SPECIAL CONDITIONS - HIePRO



SCOPE

To provide cloud hosting and managed services for the Department of Labor and Industrial Relations’ SESA (State Employment Security Agency), E-CAS (Electronic Cost Accounting System), and Great Plains applications, which comprise Department’s cost allocation systems to properly report fiscal information as required by the U.S Department of Labor and other federal grant agencies. The SESA system, an unstructured COBOL program, was originally hosted on an IBM AS400. The E-CAS system is a windows-based front-end for SESA, hosted on a SQL server. Great Plains support will include user licenses. This project will include the networking and application maintenance and support of these systems.

CONTRACT ADMINISTRATOR

For purposes of this contract, Ms. Leila Shar, or her duly authorized representative is designated as the Contract Administrator (CA). She may be contacted at (808) 586-8888 or via email at leila.shar@.

CONTRACT PERIOD

Contractor shall enter into a contract for providing cloud hosting for a twenty (24) month period from November 1, 2019 to October 31, 2021. The contract may be extended for one (1) twenty-four (24) month period, subject to availability of funds and satisfactory contract performance.

CONTRACT EXECUTION

The Contractor receiving the award will be required to enter into a formal written contract.

The Contractor or the State may terminate the contract at any time upon sixty (60) days prior written notice.

METHOD OF AWARD

Award, if any, will be made to the responsive and responsible Contractor submitting the lowest Total Sum Bid Price on attached Offer Form. Award of contract shall be contingent upon availability of funds.

RESPONSIBILITY OF CONTRACTOR

The Contractor is advised if awarded a contract under this solicitation, Contractor will furnish proof of compliance with the requirements of §3-122-112, Hawaii Administrative Rules (HAR):

1. Chapter 237, tax clearance;

2. Chapter 383, unemployment insurance;

3. Chapter 386, workers’ compensation;

4. Chapter 392, temporary disability insurance;

5. Chapter 393, prepaid health care; and

6. One of the following:

a. Registered and incorporated or organized under the laws of the State

(hereinafter referred to as “Hawaii business”); or

b. Be registered to do business in the State. (hereinafter referred to as a

“compliant non-Hawaii business”).

Refer to

CONTRACTOR QUALIFICATIONS

In addition to meeting the legal and other requirements of this Request for Quote (RFQ), Contractor shall meet the following qualification requirements to be considered for award:

1. Possess five (5) years Enterprise Content Management platform experience.

2. Possess five (5) years program and services experience in the public sector.

3. Possess five (5) years’ experience implementing and supporting Enterprise

Content Management platforms.

Failure to qualify under this section shall result in rejection of bid.

HAWAII COMPLIANCE EXPRESS (HCE)

The HCE is an electronic system that allows vendors/contractors/service providers doing business with the State of Hawaii to quickly and easily demonstrate compliance with applicable laws. It is an online system that replaces the necessity of obtaining paper compliance certificates from the Department of Taxation, Federal Internal Revenue Service, Department of Labor and Industrial Relations, and the Department of Commerce and Consumer Affairs.

Vendors/contractors/service providers should register with HCE prior to submitting an offer at . The “Certificate of Vendor Compliance” or approved replacement is required prior to award and for final payment.

TIMELY REGISTRATION ON HCE

Vendors/contractors/service providers are advised to register with HCE as soon as possible. Vendors/contractors/service providers who are not compliant on HCE at the time of award will not receive the award.

LIABILITY INSURANCE

The Contractor shall maintain, in full force and effect throughout the term of the contract, liability insurance to protect the Contractor and his subcontractors, if any, from claims for damages for personal injury an accidental death that may arise from operations under this contract, whether such operations be by him/herself or by a subcontractor or anyone directly or indirectly employed by ether of them. If any subcontractor is involved in the performance of the contract, the insurance policy or policies shall name the subcontractor as additional insured.

The following minimum insurance coverage(s) and limit(s) shall be provided by the Contractor, including its subcontractors(s) where appropriate.

Coverage Limits

Commercial General Liability $2,000,000 combined single

(occurrence form) limit per occurrence for bodily

injury and property damage

Each insurance policy required by this contract, including a subcontractor’s policy, shall contain the following clauses:

1. “This insurance shall not be canceled, limited in scope of coverage or non-renewed

until after 30 days written notice has been given to the State of Hawaii,

Department of Labor and Industrial Relations, Administrative Office, Princess Ruth Keelikolani Building, 830 Punchbowl Street, Room 309, Honolulu, Hawaii

96813.”

2. “The State of Hawaii is added as an additional insured as respect to operations

Performed for the State of Hawaii.”

3. “It is agreed that any insurance maintained by the State of Hawaii will apply in

excess of, and not contribute with, insurance provided by this policy.”

The minimum insurance required shall be in full compliance with the Hawaii Insurance Code throughout the entire term of the contract, including supplemental agreements.

Upon the Contractor’s execution of the contract, the Contractor agrees to deposit with the State of Hawaii certificate(s) of insurance necessary to satisfy the State that the insurance provisions of the contract have been complied with and to keep such insurance in effect and the certificate(s) therefore on deposit with the State during the entire term of the contract, including those of its subcontractor(s), where appropriate. Upon request by the State, the Contractor shall be responsible for furnishing a copy of the policy or policies.

Failure of the Contractor to provide and keep in force such insurance shall be regarded as material default under the contract, entitling the State to exercise any or all of the remedies provided in the contract for a default of the Contractor.

The procuring of such required insurance shall not be construed to limit the Contractor’s liability hereunder, nor to fulfill the indemnification provisions and requirements of the contract. Notwithstanding said policy or policies of insurance, the Contractor shall be obliged for the full and total amount of any damage, injury, or loss caused by negligence or neglect connected with the contract.

PERFORMANCE OF CONTRACT

It is expressly understood and agreed that the Contractor is an independent company with the authority to control and direct the performance and details of the work and services described herein. The DLIR’S CA, however, reserves the right to evaluate the overall work of the Contractor throughout the contract period and requires the Contractor to implement suggestions and/or recommendations as a result of the DLIR’s review and evaluation of the Contractor’s submittals.

The Contractor shall be available during the DLIR’S normal office hours to discuss the progress of the work being performed. All questions raised during the course of the work shall be promptly addressed to the CA.

RE-EXECUTION OF WORK

The Contractor shall re-execute any work which fails to conform to the requirements of the contract and shall immediately remedy any defects due to faulty workmanship by the Contractor.

REMOVAL OF CONTRACTOR’S EMPLOYEES

The Contractor agrees to remove any of its employees from services rendered and to be rendered to the DLIR, upon written request by the CA.

INVOICING AND PAYMENT

On a monthly basis, the Contractor shall forward an original invoice with reference to contract number, and itemization of list of dates, locations and hours of services rendered as appropriate for the previous month to:

Department of Labor and Industrial Relations

Administrative Services Office

Princess Ruth Keelikolani Building

830 Punchbowl Street, Room 309

Honolulu, Hawaii 96813

Section 103-10, HRS provides that the State shall have thirty (30) calendar days after receipt of the invoice or satisfactory completion of the contract to make payment. For this reason, the DLIR may reject any offer submitted with a condition requiring payment within a shorter period. Further, the DLIR may reject any offer with a condition requiring interest payment greater than that allowed by Section 103-10, HRS, as amended. The State will not recognize any requirement established by the Contractor and communicated to the State after the award of the contract that requires payment within, a shorter period or interest payment not in conformance with statute.

A Tax Clearance Certificate, current within a two (2) month period, is required as a prerequisite to final payment on this contract. In addition, an original “Certification of Compliance for Final Payment: (SPO Form-22) will be required for final payment. A copy of the Form is available at:



LIQUIDATED DAMAGES

Refer to Section 9 of the General Conditions. Liquidated damages are fixed at the sum of FIVE HUNDRED DOLLARS ($500.00) for every calendar day the CONTRACTOR fails to perform in whole or in part, any of CONTRACTOR’S obligations specified hereunder.

RIGHTS AND REMEDIES FOR DEFAULT

In the event the Contractor fails, refuses, or neglects to perform the services in accordance with the requirements of these Special Conditions, the Specifications, and the General Conditions, in addition to the recourse stated herein, the DLIR reserves the right to purchase in the open market a corresponding quantity of the services specified herein and to deduct from any moneys due or that may become due to the Contractor, the difference between the bid price quoted in the contract and the actual cost to the DLIR. In case any moneys due to the Contractor are insufficient for said purpose, the Contractor shall pay the difference upon demand by the DLIR. The DLIR may utilize any other remedies as provided by law.

ADDITIONS AND EXCEPTION TO THE GENERAL CONDITIONS

Approval: Any agreement from this offer is subject to the approval of the Office of the Attorney General as to form, and to all further approvals, including the approval of the Governor, required by statute, regulations, rule, order, or other directive.

EVALUATION AND SELECTION PROCESS

In addition to price, Contractor will be evaluated and analyzed based on the following criteria:

• Office located in Honolulu, HI

• Experience and depth of organization

• Demonstrated successful experience in implementing services similar to those requested in this RFP

• Ability to meet all requested specifications

• Provision of other value added services

• References

• The proposal’s completeness, thoroughness, accuracy, compliance with instructions, timeliness, and the organization and conciseness of the text materials

• Any other criteria that DLIR in its reasonable discretion deems applicable to the evaluation of proposals

FURNISH CLOUD HOSTING SERVICES

FOR THE DEPARTMENT OF LABOR AND INDUSTRIAL RELATIONS (OFFER FORM)

Solicitation Number: ____________________________

The undersigned has carefully read and understands the terms and conditions specified in the Specifications, Special Conditions, and General Conditions, (Form AG008) (Rev. 4/15/2009) by reference made a part hereof and available upon request, and hereby submits the following offer form to perform the work specified herein, all in accordance with the true intent and meaning thereof.

The undersigned further understands and agrees that by submitting this offer, 1) he/she is declaring his/her offer is not in violation of Chapter 84, Hawaii Revised Statutes, concerning prohibited State contracts, and 2) he/she is certifying that the price(s) submitted was (were) independently arrived at without collusion.

The undersign represents: (Check one only)

□ A Hawaii business incorporated or organized under the laws of the State of Hawaii, or

□ A Compliant Non-Hawaii business not incorporated or organized under the laws of the State of Hawaii, but registered at the State of Hawaii Department of Commerce and Consumer Affairs State of Incorporation:

____________________________________________________

Contractor is:

□ Sole Proprietor □ Partnership □ Corporation □ Joint Venture □ Other ___________

Federal I.D. No.: _________________ Hawaii General Excise Tax License I.D. No.:______________

Payment address: (other that street address): Business address: (street address)

_______________________________________ _____________________________________

_______________________________________ _____________________________________

Respectfully submitted:

Date: ____________________________________ __________________________________

Authorized Signature

Telephone No.: ___________________________ _____________________________________

Name and Title (Type or Print)

Fax No.: _________________________________

E-Mail Address: ___________________________ _____________________________________

*Exact Legal Name of Company (contractor)

*If Contractor is a “dba” or a “division” of a corporation, furnish the exact legal name of the corporation under which the awarded contract will be executed: __________________________________________________________________________________

The following bid is hereby submitted:

|Item |Description |Estimated |Unit |Total |

| | |Quantity |Bid Price |Bid Price |

| |Hosting Services: systems have been modified to operate in a cloud | | | |

|1 |host. (SESA from IBM AS400, E-CAS from SQL server). Service to | |$ |$ |

| |include necessary licenses. | | | |

| |Managed Services: to include backup and disaster recovery systems | | | |

| |and services, patch management systems and services, 24x7 system | |$ |$ |

|2 |monitoring | | | |

| |Application Support: Support continued operation of SESA, E-CAS and | | | |

|3 |Great Plains. (DLIR does not hold license for Great Plains.) | | | |

| | | | | |

| |Subtotal | | | |

| | | | | |

| |Tax | | | |

| | | | | |

| |TOTAL SUM BID PRICE (2 years) | |$ |$ |

Contractor shall also provide the following information:

Insurance Coverage: Carrier: Policy No. Agent

Commercial General Liability;_______________________________________________

Worker’s Compensation:____________________________________________________

Temporary Disability Insurance:______________________________________________

Prepaid Health Care:_______________________________________________________

Unemployment Insurance State of Hawaii, Dept. of Labor No.: ____________________

Contractor shall provide at least two references to which similar services have been provided. The DLIR reserves the right to contact this reference to inquire about Contractor’s service and responsibility:

Business Name: ________________________________________________________________

Address: _________________________________________________________________

Telephone No.: ________________________________________________________________

Contact Person: ________________________________________________________________

In addition to meeting the legal and other requirements of this Request for Quote (RFQ), Contractor shall meet these Contractor qualification requirements to be considered for award (Reference Special Conditions, “Contractor Qualifications”):

1. At the time of bid submittal, Contractor must be registered with the Hawaii State Department of Commerce and Consumer Affairs (DCCA) and in good standing. Contractor must submit a copy of this license with the bid.

2. At the time of bid submittal, Contractor must provide three customer references that have been provided cloud hosting services for a minimum of eighteen (18) consecutive months. Contractor must submit evidence of compliance under this requirement.

3. At the time of bid submittal, Contractor shall have a permanent office from where they conduct business and will be accessible to telephone calls for complaints or requests that need immediate attention. An answering service is not acceptable. The Contractor shall also have representative(s) residing in the State of Hawaii who can be contacted on all matters associated with the executed contract.

Contractor shall provide the following information regarding its Hawaii-based operation:

Company Name: ____________________________________________________

Address: ____________________________________________________

Telephone No.: ____________________________________________________

Fax No.: ____________________________________________________

Contact Person: _____________________________________________________

Contractor: _________________________________________________________

Signature: __________________________________________________________

Title: ______________________________________________________________

Date: ______________________________________

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