • FL OEU Cities & Counties • FL OEU Schools K-12 • FL OEU College & Universities • FL OEU Not for Profit Standard Product An identifier used by the Office Supplies industry to describe the Code Product or service. UPC required, GTIN if available. United Nations Taxonomy of Products and services for use in eCommerce. It is a Standard Products four -level hierarchy coded as an eight -digit number, with an optional and Services Code fifth level adding two more digits. (UNSPSC) Manufacturer The original producer of the Product. Manufacturer ID The alpha numeric code established by the manufacturer for the Product. Quantity The amount of the Product or service ordered. Unit of Measure Standard unit or system of units by means of which a quantity is accounted for and expressed (e.g., each, set, box, case, etc.) Unit Price The cost of one unit of measure of an item. Total Price The price paid for the items ordered; calculated as the unit price multiplied by the quantity ordered. This field is pre -calculated, no entry is required. Reference Price The MSRP. Page 7 of 15 Contract No. 44111513-17-01 Office Supplies Data Element Description Savings Percentage Pre -calculated field representing the percentage difference between total price incurred by the order verses the price that would have been paid without the benefit of this contract. Formula= ((Reference Price — Unit Price) / Reference Price) c. Preferred Pricing Affidavit Requirement The Contractor agrees to submit to the Department, prior to contract execution and at least annually, a completed Preferred Pricing Affidavit. d. Savings/Reductions Form The Contractor shall submit one (1) accurately completed PUR7064-Savings/Price Reductions form containing the required savings information for each Product Category offered and a method(s) for the Department to verify the savings information provided within 10 business days following Notice of Award of the contract, upon each request to renew and/or extend the contract, or upon any action that establishes or adjusts the prices under the contract. e. Diversity Reporting The State of Florida is committed to supporting its diverse business industry and population through ensuring participation by minority, women, and veteran owned business enterprises in the economic life of the State. The State of Florida Mentor Protege Program connects minority-, women-, and veteran business enterprises with private corporations for business development mentoring. The Department strongly encourages firms doing business with the State of Florida to consider this initiative. For more information on the Mentor Protege Program, please contact the Office of Supplier Diversity at (850) 487-0915 or email: osdhelp@dms.myflorida.com. Upon request, the Contractor shall report to each Customer, the Department, spend with certified and other minority business enterprises. These reports shall include the period covered, the name, minority code and Federal Employer Identification Number of each minority Respondent utilized during the period, Commodities and services provided by the minority business enterprise, and the amount paid to each minority Respondent on behalf of each purchasing agency ordering under the terms of this Contract. Ad hoc Report The Department may require additional ad hoc reports such as Contract sales information or special report requests. The Contractor shall submit these specific ad hoc requests within the specified amount of time as requested by the Department. g. Backorder Fill Report Upon request, the Contractor shall provide the Department a report within five business days providing the following: the Product name and Product ID, reason for shortage, and plan of action when delivery may be expected or suggested replacement. The Page 8 of 15 Contract No. 44111513-17-01 Office Supplies Contractor will ship backorders within five business days of the original order, unless special circumstances apply. h. Reporting Schedule The contractor shall submit reports in accordance with the following schedule: Report Period Covered Due Date(s) MFMP Transaction Calendar month 15 business days after close of the Report period Contract Quarterly State Fiscal Quarter 15 business days after close of the Sales Report period PUR7064- Required upon contract award, Savings/Reductions prior to contract execution and 10 business days after each action Form required for quarterly price that adjusts prices adjustments Diversity Report 15 business days after close of the [submitted to the State Fiscal Year period Customer Preferred Pricing Annual Contract anniversary date Affidavit Ad hoc Report As requested Specific and reasonable timeframe Backorder Fill Report As requested 5 business days upon request XVII. Deliverables The deliverables and criteria for evaluating successful completion of each deliverable are listed below: a. Delivery Timing The Contractor shall maintain a delivery timing rate of 95% or greater. On-time delivery is defined as delivery within two business days for orders placed by 4:00 PM ET. The delivery timing rate is calculated by the total number of orders delivered within 2 days divided by the total number of orders. Example: 99 orders delivered within 2 days/100 total orders = 99.0% on-time delivery. The Contractor shall submit to the Department the monthly report in Microsoft Excel that details the on-time delivery timing rate. b. Order Filled and Delivered The Contractor shall maintain an order filled and delivered rate of 98% or greater. The order filled and delivered rate is calculated as the sum of Products filled and delivered divided by the total sum of Products ordered. The Contractor shall submit to the Department the monthly report in Microsoft Excel that details the order accuracy and fill rate. Example: 1,000 products filled and delivered divided by 1,015 products ordered = 98%. c. Order Accuracy The Contractor shall maintain an order accuracy rate of 98% or greater. The order accuracy rate is calculated as 1 minus the sum of mishipped Products divided by the total sum of Products ordered. The Contractor shall submit to the Department the Page 9 of 15 Contract No. 44111513-17-01 Office Supplies monthly report in Microsoft Excel that details the order accuracy rate. Example: 1 minus 6 mishipped products divided by 600 products orders = 99%. XVIII. Financial Consequences The Contractor is required to meet the deliverables listed in the Contract. The Contractor is required to meet minimum service levels on standard contract orders only, special/custom orders (furniture and oversized items, custom printing orders and certain technology items). Failure to meet the specified deliverables will result in the financial consequences to the State as shown in the chart below. Deliverable*Additional First Second Third ' Fourth Fifth Each Failure Failure Failure Failure Failure Failure Submission of required reports $0 $500 $500 $1,000 $2,000 $3,000 Delivery Timing $0 $500 $1,000 $1,000 $2,000 $3,000 Less than 95% on time Order Filled and Delivered Less than 98% filled and $0 $500 $1,000 $1,000 $2,000 $3,000 delivered Order Accuracy $0 $500 $1,000 $1,000 $2,000 $3,000 Less than 98% accurate *If the Contractor fails to meet the deliverables five or more times in a 12 month contract period, the State shall have grounds to initiate contract breach and termination proceedings. The financial consequences will be paid via check or money order and made out to the Department of Management Services in US Dollars within 30 calendar days after the required report submission date. These consequences are individually assessed for failures over each 12 month period beginning with the first full month of contract performance and every 12 months thereafter. XIX. Business Review Meetings In order to maintain the partnership between the Department and the Contractor, each quarter the Department may request a business review meeting. The business review meeting may include, but is not limited to, the following: • Successful completion of deliverables • Review of Contractor's performance • Review of minimum required reports • Addressing of any elevated Customer issues Page 10 of 15 Contract No. 44111513-17-01 Office Supplies • Review of continuous improvement ideas that may help lower total costs and/or improve business efficiencies. XX. Punch -out Catalog and Electronic Invoicing The Contractor shall supply a punch -out catalog. The punch -out catalog provides an alternative mechanism for suppliers to offer the State of Florida access to products awarded under the Contract. The punch -out catalog also allows for direct communication between the MyFloridaMarketPlace eProcurement System (MFMP) and a supplier's ERP system, which can reflect real-time product inventory/availability information. Through utilization of the punch -out catalog model, a Florida buyer will "punch out" to a Contractor's website. Using the search tools on the Contractor's Florida punch -out catalog site, the user selects the desired products and services. When complete, the user exits the Contractor's punch -out catalog site and the shopping cart (full of products and services) is "brought back" to MFMP. No orders are sent to a Contractor when the user exits the Contractor's punch -out catalog site. Instead, the chosen products and services are "brought back" to MFMP as Contract line items. The user can then proceed through the normal workflow steps, which may include adding/editing the items to a requisition or a purchase order. An order is not submitted to a Contractor until the buyer actually adds the line items to a requisition and the purchase order is approved and sent to the Contractor. All Contractors who implement Punch -out catalog solutions will be subject to MFMPs Punch - out Audit functionality. MFMP has added functionality that will compare the price retrieved from a Contractor's Punch -out catalog to the corresponding contract price sheet. As items are transferred into MFMP from a monitored contract/Punch-out catalog, the item and item price will be automatically compared to the contract price sheet. The logic for the audit process includes mapping the following fields from the Punch -out catalog to the contract price sheet: Supplier Tax ID, Contract #, Supplier Part #, Supplier Aux # (if available), and Unit of Measure (UOM). When an item is evaluated, the following rules are applied: Punch -out Catalog Item: Requisition Line Item Price: Greater than price sheet Reduced to the base price from the price sheet Less than price sheet Honored Not Found on price sheet Honored Matches price sheet N/A The Contractor shall supply electronic invoices in lieu of paper-based invoices for those transactions processed through the MFMP. Electronic invoices shall be submitted to the Page 11 of 15 Contract No. 44111513-17-01 Office Supplies agency through the Ariba Network (AN) in one of three mechanisms as listed below. Contractors can select the method that best meets their capabilities from the following list: a. cXML (commerce eXtensible Markup Language) This standard establishes the data contents required for invoicing via cXML within the context of an electronic environment. This transaction set can be used for invoicing via the AN for catalog and non -catalog products and services. The cXML format is the Ariba preferred method for elnvoicing. b. EDI (Electronic Data Interchange) This standard establishes the data contents of the Invoice Transaction Set (810) for use within the context of an Electronic Data Interchange (EDI) environment. This transaction set can be used for invoicing via the AN for catalog and non -catalog Products and services. c. PO Flip via AN The online process allows Contractors to submit invoices via the AN for catalog and non - catalog products and services. Contractors have the ability to create an invoice directly from their Inbox in their AN account by simply "flipping" the PO into an invoice. This option does not require any special software or technical capabilities. For the purposes of this section, the Contractor warrants and represents that it is authorized and empowered to and hereby grants the state and the third party provider of MFMP, a state Contractor, the right and license to use, reproduce, transmit, distribute, and publicly display within the system the information outlined above. In addition, the Contractor warrants and represents that it is authorized and empowered to and hereby grants the state and the third party provider the right and license to reproduce and display within the system the Contractor's trademarks, system marks, logos, trade dress, or other branding designation that identifies the products made available by the Contractor under the Contract. The Contractor will work with the MFMP management team to obtain specific requirements for the Punch -out Catalog and Electronic Invoicing. The Contractor is required to provide additional Ordering Instructions on the Ordering Instructions form to identify persons responsible for answering questions about the response and administering the Contract and shall provide information necessary for placing orders under the Contract. XXI. Use of S.P. Richards The Department will use S. P. Richards' retail pricing to provide a mechanism to manage pricing throughout the contract period. The Department reserves the right to use other wholesalers' information and/or MSRP as a benchmark for pricing. Contractors are not required to use S.P. Richards as their wholesaler. Page 12 of 15 Contract No. 44111513-17-01 Office Supplies XXIL Price and Product Adjustments The discount proposed for each Product Category shall remain the same throughout the term of the Contract and for all renewals and extensions. The Contractor may submit updated pricing 45 days prior to the contract effective date. The Contractor must maintain prices for Brand Name and Generic Products for the first year of the Contract as proposed in the Products List. All pricing must be verifiable and auditable. After the first anniversary of the Contract award, the Contractor may request the Department to approve updated Product final sell prices that reflects any updates to the S.P. Richards' list, or Product manufactures' prices if S.P. Richards is not available. The originally offered discounts cannot be decreased by the Contractor throughout the life of the Contract. The Contractor may submit updated price lists for approval on the first working day of each quarter for each calendar year. There will be no retroactive price increases allowed. If S.P. Richards', the Product manufacturers, or the Contractor's prices decrease, the Contractor shall submit to the Department a revised Product List on a quarterly basis that reflects the lower prices for Department review and approval. Once approved, the Contractor shall update all systems to provide Customers the lower pricing within five (5) business days or on a date mutually agreed to by both Parties, which is sooner. The Contractor may submit additions and deletions to the product catalog on a quarterly basis. XXIII. State of Florida Online Catalog In addition to the Contractor's Punch -out catalog in MFMP, the Contractor shall provide a specific online ordering portal (referred to as the online catalog) to the State of Florida containing only State of Florida items and prices. The Contractor will make available the online catalog that contains only items that are in the scope of the awarded Contract and will provide the same product catalog as used for the Punch -out catalog. For each item, the following information shall be provided at a minimum: item description, UPC, GTIN, if applicable, manufacturer name, manufacturer part number, unit of measure, list price and Contract price. XXIV. Contract Products The Contractor shall only offer Products awarded from this RFP on the Contractor's punch - out and online catalogs for the State of Florida. Non -Contract Products will not be permitted and cannot be purchased under this contract. XXV. Third Party Audits The Contractor shall maintain a Price Accuracy Rate of 98% or greater. The Contractor shall obtain a third party firm at no additional cost to the State to confirm the price accuracy of the Contractor's Punch -out Catalog. The third party firm (to be approved by the Department) shall perform a quarterly audit with statistically relevant sample of contract items to confirm the accuracy of S.P. Richards Price or MSRP, MSRP % discount, and final sell price. Specifically, the third party firm will verify that the prices displayed on the Contractor's catalog are less than or equal to the approved contract prices. The Department has defined Page 13 of 15 Contract No. 44111513-17-01 Office Supplies statistically relevant as a sample in which the confidence level is 95% with a 5% confidence interval. For example, statistically relevant sample for a catalog of 15,000 items would result in a sample size of 375. An example is provided at the following website: http://www.calculator.net/sample-size-calculator.html The third party firm shall submit a quarterly report to the Department confirming the Contractor's Price Accuracy Rate within 15 days after the close of each quarter. The Price Accuracy Rate shall be calculated using the following formula: Price Accuracy Rate = the number of audited items each quarter where the net price is less than or equal to the contract price divided by the number of audited items. Example: Population size (# of items in the catalog) = 15,000 Sample size (from Calculator): 375 Number of catalog prices less than or equal to the approved contract prices = 370 Accuracy Rate = (370/375) = 98.6% At a minimum, the quarterly report will identify items not in compliance with the contract terms, provide the date of the audit, and screenshots of the items on the Contractor's website that were not in compliance with the contract terms. If the Department deems it is in the best interest of the state, the Department reserves the right to increase the frequency of the Third Party Audit. XXVI. Purchasing Card Program The State of Florida has implemented a purchasing card program, using the Visa platform. Respondents may receive payments via the state's Purchasing Card in the same manner as any other Visa purchases. Purchasing Card/Visa acceptance for purchase is a mandatory requirement for this Contract but is not the exclusive method of payment. If the state changes its Purchasing Card platform during the term of Contract resulting from the RFP, the Contractor shall make any necessary changes to accommodate the state's new Purchasing Card platform within 30 days of notification of such change. XXVII. Promotions The Contractor may conduct promotions involving price reductions. Promotions offered shall only be for contract items. XXVIII. Recall(s) In the event there is a recall of any of the Commodities, any of its components or any parts of Commodity, the Contractor shall provide reasonable assistance to the Department in developing a recall strategy and shall cooperate with the Department and the Customer in monitoring the recall operation and in preparing such reports as may be required. Each Contractor shall, at the request of the Department or any Customer give the Department and Page 14 of 15 Contract No. 44111513-17-01 Office Supplies each Customer all reasonable assistance in locating and recovering any Products or recalled Products that are not in accordance with the requirements of the Contract. Each Contractor shall immediately notify and provide copies to the Department of any communications, whether relating to recalls or otherwise, with any Customer. The Contractor, at its own cost, shall ensure defective Commodities are rectified, replaced or destroyed in compliance with all applicable laws, rules or regulations and the Department's reasonable instructions. XXIX. Contract Transition Upon Contract expiration or termination, the incumbent shall ensure a seamless transfer of contract responsibilities with any subsequent Contractor necessary to transition the Products and services of this Contract. The incumbent Contractor and subsequent Contractor assume any and all expenses related to the contract transition. XXX. Amendments No oral modifications to this Contract are permitted. All modifications to this Contract must be in writing and signed by both Parties. Notwithstanding the order listed in Section 3, amendments executed after the Contract is executed may expressly change the provisions of the Contract. If they do so expressly, then the most recent amendment will take precedence over anything else that is part of the Contract. IN WITNESS THEREOF, the Parties hereto have caused this Contract, which includes the attached and incorporated Exhibits, to be executed by their undersigned officials as duly authorized. This Contract is not valid and binding until signed and dated by the Parties. State of Florida, Department of Ma a ent Services n Rock, Ch o Staff Y 3-(b 17 Date Contract No. 44111513-17-01 Office Supplies Staples Contract & Commercial, Inc. mefL five By, Neil Ringel, President, NAD Date Mar 9, 2017 Page 15 of 15