REQUEST FOR PROPOSAL DPC.BEVERAGE.1007

BEVERAGE AND BEVERAGE VENDING SERVICES

RELEASE DATE: October 14, 2019 DUE DATE: November 9, 2019 by 3:00 pm (PST)

Procurement Contact: David Melendez Phone: 619-543-7059 Email: [email protected]

Page 1 of 22 SECTION 1: SOLICITATION OVERVIEW SOLICITATION SUMMARY UC Health, acting through its Nutrition Services Department, invites qualified suppliers to submit proposal responsive to the Health Systems requirements for Dispenser/Fountain Beverage, Beverage Vending and Bottled Beverages, including Bottled Fresh Juices and Juice Smoothies/Protein Type Smoothies/Drinks. As such, UC San Diego Health seeks a strategic partner that will provide excellent service and superior product, will increase net revenues through lowering and controlling cost, will offer cash and rebate incentives, and will strategically target markets. This strategic partner will build awareness of its product line, will engage UC San Diego Health in its environmental goals, and promote new programs, through forums and/or other innovative, and ongoing, methods of communication. The selected supplier (hereinafter “Successful Bidder and/or Supplier”) should consider the above listed, key objectives when responding to this Request for proposal. It is the intent of UC San Diego Health to select one Supplier to provide these product lines and associated equipment for the Medical Center, and the Hillcrest Medical Center. All volume provided in this solicitation is based on historic usage and is provided as a courtesy; no volume/spend is guaranteed. This information/volume is provided on EXHIBIT 2 – Historical Usage. This solicitation will be bid as two separate Modules. They are as follows: • MODULE #1 - Fountain, Containerized/Direct Delivery, & Financial Incentives • MODULE #2 - Fresh & Healthy Juices, Juice Smoothies/’Protein Style’ Smoothie/Drinks Each Module may be awarded separately or together, as may be in the best interest of the UC San Diego Health, however, a Supplier may not bid on Module #2 unless they have also entered a bid for Module #1. Suppliers are to quote each Module, and specify the financial incentives if awarded a Module separately and if awarded together.

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SECTION 2: Communication PROCUREMENT OFFICER The Senior Buyer below is responsible for the conduct of this procurement. Name: David Melendez Title: Procurement Analyst E-mail: [email protected] Phone #: 619-543-7059 All communications, including any requests for clarification, concerning this Request for Proposal (“RFP”) must be submitted via the Q&A section of this RFP within CalUsource, the University of Public Bid Site. Bidders shall not contact any other employees of UC San Diego Health. INQUIRES, CLARIFICATIONS, REQUESTS FOR INFORMATION Bidders shall submit All INQUIRES, CLARIFICATIONS, and REQUESTS FOR INFORMATION through CalUsource. Bidders are expected to promptly review the Request for Proposal (RFP) document, including all of the attachments, exhibits, and addendum. If discrepancies, inconsistencies, or omissions are found, the Bidder shall immediately notify the Procurement Officer. If the Bidder has questions or requires clarification of the scope of work, the Health System’s intent, or any aspect of this procurement, they shall immediately notify the Procurement Officer. All questions, inquiries, clarifications, must be emailed by the due date identified in the Project Schedule. The Procurement Officer may respond to any such requests by issuing written addenda. Verbal clarifications shall not be binding. Bidders should not rely upon any statements made by any person other than the Procurement Officer. ADDENDA AND COMMUNICATION UC San Diego Health will communicate through CalUsource. UC San Diego Health will make changes, additions, or deletions to the RFP in the form of amendments electronically sent via the UC Public Bid Site. All addenda issued prior to the Proposal Due Date will become part of this RFP and will be deemed to have been considered by the Bidder in its proposal. UC will not be responsible for failure of any prospective Supplier to receive such amendments. It is Supplier’s responsibility to read the entire RFP document, including any attachments, references and amendments, and to comply with all requirements listed herein.

Page 3 of 22 SECTION 3: SECTION 2 – RFP SCHEDULE

Post RFP on CalUsource 10/14/2019

Site Visits at 9:00 am and at 11:00 am Week of 10/21/2019

Deadline to submit questions 10/23/2019 by 3:00 pm (PST)

Questions Answered 10/31/2019 by 3:00 pm (PST)

RFP Response Submission Deadline 11/09/2019 by 3:00 pm (PST)

Bidder Interviews for the top two Bidders Week of 11/11/2019 (estimated)

Evaluations Completed 11/18/2019

Clarification and Contract negotiations 11/18/2019 through 11/25/2019

Anticipated Award Date Week of 11/25/2019

UC San Diego Health reserves the right to modify this schedule. POST-PROPOSAL INTERVIEW During the period beginning November 11th and ending on November 15th, 2019, UC San Diego Health will interview the top two Bidders. These interviews will last approximately 40 minutes and include the Engagement Manager, the Project Manager and the named team members, as identified in the Bidder’s Proposal. No substitutes, proxies, phone interviews, or electronic interviews will be allowed. No other individuals (from the Bidder’s organization) will be allowed to sit in or participate during the interview session, without the prior written approval of UC San Diego Health. During the interview, the Interviewees may bring notes and handouts but may not refer to any of the proposed cost information. Notes:  UC San Diego Health may request additional information prior to interviews.  Special circumstances may be considered at the sole discretion of UC San Diego Health.

Page 4 of 22 SECTION 4: CURRENT CONDITIONS

4.1 UC SAN DIEGO HEALTH OVERVIEW UC San Diego Health is one of five academic medical centers within the 10-Center University of California system. Collectively known as UC Health, these medical centers comprise the fourth largest health care delivery system in California and train nearly 50 percent of the state’s medical students and medical residents. As part of a public trust organization, UC Health serves as a safety net for individuals in need. Nearly 60 percent of UC patients are covered by Medicare, Medi-Cal or lack health insurance. To fulfill our mission, UC San Diego Health currently maintains a two-Center strategy, integrating research, teaching and clinical care at locations in Hillcrest and La Jolla. Each medical complex supports acute in-patient care and a spectrum of outpatient primary and specialty medical and surgical services, including ambulatory and emergency patient care. Our three operate under one license with a current combined capacity of 808 beds: UC San Diego Medical Center in Hillcrest (390 beds), (364 beds) and Sulpizio Cardiovascular Center (54 beds). UC San Diego Health Medical Center – Hillcrest The Hillcrest Medical Center, established in 1966, currently serves as a core clinical teaching site for UC San Diego School of and the focal point for community service programs. It houses several specialty care centers that allow the urban Center to serve as a major tertiary and quaternary referral center for San Diego, Riverside and Imperial counties. These care centers include the area’s only Regional Burn Center, a Comprehensive Stroke Center, and one of only two Level I Trauma Centers in the county. The Center is also home to the Owen Clinic, among the nation’s top HIV care programs. UC San Diego Health Medical Center– La Jolla The La Jolla Medical Center, located on the eastern portion of the main University of California San Diego Center, is home to Jacobs Medical Center, which opened in 2016, and , the primary site for outpatient care and the region’s only National Cancer Institute-designed Comprehensive Cancer Care Center, with nearly 350 medical and radiation oncologists, surgeons and researchers. The La Jolla Center also includes Shiley Eye Institute, a multi-specialty vision center with the region’s only facility dedicated to children, as well as Sulpizio Cardiovascular Center, the region’s first comprehensive cardiovascular center and the global leader in pulmonary thromboendarterectomy (PTE), an operation for removing blood clots from the pulmonary arteries to treat chronic pulmonary hypertension. The PTE operation was first performed at UC San Diego Health and is now systematically employed at select health care centers around the world. Ambulatory care is provided at both Centers, as well as in the surrounding communities of Chula Vista, Encinitas, Kearny Mesa, Scripps Ranch and Vista, where we maintain clinics and service locations. Our physicians also provide care to patients at Rady Children’s San Diego and Veteran Affairs San Diego Healthcare System and we maintain partnerships with other medical providers to offer services as diverse as proton therapy for cancer to at-home hospice care. These combined sites and partnerships enable UC San Diego Health to offer highly specialized services and a continuum of care that can heal and comfort our patients. 4.2 SERVICE OVERVIEW PROGRAM UC San Diego Health enjoys an exclusive agreement in which its current Supplier provides the product and equipment necessary to support a cafeteria, coffee carts, multiple banks of vending machines and Gift Shops at each Medical Center. Please be mindful that vending machines are excluded from the scope of services for this RFP. SERVICE LOCATIONS UC San Diego Health combines all usage between the Nutrition Service Department and Gift Shops and considers both to be one (1) department with separate sites. The separate sites are:

Page 5 of 22 Location:

UCSD HOSPITAL THORNTON GIFT SHOP, 9300 CAMPUS POINT DRIVE, LA JOLLA~CA~92037 UCSD HOSPITAL HILLCREST GIFT SHOP, 200 W ARBOR DR, SAN DIEGO~CA~92103 UCSD MEDICAL CENTER HILLCREST BL, 200 W ARBOR DR, SAN DIEGO~CA~92103 UCSD MEDICAL CENTER THORNTON, 9300 CAMPUS POINT DRIVE, LA JOLLA~CA~92037

PRODUCT DEMAND: BAG-IN-BOX BEVERAGES: This section presents the total demand for Bag-In-Box beverages during a 12-month period, having ended on June 30, 2018: Volume In Raw Package Flavor Cases BIB 5G T Dr Pepper 295 BIB 5G Dr Pepper Dt 215 BIB 1G/3.79L Flavorworks Che 16 BIB 1G/3.79L Flavorworks Lmn 13 BIB 1G/3.79L Flavorworks Stw 18 BIB 1G/3.79L Flavorworks Van 14 BIB 3G Gatorade Lemon Lime 108 BIB 5G Lipton Brisk GT NoCal Pch 60 BIB 5G Lipton Brisk Rasp 150 BIB 5G Lipton Brisk Tea Lmnd 45 BIB 3G Lipton Iced Tea Swt 117 BIB 3G Lipton Iced Tea Unswt NL 255 BIB 5G Mt Dew 5 BIB 5G Pepsi 490 BIB 5G Pepsi Dt 295 BIB 5G Sierra Mist LL RS 195 BIB 3G SoBe Life Wtr YB Pom 0c 117 BIB 5G Tropicana Lmnde 340

CONTAINERIZED BEVERAGES: This section presents the total demand for containerized beverages for the 12-month period ended on June 30, 2018: Volume In Raw Package Flavor Cases 1 Liter Aquafina 1,788 1.5 Liter Aquafina 35 16.9oz/500ml Aquafina 5 20oz/591ml Aquafina 2,066 Aquafina Spk Unsw Can 12oz/355ml MgoPnap 120 Can 12P Bubly Apple 32 Can 12P Bubly Cherry 43 20oz/591ml Bubly Grapefruit 3 Can 12P Bubly Grapefruit 83 Can 12P Bubly Lemon 64 20oz/591ml Bubly Lime 5 Can 12P Bubly Lime 31 Can 12P Bubly Mango 34 Can 12P Bubly Orange 63 20oz/591ml Bubly Strawberry 4

Page 6 of 22 Can 12P Bubly Strawberry 33 2 Liter Crush Orange 40 20oz/591ml Crush Orange 163 Can 12P Crush Orange 4 Can 7.5oz/Can 221ml Crush Orange 2 15.2oz/450ml Dole Apple 529 15.2oz/450ml Dole Orange 100 21 15.2oz/450ml Dole Straw Kiwi 281 Can 8oz/Can 237ml Dt Sierra Mist LL ZS 1,217 13.7oz Frappuccino Caramel 89 9.5oz/281ml Frappuccino Coffee 143 13.7oz T Frappuccino Dulce De Lech 31 13.7oz Frappuccino Mocha 153 9.5oz/281ml Frappuccino Mocha 89 9.5oz/281ml Frappuccino Mocha Lite 23 13.7oz Frappuccino Smores 8 9.5oz/281ml Frappuccino Vanilla 174 9.5oz/281ml Frappuccino Vanilla Lt 20 20oz/591ml Gatorade Blue Raz 307 20oz/591ml Gatorade Fierce Grape 110 20oz/591ml Gatorade Flow Blkbry WV 3 12oz/355ml Gatorade Fruit Punch 79 20oz/591ml Gatorade Fruit Punch 503 20oz/591ml Gatorade G2 Clr Blue 3 20oz/591ml Gatorade G2 Grape 93 20oz/591ml Gatorade Glcr Che 23 12oz/355ml Gatorade Glcr Frz 78 20oz/591ml Gatorade Glcr Frz 264 12oz/355ml Gatorade Lemon Lime 72 20oz/591ml Gatorade Lemon Lime 392 20oz/591ml Gatorade Lme Cucmbr 24 12oz/355ml Gatorade Orange 68 20oz/591ml Gatorade Orange 304 2.8oz/83ml Gatorade Pbar Van Alm 71 2.0oz/59ml Gatorade PRM PB Almnd Btr 9 Gatorade PRM PB CChp 2.0oz/59ml CkDg 9 2.1oz/62ml Gatorade PRM PB Choc Chp 24 2.1oz/62ml Gatorade PRM PB OatRa 24 25.3oz/750ml Gatorade Propel Elec Wtr 47 20oz/591ml Gatorade Propel Wtrmln 26 20oz/591ml Gatorade Propel Zro Bry 142 20oz/591ml Gatorade Propel Zro Grape 108 20oz/591ml Gatorade Propel Zro KwStw 136 2.8oz/83ml Gatorade Rcvr PB Choc Chp 77 2.8oz/83ml Gatorade Rcvr PB ChocCrml 148 Can 12oz/355ml IZZE FSN Lemon Lime 24 Can 12oz/355ml IZZE FSN Orange Mango 41 Can 12oz/355ml IZZE FSN Strawberry Melon 26 Lemon Lemon Spk Bbry Can 12oz/355ml Lmnd 65 Can 12oz/355ml Lemon Lemon Spk Lmnd 63

Page 7 of 22 Can 12oz/355ml Lemon Lemon Spk Pch Lmnd 58 20oz/591ml Lipton Brisk Lmnd 105 20oz/591ml Lipton Brisk SWL 88 20oz/591ml Lipton Iced GrnTea Ctr Dt 99 20oz/591ml Lipton Iced GrnTea w/Ctrs 195 20oz/591ml Lipton Iced Tea Lemon 104 20oz/591ml Lipton Iced Tea Peach 223 20oz/591ml Lipton Splash Berry 14 20oz/591ml Lipton Splash Tropical 12 14oz/414ml Lpt PureLeaf Blk Strwbry 18 14oz/414ml Lpt PureLeaf Blk Tea Ap G 258 14oz/414ml Lpt PureLeaf Blk Tea Lm H 242 14oz/414ml Lpt PureLeaf Blk Val Org 182 18.5oz /547ML Lpt PureLeaf Mint 134 18.5oz /547ML Lpt PureLeaf NTS GTHny 18 18.5oz /547ML Lpt PureLeaf Rasp 194 18.5oz /547ML Lpt PureLeaf Rasp 360 18.5oz /547ML Lpt PureLeaf SNL 479 14oz/414ml Lpt PureLeaf Spiced Chai 19 18.5oz /547ML Lpt PureLeaf Super Sweet 19 18.5oz /547ML Lpt PureLeaf SWL 559 14oz/414ml Lpt PureLeaf THC Blkbry S 237 18.5oz /547ML Lpt PureLeaf UGT 335 18.5oz /547ML Lpt PureLeaf UNL 624 18.5oz /547ML Lpt PureLeaf UWL 247 20oz/591ml Mt Dew 338 Can 6P Mt Dew 29 20oz/591ml Mt Dew Baja Blst 15 Can 16oz/473ml Mt Dew Blk Lbl 1 20oz/591ml Mt Dew Dt 319 Can 12P Mt Dew Dt 2 Can 16oz/473ml Mt Dew Green Label 1 20oz/591ml Mt Dew Ice 31 Can 16oz/473ml Mt Dew Kckstrt Blk Che 47 Can 16oz/473ml Mt Dew Kckstrt Ft Pnch 71 Can 12oz/355ml Mt Dew Kckstrt Hb PMO 194 Can 12oz/355ml Mt Dew Kckstrt HB Raz Cit 185 Can 16oz/473ml Mt Dew Kckstrt Mango Lime 83 Can 16oz/473ml Mt Dew Kckstrt Mid Grp 54 Can 16oz/473ml Mt Dew Kckstrt Org Cit 26 Can 16oz/473ml Mt Dew Spkd Lmnd 1 Can 16oz/473ml Mt Dew Spkd Raz Lmnd 1 2 Liter Mug 32 20oz/591ml Mug 53 Can 12P Mug 22 12oz/355ml Muscle Milk 100 Sf Gf Ch 60 14oz/414ml Muscle Milk Banana Creme 5 14oz/414ml Muscle Milk Chocolate 108 14oz/414ml Muscle Milk Int Van 39 14oz/414ml Muscle Milk Ko Choc 65 14oz/414ml Muscle Milk P40 GO BAN 19 15.8oz/467ml Muscle Milk Smoothie Blue 35 15.8oz/467ml Muscle Milk Smoothie Str 47

Page 8 of 22 14oz/414ml Muscle Milk Straw Creme 14 14oz/414ml Muscle Milk Vanilla Creme 80 15.2oz/450ml Ocean Spray Apple 128 16.9oz/500ml Ocean Spray Cran 1 15.2oz/450ml Ocean Spray CranApple 135 15.2oz/450ml Ocean Spray CranCktl 443 15.2oz/450ml Ocean Spray CranGrape 289 15.2oz/450ml Ocean Spray Orange 171 15.2oz/450ml Ocean Spray RubyRedGft 237 16.9oz/500ml One Cnut Wtr 314 16.9oz/500ml One Splash Mango 76 16.9oz/500ml One Splash Pnapl 65 20oz/591ml Pepsi 1091 Can 6P Pepsi 279 Can 8oz/Can 237ml Pepsi 811 2 Liter Pepsi CF Dt 60 20oz/591ml Pepsi Crystal 1 20oz/591ml Pepsi Dt 1017 Can 6P Pepsi Dt 315 Can 7.5oz/Can 221ml Pepsi Dt 382 Can 8oz/Can 237ml Pepsi Dt 120 20oz/591ml Pepsi Real Sugar 119 20oz/591ml Pepsi WildCherry 283 20oz/591ml Pepsi WildCherry Dt 292 20oz/591ml Pepsi Zero Sugar 243 Can 12P Pepsi Zero Sugar 3 1 Liter Prm LifeWTR 709 20oz/591ml Prm LifeWTR 81 23.7oz/700ml Prm LifeWTR 620 Can 16oz/473ml Rockstar Energy 183 Can 15oz/444ml Rockstar Org Isld Ft 17 Can 16oz/473ml Rockstar Pre 0 Pnch 112 Can 16oz/473ml Rockstar Pre 0 SI 101 Can 16oz/473ml Rockstar Punched 33 Can 16oz/473ml Rockstar PureZro Wtrmln 62 Can 16oz/473ml Rockstar Recovery 11 Can 16oz/473ml Rockstar Sugar Free 147 Can 16oz/473ml Rockstar Zero Carb 120 20oz/591ml Schweppes GAle 116 Can 12P Schweppes GAle 10 Can 7.5oz/Can 221ml Schweppes GAle 785 20oz/591ml Schweppes Spkl 26 20oz/591ml Schweppes Spkl Blk Che 133 20oz/591ml Schweppes Spkl LLime 138 2 Liter Sierra Mist LL RS 22 20oz/591ml Sierra Mist LL RS 121 Can 12P Sierra Mist LL RS 43 Can 7.5oz/Can 221ml Sierra Mist LL RS 637 Can 8oz/Can 237ml Sierra Mist LL RS 673 11oz/325ml Starbucks CB CCO Hny W/Cr 215

Page 9 of 22 11oz/325ml Starbucks Cold Brew BlkUn 234 11oz/325ml Starbucks Cold Brew Sweet 19 11oz/325ml Starbucks Cold Brew Vanil 35 Can 6.5oz Starbucks Dbl Shot 236 Can 6.5oz Starbucks Dbl Shot Light 268 Can 15oz/444ml Starbucks DS Enrgy Coffee 38 Can 15oz/444ml Starbucks DS Enrgy Mocha 89 Can 15oz/444ml Starbucks DS Enrgy Vanlla 93 Can 15oz/444ml Starbucks DS Enrgy WtChoc 7 Can 6.5oz Starbucks DS EXP Cubano 95 Can 11oz Starbucks DS Prtn DKChoc 107 Can 11oz Starbucks DS Prtn Van Bn 113 Can 6.5oz Starbucks DS Slt Crml Crm 158 10oz/296ml Starbucks DS Smth DkChoc 4 10oz/296ml Starbucks DS Smth Van Hny 4 11oz/325ml Starbucks Iced Cof BlkUns 238 14oz/414ml Starbucks IEC Pmpkin Spc 2 14oz/414ml Starbucks IEC Slt Crml Mc 73 Can 12oz/355ml Starbucks RF Black Cherry 75 Can 12oz/355ml Starbucks RF Peach Passio 88 Can 12oz/355ml Starbucks RF Strw Lmd 104 13.8oz/408ml Tazo Giant Peach 330 13.8oz/408ml Tazo Organic Icd Grn Tea 289 Can 16oz/473ml Yachak Berry Blue 90 Can 16oz/473ml Yachak Berry Red 83 Can 16oz/473ml Yachak Infused Mate 54 Can 16oz/473ml Yachak Ultimate Mint 68 Please base proposals on the Bag-In-Box beverages and containerized beverages as disclosed in this section - the total demand for these products during a12-month period, having ended June 30, 2018.

Page 10 of 22 SECTION 5: SCOPE OF SERVICES 5.1 SERVICE TERM Proposals are to include all related equipment and support services for a contract period of three (3) years with the possibility of two (2) additional one (1) year option periods, all in accordance with the terms and conditions, as detailed in this Request for Proposal. Service is targeted to begin in January 2020 5.2 GENERAL PRODUCT REQUIREMENTS All requirements listed in this RFP (including below) are to be considered as Mandatory, unless noted otherwise (Desirable/Optional/Graded). The Bidder’s ability to comply with these requirements is very important, as they collectively represent a major component of your company’s formal proposal. The “Mandatory Requirements” listed below (and in Attachments), establish the most essential aspects of UC San Diego Health’s needs, thus they are used to determine the fundamental eligibility of the Bidder to proceed with the bidding process. A Bidder must carefully review each of the “Mandatory Requirements” listed in this section, as the Bidder is agreeing to perform, or provide all aspects of, the stated requirement as listed by a particular item number. If a Bidder elects to make an exception to a “Mandatory Requirement”, the Bidder may be disqualified unless additional information is provided by the Bidder, sufficiently mitigating the negative response; thus establishing their capability to provide an equally acceptable solution to UC San Diego Health’s Mandatory requirements Section 2. UC San Diego Health reserves the right to waive irregularities and determine the acceptability of substitute language, services, or product offerings. UC San Diego Health plans to transition the vending operation to a third party vending company. The third party vending company will stock and operate the vending machines. However, the successful Bidder may supply product to this third party vending company under the more favorable agreement with UC San Diego Health or the Agreement with the third party vending company. The successful bidder will provide, as pre- approved by Nutrition Services, both Coca Cola and Pepsi Cola brands, and will not supply any alternate “equal” brand(s) that have not been previously approved. 5.3 TRANSITION PLAN: If the Bidder is not the incumbent then it must provide a transition plan for implementing its services. 5.4 UPDATING OR REFURBISHING, OF EQUIPMENT: Bidder must also provide plan for updating or refurbishing, of equipment in the third (3rd) year of the contract, for equipment that was not refurbished or replaced during the first three years. Updating or refurbishing is considered to be cosmetic in nature, if equipment is otherwise functionally sound. If not functionally sound, the equipment will be replaced with new equipment. 5.5 SERVICE LOCATIONS: UC San Diego Health combines all usage between the Nutrition Service Department and Gift Shops and considers both to be one (1) department with separate sites. The separate sites are:

Location:

UCSD HOSPITAL THORNTON GIFT SHOP, 9300 CAMPUS POINT DRIVE, LA JOLLA~CA~92037 UCSD HOSPITAL HILLCREST GIFT SHOP, 200 W ARBOR DR, SAN DIEGO~CA~92103 UCSD MEDICAL CENTER HILLCREST BL, 200 W ARBOR DR, SAN DIEGO~CA~92103 UCSD MEDICAL CENTER THORNTON, 9300 CAMPUS POINT DRIVE, LA JOLLA~CA~92037 5.6 PRODUCT DEMAND: Please base proposals on the Bag-In-Box beverages and containerized beverages as disclosed in the PRODUCT DEMAND Portion of Section 4.2. 5.7 FINANCIAL INCENTIVES: UC San Diego Health seeks an agreement that will provide excellent service and superior product, while increasing net revenues through lowering and controlling cost, offering cash and rebate incentives, and by strategically targeting markets. In support of this goal, the Successful Bidder will:

Page 11 of 22  Provide a minimum flexible spending budget of $50,000 through rebate incentives. Marketing events include: o Up to 300 cases of free product for staff events and the Heart Walk o A minimum Eagle Sponsorship Package for the Bannister Family House Golf Tournament o Snacks and beverages for events such as the Bannister Family House golf tournament o Gifts for promotional events  Offer fixed product pricing for the first two years of the Agreement and limit annual price increases for individual products to a maximum mutually agreed-upon amount, thereafter.  Request for changes in sale price must be proposed in writing to UC San Diego Health by June 1st of each year, together with justification and/or documentation which validates the request. The prices will become effective September 1st if approved. UC San Diego Health reserves the right to reject price change requests if appropriate justification is not provided. Commissions may be adjusted to the betterment of UC San Diego Health at that time. 5.8 FOUNTAIN, CONTAINERIZED/DIRECT DELIVERY, & FINANCIAL INCENTIVES Overview of Approved Brands Nutrition Services has pre-approved Coca Cola and Pepsi Cola brands. Suppliers may not bid on any alternate “equal” brand(s) that have not been previously approved. If such items are bid, Nutrition Services may request the Supplier to submit samples of all products specified in this bid or may refuse to evaluate further, at the University’s sole discretion. Product Warranty The Supplier certifies and warrants that all products sold to UC San Diego Health, under any agreement resulting from this RFP will:  exceed the minimum/maximum product specification  be new and genuine  be provided to Nutrition Services in the manufacturer's original packaging  be manufactured and sold to the supplier for retail sale in the United States  be sold to the Supplier from legal and reputable channels, which are understood to be the manufacturer or authorized representatives of the manufacturer New Products Supplier shall make ALL new products available to Nutrition Services as soon as they enter the market. If and when the Supplier enters new beverage categories, produces new beverage products or makes changes to existing products, Nutrition Services will decide whether those beverage products will be sold at the Medical Centers. Pricing for these new products should be consistent with the same discount levels as the current products offered within the same category. 5.9 FOUNTAIN-BAG-IN-BOX REQUIREMENTS Product Requirements - Fountain: Supplier shall offer their full line of carbonated post-mix and pre-mix beverages, teas and lemonades (detailed below) which shall be sold, dispensed, or served exclusively at the Hillcrest and La Jolla Medical Centers dining operations, as well as other locations throughout the medical Centers. Suppliers must complete Cost Bid/Financial Proposal (Attachment B) for required and requested optional products, if available. Bag-In-Box Minimum Flavors Required Supplier shall provide a stockless inventory including but not limited to Cola, Diet Cola, CF Diet Lemon-Lime, Lemonade and Lite lemonade or other Lite alternative, and Tea (flavored, unflavored, and sugar free).

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Optional products: Other optional products may be listed on the Optional portion of Fountain Tab within the Cost Matrix. Please list other Bag-In-Box products you feel would work well for each Medical Center. Note: Ability to provide these products will be considered when assigning the quality points associated with the Supplier’s ‘Breadth of Product’. Cost of these products will not be used to calculate an award. Inability to provide optional products will NOT disqualify a proposal. Carbon Dioxide (CO2) The successful Supplier is required to provide Carbon Dioxide and CO2 tanks in sufficient quantities and sizes to ensure proper operation in all facilities. CO2 shall be provided in 50lb tanks, which shall be ‘daisy chained’ for quick transition from one tank to another. Some 20lb. tanks may be permitted at the facilities not highlighted in blue, on EXHIBIT 3. CO2 and CO2 tanks shall be provided at no charge to UC San Diego Health and shall not be included in the price for the carbonated beverages. If UC San Diego Health is shorted CO2, and must order an emergency supply from an alternate source, Supplier agrees to refund to the University, the difference in cost of the CO2 (if any). Extra Product (Emergency Deliveries) The Successful Supplier is required to provide additional deliveries of containerized product, to supplement lack of fountain sales, during fountain equipment repair periods of one day or more, if requested by the affected Medical Center Café. EQUIPMENT REQUIREMENTS-FOUNTAIN: Bidder must provide its Proposal based on providing new, refurbished, or nearly new equipment (Refurbished or nearly new, are defined as less than one (1) year in age with a new appearance). Successful Supplier may also be required to replace all lines during equipment installation period. UC San Diego Health will require an update or refurbishing of equipment as new equipment comes to market or in year five of contract whichever occurs first. Updating or refurbishing is considered to be cosmetic in nature, if equipment is otherwise functionally sound. If not functionally sound’, the equipment will be replaced with new equipment. UC San Diego Health owns their ice makers. The Supplier(s) will be responsible for connecting their machinery to these ice machines. All equipment shall include beverage dispensers with a minimum number of heads, as currently provided, including a water dispenser. NOTE: The Successful Supplier will be required (if requested) to provide ‘low profile’ fountain equipment and/or ice machine adapter kits which will enable the equipment to work in conjunction with a ‘top positioned’ ice machine. UC San Diego Health will bear the cost of the individual ice generating machines. Ice dispensing bins are the financial and maintenance responsibility of the Successful Supplier. For those locations where ice machines are not currently installed or needed, supplier will ensure that ALL equipment shall be adaptable for installation of an on-top ice machine, should the need arise in the future. The Bag-In-Box multi-dispenser units, currently installed at UC San Diego Health locations, are listed on EXHIBIT 2 – Required Equipment. Fully equipped, new units will be installed at Supplier’s expense and will require (free of charge to the University) the following:  A remote location to draw syrup  Bag-In-Box racks, hose line, and all necessary fittings and supplies; set-up to be provided by the Successful Supplier.  All free standing racks for ‘daisy chained’ 50 lb. CO2 tanks, secured to meet seismic/safety requirements  All dispensers equipped with locks and/or shut off device The existing equipment consists of:  Hillcrest 8-head fountain unit with an ice machine  La Jolla: SPIRE Machine with an ice machine EQUIPMENT MAINTENANCE REQUIREMENTS

Page 13 of 22 The successful bidder shall provide, install and maintain all fountain-dispensing machines required by UC San Diego Health at no cost to the health system and for the entire duration of the contract. Equipment shall be kept in proper operating condition at all times. Maintenance shall include cosmetic repairs for any and all pieces of equipment (beyond the required 3 year update), if and when deemed necessary by UC San Diego Health. NOTE: UC San Diego Health will provide and maintain, mainline backflow preventers, however the Successful Supplier must provide the necessary hookups. The Supplier is expected to:  Make available, at no cost to UC San Diego Health, a Repair Request Line 24 hours a day 7 days a week, 52 weeks a year, including holidays, for the reporting of equipment malfunction or failure.  Provide repair personnel to answer our service request within 24 hours of first call, M-F, 52 weeks a year, including holidays.  Provide maintenance and repair service at no charge to the UC San Diego Health, excluding product replacement.  Guarantee a “trade out/loaner” or similar arrangement to restore service, for any equipment which cannot be brought up to full working capacity in less than 48 hours  Provide a dedicated, on-call, technician who has the full support (equipment, communication devises and supplies) to service all equipment located on UC San Diego Medical Centers.  Replace malfunctioning equipment with new equipment (if loaner does not meet the specifications of this RFP), in a timely manner, when repair is not possible.  Maintain all equipment through regular service throughout the year. This service must include (but not be limited to) brix recalibration of fountain equipment.  Reports, verifying the above listed maintenance must be supplied to UC San Diego Health Purchasing, within two weeks of service. Exceptions to this schedule may be granted by the UC San Diego Health if deemed acceptable by the UC San Diego Health for the Equipment provided. 5.10 CONTAINERIZED DIRECT DELIVERY REQUIREMENTS REQUIRED PRODUCTS-CONTAINERIZED DIRECT DELIVERY: Supplier shall offer a direct delivery program for their full line of served or displayed products at each location within UC San Diego Health. Beverage products include; full line of carbonated sodas (regular and diet); flavored or infused water; sports drinks/isotonics, energy; flavored and unflavored teas; fruit and fruit based drinks (Lemonade and Lite lemonade or other Lite alternative) and healthy drinks. Sizes are listed on the Cost Bid/Financial Proposal. NOTE: Recyclable Containers - The University requires all containers be able to be recycled in the normal recycling stream. Please state that all required products (not optional) are quoted in containers that meet this requirement. UC San Diego Health’s recycling program seeks the highest 'recovery rate' possible and reserves the right to approve or disapprove any product that cannot meet this criteria.  Containerized Beverages Minimum Flavors Required Minimum Number and Type of Flavors Requested are listed as brands on Attachment B - Cost Bid/Financial Proposal (as well as cross-licensed brands) and should adhere. Flavors include Cola, Diet Cola, Lemon-Lime, Dr Pepper or Mr. Pibb, Ginger Ale.  Isotonics Minimum Number and Type of Flavors Requested are listed as brands on Attachment B - Cost Bid/Financial Proposal (may propose similar or like flavors to the following): Grape, Fruit Punch, Lemon Lime, Orange, and Strawberry  Teas Minimum number and Type of Flavors Requested are listed as brands on Attachment B - Cost Bid/Financial Proposal and must include one brand ‘brewed’ defined as Honest Tea or Pure Leaf in plastic bottles. Glass bottle pricing is requested under “Optional Products’. Supplier may propose similar or like flavors to the following: Raspberry, Peach, and Regular Teas  Juice Drinks and 100% Juice

Page 14 of 22 Minimum Number and Type of Flavors Requested are listed as brands on Attachment B - Cost Bid/Financial Proposal (may propose similar or like flavors to the following): Orange, Apple, Cranberry Mixes (i.e. Cran-apple, Cran-grape, etc.), Grapefruit, Kiwi Strawberry, Vegetable Blend, Pineapple, Pink Lemonade, Sobe or similar.  Water, Regular and Flavored (or Vitamin Infused/Sparkling) Minimum Number and Type of Flavors Requested are listed as brands on Attachment B - Cost Bid/Financial Proposal, and include (minimally) Aquafina or Dasani, Propel or Glaceau. REQUIRED EQUIPMENT: Supplier must offer energy efficient, new, refurbished, or nearly new equipment (Refurbished or nearly new, are defined as less than one (1) year in age with a new appearance). Change out of equipment, not meeting specifications, will be required, even if Successful Supplier is an incumbent provider. Equipment offering with the highest energy ratings, will receive a greater number of quality points. NOTE: UC San Diego Health may require an update or refurbishing, of equipment in year five of contract, for equipment that was not refurbished or replaced during the first five years. Updating or refurbishing is considered to be cosmetic in nature, if equipment is otherwise functionally sound. If not functionally sound’, the equipment will be replaced with new equipment. The Awarded Supplier shall provide, install and maintain all merchandizing coolers required by UC San Diego Health, at no cost for the entire duration of the contract. The current units at each Health Center are listed on the EXHIBIT 3 – Required Equipment Proposal. Additional Merchandisers may be required as program requirements change. The vendor must provide, at a minimum, all equipment in accordance with the following specifications:  All upgrades or additions to the equipment during the life of the agreement will be provided and funded by the Supplier.  The equipment installed pursuant to this contract remains the property of the Supplier which shall have the right to reasonable time to remove and replace any of the machines as mutually agreed. UC San Diego Health assumes no financial responsibility for the purchase, repair fees, rentals, leases, or any other financial responsibility for said equipment but shall exercise its best effort to permit only authorized personnel of Supplier to remove or repair any of the machines. All upgrades or additions to the equipment during the life of the agreement will be done at the cost of the Supplier. Equipment Maintenance Service (Containerized/Direct Delivery) -Same level of service/specifications as required for Fountain Equipment listed above. 5.11 FRESH & HEALTHY JUICES, JUICE SMOOTHIES/’PROTEIN STYLE’ SMOOTHIE/DRINKS OVERVIEW: UC San Diego Health offers a vibrant healthy beverage program. The Successful Bidder will support this program by providing a broad selection of Fresh & Healthy Juices, Juice Smoothies/’Protein Style’ Smoothie/Drinks. Minimum Number and Type of Flavors Requested are listed as brands on Attachment B SPECIAL/UNIQUE REQUIREMENTS UC San Diego Health’s seeks an agreement that will provide excellent service and superior product, while increasing net revenues through lowering and controlling cost, offering cash and rebate incentives, and by strategically targeting markets. In support of this goal, the Successful Bidder will:  Offer 2 liter bottles of caffeine-free diet cola for the Hillcrest Center  Offer 2 liter bottles of caffeine-free diet non-cola for the Hillcrest Center  Agree that UC San Diego Health has the option to purchase outside of the Agreement, whenever the Successful Bidder cannot satisfy UC San Diego Health’s requirements  Agree that UC San Diego Health has the option to purchase outside of the Agreement, quantity and variety of non-ssb's (sugar sweetened beverages)  Agree that UC San Diego Health has the option to purchase bottled water outside of the Agreement  Merchandizer/On-site Representative orders and spot checks merchandise

Page 15 of 22  Merchandizer/On-site Rep at each Medical Centers o La Jolla-5x a week o Hillcrest-5x a week  Gift Shops: o La Jolla-orders and delivery weekly o Hillcrest-orders and delivery weekly  Price breakdown of all products/reports  Provide a minimum flexible spending budget of $50,000 through rebate incentives. Marketing events include: o Up to 300 cases of free product for staff events and the Heart Walk o A minimum Eagle Sponsorship Package Bannister Family House golf tournament o Snacks and beverages for events such as the Bannister Family House golf tournament. o Gifts for promotional events  The current supplier operates the vending program. However, UC San Diego Health plans to transition operation to a third party vending company. Therefore, the successful Bidder will supply product to this third party vending company under the successful Bidder’s agreement with UC San Diego Health. The third party vending company will stock and operate the vending machines. HEALTHY BEVERAGE INITIATIVE UCSD Health expects the successful bidder to provide a growing number of healthy beverage options moving forward and share the following guideline for the NHLT Healthy Beverage initiative, for your consideration. We ask you to support this initiative so that the Green or Yellow category healthy beverages make up make up a minimum 25% of your total product offerings and to increase this % as new products are developed.

Table 2 – Suggested Healthy Drink Program Beverages

GREEN PRODUCT GROUP: Beverages with no added sugar (0 to 5 g of natural occurring sugar per 12oz) and no artificial sweeteners should be the primary beverage of choice.

Water and seltzer water; Unsweetened tea, Unsweetened herbal tea, and Starbucks products

YELLOW PRODUCT GROUP: Beverages with low added sugar (6 to 12 g of added sugar per 12 oz) and/or no artificial sweeteners should be the primary beverage of choice

Diet soda, Low calorie, low sugar drinks, 100% fruit Juice, and Flavored 2% milk

Page 16 of 22 SECTION 6: INSTRUCTIONS TO BIDDERS 6.1 OVERVIEW UC San Diego Health expects to award the contract to bidder that proposes the best overall value based on the requirements in this solicitation. Selection shall be made using the Best Value Methodology. The Best Value methodology focuses on the Bidder’s ability to differentiate itself based upon its comparative advantages, including, the Bidder’s:  Bidder Certifications  Executive Summary  Cost Proposal Form  Risk Assessment  Value Assessment  Sustainability Questionnaire  Proposal  Customer References (to be completed only after the bidder participated in an interview). Instead of focusing on minimum expectations, UC San Diego Health is allowing Bidders to compete based on value and their ability to maximize UC San Diego Health’s satisfaction. Consequently, the submitted proposals should be brief, show differentiation, and allow UC San Diego Health to make a data-based decision on which Bidder is the best Value-Based Bidder for UC San Diego Health. It is imperative that each Bidder realize that what is written in the proposals and discussed in the interview will become part of the Bidder’s final contract. The Bidder selected for award will be the Bidder whose proposal is responsive, responsible, and is the most advantageous to the Health System, as determined by UC San Diego Health in its sole discretion. Each Bidder must furnish the required documents in the required format as outlined in this RFP in order to be considered responsive 6.2 COST REASONABLENESS The Procurement Officer will perform a cost reasonableness assessment of the highest ranking Bidder in the following manner:  If the highest ranked Bidder’s projected cost is within 5% of the next highest ranked Bidder’s projected cost, the Health System reserves the right to interview the highest ranked Bidder.  If the highest ranked Bidder’s projected cost is 5% higher than the next highest ranked Bidder’s projected cost, The Health System reserves the right to interview the second highest ranked Bidder (unless UC San Diego Health concludes that there is dominant information to proceed with the highest ranked Bidder). 6.3 PRICING/PRICING ADJUSTMENTS UC San Diego Health encourages the Bidder to ‘fix prices” throughout the initial 3-year term of the Agreement. In the event the contract is extended, cost increase pass-through will be considered on each anniversary of the contract. Adjustments may be negotiated between the successful Bidder and the Procurement Officer. Each such adjustment shall be subject to the following limitations:  In no event shall the contract price be increased by more than the percentage increase shown by the Consumer Price Index for Los Angeles/Anaheim/Riverside, California Counties as published by the U.S. Department of Labor, Bureau of Labor Statistics.  All proposed price increases shall be submitted, in writing, ninety (90) days prior to the anniversary date. Requests for price increases may require substantiating documentation in the form of invoices, labor contracts, letterhead notices of price increases, etc.  UC San Diego Health reserves the right for whatever reason deemed to be in UC San Diego Health’s best interest to accept, reject or negotiate such proposed cost pass through. In the event agreement cannot be attained, the contract holder shall agree to a final ninety (90) day extension with no change in pricing or service levels.

Page 17 of 22  UC San Diego Health shall be given the benefit of all price declines 6.4 DEVIATION FROM SPECIFICATIONS A Bidder shall identify and fully disclose any deviation from the scope of work, as presented within this RFP. UC San Diego Health reserves the right to accept or reject quotations on each item separately or as a whole and to waive any irregularities within a proposal; irregularities may, however any render the proposal non-responsive

SECTION 7: SUBMISSION OF THE PROPOSAL

DATE, TIME, AND LOCATION All proposal packages MUST submitted later than the date and time indicated in the Procurement Schedule in Section 5 (“Proposal Due Date”). When submitting through UC Public Bid Site, please note that submissions will be time stamped with the time at the completion of the upload process, not the beginning. Bidders are strongly encouraged to complete and submit its proposal in the UC Public Bid Site well before the RFPs due date. Proposals submitted to UC Public Bid Site after the specified closing time will be rejected. NUMBER OF RESPONSES Each Bidder shall submit only one (1) proposal through the CalUsource, the UC Public Bid Site. This proposal consists of one file (that contains all of the required attachments) or a series of the required individual attachments. Each Bidder is solely responsible for the delivery of submissions in the manner and time described. This solicitation, the evaluation of proposals, and the award of any resulting contract will be made in conformance with applicable UC policies and California law. UC reserves the right to withdraw this RFP at any time. All documents submitted to UC in response to this RFP will become the exclusive property of UC and will not be returned. PROPOSAL PACKAGE CONTENTS AND REQUIREMENTS Each Bidder shall submit one (1) proposal package. Any proposal that does not adhere to the requirements in this RFP will be deemed non responsive and rejected.  Attachment A – Bidder Information and Certifications  Attachment B – Executive Summary  Attachment C – Cost Proposal  Attachment D – Risk Assessment  Attachment E – Value Assessment  Attachment F – Sustainability Questionnaire  Attachment G – Proposal  Attachment H – Customer Reference Questionnaire (to be completed only after the bidder participated in an interview)

Page 18 of 22 SECTION 8: ADDITIONAL TERMS, CONDITIONS, AND REQUIREMENT CONTRACT FORM Any contract awarded pursuant to this RFP shall:  Be memorialized in writing within Exhibit A: UC Health Professional Services Agreement,  Be governed by Exhibit B: UC Health Terms and Conditions  Be governed by exhibits C through F, where applicable  Incorporate RFP requirements and specifications, as well the Bidder’s final proposal, as accepted by UC San Diego Health. PREVAILING WAGES Whenever applicable, Supplier must follow ARTICLE 24 - PREVAILING WAGES of the UC Office of the President Terms and Conditions of Purchase, which states:

Unless UC notifies Supplier that the Services are not subject to prevailing wage requirements, Supplier will comply, and will ensure that all sub-suppliers comply, with California prevailing wage provisions, including but not limited to those set forth in Labor Code sections 1770, 1771, 1771.1, 1772, 1773, 1773.1, 1774, 1775, 1776, 1777.5, and 1777.6. For purposes of the Agreement, the term “sub-supplier” means a person or firm, of all tiers, that has a contract with Supplier or with a sub-supplier to provide a portion of the Services. The term sub-supplier will not include suppliers, manufacturers, or distributors. Specifically, and not by way of limitation, if apprenticable occupations are involved in providing the Services, Supplier will be responsible for ensuring that Supplier and any sub-suppliers comply with Labor Code Section 1777.5. Supplier and sub- supplier may not provide the Services unless currently registered and qualified to perform public work pursuant to Labor Code Section 1725.5 and 1771.1. Notwithstanding the foregoing provisions, Supplier will be solely responsible for tracking and ensuring proper payment of prevailing wages regardless if Services are partially or wholly subject to prevailing wage requirements. In every instance, Supplier will pay not less than the UC Fair Wage (defined as $13 per hour as of 10/1/15, $14 per hour as of 10/1/16, and $15 per hour as of 10/1/17) for Services being performed at a UC Location (defined as any location owned or leased by UC). The California Department of Industrial Relations (DIR) has ascertained the general prevailing per diem wage rates in the locality in which the Services are to be provided for each craft, classification, or type of worker required to provide the Services. A copy of the general prevailing per diem wage rates will be on file at each UC Location’s procurement office, and will be made available to any interested party upon request. Supplier will post at any job site: A. Notice of the general prevailing per diem wage rates, and B. Any other notices required by DIR rule or regulation.

By this reference, such notices are made part of the Agreement. Supplier will pay not less than the prevailing wage rates, as specified in the schedule and any amendments thereto, to all workers employed by Supplier in providing the Services. Supplier will cause all subcontracts to include the provision that all sub-suppliers will pay not less than the prevailing rates to all workers employed by such sub-suppliers in providing the Services. The Services are subject to compliance monitoring and enforcement by the DIR. Supplier will forfeit, as a penalty, not more than $200 for each calendar day or portion thereof for each worker that is paid less than the prevailing rates as determined by the DIR for the work or craft in which the worker is employed for any portion of the Services provided by Supplier or any sub-supplier. The amount of this penalty will be determined pursuant to applicable law. Such forfeiture amounts may be deducted from the amounts due under the Agreement. If there are insufficient funds remaining in the amounts due under the Agreement, Supplier will be liable for any outstanding amount remaining due. Supplier will also pay to any worker who was paid less than the prevailing wage rate for the work or craft for which the worker was employed for any portion of the Services, for each day, or portion thereof, for which the worker was paid less than the specified prevailing per diem wage rate, an amount equal to the difference between the specified prevailing per diem wage rate and the amount which was paid to the worker. Review of any civil wage and penalty assessment will be made pursuant to California Labor Code section 1742.

Page 19 of 22 FAIR WAGE/FAIR WORK Whenever applicable, Supplier must follow ARTICLE 25 - FAIR WAGE/FAIR WORK of the UC Office of the President Terms and Conditions of Purchase, which states: If the Agreement is for Services that will be performed at one or more UC Locations, does not solely involve furnishing Goods, and are not subject to extramural awards containing sponsor-mandated terms and conditions, Supplier warrants that it is in compliance with applicable federal, state and local working conditions requirements, including but not limited to those set forth in Articles 11, 12 and 14 herein, and that Supplier pays its employees performing the Services no less than the UC Fair Wage. Supplier agrees UC may conduct such UC Fair Wage/Fair Work interim compliance audits as UC reasonably requests, as determined in UC’s sole discretion. Supplier agrees to post UC Fair Wage/Fair Work notices, in the form supplied by UC, in public areas (such as break rooms and lunch rooms) frequented by Supplier employees who perform Services. For Services rendered (actual spend) not subject to prevailing wage requirements in excess of $100,000 in a year (under the Agreement or any combination of agreements for the same service), Supplier will (i) at Supplier’s expense, provide an annual independent verification (https://www.ucop.edu/procurement-services/for-suppliers/fwfw-resources-suppliers.html) performed by a licensed public accounting firm (independent accountant) or the Supplier’s independent internal audit department (http://na.theiia.org/standards- guidance/topics/Pages/Independence-and-Objectivity.aspx) in compliance with UC’s required verification standards and procedures (https://www.ucop.edu/procurement-services/for- suppliers/fwfw-resources-suppliers.html), concerning Supplier’s compliance with this provision, and (ii) ensure that in the case of a UC interim audit, its independent accountant/independent internal auditor makes available to UC its UC Fair Wage/Fair Work work papers for the most recent verification period. Supplier agrees to provide UC with a UC Fair Wage/Fair Work verification annually, in a form acceptable to UC, no later than ninety days after the end of the 12- month period in which $100,000 in spend is reached. The Fair Wage Fair Work annual independent verification requirement does not extend to contracts for professional services or consulting for which pre-certification has been provided to UC (https://www.ucop.edu/procurement-services/for-suppliers/fwfw-resources-suppliers.html). Please see the UC Procurement/Supply Chain Management Policy BUS-43 (https://www.ucop.edu/procurement-services/policies-forms/business-and-finance/index.html) for the definition of professional services and consulting. PROPOSAL PREPARATION COSTS Bidders will bear all costs incurred in the preparation and submission of the Proposal and related documentation, including Bidder’s presentations to UC. If Bidder is the apparent awardee, Bidder will bear its own costs in negotiating and finalizing an agreement with UC San Diego Health. FIRM PROPOSALS Bidder’s pricing/fees/costs in response to this RFP shall remain firm for a period of 90 days from the RFP due date. ERRORS AND OMISSIONS Successful Bidder should immediately notify UC of any apparent discrepancy, error, omission, ambiguity or lack of clarity in this RFP, any attachments, references and amendments. Successful Bidder will not be entitled to compensation for any error or discrepancy that appears in this RFP. UNIVERSITY’S RIGHT TO NEGOTIATE Notwithstanding any other provision of this RFP, Bidders are hereby advised that this RFP is a solicitation of proposals only and is not to be construed as an offer to enter into any contract or agreement. UC San Diego Health reserves the right to award all, part or none of the item(s) covered by this RFP and to contract in the best interests of UC San Diego Health. UC San Diego Health reserves the right to negotiate each and every aspect of any offer received in response to this RFP, and to reject or negotiate additional terms and conditions offered by the apparent successful Bidder prior to the execution of a contract. In addition, UC San Diego Health may require additional cost and pricing data or documentation prior to award of any contract in whole or in part which may result from this RFP. UC San Diego Health may waive irregularities in a Proposal provided that, in UC San Diego Health’s judgment, such action will not negate fair competition and will permit proper comparative evaluation of

Page 20 of 22 proposals. UC San Diego Health’s waiver of an immaterial deviation or defect will not modify the RFP documents or excuse successful Bidder from full compliance with the RFP specifications in the event a contract is awarded to successful Bidder. UC San Diego Health shall have the unconditional and unqualified right to withdraw, cancel, or amend this RFP at any time, for any reason. Bidders shall bear all costs associated with the preparation and furnishing of responses to this RFP. A proposal, which contains conditions or limitations set by the respondent may be deemed irregular and subsequently rejected by UC San Diego Health. Respondents may not distribute any announcement or news release regarding this project without written approval of UC San Diego Health. Any materials to be provided to regulatory agencies, other entities, or to the public shall be submitted to UC San Diego Health for review and distribution unless otherwise directed GUIDELINES Successful Bidder must operate within the guidelines of all federal, state, and local labor laws and codes. Successful Bidder must possess all trade, professional or business licenses as may be required by the work contemplated by this RFP. PUBLIC INFORMATION, TRADE SECRETS AND THECALIFORNIA PUBLIC RECORDS ACT All proposals, supporting materials and related documentation are subject to the California Public Records Act. All material submitted in response to this solicitation shall become a matter of public record and shall be regarded as public record. Marking a document “confidential” or “proprietary” may not prevent its release. The California Public Records Act limits UC San Diego Health’s ability to withhold pre-qualification and proposal data to trade secrets or records, the disclosure of which is exempt or prohibited pursuant to federal or state law. If a submittal contains any trade secrets that respondent does not want disclosed to the public or used by UC San Diego Health for any purpose other than evaluation of the respondent's eligibility, each sheet of such information must be marked with the designation "Confidential”. UC San Diego Health will notify the respondent of any request, by another party, to inspect such confidential information. Respondent will have an opportunity to establish that such information is exempt from inspection in any proceeding to compel inspection. COLLUSION AMONG SUCCESSFUL BIDDERS Collusion is not allowed. If there is proof of collusion among Bidders, UC San Diego Health will reject all proposals involved in the collusive action. ETHICS Bidder shall exercise extreme care and due diligence to prevent any action or conditions which could result in conflict with the best interest of UC San Diego Health. Throughout the term of any subsequent Agreement, Bidder shall not accept any employment or engage in any work, which creates a conflict of interest with UC San Diego Health or in any way compromises the work to be performed under this RFP or subsequent Agreement. Bidder and/or its employees shall not offer gifts, entertainment, payment, loans, or other gratuities or consideration to UC San Diego Health employees, their families, other Bidders, subcontractors, or other third parties for the purpose of influencing such persons to act contrary to the UC San Diego Health’s interest or for personal gain. Bidder shall immediately notify UC San Diego Health of any and all such violations of this clause upon becoming aware of such violations. DEFINITIONS: In this Request for Proposal (RFP), the terms “UC San Diego Health or the Health System” shall be understood to mean "the University of San Diego Health.” The terms "Bid, Bidder, Vendor, Supplier, Service Provider or Contractor”, as used herein, shall be understood to mean the individual, company, corporation or independent contractor whose products and/or services are selected for purchase after successfully bidding in response to this RFP. Until a purchase is recommended and approved, the term shall be understood to mean the individual, company, corporation or independent contractor formally submitting a response to this RFP.

Page 21 of 22 The term "proposal or response," as used herein, shall be understood to mean a written offer to provide goods and/or services in accordance with the general conditions, instructions and specifications stated herein with exceptions clearly stated.

Page 22 of 22