2.0 SCOPE OF WORK
2.1 Background
Agriculture Financial Services Corporation (AFSC) is a provincial Crown Corporation with a Board of Directors that provides farmers, agribusinesses and other small businesses, loans, crop insurance and farm income disaster assistance. AFSC has provided Alberta farmers with hail insurance for over 75 years, and has grown into a diverse corporation with several core business areas, including Agri-Insurance (multi-peril crop insurance), hail insurance, livestock price insurance, farm loans, commercial loans and farm income disaster assistance.
AFSC has approximately 140 Inspectors in the field that work across Alberta from April until February. They assess and manage loss and maintain integrity. The Corporate Office is located in Lacombe and there are 45 district offices throughout the province.
AFSC requires the supply and delivery of various hardware and safety items including PPE to various Branch office locations on an as-required basis. Delivery locations will be either directly to the Branch offices or dispersed at monthly, quarterly and annual meetings across the province.
The resulting initial contract may be for a period of up to 5 years, with the option to extend up to another five years subject to negotiations satisfactory to both parties. AFSC reserves the right to award to one or more pre-qualified Vendors. The successful Vendor(s) will be AFSC’s preferred Vendors for OHS safety equipment during the term of the contract.
2.2 Requirements
Pricing and Specifications (Appendix B)
The pricing sheets attached as Appendix “B” represents the items required by AFSC that are to be priced by the proponent. Quantities shown are estimates only and are not guaranteed. Approved equivalents may be considered and should be accompanied by descriptive literature.
This is not an all-inclusive list of requirements. Additional items will be negotiated and ordered as required during the term of the contract.
Vendors are to complete the costing pages of “Appendix B” in their entirety.
Prices quoted on Appendix “B” shall be based on net pricing and are to remain firm for a minimum period of one (1) year. Prices of the products can be reviewed annually with AFSC and adjusted if agreed to by both parties in writing. If there are price changes in any of the renewal years of the contract, the percentage price change must be submitted for approval with the renewal offer. All price changes are negotiable and must be presented in writing along with documented evidence of next cost increases or decreases as the case may be. Price changes shall become effective thirty (30) days following written notification from AFSC of the new accepted price, and must remain firm for a minimum twelve (12) month period.
The Vendor shall agree to make appropriate records (manufacturer’s invoices and manufacturer’s notices of product increase/decrease) available to AFSC to assist in determining if increases/decreases reflect a true cost to the Vendor upon request.
Provision of sample Goods for Evaluation
Shortlisted vendors will be asked to provide sample(s) of some or all of the item(s) identified in Appendix “B” for Evaluation purposes.
Catalogue/On-line Ordering System
AFSC requires the ability for orders to be submitted by the Branch office staff, or by the Inspectors in rural areas. Orders are to be shipped to the Branch office specified. Attached as Appendix “E” is the list of AFSC locations.
On-line ordering should be available, with training provided to AFSC as required.
Proposals are to include an example of a product catalogue or access to an on-line ordering system for the industrial hardware/safety supplies. Current published pricing is to be included. Each product will be listed in clear English, showing specifications.
The successful Vendor shall be responsible for conducting an adequate number of instructional seminars to introduce and implement their products and on-line ordering system. Area meetings are held each fall season in Lacombe, Lethbridge, and Leduc. Training may be required on an ad-hoc basis as well.
Purchase Orders and Ordering Instructions
The submission should clearly demonstrate your company’s ordering procedure. The submission should include any relevant order forms, invoices, monthly summary statements, backorder reports, credits and return forms.
The Vendor must follow AFSC instructions with respect to purchasing and invoicing procedures. Any order requests not complying with required procedures are not to be filled. Attached as Appendix “F” is a sample of what a monthly invoice needs to contain.
Management of Contract/Reporting
The successful Vendor must be able to provide a comprehensive usage report electronically. The report must be capable of sorting by product category, by quantity purchased, by branch office or inspector and by total dollars. The intent is to have a way for AFSC to analyze the scope of items they purchase with a goal of standardizing and thus reducing the variety of each type of item purchased. Submissions should describe how assistance can be given to departments/divisions on standardizing and relevant incentives/cost savings that can be achieved.
Delivery of Material
The Vendor shall be responsible for delivery of all materials ordered under contract to the designated locations within Alberta, unless otherwise advised. AFSC would prefer that shipping costs are included.
Goods shipped must be accompanied by a detailed packing slip, indicating all goods and quantities included in shipment as well as the order number.
Proposals should include the intended method or methods of delivery.
Quality
All material purchased under this contract shall meet or exceed commonly accepted industry standards as to quality of materials for commercial use and workmanship and shall be warranted as such.
All materials found to be inferior, in the opinion of AFSC, shall be returned to the Vendor for full purchase credit at no additional cost.
Should a product be unsatisfactory, the successful Vendor must provide an alternative product at the same cost. The AFSC Contract Monitor must approve any substitutions/alternatives.
Estimated Order Quantities
The quantities shown in Appendix “B” are estimates only and not an obligation for purchase. The respondent is expected to identify any quantity price break opportunities within their response.
Minimum Stock
The successful Vendor shall maintain adequate inventory to supply on demand any reasonable request within required service levels for the supply of safety equipment (PPE) required. The fill rate should be at least 95% with a 24-48 hour delivery window.
Trade Names
If trade names are used, this indicates the standard of quality. Offers may be made for substitution of any article, but substitutions must be clearly noted in proposal. Notations should include brand name of the substitute manufacturer plus any manufacturer specifications that can help determine the validity of a substitution request. It is the prerogative of AFSC to decide whether a substitute is equivalent. If no changes are indicated, it is assumed that the price is for the product specified and AFSC will not accept substitutes after the request for proposal closes.
Packaging
Orders will be separately packaged and labelled with the office name or Inspector’s name, ship-to location and order number.
Back Order/Substitution
When the Vendor is unable to fill a requirement from stock, all items available shall be shipped and unavailable items shall be entered on packing slip as back orders. The Vendor will then contact the AFSC Contract Monitor to advise them of the expected delivery date or to obtain agreement on a substitution. Where a substitution is acceptable, the Vendor shall correct the stock number and description on the order request to agree with that of the substituted material, indicate the authority for the substitution, delivery of material and consider the order complete.
Back orders written up by the Vendor shall reference the original purchase order/invoice number. In no case shall the total quantities shipped exceed the quantity indicated on the original purchase order without written authorization.
Back-ordered materials must be forwarded with any/all freight costs incurred being the responsibility of the shipper. Should back-ordered items go beyond two weeks from receipt of official purchase order the successful Vendor will contact the AFSC Contract Monitor to discuss the status of the order.
The Vendor is to notify AFSC in regard to product information availability or changes to product disposition, i.e. substitution. No item shall be substituted without prior written consent. It is the Vendor’s responsibility to notify the AFSC Contract Monitor of product no longer available or out of stock for an extended period.
Minimum Order - AFSC would prefer no minimum order quantities.
Receipt of Material - Upon receipt of material, the department/division, or delegate shall inspect the number of packages that have been delivered and sign for receipt of material subject to count and inspection.
When materials or quantities are incorrect or damaged, the department/division shall contact the Vendor to arrange for return of, additional or replacement of materials, as the case may be.
The Vendor’s accounting system shall provide for adjustments or credits resulting from the above.
While a receiving signature can be obtained in the appropriate receiving area, this must not be construed to be acceptance of the goods received, their quantity or quality. It is simply the receipt of a package or packages subject to count and inspection. AFSC will ascertain the correctness and/or acceptability of the goods.
Service - The Vendor will provide, as part of the proposal document, a list of key personnel in the Vendor organization that will service this contract.
All products under the provision of WHMIS must be delivered with a MSDS (Material Safety Data Sheet)
VENDORS ARE ASKED TO COMPLETE APPENDIX “C” IN RESPONSE TO THE REQUIREMENTS DETAILED ABOVE.
APPENDIX C - REQUIREMENTS
REQUIREMENT RESPONSE
On-line Ordering System
Provide, the cost (if any) for an on-line order placement program.
Is there any installation charges or on-going maintenance or training fees?
Do you have an option for Secured Encrypted Credit Card payment?
What are the minimum technical requirements or operating system required to support your system?
Is there ability for electronic “receiving”?
Is there the capability to change the “ship-to” address when submitting an order? Inspectors may have items shipped to their closest Branch office.
How does your system handle addition or removal of users? Is there ability to have controls/limitations for users, i.e. restrict quantities, etc.
Purchase Orders and Ordering Instructions
Please describe your company’s ordering procedures.
If order is submitted by credit card, is an order number required?
Invoicing – can you provide a monthly, detailed invoice of orders placed, including each order number, where the orders were shipped to, etc? (See Appendix F)
Reporting
Can usage reports be provided by item, product category, dollar value, volume, Department, etc.?
Can usage reports be provided monthly, quarterly, annually, as needed etc.?
Delivery of Material
Indicate delivery time frames after receipt of orders for stock and non-stock items.
Indicate normal business hours and time order must be received for next day delivery.
Indicate name of delivery agency or agencies. If delivery by “own vehicles”, describe that operation. Describe how you will deliver to rural areas.
Is there ability to “pick-up” orders at your location(s)? Please describe. Provide location(s) availability.
Are there additional costs for shipping? See Appendix E for office locations
Minimum Stock
Please describe your inventory practices.
Describe your warehouse facilities and addresses.
Packaging
Please describe how orders are packaged for delivery.
Back Orders/Substitutions
Describe how back-orders are handled.
Describe how substitutions are handled.
Minimum Order
Does your company have a minimum order requirement, and if so, what is the minimum dollar value?
Receipt of Material
Describe procedures for product returns or exchanges, and any restocking fees that could apply.
Describe procedures regarding credits and timing for receipt of a credit.
Service
Indicate if a dedicated sales representative would be assigned to AFSC. Please provide contact information.
Please provide a list of key personnel in your organization that would service AFSC’s contract.
2.3 Implementation
The Vendor must provide in the proposal, a detailed schedule for implementation, including but not limited to, start-up timelines, training schedule and strategy to make this a seamless transition for AFSC.
Please include a detailed recommendation or approach to sizing the clothing requirements. Because AFSC is geographically dispersed across Alberta, how do you propose to assist Inspectors or staff in determining sizes and correct fit for all safety clothing.
Branding - AFSC may require some products to fit the AFSC Brand. Vendor should provide a clear explanation on how their organization would fulfill this requirement.
2.4 Short listing
A shortlist of vendors may be established. Short listed vendors may be requested to make formal presentations regarding their Proposal. Key vendor management and technical personnel will be expected to participate in the presentations. This process is used to validate claims made in the Proposal and confirm the vendor’s ability to meet the requirements in the Competitive Bid. These presentations must be made at no cost to AFSC.
Please note: A Demo of your on-line ordering system including an interview or question period with your key account personnel will be required by short-listed Vendors.
2.5 Value Add – Maximum two (2) pages
The Vendor may describe two (2) significant value added services provided relative to the scope of work provided to other clients including the Vendor’s commitment for future support.
The Proposal should contain a description of value added services provided by the Vendor and the strategy that the Vendor would employ in proposing a similar type of service to AFSC. The Proposal must clearly outline if there are any additional cost for the value added services.
2.6 Assumptions
Vendor is expected to identify in detail any assumptions that have been made during the creation of their written Proposal to the scope identified.
