DATE: August 25, 1995 - Seattle



State of Washington

Current Contract Information

Revision date: July 7, 2005

|Contract number: |10103 |Commodity code: |Various |

|Contract title: |Correctional Industries Umbrella Contract |

|Purpose: |To clarify how sales tax is applied to invoices issued by Correctional Industries |

|Term: |See Page 12, Paragraph 3. |

|For use by: |Convenience/Mandatory** |

| |**Convenience (unless otherwise designated as mandatory on the Delivery Time Schedule) for all State Agencies, |

| |Higher Education, and the legislature. Other authorized but not mandated users include Political Subdivisions of |

| |Washington and Oregon State, and Qualified Non-profit Corporations. |

|Contract type: |This contract is designated as convenience/mandatory use (see Delivery Time Schedule for designation). |

|Scope of contract |This contract is awarded to one contractor. |

|Contractor : |Washington State Department of Corrections |

| |Correctional Industries |

|Address: |Customer Service Dept., |Customer Service |

| |Washington Correction Center |Phone: (800) 628-4738 |

| |2321 Dayton Airport Road |FAX: (888) 535-0627 |

| |Bldg. “G” |Fed. I.D. No.: 91-0902133 |

| |Shelton, WA 98584 |Supplier No.: 8708 |

|Products available: |Sandbags, validation tabs, sign recycling, sign refurbishing, sewing/apparel, shoes, flat goods, mattresses, |

| |engraving, printing, emergency products, signage (wood & aluminum), CAD services, temporary housing, storage |

| |sheds, embroidery, screen printing, laundry services, agricultural products & services, meat cutting, binders, |

| |food products, environmental services, garments |

| |Added 02/10/05: laundry, dishwashing, floor care and cleaning chemicals |

| |Added 06/14/05: bed linens, towels, mattresses & covers, |

|Ordering information: |Contact CI Customer Service Department |

|Ordering procedures: |Field Orders mailed, faxed or e-mailed to CI Customer Service Dept. |

|CI website: | |

This page contains key contract features. Find detailed information on succeeding pages. For more information on this contract, or if you have any questions, please contact your agency Purchasing Office or you may contact the contract manager at the number listed below

|Interim Contact: |Connie Stacy | | |

|Phone Number: | (360) 902- 7435 | | |

|Fax Number: | (360) 586-2426 | | |

|Email: |cstacy@ga. | | |

Visit our Internet site:

|Payment address: |DOC-Correctional Industries ATTN: CI Accounting |

| |P.O. Box 41116, Olympia, WA 98504-1116 |

|Order placement address: |DOC-Correctional Industries |

| |Customer Service Dept., |

| |Washington Correction Center |

| |2321 Dayton Airport Road, Bldg. “G” |

| |Shelton, WA 98584 |

|Minimum orders: |None. |

|Delivery time: |See table attached |

|Payment terms: |Net 30 Days. See also Page 12, Paragraph 6. |

|Shipping destination: |All prices quoted are FOB Destination |

|Freight: |Prepaid and Added to Customer’s Invoice. |

|Contract pricing: |Customer Contract Terms, or |

| |See web site @ |

| |For custom items contact CI Customer Service for a quote |

|Term Worth: |$10,000,000.00/ 2 yr. |

|Current Participation: |$0.00 MBE |$0.00 WBE |$0.00 OTHER |$10,000,000/2 yr. EXEMPT |

| |MBE 0% |WBE 0% |OTHER 0% |Exempt 100% |

Notes:

I. Ordering: State Agencies: Submit Order directly to Contractor for processing. Political Subdivisions: Submit orders directly to Contractor referencing State of Washington contract. If you are unsure of your status in the State Purchasing Cooperative call (360) 902-7415.

II. Authorized Purchasers: Only authorized purchasers included in the State of Washington Purchasing Cooperative (WSPC) and State of Oregon Cooperative Purchasing Program (DASCPP/ORCPP) listings, which are published and updated periodically by OSP and DAS may purchase from this contract. It is the contractor’s responsibility to verify membership of these organizations prior to processing orders received under this contract. Washington membership list is available at OSP’s Internet site: , and Oregon membership list is available at . Contractors shall not process state contract orders from unauthorized users.

Special Conditions:

1. 07/07/05: Although in accordance with WAC 458-20-189, Correctional Industries is not required to charge sales tax for products sold to another state agency, state agencies are required to pay “use tax”. However, you may request that CI include sales tax on your invoices thus eliminating the need for you to calculate and remit use tax directly to the Department of Revenue. When CI charges sales tax, it is based upon the origin point (which may differ within the state based upon where the product was produced), unless the product is installed, then the tax rate applied pertains to the installation location.

2. 06/28/05: Correctional Industries has provided a corrected product listing, attached, for the “PortionPac” items (please reference page 12).

3. 06/20/05: Blankets, pillows, pillow cases and sheets that were previously available from Central Stores (commodity codes as follows) have been added to the “Flat Goods” category as indicated herein.

• 7210-023-152 Blanket, cotton, snag free

• 7210-023-100 Blanket, cotton, thermal weave

• 7210-070-005 Blanket, wool

• 7210-035-001 Pillow cases

• 7210-066-080 Pillows

• 7210-040-001 Sheets, flat

4. 05/16/05: With the concurrence of Correctional Industries per agreement signed May 13, 2005, incorporated a price adjustment clause (reference Special Terms and Conditions, Clause #27).

5. 03/30/05: price increase of 5.28% for all mattress and pillow items as reflected in CI’s online catalog.

6. 02/10/05: add dishwashing, floor care, cleaning and laundry chemical products as indicated in the attached. These products are considered as “convenience purchase” until such time they receive “Green Seal” and DOC Chemical Committee approval.

7. All other terms, conditions, specifications, and pricing remain unchanged.

SUPPLIER'S REPRESENTATIVES 4

Contract Administration 4

Accounting Inquiries 4

Sales Department 4

Products Available 5

Quantity discounts 6

(This does not apply to this category of products) Error! Bookmark not defined.

Order Procedures: 6

Delivery Time Schedule 7

SPECIAL TERMS & CONDITIONS 18

1. SCOPE OF CONTRACT 18

2. CUSTOMER 18

3. TERM OF CONTRACT 18

4. CONTRACT EXTENSION 18

5. CONTRACTOR'S REPRESENTATION 18

6. PAYMENT TERMS 18

7. SHIPPING LOCATIONS 18

8. CONTRACT SPECIFIC CATALOG 19

9. PURCHASE ORDER ACKNOWLEDGMENT 19

10. FAX ORDERS 19

11. ORDER CANCELLATION & CHANGE ORDERS 19

12. PACKAGING 19

13. SHIPPING INSTRUCTIONS 19

14. DELIVERY 20

15. RECEIPT OF DAMAGED/INCORRECT MERCHANDISE 20

16. RESTOCKING PROVISION 21

17. WARRANTY 21

18. CI PERFORMANCE AS A CONTRACTOR 21

19. ESTIMATED USAGE 21

20. USAGE REPORTS 21

21. RETENTION OF RECORDS 21

22. ORDER OF PRECEDENCE 22

23. ALTERATIONS AND AMENDMENTS 22

24. MATERIALS, WORKMANSHIP, AND QUALITY CONTROL 22

25. OSHA AND WISHA REQUIREMENTS/SAFETY STANDARDS 22

26. TAXES: 22

27. PRICE ADJUSTMENTS…………………………………………………………………………………………………………………28

STANDARD TERMS & CONDITIONS 23

1. ENTIRE AGREEMENT 23

2. CONFLICT AND SEVERABILITY 23

3. NONDISCRIMINATION AND AFFIRMATIVE ACTION 23

4. WORKERS RIGHT TO KNOW 23

5. GIFTS AND GRATUITIES 23

6. RIGHTS AND REMEDIES 23

7. SAVE HARMLESS 24

8. PERSONAL LIABILITY 24

9. ADVERTISING 24

10. TAXES, FEES AND LICENSES 24

11. LIENS, CLAIMS AND ENCUMBRANCES 24

12. TITLE AND RISK OF LOSS 24

13. PERFORMANCE 24

14. IDENTIFICATION 24

15. CHARGES FOR HANDLING 24

16. INVOICING 24

17. PAYMENT 25

18. CHANGES 25

19. ADDITIONS OR DELETIONS 25

20. FORCE MAJEURE 25

PERFORMANCE REPORT 26

PRODUCT/SERVICE PERFORMANCE REPORT 27

|SUPPLIER'S REPRESENTATIVES |

| |

|Ordering of standard products, order status information, general information, or to arrange an appointment with an Account Executive, contact: |

|Contact |Phone |Fax |Email |

|Customer Service Hotline |800-628-4738 |888-535-0627 |cicustsrvc@doc1. |

| |

|Contract Administration |

|Contact |Phone |Fax |Email |

|Kathryn Bush, Assistant Administrator |(360) 753-3564 |(360) 753-0219 | |

|Mike Pracna, Research and Product Manager |(360) 586-4046 |(360) 753-0219 |mtpracna@doc1. |

| |

|Accounting Inquiries |

|Contact |Phone |Fax |Email |

|Jim Morgan, Controller |(360) 753-5704 |(360) 664-9329 |jemorgan@doc1. |

| |

|Sales Department |

|Contact the customer service hotline (800-628-4738) for your assigned sales representative. |

Products Available

| |CATEGORY |PRODUCTS INCLUDED: |

|1. |Sandbags |sandbags |

|2. |Validation Tabs |Vehicles, motorcycles, boats, parking, underground tank identification |

|3. |Sign Recycling |Aluminum signage, hydro stripping |

|4. |Sign Refurbishing |Environmentally friendly, hydro stripping |

|5. |Sewing & Apparel |Jeans, work shirts and pants, uniforms, pajamas, kimonos, ladies shirts, dresses, shoes, |

| | |fleece vests |

|6. |Textiles & Flat Goods |Flat sheets (percale and muslin), fitted sheets (percale and muslin), blankets (snag free, |

| | |thermal, wool and cotton), pillows, pillow cases (percale and muslin), mattress covers, |

| | |mattress ticking, towels (wash, bath, hand and bar), aprons, bags (laundry, hamper and |

| | |property) |

|7. |Mattresses |Cotton, neoprene foam |

|8. |Engraving |Name plates and holders, name badges, signs (desk top, doors, inside directional hallway) |

|9. |Printing |Office supplies, business cards, brochures, posters, catalogs and directories, multiple part |

| | |forms, folders, envelopes, booklets |

|10. |Emergency Products |Office/vehicle biohazard spill kits, infectious disease personal protection packs, first aid |

| | |kits (standard or custom made), safety products |

|11. |Signage, Wood (Indoor and Outdoor | Sandblasted (redwood/cedar), engraved |

|12. |Computer Aided Drafting (CAD) Services |Copy drafting, specialized drawings, office furniture layouts (panel systems, free standing |

| | |systems, conference rooms, training centers, etc), office layout drawings (overhead, floor |

| | |plan and 3-D view), classroom layout drawings, blue print digitizing, city/county vital |

| | |records digitizing, property plat card conversions |

|13. |Temporary Housing & Storage Sheds |Site preparation, interior furnishings, conventional construction, tents and converted |

| | |shipping containers |

|14. |Embroidery |Patches, caps, silk screening |

|15. |Screen Printing |Apparel (screen printing on T shirts, pants, uniforms, sweatshirts, polo shirts, jackets, |

| | |caps/hats, flags, bags/totes, banners) accessories (aprons, robes, towels) Eco fiber products |

| | |(sport shirts, T shirts and caps) |

|16. |Services |Laundry, dry cleaning |

|17. |Agricultural Products & Services |Composting – processing, bagging, worm casting; Recycling – metal, cardboard, Hay (for elk |

| | |herds); Pheasant breeding, Pheasant Food |

|18. |Food |Prepared foods and various meat products |

|19. |Environmental Services |Environmental cleanup, storage tank removal, lead and/or asbestos abatement, renovation, |

| | |restoration, demolition and hazardous materials handling and removal |

|20. |Chemicals |Dishwashing, floor care, all purpose cleaning, laundry |

Quantity discounts do not apply to these categories

Ordering Procedures:

Correctional Industries Contract 10103 is a convenience/mandatory (see Delivery Time Schedule for designation) contract. This contract offers various products and services. For those products designated as “convenience”, if the products/services available on this contract do not meet the customer’s needs, then purchaser may proceed with other available Office of State Procurement contracts (or alternate sources when no other OSP contract is available) without using the Exemption Application Process. For those products designated as “mandatory”, the Exemption Application Process applies.

Note: for “mandatory” purchase items, quicker delivery and/or lower price do not qualify as reasons for not purchasing CI’s products.

If you choose to purchase non-contract item, you are not required to provide a justification with your purchase file.

Administrative Fee: Correctional Industries will pay the Office of State Procurement a contract management fee calculated as one percent (1%) of the total of all purchase orders paid under this contract. This fee is due at the same time as the Usage Report (below) and paid to Washington State, Office of State Procurement.

Delivery Time Schedule

|Product/Service |Mandatory/ |Delivery ARO |Additional Services Call For |Volume Considerations |

| |Convenience | |Details |Affecting Prices & |

| | | | |Delivery Times |

|Sandbags  |

| Emergency Orders Minimum |Mandatory |Puget Sound Region delivery 6 |Yes. Consignment options available |Yes. Seasonal |

|Order 100 units Maximum | |hours. Up to 10 days to build from | |Considerations & |

|Available 500 units | |scratch. | |Purchasing Cycles |

| | | | | |

|Stickers – Authorization Stickers  |

|Parking |Convenience |14 days |Yes. Design Services available |Yes |

|Underground Tanks |Convenience |14 days |Yes. Design Services available |Yes |

|Sign Recycling  |

|Aluminum Signage |Mandatory |4 weeks |Yes. Welcomed |Yes |

|Hydro Stripping |Mandatory |4 weeks |Yes. Welcomed |Yes |

|Sign Refurbishing  |

| Hydro Stripping |Mandatory |4 weeks |Yes. Welcomed |Yes |

|Sewing/Apparel  |

|Jeans Size Med & Large |Convenience |48 hours special requests. 45 days |Yes. Welcomed |Yes |

|Minimum Order 5 pairs Maximum| |for standard orders | | |

|Order 20 pairs | | | | |

| | | | | |

|Work Pants |Convenience |48 hours special requests. 45 days |Yes. Welcomed |Yes |

| | |depending upon product mix & | | |

| | |volume. 45 days for standard | | |

| | |orders within full catalog. | | |

| | | | | |

|Work shirts |Convenience |As mutually agreed upon |Yes |Yes |

|Uniforms |Convenience |As mutually agreed upon |Yes |Yes |

|Pajamas |Convenience |72 hours special request. 45 days |Yes. Welcomed |Yes |

| | |for standard catalog orders. | | |

|Kimonos |Convenience |72 hours special request. 45 days |Yes. Welcomed |Yes |

| | |for standard catalog orders. | | |

|Ladies Shirts |Convenience |72 hours special request. 45 days |Yes. Welcomed |Yes |

| | |for standard catalog orders. | | |

|Dresses |Convenience |72 hours special request. 45 days |Yes. Welcomed |Yes |

| | |for standard catalog orders. | | |

|Fleece Vests |Convenience |30 days |Alyssa Eyre, Supervisor |Yes. Per Quote (RFQ) or |

| | | |Ahtanum View Correctional Complex |Proposal (RFP) |

| | | |2009 S 64th Avenue | |

| | | |Yakima, WA 98803 | |

| | | |Phone: (509) 573-6373 | |

| | | |Fax: (509) 573-6376 | |

|Shoes |Convenience |As mutually agreed upon |Yes |Yes |

|Textiles and Flat Goods  |

| | |72 hours special request. 45 days |Order from: | |

| | |for standard catalog orders. |Correctional Industries | |

| | | |Coyote Ridge Corrections Center | |

| | | |1301 N. Ephrata Street |Yes. Per Quote (RFQ) or |

| | | |Connell, WA 99326-0250 |Proposal (RFP) |

| | | | | |

| | | |Contact: Roger Hewitt, Supervisor | |

| | | |Phone: (509) 543-5818 | |

| | | |Fax: (509) 543-5842 | |

| |Mandatory | | | |

|Pillow Cases (muslin & | | |Website: | |

|percale) | | | | |

| | | | | |

| | | | | |

|Sheets, fitted and flat | |Same as above |Same as above |Same as above |

|(muslin & percale) | | | | |

| |Mandatory | | | |

|Blankets (snag free, thermal,| |Same as above |Same as above |Same as above |

|wool and cotton) | | | | |

| |Mandatory | | | |

|Pillows | |Same as above |Same as above |Same as above |

| | | | | |

| |Mandatory | | | |

|Mattress Covers & Ticking | |Same as above |Same as above |Same as above |

| | | | | |

| |Mandatory | | | |

|Towels (wash, bath, hand & | |Same as above |Same as above |Same as above |

|bar) | | | | |

| |Mandatory | | | |

|Aprons | |Same as above |Same as above |Same as above |

| |Mandatory | | | |

|Bags (laundry, hamper, | |Same as above |Same as above |Same as above |

|property) |Mandatory | | | |

|Mattresses  |

|Cotton |Convenience |72 hours special request. 30 days |Custom sizes |Yes |

| | |for standard catalog orders. | | |

|Neoprene Foam |Convenience |72 hours special request. 30 days |Custom sizes |Yes |

| | |for standard catalog orders. | | |

|Engraving  |

|Nameplates & Holders |Convenience |1-10 units in 7 days. Greater than |Yes |Yes |

| | |10 units - 30 days. | | |

|Name Badges |Convenience |50 units in 7 days. Greater than 50|Yes |Yes |

| | |units - 30 days | | |

|Signs (desk top, doors, |Convenience |1-10 units in 7 days. Greater than|Yes |Yes |

|directional) | |10 units - 30 days. | | |

|Printing  |

|Business Cards |Convenience |10 days from receipt of signed |Yes |Yes |

| | |proof. | | |

|Office Supplies |Convenience |10 days from receipt of signed |Yes |Yes |

| | |proof. | | |

|Brochures |Convenience |As mutually agreed or contracted |Yes |Yes |

|Posters |Convenience |As mutually agreed or contracted |Yes |Yes |

|Catalogs |Convenience |As mutually agreed or contracted |Yes |Yes |

|Directories |Convenience |As mutually agreed or contracted |Yes |Yes |

|Multiple Part Forms |Convenience |10 days from receipt of signed |Yes |Yes |

| | |proof. | | |

|Folders |Convenience |10 days from receipt of signed |Yes |Yes |

| | |proof. | | |

|Envelopes |Convenience |10 days from receipt of signed |Yes |Yes |

| | |proof. | | |

|Booklets |Convenience |As mutually agreed or contracted |Yes |Yes |

|Emergency Products  |

|Office/Vehicle Biohazard Kits|Convenience |72 Hrs. after standardization |Yes. Customization |Yes |

| | | | | |

|Infectious Disease Personal |Convenience |72 Hrs. after standardization |Yes. Customization |Yes |

|Protection Packs | | | | |

|First Aid Kits (Standard or |Convenience |72 Hrs. after standardization |Yes. Customization |Yes |

|Custom) | | | | |

|Safety Products |Convenience |72 Hrs. after standardization |Yes. Customization |Yes |

|Signage Wood (Indoor & Outdoor); Metal & Plastic |

|Sandblasted (redwood & cedar)|Mandatory |4 weeks |Yes. Customization welcomed |Yes |

|Engraved |Mandatory |4 weeks |Yes. Customization welcomed |Yes |

|CAD Services  |

|Copy Drafting |Convenience |Special requests within hours |Yes |Yes |

| | |quoted. Currently running 72 hours.| | |

|Specialized Drawings |Convenience |RFQ |Yes |Yes |

|Furniture Layout |Convenience |48-Hrs. for 1-2 workstations |Yes. Designs, modifications and customization |Yes |

| | | |welcomed. | |

|Office Layout |Convenience |48-Hrs. for 1-2 workstations |Yes. Designs, modifications and customization |Yes |

| | | |welocmed. | |

|Classroom Layout |Convenience |48 Hrs for 1-2 classrooms |Yes |Yes |

|Blue Print Digitizing |Convenience |Special requests within hours |Yes |Yes |

| | |quoted. Currently running 72 hours.| | |

| | |Standard orders as per quote. | | |

| | | | | |

|City/County Vital Records |Convenience |Special requests within 48 hours. |Yes |Yes |

|Digitizing | |Standard orders within 7 days. | | |

|Temporary Housing/Storage Sheds  |

|Site Preparation |Convenience |As mutually agreed upon and/or |Yes |Per Quote |

| | |contracted | | |

|Interior Furnishings |Convenience |As mutually agreed upon and/or |Yes |Per Quote |

| | |contracted | | |

|Conventional Construction |Convenience |As mutually agreed upon and/or |Yes |Per Quote |

| | |contracted | | |

|Tents |Convenience |As mutually agreed upon and/or |Yes |Per Quote |

| | |contracted | | |

|Converted Shipping Containers|Convenience |As mutually agreed upon and/or |Yes |Per Quote |

| | |contracted | | |

|Embroidery & Screen Printing  |

|Patches |Mandatory |48 Hrs. |Yes. Welcomed |Yes |

|Caps |Mandatory |48 Hrs. |Yes. Welcomed |Yes |

|Apparel (T-Shirts, Uniforms, |Mandatory |48 Hrs. |Yes. Welcomed |Yes |

|Pants, etc.) | | | | |

|Accessories (Aprons, Robes, |Mandatory |48 Hrs. |Yes. Welcomed |Yes |

|Towels) | | | | |

|Eco Fiber Products |Mandatory |48 Hrs. |Yes. Welcomed |Yes |

|Services  |

|Laundry |Convenience |48 Hrs. and $.35/lbs. |Yes. For example; water proofing, tailoring, design|Yes |

| | | |& construction, uniforms. | |

| | | | | |

|Dry Cleaning |Convenience |48 Hrs. and $2.55/lbs. |Yes |Yes |

|Environmental Cleanup |Convenience |As mutually agreed upon and/or | | |

| | |contracted | | |

|Storage Tank Removal |Convenience |As mutually agreed upon and/or | | |

| | |contracted | | |

|Lead/Asbestos Abatement |Convenience |As mutually agreed upon and/or | | |

| | |contracted | | |

|Renovation |Convenience |As mutually agreed upon and/or | | |

| | |contracted | | |

|Restoration |Convenience |As mutually agreed upon and/or | | |

| | |contracted | | |

|Demolition |Convenience |As mutually agreed upon and/or | | |

| | |contracted | | |

|Hazardous Materials Handling |Convenience |As mutually agreed upon and/or | | |

|and Removal | |contracted | | |

|Agricultural Products & Services  |

|Composting - Processing |Convenience |As mutually agreed upon and/or |Yes |Yes |

| | |contracted | | |

|Recycle - Metal & Cardboard |Convenience |As mutually agreed upon and/or |Yes |Yes |

| | |contracted | | |

|Hay (Elk Herds) |Convenience |As mutually agreed upon and/or |Yes |Yes |

| | |contracted | | |

|Pheasant Breeding |Convenience |As mutually agreed upon and/or |Yes |Yes |

| | |contracted | | |

|Pheasant Food |Convenience |As mutually agreed upon and/or |Yes |Yes |

| | |contracted | | |

|Food  |

|Meat |Convenience |Same day if necessary and as |Yes |Yes |

| | |possible. 7 day delivery schedules| | |

| | |are standard | | |

|Prepared Foods |Convenience |Same day if necessary and as |Yes |Yes |

| | |possible. 7 day delivery schedules| | |

| | |are standard | | |

|Chemicals | | | | |

|Dishwashing, floor care, all | |Contact CI |Contact CI |Contact CI |

|purpose cleaners and laundry | | | | |

|chemicals | | | | |

| |Convenience | | | |

06/28/05: Corrected “PortionPac” product listing (items were added to the contract 02/05):

| |Price per Case|Pacs per Case |

|ScrubPac( Heavy Duty All Purpose Detergent | | |

|102PP |ScrubPac/2 Each pac makes 2 gallons heavy duty scrubbing or 4 gallons mopping solution. Also makes 1 quart | $ 315.00 |528 |

| |spray cleaning solution with No. 320100 Bottle. | | |

|104PP |ScrubPac/4 Each pac makes 4 gallons of heavy duty scrubbing or 1 quart of heavy duty spray cleaning solution| $ 295.20 |288 |

| |with No. 320100 Bottle. | | |

| | | | |

|Germicidal Detergent | | |

|201PP |Germicidal Detergent/1 Each pac makes 1 gallon of quaternary disinfectant/detergent solution. | $ 266.40 |960 |

|202PP |Germicidal Detergent/2 Each pac makes 2 gallons of quaternary disinfectant/detergent solution. | $ 270.00 |528 |

|204PP |Germicidal Detergent/4 Each pac makes 4 gallons of quaternary disinfectant/detergent solution. | $ 228.60 |288 |

|264PP |Germicidal Detergent/8 Each pac makes 8 gallons of quaternary disinfectant/detergent solution. Use with No.| $ 235.80 |160 |

| |52064 Stock Solution Bottle and No. 160200 Spray Bottle. | | |

| | | | |

|StripPac( Floor Finish Remover | | |

|314PP |StripPac/4 Each pac makes 4 gallons of solution for removing floor finish. | $ 300.60 |104 |

| | | | |

|NeutraPac( Floor Conditioner/Neutralizer | | |

|404PP |NeutraPac/4 Each pac makes 4 gallons of solution for conditioning floors after stripping. Ideal for removal| $ 207.00 |432 |

| |of snow melt compounds. | | |

| | | | |

|BowlPac( Toilet Bowl and Bathroom Cleaner | | |

|532PP |BowlPac Each pac makes 1 quart of non-corrosive Bathroom Cleaner. Use with No. 320500 Bottle. | $ 252.00 |312 |

| | | | |

|LaundryPac( Commercial Strength Laundry Detergent | | |

|940PP |LaundryPac Use 1 pac per load for general wash. Optical brightners, phosphate free. | $ 178.20 |288 |

| | | | |

|SteamPac( Carpet Extraction Detergent with Odor Counteractant | | |

|1207PP |SteamPac/7 Each pac makes 7 gallons of extraction detergent with built-in defoamer. | $ 207.00 |144 |

|1210PP |SteamPac/10 Each pac makes 10 gallons of extraction detergent with built-in defoamer. | $ 214.20 |120 |

| | | | |

| |Price per Case|Pacs per Case |

|GlassPac( Glass and Mirror Cleaner | | |

|1432LPP |GlassPacLite Each pac makes 1 quart of Heavy Duty Glass Cleaner with "Lite" fragrance. Use with No. 321400 | $ 153.00 |288 |

| |Spray Bottle. | | |

| | | | |

|AirFreshPac( Air Freshener - Odor Counteractant | | |

|1732PP |AirFreshPac Each pac makes 1 quart of Air Freshener/Counteractant. Use with No. 321700 Air Freshener Spray | $ 264.60 |480 |

| |Bottle. | | |

| | | | |

|MopPacLite( pH Neutral Floor Cleaner | | |

|1802PP |MopPacLite/2 Each pac makes 2 gallons of rinse-free solution with pH of 7 to 7.2. Leaves no residue. | $ 264.60 |720 |

|1804PP |MopPacLite/4 Each pac makes 4 gallons of rinse-free solution with pH of 7 to 7.2. Leaves no residue. | $ 244.80 |432 |

| | | | |

|Floor Care Program | | |

|2464PP |Janus( Gold Floor Finish Each pac makes 1/2 Gallon of Ready-To-Use Acrylic Floor Finish. Exceptional | $ 124.20 |12 |

| |durability, gloss and slip resistance. Maintain with burnisher (up to 1500 rpm) and natural hair floor pad. | | |

|2564PP |Janus( Silver HSB Floor Finish Each pac contains 1/2 Gallon of Ready-To-Use Urethane Enhanced Floor Finish. | $ 129.60 |12 |

| |Maintain with high speed burnisher (minimum 1500 rpm) to produce "wet look". | | |

|2110PP |BritePac( Auto Scrubber Floor Cleaner and Gloss Restorer Each pac makes 10 gallons. Neutral Cleaner/Acrylic| $ 216.00 |120 |

| |Brightner for Auto Scrubber with built-in defoamer and air freshener. | | |

| | | | |

|BacPac( Bacterial Enhanced Detergent | | |

|2202PP |BacPac Each pac makes 2 gallons of biologically enhanced mopping detergent to eliminate the daily | $ 336.60 |240 |

| |accumulation of organic wastes on floors and in drain lines. Also makes 1 quart of solution to digest | | |

| |organic wastes from hard surfaces and carpets. Use with No. 322202 Spray Bottle. | | |

| | | | |

|DepotPac( Detergent Refill System Each pac makes five (5) gallons of solution that can then be drawn off into spray bottles. Ideal for centralized filling of |

|spray bottles. DepotPac products are packed 6 cartons per case. |

| | |Price per Case|Pacs per Case |

|105PP |DepotPac Heavy Duty Cleaner/Degreaser/5 Use with No. 320100 Spray Bottle. | $ 243.00 |18 |

|205PP |DepotPac Germicidal Detergent/5 Use with No. 320200 Spray Bottle. | $ 208.80 |192 |

|505PP |DepotPac Toilet Bowl and Bathroom Cleaner/5 Use with No. 320500 Applicator Bottle. | $ 252.00 |18 |

|1405PP |DepotPac Glass Cleaner/5 Use with No. 321400 Spray Bottle. | $ 217.80 |36 |

|1705PP |DepotPac Air Freshener-Odor Counteractants/5 Use with No. 321700 Spray Bottle. | $ 306.00 |36 |

|Pac-Per Quart( System Several products in the PortionPac system are ideal for decentralized re-filling of spray bottles, saving time and maximizing labor. |

|Bottles can be re-filled at any water source by simply filling bottle with water and adding the contents of one pac. Ideal for use with No. 43108 Point-of-Use|

|Mixing Hose and Nos. 43110 and 43111 CarryPac System. |

| | |Price Per Quart |

|QS102PP |ScrubPac/2 Makes All Purpose Cleaner. Use with 320100 Spray Bottle. | $ 0.59 |

|QS104PP |ScrubPac/4 Makes Heavy Duty Cleaner. Use with 320100 Spray Bottle. | $ 1.03 |

|QS532PP |BowlPac Makes Bathroom Cleaner. Use with 320500 Applicator Bottle. | $ 0.81 |

|QS1432PP |GlassPac Makes Glass and Stainless Cleaner. Use with 321400 Spray Bottle. | $ 0.44 |

|QS1732PP |AirFreshPac Makes Air Freshener-Odor Counteractant. Use with 321700 Spray Bottle. | $ 0.55 |

|QS2132PP |BuffPac Makes spray Buff Floor Finish Solution. Use with No. 322132 Spray Bottle. | $ 1.40 |

|QS2202PP |BacPac Makes solution to digest organic wastes. | $ 1.40 |

| | | |Price per Case |Price for Each |

|PortionPac( Color-Coded Bottles and Accessories | | | | |

|160200PP |Germicidal Detergent Bottle/Sprayer |16 oz |96/ctn. | $ 129.60 | $ 1.35 |

|320100PP |ScrubPac Bottle/Sprayer |32 oz |84/ctn. | $ 136.80 | $ 1.63 |

|320200PP |Germicidal Detergent Bottle/Sprayer |32 oz |84/ctn. | $ 136.80 | $ 1.63 |

|320500PP |Bathroom Cleaner Bottle/Cap |32 oz |84/ctn. | $ 136.80 | $ 1.63 |

|321400PP |Glass Cleaner Bottle/Sprayer |32 oz |84/ctn. | $ 136.80 | $ 1.63 |

|321700PP |Air Freshener Bottle/Sprayer |32 oz |84/ctn. | $ 136.80 | $ 1.63 |

|322132PP |Spray Buff Bottle/Sprayer |32 oz |84/ctn. | $ 136.80 | $ 1.63 |

|322202PP |BacPac Bottle/Sprayer |32 oz |84/ctn. | $ 136.80 | $ 1.63 |

|52064PP |1/2 gallon Stock Bottle/Pump | |54/ctn. | $ 265.50 | $ 4.92 |

|50640PP |DepotPac System 5 Gallon Dispenser | |6/ctn. | $ 56.70 | $ 9.45 |

|43103PP |Distribution Tray | |25/ctn. | $ 79.20 | $ 3.17 |

|43104PP |Inspection Mirror with Light | |Each | $ 3.42 | $ 3.42 |

|43107PP |Pac Cutter and Tie | |100/ctn. | $ 127.80 | $ 1.28 |

|43108PP |Point-of-Use Mixing Hose | |Each | $ 7.02 | $ 7.02 |

|43110PP |CarryPac Hip Pac | |Each | $ 11.52 | $ 11.52 |

|43111PP |Bottle Carrier for CarryPac | |Each | $ 6.30 | $ 6.30 |

|43114PP |ClipPac Closer for Floor Finish Envelopes | |Each | $ 0.90 | $ 0.90 |

|47777PP |Depot System Floor Station | |Each | $ 169.20 | $ 169.20 |

|00071PP |Rule of One Poster | |Each | $ 4.46 | $ 4.46 |

|CorrectPac( |Price per Case |Pacs per Case |

|Food Service Sanitation and Special Products | | |

|FS10CP |All Purpose Cleaner Each pac makes 4 gallons of usable mopping/scrubbing solution. Also use on pac to make | $ 221.40 |216 |

| |on quart of above-floor spray and wipe All Purpose Cleaner (use with No. FS1032 Spray Bottle). Packed 3 | | |

| |cartons of 72 pacs each per case. | | |

|FS14CP |Heavy Duty Pot & Pan Detergent Each pac makes up to 12 gallons of usable solution. Packed 3 cartons of 72 pac| $ 201.60 |216 |

| |each per case. | | |

|FS15CP |Heavy Duty Pot & Pan Detergent Each pac makes up to 25 gallons of usable solution. (To make smaller amounts | $ 187.20 |120 |

| |follow direction on No. FS1532 dispenser bottle). Packed 3 cartons of 40 pacs each per case. | | |

|FS16CP |Sanitizer Each pac makes 10 gallons of usable solution (or 5 gallons for spray sanitizing. Use with FS0165 | $ 129.60 |180 |

| |Five Gallon Dispenser and FS 1632 quart Spray Bottle). Provides 150 p.p.m. active quaternary sanitizer | | |

| |(equivalent to 50 p.p.m. available chlorine). U.S.D.A. List: Category D-2 no potable water rinse required. | | |

| |Packed 3 cartons of 60 pacs each per case. | | |

|FS17CP |Sanitizer Each pac makes 20 gallons of usable solution (or one-half gallon Stock Solution. Use with FS1764 | $ 120.60 |90 |

| |Sanitizer Stock Solution Bottle and FS 1732 quart Spray Bottle). Provides 150 p.p.m. active quaternary | | |

| |sanitizer (equivalent to 50 p.p.m. available chlorine). U.S.D.A. List: Category D-2 no potable water rinse | | |

| |required. Packed 3 cartons of 30 pacs each per case. | | |

|FS18CP |Sanitizer Each pac makes 5 gallons of usable solution. Provides 150 p.p.m. active quaternary sanitizer | $ 142.20 |324 |

| |(equivalent to 50 p.p.m. available chlorine). U.S.D.A. List: Category D-2 no potable water rinse required. | | |

| |Packed 3 cartons of 108 pacs each per case. | | |

|FS20CP |Germicidal Detergent Each pac makes 16 gallons of usable solution (or one-half gallon Stock Solution. Use | $ 165.60 |60 |

| |with FS2064 Germicidal Detergent Stock Solution Bottle and FS2032 Germicidal Detergent Spray Bottle). E.P.A. | | |

| |registrations 8722-1. U.S.D.A. List: Category D-1, surfaces. Packed 3 cartons of 20 pacs each per case. | | |

|FS30CP |Degreaser Each pac makes one (1) quart for spray cleaning ovens and heavy duty degreasing. (Use with FS3032 | $ 226.80 |90 |

| |Degreaser Spray Bottle). Or 4 gallons for floor degreasing. Excellent for use on fryers, hoods, ranges and | | |

| |other difficult to clean equipment. Packed 3 cartons of 30 pacs each per case. | | |

|CorrectPac( | |Price per Case |Price for Each |

|Color-Coded Spray Bottles and Miscellaneous Accessories |Packed | | |

|FS1032CP |All Purpose Cleaner 32 oz. (Green) Bottle and Sprayer | 84/ctn | $ 136.80 | $ 1.63 |

|FS1532CP |Pot & Pan Detergent 32 oz. (Purple) Bottle and Dispenser Cap | 84/ctn | $ 136.80 | $ 1.63 |

|FS1732CP |Sanitizer 32 oz. (Grey) Bottle and Sprayer | 84/ctn | $ 136.80 | $ 1.63 |

|FS2032CP |Germicidal Detergent 32 oz. (Red) Bottle and Sprayer | 84/ctn | $ 136.80 | $ 1.63 |

|FS3032CP |Degreaser 32 oz (Orange) Bottle and Sprayer | 84/ctn | $ 136.80 | $ 1.63 |

|FS3042CP |32 oz. Foam Sprayer for Degreaser | 100/ctn | $ 205.74 | $ 2.06 |

|60000CP |Whiter Sprayer for 32 oz (Quart) Bottle | 200/ctn | $ 180.00 | $ 0.90 |

|FS1764CP |1/2 Gallon (Grey) Sanitizer Stock Solution Bottle w/pump | 54/ctn | $ 265.50 | $ 4.92 |

|FS2064CP |1/2 Gallon (Red) Germicidal Stock Solution Bottle w/pump | 54/ctn | $ 265.50 | $ 4.92 |

|FSBUCCP |Sanitizer Bucket | Each | $ 2.14 | $ 2.14 |

|FS0166CP |Sanitizer Test Strips (case) | 10 Rolls | $ 45.00 | $ 4.50 |

|FS0157CP |"Fill To" Labels - Wash |100 | $ 51.53 | $ 0.52 |

|FS0158CP |"Fill To" Labels - Rinse |100 | $ 51.53 | $ 0.52 |

|FS0159CP |"Fill To" Labels - Sanitize |100 | $ 51.53 | $ 0.52 |

|L00010CP |Washing Instruction Chart | Each | $ 1.29 | $ 1.29 |

|FS85CP |Hand Cleanser | 6/case | $ 50.40 | $ 8.40 |

|FS90CP |Hand Lotion | 8/case | $ 88.20 | $ 11.03 |

|FSDISCP |Cleanser/Lotion Dispenser | Each | $ 4.50 | $ 4.50 |

|L00011CP |Hand Care System Instruction Chart | Each | $ 1.62 | $ 1.62 |

|L00057CP |Mixing and Use Chart | Each | $ 2.70 | $ 2.70 |

SPECIAL TERMS & CONDITIONS

SCOPE OF CONTRACT

This contract is for the purchase of Correctional Industries' (CI) products/services. This contract is a convenience/mandatory use contract for all state agencies, higher education, political subdivisions, and non-profit organizations.

Although there may be existing mandatory/convenience contracts with the Office of State Procurement, the usage volumes included on the existing contracts did not include historical CI convenience sales volumes. Therefore, CI convenience sales volumes are expected to remain flat and are not intended to compete with existing mandatory contracts.

CUSTOMER

Authorized Users: All state agencies, institutions, community colleges, universities, political subdivisions, and non-profit organizations will have access to purchase from this contract.

All orders from such eligible customers are subject to the same contract terms, conditions and pricing as state agencies.

TERM OF CONTRACT

The initial contract term shall be for a 2 year period, effective from November 1, 2003 through October 31, 2005.

The parties agree to meet, if necessary, every 24 months to negotiate any modifications of any terms or conditions that may be of concern to either party. If a concern over a term or condition arises prior to the regularly scheduled meeting, the parties will schedule a special meeting and negotiate in good faith over a modification of that term or condition.

In the event of on-going non-performance of contractual requirements, the OSP may do one or more of the following: terminate this contract, impose liquidated damages, or exercise any remedy provided by law.

CONTRACT EXTENSION

The OSP and CI reserve the right to extend this contract for additional contract terms or portions thereof. Contract extensions shall be subject to mutual agreement between OSP and CI. OSP or CI shall respond within thirty (30) calendar days following receipt of a request for extension.

CONTRACTOR'S REPRESENTATION

Responsibility: CI’s Customer Service agents and sales representative(s) shall function as the primary point of contact, ensuring all supervision, coordination and corrective action be taken as necessary to meet contractual requirements.

Availability: CI’s Customer Service agents and sales representative(s) shall be readily available during normal business hours (8:00 AM- 3:45 PM Pacific Standard Time Monday through Friday) throughout the term of this contract. The representative(s) shall respond to a customer call within one business day from their initial call.

CI shall maintain sufficient sales representatives to ensure adequate coverage throughout the state. Sales representative will be responsible for providing correct order/product information. Sales staff shall be capable of assisting customers with product information, technical data, compatibility, order status information, etc.

CI shall maintain sufficient internal office staff to assist in price, availability, order processing, modifications, accessories, options, customizing, changes, etc., and to review orders for accuracy prior to order entry. The contract users will be provided a toll free number for the purpose of answering technical questions.

PAYMENT TERMS

Net 30 days. Payment should be made after receipt of product/service and the receipt of an acceptable invoice from CI. When there are damaged item(s) or there are other factors making replacement of item(s) necessary, payment should be made on all undamaged goods received and invoiced for without regard to the resolution of the item(s) in question. Payment for item(s) in question is to be processed upon satisfactory fulfillment of CI’s contractual obligations and receipt of invoice.

SHIPPING LOCATIONS

Authorized users of this convenience purchase contract have various locations where goods are to be shipped; therefore, CI will ship to any location throughout the state upon customer’s request at no additional cost.

CONTRACT SPECIFIC CATALOG

CI shall update and distribute a contract specific catalog (via mail or electronically) to each principal contract user, at CI's sole expense. The catalog shall include all items available on contract, contract pricing, all applicable literature, and samples. CI is solely responsible for catalog count, based on historical data. However, a distribution list will be provided to CI by OSP. Original set and subsequent distributions are to be provided for OSP’s approval prior to distribution with a minimum of thirty (30) day notice. Initial catalog must be kept current. Periodic distribution of subsequent catalog changes shall all be made in the same format.

PURCHASE ORDER ACKNOWLEDGMENT

CI will acknowledge orders in writing within five (5) business days after receipt of an accurate and complete order. An order is not considered received until all information provided by the customer for the product, billing, and shipping data is complete and accurate. Order acknowledgments will be sent to the customer's “Bill to” address, unless otherwise requested by the customer.

The acknowledgment shall include field/purchase order number, ship to address, items ordered, contract pricing, and ship date. CI shall send only one order acknowledgment per order (unless subsequent changes need to be acknowledged), which shall be a consistent form recognized by their customers, and checked for accuracy prior to mailing.

Written field orders mailed or faxed to CI are preferred. Due to the possibility of errors, CI may refuse to accept telephone orders.

Alternate or additional terms and conditions accompanied with a purchase order acknowledgment are unacceptable; the terms and conditions incorporated herein prevail.

FAX ORDERS

CI will accept fax orders, provided:

a) Customer must send their order with a cover sheet showing how many pages are included in the fax and verify fax transmission report reflects the correct number of pages sent via fax.

b) If a written confirming order is mailed to CI, it must be marked as a "confirming order" and specify the date that the fax order was previously transmitted to CI.

c) Customer is responsibhe for cancellation or return charges should a double order occur because the written order was not properly identified as a "confirming order".

ORDER CANCELLATION & CHANGE ORDERS

The customer may cancel or change orders for standard contract items without penalty within five (5) business days from postmark date of order acknowledgment. After this period, CI may impose a 25% penalty of the item(s) being canceled and/or changed. Delivery/installation is exempt from cancellation penalties.

If a customer cancels an order for custom items, CI may impose up to a 100% penalty of the item(s) being canceled.

PACKAGING

Specifications: Unless otherwise specified, goods are to be shipped in new and undamaged condition and packaged in accordance with shipping industry standards. Goods shipped in other than industry standard packaging, as requested by the customer, shall be at an additional cost and risk to the customer.

Labeling: Individual shipping cartons shall be labeled with the name of the ordering customer, order number, contractor and product number. Product will be identified with the date of manufacture and batch number. If requested by the customer, carton labels shall include tag or location numbers and floor/room numbers.

SHIPPING INSTRUCTIONS

All goods are to be shipped F.O.B. destination in any amount to any delivery location within the state of Washington. The contract pricing includes loading dock delivery. Inside delivery is offered at an additional charge.

Loading Dock Deliveries: No charge for loading dock deliveries. All goods are to be removed from the delivery vehicle by the driver and placed on the loading dock. Under no circumstances are customer personnel to assist driver in unloading vehicle, otherwise the customer will be liable for damage or customer personnel's safety, resulting from assisting driver to unload. If driver refuses to unload, shipment will be rejected at CI's expense.

Exception: If no loading dock is available or if the loading dock is not adequate to handle shipment, then all goods are to be unloaded at the nearest safe approach. A proper delivery location is defined as immediately inside the doors of the building, outside of the weather and a location where the goods would safe from any potential damage. Goods are not to be left outside of the building. No additional charges shall be applied for this type of delivery. However, the customer must identify on their Field Order or in writing that there is a problem with the loading dock. If customer has not properly notified, then the customer may be charged inside delivery charges.

Inside delivery: For inside delivery an additional charge of three percent (3%) will be charged. CI will provide inside delivery as requested on the customer’s field order on an as-needed basis by the contract users. Inside delivery is defined as the delivery of the item(s) to exact location(s) as requested, remove packaging, assembly (if necessary, however assembly may not take place at the time of delivery, in the event of numerous items to assemble), and dispose of packaging. Any orders requiring inside delivery service shall be clearly on Field Order.

Partial shipments: Partial shipments are acceptable unless the purchaser indicates otherwise on the order document or by subsequent written or faxed communication received ten (10) business days prior to acknowledged delivery date.

Food shipping instructions: FOB Destination/HACCP compliance

DELIVERY

See attached delivery schedules.

Telephone Contact Prior to Delivery: Customer should identify a delivery contact person and their telephone number on their order. If telephone notification prior to delivery is required (usually 24 hours prior), the field order must clearly state so and identify the contact person and phone number. Telephone contact shall be construed as direct communication with the contact person or appropriate agency representative (voice mail is unacceptable notification). If CI neglects to provide telephone notification prior to delivery when requested, the customer may refuse delivery. If this occurs, the goods shall be redelivered as mutually agreed, but no later than the next scheduled route delivery.

RECEIPT OF DAMAGED/INCORRECT MERCHANDISE

Anytime damaged or defective merchandise is discovered it should be brought to the immediate attention of Customer Service. CI will complete a Quality Control Report to request repair or replacement. Such customer inspection shall not be construed as final acceptance or as acceptance of the materials or equipment if materials or equipment do not conform to contractual requirements. In the event that CI does not respond within a timely manner, contact OSP, the contract administrator, Connie Stacy at (360) 902-7435 for further assistance.

Delivery of Damaged Goods: When damage is identified at the time of delivery it should immediately be brought to the attention of the delivery driver and noted on the receiving report/delivery manifest. Customer will need to notify Customer Service of damages within three (3) days. Concealed damage or shortages are to be reported within ten (10) business days of receipt of merchandise or date of installation. Customer should keep a copy of the signed freight bill to facilitate CI’s corrective action.

Receipt of Incorrect Merchandise: Anytime receipt of incorrect merchandise is discovered it should be brought to the immediate attention of Customer Service. Prior to reporting receipt of incorrect merchandise, the customer should check delivery document against order initially submitted. CI will complete a Quality Control Report to request replacement with the correct merchandise.

Corrective Action Steps

CI shall expeditiously take the following steps, at no cost to the customer:

a) Investigate extent of the damage or incorrect goods.

b) Arrange for repair or replacement whether at customer's location or CI's repair shop.

c) Pick up merchandise to be repaired or replaced after freight inspection.

d) If repair is not practical, order replacement merchandise on an expedited manufacture and shipment basis (within 30 calendar days, otherwise the customer may choose to purchase elsewhere).

e) Prepare and submit all reports or claims to the delivery carrier as necessary.

f) Coordinate fully with the customer on steps being taken and time frame for problem resolution.

g) Once CI is notified of receipt of damaged or incorrect merchandise, CI shall notify customer within three (3) business days of a corrective action being taken and timeframe, which is mutually agreed upon.

RESTOCKING PROVISION

Any standard (non-food) item may be returned within five (5) business days after receipt, provided:

a) The item is new, and

b) The item is in unused condition.

c) The item must be in the original packaging, provided CI has not disposed of original packaging.

d) The item is not a modified or custom built item for the customer.

The customer will pay a restocking charge equal to 25% of the net purchase price (before taxes) when the above conditions are met. The customer will be responsible for return freight costs. However, if CI caused error, there will be no restocking charge.

WARRANTY

Washington State Department of Corrections, Division of Correctional Industries provides warranties for all of its products. The complete warranty statement for each item can be obtained in the CI catalog or by contacting customer service. CI warrants its products to be free from defective materials and construction. The terms of the warranty shall provide for repair and/or replacement free of charge to the customer (which include labor, materials, freight, and travel costs associated with repair and/or replacement).

Food Warranty: 100% guarantee of customer satisfaction as mutually agreed upon.

CI PERFORMANCE AS A CONTRACTOR

A. General Requirements: The OSP, in conjunction with contract users, monitors and maintains records of CI performance. Said performance shall be a factor in considering further extensions of this contract. Customers are provided with product/service performance report forms that are forwarded to CI and to the contract administrator.

B. Damages: Damages caused by a failure to perform the obligations of this contract will be assessed in accordance with Special Terms & Conditions paragraphs 11 (Order Cancellation & Change Orders) and 14 (Delivery).

ESTIMATED USAGE

$10,000,000/2year period. Estimated usage data as stated herein shall not bind the state (OSP and the customers) to the purchase of said quantities. Usage estimates are based strictly upon past historical data and may not reflect future requirements.

USAGE REPORTS

A quarterly Sales and Subcontractor Report shall be submitted in the format provided by the Office of State Procurement. You can get the report electronically at . Total purchases for each State Agency, University, Community and Technical Colleges must be shown separately. Total purchases for all political subdivisions and non-profit organizations may be summarized as one customer. Additionally, all purchases by the State of Oregon or other purchasers must be reported as an aggregate total. The report shall include the market price history for quarterly sales. Reports are due thirty (30) days after the end of the calendar quarter, i.e., April 30th, July 31st, October 31st and January 31st. CI shall submit reports of sales on this contract in the format provided (refer to Attachment entitled Usage Report). Such reports will be submitted on a quarterly basis. OSP may require additional reports to support management of this contract.

RETENTION OF RECORDS

CI shall retain all records relating to this contract for a period of five (5) years following the date of final payment or completion of any required audit, whichever is earlier. Any authorized representative of the state or federal government (where federal funds are involved) shall have access to and the right to examine, audit, excerpt, and transcribe all said records within a reasonable time.

ORDER OF PRECEDENCE

In the event of any inconsistency in this agreement, unless otherwise provided herein, the inconsistency shall be resolved by giving precedence in the following order:

a) Applicable Federal and State Statues and Regulations;

b) Special terms and conditions; and

c) Standard terms and conditions.

ALTERATIONS AND AMENDMENTS

CI and OSP may mutually amend this agreement. Such amendments shall not be binding unless they are in writing and signed by personnel authorized to bind CI and OSP.

MATERIALS, WORKMANSHIP, AND QUALITY CONTROL

CI shall be required to furnish all materials, equipment and/or services necessary to perform contractual requirements. Materials and workmanship in the construction of equipment for this contract shall conform to all codes, regulations and requirements for such equipment, specifications contained herein, and the normal uses for which intended. Materials shall be manufactured in accordance with the best commercial practices and standards for this type of equipment.

It is the policy of Correctional Industries to provide its customers with products and services that conform to their specifications and quality requirements. CI’s goal is to achieve a constant high standard of quality while maintaining economical operations. Adherence to the precepts of this directive will ensure a level of quality consistent with management’s objectives and CI’s mission.

OSHA AND WISHA REQUIREMENTS/SAFETY STANDARDS

CI agrees to comply with conditions of the Federal Occupational Safety and Health Acts of 1970 (OSHA), as may be amended, and, if it has a workplace within the state of Washington, the Washington Industrial Safety and Health Act of 1973 (WISHA), as may be amended, and the standards and regulations issued thereunder and certifies that all items furnished and purchased under this order will conform to and comply with said standards and regulations. CI further agrees to indemnify and hold harmless customer from all damages assessed against customer as a result of CI's failure to comply with the acts and standards thereunder and for the failure of the items furnished under this order to so comply. All products shall meet ANSI standards and applicable federal and state laws.

TAXES:

WAC 458-20-189 governs state sales tax from state agencies or institutions. Office of Code Reviser

1. PRICE ADJUSTMENTS

Contract prices shall remain unchanged for at least one hundred and eighty days after the effective date of the contract. Adjustments in contract pricing will be allowed on a pass-through basis only. CI shall provide adequate documentation to justify said increases. Documentation must be based on US published price indexes such as the Producers Price Index published by the US Department of Labor. Approved price adjustments shall remain unchanged for at least one hundred and eighty days thereafter. A minimum of sixty (60) days advance written notice to the OSP is required for adjustments. The OSP shall review the pricing adjustment request and respond to CI within fourteen (14) working days of submission of the request with the adequate documentation attached.

STANDARD TERMS & CONDITIONS

ENTIRE AGREEMENT

This document, including all addenda and subsequently issued change notices, comprises the entire agreement between the State of Washington and the Contractor and shall be governed by the laws of the State Of Washington incorporated herein by reference. The venue for legal action shall be the Superior Court for the State Of Washington, County of Thurston.

CONFLICT AND SEVERABILITY

Conflict. In the event of conflict between contract documents and applicable laws, codes, ordinances or regulations, the most stringent or legally binding requirement shall govern and be considered a part of this contract to afford the state maximum benefits.

Severability. Any provision of this document found to be prohibited by law shall be ineffective to the extent of such prohibition without invalidating the remainder of the document.

NONDISCRIMINATION AND AFFIRMATIVE ACTION

Acceptance of this contract binds the contractor to the terms and conditions of Section 601, Title VI, Civil Rights Act of 1964, as may be amended:

In that "No person in the United States shall, on the grounds of race, color, national origin, sex or age, be excluded from participation in, be denied the benefits of, or be subject to discrimination under any program or activity receiving Federal financial assistance." In addition, "No otherwise qualified handicapped individual in the United States shall, solely by reason of his handicap, be excluded from the participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance."

Unless exempted by Presidential Executive Order #11246, as may be amended or replaced and applicable regulations thereunder, Contractor shall not discriminate against any employee or applicant for employment.

WORKERS RIGHT TO KNOW

WAC 296-62-054 requires that all manufacturers/distributors of hazardous substances, including any of the items listed on this bid/quote/contract bid and subsequent award, must include with each delivery completed Material Safety Data Sheets (MSDS) for each hazardous material. Additionally, each container of hazardous material must be appropriately labeled with:

-The identity of the hazardous material,

-Appropriate hazardous warnings, and

-Name and address of the chemical manufacturer, importer or other responsible party.

Appropriate fines may be levied by Labor and Industries against employers for noncompliance and agencies may withhold payment pending receipt of a legible copy of the MSDS. It should be noted that OSHA Form 20 is not acceptable in lieu of this requirement unless it is modified to include appropriate information relative to "carcinogenic ingredients" and "routes of entry" of the product(s) in question.

GIFTS AND GRATUITIES

In accordance with RCW 43.19.1937 and 1939, it is unlawful for any person to directly or indirectly offer, give or accept gifts, gratuities, loans, trips, favors, special discounts, services, or anything of economic value in conjunction with state business practices.

RIGHTS AND REMEDIES

In the event of any claim for default or breach of contract, no provision in phis document or in the bidder's offer shall be construed, expressly or by implication, as a waiver by the state of any existing or future right and/or remedy available by law. Failure of the state to insist upon the strict performance of any term or condition of the contract or to exercise or delay the exercise of any right or remedy provided in the contract or by law, or the acceptance of (or payment for) materials, equipment or services, shall not release the Contractor from any responsibilities or obligations imposed by this contract or by law, and shall not be deemed a waiver of any right of the state to insist upon the strict performance of the contract.

SAVE HARMLESS

Contractor shall indemnify, defend and save harmless the Department of General Administration and all other contract users from any and all claims, demands, suits, actions, proceedings, losses, costs and damages of every kind and description, including any attorneys' fees and/or litigation expenses, which may be brought or made against or incurred by the Department of General Administration on account of losses of or damage to any property or for injuries to or death of any person, caused by, arising out of, or contributed to, in whole or in part, by reasons of any act, omission, professional error, fault, mistake or negligence of Contractor, Contractor's employees, agents, representatives or subcontractors, their employees, agents, representatives, and inmates in connection with or incidental to the performance of this agreement

PERSONAL LIABILITY

It is agreed by and between the parties hereto that in no event shall any official, officer, employee or agent of the State of Washington be in any way personally liable or responsible for any covenant or agreement herein contained whether expressed or implied, nor for any statement or representation made herein or in any connection with this agreement.

ADVERTISING

Contractor shall not advertise or publish information concerning this contract in any form or media without prior written consent from the Contract Administrator.

TAXES, FEES AND LICENSES

A. Taxes. Contractor shall pay for and maintain in current status any and all taxes which are necessary for contract performance. Unless otherwise indicated, the purchaser agrees to pay all State of Washington sales or use taxes. No charge by Contractor shall be made for federal excise taxes and the purchaser agrees to furnish Contractor with an exemption certificate, where appropriate. Sales tax shall not be included in bid pricing submitted.

B. Fees/Licenses. Prior to bid opening the Contractor shall pay for and maintain in a current status, any license fees, assessments, permit charges, etc., which are necessary for contract performance. It is the contractor's sole responsibility to monitor and determine any changes or the enactment of any subsequent regulations for said fees, assessments or charges and to immediately comply with said changes or regulations during the entire term of this contract.

LIENS, CLAIMS AND ENCUMBRANCES

All materials, equipment or services shall be free of all liens, claims, or encumbrances of any kind and if the state requests, a formal release of same shall be delivered to the state.

TITLE AND RISK OF LOSS

Regardless of FOB point, Contractor agrees to bear all risks of loss, injury or destruction of goods and materials ordered herein which occur prior to delivery and acceptance. Such loss, injury or destruction shall not release Contractor from any obligation hereunder.

PERFORMANCE

Acceptance by the purchaser of unsatisfactory performance with or without objection or reservation shall not waive the right to claim damage for breach nor constitute a waiver of requirements for satisfactory performance of any obligation remaining to be performed by Contractor.

IDENTIFICATION

All invoices, packing lists, packages, instruction manuals, correspondence, shipping notices, shipping containers and other written documents affecting this contract shall be identified by the applicable purchase order or field order number. Packing lists shall be enclosed with each shipment, indicating the contents therein.

CHARGES FOR HANDLING

No charges will be allowed for handling which includes but is not limited to packing, wrapping, bags, containers or reels, unless otherwise stated herein.

INVOICING

Invoicing: contractor shall provide one copy of invoice which shall reference the contract and field order or purchase order number. Invoices shall be properly annotated when necessary. Customers are also encouraged to remit payment electronically to reduce paper and postage expenses.

PAYMENT

Payment will be made by the purchasers indicated on ordering document. Any bid that requires payment in less than thirty (30) calendar days need not be considered. Prompt payment discount periods of thirty (30) calendar days or more will be considered in determining the apparent lowest responsible and responsive bid. Invoices will not be processed for payment nor will the period of cash discount commence until receipt of a properly completed invoice and until all invoiced items are received and satisfactory performance of Contractor has been attained. If an adjustment in payment is necessary due to damage or dispute, the cash discount period shall commence on the date final approval for payment is authorized. Under "Chapter 39.76 RCW", if purchaser fails to make timely payment(s), Contractor may invoice for 1% per month on the amount overdue or a minimum of $1.00. Payment will not be considered late if a check or warrant is mailed within the time specified. If no terms are specified, net 30 days will automatically apply. Payment(s) made in accordance with contract terms shall fully compensate the Contractor for all risk, loss, damages or expense of whatever nature and acceptance of payment shall constitute a waiver of all claims submitted by Contractor.

CHANGES

No alteration in any of the terms, conditions, or contractual requirements herein shall be effective without the written consent of the Contract Administrator as evidenced by issuance by the state of a current contract information.

ADDITIONS OR DELETIONS

The state reserves the right to add or delete items, authorized purchasers or locations as determined to be in the best interest of the state. Added items, agencies or locations will be related to those on contract and additions or deletions will not represent a significant increase or decrease in size or scope of the contract. Such additions or deletions will be by mutual agreement, will be at prices consistent with the original bid price margins, and will be evidenced by issuance of written current contract information from the Contract Administrator.

FORCE MAJEURE.

A. Definition: Except for payment of sums due, neither party shall be liable to the other or deemed in default under this contract if and to the extent that such party's performance of this contract is prevented by reason of force majeure. The term "force majeure" means an occurrence that is beyond the control of the party affected and could not have been avoided by exercising reasonable diligence. Force majeure shall include acts of God, war, riots, strikes, fire, floods, epidemics,or other similar occurrences.

B. Notification: If either party is delayed by force majeure, said party shall provide written notification within forty-eight (48) hours. The notification shall provide evidence of the force majeure to the satisfaction of the other party. Such delay shall cease as soon as practicable and written notification of same shall be provided. The time of completion shall be extended by contract modification for a period of time equal to the time that the results or effects of such delay prevented the delayed party from performing in accordance with this contract.

C. Rights Reserved: The state reserves the right to cancel the contract and/or purchase materials, equipment or services from the best available source during the time of force majeure, and Contractor shall have no recourse against the state.

D. Force Majeure shall include prison facility lock-downs or similar type of circumstances.

OFFICE OF STATE PROCUREMENT

PERFORMANCE REPORT

To OSP Customers:

Please take a moment to let us know how our services have measured up to your expectations on this contract. Please copy this form locally as needed and forward to the Office of State Procurement Purchasing Manager. For any comments marked unacceptable, please explain in remarks block.

|Procurement services provided: |Excellent |Good |Acceptable |Unacceptable |

|Timeliness of contract actions | | | | |

|Professionalism and courtesy of staff | | | | |

|Services provided met customer needs | | | | |

|Knowledge of procurement rules and regulations | | | | |

|Responsiveness/problem resolution | | | | |

|Timely and effective communications | | | | |

Comments:

Agency: Prepared by:

Title:

Contract No.: 10103, Correctional Industries Umbrella Contract Date:

Contract Title: Phone:

Send to:

Purchasing Manager

Office of State Procurement

PO Box 41017

Olympia, Washington 98504-1017

PRODUCT/SERVICE PERFORMANCE REPORT

Complete this form to report problems with suppliers or to report unsatisfactory product or services. You are also encouraged to report superior performance. Agency personnel should contact suppliers in an effort to resolve problems themselves prior to completion and submission of this report.

Contract number and title: 10103, Correctional Industries Umbrella Contract

Supplier’s name: Correctional Industries

Supplier’s representative:

|PRODUCT/SERVICE: |

| |Contract item quality higher than required | |Damaged goods delivered |

| |Contract item quality lower than required. | |Item delivered does not meet P.O./contract specifications |

| |Other: | | |

|SUPPLIER/CONTRACTOR PERFORMANCE: |

| |Late delivery | |Slow response to problems and problem resolution |

| |Incorrect invoice pricing. | |Superior performance |

| |Other: | | |

|CONTRACT PROVISIONS: |

| |Terms and conditions inadequate | |Additional items or services are required. |

| |Specifications need to be revised | |Minimum order too high. |

| |Other: | | |

Briefly describe situation:

|Agency Name: |Delivery Location: |

|Prepared By: |Phone Number: |Date: |Supervisor: |

| | | | |

Send To:

Connie Stacy Mike Pracna

STATE PROCUREMENT OFFICER Product Manager

OFFICE OF STATE PROCUREMENT Correction Industries

PO BOX 41017 P.O. Box 41115

OLYMPIA WA 98504-1017 OLYMPIA, WA 98504-1115

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