Request for Proposal RFP

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1 Request for Proposal RFP LICENSE TO PLACE VENDING MACHINES ON MCLENNAN COUNTY PROPERTY RFP Release: April 6, 2018 Date and Time of RFP Closing: April 18, :00 p.m. Issued By: Ken Bass McLennan County Director of Purchasing Waco, TX Phone: Fax:

2 RFP LICENSE TO PLACE VENDING MACHINES ON MCLENNAN COUNTY PROPERTY NOTICE TO RESPONDENTS Sealed proposals will be received by the McLennan County Purchasing Department at 214 North 5 th Street, Waco, TX 76701, until 2:00 p.m., Wednesday, April 18, 2018, at which time proposals will be opened and acknowledged. Proposals must be submitted in a sealed envelope and must be plainly marked with Your Company Name, Company Address and RFP LICENSE TO PLACE VENDING MACHINES ON MCLENNAN COUNTY PROPERTY, to insure proper recognition upon its arrival. McLennan County is not responsible for proposals delivered to another address or late proposals. Please enclose one (1) original response to this proposal, two (2) copies of your response and one (1) electronic copy (CD or flash drive). No faxed or ed proposals will be accepted. Specifications may be obtained from the McLennan County Purchasing Department, phone 254/ or on our web site The County reserves the right to accept or reject, in part or in whole, any proposals submitted; and to waive any technicalities in the best interest of the County. The County may cancel this contract at any time for any reason provided a thirty (30) day notice is given. EVALUATION AND AWARD Upon receipt of proposals, the County will evaluate the documentation received. Award will not be limited to the best commission percentage, although that will weigh heavily in the decision. It is imperative that food product, selection and service be satisfactory to the County. It is intended that the license be awarded based on all relevant considerations including, but not necessarily limited to, the variety of product available, relevant retail costs of product, commission rate, and the Concessionaire s ability to perform. Evaluation Criteria shall include, but is not limited to the following: Criteria Points Pricing 40 The Proposers Experience and Reputation (references) 25 Quality of the Proposers Services, Equipment & Products/Extent to which Services, Equipment & Products meet the County s needs 25 Proposers Compliance with the RFP Specifications/Completeness of Response to RFP 10 Total 100

3 McLennan County retains the option to transfer the award of this proposal to the next best evaluated vendor in the event awarded vendor defaults. LICENSE/LOCATIONS The County will contract with a Concessionaire to allow the placement of various vending machines at designated locations on County property. Concessionaire shall pay the County a percentage of gross receipts from all vending and related machines placed within any County building or location by the Concessionaire during the term of the agreement (or the guaranteed minimum commission, whichever is higher). The right to be granted by the County is not an interest in real property, but, rather a license or permit allowing for placement of vending equipment on County property. The selected Concessionaire will be given the exclusive right to locate vending machines on County property subject only to the remaining term of any written vending contract for a specific location, if any, termination of the license as provided for in the license awarded, the addition of vending machines for other types of items which the Concessionaire does not provide, or the addition of a vending machine at a location for which the Concessionaire declines to locate a vending machine after being requested by the County to do so. Gross receipts from vending machines shall be construed to include all moneys received from vending machines, except sales tax revenues. Payments shall be computed monthly and be delivered by the Concessionaire, along with a gross receipts report, to the County Treasurer. These reports shall be prepared and delivered on or before the tenth day of each succeeding month. The selected Concessionaire shall place vending machines in only those locations designated by the County. An initial list of these locations is supplied in this package as APPENDIX A, however, the County reserves the right to add to or subtract from the total number of approved machine locations at any given time. The selected Concessionaire will not be allowed to change the physical location of any vending machine in any manner from the specific locations designated and approved without the prior written consent of the County. The County is open to placement at additional locations approved by the County. TERM, RENEWAL AND TERMINATION The initial term of the license shall be 12 months, starting on the date indicated in the executed license agreement. Up to four (4) one (1) year renewals will be available if mutually approved by the County and the Concessionaire on agreed terms. The license will be subject to termination by the County after notice and opportunity to cure for material violation of the license agreement or inadequate performance as judged by the County. USER TRAFFIC The amount of user traffic will vary by location. It is anticipated that traffic will include County personnel and visitors.

4 FOOD TYPES/RESTOCKING/COMPLAINTS/COMPLIANCE Vending machines shall contain pre-packaged food items and bottled/canned beverages. Respondents must provide a complete listing of the items it proposes to stock in the machines (including brands and sizes). If the items to be offered will differ by location, the items to be offered must be identified by location. Any and all items containing alcohol or tobacco are prohibited. Items stocked are subject to County approval. The selected Concessionaire must be open to suggestions from the County as to items to be stocked. Respondents must identify their restocking schedules for the machines, and if the schedules differ by location, set forth their proposed restocking schedule by location. Respondents must also explain the procedures they will follow to handle restocking requests between scheduled visits and complaints regarding product or machine operations/malfunctions. Respondents must identify whether the County will have a designated representative of the Concessionaire assigned to the County, and contact information for the designated representative. The County is open to proposals to provide additional product types. The County normally requires 60 percent (or a different percentage may be negotiated depending on the machine) of products stocked in machines to be Healthy alternatives. Products that require additional heating may be considered by the County for certain locations if a safe means is provided to perform the additional preparation. The selected Concessionaire will be required to abide by all county, city, state and federal laws, ordinances, rules and regulations, expressly including, but not limited to, those relating to health and sanitation of foods, and operation and maintenance of vending machines. Concessionaire shall obtain and preserve all applicable state, federal and local licenses and/or permits required for the operation of vending machines and disbursement of foods. FOOD COSTS Items sold in the vending machines shall be priced reasonably and competitively. Pricing for the items proposed to be provided shall be included in the response. Pricing must remain fixed during the initial year of the license. Price increases in any renewal term, if any, must be reported to the County in advance of going into effect. Price increases must be based on documented increases in cost to the Concessionaire. The County will reserve the right to terminate the license in whole or in part should the Concessionaire s pricing become unreasonable. EQUIPMENT All equipment shall operate on regular wall voltage VAC. All plugs shall be three pronged, properly grounded. Energy efficient units should be used by the Concessionaire wherever possible. If through review the County determines that a machine is using an excessive amount of electricity, the Concessionaire will be required to either replace it or remove it. Machines in high traffic areas will allow the use of credit/debit cards for purchases.

5 It is not anticipated County personnel will need to move any of the machines; however, in the event of an emergency or need, the County reserves the right to move any unit in response to resolution of a problem. Machines must meet ADA requirements. All machines shall be of the proper and appropriate type for the kinds of foods being distributed, i.e. refrigerated/non-refrigerated/heated, etc. where applicable. Industry improvements to vending operations which occur during the term of this contract shall be incorporated by the Concessionaire in subsequent installations. Each machine shall have the capability to handle the following items/functions: a) dispense a variety of items, not limited to a single type item or brand of items; b) be properly equipped with a non-resettable counter for recording all sales by each machine; c) receive and give coin change for one dollar bills, minimum. This may be accomplished by having the change mechanism installed in the vending machine and/or providing a separate money-changing unit on site. In any case, the Concessionaire will be entirely responsible for funding change machines and for their proper operations and functions. Concessionaire must promptly and courteously refund any moneys lost by the public in vending machines operated by the Concessionaire, subject to a process set out in the Concessionaire s proposal; d) Each machine location must provide information to the customer where malfunctions, product quality comments and refund requests may be made. This may be accomplished using a local or toll free number or by collect call privileges. Upon completion of installations, Concessionaire shall provide a list of all of its equipment and all locations of said equipment, to the County, and certify that each unit is in proper working order in accordance with original equipment manufacturer s specifications including any/all electrical and/or plumbing connections, drainage, stability, etc. as is appropriate to the unit. PERSONNEL The Concessionaire shall not assign to work on the premises of the County any person having a felony conviction. INSTALLATION Machines will be installed at locations listed herein, however, title ownership of each machine shall be retained by the Concessionaire, who shall be responsible for the equipment at all times and in all respects. The County shall neither own nor rent or lease the machines in conjunction with this contract. All Concessionaire equipment must be clearly tagged with the Concessionaire s name and contact information. The successful Concessionaire respondent shall bear all costs to deliver, install, and stock, maintain, repair and remove all vending machines placed under the contract, including replacement machines. The County will not obligate the Concessionaire to pay utility costs incurred to operate the vending machines, but Concessionaire will bear all other costs in connection with machine operation and related activities. Every effort shall be made by the Concessionaire to keep energy consumption to a minimum and comply with such conservation practices and County policies as may be appropriate. The County shall not be liable for any loss, which may result from the interruption or failure of the power supply to any vending machine.

6 MAINTENANCE The selected Concessionaire shall maintain all vending machines in good working order when installed and thereafter through completion of the license term. A preventive maintenance program by the Concessionaire should also be in place. The County shall have no liability to Concessionaire for maintenance of the equipment or any damage to vending machines by a third party, and Concessionaire shall not make any claim against, or seek recovery from, the County for any loss or damage to the vending machines. The selected Concessionaire MUST be available to service machines promptly after notice of a problem. Procedures and response times with regard to service must be included in the proposal. REMOVAL The County reserves the right to require the Concessionaire to replace or remove any machine which may be unacceptable or unsafe and reserves the right to remove any such machine at its discretion in an effort to protect persons and/or County property. Vending machines must be removed within five business days of notice to Concessionaire for completion, termination or cancellation of contract, nonpayment of commissions to the County, for machine malfunctions not corrected within two days of notification, or other reason set forth in the license. Whenever the Concessionaire is required to remove machines, the County shall have the option to remove any vending machine and hold it in storage until claimed by Concessionaire. In case of removal by the County, no officers and/or employees shall be liable for damages to said machines or their contents. GROSS RECEIPTS REPORT The Concessionaire will be required to maintain a separate record for each vending machine. Concessionaire shall make and present gross receipts reports each month to the County Treasurer on or before the tenth day of each month covering all appropriate receipts for the full, immediate, prior month. A sworn statement certifying that the amount of gross receipts for the immediately preceding calendar month is true and correct shall accompany each report. Concessionaire shall be responsible for either obtaining an appropriate form from the County for submission of the report or obtaining approval from the County Treasurer for a form generated in-house by the Concessionaire for submission of the report. The County shall have the right to make periodic audits and inspections of Concessionaire s records of gross receipts at any reasonable time without notice. In the event an audit suggests a discrepancy between reported receipts and actual receipts, the County will require a written statement of explanation and shall receive such reimbursement of moneys as may be due from accounting or other errors.

7 GUARANTEED MINIMUM In addition to a commission/license fee percentage that the respondent proposes to pay the County based on monthly Gross Receipts, the respondent must also identify a guaranteed monthly payment to the County from all machines. The amount payable to the County in any month shall be the greater of the percentage or Gross Receipts or the monthly guaranteed minimum. CONFLICT OF INTEREST Chapter 176 of the Local Government Code creates a new filing requirement for persons who contract or are seeking to do business with local government entities to make financial and business disclosures. A vendor or other person who contracts or seeks to contract for the sale or purchase of property, goods, or services with a local government entity, or is an agent of a vendor or person who is seeking to contract with the county must file a Conflict Disclosure Questionnaire within 7 business days of: Beginning contract discussions or negotiations Or submitting an application, response to a request for proposal or bid, Or other communication related to a potential contract. Failure to file a questionnaire is a class C misdemeanor. Note: As part of this bid or proposal packet, please mark Not Applicable on any questions that do not apply to your affiliation or business relationship with a McLennan County officer and return with the response package. Please submit the Conflict of Interest Questionnaire with your proposal. If you do not have access to the links provided above please contact Becky Stephens at (254) or becky.stephens@co.mclennan.tx.us and we will send by mail or the list of County Officers that must be considered in the Conflict Disclosure and the Conflict Disclosure Questionnaire. SUSPENSION AND DEBARMENT The Vendor certifies, to the best of its knowledge and belief, that the Vendor and/or any of its Principals: (a) Are not presently debarred, suspended, proposed for debarment, or declared ineligible for the award of contracts by any Federal agency;

8 (b) Are not listed on the Excluded Parties List System (EPLS) maintained by the General Service Administration (GSA). Note: McLennan County Purchasing Department will check the Excluded Parties List before award of any contract; (c) Have not, within a 3-year period preceding this offer, been convicted of or had a civil judgment rendered against them for: commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (federal, state or local) contract or subcontract; violation of Federal or state antitrust statutes relating to the submission of offers; or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, tax evasion or receiving stolen property; (d) Are not presently indicted for, or otherwise criminally or civilly charged by a governmental entity with, commission of any of the offenses enumerated above; (e) The vendor has not, within a 3-year period preceding this offer, had one or more contracts terminated for default by any Federal agency. Interested Parties Disclosure House Bill 1295 creates a new filing requirement for persons who contract with local government entities. This may be found in Chapter 2252 of the Government Code. The County may not enter into a contract with a business entity unless the business entity submits a disclosure of interested parties to the County at the time the business entity submits the signed contract to the County. This applies to a contract of the County that requires an action or vote by the governing body of the County before the contract may be signed. The McLennan County Commissioners Court must approve every contract submitted to the County. The disclosure of interested parties must be submitted on a form prescribed by the Texas Ethics Commission A contract will not be considered complete until this form is completed and submitted to the County. If you do not have access to the link provided above please contact Becky Stephens at or becky.stephens@co.mclennan.tx.us. CERTIFICATION REQUIRED BY TEXAS GOVERNMENT CODE SECTION By signing below, Company hereby certifies the following: 1. Company does not do business with Iran, Sudan, or a foreign terrorist organization; and 2. Company will not do business with Iran, Sudan, or a foreign terrorist organization during the term of this contract.

9 Print Company Name: Signed By: Print Name & Title: Date Signed: The following definitions apply to this state statute: (1) Foreign terrorist organization means an organization designated as a foreign terrorist organization by the United States secretary of state as authorized by 8 U.S.C. Section 1189.; and (2) Company means a for-profit sole proprietorship, organization, association, corporation, partnership, joint venture, limited partnership, limited liability partnership, or limited liability company, including a wholly owned subsidiary, majority-owned subsidiary, parent company, or affiliate of those entities or business associations that exists to make a profit. State law requires certification from a Company for contracts (which includes contracts formed through purchase orders) involving goods or services regardless of the amount. CERTIFICATION REQUIRED BY TEXAS GOVERNMENT CODE SECTION By signing below, Company hereby certifies the following: 1. Company does not boycott Israel; and 2. Company will not boycott Israel during the term of the contract. Print Company Name: Signed By: Print Name & Title: Date Signed:

10 The following definitions apply to this state statute: (1) Boycott Israel means refusing to deal with, terminating business activities with, or otherwise taking any action that is intended to penalize, inflict economic harm on, or limit commercial relations specifically with Israel, or with a person or entity doing business in Israel or in an Israeli-controlled territory, but does not include an action made for ordinary business purposes; and (2) Company means a for-profit sole proprietorship, organization, association, corporation, partnership, joint venture, limited partnership, limited liability partnership, or limited liability company, including a wholly owned subsidiary, majority-owned subsidiary, parent company, or affiliate of those entities or business associations that exists to make a profit. State law requires certification from a Company for contracts (which includes contracts formed through purchase orders) involving goods or services regardless of the amount INSURANCE AND INDEMNIFICATION 1. Indemnification Licensee shall indemnify, defend and hold harmless the County from and against any and all third party claims, liabilities, damages, injuries, expenses or losses including, but not limited to, attorneys' fees or costs arising out of Licensee's negligence or misconduct or in connection with Licensee s breach of performance hereunder, or arising out of any breach hereof, or violation of law, or for personal injury (including death) or property damage to the extent proximately caused by Licensee s negligent acts or omissions of or its officers, employees, or agents, except as caused by the sole negligence of the County. It is the intent of this provision to absolve and protect the County from any and all claims, liabilities, damages, injuries, expenses or losses including but not limited to attorneys' fees where the same results from the negligence, jointly with the Licensee, of County or County's employees, except to the extent where the County is solely negligent. Accordingly, County shall notify Licensee promptly, in writing, of any claim or action brought against County in connection with this Agreement. On such notification, Licensee shall promptly assume responsibility for and defend any and all such claims or actions. Licensee shall notify County promptly, in writing, of any claim or action brought against the Licensee in connection with this Agreement. County shall retain the right to be represented by counsel of its own choosing at Licensee s reasonable expense, as set forth above. 2. Insurance The County requires that all insurers: Be licensed to do business within the State of Texas. Write insurance on a per occurrence basis. Description of Operation must be on Certificate.

11 List contract name and service being performed. State that insurance is on a primary basis and non-contributory with any insurance or selfinsurance carried by County. State that waiver of subrogation is in favor of County. Name McLennan County, officers, and employees, agents, and volunteers as Additional Insureds on general liability, umbrella/excess liability, pollution liability, etc. Provide a minimum of 30 days advance written notice of cancellation or non-renewal of policies required under the contract to County. Certificate Holder on Certificate: McLennan County Auditor s Department 214 N. 4th Street, Suite 100 Waco, TX Selected Firm shall maintain at its own expense full and adequate insurance as follows: Commercial General Liability a. General Aggregate - $2,000,000 b. Products/Completed Operations Aggregate - $2,000,000 c. Each Occurrence Limit - $1,000,000 d. Personal/Advertising Injury - $1,000,000 e. Liability assumed under contract must be included Commercial Automobile Liability a. Bodily Injury/Property Damage - $1,000,000 CSL b. Owned, Non-owned, and Hired vehicles must be included Workers Compensation a. Coverage A (Worker s Compensation) Texas Statutory Limits b. Coverage B (Employers Liability) - $100,000 per Accident, $500,000 Policy Limit/Disease, $100,000 Each Employee/Disease

12 Professional Liability a. $1,000,000 per Claim COMPANY INFORMATION, EXPERIENCE AND REFERENCES Please Provide three (3) client references (please include groups that are government entities and/or nonprofit organizations if you serve any such entities). a) Company Name Contact Person Address City State Zip Telephone Fax Address Number of Machines Years Under Contract b) Company Name Contact Person Address City State Zip Telephone Fax Address Number of Machines Years Under Contract c) Company Name

13 Contact Person Address City State Zip Telephone Fax Address Number of Machines Years Under Contract Please provide a summary of the history and experience of your company in providing vending machine services, and an executive summary of your company management and form of business. AWARD SUBJECT TO EXECUTION OF APPROVED LICENSE AGREEMENT Award of the license is subject to the Concessionaire entering into a written license agreement with the County containing terms and conditions acceptable to the County and its legal counsel. EVALUATION AND AWARD Upon receipt of proposals, the County will evaluate the documentation received. Award will not be limited to the best commission percentage, although that will weigh heavily in the decision. It is imperative that food product, selection and service be satisfactory to the County. It is intended that the license be awarded based on all relevant considerations including, but not necessarily limited to, the variety of product available, relevant retail costs of product, commission rate, and the Concessionaire s ability to perform. PROPOSAL FOR LICENSE TO PLACE VENDING MACHINES ON COUNTY PROPERTY 1. Respondent Name: Provide Local Address:

14 Provide Corporate Headquarters Address: 2. Reference Information Attached? 3. Agree to abide by the Insurance and Indemnification requirements contained in this proposal? 4. Commission/License Fee: Percentage of Gross Receipts (after applicable sales taxes) offered to the County % Monthly Guaranteed Minimum: 5. Proposed Item List with prices attached? 6. Information relating to other requirements of the RFP attached? (ex. Restocking schedules, quality control and complaint procedures, response times, designated representative, cooperation with regard to items offered, etc.) 7. Provide information/brochures on equipment to be used in the County. Signature name: Printed name: Company name: Company Address: Contact Phone: Please check our web site periodically for any updates/addenda to McLennan County proposals:

Notice to Bidders. No faxed or ed bids will be accepted. Bids received after the closing time will not be accepted.

Notice to Bidders. No faxed or  ed bids will be accepted. Bids received after the closing time will not be accepted. KEN BASS DIRECTOR OF PURCHASING 214 NORTH 5 TH STREET WACO, TEXAS 76701 (254) 757-5016 FAX (254) 757-5068 Notice to Bidders Sealed bids will be received by the McLennan County Purchasing Department at

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