7KH6WDWHRI0LQQHVRWD   

  

  5(48(67)25352326$/    0,11(627$:6&$1$6320DVWHU$JUHHPHQW IRU &RPSXWHU(TXLSPHQW 'HVNWRSV/DSWRSV7DEOHWV 6HUYHUV6WRUDJHDQG5XJJHGL]HG'HYLFHVLQFOXGLQJ 5HODWHG3HULSKHUDOV 6HUYLFHV 

 6(&7,216&23(2):25._B      

0DWHULDOV0DQDJHPHQW'LYLVLRQ $GPLQLVWUDWLRQ%XLOGLQJ 6KHUEXUQH$YHQXH 6W3DXO01 9RLFH  )D[ 

STATE OF MINNESOTA

REQUEST FOR PROPOSAL (RFP)

COMPUTER EQUIPMENT: (DESKTOPS, LAPTOPS, TABLETS, SERVERS, STORAGE, RUGGEDIZED DEVICES INCLUDING RELATED PERIPHERALS & SERVICES)

DUE DATE: ORIGINAL DUE DATE: November 18, 2013

REVISED DUE DATE: January 29, 2014

TIME: 3:00 P.M., CENTRAL TIME

 6(&7,216&23(2):25._B  7$%/(2)&217(176

 6(&7,216&23(2):25. $,1752'8&7,21 %2%-(&7,9( &:6&$1$632%$&.*5281',1)250$7,21 '3$57,&,3$7,1*67$7(6 (352'8&7%$1''(),1,7,216 )&21),*85$7,21'2//$5/,0,76 *5(675,&7,216 +'(),1,7,216  6(&7,210$67(5$*5((0(177(506$1'&21',7,216 $*(1(5$/7(506&21',7,216 ,16758&7,216 &+(&./,67  %:6&$1$6327(506$1'&21',7,216 &0,11(627$7(506$1'&21',7,216 ')2506  6(&7,215(63216(5(48,5(0(176 $5(63216(5(48,5(0(176%86,1(66 %5(63216(5(48,5(0(176(19,5210(17$/ &5(63216(5(48,5(0(17648$/,),&$7,216 '5(63216(5(48,5(0(176&86720(56833257$1'0$67(5$*5((0(170$1$*(0(17  6(&7,21&267352326$/  6(&7,21(9$/8$7,21352&(66  6(&7,21$77$&+0(176 $3$57,&,3$7,1*67$7(6 %02'(/3$57,&,3$7,1*$''(1'80 &02'(/0$67(5$*5((0(17 '$&7,215(48(67)2506$03/( (352'8&7$1'6(59,&(6&+('8/( )%8/.92/80(35,&,1*(;$03/(6 *'(7$,/6$/(65(32577(03/$7( +6$03/(35,&(:25.%22.6 ,62/,&,7$7,21$''(1'806800$5<««««««««««««««««««««««««««««««« -48(67,216$1'$16:(563529,'('9,$$''(1'806

 6(&7,216&23(2):25._B  6(&7,216&23(2):25.  $,1752'8&7,21  7KH6WDWHRI0LQQHVRWD'HSDUWPHQWRI$GPLQLVWUDWLRQ0DWHULDOV0DQDJHPHQW'LYLVLRQLVUHTXHVWLQJSURSRVDOVRQEHKDOI RIWKH6WDWHRI0LQQHVRWDDQG:6&$1$632&RRSHUDWLYH3URFXUHPHQW3URJUDP ³:6&$1$632´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¶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

 6(&7,216&23(2):25._B  %2%-(&7,9( 7KHREMHFWLYHVRIWKLV5)3DUHWR

x 2EWDLQJUHDWHUYROXPHEDVHGSULFHGLVFRXQWVIRUTXDQWLW\RQHSXUFKDVHVE\OHYHUDJLQJWKHSXUFKDVLQJSRZHURI PXOWLSOHVWDWHVDQGWKHLUSROLWLFDOVXEGLYLVLRQV x 2EWDLQFRPSHWLWLYHSULFLQJIRUVSHFLILFVWDQGDUGFRQILJXUDWLRQVWKURXJKD3UHPLXP6DYLQJ3DFNDJH 363  SURJUDP x 5HGXFHFRQWUDFWLQJFRVWVIRUHDFKSDUWLFLSDWLQJVWDWHWKURXJKDFRRSHUDWLYHFRPSHWLWLYHSURFXUHPHQWSURFHVV 3URSRVHUVZLOOSURYLGHDQLQLWLDOGLVFRXQWIRUDTXDQWLW\RIRQHXQLW3URSRVHUVDUHWREDVHGLVFRXQWVRQWKHFROOHFWLYH YROXPHRISRWHQWLDOSXUFKDVHVE\WKHQXPHURXVVWDWHDQGORFDOJRYHUQPHQWHQWLWLHV7KHREMHFWLYHRIWKHSURFXUHPHQWLV WRFRQVROLGDWHVSHQGIRUSDUWLFLSDWLQJHQWLWLHVWRUHFHLYHKLJKO\FRPSHWLWLYHSULFLQJDWWKHTXDQWLW\RQHXQLW,Q&DOHQGDU

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

 6(&7,216&23(2):25._B  ,QWHQWWR3DUWLFLSDWH1RWLFHVKDYHEHHQUHFHLYHGWRGDWHIURPWKHIROORZLQJ6WDWHV   $ODVND $UNDQVDV &DOLIRUQLD &RORUDGR &RQQHFWLFXW 'HODZDUH *HRUJLD +DZDLL ,GDKR ,QGLDQD ,RZD .DQVDV /RXLVLDQD 0DLQH 0DVVDFKXVHWWV 0LQQHVRWD 0LVVRXUL 0RQWDQD 1HEUDVND 1HYDGD 1HZ+DPSVKLUH 1HZ-HUVH\ 1HZ0H[LFR 1RUWK'DNRWD 2NODKRPD 2UHJRQ 5KRGH,VODQG 6RXWK&DUROLQD 6RXWK'DNRWD 7HQQHVVHH 8WDK 9HUPRQW :DVKLQJWRQ :\RPLQJ

 6(&7,216&23(2):25._B  &XUUHQW6WDWHV3DUWLFLSDWLQJ6DOHV9ROXPHVIRU&DOHQGDU

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

 6(&7,216&23(2):25._B  

)&21),*85$7,21'2//$5/,0,76  &21),*85$7,21'2//$5/,0,767KHIROORZLQJFRQILJXUDWLRQOLPLWVDSSO\WRWKH0DVWHU$JUHHPHQW3DUWLFLSDWLQJ 6WDWHVPD\GHILQHWKHLUFRQILJXUDWLRQOLPLWVLQWKHLUSDUWLFLSDWLQJDGGHQGXP7KH3DUWLFLSDWLQJ6WDWH¶V&KLHI3URFXUHPHQW 2IILFLDOPD\LQFUHDVHRUGHFUHDVHWKHFRQILJXUDWLRQOLPLWVDVGHILQHGLQWKHLU3DUWLFLSDWLQJ$GGHQGXP7KH3DUWLFLSDWLQJ 6WDWHZLOOGHWHUPLQHZLWKWKH&RQWUDFW9HQGRUKRZWRDSSURYHWKHVHPRGLILFDWLRQVWRWKH6WDWH¶V3URGXFWDQG6HUYLFH 6FKHGXOH 7KHGROODUOLPLWVLGHQWLILHGEHORZDUHEDVHGRQD6,1*/(FRPSXWHUFRQILJXUDWLRQ7KLVLV127DUHVWULFWLRQRQWKH SXUFKDVHRIPXOWLSOHFRQILJXUDWLRQV HJDQHQWLW\FRXOGSXUFKDVHODSWRSV#IRUDWRWDOSXUFKDVHSULFHRI    ,7(0    &21),*85$7,21  6HUYHU     6WRUDJH     'HVNWRSV     /DSWRSV     7DEOHWV     3HULSKHUDOV    6HUYLFHV    $GGUHVVHGE\HDFK6WDWHLQSDUWLFLSDWLQJDGGHQGXP  &RQILJXUDWLRQLVGHILQHGDVWKHFRPELQDWLRQRIKDUGZDUHDQGVRIWZDUHFRPSRQHQWVWKDWPDNHXSWKHWRWDOIXQFWLRQLQJ V\VWHP6RIWZDUHSXUFKDVHVDUHFRQVLGHUHGDSDUWRIWKHFRQILJXUDWLRQOLPLWRIWKHHTXLSPHQW

 6(&7,216&23(2):25._B  *5(675,&7,216  7KHIROORZLQJUHVWULFWLRQVDSSO\WRWKH0DVWHU$JUHHPHQW$3DUWLFLSDWLQJ6WDWHPD\VHWIXUWKHUUHVWULFWLRQVRISURGXFWVLQ WKHLU3DUWLFLSDWLQJ$GGHQGXP7KH3DUWLFLSDWLQJ6WDWHZLOOGHWHUPLQHZLWKWKH&RQWUDFW9HQGRUKRZWRDSSURYHWKHVH PRGLILFDWLRQVWRWKH6WDWH¶V3URGXFWDQG6HUYLFH6FKHGXOH

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¶V&KLHI 3URFXUHPHQW2IILFHU

 6(&7,216&23(2):25._B  

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Š$YROXQWDU\HQHUJ\HIILFLHQF\SURJUDPVSRQVRUHGE\WKH86(QYLURQPHQWDO3URWHFWLRQ$JHQF\7KH (QHUJ\6WDUSURJUDPPDNHVLGHQWLILFDWLRQRIHQHUJ\HIILFLHQWFRPSXWHUVHDV\E\ODEHOLQJSURGXFWVWKDWGHOLYHUWKHVDPHRU EHWWHUSHUIRUPDQFHDVFRPSDUDEOHPRGHOVZKLOHXVLQJOHVVHQHUJ\DQGVDYLQJPRQH\(QHUJ\6WDUTXDOLILHGFRPSXWHUV DQGPRQLWRUVDXWRPDWLFDOO\SRZHUGRZQWRZDWWVRUOHVVZKHQQRWLQXVHDQGPD\DFWXDOO\ODVWORQJHUWKDQFRQYHQWLRQDO SURGXFWVEHFDXVHWKH\VSHQGDODUJHSRUWLRQRIWLPHLQDORZSRZHUVOHHSPRGH)RUDGGLWLRQDOLQIRUPDWLRQRQWKH(QHUJ\ 6WDUSURJUDPLQFOXGLQJSURGXFWVSHFLILFDWLRQVDQGDOLVWRITXDOLI\LQJSURGXFWVYLVLWWKH(QHUJ\6WDUZHEVLWHDW KWWSZZZHQHUJ\VWDUJRY  (3($7$V\VWHPIRULGHQWLI\LQJPRUHHQYLURQPHQWDOO\SUHIHUDEOHFRPSXWHUGHVNWRSVODSWRSVDQGPRQLWRUV,WLQFOXGHVDQ $16,VWDQGDUGWKH,((((3($7VWDQGDUG±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³PXVW´DQG³VKDOO´LGHQWLI\DPDQGDWRU\LWHPRUIDFWRU)DLOXUHWRPHHWD PDQGDWRU\UHTXLUHPHQWUHVXOWVLQWKHUHMHFWLRQRIWKH5HVSRQGHU¶VSURSRVDOXQOHVVDOOUHVSRQGHUVDUHXQDEOHWR PHHWWKHPDQGDWRU\UHTXLUHPHQW$Q\REMHFWLRQVWRUHTXLUHPHQWVVKRXOGEHLGHQWLILHGE\SURSRVHUVLQWKH4XHVWLRQDQG $QVZHUSHULRG  0DQXIDFWXUHU$FRPSDQ\WKDWDVRQHRILWVSULPDU\EXVLQHVVIXQFWLRQGHVLJQVDVVHPEOHVRZQVWKHWUDGHPDUNSDWHQW DQGPDUNHWVEUDQGHGFRPSXWHUHTXLSPHQW  0DVWHU$JUHHPHQW7KHXQGHUO\LQJDJUHHPHQWH[HFXWHGE\DQGEHWZHHQWKH/HDG6WDWHDQGWKH&RQWUDFW9HQGRU  0LGGOHZDUH0LGGOHZDUHLVWKHVRIWZDUH³JOXH´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¶VZLOOLQJQHVVWRSXUFKDVHDQGWKH&RQWUDFW9HQGRU¶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¶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

 6(&7,216&23(2):25._B   3HU7UDQVDFWLRQ0XOWLSOH8QLW'LVFRXQW$FRQWUDFWXDOYROXPHGLVFRXQWEDVHGRQGROODUVLQDVLQJOHSXUFKDVHRUGHURU FRPELQDWLRQRISXUFKDVHRUGHUVVXEPLWWHGDWRQHWLPHE\D3DUWLFLSDWLQJ(QWLW\RUPXOWLSOHHQWLWLHVFRQGXFWLQJD FRRSHUDWLYHSXUFKDVH  3UHPLXP6DYLQJV3DFNDJHV'HHSO\GLVFRXQWHGVWDQGDUGFRQILJXUDWLRQVDYDLODEOHWR3XUFKDVLQJ(QWLWLHVXVLQJWKH 0DVWHU$JUHHPHQW7KLVVSHFLILFDWLRQLQFOXGHVDFRPPLWPHQWWRPDLQWDLQDQGXSJUDGH NHHSSDFHZLWKWKHDGYDQFHRI WHFKQRORJ\ WKHVWDQGDUGFRQILJXUDWLRQVIRUDVWDWHGSHULRGRIWLPHRULQWHUYDOV:6&$1$632UHVHUYHVWKHULJKWWR H[SDQGDQGPRGLI\WKH363WKURXJKRXWWKHOLIHRIWKHFRQWUDFW)RUPRUHLQIRUPDWLRQVHH KWWSZZZZQSVSFRPLQGH[KWPO  3XUFKDVLQJ(QWLW\±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¶VKDUGZDUHLQIUDVWUXFWXUHRQDVXEVFULSWLRQEDVLV(JPDQDJHRQVLWHRUFORXGVHUYLFHV  6RIWZDUH)RUWKHSXUSRVHVRIWKLVSURSRVDOVRIWZDUHLVFRPPHUFLDORSHUDWLQJRIIWKHVKHOIPDFKLQHUHDGDEOHREMHFWFRGH LQVWUXFWLRQVLQFOXGLQJPLFURFRGHILUPZDUHDQGRSHUDWLQJV\VWHPVRIWZDUHWKDWDUHSUHORDGHGRQHTXLSPHQW7KHWHUP ³6RIWZDUH´DSSOLHVWRDOOSDUWVRIVRIWZDUHDQGGRFXPHQWDWLRQLQFOXGLQJQHZUHOHDVHVXSGDWHVDQGPRGLILFDWLRQVRI VRIWZDUH  7DEOHW7KLVLV%DQGRIWKLVVROLFLWDWLRQ$WDEOHWLVDPRELOHFRPSXWHUWKDWSURYLGHVDWRXFKVFUHHQZKLFKDFWVDVWKH SULPDU\PHDQVRIFRQWURO7DEOHWEDQGPD\LQFOXGHQRWHERRNVXOWUDERRNVDQGQHWERRNVWKDWDUHWRXFKVFUHHQFDSDEOH  7DNHEDFN3URJUDP7KH&RQWUDFW9HQGRU¶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

 6(&7,216&23(2):25._B  

6(&7,210$67(5$*5((0(177(506$1'&21',7,216  $//7(506$1'&21',7,216$' $33/<727+(0$67(5$*5((0(17&2175$&7  $VWDWHPHQWRIDFFHSWDQFHRIWKHSURSRVHG0DVWHU$JUHHPHQW7HUPVDQG&RQGLWLRQVXQOHVVWDNHQH[FHSWLRQWRDV VSHFLILHGLQWKH5)3PXVWEHLQFOXGHGLQWKHUHVSRQVH$Q\VXJJHVWLRQVIRUDOWHUQDWHODQJXDJHVKDOOEHSUHVHQWHG   $*(1(5$/7(506&21',7,216 ,16758&7,216  %:6&$1$6327(506 &21',7,216  &0,11(627$7(506$1'&21',7,216  ')2506

 6(&7,210$67(5$*5((0(177(506$1'&21',7,216_B  6(&7,21 0$67(5$*5((0(177(506$1'&21',7,216

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¶V3DUWLFLSDWLQJ$GGHQGXP ³3$´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¶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¶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¶VFRQWHQWVRUSURFHVVLVVWULFWO\SURKLELWHGDQGPD\DVDUHVXOWKDYHLWV UHVSRQVHUHMHFWHG$Q\FRPPXQLFDWLRQUHJDUGLQJWKLV6ROLFLWDWLRQLWVFRQWHQWRUSURFHVVPXVWEHGLUHFWHGWRWKH $FTXLVLWLRQ0DQDJHPHQW6SHFLDOLVWOLVWHGLQWKH6ROLFLWDWLRQGRFXPHQWV 

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†WKHUHVSRQGHUPXVW  D FOHDUO\PDUNDOOWUDGHVHFUHWPDWHULDOVLQLWVUHVSRQVHDWWKHWLPHWKHUHVSRQVHLVVXEPLWWHG  E LQFOXGHDVWDWHPHQWZLWKLWVUHVSRQVHMXVWLI\LQJWKHWUDGHVHFUHWGHVLJQDWLRQIRUHDFKLWHPDQG  F GHIHQGDQ\DFWLRQVHHNLQJUHOHDVHRIWKHPDWHULDOVLWEHOLHYHVWREHWUDGHVHFUHWDQGLQGHPQLI\DQGKROGKDUPOHVV WKH/HDG6WDWHLWVDJHQWVDQGHPSOR\HHVIURPDQ\MXGJPHQWVDZDUGHGDJDLQVWWKH/HDG6WDWHLQIDYRURIWKH SDUW\UHTXHVWLQJWKHPDWHULDOVDQGDQ\DQGDOOFRVWVFRQQHFWHGZLWKWKDWGHIHQVH7KLVLQGHPQLILFDWLRQVXUYLYHV WKH/HDG6WDWH¶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³6DYH$V«´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¶V UHVSRQVH LQFRUSRUDWHG WKHUHLQ E\ UHIHUHQFH  DQG DQ\ ZULWWHQ DGGHQGD WKHUHWR FRQVWLWXWH WKH HQWLUH DJUHHPHQWRIWKHSDUWLHVWRWKH0DVWHU$JUHHPHQW 

 6(&7,210$67(5$*5((0(177(506$1'&21',7,216_B   ,55(92&$%/( 2))(5 ,Q DFFRUGDQFH ZLWK WKLV 5HTXHVW IRU 3URSRVDO DQG VXEMHFW WR DOO FRQGLWLRQV WKHUHRI WKH XQGHUVLJQHGDJUHHVWKDWLWVUHVSRQVHWRWKLV5)3RUDQ\SDUWWKHUHRILVDQLUUHYRFDEOHRIIHUIRUGD\VIROORZLQJWKH VXEPLVVLRQGHDGOLQHGDWHXQOHVVVWDWHGRWKHUZLVHLQWKH5)3,WLVXQGHUVWRRGDQGDJUHHGWKDWWKHUHVSRQVHRUDQ\ SDUWWKHUHRIZKHQDFFHSWHGE\WKHDSSURSULDWHGHSDUWPHQWDQG6WDWHRIILFLDOVLQZULWLQJPD\EHFRPHSDUWRIDOHJDO DQGELQGLQJ0DVWHU$JUHHPHQWEHWZHHQWKHXQGHUVLJQHGYHQGRUDQGWKH6WDWHRI0LQQHVRWD   0$7(5,$/'(9,$7,21$UHVSRQGHUVKDOOEHSUHVXPHGWREHLQDJUHHPHQWZLWKWKHVHWHUPVDQGFRQGLWLRQVXQOHVVLW WDNHVVSHFLILFH[FHSWLRQWRRQHRUPRUHRIWKHFRQGLWLRQV6XEPLVVLRQE\WKHUHVSRQGHURILWVSURSRVHGODQJXDJHVKDOO QRWEHYLHZHGDVDQH[FHSWLRQXQOHVVWKHUHVSRQGHUVSHFLILFDOO\VWDWHVLQWKHUHVSRQVHWKDWLWVSURSRVHGFKDQJHVDUH LQWHQGHGWRVXSHUVHGHWKHWHUPVDQGFRQGLWLRQV   5(6321'(56$5(&$87,21('7+$7%<7$.,1*$1<(;&(37,217+(<0$<%(0$7(5,$//< '(9,$7,1*)5207+(5(48(67)25352326$/,)$5(6321'(50$7(5,$//<'(9,$7(6)5207+( *(1(5$/7(506&21',7,216$1',16758&7,216257+(:6&$1$6327(506$1'&21',7,216 $1'2563(&,),&$7,216,765(63216(0$<%(5(-(&7('   $PDWHULDOGHYLDWLRQLVDQH[FHSWLRQWRWKH5HTXHVWIRU3URSRVDOJHQHUDORU:6&$1$632WHUPVDQGFRQGLWLRQV DQGRUVSHFLILFDWLRQVWKDW  D JLYHVWKHUHVSRQGHUWDNLQJWKHH[FHSWLRQDFRPSHWLWLYHDGYDQWDJHRYHURWKHUYHQGRUVRU  E JLYHVWKH/HDG6WDWHVRPHWKLQJVLJQLILFDQWO\GLIIHUHQWIURPWKDWZKLFKWKH/HDG6WDWHUHTXHVWHG   1215(63216,9(5(63216(65HVSRQVHVWKDWGRQRWFRPSO\ZLWKWKHSURYLVLRQVLQWKH5)3PD\EHFRQVLGHUHG QRQUHVSRQVLYHDQGPD\EHUHMHFWHG   127,&(6,IRQHSDUW\LVUHTXLUHGWRJLYHQRWLFHWRWKHRWKHUXQGHUWKH0DVWHU$JUHHPHQWVXFKQRWLFHVKDOOEHLQ ZULWLQJDQGVKDOOEHHIIHFWLYHXSRQUHFHLSW'HOLYHU\PD\EHE\FHUWLILHG8QLWHG6WDWHVPDLORUE\KDQGLQZKLFKFDVHD VLJQHGUHFHLSWVKDOOEHREWDLQHG$IDFVLPLOHWUDQVPLVVLRQVKDOOFRQVWLWXWHVXIILFLHQWQRWLFHSURYLGHGWKHUHFHLSWRIWKH WUDQVPLVVLRQLVFRQILUPHGE\WKHUHFHLYLQJSDUW\(LWKHUSDUW\PXVWQRWLI\WKHRWKHURIDFKDQJHLQDGGUHVVIRU QRWLILFDWLRQSXUSRVHV$OOQRWLFHVWRWKH/HDG6WDWHVKDOOEHDGGUHVVHGDVIROORZV  6XVDQ.DKOH  VXVDQNDKOH#VWDWHPQXV $FTXLVLWLRQ0DQDJHPHQW6SHFLDOLVW 6KHUEXUQH$YHQXH $GPLQLVWUDWLRQ%OGJ 6W3DXO01   35(352326$/0((7,1*$SUHSURSRVDOPHHWLQJZLOOEHKHOGIRUDOOLQWHUHVWHGUHVSRQGHUVWRUHYLHZDQ\ FRQFHUQVUHJDUGLQJWKLV5HTXHVWIRU3URSRVDO$WWHQGDQFHDWWKLVPHHWLQJLV1270$1'$725<EXWLVVWURQJO\ UHFRPPHQGHG6HH6FKHGXOHRIHYHQWVIRUGDWHDQGWLPHTo register for webinar: KWWSVDPUPVHYHQWVZHEH[FRPDPUPVHYHQWVRQVWDJHJSKS"G  W D   352326$/35(3$5$7,215HVSRQVHVDUHWREHSUHSDUHGDQGSUHVHQWHGLQWKHVDPHVHTXHQWLDORUGHUDVWKH TXHVWLRQVDUHSUHVHQWHGLQWKLVGRFXPHQW5HVSRQVHVGHYLDWLQJIURPWKHUHTXHVWIRUSURSRVDOIRUPDWDQGRUJDQL]DWLRQ PD\EHUHPRYHGIURPIXUWKHUFRQVLGHUDWLRQ5HVSRQVHVDUHH[SHFWHGWRSURYLGHDVWUDLJKWIRUZDUGDQGFRQFLVH GHVFULSWLRQRIWKHUHVSRQGHU¶VDELOLW\WRPHHWWKHUHTXLUHPHQWV0$5.(7,1*0$7(5,$/6:,//127%($&&(37(' $6$5(63216(  7KHUHVSRQVHWRWKLV5HTXHVWIRU3URSRVDO 5)3 PXVWEHUHWXUQHGVHDOHG6HDOHGUHVSRQVHVPXVWEHUHFHLYHGLQWKH RIILFHRIWKH'LUHFWRURIWKH0DWHULDOV0DQDJHPHQW'LYLVLRQDQGWLPHVWDPSHGQRODWHUWKDQWKHGDWHDQGWLPH VSHFLILHGLQWKHVFKHGXOHRIHYHQWVDWZKLFKWLPHWKHQDPHVRIWKHYHQGRUVUHVSRQGLQJWRWKLV5)3ZLOOEHUHDG/DWH UHVSRQVHVFDQQRWEHFRQVLGHUHG7KHODZVRI0LQQ6WDW&K&DQGDOORWKHUDSSOLFDEOHODZVDSSO\WRWKLV5HTXHVW IRU3URSRVDO  1$55$7,9(5(63216(  x 87,/,=('28%/(6,'('35,17,1*'2127,1&/8'(811(&(66$5<%,1'(56 

 6(&7,210$67(5$*5((0(177(506$1'&21',7,216_B  x &/($5/<7$%$1'0$5.($&+'2&80(17$&&25',1*726(&7,216$6127(',17+( 7$%/(2)&217(176  6XEPLW25,*,1$/DQG&23,(6RIWKHQDUUDWLYHUHVSRQVH6XEPLWDQHOHFWURQLFYHUVLRQLQDVHDUFKDEOHSGIDQG DOVRDQXQORFNHGZRUGGRFXPHQW 7KHRULJLQDOFRS\RIWKHUHVSRQVHPXVWEHVLJQHGE\DQDXWKRUL]HGPHPEHURIWKHILUPDQGPDUNHG2ULJLQDO  'RQRWLQFOXGHWKH&267352326$/LQWKHQDUUDWLYHUHVSRQVH7KH&RVWSURSRVDODUHWREHVXEPLWWHGVHDOHG DQGVHSDUDWHO\   &267352326$/  x 68%0,76(3$5$7(/<)5201$55$7,9(,16($/('(19(/23&/($5/<0$5.('&267352326$/  6XEPLW25,*,1$/35,17('&267352326$/LQDVHSDUDWHVHDOHGHQYHORSHPDUNHG&RVW3URSRVDO6XEPLW DQHOHFWURQLFYHUVLRQLQDVHDUFKDEOHSGIZRUGDQGDQXQORFNHG(;&(/GRFXPHQW  5HVSRQVHVDUHWREHVHDOHGLQPDLOLQJHQYHORSHVRUSDFNDJHVZLWKWKHUHVSRQGHU¶VQDPHDQGDGGUHVVFOHDUO\ZULWWHQ RQWKHRXWVLGH2QFHWKH5)3LVDZDUGHGWKHRULJLQDOFRSLHVZLOOEHNHSWEXWDOORWKHUFRSLHVDQGWKHHOHFWURQLF FRSLHVPD\EHGHVWUR\HG  &RVWVIRUGHYHORSLQJDUHVSRQVHWRWKLV5)3DUHHQWLUHO\WKHUHVSRQGHU¶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ate/Time ACTION September 16, 2013 Publish RFP Optional Pre-Proposal Webinar October 1, 2013 To register for webinar: 1:00 p.m. – 3:30 p.m. Central Time KWWSVDPUPVHYHQWVZHEH[FRPDPUPVHYHQWVRQVWDJHJSKS"G  W D Questions Due October 7, 2013 reference the section and item to which question pertains. Due 3:00 P.M. CT Accepted via email to [email protected] ORIGINAL: NOVEMBER 18, 2013 Proposal Due Date/Proposal Opening 3:00 P.M. CT REVISED: JANUARY 21, 2014 Proposal Due Date/Proposal Opening 3:00 P.M. CT   7$;3$<(5,'(17,),&$7,217KH&RQWUDFW9HQGRUVKDOOEHUHJLVWHUHGDVDYHQGRUWRWKH/HDG6WDWHLQWKH6:,)7 3URFXUHPHQW6\VWHP5HJLVWUDWLRQPXVWEHGRQHRQOLQHDWKWWSZZZPPEVWDWHPQXVYHQGRUUHVRXUFHV 

 6(&7,210$67(5$*5((0(177(506$1'&21',7,216_B  

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±LQFOXGHDOOWDEV3ULFLQJEDVHGRQ 1RYWK  6LJQHG$GGHQGXPV LIDSSOLFDEOH   5HVSRQVHWR0DVWHU$JUHHPHQW7HUPV &RQGLWLRQV $' LQRUGHUSUHVHQWHGLQWKH5)3FOHDUO\PDUNHGDQGWDEEHG $FFHSWDQFHRI7HUPVRIFRQGLWLRQPXVWEHQRWHGDQGDOWHUQDWLYHODQJXDJHSUHVHQWHG8WLOL]H([FHSWLRQIRUPSURYLGHG  5HVSRQVHWR5HTXLUHPHQWVLQRUGHUSUHVHQWHGLQWKH5)3FOHDUO\PDUNHGDQGWDEEHG'HVFULEH+2:WKH UHTXLUHPHQWZLOOEHPHW127(5HTXLUHPHQWVQHHGWREHFKHFNHG\HVRUQR,IFKHFNHGQRUHVSRQVHPD\EH UHMHFWHG9HQGRUVVKRXOGH[SUHVVFRQFHUQVUHJDUGLQJUHTXLUHPHQWVGXULQJWKHTXHVWLRQDQGDQVZHUSHULRG,I $//YHQGRUVDUHXQDEOHWRPHHWWKHUHTXLUHPHQWWKH/HDG6WDWHUHVHUYHVWKHULJKWWRZDLYHWKHUHTXLUHPHQW  )RUPVLQFOXGHGLQ5)3 BBB6LJQDWXUH3DJH BBB$IILUPDWLYH$FWLRQ&HUWLILFDWLRQ BBB7UDGH6HFUHW,QIRUPDWLRQ 127(7UDGHVHFUHWLQIRUPDWLRQPXVWEHUHGDFWHGIURPSURSRVDODQGVXEPLWWHGLQVHSDUDWHVHDOHGHQYHORSH FOHDUO\PDUNHGZLWKWKH7UDGH6HFUHW)RUP BBB$IILGDYLWRI1RQ&ROOXVLRQ BBB6HUYLFH 'HOLYHU\ BBB6DYLQJV BBB7D[SD\HU,GHQWLILFDWLRQ BBB9HWHUDQV3UHIHUHQFH BBB4XHVWLRQ)RUP BBB7 &([FHSWLRQ)RUP BBB93$7:&$*$FFHVVLELOLW\)RUP IRUWKHSURSRVHGZHEVLWHVXSSRUWLQJWKHFRQWUDFW    ,QVXUDQFH'RHVQRWQHHGWREHSURYLGHGZLWKSURSRVDOEXWHYLGHQFHPXVWEHSURYLGHGSULRUWRDZDUG5HYLHZDQG FRQILUPFRPSDQ\FDQPHHWWKHVHUHTXLUHPHQWV

 6(&7,210$67(5$*5((0(177(506$1'&21',7,216_B  6(&7,21 0$67(5$*5((0(177(506$1'&21',7,216

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¶V3DUWLFLSDWLQJ$GGHQGXP ³3$´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¶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†RUD3DUWLFLSDWLQJ(QWLW\¶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¶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

 6(&7,210$67(5$*5((0(177(506$1'&21',7,216_B  DVVRFLDWLRQZLWKDQ\RUGHU&DQFHOODWLRQRIWKH0DVWHU$JUHHPHQWGXHWR&RQWUDFW9HQGRUGHIDXOWPD\EHLPPHGLDWH LIGHIDXOWVFDQQRWEHUHDVRQDEO\FXUHGDVDOORZHGSHU'HIDXOWDQG5HPHGLHVWHUP  &21),'(17,$/,7<121',6&/2685($1',1-81&7,9(5(/,() &RQILGHQWLDOLW\&RQWUDFW9HQGRUDFNQRZOHGJHVWKDWLWDQGLWVHPSOR\HHVRUDJHQWVPD\LQWKHFRXUVHRI SURYLGLQJWKH3URGXFWXQGHUWKLV0DVWHU$JUHHPHQWEHH[SRVHGWRRUDFTXLUHLQIRUPDWLRQWKDWLVFRQILGHQWLDOWR 3DUWLFLSDWLQJ(QWLW\RU3DUWLFLSDWLQJ(QWLW\¶VFOLHQWV$Q\DQGDOOLQIRUPDWLRQRIDQ\IRUPWKDWLVPDUNHGDVFRQILGHQWLDO RUZRXOGE\LWVQDWXUHEHGHHPHGFRQILGHQWLDOREWDLQHGE\&RQWUDFW9HQGRURULWVHPSOR\HHVRUDJHQWVLQWKH SHUIRUPDQFHRIWKLV0DVWHU$JUHHPHQWLQFOXGLQJEXWQRWQHFHVVDULO\OLPLWHGWR D DQ\3DUWLFLSDWLQJ(QWLW\UHFRUGV E SHUVRQQHOUHFRUGVDQG F LQIRUPDWLRQFRQFHUQLQJLQGLYLGXDOVLVFRQILGHQWLDOLQIRUPDWLRQRI3DUWLFLSDWLQJ(QWLW\ ³&RQILGHQWLDO,QIRUPDWLRQ´ $Q\UHSRUWVRURWKHUGRFXPHQWVRULWHPV LQFOXGLQJVRIWZDUH WKDWUHVXOWIURPWKHXVHRI WKH&RQILGHQWLDO,QIRUPDWLRQE\&RQWUDFW9HQGRUVKDOOEHWUHDWHGLQWKHVDPHPDQQHUDVWKH&RQILGHQWLDO,QIRUPDWLRQ &RQILGHQWLDO,QIRUPDWLRQGRHVQRWLQFOXGHLQIRUPDWLRQWKDW D LVRUEHFRPHV RWKHUWKDQE\GLVFORVXUHE\&RQWUDFW 9HQGRU SXEOLFO\NQRZQ E LVIXUQLVKHGE\3DUWLFLSDWLQJ(QWLW\WRRWKHUVZLWKRXWUHVWULFWLRQVVLPLODUWRWKRVHLPSRVHG E\WKLV0DVWHU$JUHHPHQW F LVULJKWIXOO\LQ&RQWUDFW9HQGRU¶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¶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¶VTXRWHUHSUHVHQWVDUHFHUWLILFDWLRQFRQVLVWHQWZLWKWKHWHUPVRI SDUDJUDSK6HFWLRQ'0LQQHVRWD7HUPVDQG&RQGLWLRQV  '()$8/76 5(0(',(6 D7KHRFFXUUHQFHRIDQ\RIWKHIROORZLQJHYHQWVVKDOOEHDQHYHQWRIGHIDXOWXQGHUWKLV0DVWHU$JUHHPHQW L1RQSHUIRUPDQFHRIFRQWUDFWXDOUHTXLUHPHQWVRU LL$PDWHULDOEUHDFKRIDQ\WHUPRUFRQGLWLRQRIWKLV0DVWHU$JUHHPHQWRU

 6(&7,210$67(5$*5((0(177(506$1'&21',7,216_B  LLL$Q\UHSUHVHQWDWLRQRUZDUUDQW\E\&RQWUDFW9HQGRULQUHVSRQVHWRWKHVROLFLWDWLRQRULQWKLV0DVWHU$JUHHPHQW SURYHVWREHXQWUXHRUPDWHULDOO\PLVOHDGLQJRU LY,QVWLWXWLRQRISURFHHGLQJVXQGHUDQ\EDQNUXSWF\LQVROYHQF\UHRUJDQL]DWLRQRUVLPLODUODZE\RUDJDLQVW &RQWUDFW9HQGRURUWKHDSSRLQWPHQWRIDUHFHLYHURUVLPLODURIILFHUIRU&RQWUDFW9HQGRURUDQ\RILWVSURSHUW\ ZKLFKLVQRWYDFDWHGRUIXOO\VWD\HGZLWKLQWKLUW\  FDOHQGDUGD\VDIWHUWKHLQVWLWXWLRQRURFFXUUHQFHWKHUHRIRU Y$Q\GHIDXOWVSHFLILHGLQDQRWKHUVHFWLRQRIWKLV0DVWHU$JUHHPHQW E8SRQWKHRFFXUUHQFHRIDQHYHQWRIGHIDXOW/HDG6WDWHVKDOOLVVXHDZULWWHQQRWLFHRIGHIDXOWLGHQWLI\LQJWKHQDWXUH RIWKHGHIDXOWDQGSURYLGLQJDSHULRGRIFDOHQGDUGD\VLQZKLFK&RQWUDFW9HQGRUVKDOOKDYHDQRSSRUWXQLW\WRFXUH WKHGHIDXOW7KH/HDG6WDWHVKDOOQRWEHUHTXLUHGWRSURYLGHDGYDQFHZULWWHQQRWLFHRUDFXUHSHULRGDQGPD\ LPPHGLDWHO\WHUPLQDWHWKLV0DVWHU$JUHHPHQWLQZKROHRULQSDUWLIWKH/HDG6WDWHLQLWVVROHGLVFUHWLRQGHWHUPLQHV WKDWLWLVUHDVRQDEO\QHFHVVDU\WRSUHVHUYHSXEOLFVDIHW\RUSUHYHQWLPPHGLDWHSXEOLFFULVLV7LPHDOORZHGIRUFXUH VKDOOQRWGLPLQLVKRUHOLPLQDWH&RQWUDFW9HQGRU¶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¶VSHUIRUPDQFHDQG YL:LWKKROGSD\PHQWXQWLOWKHGHIDXOWLVUHPHGLHG G,QWKHHYHQWRIDGHIDXOWXQGHUD3DUWLFLSDWLQJ$GGHQGXPD3DUWLFLSDWLQJ(QWLW\VKDOOSURYLGHDZULWWHQQRWLFHRI GHIDXOWDVGHVFULEHGLQWKLVVHFWLRQDQGKDYHDOORIWKHULJKWVDQGUHPHGLHVXQGHUWKLVSDUDJUDSKUHJDUGLQJLWV SDUWLFLSDWLRQLQWKH0DVWHU$JUHHPHQWLQDGGLWLRQWRWKRVHVHWIRUWKLQLWV3DUWLFLSDWLQJ$GGHQGXP8QOHVVRWKHUZLVH VSHFLILHGLQD3XUFKDVH2UGHUD3XUFKDVLQJ(QWLW\VKDOOSURYLGHZULWWHQQRWLFHRIGHIDXOWDVGHVFULEHGLQWKLVVHFWLRQ DQGKDYHDOORIWKHULJKWVDQGUHPHGLHVXQGHUWKLVSDUDJUDSKDQGDQ\DSSOLFDEOH3DUWLFLSDWLQJ$GGHQGXPZLWKUHVSHFW WRDQ2UGHUSODFHGE\WKH3XUFKDVLQJ(QWLW\1RWKLQJLQWKHVH0DVWHU$JUHHPHQW7HUPVDQG&RQGLWLRQVVKDOOEH FRQVWUXHGWROLPLWWKHULJKWVDQGUHPHGLHVDYDLODEOHWRD3XUFKDVLQJ(QWLW\XQGHUWKHDSSOLFDEOHFRPPHUFLDOFRGH  '(/,9(5<8QOHVVRWKHUZLVHLQGLFDWHGLQWKH0DVWHU$JUHHPHQWWKHSULFHVDUHWKHGHOLYHUHGSULFHWRDQ\ 3XUFKDVLQJ(QWLW\$OOGHOLYHULHVVKDOOEH)2%GHVWLQDWLRQZLWKDOOWUDQVSRUWDWLRQDQGKDQGOLQJFKDUJHVSDLGE\WKH &RQWUDFW9HQGRU$GGLWLRQDOGHOLYHU\FKDUJHVZLOOQRWEHDOORZHGIRUEDFNRUGHUV )25&(0$-(85(1HLWKHUSDUW\WRWKLV0DVWHU$JUHHPHQWVKDOOEHKHOGUHVSRQVLEOHIRUGHOD\RUGHIDXOWFDXVHG E\ILUHULRWDFWVRI*RGDQGRUZDUZKLFKLVEH\RQGWKDWSDUW\¶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¶V6WDWH9HQXHIRUDQ\FODLPGLVSXWHRUDFWLRQFRQFHUQLQJDQ RUGHUSODFHGDJDLQVWWKH0DVWHU$JUHHPHQWVRUWKHHIIHFWRID3DUWLFLSDWLQJ$GGHQGXPVKDOOEHLQWKH3XUFKDVLQJ (QWLW\¶V6WDWH   ,1'(01,),&$7,21'(/(7('6((6(&7,21&,1'(01,),&$7,21±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

 6(&7,210$67(5$*5((0(177(506$1'&21',7,216_B  7KH&RQWUDFW9HQGRUZLOODSSO\WKHFKDUJHVDQGLQYRLFHHDFK3XUFKDVLQJ(QWLW\LQGLYLGXDOO\  ,1685$1&(([FHSWWRWKHH[WHQWPRGLILHGE\D3DUWLFLSDWLQJ$GGHQGXP&RQWUDFW9HQGRUVKDOOGXULQJWKHWHUP RIWKLV0DVWHU$JUHHPHQWPDLQWDLQLQIXOOIRUFHDQGHIIHFWWKHLQVXUDQFHGHVFULEHGLQWKLVVHFWLRQ&RQWUDFW9HQGRU VKDOODFTXLUHVXFKLQVXUDQFHIURPDQLQVXUDQFHFDUULHURUFDUULHUVOLFHQVHGWRFRQGXFWEXVLQHVVLQWKH3DUWLFLSDWLQJ (QWLW\¶VVWDWHDQGKDYLQJDUDWLQJRI$&ODVV9,,RUEHWWHULQWKHPRVWUHFHQWO\SXEOLVKHGHGLWLRQRI%HVW¶V5HSRUWV )DLOXUHWREX\DQGPDLQWDLQWKHUHTXLUHGLQVXUDQFHPD\UHVXOWLQWKLV0DVWHU$JUHHPHQW¶VWHUPLQDWLRQRUDWD 3DUWLFLSDWLQJ(QWLW\¶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¶VJHQHUDOOLDELOLW\LQVXUDQFHSROLF\WKDW L QDPHVWKH3DUWLFLSDWLQJ(QWLW\DVDQDGGLWLRQDOLQVXUHG LL SURYLGHVWKDWQRPDWHULDODOWHUDWLRQFDQFHOODWLRQQRQUHQHZDORUH[SLUDWLRQRIWKHFRYHUDJHFRQWDLQHGLQVXFK SROLF\VKDOOKDYHHIIHFWXQOHVVWKHQDPHG3DUWLFLSDWLQJ(QWLW\KDVEHHQJLYHQDWOHDVWWKLUW\  GD\VSULRUZULWWHQ QRWLFHDQG LLL SURYLGHVWKDWWKH&RQWUDFW9HQGRU¶VOLDELOLW\LQVXUDQFHSROLF\VKDOOEHSULPDU\ZLWKDQ\OLDELOLW\ LQVXUDQFHRIWKH3DUWLFLSDWLQJ(QWLW\DVVHFRQGDU\DQGQRQFRQWULEXWRU\  &RQWUDFW9HQGRUVKDOOIXUQLVKWR3DUWLFLSDWLQJ(QWLW\FRSLHVRIFHUWLILFDWHVRIDOOUHTXLUHGLQVXUDQFHZLWKLQWKLUW\   FDOHQGDUGD\VRIWKH3DUWLFLSDWLQJ$GGHQGXP¶VHIIHFWLYHGDWHDQGSULRUWRSHUIRUPLQJDQ\ZRUN&RSLHVRIUHQHZDO FHUWLILFDWHVRIDOOUHTXLUHGLQVXUDQFHVKDOOEHIXUQLVKHGZLWKLQWKLUW\  GD\VDIWHUUHQHZDOGDWH7KHVHFHUWLILFDWHVRI LQVXUDQFHPXVWH[SUHVVO\LQGLFDWHFRPSOLDQFHZLWKHDFKDQGHYHU\LQVXUDQFHUHTXLUHPHQWVSHFLILHGLQWKLVVHFWLRQ )DLOXUHWRSURYLGHHYLGHQFHRIFRYHUDJHPD\DWWKH/HDG6WDWH0DVWHU$JUHHPHQW$GPLQLVWUDWRU¶VVROHRSWLRQUHVXOW LQWKLV0DVWHU$JUHHPHQW¶VWHUPLQDWLRQ  &RYHUDJHDQGOLPLWVVKDOOQRWOLPLW&RQWUDFW9HQGRU¶VOLDELOLW\DQGREOLJDWLRQVXQGHUWKLV0DVWHU$JUHHPHQW  /$:6$1'5(*8/$7,216$Q\DQGDOOVXSSOLHVVHUYLFHVDQGHTXLSPHQWRIIHUHGDQGIXUQLVKHGVKDOOFRPSO\ IXOO\ZLWKDOODSSOLFDEOH)HGHUDODQG6WDWHODZVDQGUHJXODWLRQV  /,&(16(2)35((;,67,1*,17(//(&78$/3523(57<'(/(7('±6((6(&7,21%)255(9,6(' 7(50$''5(66,1*7,7/(2)352'8&7 12:$,9(52)629(5(,*1,0081,7<7KH/HDG6WDWH3DUWLFLSDWLQJ(QWLW\RU3XUFKDVLQJ(QWLW\WRWKHH[WHQW LWDSSOLHVGRHVQRWZDLYHLWVVRYHUHLJQLPPXQLW\E\HQWHULQJLQWRWKLV&RQWUDFWDQGIXOO\UHWDLQVDOOLPPXQLWLHVDQG GHIHQVHVSURYLGHGE\ODZZLWKUHJDUGWRDQ\DFWLRQEDVHGRQWKLV&RQWUDFW  ,IDFODLPPXVWEHEURXJKWLQDIHGHUDOIRUXPWKHQLWPXVWEHEURXJKWDQGDGMXGLFDWHGVROHO\DQG H[FOXVLYHO\ZLWKLQWKH8QLWHG6WDWHV'LVWULFW&RXUWRIWKH3DUWLFLSDWLQJ(QWLW\¶V6WDWH  25'(5180%(56&RQWUDFWRUGHUDQGSXUFKDVHRUGHUQXPEHUVVKDOOEHFOHDUO\VKRZQRQDOO DFNQRZOHGJPHQWVVKLSSLQJODEHOV LISRVVLEOH SDFNLQJVOLSVLQYRLFHVDQGRQDOOFRUUHVSRQGHQFH  3$57,&,3$176:6&$1$632&RRSHUDWLYH3XUFKDVLQJ2UJDQL]DWLRQ//&LVQRWDSDUW\WRWKH0DVWHU $JUHHPHQW,WLVDQRQSURILWFRRSHUDWLYHSXUFKDVLQJRUJDQL]DWLRQDVVLVWLQJVWDWHVLQDGPLQLVWHULQJWKH:6&$1$632 FRRSHUDWLYHSXUFKDVLQJSURJUDPIRUVWDWHJRYHUQPHQWGHSDUWPHQWVLQVWLWXWLRQVDJHQFLHVDQGSROLWLFDOVXEGLYLVLRQV HJFROOHJHVVFKRROGLVWULFWVFRXQWLHVFLWLHVHWF IRUDOOVWDWHVDQGWKH'LVWULFWRI&ROXPELD2EOLJDWLRQVXQGHU WKLV0DVWHU$JUHHPHQWDUHOLPLWHGWRWKRVH3DUWLFLSDWLQJ6WDWHVZKRKDYHVLJQHGD3DUWLFLSDWLQJ$GGHQGXPZKHUH FRQWHPSODWHGE\WKHVROLFLWDWLRQ)LQDQFLDOREOLJDWLRQVRI3DUWLFLSDWLQJ6WDWHVDUHOLPLWHGWRWKHRUGHUVSODFHGE\WKH GHSDUWPHQWVRURWKHUVWDWHDJHQFLHVDQGLQVWLWXWLRQVKDYLQJDYDLODEOHIXQGV3DUWLFLSDWLQJ6WDWHVLQFXUQRILQDQFLDO

 6(&7,210$67(5$*5((0(177(506$1'&21',7,216_B  REOLJDWLRQVRQEHKDOIRISROLWLFDOVXEGLYLVLRQV8QOHVVRWKHUZLVHVSHFLILHGLQWKHVROLFLWDWLRQWKHUHVXOWLQJDZDUGZLOOEH SHUPLVVLYH

3$57,&,3$7,212)(17,7,(68VHRIVSHFLILF:6&$1$632FRRSHUDWLYH0DVWHU$JUHHPHQWVE\VWDWH DJHQFLHVSROLWLFDOVXEGLYLVLRQVDQGRWKHUHQWLWLHV LQFOXGLQJFRRSHUDWLYHV DXWKRUL]HGE\LQGLYLGXDOVWDWH¶VVWDWXWHVWR XVHVWDWHFRQWUDFWVDUHVXEMHFWWRWKHDSSURYDORIWKHUHVSHFWLYH6WDWH&KLHI3URFXUHPHQW2IILFLDO,VVXHVRI LQWHUSUHWDWLRQDQGHOLJLELOLW\IRUSDUWLFLSDWLRQDUHVROHO\ZLWKLQWKHDXWKRULW\RIWKHUHVSHFWLYH6WDWH&KLHI3URFXUHPHQW 2IILFLDO

3$<0(173D\PHQWIRUFRPSOHWLRQRIDQRUGHUXQGHUWKLV0DVWHU$JUHHPHQWLVQRUPDOO\PDGHZLWKLQGD\V IROORZLQJWKHGDWHWKHHQWLUHRUGHULVGHOLYHUHGRUWKHGDWHDFRUUHFWLQYRLFHLVUHFHLYHGZKLFKHYHULVODWHU$IWHU GD\VWKH&RQWUDFW9HQGRUPD\DVVHVVRYHUGXHDFFRXQWFKDUJHVXSWRDPD[LPXPUDWHRIRQHSHUFHQWSHUPRQWK RQWKHRXWVWDQGLQJEDODQFH3D\PHQWVZLOOEHUHPLWWHGE\PDLO3D\PHQWVPD\EHPDGHYLDD6WDWHRUSROLWLFDO VXEGLYLVLRQ³3XUFKDVLQJ&DUG´ZLWKQRDGGLWLRQDOFKDUJH  38%/,&,1)250$7,217KH0DVWHU$JUHHPHQWDQGDOOUHODWHGGRFXPHQWVDUHVXEMHFWWRGLVFORVXUHSXUVXDQWWR WKH3DUWLFLSDWLQJ(QWLW\¶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¶VUHFRUGV  7KHULJKWVDQGREOLJDWLRQVKHUHLQULJKWH[LVWLQDGGLWLRQWRDQ\TXDOLW\DVVXUDQFHREOLJDWLRQLQWKH0DVWHU$JUHHPHQW UHTXLULQJWKH&RQWUDFWRUWRVHOIDXGLWFRQWUDFWREOLJDWLRQVDQGWKDWSHUPLWVWKH/HDG6WDWH0DVWHU$JUHHPHQW $GPLQLVWUDWRUWRUHYLHZFRPSOLDQFHZLWKWKRVHREOLJDWLRQV  5HFRUGVZLOOEHUHWDLQHGORQJHULIUHTXLUHGE\3DUWLFLSDWLQJ(QWLW\¶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¶V SXEOLVKHGVSHFLILFDWLRQV DND³6SHFLILFDWLRQV´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¶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³ZRUNVIRUKLUH´DVGHILQHGLQWKH86&RS\ULJKW$FW

 6(&7,210$67(5$*5((0(177(506$1'&21',7,216_B   F 1RWZLWKVWDQGLQJWKHDERYHWKH3XUFKDVLQJ(QWLW\ZLOOQRWRZQDQ\RIWKH&RQWUDFW9HQGRU¶VSUHH[LVWLQJ LQWHOOHFWXDOSURSHUW\WKDWZDVFUHDWHGSULRUWRWKH0DVWHU$JUHHPHQWDQGZKLFKWKH3XUFKDVLQJ(QWLW\GLGQRWSD\ WKH&RQWUDFW9HQGRUWRFUHDWH7KH&RQWUDFW9HQGRUJUDQWVWKH3XUFKDVLQJ(QWLW\DSHUSHWXDOLUUHYRFDEOHQRQ H[FOXVLYHUR\DOW\IUHHOLFHQVHIRU&RQWUDFW9HQGRU¶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¶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¶VZHEVLWHWREHRIIHUHGXQGHUWKH&RQWUDFW)RUSURGXFWVRIIHUHG93$76DUHRQO\WREHSURYLGHGXSRQ UHTXHVWE\WKHSDUWLFLSDWLQJHQWLW\  8SRQUHTXHVWE\WKHSDUWLFLSDWLQJHQWLW\WKHUHVSRQGHUPXVWPDNHEHVWHIIRUWVWRSURYLGH9ROXQWDU\3URGXFW $FFHVVLELOLW\7HPSODWHV 93$76 IRUDOOSURGXFWVRIIHUHGLQLWVUHVSRQVH&OLFNKHUHIRUOLQNWR93$76IRUERWK6HFWLRQ 93$7DQG:&$*93$7KWWSPQJRYRHWSROLFLHVDQGVWDQGDUGVDFFHVVLELOLW\   $'0,1,675$7,9(3(56211(/&+$1*(67KH&RQWUDFW9HQGRUPXVWQRWLI\WKH&RQWUDFW$GPLQLVWUDWRURI FKDQJHVLQWKH&RQWUDFW9HQGRU¶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¶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±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³&HUWLILFDWLRQ5HJDUGLQJ'HEDUPHQW6XVSHQVLRQ,QHOLJLELOLW\DQG9ROXQWDU\([FOXVLRQ±/RZHU7LHU &RYHUHG7UDQVDFWLRQ´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±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

 6(&7,210$67(5$*5((0(177(506$1'&21',7,216_B  SURGXFWVEHLQJUHFRPPHQGHGIRULQFOXVLRQLQWKH0DVWHU$JUHHPHQWDVZHOODVGHILQLQJKRZDGGLQJWKHSURGXFWZLOO HQKDQFHWKH0DVWHU$JUHHPHQW7KH/HDG6WDWHPD\UHTXHVWWKDWSURGXFWVRWKHUWKDQWKRVHUHFRPPHQGHGDUH DGGHGWRWKH0DVWHU$JUHHPHQW  ,QWKHHYHQWWKDWWKH/HDG6WDWHGHVLUHVWRDGGQHZSURGXFWVDQGVHUYLFHVWKDWDUHQRWLQFOXGHGLQWKHRULJLQDO0DVWHU $JUHHPHQWWKH/HDG6WDWHUHTXLUHVWKDWLQGHSHQGHQWPDQXIDFWXUHUVDQGUHVHOOHUVFRRSHUDWHZLWKWKHDOUHDG\ HVWDEOLVKHG&RQWUDFW9HQGRULQRUGHUWRPHHWWKH/HDG6WDWH¶VUHTXLUHPHQWV(YLGHQFHRIWKHQHHGWRDGGSURGXFWVRU VHUYLFHVVKRXOGEHGHPRQVWUDWHGWRWKH/HDG6WDWH7KH0DVWHU$JUHHPHQWVKDOOEHPRGLILHGYLDVXSSOHPHQWRU DPHQGPHQW7KH/HDG6WDWHZLOOQHJRWLDWHWKHLQFOXVLRQRIWKHSURGXFWVDQGVHUYLFHVZLWKWKH&RQWUDFW9HQGRU1R SURGXFWVRUVHUYLFHVZLOOEHDGGHGWRWKH0DVWHU$JUHHPHQWZLWKRXWWKH/HDG6WDWH¶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¶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†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

 6(&7,210$67(5$*5((0(177(506$1'&21',7,216_B    +80$15,*+76$)),50$7,9($&7,217KH/HDG6WDWHUHTXLUHVDIILUPDWLYHDFWLRQFRPSOLDQFHE\LWV&RQWUDFW 9HQGRUVLQDFFRUGDQFHZLWK0LQQ6WDW†$DQG0LQQ5WR  D &RYHUHGFRQWUDFWVDQG&RQWUDFW9HQGRUV2QHWLPHDFTXLVLWLRQVRUDFRQWUDFWIRUDSUHGHWHUPLQHGDPRXQWRI JRRGVDQGRUVHUYLFHVZKHUHWKHDPRXQWRI\RXUUHVSRQVHLVLQH[FHVVRIUHTXLUHVFRPSOHWLRQRIWKH $IILUPDWLYH$FWLRQ&HUWLILFDWLRQSDJH,IWKHVROLFLWDWLRQLVIRUDFRQWUDFWIRUDQLQGHWHUPLQDWHDPRXQWRIJRRGV DQGRUVHUYLFHVDQGWKH6WDWHHVWLPDWHGWRWDOYDOXHRIWKHFRQWUDFWH[FHHGVZKHWKHULWZLOOEHDPXOWLSOH DZDUGFRQWUDFWRUQRW\RXPXVWFRPSOHWHWKH$IILUPDWLYH$FWLRQ&HUWLILFDWLRQSDJH,IWKHFRQWUDFWGROODUDPRXQWRU WKH6WDWHHVWLPDWHGWRWDOFRQWUDFWDPRXQWH[FHHGVDQGWKH&RQWUDFW9HQGRUHPSOR\HGPRUHWKDQ IXOOWLPHHPSOR\HHVRQDVLQJOHZRUNLQJGD\GXULQJWKHSUHYLRXVPRQWKVLQ0LQQHVRWDRULQWKHVWDWHZKHUH LWKDVLWVSULQFLSDOSODFHRIEXVLQHVVWKH&RQWUDFW9HQGRUPXVWFRPSO\ZLWKWKHUHTXLUHPHQWVRI0LQQ6WDW †$VXEGDQG0LQQ5WR$&RQWUDFW9HQGRUFRYHUHGE\0LQQ6WDW†$ VXEGDQG0LQQ5WRWKDWKDGPRUHWKDQIXOOWLPHHPSOR\HHVZLWKLQ0LQQHVRWDRQD VLQJOHZRUNLQJGD\GXULQJWKHSUHYLRXVPRQWKVPXVWKDYHDFHUWLILFDWHRIFRPSOLDQFHLVVXHGE\WKH FRPPLVVLRQHURIWKH'HSDUWPHQWRI+XPDQ5LJKWV FHUWLILFDWHRIFRPSOLDQFH $&RQWUDFW9HQGRUFRYHUHGE\ 0LQQ6WDW†$VXEGWKDWGLGQRWKDYHPRUHWKDQIXOOWLPHHPSOR\HHVRQDVLQJOHZRUNLQJGD\GXULQJ WKHSUHYLRXVPRQWKVZLWKLQ0LQQHVRWDEXWWKDWGLGKDYHPRUHWKDQIXOOWLPHHPSOR\HHVLQWKHVWDWHZKHUHLW KDVLWVSULQFLSDOSODFHRIEXVLQHVVDQGWKDWGRHVQRWKDYHDFHUWLILFDWHRIFRPSOLDQFHPXVWFHUWLI\WKDWLWLVLQ FRPSOLDQFHZLWKIHGHUDODIILUPDWLYHDFWLRQUHTXLUHPHQWV  E 0LQQ6WDW†$VXEGUHTXLUHVWKH&RQWUDFW9HQGRUWRKDYHDQDIILUPDWLYHDFWLRQSODQIRUWKHHPSOR\PHQW RIPLQRULW\SHUVRQVZRPHQDQGTXDOLILHGGLVDEOHGLQGLYLGXDOVDSSURYHGE\WKHFRPPLVVLRQHURIWKH'HSDUWPHQW RI+XPDQ5LJKWV FRPPLVVLRQHU DVLQGLFDWHGE\DFHUWLILFDWHRIFRPSOLDQFH0LQQ6WDW†$DGGUHVVHV VXVSHQVLRQRUUHYRFDWLRQRIDFHUWLILFDWHRIFRPSOLDQFHDQGFRQWUDFWFRQVHTXHQFHVLQWKDWHYHQW$FRQWUDFW DZDUGHGZLWKRXWDFHUWLILFDWHRIFRPSOLDQFHPD\EHYRLGHG  F 0LQQ5LPSOHPHQW0LQQ6WDW†$7KHVHUXOHVLQFOXGHEXWDUHQRWOLPLWHGWR FULWHULDIRUFRQWHQWVDSSURYDODQGLPSOHPHQWDWLRQRIDIILUPDWLYHDFWLRQSODQVSURFHGXUHVIRULVVXLQJFHUWLILFDWHVRI FRPSOLDQFHDQGFULWHULDIRUGHWHUPLQLQJD&RQWUDFW9HQGRU¶VFRPSOLDQFHVWDWXVSURFHGXUHVIRUDGGUHVVLQJ GHILFLHQFLHVVDQFWLRQVDQGQRWLFHDQGKHDULQJDQQXDOFRPSOLDQFHUHSRUWVSURFHGXUHVIRUFRPSOLDQFHUHYLHZ DQGFRQWUDFWFRQVHTXHQFHVIRUQRQFRPSOLDQFH7KHVSHFLILFFULWHULDIRUDSSURYDORUUHMHFWLRQRIDQDIILUPDWLYH DFWLRQSODQDUHFRQWDLQHGLQYDULRXVSURYLVLRQVRI0LQQ5LQFOXGLQJEXWQRWOLPLWHGWR SDUWVDQGSDUWV  G 'LVDEOHG:RUNHUV0LQQ5SURYLGHVWKH&RQWUDFW9HQGRUPXVWFRPSO\ZLWKWKHIROORZLQJDIILUPDWLYH DFWLRQUHTXLUHPHQWVIRUGLVDEOHGZRUNHUV  $)),50$7,9($&7,21)25',6$%/(':25.(56  D  7KH&RQWUDFW9HQGRUPXVWQRWGLVFULPLQDWHDJDLQVWDQ\HPSOR\HHRUDSSOLFDQWIRUHPSOR\PHQWEHFDXVHRI SK\VLFDORUPHQWDOGLVDELOLW\LQUHJDUGWRDQ\SRVLWLRQIRUZKLFKWKHHPSOR\HHRUDSSOLFDQWIRUHPSOR\PHQWLV TXDOLILHG7KH&RQWUDFW9HQGRUDJUHHVWRWDNHDIILUPDWLYHDFWLRQWRHPSOR\DGYDQFHLQHPSOR\PHQWDQG RWKHUZLVHWUHDWTXDOLILHGGLVDEOHGSHUVRQVZLWKRXWGLVFULPLQDWLRQEDVHGXSRQWKHLUSK\VLFDORUPHQWDOGLVDELOLW\ LQDOOHPSOR\PHQWSUDFWLFHVVXFKDVWKHIROORZLQJHPSOR\PHQWXSJUDGLQJGHPRWLRQRUWUDQVIHUUHFUXLWPHQW DGYHUWLVLQJOD\RIIRUWHUPLQDWLRQUDWHVRISD\RURWKHUIRUPVRIFRPSHQVDWLRQDQGVHOHFWLRQIRUWUDLQLQJ LQFOXGLQJDSSUHQWLFHVKLS  E  7KH&RQWUDFW9HQGRUDJUHHVWRFRPSO\ZLWKWKHUXOHVDQGUHOHYDQWRUGHUVRIWKH0LQQHVRWD'HSDUWPHQWRI +XPDQ5LJKWVLVVXHGSXUVXDQWWRWKH0LQQHVRWD+XPDQ5LJKWV$FW  F  ,QWKHHYHQWRIWKH&RQWUDFW9HQGRU¶VQRQFRPSOLDQFHZLWKWKHUHTXLUHPHQWVRIWKLVFODXVHDFWLRQVIRU QRQFRPSOLDQFHPD\EHWDNHQLQDFFRUGDQFHZLWK0LQQ6WDW†$DQGWKHUXOHVDQGUHOHYDQWRUGHUVRI WKH0LQQHVRWD'HSDUWPHQWRI+XPDQ5LJKWVLVVXHGSXUVXDQWWRWKH0LQQHVRWD+XPDQ5LJKWV$FW  G  7KH&RQWUDFW9HQGRUDJUHHVWRSRVWLQFRQVSLFXRXVSODFHVDYDLODEOHWRHPSOR\HHVDQGDSSOLFDQWVIRU HPSOR\PHQWQRWLFHVLQDIRUPWREHSUHVFULEHGE\WKHFRPPLVVLRQHURIWKH0LQQHVRWD'HSDUWPHQWRI+XPDQ 5LJKWV6XFKQRWLFHVPXVWVWDWHWKH&RQWUDFW9HQGRU¶VREOLJDWLRQXQGHUWKHODZWRWDNHDIILUPDWLYHDFWLRQWR

 6(&7,210$67(5$*5((0(177(506$1'&21',7,216_B  HPSOR\DQGDGYDQFHLQHPSOR\PHQWTXDOLILHGGLVDEOHGHPSOR\HHVDQGDSSOLFDQWVIRUHPSOR\PHQWDQGWKH ULJKWVRIDSSOLFDQWVDQGHPSOR\HHV  H  7KH&RQWUDFW9HQGRUPXVWQRWLI\HDFKODERUXQLRQRUUHSUHVHQWDWLYHRIZRUNHUVZLWKZKLFKLWKDVDFROOHFWLYH EDUJDLQLQJDJUHHPHQWRURWKHUFRQWUDFWXQGHUVWDQGLQJWKDWWKH&RQWUDFW9HQGRULVERXQGE\WKHWHUPVRI 0LQQ6WDW†$RIWKH0LQQHVRWD+XPDQ5LJKWV$FWDQGLVFRPPLWWHGWRWDNHDIILUPDWLYHDFWLRQWR HPSOR\DQGDGYDQFHLQHPSOR\PHQWSK\VLFDOO\DQGPHQWDOO\GLVDEOHGSHUVRQV  H &RQVHTXHQFHV7KHFRQVHTXHQFHVRID&RQWUDFW9HQGRU¶VIDLOXUHWRLPSOHPHQWLWVDIILUPDWLYHDFWLRQSODQRUPDNH DJRRGIDLWKHIIRUWWRGRVRLQFOXGHEXWDUHQRWOLPLWHGWRVXVSHQVLRQRUUHYRFDWLRQRIDFHUWLILFDWHRIFRPSOLDQFH E\WKHFRPPLVVLRQHUUHIXVDOE\WKHFRPPLVVLRQHUWRDSSURYHVXEVHTXHQWSODQVDQGWHUPLQDWLRQRIDOORUSDUWRI WKH&RQWUDFWE\WKHFRPPLVVLRQHURUWKH6WDWH  I &HUWLILFDWLRQ7KH&RQWUDFW9HQGRUKHUHE\FHUWLILHVWKDWLWLVLQFRPSOLDQFHZLWKWKHUHTXLUHPHQWVRI0LQQ6WDW †$VXEGDQG0LQQ5DQGLVDZDUHRIWKHFRQVHTXHQFHVIRUQRQFRPSOLDQFH,W LVDJUHHGEHWZHHQWKHSDUWLHVWKDW0LQQ6WDWDQG0LQQ5WRDUHLQFRUSRUDWHGLQWR DQ\FRQWUDFWEHWZHHQWKHVHSDUWLHVEDVHGXSRQWKLVVSHFLILFDWLRQRUDQ\PRGLILFDWLRQRILW$FRS\RI0LQQ6WDW †$DQG0LQQ5WRDUHDYDLODEOHXSRQUHTXHVWIURPWKHFRQWUDFWLQJDJHQF\   ,1'(01,),&$7,217KH&RQWUDFW9HQGRUVKDOOLQGHPQLI\SURWHFWVDYHDQGKROGKDUPOHVVWKH/HDG6WDWHDQGWKH 3DUWLFLSDWLQJ(QWLW\LWVUHSUHVHQWDWLYHVDQGHPSOR\HHVIURPDQ\DQGDOOFODLPVRUFDXVHVRIDFWLRQLQFOXGLQJDOOOHJDO IHHVLQFXUUHGE\WKH/HDG6WDWHDQGWKH3DUWLFLSDWLQJ(QWLW\DULVLQJIURPWKHSHUIRUPDQFHRIWKH0DVWHU$JUHHPHQWE\ WKH&RQWUDFW9HQGRURULWVDJHQWVHPSOR\HHVRUVXEFRQWUDFWRUV7KLVFODXVHVKDOOQRWEHFRQVWUXHGWREDUDQ\OHJDO UHPHGLHVWKH&RQWUDFW9HQGRUPD\KDYHZLWKWKH/HDG6WDWH¶VDQG3DUWLFLSDWLQJ(QWLW\¶VIDLOXUHWRIXOILOOLWVREOLJDWLRQV SXUVXDQWWRWKH0DVWHU$JUHHPHQW  ,IWKH3DUWLFLSDWLQJ(QWLW\¶VODZVUHTXLUHDSSURYDORIDWKLUGSDUW\WRGHIHQG3DUWLFLSDWLQJ(QWLW\3DUWLFLSDWLQJ(QWLW\ZLOO VHHNVXFKDSSURYDODQGLIDSSURYDOLVQRWUHFHLYHG&RQWUDFW9HQGRULVQRWUHTXLUHGWRGHIHQGWKDW3DUWLFLSDWLQJ(QWLW\  ,17(//(&78$/3523(57<,1'(01,),&$7,217KH&RQWUDFW9HQGRUZDUUDQWVWKDWDQ\PDWHULDOVRUSURGXFWV SURYLGHGRUSURGXFHGE\WKH&RQWUDFW9HQGRURUXWLOL]HGE\WKH&RQWUDFW9HQGRULQWKHSHUIRUPDQFHRIWKLV0DVWHU $JUHHPHQWZLOOQRWLQIULQJHXSRQRUYLRODWHDQ\SDWHQWFRS\ULJKWWUDGHVHFUHWRUDQ\RWKHUSURSULHWDU\ULJKWRIDQ\ WKLUGSDUW\,QWKHHYHQWRIDQ\VXFKFODLPE\DQ\WKLUGSDUW\DJDLQVWWKH3DUWLFLSDWLQJ(QWLW\WKH3DUWLFLSDWLQJ(QWLW\ VKDOOSURPSWO\QRWLI\WKH&RQWUDFW9HQGRU7KH&RQWUDFW9HQGRUDWLWVRZQH[SHQVHVKDOOLQGHPQLI\GHIHQGWRWKH H[WHQWSHUPLWWHGE\WKH3DUWLFLSDWLQJ(QWLW\¶VODZVDQGKROGKDUPOHVVWKH3DUWLFLSDWLQJ(QWLW\DJDLQVWDQ\ORVVFRVW H[SHQVHRUOLDELOLW\ LQFOXGLQJOHJDOIHHV DULVLQJRXWRIVXFKDFODLPZKHWKHURUQRWVXFKFODLPLVVXFFHVVIXODJDLQVW WKH3DUWLFLSDWLQJ(QWLW\  ,IVXFKDFODLPKDVRFFXUUHGRULQWKH&RQWUDFW9HQGRU¶VRSLQLRQLVOLNHO\WRRFFXUWKH&RQWUDFW9HQGRUVKDOOHLWKHU SURFXUHIRUWKH3DUWLFLSDWLQJ(QWLW\WKHULJKWWRFRQWLQXHXVLQJWKHPDWHULDOVRUSURGXFWVRUUHSODFHPHQWRUPRGLILHG PDWHULDOVRUSURGXFWV,IDQRSWLRQVDWLVIDFWRU\WRWKH3DUWLFLSDWLQJ(QWLW\LVQRWUHDVRQDEO\DYDLODEOHWKH3DUWLFLSDWLQJ (QWLW\VKDOOUHWXUQWKHPDWHULDOVRUSURGXFWVWRWKH&RQWUDFW9HQGRUXSRQZULWWHQUHTXHVWRIWKH&RQWUDFW9HQGRUDQG DWWKH&RQWUDFW9HQGRU¶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†SURKLELWLQJGLVFULPLQDWLRQDQG EXVLQHVVUHJLVWUDWLRQUHTXLUHPHQWVRIWKH2IILFHRIWKH0LQQHVRWD6HFUHWDU\RI6WDWH   1219,68$/$&&(6667$1'$5'63XUVXDQWWR0LQQ6WDW†&WKH&RQWUDFW9HQGRUVKDOOFRPSO\ZLWKWKH IROORZLQJQRQYLVXDOWHFKQRORJ\DFFHVVVWDQGDUGV

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†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Ɣ D&RQWUDFW9HQGRULVXQDEOHRUSRWHQWLDOO\XQDEOHWRUHQGHULPSDUWLDODVVLVWDQFHRUDGYLFHWRWKH6WDWH Ɣ WKH&RQWUDFW9HQGRU¶VREMHFWLYLW\LQSHUIRUPLQJWKHZRUNLVRUPLJKWEHRWKHUZLVHLPSDLUHGRU Ɣ WKH&RQWUDFW9HQGRUKDVDQXQIDLUFRPSHWLWLYHDGYDQWDJH  7KH&RQWUDFW9HQGRUDJUHHVWKDWLIDQRUJDQL]DWLRQDOFRQIOLFWRILQWHUHVWLVGLVFRYHUHGDIWHUDZDUGDQLPPHGLDWHDQG IXOOGLVFORVXUHLQZULWLQJVKDOOEHPDGHWRWKH$VVLVWDQW'LUHFWRURIWKH'HSDUWPHQWRI$GPLQLVWUDWLRQ¶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³&RQWUDFW´³&RQWUDFW9HQGRU´³0DVWHU $JUHHPHQW´³0DVWHU$JUHHPHQW$GPLQLVWUDWRU´DQG³&RQWUDFW$GPLQLVWUDWRU´PRGLILHGDSSURSULDWHO\WRSUHVHUYHWKH 6WDWH¶VULJKWV   3$<0(17&$5',1'8675<'$7$6(&85,7<67$1'$5'$1'&$5'+2/'(5,1)250$7,216(&85,7< &RQWUDFW9HQGRUDVVXUHVDOORILWV1HWZRUN&RPSRQHQWV$SSOLFDWLRQV6HUYHUVDQG6XEFRQWUDFWRUV LIDQ\ FRPSO\ ZLWKWKH3D\PHQW&DUG,QGXVWU\'DWD6HFXULW\6WDQGDUG ³3&,'66´ ³1HWZRUN&RPSRQHQWV´VKDOOLQFOXGHEXWDUHQRW OLPLWHGWR&RQWUDFW9HQGRU¶VILUHZDOOVVZLWFKHVURXWHUVZLUHOHVVDFFHVVSRLQWVQHWZRUNDSSOLDQFHVDQGRWKHU VHFXULW\DSSOLDQFHV³$SSOLFDWLRQV´VKDOOLQFOXGHEXWDUHQRWOLPLWHGWRDOOSXUFKDVHGDQGFXVWRPH[WHUQDO ZHE  DSSOLFDWLRQV³6HUYHUV´VKDOOLQFOXGHEXWDUHQRWOLPLWHGWRDOORI&RQWUDFW9HQGRU¶VZHEGDWDEDVHDXWKHQWLFDWLRQ '16PDLOSUR[\DQG173VHUYHUV³&DUGKROGHU'DWD´VKDOOPHDQDQ\SHUVRQDOO\LGHQWLILDEOHGDWDDVVRFLDWHGZLWKD FDUGKROGHULQFOXGLQJE\ZD\RIH[DPSOHDQGZLWKRXWOLPLWDWLRQDFDUGKROGHU¶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¶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†&VXEGVDQGHOLJLEOHFHUWLILHG WDUJHWHGJURXS 7* EXVLQHVVHVDQGFHUWLILHGHFRQRPLFDOO\GLVDGYDQWDJHG (' EXVLQHVVHVZLOOUHFHLYHDSHUFHQW SUHIHUHQFHRQWKHEDVLVRIDZDUGIRUWKLV5)37KHSUHIHUHQFHLVDSSOLHGRQO\WRWKHILUVWRIWKHUHVSRQVHWR WKH5)3(OLJLEOH7*EXVLQHVVHVPXVWEHFXUUHQWO\FHUWLILHGE\WKH0DWHULDOV0DQDJHPHQW'LYLVLRQSULRUWRWKHELG RSHQLQJGDWHDQGWLPH   7RYHULI\7*('FHUWLILFDWLRQUHIHUWRWKH0DWHULDOV0DQDJHPHQW'LYLVLRQ¶VZHEVLWHDW ZZZPPGDGPLQVWDWHPQXVXQGHU³9HQGRU,QIRUPDWLRQ'LUHFWRU\RI&HUWLILHG7*('9HQGRUV´   7RYHULI\7*HOLJLELOLW\IRUSUHIHUHQFHUHIHUWRWKH0DWHULDOV0DQDJHPHQW'LYLVLRQ¶VZHEVLWHXQGHU³9HQGRU ,QIRUPDWLRQ7DUJHWHG*URXSV(OLJLEOHIRU3UHIHUHQFHLQ6WDWH3XUFKDVLQJ´RUFDOOWKH'LYLVLRQ¶V+HOS/LQHDW   5HFLSURFDO3UHIHUHQFH,QDFFRUGDQFHZLWK0LQQ6WDW†&VXEGWKHDFTXLVLWLRQRIJRRGVRUVHUYLFHVVKDOOEH DOORZHGDSUHIHUHQFHRYHUDQRQUHVLGHQWYHQGRUIURPDVWDWHWKDWJLYHVRUUHTXLUHVDSUHIHUHQFHWRYHQGRUVIURPWKDW VWDWHWKHSUHIHUHQFHVKDOOEHHTXDOWRWKHSUHIHUHQFHJLYHQRUUHTXLUHGE\WKHVWDWHRIWKHQRQUHVLGHQWYHQGRU,I\RX ZLVKWREHFRQVLGHUHGD0LQQHVRWD5HVLGHQWYHQGRU\RXPXVWFODLPWKDWE\ILOOLQJRXWWKH5HVLGHQW9HQGRU)RUP LQFOXGHGLQWKLVVROLFLWDWLRQDQGLQFOXGHLWLQ\RXUUHVSRQVH   9HWHUDQ,QDFFRUGDQFHZLWK0LQQ6WDW†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†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

 6(&7,210$67(5$*5((0(177(506$1'&21',7,216_B  VXFKUHOHDVHLVDVSHFLILFSDUWRIDQDSSURYHGZRUNSODQLQFOXGHGLQWKH0DVWHU$JUHHPHQWSULRUWRLWVDSSURYDOE\WKH 6WDWH¶V$XWKRUL]HG5HSUHVHQWDWLYHDQGWKH6WDWH¶V$VVLVWDQW'LUHFWRURUGHVLJQHHRI0DWHULDOV0DQDJHPHQW'LYLVLRQ  7KH&RQWUDFW9HQGRUVKDOOPDNHQRUHSUHVHQWDWLRQVRIWKH6WDWH¶VRSLQLRQRUSRVLWLRQDVWRWKHTXDOLW\RUHIIHFWLYHQHVV RIWKHSURGXFWVDQGRUVHUYLFHVWKDWDUHWKHVXEMHFWRIWKH0DVWHU$JUHHPHQWZLWKRXWWKHSULRUZULWWHQFRQVHQWRIWKH 6WDWH¶V$VVLVWDQW'LUHFWRURUGHVLJQHHRI0DWHULDOV0DQDJHPHQW'LYLVLRQ5HSUHVHQWDWLRQVLQFOXGHDQ\SXEOLFLW\ LQFOXGLQJEXWQRWOLPLWHGWRDGYHUWLVHPHQWVQRWLFHVSUHVVUHOHDVHVUHSRUWVVLJQVDQGVLPLODUSXEOLFQRWLFHV   385&+$6(25'(567KH6WDWHUHTXLUHVWKDWWKHUHZLOOEHQRPLQLPXPRUGHUUHTXLUHPHQWVRUFKDUJHVWRSURFHVV DQLQGLYLGXDOSXUFKDVHRUGHU7KH0DVWHU$JUHHPHQWQXPEHUDQGWKH32QXPEHUPXVWDSSHDURQDOOGRFXPHQWV HJLQYRLFHVSDFNLQJVOLSVHWF 7KH2UGHULQJ(QWLW\¶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†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† 

 6(&7,210$67(5$*5((0(177(506$1'&21',7,216_B      

')2506 

 6(&7,210$67(5$*5((0(177(506$1'&21',7,216_B  

0DWHULDOV0DQDJHPHQW'LYLVLRQ $GPLQLVWUDWLRQ%XLOGLQJ 6KHUEXUQH$YHQXH 6W3DXO01 9RLFH  )D[  5(48(67)25352326$/  6,*1$785(3$*(  &RPSXWHU(TXLSPHQW 'HVNWRSV/DSWRSV7DEOHWV 6HUYHUV 6WRUDJHLQFOXGLQJ 5HODWHG3HULSKHUDOV 6HUYLFHV   

1DPHRI9HQGRU  9HQGRU(0DLO 

$GGUHVV 

3KRQH  )D[  'DWH 

$XWKRUL]HG6LJQDWXUH 

7\SHGQDPHRIVLJQHU  7LWOH 

Signer must be authorized to contractually obligate the vendor.

7\SHRUSULQWFOHDUO\WKHQDPHRIWKHSHUVRQZKRSUHSDUHGWKHUHVSRQVH 

(0$,/3+21(    

 6(&7,210$67(5$*5((0(177(506$1'&21',7,216_B   6(&7,210$67(5$*5((0(177(506$1'&21',7,216_B  7UDGH6HFUHW,QIRUPDWLRQ)RUP  8QGHU0LQQHVRWD¶V'DWD3UDFWLFHV$FWGDWDVXEPLWWHGLQDUHVSRQVHEHFRPHVSXEOLFXSRQFRPSOHWLRQRIWKH HYDOXDWLRQSURFHVVDQGQHJRWLDWLRQVDUHFRPSOHWHRUXSRQFRPSOHWLRQRIWKHVHOHFWLRQSURFHVVIRUDVROLFLWDWLRQ +RZHYHU³WUDGHVHFUHWLQIRUPDWLRQ´DVGHILQHGLQ0LQQ6WDW†VXEG E FDQQRWEHGLVFORVHGWRWKHSXEOLF :KLOHWKHPDMRULW\RIGDWDVXEPLWWHGLQDUHVSRQVHLVQRWWUDGHVHFUHWLQIRUPDWLRQWKHIROORZLQJIRUPLVQHHGHGWR DVVLVWWKH6WDWHLQPDNLQJDSSURSULDWHGHWHUPLQDWLRQVDERXWWKHUHOHDVHRIGDWDSURYLGHGLQDUHVSRQVH  $OOUHVSRQGHUVPXVWVHOHFWRQHRIWKHIROORZLQJER[HV Ƒ 0\UHVSRQVHGRHVQRWFRQWDLQ³WUDGHVHFUHWLQIRUPDWLRQ´,XQGHUVWDQGWKDWP\ HQWLUHUHVSRQVHZLOOEHFRPHSXEOLFUHFRUGLQDFFRUGDQFHZLWK0LQQ6WDW† Ƒ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Ƒ ,KDYHFOHDUO\PDUNHGDQGSODFHGDQ\GDWD,FODLPWREH³WUDGHVHFUHWLQIRUPDWLRQ´LQ DVHSDUDWHHQYHORSH$1',DPDWWDFKLQJDQH[SODQDWLRQMXVWLI\LQJWKHWUDGHVHFUHW GHVLJQDWLRQ  3OHDVHQRWHWKDWIDLOXUHWRDWWDFKDQH[SODQDWLRQPD\UHVXOWLQDGHWHUPLQDWLRQWKDWWKHGDWD GRHVQRWPHHWWKHVWDWXWRU\WUDGHVHFUHWGHILQLWLRQ$OOGDWDWKDWGRHVQRWPHHWWKH GHILQLWLRQRIWUDGHVHFUHWDVGHILQHGE\0LQQ6WDW†VXEG E ZLOOEHFRPHSXEOLFLQ DFFRUGDQFHZLWK0LQQ6WDW†7KH6WDWHUHVHUYHVLWVULJKWWRPDNHLWVRZQ GHWHUPLQDWLRQRI5HVSRQGHU¶V7UDGH6HFUHW0DWHULDOV  %\VXEPLWWLQJWKLVUHVSRQVHUHVSRQGHUDJUHHVWRLQGHPQLI\DQGKROGWKH6WDWHLWVDJHQWVDQGHPSOR\HHVKDUPOHVV IURPDQ\FODLPVRUFDXVHVRIDFWLRQUHODWLQJWRWKH6WDWH¶VZLWKKROGLQJRIGDWDEDVHGXSRQUHOLDQFHRQWKHDERYH UHSUHVHQWDWLRQVLQFOXGLQJWKHSD\PHQWRIDOOFRVWVDQGDWWRUQH\IHHVLQFXUUHGE\WKH6WDWHLQGHIHQGLQJVXFKDQ DFWLRQ  21/<LQIRUPDWLRQSURSHUO\LGHQWLILHGXWLOL]LQJWKLVIURPZLOOEHHOLJLEOHIRU7UDGH6HFUHWGHVLJQDWLRQ7KLVIRUPPXVW DFFRPSDQ\DQ\GRFXPHQWDWLRQWKDWLVEHLQJVXEPLWWHGIRU7UDGH6HFUHW7KLVLQFOXGHVEXWLVQRWOLPLWHGWRDQ\ PDWHULDOWKDWPD\EHVXEPLWWHGDVSDUWRIWKHVROLFLWDWLRQUHVSRQVHRULQUHODWLRQWRDVXEVHTXHQW0DVWHU$JUHHPHQW ,QIRUPDWLRQODEHOHG³FRQILGHQWLDO´³SURSULHWDU\´RUODEHOHGZLWKVLPLODUWDJVZLWKUHJDUGWROLPLWLQJWKH6WDWH¶V GLVFORVXUHZLOO127EHHOLJLEOHIRUWUDGHVHFUHWGHVLJQDWLRQXQOHVVWKHIRUPSURYLGHGLQWKHVROLFLWDWLRQLVSURSHUO\ FRPSOHWHGDQGVXEPLWWHGDVDFRYHUSDJHWRWKHLQIRUPDWLRQDQGLWPHHWVWKHVWDWXWRU\GHILQLWLRQRIDWUDGHVHFUHW%\ VXEPLWWLQJDUHVSRQVH\RXDJUHHWKDWWKHLQIRUPDWLRQVXEPLWWHGWKDWGRHVQRWIROORZWKHWUDGHVHFUHWSURFHVVGHILQHG KHUHLQDQGGRHVQRWPHHWWKHVWDWXWRU\GHILQLWLRQRIWUDGHVHFUHWPD\EHUHOHDVHGE\WKH6WDWHZLWKRXWSULRUQRWLILFDWLRQ WRWKHUHVSRQGHUDQGRUWKH&RQWUDFW9HQGRU

 6(&7,210$67(5$*5((0(177(506$1'&21',7,216_B  67$7(2)0,11(627$ '(3$570(172)$'0,1,675$7,21 0$7(5,$/60$1$*(0(17',9,6,21  $)),'$9,72)121&2//86,21

,KHUHE\VZHDU RUDIILUP XQGHUWKHSHQDOW\RISHUMXU\

 7KDW,DPWKHUHVSRQGHU LIWKHUHVSRQGHULVDQLQGLYLGXDO DSDUWQHULQWKHFRPSDQ\ LIWKHUHVSRQGHULVD SDUWQHUVKLS RUDQRIILFHURUHPSOR\HHRIWKHUHVSRQGLQJFRUSRUDWLRQKDYLQJDXWKRULW\WRVLJQRQLWVEHKDOI LIWKH UHVSRQGHULVDFRUSRUDWLRQ 

 7KDWWKHDWWDFKHGUHVSRQVHKDVEHHQDUULYHGDWE\WKHUHVSRQGHULQGHSHQGHQWO\DQGKDVEHHQVXEPLWWHG ZLWKRXWFROOXVLRQZLWKDQGZLWKRXWDQ\DJUHHPHQWXQGHUVWDQGLQJRUSODQQHGFRPPRQFRXUVHRIDFWLRQZLWKDQ\ RWKHUYHQGRUGHVLJQHGWROLPLWIDLURURSHQFRPSHWLWLRQ

 7KDWWKHFRQWHQWVRIWKH5)3UHVSRQVHKDYHQRWEHHQFRPPXQLFDWHGE\WKHUHVSRQGHURULWVHPSOR\HHVRU DJHQWVWRDQ\SHUVRQQRWDQHPSOR\HHRUDJHQWRIWKHUHVSRQGHUDQGZLOOQRWEHFRPPXQLFDWHGWRDQ\VXFK SHUVRQVSULRUWRWKHRIILFLDORSHQLQJRIWKHUHVSRQVHVDQG

 ,FHUWLI\WKDWWKHVWDWHPHQWVLQWKLVDIILGDYLWDUHWUXHDQGDFFXUDWH

 $XWKRUL]HG6LJQDWXUH  'DWH  )LUP1DPH   6XEVFULEHGDQGVZRUQWRPHWKLV  GD\RI    BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB  1RWDU\3XEOLF  0\FRPPLVVLRQH[SLUHVBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB      

 6(&7,210$67(5$*5((0(177(506$1'&21',7,216_B   67$7(2)0,11(627$ '(3$570(172)$'0,1,675$7,21 0$7(5,$/60$1$*(0(17',9,6,21    35,0$5<&217$&73(5621)250$67(5$*5((0(17

1$0(  7,7/( 

7(/(3+21(180%(5  )$;180%(5 

72//)5((180%(5  (0$,/ 

&217$&73(562172(;3(',7(25'(56 LIGLIIHUHQWIURPDERYH 

1$0(  7,7/( 

7(/(3+21(180%(5  )$;180%(5 

72//)5((180%(5  (0$,/ 

25'(5$''5(66

675((732%2;   

&,7<67$7(  =,3&2'( 

7(/(3+21(180%(5  )$;180%(5 

72//)5((180%(5  (0$,/ 

5(0,772$''5(66

675((732%2;   

&,7<67$7(  =,3&2'( 

7(/(3+21(180%(5  )$;180%(5 

72//)5((180%(5  (0$,/   

  6(&7,210$67(5$*5((0(177(506$1'&21',7,216_B   67$7(2)0,11(627$ '(3$570(172)$'0,1,675$7,21 0$7(5,$/60$1$*(0(17',9,6,21  &2175$&76$9,1*6   6$9,1*65(3257  5HVSRQGHUVDUHUHTXLUHGWRFDOFXODWHWKHSHUFHQWDJHVDYLQJVWKH6WDWHZLOOUHDOL]HDVDUHVXOWRIWKH0DVWHU $JUHHPHQWDQGLQFOXGHWKHDPRXQWRIWKHSHUFHQWDJHVDYLQJVLQWKHUHVSRQVH  0DVWHU$JUHHPHQW3ULFHV$YHUDJH/HVVWKDQWKHSULFHTXRWHGWRWKHJHQHUDOSXEOLF IRUUHSRUWLQJ SXUSRVHVRQO\     

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†&    )LUP1DPHBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB  $GGUHVVBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB    BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB    BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB    0LQQHVRWD6:,)79HQGRU5HJLVWUDWLRQ1XPEHUBBBBBBBBBBBBBBBBBBBBBB  ,I\RXDUHQRWUHJLVWHUHGDVDYHQGRUWRWKH6WDWHLQWKH6:,)73URFXUHPHQW 6\VWHP\RXPXVWUHJLVWHURQOLQHDW KWWSZZZPPEVWDWHPQXVYHQGRUUHVRXUFHV 1RWH,IDSSURYHG\RXZLOOUHFHLYH\RXUYHQGRUQXPEHUDSSUR[LPDWHO\WZR EXVLQHVVGD\VDIWHU\RXUHJLVWHU    $UH\RXDVROHSURSULHWRUVKLS" 

  6(&7,210$67(5$*5((0(177(506$1'&21',7,216_B   67$7(2)0,11(627$5(6,'(179(1'25)250  ,QDFFRUGDQFHZLWK/DZVRI0LQQHVRWD&KDSWHU$UWLFOH6HFWLRQDPHQGLQJ0LQQ6WDW†& VXEGD³5HVLGHQW9HQGRU´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³5HVLGHQW9HQGRU´ \RXUFRPSDQ\PXVWPHHWHDFKHOHPHQW RIWKHVWDWXWRU\GHILQLWLRQDERYHE\WKHVROLFLWDWLRQRSHQLQJGDWHDQGWLPH,I\RXZLVKWRDIILUPDWLYHO\FODLP5HVLGHQW 9HQGRUVWDWXV\RXVKRXOGGRVRE\VXEPLWWLQJWKLVIRUPZLWK\RXUELGRUSURSRVDO  5HVLGHQW9HQGRUVWDWXVPD\EHFRQVLGHUHGIRUSXUSRVHVRIUHVROYLQJWLHGORZELGVRUWKHDSSOLFDWLRQRIDUHFLSURFDO SUHIHUHQFH  ,+(5(%<&(57,)<7+$77+(&203$1</,67('%(/2:   ,VDXWKRUL]HGWRFRQGXFWEXVLQHVVLQWKH6WDWHRI0LQQHVRWDRQWKHGDWHDVROLFLWDWLRQIRUDFRQWUDFWLVILUVW DGYHUWLVHGRUDQQRXQFHG(This includes a foreign corporation duly authorized to engage in business in Minnesota.) BBB

  6(&7,210$67(5$*5((0(177(506$1'&21',7,216_B   67$7(2)0,11(627$ 9(7(5$12:1('35()(5(1&()250  ,QDFFRUGDQFHZLWK0LQQ6WDW†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†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†& VXEGD  BBB

  6(&7,210$67(5$*5((0(177(506$1'&21',7,216_B   48(67,21)250  :6&$1$632&20387(5(48,30(17  DUE: OCTOBER 7, 2013 DUE 3:00 P.M. CT POST ADDENDUM 3: DUE: NOVEMBER 22, 2013 2:00 P.M.CT  9(1'251$0(BBBBBBBBBBBBBBBBBBBBBBBBBB 4XHVWLRQVPXVWEHVXEPLWWHGLQZULWLQJWR0DVWHU$JUHHPHQW$GPLQLVWUDWRU#VXVDQNDKOH#VWDWHPQXV$OOTXHVWLRQVUHFHLYHGE\WKHFXWRIIGDWHDQGWLPHZLOOEH UHVSRQGHGWRYLDDQDGGHQGXPWRRIILFLDOVROLFLWDWLRQKROGHUV%HVSHFLILFDQGFLWHWKHVHFWLRQLWHPDQGSDJHQXPEHUWRZKLFKWKHTXHVWLRQUHIHUV&RQWDFW UHJDUGLQJWKLV5)3ZLWKDQ\6WDWHSHUVRQQHORWKHUWKDQWKH0DVWHU$JUHHPHQW$GPLQLVWUDWRUPD\UHVXOWLQUHMHFWLRQRIWKHUHVSRQVH6HHVFKHGXOHRIHYHQWVIRU ZKHQTXHVWLRQVDUHGXH 

6(&7,21 48(67,21 5()(5(1&(                                         

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

  6(&7,210$67(5$*5((0(177(506$1'&21',7,216_B   93$7 :HE&RQWHQW$FFHVVLELOLW\*XLGHOLQHVOHYHO$$

7KHUHTXHVWHG:&$*93$7DSSOLHVWRWKHUHVSRQGHU¶VZHEVLWHWREHRIIHUHGXQGHUWKH&RQWUDFW)RUSURGXFWV RIIHUHG93$76DUHRQO\WREHSURYLGHGXSRQUHTXHVWE\WKHSDUWLFLSDWLQJHQWLW\,WLVVWURQJO\UHFRPPHQGHG 7HFKQLFDO6WDIIZKRDUHWUDLQHGLQ$FFHVVLELOLW\FRPSOHWHWKLVIRUP 7KHFRPPHQWVSRUWLRQPXVWEHILOOHGLQWRIXUWKHUGHILQHKRZDFFHVVLELOLW\LVRULVQRWPHW7KHTXDOLW\RIWKHFRPPHQWVLPSDFWV WKHUHYLHZHUV¶XQGHUVWDQGLQJRIWKHDFFHVVLELOLW\RI\RXUSURGXFWVHUYLFH127(01RQO\DGRSWHGWKHVWDQGDUGVWKDWDUHOHYHO$ DQGOHYHO$$7KLVOLVWLQFOXGHVOHYHO$$$VWDQGDUGVZKLFKDUHRSWLRQDODQGKLJKOLJKWHGLQ\HOORZ&RPPHQWVDUHQRWUHTXLUHG IRUOHYHO$$$ 3ULQFLSOH3HUFHLYDEOH±LQIRUPDWLRQDQGXVHULQWHUIDFHFRPSRQHQWVPXVWEHSUHVHQWDEOHWR XVHUVLQZD\VWKH\FDQSHUFHLYH 6WDQGDUG 'HVFULSWLRQ $SSO\ 0HHWV &RPPHQWV

  6(&7,210$67(5$*5((0(177(506$1'&21',7,216_B   93$7 :HE&RQWHQW$FFHVVLELOLW\*XLGHOLQHVOHYHO$$  Guideline 1.2 Time-based Media: Provide alternatives for time-based media.  $XGLRRQO\DQG9LGHRRQO\ 3UHUHFRUGHG )RUSUHUHFRUGHGDXGLRRQO\DQG    SUHUHFRUGHGYLGHRRQO\PHGLDWKHIROORZLQJDUHWUXHH[FHSWZKHQWKH DXGLRRUYLGHRLVDPHGLDDOWHUQDWLYHIRUWH[WDQGLVFOHDUO\ODEHOHGDVVXFK /HYHO$  x 3UHUHFRUGHG$XGLRRQO\$QDOWHUQDWLYHIRUWLPHEDVHGPHGLDLV SURYLGHGWKDWSUHVHQWVHTXLYDOHQWLQIRUPDWLRQIRUSUHUHFRUGHGDXGLR RQO\FRQWHQW x 3UHUHFRUGHG9LGHRRQO\(LWKHUDQDOWHUQDWLYHIRUWLPHEDVHGPHGLDRU DQDXGLRWUDFNLVSURYLGHGWKDWSUHVHQWVHTXLYDOHQWLQIRUPDWLRQIRU SUHUHFRUGHGYLGHRRQO\FRQWHQW  &DSWLRQV 3UHUHFRUGHG &DSWLRQVDUHSURYLGHGIRUDOOSUHUHFRUGHGDXGLR    FRQWHQWLQV\QFKURQL]HGPHGLDH[FHSWZKHQWKHPHGLDLVDPHGLD DOWHUQDWLYHIRUWH[WDQGLVFOHDUO\ODEHOHGDVVXFK /HYHO$   $XGLR'HVFULSWLRQRU0HGLD$OWHUQDWLYH 3UHUHFRUGHG $QDOWHUQDWLYHIRU    WLPHEDVHGPHGLDRUDXGLRGHVFULSWLRQRIWKHSUHUHFRUGHGYLGHRFRQWHQWLV SURYLGHGIRUV\QFKURQL]HGPHGLDH[FHSWZKHQWKHPHGLDLVDPHGLD DOWHUQDWLYHIRUWH[WDQGLVFOHDUO\ODEHOHGDVVXFK /HYHO$   &DSWLRQV /LYH &DSWLRQVDUHSURYLGHGIRUDOOOLYHDXGLRFRQWHQWLQ    V\QFKURQL]HGPHGLD /HYHO$$   $XGLR'HVFULSWLRQ 3UHUHFRUGHG $XGLRGHVFULSWLRQLVSURYLGHGIRUDOO    SUHUHFRUGHGYLGHRFRQWHQWLQV\QFKURQL]HGPHGLD /HYHO$$   6LJQ/DQJXDJH 3UHUHFRUGHG 6LJQODQJXDJHLQWHUSUHWDWLRQLVSURYLGHGIRU    DOOSUHUHFRUGHGDXGLRFRQWHQWLQV\QFKURQL]HGPHGLD /HYHO$$$   ([WHQGHG$XGLR'HVFULSWLRQ 3UHUHFRUGHG :KHUHSDXVHVLQIRUHJURXQG    DXGLRDUHLQVXIILFLHQWWRDOORZDXGLRGHVFULSWLRQVWRFRQYH\WKHVHQVHRIWKH YLGHRH[WHQGHGDXGLRGHVFULSWLRQLVSURYLGHGIRUDOOSUHUHFRUGHGYLGHR FRQWHQWLQV\QFKURQL]HGPHGLD /HYHO$$$   0HGLD$OWHUQDWLYH 3UHUHFRUGHG $QDOWHUQDWLYHIRUWLPHEDVHGPHGLDLV    SURYLGHGIRUDOOSUHUHFRUGHGV\QFKURQL]HGPHGLDDQGIRUDOOSUHUHFRUGHG YLGHRRQO\PHGLD /HYHO$$$   $XGLRRQO\ /LYH $QDOWHUQDWLYHIRUWLPHEDVHGPHGLDWKDWSUHVHQWV    HTXLYDOHQWLQIRUPDWLRQIRUOLYHDXGLRRQO\FRQWHQWLVSURYLGHG /HYHO$$$ 

  6(&7,210$67(5$*5((0(177(506$1'&21',7,216_B   93$7 :HE&RQWHQW$FFHVVLELOLW\*XLGHOLQHVOHYHO$$  Guideline 1.3 Adaptable: Create content that can be presented in different ways (for example simpler layout) without losing information or structure.  ,QIRDQG5HODWLRQVKLSV,QIRUPDWLRQVWUXFWXUHDQGUHODWLRQVKLSVFRQYH\HG    WKURXJKSUHVHQWDWLRQFDQEHSURJUDPPDWLFDOO\GHWHUPLQHGRUDUHDYDLODEOH LQWH[W /HYHO$   0HDQLQJIXO6HTXHQFH:KHQWKHVHTXHQFHLQZKLFKFRQWHQWLVSUHVHQWHG    DIIHFWVLWVPHDQLQJDFRUUHFWUHDGLQJVHTXHQFHFDQEHSURJUDPPDWLFDOO\ GHWHUPLQHG /HYHO$   6HQVRU\&KDUDFWHULVWLFV,QVWUXFWLRQVSURYLGHGIRUXQGHUVWDQGLQJDQG    RSHUDWLQJFRQWHQWGRQRWUHO\VROHO\RQVHQVRU\FKDUDFWHULVWLFVRI FRPSRQHQWVVXFKDVVKDSHVL]HYLVXDOORFDWLRQRULHQWDWLRQRUVRXQG /HYHO$  Guideline 1.4 Distinguishable: Make it easier for users to see and hear content including separating foreground from background.  8VHRI&RORU&RORULVQRWXVHGDVWKHRQO\YLVXDOPHDQVRIFRQYH\LQJ    LQIRUPDWLRQLQGLFDWLQJDQDFWLRQSURPSWLQJDUHVSRQVHRUGLVWLQJXLVKLQJD YLVXDOHOHPHQW /HYHO$   $XGLR&RQWURO,IDQ\DXGLRRQD:HESDJHSOD\VDXWRPDWLFDOO\IRUPRUH    WKDQVHFRQGVHLWKHUDPHFKDQLVPLVDYDLODEOHWRSDXVHRUVWRSWKH DXGLRRUDPHFKDQLVPLVDYDLODEOHWRFRQWURODXGLRYROXPHLQGHSHQGHQWO\ IURPWKHRYHUDOOV\VWHPYROXPHOHYHO /HYHO$   &RQWUDVW 0LQLPXP 7KHYLVXDOSUHVHQWDWLRQRIWH[WDQGLPDJHVRIWH[WKDV    DFRQWUDVWUDWLRRIDWOHDVWH[FHSWIRUWKHIROORZLQJ /HYHO$$  x /DUJH7H[W/DUJHVFDOHWH[WDQGLPDJHVRIODUJHVFDOHWH[WKDYHD FRQWUDVWUDWLRRIDWOHDVW x ,QFLGHQWDO7H[WRULPDJHVRIWH[WWKDWDUHSDUWRIDQLQDFWLYHXVHU LQWHUIDFHFRPSRQHQWWKDWDUHSXUHGHFRUDWLRQWKDWDUHQRWYLVLEOHWR DQ\RQHRUWKDWDUHSDUWRIDSLFWXUHWKDWFRQWDLQVVLJQLILFDQWRWKHU YLVXDOFRQWHQWKDYHQRFRQWUDVWUHTXLUHPHQW x /RJRW\SHV7H[WWKDWLVSDUWRIDORJRRUEUDQGQDPHKDVQRPLQLPXP FRQWUDVWUHTXLUHPHQW  5HVL]HWH[W([FHSWIRUFDSWLRQVDQGLPDJHVRIWH[WWH[WFDQEHUHVL]HG    ZLWKRXWDVVLVWLYHWHFKQRORJ\XSWRSHUFHQWZLWKRXWORVVRIFRQWHQWRU IXQFWLRQDOLW\ /HYHO$$   ,PDJHVRI7H[W,IWKHWHFKQRORJLHVEHLQJXVHGFDQDFKLHYHWKHYLVXDO    SUHVHQWDWLRQWH[WLVXVHGWRFRQYH\LQIRUPDWLRQUDWKHUWKDQLPDJHVRIWH[W H[FHSWIRUWKHIROORZLQJ /HYHO$$  x &XVWRPL]DEOH7KHLPDJHRIWH[WFDQEHYLVXDOO\FXVWRPL]HGWRWKH XVHU VUHTXLUHPHQWV x (VVHQWLDO$SDUWLFXODUSUHVHQWDWLRQRIWH[WLVHVVHQWLDOWRWKH LQIRUPDWLRQEHLQJFRQYH\HG  &RQWUDVW (QKDQFHG 7KHYLVXDOSUHVHQWDWLRQRIWH[WDQGLPDJHVRIWH[W    KDVDFRQWUDVWUDWLRRIDWOHDVWH[FHSWIRUWKHIROORZLQJ /HYHO$$$  x /DUJH7H[W/DUJHVFDOHWH[WDQGLPDJHVRIODUJHVFDOHWH[WKDYHD FRQWUDVWUDWLRRIDWOHDVW x ,QFLGHQWDO7H[WRULPDJHVRIWH[WWKDWDUHSDUWRIDQLQDFWLYHXVHU LQWHUIDFHFRPSRQHQWWKDWDUHSXUHGHFRUDWLRQWKDWDUHQRWYLVLEOHWR DQ\RQHRUWKDWDUHSDUWRIDSLFWXUHWKDWFRQWDLQVVLJQLILFDQWRWKHU YLVXDOFRQWHQWKDYHQRFRQWUDVWUHTXLUHPHQW x /RJRW\SHV7H[WWKDWLVSDUWRIDORJRRUEUDQGQDPHKDVQRPLQLPXP FRQWUDVWUHTXLUHPHQW

  6(&7,210$67(5$*5((0(177(506$1'&21',7,216_B    /RZRU1R%DFNJURXQG$XGLR)RUSUHUHFRUGHGDXGLRRQO\FRQWHQWWKDW      FRQWDLQVSULPDULO\VSHHFKLQWKHIRUHJURXQG  LVQRWDQDXGLR&$37&+$ RUDXGLRORJRDQG  LVQRWYRFDOL]DWLRQLQWHQGHGWREHSULPDULO\PXVLFDO H[SUHVVLRQVXFKDVVLQJLQJRUUDSSLQJDWOHDVWRQHRIWKHIROORZLQJLVWUXH /HYHO$$$  x 1R%DFNJURXQG7KHDXGLRGRHVQRWFRQWDLQEDFNJURXQGVRXQGV x 7XUQ2II7KHEDFNJURXQGVRXQGVFDQEHWXUQHGRII x G%7KHEDFNJURXQGVRXQGVDUHDWOHDVWGHFLEHOVORZHUWKDQWKH IRUHJURXQGVSHHFKFRQWHQWZLWKWKHH[FHSWLRQRIRFFDVLRQDOVRXQGV WKDWODVWIRURQO\RQHRUWZRVHFRQGV  9LVXDO3UHVHQWDWLRQ)RUWKHYLVXDOSUHVHQWDWLRQRIEORFNVRIWH[WD    PHFKDQLVPLVDYDLODEOHWRDFKLHYHWKHIROORZLQJ /HYHO$$$  x )RUHJURXQGDQGEDFNJURXQGFRORUVFDQEHVHOHFWHGE\WKHXVHU x :LGWKLVQRPRUHWKDQFKDUDFWHUVRUJO\SKV LI&-.  x 7H[WLVQRWMXVWLILHG DOLJQHGWRERWKWKHOHIWDQGWKHULJKWPDUJLQV  x /LQHVSDFLQJ OHDGLQJ LVDWOHDVWVSDFHDQGDKDOIZLWKLQSDUDJUDSKV DQGSDUDJUDSKVSDFLQJLVDWOHDVWWLPHVODUJHUWKDQWKHOLQH VSDFLQJ x 7H[WFDQEHUHVL]HGZLWKRXWDVVLVWLYHWHFKQRORJ\XSWRSHUFHQWLQ DZD\WKDWGRHVQRWUHTXLUHWKHXVHUWRVFUROOKRUL]RQWDOO\WRUHDGDOLQH RIWH[WRQDIXOOVFUHHQZLQGRZ  ,PDJHVRI7H[W 1R([FHSWLRQ ,PDJHVRIWH[WDUHRQO\XVHGIRUSXUH    GHFRUDWLRQRUZKHUHDSDUWLFXODUSUHVHQWDWLRQRIWH[WLVHVVHQWLDOWRWKH LQIRUPDWLRQEHLQJFRQYH\HG /HYHO$$$  

  6(&7,210$67(5$*5((0(177(506$1'&21',7,216_B   93$7 :HE&RQWHQW$FFHVVLELOLW\*XLGHOLQHVOHYHO$$ 3ULQFLSOH2SHUDEOH8VHULQWHUIDFHFRPSRQHQWVDQGQDYLJDWLRQPXVWEHRSHUDEOH 6WDQGDUG 'HVFULSWLRQ $SSO\ 0HHWV &RPPHQWV

  6(&7,210$67(5$*5((0(177(506$1'&21',7,216_B    7KUHH)ODVKHV:HESDJHVGRQRWFRQWDLQDQ\WKLQJWKDWIODVKHVPRUHWKDQ    WKUHHWLPHVLQDQ\RQHVHFRQGSHULRG /HYHO$$$  Guideline 2.4 Navigable: Provide ways to help users navigate, find content, and determine where they are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

  6(&7,210$67(5$*5((0(177(506$1'&21',7,216_B    &RQVLVWHQW1DYLJDWLRQ1DYLJDWLRQDOPHFKDQLVPVWKDWDUHUHSHDWHGRQ    PXOWLSOH:HESDJHVZLWKLQDVHWRI:HESDJHVRFFXULQWKHVDPHUHODWLYH RUGHUHDFKWLPHWKH\DUHUHSHDWHGXQOHVVDFKDQJHLVLQLWLDWHGE\WKHXVHU /HYHO$$   &RQVLVWHQW,GHQWLILFDWLRQ&RPSRQHQWVWKDWKDYHWKHVDPHIXQFWLRQDOLW\    ZLWKLQDVHWRI:HESDJHVDUHLGHQWLILHGFRQVLVWHQWO\ /HYHO$$   &KDQJHRQ5HTXHVW&KDQJHVRIFRQWH[WDUHLQLWLDWHGRQO\E\XVHUUHTXHVW    RUDPHFKDQLVPLVDYDLODEOHWRWXUQRIIVXFKFKDQJHV /HYHO$$$  Guideline 3.3 Input Assistance: Help users avoid and correct mistakes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x 5HYHUVLEOH6XEPLVVLRQVDUHUHYHUVLEOH x &KHFNHG'DWDHQWHUHGE\WKHXVHULVFKHFNHGIRULQSXWHUURUVDQG WKHXVHULVSURYLGHGDQRSSRUWXQLW\WRFRUUHFWWKHP x &RQILUPHG$PHFKDQLVPLVDYDLODEOHIRUUHYLHZLQJFRQILUPLQJDQG FRUUHFWLQJLQIRUPDWLRQEHIRUHILQDOL]LQJWKHVXEPLVVLRQ  +HOS&RQWH[WVHQVLWLYHKHOSLVDYDLODEOH /HYHO$$$      (UURU3UHYHQWLRQ $OO )RU:HESDJHVWKDWUHTXLUHWKHXVHUWRVXEPLW    LQIRUPDWLRQDWOHDVWRQHRIWKHIROORZLQJLVWUXH /HYHO$$$  x 5HYHUVLEOH6XEPLVVLRQVDUHUHYHUVLEOH x &KHFNHG'DWDHQWHUHGE\WKHXVHULVFKHFNHGIRULQSXWHUURUVDQG WKHXVHULVSURYLGHGDQRSSRUWXQLW\WRFRUUHFWWKHP x &RQILUPHG$PHFKDQLVPLVDYDLODEOHIRUUHYLHZLQJFRQILUPLQJDQG FRUUHFWLQJLQIRUPDWLRQEHIRUHILQDOL]LQJWKHVXEPLVVLRQ 

  6(&7,210$67(5$*5((0(177(506$1'&21',7,216_B   93$7 :HE&RQWHQW$FFHVVLELOLW\*XLGHOLQHVOHYHO$$

3ULQFLSOH5REXVW&RQWHQWPXVWEHUREXVWHQRXJKWKDWLWFDQEHLQWHUSUHWHGUHOLDEO\E\DZLGH YDULHW\RIXVHUDJHQWVLQFOXGLQJDVVLVWLYHWHFKQRORJLHV 6WDQGDUG 'HVFULSWLRQ $SSO\ 0HHWV &RPPHQWV

  6(&7,210$67(5$*5((0(177(506$1'&21',7,216_B   

6(&7,215(63216(5(48,5(0(176  $%XVLQHVV %(QYLURQPHQWDO &4XDOLILFDWLRQV '&XVWRPHU6XSSRUW 

  6(&7,215(63216(5(48,5(0(176_B   

$5(63216(5(48,5(0(176%86,1(66  &RQILUPWKHUHVSRQGHUPHHWVXQGHUVWDQGVDQGZLOOFRPSO\ZLWKWKHUHTXLUHPHQWE\FKHFNLQJ<(60DQGDWRU\5HTXLUHPHQWV DUHLQGLFDWHGZLWK³0´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¶VQDPHVKDOODSSHDURQWKHFRPSXWHUHTXLSPHQW7KH  &RQWUDFW9HQGRUVVKDOOSURYLGHWKHZDUUDQW\VHUYLFHDQGPDLQWHQDQFHIRUHTXLSPHQWRQD0DVWHU$JUHHPHQW YES NO   M 'HVFULEHSURSRVHGZDUUDQW\LQ6HFWLRQ$LQDFFRUGDQFHWR:6&$1$632ZDUUDQW\WHUP 7+,5'3$57<352'8&763URGXFWVRIIHUHGPD\EHPDQXIDFWXUHGE\DWKLUGSDUW\KRZHYHU&RQWUDFW9HQGRU PXVWSURYLGHWKHZDUUDQW\VHUYLFHDQGPDLQWHQDQFHIRUDOOWKLUGSDUW\SURGXFWVRQWKH0DVWHU$JUHHPHQW&RQWUDFW  9HQGRUPD\QRWRIIHUDQRWKHUPDQXIDFWXUH¶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

  6(&7,215(63216(5(48,5(0(176_B   0 0((76 $ 5(63216(5(48,5(0(176%86,1(66  81'(567$1'  0$1'$725< :,//&203/<" 0$,17$,1,1*7+(352'8&7$1'6(59,&(6&+('8/( 366 &RQWUDFW9HQGRUVZLOOGHYHORSDQGPDLQWDLQDQ HOHFWURQLF3URGXFWDQG6HUYLFH6FKHGXOH 366 ZKLFKLGHQWLILHVDFRPSOHWHOLVWLQJRIDOOSURGXFWVDQGVHUYLFHV LQFOXGHGLQWKHDZDUGHG0DVWHU$JUHHPHQWDVZHOODVLQGLYLGXDO3DUWLFLSDWLQJ6WDWH¶V366¶V,WLVXQGHUVWRRGWKDW PDQXIDFWXUHU¶VSULFLQJPRGHOVZLOOYDU\DQGILQDOQHJRWLDWLRQRIKRZWKH366LVSUHVHQWHGZLOOEHILQDOL]HGXSRQDZDUG 7KH366ZLOOEHDYDLODEOHIRUDXGLWSXUSRVHVDQGHQGXVHUVWRYHULI\SULFLQJEDVHGRQWKHPLQLPXPGLVFRXQWV ZLWKFDWHJRUL]HGH[FHSWLRQVSURYLGHGRIIDGHVLJQDWHGEDVHOLQHSULFHOLVW7KHPLQLPXPGLVFRXQWVZLWKFDWHJRUL]HG H[FHSWLRQVDQGGHVLJQDWHGSULFHOLVWPXVWEHSURYLGHGXSRQUHTXHVW7KH366PD\FRQWDLQWKHIROORZLQJLQIRUPDWLRQ x %DQGQXPEHU x &DWHJRU\ x 3URGXFW%UDQG x ,WHPQXPEHU x ,WHPGHVFULSWLRQ x /LVW3ULFH x 'LVFRXQWSURYLGHG  x 'LVFRXQWHGSULFH M YES NO   366LVWREHPDLQWDLQHGDVIROORZV  7KH366SULFHVIRU3URGXFWVDQGVHUYLFHVZLOOFRQIRUPWRWKHJXDUDQWHHGPLQLPXPGLVFRXQWZLWKFDWHJRUL]HG H[FHSWLRQOHYHOV  7KH&RQWUDFW9HQGRUPD\PDNHPRGHOFKDQJHVDGGQHZ3URGXFWVDQG3URGXFWXSJUDGHVRU6HUYLFHVWRWKH 366  7KH&RQWUDFW9HQGRUDJUHHVWRGHOHWHREVROHWHDQGGLVFRQWLQXHG3URGXFWVIURPWKH366  7KH&RQWUDFW9HQGRUZLOOZRUNZLWKHDFK6WDWHWRGHYHORSDVDWLVIDFWRU\366UHIOHFWLQJWKHLQGLYLGXDO6WDWHV UHVWULFWLRQV  7KHVWDWHUHVHUYHVWKHULJKWWRPDNH366IRUPDWFKDQJHVWKURXJKRXWWKHOLIHRIWKHPDVWHUDJUHHPHQW  &RQWUDFW9HQGRUZLOOUHTXHVWFKDQJHVWRWKH366XWLOL]LQJDQ$FWLRQ5HTXHVW)RUP $5) $VDPSOHKDVEHHQ SURYLGHGLQWKH6HFWLRQ7KLV$5)ZLOOEHILQDOL]HGXSRQQHJRWLDWLRQVDQGUHDIILUPVDQGWUDFNVFKDQJHVPDGHWRWKH 0DVWHU$JUHHPHQW&KDQJHVPD\EHPDGHTXDUWHUO\ :$55$17<$1'0$,17(1$1&(7KH&RQWUDFW9HQGRUVKDOOHQVXUHZDUUDQW\VHUYLFHDQGPDLQWHQDQFHIRUDOO HTXLSPHQWLQFOXGLQJWKLUGSDUW\SURGXFWVSURYLGHG'HVFULEHLQGHWDLOKRZWKHUHVSRQGHUZLOOVHFXUHZDUUDQW\IRUDOO  SURGXFWVDQGVHUYLFHV7KH&RQWUDFWYHQGRUDJUHHVWRIDFLOLWDWHWKH0DQXIDFWXUHURU3XEOLVKHUZDUUDQW\DQG YES NO  M PDLQWHQDQFHRIWKLUGSDUW\SURGXFWVIXUQLVKHGWKURXJKWKH0DVWHU$JUHHPHQW'HVFULEHLQGHWDLOKRZWKHUHVSRQGHU ZLOOVHFXUHZDUUDQW\IRUDOOSURGXFWVDQGVHUYLFHV

  6(&7,215(63216(5(48,5(0(176_B   0 0((76 $ 5(63216(5(48,5(0(176%86,1(66  81'(567$1'  0$1'$725< :,//&203/<" /($6,1*,QGLYLGXDO3DUWLFLSDWLQJ6WDWHVDQG3DUWLFLSDWLQJ(QWLWLHVPD\HQWHULQWROHDVHDJUHHPHQWVIRUWKHSURGXFWV FRYHUHGLQWKH0DVWHU$JUHHPHQWVUHVXOWLQJIURPWKH5)3LIWKH\KDYHWKHOHJDODXWKRULW\WRHQWHULQWRWKHVHW\SHVRI  DJUHHPHQWV7KH3DUWLFLSDWLQJ$GGHQGXPE\HDFK6WDWHZLOOLGHQWLI\LIDQGKRZOHDVLQJDJUHHPHQWWHUPVZLOOEH YES NO FRQGXFWHG

'(/,9(5<'HOLYHU\RIRUGHUHGSURGXFWVKRXOGEHFRPSOHWHGZLWKLQWKLUW\  FDOHQGDUGD\VDIWHUUHFHLSWRIDQRUGHU  M YES NO XQOHVVRWKHUZLVHDJUHHGWRE\WKHRUGHULQJDJHQF\ )5(,*+7$OOSULFHVVKDOOEH)2%'HVWLQDWLRQSUHSDLGDQGDOORZHG ZLWKIUHLJKWLQFOXGHGLQWKHSULFH WRWKHDGGUHVV UHFHLYLQJGRFNRUZDUHKRXVHDVVSHFLILHGRQWKHRUGHULQJDJHQF\¶VSXUFKDVHRUGHU,QWKRVHVLWXDWLRQVLQZKLFKWKH  ³GHOLYHUWR´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x KRZWKHUHVSRQGHUUHJXODUO\VHOIDXGLWVWKH0DVWHU$JUHHPHQWWRHQVXUHFRPSOLDQFH  x KRZDQHQGXVHUZLOOEHDEOHWRVHOIDXGLWWRHQVXUHTXRWHVSURYLGHGDUHDWWKHGLVFRXQWRIIOLVWSULFH M YES NO  x KRZRIWHQWKHZHESULFLQJDQGLQYRLFLQJLVDXGLWHGWRLQVXUHFRQWUDFWXDOFRPSOLDQFH x UHSRUWLQJPHFKDQLVPVDYDLODEOHVXFKDV,QYRLFHUHSRUWVZKLFKZLOODVVLVWLQ6WDWH¶VDELOLW\WRDXGLWWKH0DVWHU $JUHHPHQWWKURXJKYHQGRUVXSSOLHGUHSRUWLQJWRROV x KRZWKHUHVSRQGHUHQVXUHVWKDW6WDWHVZLWKPXOWLSOH0DVWHU$JUHHPHQWVDUHPRQLWRUHGWRHQVXUHSXUFKDVHV DUHFRUUHFWO\ERRNHGZLWKWKHFRUUHFW0DVWHU$JUHHPHQW 6(/)$8',79HQGRUVDUHUHTXLUHGWRFRQGXFWDWDPLQLPXPDTXDUWHUO\VHOIDXGLWXQOHVVDSSURYHGE\WKH/HDG

 6WDWH7KHDXGLWZLOOVDPSOHDPLQLPXPRIRQHWHQWKRIRQHSHUFHQW  RIRUGHUVZLWKDPD[LPXPRIDXGLWVSHU  TXDUWHUFRQGXFWHG)RUH[DPSOH8SWRVDOHV DXGLWVDOHV DXGLWV8SWRVDOHV  M YES NO  DXGLWV7KLVZLOOEHDUDQGRPVDPSOHRIRUGHUVDQGLQYRLFHVDQGPXVWLQFOXGHGRFXPHQWDWLRQRISULFLQJ6XPPDU\ ILQGLQJVDUHWREHUHSRUWHGWR/HDG6WDWHZLWKDFWLRQVWRFRUUHFWGRFXPHQWHGILQGLQJV 35()(5(1&(352*5$06'HVFULEHH[SHULHQFHDQGFDSDFLW\WRPHHWPLQRULW\DQGZRPHQEXVLQHVVHQWHUSULVHV

 DQGRWKHUORFDOSXUFKDVLQJSUHIHUHQFHVWKDWYDU\DPRQJSRWHQWLDO3DUWLFLSDWLQJ(QWLWLHVLQFOXGLQJEXWQRWOLPLWHGWRWKH YES NO XVHRIWKHVHEXVLQHVVHVLQWKHLUSDUWQHUUHODWLRQVKLSV

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

0$67(5$*5((0(177(50,1$7,218SRQWHUPLQDWLRQRUH[SLUDWLRQRIWKH0DVWHU$JUHHPHQWDZDUGHGIURPWKLV 5)3WKHIROORZLQJZLOORFFXU x $OOZHEVLWHVRQOLQHRIIHULQJV\VWHPVDQG(OHFWURQLF&DWDORJIXQFWLRQVVXSSRUWHGDQGRUDYDLODEOHDVSDUWRI WKH0DVWHU$JUHHPHQWZLOOFHDVHDQGEHUHPRYHGIURPSXEOLFYLHZLQJDFFHVVZLWKRXWUHGLUHFWLQJWRDQRWKHU ZHEVLWH  x ,IDSSURYHGE\WKH/HDG6WDWH&XVWRPHUGDWDXVHUDFFRXQWVDFTXLUHGGXULQJWKHWHUPRIWKH0DVWHU YES NO $JUHHPHQWVKDOOEHGHVWUR\HGRUUHWXUQHGWRWKH6WDWHDWWKHUHTXHVWRIWKH3DUWLFLSDWLQJ6WDWH¶VDGPLQLVWUDWRU XQOHVVUHTXLUHGWRPDLQWDLQSHUDXGLW x 1RUHIHUHQFHVWRWKH0DVWHU$JUHHPHQWVKDOOEHPDGHRQWKH&RQWUDFW9HQGRU¶VFRPPHUFLDOZHEVLWHZLWKRXW SHUPLVVLRQE\WKH/HDG6WDWH x ,IDSSURYHGE\WKH/HDG6WDWHKDUGFRS\FDWDORJVDQGSURPRWLRQDOOLWHUDWXUHVKDOOEHGHVWUR\HGRUUHWXUQHGWR WKH3DUWLFLSDWLQJ6WDWHDWWKHHQGRIWKH0DVWHU$JUHHPHQWWHUPXSRQWKHUHTXHVWRIWKH3DUWLFLSDWLQJ6WDWH 35(0,806$9,1*63$&.$*(352*5$0&RQWUDFW9HQGRUVZKRSDUWLFLSDWHLQWKH363SURJUDPFRPPLWWR YES NO PDLQWDLQDQGXSJUDGH NHHSSDFHZLWKWKHDGYDQFHRIWHFKQRORJ\ WKHVWDQGDUGFRQILJXUDWLRQVIRUDVWDWHGSHULRGRI  WLPHRULQWHUYDOVDVGHWHUPLQHGE\WKH3DUWLFLSDWLQJ(QWLWLHV3URYLGHPDUNHWLQJSODQRIWKH3633URJUDPLQFOXGLQJ n/a for server OHDGLQJZLWK3633URJUDPDQGGLVSOD\LQJSURPLQHQWO\RQZHEVLWHVWRPDUNHWDJJUHVVLYHO\WRDOO6WDWHV storage vendors 352027,216&RQWUDFW9HQGRUVDUHDOORZHGWRSURYLGHSURPRWLRQVIRUGHHSO\GLVFRXQWHGSURGXFWVEDVHGRQWKHLU

LQYHQWRU\DQGVDOHV3URPRWLRQVZLOODOVRSURYLGHLQFUHDVHGVDYLQJVWR6WDWHV7KH&RQWUDFW9HQGRUVZLOOEH  YES NO UHVSRQVLEOHWRPDUNHWWKHVHRIIHUV'HVFULEHZKDWNLQGRISURPRWLRQVZLOOEHDYDLODEOHDQGKRZPDUNHWLQJZLOOEH FRQGXFWHG 

  6(&7,215(63216(5(48,5(0(176_B   

%5(63216(5(48,5(0(176(19,5210(17$/ &RQILUPWKHUHVSRQGHUPHHWVXQGHUVWDQGVDQGZLOOFRPSO\ZLWKWKHUHTXLUHPHQWE\FKHFNLQJ<(60DQGDWRU\5HTXLUHPHQWV DUHLQGLFDWHGZLWK³0´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±,QJHQHUDOKRZGRHVWKHUHVSRQGHULGHQWLI\SURGXFWORQJHYLW\SHUFHQWRISDFNDJLQJDQG SDFNLQJPDWHULDOVWKDWDUHUHF\FOHGUHXVDEOHDYDLODELOLW\RIUHSODFHPHQWSDUWVIRUOLIHH[WHQVLRQFRVWDQG FRPSOLFDWLRQWRXSJUDGH &25325$7(±GHWDLOLIFRPSDQ\KDVLQSODFHUHJDUGLQJVHOOSURFXUHPHQWRIUHIXUELVKHGUHPDQXIDFWXUHG SURGXFWV F(QYLURQPHQWDOFHUWLILFDWLRQV'HVFULEHKRZFHUWLILFDWLRQVUHJLVWUDWLRQVDUHLGHQWLILHGRQWKHZHEVLWHDVZHOODV ODEHOVRQHTXLSPHQWDQGRUSDFNLQJOLVW

 (3($75(*,675$7,215HVSRQGHUDJUHHVWKDWDSSOLFDEOHSURGXFWVRIIHUHGWKDWKDYH(3($76WDQGDUGV M YES NO SURYLGHGXQGHUWKH0DVWHU$JUHHPHQWVUHVXOWLQJIURPWKLV5)3DUHWRKDYHDFKLHYHGDPLQLPXP(3($7  %URQ]HUHJLVWUDWLRQ n/a storage 727$/&2672)2:1(56+,3'HVFULEHKRZ\RXUFRPSDQ\FDQSURYLGHXVHUVLQIRUPDWLRQWRDVVLVWLQ

 HYDOXDWLQJWKH7RWDO&RVWRI2ZQHUVKLSLQXWLOL]LQJSURGXFWV(JHTXLSPHQWWKDWUXQVPRUHHIILFLHQWO\ZLWKOHVV YES NO VXSSOLHVHWF  (1(5*<67$5&203/,$17352'8&76'HVFULEHPDQXIDFWXUHUFRPPLWPHQWWR(QHUJ\6WDU3URJUDP YES NO

(19,5210(17$/,03529(0(17352*5$0'HVFULEH3URGXFWHQYLURQPHQWDOLPSURYHPHQWSURJUDPIRU SURGXFWVWKDWKDYHQRW\HWUHFHLYHGWKHDSSOLFDEOHVWDQGDUGVRUFHUWLILFDWLRQ,QDGGLWLRQGHVFULEHHQYLURQPHQWDO  HIIRUWVLQHDFKRIWKHIROORZLQJDUHDVUHGXFWLRQPLQLPL]DWLRQDYRLGDQFHRIWKHXVHRIWR[LFDQGKD]DUGRXV YES NO FRQVWLWXHQWV FDGPLXPFKURPLXPPHUFXU\DQGRUOHDG FRPSOLDQFHZLWKLQWHUQDWLRQDOGLUHFWLYHVVXFKDVWKH (XURSHDQ8QLRQ¶V:((('LUHFWLYHRQUHGXFWLRQRIFKORULQDWHGSODVWLFV 39& DQGEURPLQDWHGIODPHUHWDUGDQWV

  6(&7,215(63216(5(48,5(0(176_B   &5(63216(5(48,5(0(17648$/,),&$7,216  &RQILUPWKHUHVSRQGHUPHHWVXQGHUVWDQGVDQGZLOOFRPSO\ZLWKWKHUHTXLUHPHQWE\FKHFNLQJ<(60DQGDWRU\5HTXLUHPHQWV DUHLQGLFDWHGZLWK³0´QHHGWREHFKHFNHG\HV'(6&5,%()8//<$1'3529,'('(7$,/+2:7+(352326$/6$7,6),(6 ($&+,7(0   0 0((76  81'(567$1' & 5(63216(5(48,5(0(17648$/,),&$7,216 0$1'$725< :,// &203/<" &203$1<+,6725<5HVSRQGHUVPXVWSURYLGHDEULHIKLVWRU\DQGGHVFULSWLRQRIWKHLUFRPSDQ\GHWDLOLQJKRZ WKH\ZLOOVXSSRUWWKLV0DVWHU$JUHHPHQW )DFLOLWLHV5HVSRQGHUVPXVWLQGLFDWHQXPEHUDQGORFDWLRQRIPDQXIDFWXULQJSODQWVGLVWULEXWLRQRXWOHWVDQG VXSSRUWFHQWHUVDVDSSURSULDWH3URYLGHLQIRUPDWLRQRQIDFLOLW\SURGXFWLRQYROXPHLQ&DOHQGDU

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x SURFHVVWRTXDOLI\SDUWQHUVDQGVDOHVSHUVRQQHOWRUHSUHVHQWWKHSURGXFW x EXVLQHVVUHODWLRQVKLSEHWZHHQSDUWQHUVDQGWKHPDQXIDFWXUHUDQGVHUYLFHVWREHSHUIRUPHGIRUH[DPSOH LISDUWQHUVZLOORQO\EHXVHGIRUDVVLVWDQFHLQORFDWLQJSURGXFWVVHUYLFHVRULISDUWQHUVZLOOEHXVHGWR DFFHSWRUGHUVDQGSD\PHQWV ZLWKWKHDJUHHPHQWRIWKH3DUWLFLSDWLQJ6WDWH  x KRZSDUWQHUVDUHFHUWLILHG x KRZSDUWQHUVDUHFRQWUDFWXDOO\ERXQGWRWKH0DVWHU$JUHHPHQWWHUPVDQGFRQGLWLRQVDQG x KRZSDUWQHUVDOHVZLOOEHDFFXUDWHO\WUDFNHGDQGUHSRUWHG x 5HPHG\SODQLIWKHSDUWQHURUVDOHVSHUVRQQHODUHQRWLQFRPSOLDQFH  (48,30(17$1'6(59,&(629(59,(:'HVFULEHDELOLW\WRSURYLGHFRPSXWHUHTXLSPHQWDQGWKHVHUYLFHV UHODWHGWRVXSSRUWLQJWKHHTXLSPHQW,QFOXGHDQRYHUYLHZRIKRZWKHHTXLSPHQWLVGHOLYHUHGDQGVHUYLFHG 7KRURXJKO\GHVFULEHRIIHULQJVDQGWKHDELOLW\WRSURYLGHWKHVHVHUYLFHV QRWDOOVHUYLFHVPD\EHDSSOLFDEOHWR HDFKEDQG  x :DUUDQW\%UHDN)L[±1RQ:DUUDQW\ x 6WDQGDUGQRQFXVWRPL]HG7UDLQLQJ x ,QVWDOODWLRQGHLQVWDOODWLRQ M x 6XSSRUW x 0LJUDWLRQ x $VVHW7DJJLQJ  x 6WDJLQJ'HSOR\PHQW YES NO   x ,PDJHORDGLQJ x ,PDJH&RQVXOWLQJ x 6\VWHPDQG6HUYHU&RQILJXUDWLRQ x 5DFNDQG6WDFN&RQILJXUDWLRQ x 0DLQWHQDQFH x &XVWRPVHUYLFHVROXWLRQV x $VVHW0DQDJHPHQW x 5HF\FOLQJGLVSRVDO x 7UDLQLQJDQG&HUWLILFDWLRQ x 2WKHUVHUYLFHVDYDLODEOHDVDOORZHGLQWKHVROLFLWDWLRQ

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

&86720(56$7,6)$&7,21'HVFULEHVXFFHVVLQFXVWRPHUVDWLVIDFWLRQ7KLVFRXOGLQFOXGHFXUUHQWFXVWRPHU  VDWLVIDFWLRQVWDWLVWLFVRUVXUYH\UHVXOWVFRQFHUQLQJWKHTXDOLW\RIWKH3URGXFWVDQGVHUYLFHVRIIHUHG YES NO 



  6(&7,215(63216(5(48,5(0(176_B  

'5(63216(5(48,5(0(176&86720(56833257$1'0$67(5$*5((0(170$1$*(0(17  &RQILUPWKHUHVSRQGHUPHHWVXQGHUVWDQGVDQGZLOOFRPSO\ZLWKWKHUHTXLUHPHQWE\FKHFNLQJ<(60DQGDWRU\5HTXLUHPHQWV DUHLQGLFDWHGZLWK³0´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x &RS\RI6ROLFLWDWLRQ 5HVSRQVH  x 6LJQHG0DVWHU$JUHHPHQW  x 6LJQHG3DUWLFLSDWLQJ$GGHQGXPV  x 'HVLJQDWHG%DVHOLQHSULFHOLVW 0653/LVW(GXFDWLRQ   x 3URGXFWDQG6HUYLFH6FKHGXOH 366  0 x 3URGXFWVSHFLILFDWLRQVSULFLQJDQGFRQILJXUDWLRQDLGVIRUWKHPDMRUSURGXFWFDWHJRULHVSURSRVHGWKDWFDQEH XVHGWRREWDLQDQRQOLQHTXRWH x 2QOLQHRUGHULQJFDSDELOLW\ZLWKWKHDELOLW\WRUHPHPEHUPXOWLSOHVKLSWRORFDWLRQVLIDSSOLFDEOHWRSURGXFW x 6HUYLFHRSWLRQVVHUYLFHDJUHHPHQWV x &RQWDFWLQIRUPDWLRQIRURUGHUSODFHPHQWVHUYLFHFRQFHUQV ZDUUDQW\DQGPDLQWHQDQFH SUREOHPUHSRUWLQJ DQGELOOLQJFRQFHUQV  x 6DOHVUHSUHVHQWDWLYHVIRUSDUWLFLSDWLQJHQWLWLHV YES NO   x 3XUFKDVHRUGHUWUDFNLQJ x /LQNVWRHQYLURQPHQWDOFHUWLILFDWLRQLQFOXGLQJEXWQRWOLPLWHGWRWDNHEDFNUHF\FOLQJSURJUDPV(3($7(QHUJ\ 6WDUHWF x ,QIRUPDWLRQRQDFFHVVLELOLW\DQGDFFHVVLEOHSURGXFWV  ,IHOHPHQWVRIWKHZHEVLWHUHTXLUHDVHFXUHORJLQ5HVSRQGHUWRSURYLGHOLVWLQJRILWHPWKDWZRXOGUHTXLUHDVHFXUH VLJQLQRSWLRQHJUHSULQWLQJRILQYRLFHVRUSXUFKDVHRUGHUWUDFNLQJ  7+(5(48(67(':&$*93$7$33/,(6727+(5(6321'(5¶6:(%6,7(72%(2))(5('81'(57+( &2175$&75HVSRQGHUWRSURYLGHFRPSOHWHG93$7IRUPVIRXQGLQWKH)2506VHFWLRQRIWKH5)3  7KH0DVWHU$JUHHPHQWZHEVLWHVKDOORIIHUWZHQW\IRXU  KRXUVSHUGD\VHYHQ  GD\VSHUZHHNDYDLODELOLW\H[FHSW IRUUHJXODUO\VFKHGXOHGPDLQWHQDQFHWLPHV7KHZHEVLWHPXVWEHVHSDUDWHIURPWKH&RQWUDFW9HQGRU¶VFRPPHUFLDOO\ DYDLODEOH LHSXEOLF RQOLQHFDWDORJDQGRUGHULQJV\VWHPV1RRWKHULWHPVRUSULFLQJPD\EHVKRZQRQWKHZHEVLWH ZLWKRXWZULWWHQDSSURYDOIURPWKH/HDG6WDWH    6(&7,215(63216(5(48,5(0(176_B   0 0((76 5(63216(5(48,5(0(176&86720(56833257$1'0$67(5$*5((0(17  81'(567$1' ' 0$1$*(0(17 0$1'$725< :,// &203/<" :LWKLQFDOHQGDUGD\VRI0DVWHU$JUHHPHQWDZDUGWKH&RQWUDFW9HQGRUPXVWSURYLGHDVDPSOH85/RIWKH0DVWHU $JUHHPHQWZHESDJHWRWKH/HDG6WDWHIRUUHYLHZDQGDSSURYDO7KH/HDG6WDWHZLOOUHYLHZDQGGHWHUPLQH DFFHSWDELOLW\RIWKHZHEVLWHIRUPDWDQGGDWD,IWKHLQIRUPDWLRQLVGHWHUPLQHGWREHXQDFFHSWDEOHRULQFRUUHFWWKH &RQWUDFW9HQGRUZLOOKDYHFDOHQGDUGD\VWRSURYLGHUHYLVLRQVWRWKH/HDG6WDWH2QFHWKHZHEVLWHLVDSSURYHGWKH &RQWUDFW9HQGRUPD\QRWPDNHPDWHULDOFKDQJHVWRWKHZHEVLWHZLWKRXWQRWLI\LQJWKH/HDG6WDWHDQGUHFHLYLQJZULWWHQ DSSURYDORIWKHFKDQJHV

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¶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

  6(&7,215(63216(5(48,5(0(176_B   (0$5.(7&(17(55(48,5(0(176  ,Q-XO\:6&$1$632HQWHUHGLQWRDPXOWL\HDUDJUHHPHQWZLWK6FL4XHVW,QFZKHUHE\6FL4XHVWZLOOSURYLGH FHUWDLQHOHFWURQLFFDWDORJKRVWLQJDQGPDQDJHPHQWVHUYLFHVWRHQDEOHHOLJLEOH:6&$1$632HQWLW\¶VFXVWRPHUVWR DFFHVVDFHQWUDORQOLQHZHEVLWHWRYLHZDQGRUVKRSWKHJRRGVDQGVHUYLFHVDYDLODEOHIURPH[LVWLQJ:6&$1$632 &RRSHUDWLYH&RQWUDFWV7KHFHQWUDORQOLQHZHEVLWHLVUHIHUUHGWRDVWKH:6&$1$632H0DUNHW&HQWHU&RQWUDFWRUVKDOO HLWKHUXSORDGDKRVWHGFDWDORJLQWRWKHH0DUNHW&HQWHURULQWHJUDWHDSXQFKRXWVLWHZLWKWKHH0DUNHW&HQWHU  6XSSOLHU¶V,QWHUIDFHZLWKWKHH0DUNHW&HQWHU 7KHUHLVQRFRVWFKDUJHGE\6FL4XHVWWRWKH&RQWUDFWRUIRUORDGLQJDKRVWHGFDWDORJRULQWHJUDWLQJDSXQFKRXWVLWH $WDPLQLPXPWKH&RQWUDFWRUDJUHHVWRWKHIROORZLQJ  ,PSOHPHQWDWLRQ7LPHOLQH:6&$1$632H0DUNHW&HQWHU6LWH$GPLQVKDOOSURYLGHDZULWWHQUHTXHVWWRWKH&RQWUDFWRU WREHJLQHQDEOHPHQWSURFHVV7KH&RQWUDFWRUVKDOOKDYHILIWHHQ  GD\VIURPUHFHLSWRIZULWWHQUHTXHVWWRZRUNZLWK :6&$1$632DQG6FL4XHVWWRVHWXSDQHQDEOHPHQWVFKHGXOHDWZKLFKWLPH6FL4XHVW¶VWHFKQLFDOGRFXPHQWDWLRQ VKDOOEHSURYLGHGWRWKH&RQWUDFWRU7KHVFKHGXOHZLOOLQFOXGHIXWXUHFDOOVDQGPLOHVWRQHGDWHVUHODWHGWRWHVWDQGJR OLYHGDWHV7KHFRQWUDFWRUVKDOOKDYHDWRWDORI1LQHW\  GD\VWRGHOLYHUHLWKHUD  KRVWHGFDWDORJRU  SXQFKRXW FDWDORJIURPGDWHRIUHFHLSWRIZULWWHQUHTXHVW  'HILQLWLRQRI+RVWHGDQG3XQFKRXW:6&$1$632DQG6FL4XHVWZLOOZRUNZLWKWKH&RQWUDFWRUWRGHFLGHZKLFKRIWKH FDWDORJVWUXFWXUHV HLWKHUKRVWHGRUSXQFKRXWDVIXUWKHUGHVFULEHGEHORZ VKDOOEHSURYLGHGE\WKH&RQWUDFWRU :KHWKHUKRVWHGRUSXQFKRXWWKHFDWDORJPXVWEHVWULFWO\OLPLWHGWRWKH&RQWUDFWRU¶VDZDUGHGFRQWUDFW RIIHULQJ HJSURGXFWVDQGRUVHUYLFHVQRWDXWKRUL]HGWKURXJKWKHUHVXOWLQJFRRSHUDWLYHFRQWUDFWVKRXOGQRW EHYLHZDEOHE\:6&$1$6323DUWLFLSDWLQJ(QWLW\XVHUV  D +RVWHG&DWDORJ%\SURYLGLQJDKRVWHGFDWDORJWKH&RQWUDFWRULVSURYLGLQJDOLVWRILWVDZDUGHG SURGXFWVVHUYLFHVDQGSULFLQJLQDQHOHFWURQLFGDWDILOHLQDIRUPDWDFFHSWDEOHWR6FL4XHVWVXFKDV7DE 'HOLPLWHG7H[WILOHV,QWKLVVFHQDULRWKH&RQWUDFWRUPXVWVXEPLWXSGDWHGHOHFWURQLFGDWDTXDUWHUO\WRWKH WKHH0DUNHW&HQWHUIRU/HDG6WDWH¶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¶VVXEPLWWHGSULFLQJILOHVZLOOGHOD\WKHLPSOHPHQWDWLRQRIWKHSULFH FKDQJHVLQH0DUNHW&HQWHU  6XSSOLHU1HWZRUN5HTXLUHPHQWV&RQWUDFWRUVKDOOMRLQWKH6FL4XHVW6XSSOLHU1HWZRUN 6461 DQGVKDOOXVHWKH 6FL4XHVW¶V6XSSOLHU3RUWDOWRLPSRUWWKH&RQWUDFWRU¶VFDWDORJDQGSULFLQJLQWRWKH6FL4XHVWV\VWHPDQGYLHZUHSRUWV RQFDWDORJVSHQGDQGSURGXFWSULFLQJIUHVKQHVV7KH&RQWUDFWRUFDQUHFHLYHRUGHUVWKURXJKHOHFWURQLFGHOLYHU\ F;0/ RUWKURXJKORZWHFKRSWLRQVVXFKDVID[0RUHLQIRUPDWLRQDERXWWKH6461FDQEHIRXQGDW ZZZVFLTXHVWFRPRUFDOOWKH6FL4XHVW6XSSOLHU1HWZRUN6HUYLFHVWHDPDW

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¶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¶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

  _B  

6(&7,21&267352326$/  68%0,7,1$6(3$5$7(6($/('(19(/23(   0 0((76  81'(567$1'  &267352326$/ 0$1'$725< :,// &203/<" 35,&(6758&785(7KLV5)3ZLOOHPSOR\D0,1,080GLVFRXQWRIIOLVWSULFHVWUXFWXUHZLWKFDWHJRUL]HGH[FHSWLRQVIRU HDFKEDQG,WLVXQGHUVWRRGWKHUHPD\EHFDWHJRULHVZLWKLQDEDQGZKLFKFDUU\DGLIIHUHQWGLVFRXQWWKDQWKHPLQLPXP VWDWHG)RUH[DPSOHWKHPLQLPXPGLVFRXQWIRUWKHODSWRSEDQGFRXOGEH7KHUHVSRQGHUPD\QDPHDQDGGLWLRQDO M FDWHJRU\RIODSWRSV³/DSWRS%UDQG;´DWDQG³/DSWRS%UDQG<´DW5HVSRQGHUPD\FDWHJRUL]HWKHVHH[FHSWLRQV E\QDPLQJDVFDWHJRULHVDQGLGHQWLI\LQJWKHDVVRFLDWHGGLVFRXQWVLQWKHSULFHZRUNERRN7KHVHGLVFRXQWVPXVWUHPDLQ ILUPRUWKHGLVFRXQWPD\EHLQFUHDVHGGXULQJWKHWHUPRIWKH0DVWHU$JUHHPHQW7KLVPLQLPXPGLVFRXQWDQGFDWHJRUL]HG H[FHSWLRQVZLOOEHDSSOLHGWRDOO³TXDQWLW\RQH´SURFXUHPHQWV,WZLOODOVRVHUYHDVYHULILFDWLRQIRUWKH:6&$0DVWHU  $JUHHPHQW$GPLQLVWUDWRUXSRQVXEPLWWDOVRISURGXFWDGGLWLRQV$QHQGXVHUZLOOEHDEOHWRYHULI\SULFLQJXVLQJWKHEDVH YES NO  OLQHSULFHOLVWDQGWKHPLQLPXPGLVFRXQWVZLWKWKHFDWHJRUL]HGH[FHSWLRQVSURYLGHG7KHUHVSRQGHUPXVWGHVLJQDWHD ³%DVH/LQH3ULFH/LVWHJ0653HGXFDWLRQSULFHOLVW7KHSULFHOLVWVXEPLWWHGPXVWEHGDWHG1RYHPEHU$ GLVFRXQWVFKHGXOHLVWREHSURYLGHGIRUHDFKEDQGLQWKH3ULFH:RUNERRN5HVSRQGHUVPD\GHILQHDGGLWLRQDOFDWHJRULHV ZLWKLQDEDQG7KHFDWHJRU\GLVFRXQWVPD\EHKLJKHURUORZHUWKDQWKHWKDQWKHEDQGGLVFRXQW5HVSRQGHUPXVWGHVFULEH DOODYDLODEOHRSWLRQVIRUSULFLQJVHUYLFHVLQWKH3ULFH:RUNERRNVVXFKDVGLVFRXQWRIIOLVWKRXUO\IHHVSHUXQLWIHHVHWF 7KHZRUNVKHHWDOORZVIRUXSWRVHYHQFDWHJRULHVKRZHYHUWKHUHVSRQGHUPD\HGLWWKHLUVXEPLVVLRQWRLQFOXGHDGGLWLRQDO FDWHJRULHVLIQHHGHG 35,&(:25.%22.63ULFH:RUNERRNVZLOOEHXVHGWRHYDOXDWH5HVSRQGHUVZLOOEHHYDOXDWHGRQWKH3ULFH:RUNERRN ZKLFKLQFOXGHVDPDUNHWEDVNHWIRUHDFKEDQG)RUHDFKEDQGSURSRVHGWKH5HVSRQGHUPXVWFRPSOHWHWKH3ULFH M :RUNERRNZKLFKLQFOXGHVVHYHUDOZRUNVKHHWV 7KHPDUNHWEDVNHWLQFOXGHVVHOHFWHGFRQILJXUDWLRQVVHUYLFHVSHULSKHUDOVWKLUGSDUW\SURGXFWVWRIDLUO\HYDOXDWH GLVFRXQWHGSULFLQJ,QHYDOXDWLRQWKH6WDWHUHVHUYHVWKHULJKWWR D (OLPLQDWHDQLWHPIURPFRQVLGHUDWLRQIURPDOOUHVSRQVHV  E (QWHUWKHKLJKHVWSULFHLWHPRIDOOUHVSRQVHVUHFHLYHGZKHQDQLWHPKDVQRWEHHQSURYLGHGE\DUHVSRQGHU YES NO F 5HTXHVWDGGLWLRQDOSULFLQJLWHPVIRUFRQVLGHUDWLRQ G &ODULI\SULFLQJUHVSRQVHVZLWKUHVSRQGHU V  H,QFOXGHRSWLRQVTXDQWLW\GLVFRXQWVDQGRUVHUYLFHVIRUEDVLVRIFDOFXODWLQJWKHFRVWXWLOL]HGLQHYDOXDWLRQ 7KH&RQWUDFW9HQGRUZLOOPDLQWDLQWKHGLVFRXQWVWUXFWXUHDVELGWKURXJKRXWWKHWHUPRIWKH0DVWHU$JUHHPHQW )RUWKHSXUSRVHRIFRPSDULQJSULFLQJDFURVVDVWDQGDUGJURXSRISURGXFWVWKHSULFHVSURYLGHGE\WKHUHVSRQGHULQWKH   6(&7,21&267352326$/_B   0 0((76  81'(567$1'  &267352326$/ 0$1'$725< :,// &203/<" 3ULFH:RUNERRNVZLOOEHXWLOL]HGWRFDOFXODWHFRVWSRLQWV9HQGRUVPXVWXVHWKHPLQLPXPSHUFHQWDJHGLVFRXQWVWDWHGIURP DSXEOLVKHGRUEDVHOLQHSULFHOLVWLQJIRUD³TXDQWLW\RQH´SXUFKDVHLQWKH3ULFLQJ:RUNERRN 0LQLPXPVSHFLILFDWLRQVDUHSURYLGHGLQWKH3ULFH:RUNERRNV 0DQXIDFWXUHUVSHFLILFLWHPVPD\EHVXEVWLWXWHGIRUWKHPLQLPXPVSHFLILFDWLRQLIWKHPDQXIDFWXUHULVDEOHWRSURYLGHDQ DSSURYHGHTXDO7KHOHDGVWDWHUHVHUYHVWKHULJKWWRUHMHFWDQ\RUDOOUHVSRQVHVWKDWDUHQRWDQDSSURYHGHTXDO

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

 %$6(/,1(35,&,1*9(5,),&$7,217KHUHVSRQGHUPXVWGHVLJQDWHD%DVH/LQH3ULFHHJ0653HGXFDWLRQSULFHOLVWLQ WKHSULFHZRUNERRN7KHSULFHOLVWVXEPLWWHGLVWREHGDWHG1RYHPEHU3HU$GGHQGXP7KH%DVHOLQH3ULFH/LVW YES NO  VXEPLWWHGPD\EHGDWHGDQDOWHUQDWHGDWH+RZHYHUWKHPDUNHWEDVNHWSULFLQJPXVWEHUHSUHVHQWDWLYHRIWKHSULFLQJIRUDQ

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³/LVW0653´SULFHLVUHTXHVWHG 0,1,080',6&281767KH&RQWUDFW9HQGRUZLOOSURYLGHD0,1,080GLVFRXQWRIIEDVHOLQHSULFHOLVWIRUHDFKEDQGZLWK M FDWHJRUL]HGH[FHSWLRQV,WLVXQGHUVWRRGWKHUHPD\EHFDWHJRULHVZLWKLQDEDQGZKLFKFDUU\DGLIIHUHQWGLVFRXQWWKDQWKH PLQLPXPVWDWHG)RUH[DPSOHWKHPLQLPXPGLVFRXQWIRUWKHODSWRSEDQGFRXOGEH7KHUHVSRQGHUPD\QDPHDQ DGGLWLRQDOFDWHJRU\RIODSWRSV³/DSWRS%UDQG;´DWDQG³/DSWRS%UDQG<´DW5HVSRQGHUPD\FDWHJRUL]HWKHVH H[FHSWLRQVE\QDPLQJDVFDWHJRULHVDQGLGHQWLI\LQJWKHDVVRFLDWHGGLVFRXQWVLQWKHSULFHZRUNERRN7KHVHGLVFRXQWVPXVW UHPDLQILUPRUWKHGLVFRXQWPD\EHLQFUHDVHGGXULQJWKHWHUPRIWKH0DVWHU$JUHHPHQW7KLVPLQLPXPGLVFRXQWDQG  FDWHJRUL]HGH[FHSWLRQVZLOOEHDSSOLHGWRDOO³TXDQWLW\RQH´SURFXUHPHQWV,WZLOODOVRVHUYHDVYHULILFDWLRQIRUWKH:6&$ YES NO  0DVWHU$JUHHPHQW$GPLQLVWUDWRUXSRQVXEPLWWDOVRISURGXFWDGGLWLRQV$QHQGXVHUZLOOEHDEOHWRYHULI\SULFLQJXVLQJWKH EDVHOLQHSULFHOLVWDQGWKHPLQLPXPGLVFRXQWVZLWKWKHFDWHJRUL]HGH[FHSWLRQVSURYLGHG7KHQDPHGFDWHJRU\H[FHSWLRQ GLVFRXQWVPD\EHKLJKHURUORZHUWKDQWKHWKDQWKHPLQLPXPEDQGGLVFRXQW7KHVHGLVFRXQWVPXVWUHPDLQILUPRUWKH GLVFRXQWPD\EHLQFUHDVHGGXULQJWKHWHUPRIWKH0DVWHU$JUHHPHQW7KLVPLQLPXPGLVFRXQWDQGFDWHJRUL]HGH[FHSWLRQV ZLOOEHDSSOLHGWRDOO³TXDQWLW\RQH´SURFXUHPHQWV,WZLOODOVRVHUYHDVYHULILFDWLRQIRUWKH:6&$0DVWHU$JUHHPHQW $GPLQLVWUDWRUXSRQVXEPLWWDOVRISURGXFWDGGLWLRQV$QHQGXVHUZLOOEHDEOHWRYHULI\SULFLQJXVLQJWKHEDVHOLQHSULFLQJ DQGPLQLPXPGLVFRXQWVDQGFDWHJRUL]HGH[FHSWLRQVSURYLGHG 7+,5'3$57<352'8&767KLUGSDUW\SURGXFWVPD\EHRIIHUHGDVSHULSKHUDOVDQGRSWLRQVLQWKH3ULFH:RUNERRN

7KLUG3DUW\SURGXFWVZLOOEHDSSURYHGXSRQILQDOL]DWLRQRIWKH366&RQWUDFW9HQGRUVDUHQRWDEOHWRRIIHUDQRWKHU&RQWUDFW  YES NO 9HQGRU¶VSURGXFWDVDWKLUGSDUW\ZLWKRXWDSSURYDO,IWKLUGSDUW\SURGXFWVDUHRIIHUHGDWKLUGSDUW\SURGXFWPLQLPXP GLVFRXQWZLOOEHVWDWHGLQWKHSULFHZRUNERRN

 5()5(6+675$7(*<'HVFULEH\RXUUHFRPPHQGHGUHIUHVKVWUDWHJ\IRU\RXUSURGXFWOLQH YES NO 0$,17$,1,1*&203(7,7,9(35,&,1*3URSRVHUVZLOOSURYLGHDQLQLWLDO0,1,080GLVFRXQWZLWKFDWHJRUL]HGH[FHSWLRQV

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

3DFNDJH 363 3URJUDP,ILQWHQGLQJWRSDUWLFLSDWHSURSRVHDQGGHVFULEHFRPPLWPHQWWRRIIHUDQGPDLQWDLQGHHSO\ GLVFRXQWHGVWDQGDUGFRQILJXUDWLRQV3DUWLFLSDQWVLQWKH363SURJUDPZLOOFRPPLWWRPDLQWDLQDQGXSJUDGH NHHSSDFHZLWK WKHDGYDQFHRIWHFKQRORJ\ WKHVWDQGDUGFRQILJXUDWLRQVIRUDVWDWHGSHULRGRIWLPHRULQWHUYDOVDVGHWHUPLQHGE\WKH 3DUWLFLSDWLQJ(QWLWLHV7KHVWDQGDUGVFXUUHQWO\DUHUHIUHVKHGHYHU\VL[PRQWKV 0D\DQG1RYHPEHU 5HIUHVKVFKHGXOHLV

VXEMHFWWRFKDQJH6HHFXUUHQWFRQILJXUDWLRQVKWWSZZZZQSVSFRPLQGH[KWPO6WDWHVDQGRWKHU3DUWLFLSDWLQJ(QWLWLHV FDQFKRRVHWRSXUFKDVHWKHVHSDFNDJHVZLWKRXWDQ\VLJQLQJDGGLWLRQDOGRFXPHQWV  YES NO  &RQWUDFW9HQGRUVPD\SURYLGH3UHPLXP6DYLQJV 3DFNDJHVLQWKHEDQGVDZDUGHGDQGFRPSO\ZLWKWKHIROORZLQJ  n/a for server D 3URYLGHD:6&$1$6323UHPLXP6DYLQJV3DFNDJHVVSHFLILF6.8IRUHDFKSURSRVHGSURGXFW'LVFRXQWPXVWEH storage vendors SURYLGHGRQ&RQWUDFW9HQGRUUHODWHG6.8DVZHOO E 6WDQGDUGFRQILJXUDWLRQVFDQQRWFKDQJHRUEHXSJUDGHGGXULQJWKHHQWLUHUHIUHVKSHULRGIRUDQ\UHDVRQRWKHUWKDQ HQGRIOLIHLVVXHV HJVZDSSLQJRISURFHVVRUPRWKHUERDUGHWFLVSURKLELWHG  F 3ULFHVRIIHUHGPXVWEHRIIHUHGDWDEHWWHUWKDQWKHTXDQWLW\RQH0DVWHU$JUHHPHQWGLVFRXQW G 3ULFLQJLQFUHDVHVDUHJHQHUDOO\QRWDOORZHGXQOHVVWKHUHLVGRFXPHQWDWLRQDQGMXVWLILFDWLRQSURYLGHG H 3URYLGHPDUNHWLQJSODQRIWKH3633URJUDPLQFOXGLQJOHDGZLWK3633URJUDPDQGGLVSOD\SURPLQHQWO\RQ ZHEVLWHVWRPDUNHWDJJUHVVLYHO\WRDOO6WDWHV   6(&7,21&267352326$/_B   0 0((76  81'(567$1'  &267352326$/ 0$1'$725< :,// &203/<" I 6XEPLWTXDUWHUO\XVDJHUHSRUWVEURNHQRXWE\6WDWHWRWKH:6&$1$6323UHPLXP6DYLQJV3DFNDJHVWHDPOHDG DQGWRWKH:6&$1$6323&0DVWHU$JUHHPHQW$GPLQLVWUDWRU,QGLYLGXDOUHSRUWVWRHDFK6WDWHPD\DOVREH UHTXLUHG7KHIRUPDWIRUWKHUHSRUWVPXVWIROORZWKHFXUUHQW:6&$1$6323&UHSRUWLQJIRUPDW 352027,21$/2))(56&RQWUDFW9HQGRUVZLOOEHDOORZHGWRSURYLGHSURPRWLRQVIRUGHHSO\GLVFRXQWHGSURGXFWVEDVHG

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

 VHUYLFHDJUHHPHQWWHUPVDQGUHODWHGWUDYHO5HVSRQGHUPXVWGHVFULEHDOODYDLODEOHRSWLRQVIRUSULFLQJVHUYLFHVLQWKH YES NO 3ULFH:RUNERRNVVXFKDVGLVFRXQWRIIOLVWKRXUO\IHHVSHUXQLWIHHVHWF /($6,1*5HVSRQGHUVDUHQRWUHTXLUHGWRSURYLGHOHDVLQJ,QGLYLGXDO3DUWLFLSDWLQJ6WDWHVDQG3DUWLFLSDWLQJ(QWLWLHVPD\

HQWHULQWROHDVHDJUHHPHQWVIRUWKHSURGXFWVFRYHUHGLQWKH0DVWHU$JUHHPHQWVUHVXOWLQJIURPWKH5)3LIWKH\KDYHWKH OHJDODXWKRULW\WRHQWHULQWRWKHVHW\SHVRIDJUHHPHQWV7KH3DUWLFLSDWLQJ$GGHQGXPE\HDFK6WDWHZLOOLGHQWLI\LIDQGKRZ  YES NO OHDVLQJDJUHHPHQWWHUPVZLOOEHFRQGXFWHG/HDVLQJZLOOEHDWWKHRSWLRQRIHDFKSDUWLFLSDWLQJDGGHQGXP,IOHDVLQJZLOOEH RIIHUHGSURYLGHUDWHV'RQRWVXEPLWOHDVHGRFXPHQWVRUFRUUHVSRQGLQJOHDVHWHUPVDVWKHVHGRFXPHQWVVKRXOGEH DGGUHVVHGLQD6WDWH¶V3DUWLFLSDWLQJDGGHQGXPLIDSSOLFDEOH   

  6(&7,21&267352326$/_B  

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¶VUHVSRQVHLQFOXGLQJDQDXGLWRIWKHUHDVRQDEOHQHVVRI DQ\UHVSRQVH'XULQJWKHHYDOXDWLRQSURFHVVDOOLQIRUPDWLRQFRQFHUQLQJWKHUHVSRQVHVVXEPLWWHGZLOOUHPDLQSULYDWH DQGZLOOQRWEHGLVFORVHGWRDQ\RQHZKRVHRIILFLDOGXWLHVGRQRWUHTXLUHVXFKNQRZOHGJH$WDQ\WLPHGXULQJWKH HYDOXDWLRQWKH/HDG6WDWHPD\UHTXHVWWKDWDUHVSRQGHUSURYLGHH[SOLFLWZULWWHQFODULILFDWLRQWRDQ\SDUWRILWV UHVSRQVH  5HVSRQVHVDUHSULYDWHRUQRQSXEOLFGDWDXQWLOWKHFRPSOHWLRQRIWKHHYDOXDWLRQSURFHVVDVGHILQHGE\0LQQ6WDW† 7KHFRPSOHWLRQRIWKHHYDOXDWLRQSURFHVVLVGHILQHGDVWKH/HDG6WDWHKDYLQJFRPSOHWHGQHJRWLDWLQJWKH 0DVWHU$JUHHPHQWZLWKWKHVHOHFWHGYHQGRU,IQRDZDUGLVPDGHWKHUHVSRQVHVDUHQRWPDGHSXEOLF7KH6WDWHZLOO QRWLI\DOOUHVSRQGHUVLQZULWLQJRIWKHHYDOXDWLRQUHVXOWV  ,IRQO\RQHUHVSRQVHLVVXEPLWWHGWRWKHVROLFLWDWLRQWKH/HDG6WDWHUHVHUYHVWKHULJKWWRUHYLHZWKHUHVSRQVH VXEPLWWHGIRUFRPSOLDQFHDQGWRDZDUGZLWKRXWDVVLJQLQJSRLQWVRUWRUHMHFWWKHRIIHUDQGUHLVVXHWKHVROLFLWDWLRQ ZKDWHYHULVLQWKH/HDG6WDWH¶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¶VSURSRVHGODQJXDJH

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

 6(&7,21(9$/8$7,21352&(66_B   

6(&7,21$77$&+0(176  $3DUWLFLSDWLQJ6WDWHV7HUPV &RQGLWLRQV  %0RGHO3DUWLFLSDWLQJ$GGHQGXP  &0RGHO0DVWHU$JUHHPHQW  '$FWLRQ5HTXHVW)RUP6DPSOH  (3URGXFWDQG6HUYLFH6FKHGXOH6DPSOH  )%XON9ROXPH3ULFLQJ([DPSOHV  *'HWDLO6DOHV5HSRUW7HPSODWH  +3ULFH:RUNERRNV  ,6ROLFLWDWLRQ6XPPDU\

 6(&7,21$77$&+0(176_B   

$ 3$57,&,3$7,1*67$7(6 6$03/(7(506 &21',7,216  7HUPVDQG&RQGLWLRQVZLOOEHQHJRWLDWHGZLWKLQGLYLGXDO6WDWHDIWHUDZDUGRIWKH0DVWHU$JUHHPHQW$OO6WDWHVUHVHUYH WKHULJKWWRDGGDGGLWLRQDOWHUPVDQGFRQGLWLRQVWRSDUWLFLSDWLQJDGGHQGXPV  7KHIROORZLQJ6WDWHVKDYHSURYLGHGVDPSOHV   0LQQHVRWD  &DOLIRUQLD  &RQQHFWLFXW  0DVVDFKXVHWWV  1HZ-HUVH\  2UHJRQ  8WDK 

 6(&7,21$77$&+0(176_B  

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¶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¶VSURMHFWPDQDJHU   %8<,1*³2))´&2175$&77KLV3DUWLFLSDWLQJ$GGHQGXPGRHVQRWSURKLELW6WDWHDJHQFLHVIURPXVLQJWKHLU GHOHJDWHGORFDOSXUFKDVLQJDXWKRULW\WRSURFXUHVLPLODUJRRGVDQGVHUYLFHVIURPRWKHUYHQGRUV   '()$8/7$OOFRPPRGLWLHVDQGVHUYLFHVIXUQLVKHGZLOOEHVXEMHFWWRLQVSHFWLRQDQGDFFHSWDQFHE\WKH2UGHULQJ (QWLW\DIWHUGHOLYHU\1RVXEVWLWXWLRQVRUFDQFHOODWLRQVDUHSHUPLWWHGZLWKRXWZULWWHQDSSURYDORIWKH2UGHULQJ (QWLW\%DFNRUGHUVIDLOXUHWRPHHWGHOLYHU\UHTXLUHPHQWVRUIDLOXUHVWRPHHWVSHFLILFDWLRQVLQWKHSXUFKDVH

 6(&7,21$77$&+0(176_B   RUGHUDQGRUWKH&RQWUDFWDXWKRUL]HVWKH2UGHULQJ(QWLW\WRFDQFHOWKHSXUFKDVHRUGHURUDQ\SRUWLRQRILW SXUFKDVHHOVHZKHUHDQGFKDUJHWKHIXOOLQFUHDVHLQFRVWDQGDGPLQLVWUDWLYHKDQGOLQJWRWKHGHIDXOWLQJ&RQWUDFW 9HQGRU,QWKHHYHQWRIGHIDXOWWKH6WDWHUHVHUYHVWKHULJKWWRSXUVXHDQ\RWKHUUHPHG\DYDLODEOHE\ODZ$ &RQWUDFW9HQGRUPD\EHLQFOXGLQJEXWQRWOLPLWHGWRUHPRYHGIURPWKHYHQGRU¶VOLVWVXVSHQGHGRUGHEDUUHGIURP UHFHLYLQJD0DVWHU$JUHHPHQWIRUIDLOXUHWRFRPSO\ZLWKWKHWHUPVDQGFRQGLWLRQVRIWKH0DVWHU$JUHHPHQWRUIRU IDLOXUHWRSD\WKH6WDWHIRUWKHFRVWLQFXUUHGRQWKHGHIDXOWHG0DVWHU$JUHHPHQW   '(),1,7,216&390HPEHUV7KH&RRSHUDWLYH3XUFKDVLQJ9HQWXUH &39 SURJUDPZDVHVWDEOLVKHGE\0LQQ 6WDW†&VXEGZKLFKDXWKRUL]HVWKHFRPPLVVLRQHURIWKH0LQQHVRWD'HSDUWPHQWRI$GPLQLVWUDWLRQ &RPPLVVLRQHURI$GPLQLVWUDWLRQ WKURXJKLWV0DWHULDOV0DQDJHPHQW'LYLVLRQ 00' WRHQWHULQWRDFRRSHUDWLYH SXUFKDVLQJDJUHHPHQWIRUWKHSURYLVLRQRIJRRGVVHUYLFHVDQGXWLOLWLHV´ZLWKRQHRUPRUHJRYHUQPHQWDOXQLWV DQGRWKHUHQWLWLHVDVGHVFULEHGLQ0LQQ6WDW†VXEGDQG0LQQ6WDW†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††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†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¶VDXWKRUL]HGUHSUHVHQWDWLYHXSRQZULWWHQUHTXHVW  127,&(72,1685(57KH&RQWUDFW9HQGRU¶VLQVXUDQFHFRPSDQ\ LHV ZDLYHVLWVULJKWWRDVVHUWWKHLPPXQLW\RI WKH6WDWHDVDGHIHQVHWRDQ\FODLPVPDGHXQGHUVDLGLQVXUDQFH  5(48,5(0(176)257+(&2175$&79(1'257KH&RQWUDFW9HQGRU¶VSROLF\ LHV VKDOOEHSULPDU\ LQVXUDQFHWRDQ\RWKHUYDOLGDQGFROOHFWLEOHLQVXUDQFHDYDLODEOHWRWKH6WDWHRI0LQQHVRWDZLWKUHVSHFWWRDQ\FODLP DULVLQJRXWRI&RQWUDFW9HQGRU¶VSHUIRUPDQFHXQGHUWKLV&RQWUDFW  ,I&RQWUDFW9HQGRUUHFHLYHVDFDQFHOODWLRQQRWLFHIURPDQLQVXUDQFHFDUULHUDIIRUGLQJFRYHUDJHKHUHLQ&RQWUDFW 9HQGRUDJUHHVWRQRWLI\WKH6WDWHRI0LQQHVRWDZLWKLQILYH  EXVLQHVVGD\VZLWKDFRS\RIWKHFDQFHOODWLRQQRWLFH XQOHVV&RQWUDFW9HQGRU¶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¶V8PEUHOODRU([FHVV/LDELOLW\LQVXUDQFHSROLF\PD\EHXVHGWRVXSSOHPHQWWKH&RQWUDFW 9HQGRU¶VSROLF\OLPLWVWRVDWLVI\WKHIXOOSROLF\OLPLWVUHTXLUHGE\WKH&RQWUDFW  32/,&<5(48,5(0(176  :RUNHUV¶&RPSHQVDWLRQ,QVXUDQFH6WDWXWRU\&RPSHQVDWLRQ&RYHUDJH([FHSWDVSURYLGHGEHORZ &RQWUDFW9HQGRUPXVWSURYLGH:RUNHUV¶&RPSHQVDWLRQLQVXUDQFHIRUDOOLWVHPSOR\HHVDQGLQFDVHDQ\ZRUNLV VXEFRQWUDFWHG&RQWUDFW9HQGRUZLOOUHTXLUHWKHVXEFRQWUDFWRUWRSURYLGH:RUNHUV¶&RPSHQVDWLRQLQVXUDQFHLQ DFFRUGDQFHZLWKWKHVWDWXWRU\UHTXLUHPHQWVRIWKH6WDWHRI0LQQHVRWDLQFOXGLQJ&RYHUDJH%(PSOR\HU¶V/LDELOLW\ 0LQLPXPOLPLWVRIOLDELOLW\   &RYHUDJH%±(PSOR\HU¶V/LDELOLW\  %RGLO\,QMXU\E\'LVHDVHSHU(PSOR\HH  %RGLO\,QMXU\E\'LVHDVH$JJUHJDWH

 6(&7,21$77$&+0(176_B    %RGLO\,QMXU\E\$FFLGHQW  ,I0LQQ6WDW†H[HPSWVWKH&RQWUDFW9HQGRUIURP:RUNHUV¶&RPSHQVDWLRQLQVXUDQFHRULIWKH&RQWUDFW 9HQGRUKDVQRHPSOR\HHVLQWKH6WDWHRI0LQQHVRWDWKH&RQWUDFW9HQGRUPXVWSURYLGHDZULWWHQVWDWHPHQW VLJQHGE\WKHDXWKRUL]HGVLJQHURIWKH&RQWUDFWVWDWLQJWKHTXDOLI\LQJH[HPSWLRQWKDWH[FOXGHVWKH&RQWUDFW 9HQGRUIURP01:RUNHUV¶&RPSHQVDWLRQUHTXLUHPHQWV  ,IGXULQJWKHFRXUVHRIWKH&RQWUDFWWKH&RQWUDFW9HQGRUEHFRPHVHOLJLEOHIRU:RUNHUV¶&RPSHQVDWLRQWKH &RQWUDFW9HQGRUPXVWFRPSO\ZLWKWKH:RUNHUV¶&RPSHQVDWLRQ,QVXUDQFHUHTXLUHPHQWVLQFOXGHGKHUHLQDQG SURYLGHWKH6WDWHRI0LQQHVRWDZLWKDFHUWLILFDWHRILQVXUDQFH  (YLGHQFHRI6XEFRQWUDFWRULQVXUDQFHVKDOOEHILOHGZLWKWKH&RQWUDFW9HQGRU   $XWRPRELOH/LDELOLW\,QVXUDQFH7KH&RQWUDFW9HQGRUVKDOOPDLQWDLQLQVXUDQFHWRFRYHUOLDELOLW\DULVLQJRXWRI WKHRZQHUVKLSRSHUDWLRQXVHRUPDLQWHQDQFHRIDOORZQHGKLUHGDQGQRQRZQHGDXWRVDQGLQFDVHDQ\ZRUNLV VXEFRQWUDFWHGWKH&RQWUDFW9HQGRUZLOOUHTXLUHWKHVXEFRQWUDFWRUWRPDLQWDLQ$XWRPRELOH/LDELOLW\LQVXUDQFH  $ 0LQLPXP/LPLWVRI/LDELOLW\ 3HU2FFXUUHQFH±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¶VSURIHVVLRQDOVHUYLFHVUHTXLUHGXQGHUWKHFRQWUDFW&RQWUDFWRULVUHTXLUHGWRFDUU\ WKHIROORZLQJPLQLPXPOLPLWV  x ±SHUFODLPRUHYHQW x ±DQQXDODJJUHJDWH

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†$UHTXLUHVSD\PHQWZLWKLQGD\VIROORZLQJUHFHLSWRIDQXQGLVSXWHGLQYRLFH PHUFKDQGLVHRUVHUYLFHZKLFKHYHULVODWHU7HUPVUHTXHVWLQJSD\PHQWLQOHVVWKDQGD\VZLOOEHFKDQJHGWR UHDG³1HWGD\V´7KH2UGHULQJ(QWLW\LVQRWUHTXLUHGWRSD\WKH&RQWUDFW9HQGRUIRUDQ\JRRGVDQGRUVHUYLFHV SURYLGHGZLWKRXWDZULWWHQSXUFKDVHRUGHURURWKHUDSSURYHGRUGHULQJGRFXPHQWIURPWKHDSSURSULDWH2UGHULQJ (QWLW\,QDGGLWLRQDOOJRRGVDQGRUVHUYLFHVSURYLGHGPXVWPHHWDOOWHUPVFRQGLWLRQVDQGVSHFLILFDWLRQVRIWKH &RQWUDFWDQGWKHRUGHULQJGRFXPHQWDQGEHDFFHSWHGDVVDWLVIDFWRU\E\WKH2UGHULQJ(QWLW\EHIRUHSD\PHQWZLOO EHLVVXHG  &RQGLWLRQVRI3D\PHQW7KH&RQWUDFW9HQGRUXQGHUWKH&RQWUDFWPXVWEHLQDFFRUGDQFHZLWKWKH&RQWUDFWDV GHWHUPLQHGE\WKHVROHGLVFUHWLRQRIWKH6WDWH¶V$XWKRUL]HG5HSUHVHQWDWLYHDQGEHLQDFFRUGDQFHZLWKDOO DSSOLFDEOHIHGHUDOVWDWHDQGORFDOODZVRUGLQDQFHVUXOHVDQGUHJXODWLRQVLQFOXGLQJEXVLQHVVUHJLVWUDWLRQ UHTXLUHPHQWVRIWKH2IILFHRIWKH0LQQHVRWD6HFUHWDU\RI6WDWH   352'8&76&217$,1,1*&(57$,17<3(62)32/<%520,1$7('',3+(1

 6(&7,21$77$&+0(176_B   RIWKHDJHQF\HQWHULQJLQWRWKH&RQWUDFWDQGWKHKHDGRIWKHDJHQF\KDVFHUWLILHGWKDWWKH&RQWUDFW9HQGRUKDV VDWLVIDFWRULO\IXOILOOHGWKHWHUPVRIWKH&RQWUDFW   68%&2175$&7253$<0(17 :KHQ$SSOLFDEOH ,QDFFRUGDQFHZLWK0LQQ6WDW†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¶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³VXSSO\FKDLQVHFXULW\´   &RQWUDFW9HQGRUPXVWPDLQWDLQFHUWLILFDWLRQLQDQRIILFLDOVXSSO\FKDLQVHFXULW\SURJUDP ,62&XVWRPV 7UDGH3DUWQHUVKLS$JDLQVW7HUURULVP &73$7 $XWKRUL]HG(FRQRPLF2SHUDWRU $(2 RURWKHUSURJUDPDFFHSWHG LQZULWLQJE\WKH6WDWHRI0LQQHVRWD2IILFHRI(QWHUSULVH7HFKQRORJ\ 2(7GED01,76HUYLFHVRU01,7DQGWKH 6WDWHRI0LQQHVRWD'HSDUWPHQWRI$GPLQLVWUDWLRQ¶V0DWHULDOV0DQDJHPHQW'LYLVLRQ 00' DQGFRPSO\ZLWKWKH SURJUDP¶VVHFXULW\VWDQGDUGVIRUDOORUGHUVVRXUFHGIURPWKH&RQWUDFW$JUHHPHQW7RGHPRQVWUDWHFHUWLILFDWLRQ &RQWUDFW9HQGRUPXVWSURYLGHWR00'DQG2(7ZLWKLQRQHPRQWKIROORZLQJWKHHIIHFWLYHGDWHRIWKLV &RQWUDFW$JUHHPHQWRUDPHQGPHQWDGGLQJWKLV6HFWLRQZKLFKHYHULVODWHUDOHWWHUYHULI\LQJLWVFHUWLILFDWLRQVWDWXV LQDQRIILFLDOVXSSO\FKDLQVHFXULW\SURJUDPDQGLIDYDLODEOHVXSSRUWLQJGRFXPHQWDWLRQRILWVFHUWLILFDWLRQ &RQWUDFW9HQGRUPXVWLPPHGLDWHO\QRWLI\00'DQG2(7RIDQ\FKDQJHWRLWVFHUWLILFDWLRQVWDWXV  $OWHUQDWLYHO\LI&RQWUDFW9HQGRULVQRWFHUWLILHGRUORVHVFHUWLILFDWLRQ&RQWUDFW9HQGRUPXVWFRPSOHWHDQ2(7 VHFXULW\IRUPWRFRQILUPWKDWLWFRPSOLHVZLWKVXSSO\FKDLQVHFXULW\7KHIRUPZLOOUHTXLUHVXSSRUWLQJ GRFXPHQWDWLRQRIDQ\UHVSRQVHVDQGPXVWEHFRPSOHWHGWR2(7¶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³1RWLILFDWLRQRI6XSSO\&KDLQ6HFXULW\%UHDFK´ 5HMHFWLRQRIGHOLYHU\RUUHWXUQRIJRRGVVKDOOEHVROHO\DWWKHH[SHQVHDQGUHVSRQVLELOLW\RIWKH&RQWUDFW9HQGRU  7KH6WDWHRI0LQQHVRWDPD\LQVWUXFW&RQWUDFW9HQGRUDW&RQWUDFW9HQGRU¶VH[SHQVHWRVDQLWL]HRUGHVWUR\ UHWXUQHGJRRGVDQGXSRQFRPSOHWLQJVDQLWL]DWLRQRUGHVWUXFWLRQ&RQWUDFW9HQGRUPXVWSURYLGHD&HUWLILFDWH RI'DWD'HVWUXFWLRQWKDWPHHWVWKHUHTXLUHPHQWVRIWKHWKHQFXUUHQWYHUVLRQRI1,676SHFLDO3XEOLFDWLRQ

 6(&7,21$77$&+0(176_B   7KH&HUWLILFDWHRI'DWD'HVWUXFWLRQPXVWEHSURYLGHGWR2(7ZLWKLQRQHPRQWKIROORZLQJWKHFRPSOHWLRQRI VDQLWL]DWLRQRUGHVWUXFWLRQ  $WQRDGGLWLRQDOH[SHQVHWRWKH6WDWHRI0LQQHVRWD&RQWUDFW9HQGRUPXVWSURYLGHZLWKLQDUHDVRQDEOHWLPH IUDPHUHSODFHPHQWJRRGVIRUDQ\JRRGVWKDWZHUHUHMHFWHGDWGHOLYHU\RUUHWXUQHGGXHWRDVXSSO\FKDLQ VHFXULW\EUHDFK   7$;(66WDWH$JHQFLHVDUHVXEMHFWWRSD\LQJ0LQQHVRWDVDOHVDQGXVHWD[HV7D[HVZLOOEHSDLGGLUHFWO\WRWKH 'HSDUWPHQWRI5HYHQXHXVLQJ'LUHFW3D\3HUPLWXQOHVVRWKHUZLVHLQVWUXFWHGLQWKH&RQWUDFW,IRUGHUV DUHLVVXHGE\&390HPEHUVWKH&RQWUDFW9HQGRUVKRXOGFRQILUPDOORIWKHWD[UHTXLUHPHQWVZLWKWKH2UGHULQJ (QWLW\   7(50,1$7,212)7+(3$57,&,3$7,1*$''(1'807KH3DUWLFLSDWLQJ$GGHQGXPPD\EHFDQFHOHGE\WKH 6WDWHRUWKH&RPPLVVLRQHURI$GPLQLVWUDWLRQDWDQ\WLPHZLWKRUZLWKRXWFDXVHXSRQGD\VZULWWHQQRWLFHWR WKH&RQWUDFW9HQGRU,QWKHHYHQWWKH&RQWUDFW9HQGRULVLQGHIDXOWWKH3DUWLFLSDWLQJ$GGHQGXPLVVXEMHFWWR LPPHGLDWHFDQFHOODWLRQWRWKHH[WHQWDOORZDEOHE\DSSOLFDEOHODZ,QWKHHYHQWRIVXFKDFDQFHOODWLRQWKH &RQWUDFW9HQGRUVKDOOEHHQWLWOHGWRSD\PHQWGHWHUPLQHGRQDSURUDWDEDVLVIRUZRUNRUVHUYLFHVVDWLVIDFWRULO\ SHUIRUPHGDQGDFFHSWHG7KH&RQWUDFW9HQGRUPD\UHTXHVWWRFDQFHOWKH3DUWLFLSDWLQJ$GGHQGXPEXWPXVW UHFHLYHZULWWHQDSSURYDOIURPWKH6WDWH   $&&(37$1&(7(67,1*7KH3DUWLHVPD\DJUHHXSRQDQ$FFHSWDQFH7HVWWKDWGHPRQVWUDWHVWRWKHVDWLVIDFWLRQ RIWKH6WDWHWKDWWKHSURGXFWPHHWVWKHUHSUHVHQWDWLRQVVHWIRUWKLQWKH5HVSRQGHU¶V&RQWUDFW7KH6WDWHVKDOO KDYHWKHULJKWWRDGGWRPRGLI\RUUHSODFHWKH&RQWUDFW9HQGRU¶VSURSRVHG$FFHSWDQFH7HVWZLWKHTXLYDOHQW WHVWVZKLFKLQWKH6WDWH¶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

 6(&7,21$77$&+0(176_B  

CALIFORNIA $'',7,21$/7(506 

A. California Participating Addendum Eligibility Requirements (for use by State Departments)

The State of California will only consider entering into a Participating Addendum with a successful Responder for a specific band when the following conditions are met:

1. At least three Responders were awarded Master Agreements for the band; and 2. Responder’s point total in Phase II of the RFP Evaluation was within 25% of the highest point total for the Band.

Note: California will only be able to execute Participating Addenda for bands where at least three (3) successful Responders, meeting the criteria outlined above, sign Participating Addenda.  B. California Participating Addendum Eligibility Requirements (for use by Political Subdivisions)

The State of California reserves the right to decide on Participating Addendum eligibility requirements after award of Master Agreement(s).  C. Terms and Conditions  Terms and conditions listed below will be incorporated and made a part of California Participating Addenda:

1. State Information Technology (IT) General Provisions – GSPD401IT, effective 06/08/10. The ten page document can be viewed at: http://www.documents.dgs.ca.gov/pd/modellang/GPIT060810.pdf. 2. State Information Technology (IT) Purchase Special Provisions, effective 02/08/07. The two page document can be viewed at: http://www.documents.dgs.ca.gov/pd/modellang/Purchsespecial020807.pdf. 3. State Information Technology (IT) Maintenance Special Provisions, effective 1/21/03. The five page document can be viewed at: http://www.documents.dgs.ca.gov/pd/modellang/maintenancespecial12103.pdf. 4. State Information Technology (IT) Software License Special Provisions, effective 1/21/03. The three page document can be viewed at: http://www.documents.dgs.ca.gov/pd/modellang/softwarespecial012103.pdf. 5. American Recovery and Reinvestment Act (ARRA) Supplemental Terms and Conditions, revised 08/10/09. The two page document can be viewed at: http://www.documents.dgs.ca.gov/pd/poliproc/ARRATand%20C081009final.pdf.

The State of California reserves the right to add additional terms and conditions to the Participating Addendum.

 6(&7,21$77$&+0(176_B  

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† J  DVKDYLQJDYDOXHLQDFDOHQGDU\HDURIRUPRUHRUD FRPELQDWLRQRUVHULHVRIVXFKDJUHHPHQWVRUFRQWUDFWVKDYLQJDYDOXHRIRUPRUHWKHDXWKRUL]HGVLJQDWRU\WRWKLV&RQWUDFW H[SUHVVO\DFNQRZOHGJHVUHFHLSWRIWKH6WDWH(OHFWLRQV(QIRUFHPHQW&RPPLVVLRQ¶VQRWLFHDGYLVLQJVWDWHFRQWUDFWRUVRIVWDWHFDPSDLJQ FRQWULEXWLRQDQGVROLFLWDWLRQSURKLELWLRQVDQGZLOOLQIRUPLWVSULQFLSDOVRIWKHFRQWHQWVRIWKHQRWLFHDVVHWIRUWKLQ1RWLFHWR ([HFXWLYH%UDQFK6WDWH&RQWUDFWRUVDQG3URVSHFWLYH6WDWH&RQWUDFWRUVRI&DPSDLJQ&RQWULEXWLRQDQG6ROLFLWDWLRQ/LPLWDWLRQV´ DWWDFKHGWRWKLV3DUWLFLSDWLQJ$GGHQGXP

 6(&7,21$77$&+0(176_B   

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¶VUHTXHVWWKH'HSDUWPHQWVKDOOSURYLGHDFRS\RIWKHVHRUGHUVWRWKH&RQWUDFWRU  1RQGLVFULPLQDWLRQ D )RUSXUSRVHVRIWKLV6HFWLRQWKHIROORZLQJWHUPVDUHGHILQHGDVIROORZV  L &RPPLVVLRQPHDQVWKH&RPPLVVLRQRQ+XPDQ5LJKWVDQG2SSRUWXQLWLHV LL &RQWUDFWDQG³FRQWUDFW´LQFOXGHDQ\H[WHQVLRQRUPRGLILFDWLRQRIWKH&RQWUDFWRUFRQWUDFW LLL &RQWUDFWRUDQG³FRQWUDFWRU´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³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†QDQG [ SXEOLFZRUNVFRQWUDFWPHDQVDQ\DJUHHPHQWEHWZHHQDQ\LQGLYLGXDOILUPRUFRUSRUDWLRQDQGWKH6WDWHRUDQ\ SROLWLFDOVXEGLYLVLRQRIWKH6WDWHRWKHUWKDQDPXQLFLSDOLW\IRUFRQVWUXFWLRQUHKDELOLWDWLRQFRQYHUVLRQH[WHQVLRQ GHPROLWLRQRUUHSDLURIDSXEOLFEXLOGLQJKLJKZD\RURWKHUFKDQJHVRULPSURYHPHQWVLQUHDOSURSHUW\RUZKLFKLV ILQDQFHGLQZKROHRULQSDUWE\WKH6WDWHLQFOXGLQJEXWQRWOLPLWHGWRPDWFKLQJH[SHQGLWXUHVJUDQWVORDQVLQVXUDQFH RUJXDUDQWHHV  )RUSXUSRVHVRIWKLV6HFWLRQWKHWHUPV&RQWUDFWDQG³FRQWUDFW´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

 6(&7,21$77$&+0(176_B   UHJDUGWRWKHLUUDFHFRORUUHOLJLRXVFUHHGDJHPDULWDOVWDWXVQDWLRQDORULJLQDQFHVWU\VH[JHQGHULGHQWLW\RUH[SUHVVLRQPHQWDO UHWDUGDWLRQPHQWDOGLVDELOLW\RUSK\VLFDOGLVDELOLW\LQFOXGLQJEXWQRWOLPLWHGWREOLQGQHVVXQOHVVLWLVVKRZQE\WKH&RQWUDFWRUWKDW VXFKGLVDELOLW\SUHYHQWVSHUIRUPDQFHRIWKHZRUNLQYROYHG  WKH&RQWUDFWRUDJUHHVLQDOOVROLFLWDWLRQVRUDGYHUWLVHPHQWVIRU HPSOR\HHVSODFHGE\RURQEHKDOIRIWKH&RQWUDFWRUWRVWDWHWKDWLWLVDQDIILUPDWLYHDFWLRQHTXDORSSRUWXQLW\HPSOR\HULQDFFRUGDQFH ZLWKUHJXODWLRQVDGRSWHGE\WKH&RPPLVVLRQ  WKH&RQWUDFWRUDJUHHVWRSURYLGHHDFKODERUXQLRQRUUHSUHVHQWDWLYHRIZRUNHUVZLWK ZKLFKWKH&RQWUDFWRUKDVDFROOHFWLYHEDUJDLQLQJ$JUHHPHQWRURWKHUFRQWUDFWRUXQGHUVWDQGLQJDQGHDFKYHQGRUZLWKZKLFKWKH &RQWUDFWRUKDVDFRQWUDFWRUXQGHUVWDQGLQJDQRWLFHWREHSURYLGHGE\WKH&RPPLVVLRQDGYLVLQJWKHODERUXQLRQRUZRUNHUV¶ UHSUHVHQWDWLYHRIWKH&RQWUDFWRU VFRPPLWPHQWVXQGHUWKLVVHFWLRQDQGWRSRVWFRSLHVRIWKHQRWLFHLQFRQVSLFXRXVSODFHVDYDLODEOHWR HPSOR\HHVDQGDSSOLFDQWVIRUHPSOR\PHQW  WKH&RQWUDFWRUDJUHHVWRFRPSO\ZLWKHDFKSURYLVLRQRIWKLV6HFWLRQDQG&RQQHFWLFXW *HQHUDO6WDWXWHV††DHDQGDIDQGZLWKHDFKUHJXODWLRQRUUHOHYDQWRUGHULVVXHGE\VDLG&RPPLVVLRQSXUVXDQWWR &RQQHFWLFXW*HQHUDO6WDWXWHV††DDHDQGDIDQG  WKH&RQWUDFWRUDJUHHVWRSURYLGHWKH&RPPLVVLRQRQ+XPDQ 5LJKWVDQG2SSRUWXQLWLHVZLWKVXFKLQIRUPDWLRQUHTXHVWHGE\WKH&RPPLVVLRQDQGSHUPLWDFFHVVWRSHUWLQHQWERRNVUHFRUGVDQG DFFRXQWVFRQFHUQLQJWKHHPSOR\PHQWSUDFWLFHVDQGSURFHGXUHVRIWKH&RQWUDFWRUDVUHODWHWRWKHSURYLVLRQVRIWKLV6HFWLRQDQG &RQQHFWLFXW*HQHUDO6WDWXWHV†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†DSURYLGHGLIVXFK&RQWUDFWRUEHFRPHV LQYROYHGLQRULVWKUHDWHQHGZLWKOLWLJDWLRQZLWKDVXEFRQWUDFWRURUYHQGRUDVDUHVXOWRIVXFKGLUHFWLRQE\WKH&RPPLVVLRQWKH &RQWUDFWRUPD\UHTXHVWWKH6WDWHRI&RQQHFWLFXWWRHQWHULQWRDQ\VXFKOLWLJDWLRQRUQHJRWLDWLRQSULRUWKHUHWRWRSURWHFWWKH LQWHUHVWVRIWKH6WDWHDQGWKH6WDWHPD\VRHQWHU  I  7KH&RQWUDFWRUDJUHHVWRFRPSO\ZLWKWKHUHJXODWLRQVUHIHUUHGWRLQWKLV6HFWLRQDVWKH\H[LVWRQWKHGDWHRIWKLV&RQWUDFWDQGDV WKH\PD\EHDGRSWHGRUDPHQGHGIURPWLPHWRWLPHGXULQJWKHWHUPRIWKLV&RQWUDFWDQGDQ\DPHQGPHQWVWKHUHWR  J   7KH&RQWUDFWRUDJUHHVDQGZDUUDQWVWKDWLQWKHSHUIRUPDQFHRIWKH&RQWUDFWVXFK&RQWUDFWRUZLOOQRWGLVFULPLQDWHRUSHUPLW GLVFULPLQDWLRQDJDLQVWDQ\SHUVRQRUJURXSRISHUVRQVRQWKHJURXQGVRIVH[XDORULHQWDWLRQLQDQ\PDQQHUSURKLELWHGE\WKH ODZVRIWKH8QLWHG6WDWHVRUWKH6WDWHRI&RQQHFWLFXWDQGWKDWHPSOR\HHVDUHWUHDWHGZKHQHPSOR\HGZLWKRXWUHJDUGWRWKHLU VH[XDORULHQWDWLRQ  WKH&RQWUDFWRUDJUHHVWRSURYLGHHDFKODERUXQLRQRUUHSUHVHQWDWLYHRIZRUNHUVZLWKZKLFKVXFK &RQWUDFWRUKDVDFROOHFWLYHEDUJDLQLQJ$JUHHPHQWRURWKHUFRQWUDFWRUXQGHUVWDQGLQJDQGHDFKYHQGRUZLWKZKLFKVXFK &RQWUDFWRUKDVDFRQWUDFWRUXQGHUVWDQGLQJDQRWLFHWREHSURYLGHGE\WKH&RPPLVVLRQRQ+XPDQ5LJKWVDQG2SSRUWXQLWLHV DGYLVLQJWKHODERUXQLRQRUZRUNHUV UHSUHVHQWDWLYHRIWKH&RQWUDFWRU VFRPPLWPHQWVXQGHUWKLVVHFWLRQDQGWRSRVWFRSLHVRIWKH QRWLFHLQFRQVSLFXRXVSODFHVDYDLODEOHWRHPSOR\HHVDQGDSSOLFDQWVIRUHPSOR\PHQW  WKH&RQWUDFWRUDJUHHVWRFRPSO\ZLWK HDFKSURYLVLRQRIWKLVVHFWLRQDQGZLWKHDFKUHJXODWLRQRUUHOHYDQWRUGHULVVXHGE\VDLG&RPPLVVLRQSXUVXDQWWR&RQQHFWLFXW *HQHUDO6WDWXWHV†DDQG  WKH&RQWUDFWRUDJUHHVWRSURYLGHWKH&RPPLVVLRQRQ+XPDQ5LJKWVDQG2SSRUWXQLWLHVZLWK VXFKLQIRUPDWLRQUHTXHVWHGE\WKH&RPPLVVLRQDQGSHUPLWDFFHVVWRSHUWLQHQWERRNVUHFRUGVDQGDFFRXQWVFRQFHUQLQJWKH HPSOR\PHQWSUDFWLFHVDQGSURFHGXUHVRIWKH&RQWUDFWRUZKLFKUHODWHWRWKHSURYLVLRQVRIWKLV6HFWLRQDQG&RQQHFWLFXW*HQHUDO 6WDWXWHV†D  K   7KH&RQWUDFWRUVKDOOLQFOXGHWKHSURYLVLRQVRIWKHIRUHJRLQJSDUDJUDSKLQHYHU\VXEFRQWUDFWRUSXUFKDVHRUGHUHQWHUHGLQWRLQ RUGHUWRIXOILOODQ\REOLJDWLRQRIDFRQWUDFWZLWKWKH6WDWHDQGVXFKSURYLVLRQVVKDOOEHELQGLQJRQDVXEFRQWUDFWRUYHQGRURU PDQXIDFWXUHUXQOHVVH[HPSWHGE\UHJXODWLRQVRURUGHUVRIWKH&RPPLVVLRQ7KH&RQWUDFWRUVKDOOWDNHVXFKDFWLRQZLWKUHVSHFW WRDQ\VXFKVXEFRQWUDFWRUSXUFKDVHRUGHUDVWKH&RPPLVVLRQPD\GLUHFWDVDPHDQVRIHQIRUFLQJVXFKSURYLVLRQVLQFOXGLQJ VDQFWLRQVIRUQRQFRPSOLDQFHLQDFFRUGDQFHZLWK&RQQHFWLFXW*HQHUDO6WDWXWHV†DSURYLGHGLIVXFK&RQWUDFWRUEHFRPHV LQYROYHGLQRULVWKUHDWHQHGZLWKOLWLJDWLRQZLWKDVXEFRQWUDFWRURUYHQGRUDVDUHVXOWRIVXFKGLUHFWLRQE\WKH&RPPLVVLRQWKH &RQWUDFWRUPD\UHTXHVWWKH6WDWHRI&RQQHFWLFXWWRHQWHULQWRDQ\VXFKOLWLJDWLRQRUQHJRWLDWLRQSULRUWKHUHWRWRSURWHFWWKH LQWHUHVWVRIWKH6WDWHDQGWKH6WDWHPD\VRHQWHU 

 6(&7,21$77$&+0(176_B   7DQJLEOH3HUVRQDO3URSHUW\  D  7KH&RQWUDFWRURQLWVEHKDOIDQGRQEHKDOIRILWV$IILOLDWHVDVGHILQHGEHORZVKDOOFRPSO\ZLWKWKHSURYLVLRQVRI&RQQ*HQ6WDW †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¶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³$IILOLDWH´PHDQVDQ\SHUVRQDVGHILQHGLQVHFWLRQRIWKHJHQHUDO VWDWXWHVWKDWFRQWUROVLVFRQWUROOHGE\RULVXQGHUFRPPRQFRQWUROZLWKDQRWKHUSHUVRQ$SHUVRQFRQWUROVDQRWKHUSHUVRQLIWKH SHUVRQRZQVGLUHFWO\RULQGLUHFWO\PRUHWKDQWHQSHUFHQWRIWKHYRWLQJVHFXULWLHVRIWKHRWKHUSHUVRQ7KHZRUG³YRWLQJVHFXULW\´ PHDQVDVHFXULW\WKDWFRQIHUVXSRQWKHKROGHUWKHULJKWWRYRWHIRUWKHHOHFWLRQRIPHPEHUVRIWKHERDUGRIGLUHFWRUVRUVLPLODU JRYHUQLQJERG\RIWKHEXVLQHVVRUWKDWLVFRQYHUWLEOHLQWRRUHQWLWOHVWKHKROGHUWRUHFHLYHXSRQLWVH[HUFLVHDVHFXULW\WKDW FRQIHUVVXFKDULJKWWRYRWH³9RWLQJVHFXULW\´LQFOXGHVDJHQHUDOSDUWQHUVKLSLQWHUHVW  F  7KH&RQWUDFWRUUHSUHVHQWVDQGZDUUDQWVWKDWHDFKRILWV$IILOLDWHVKDVYHVWHGLQWKH&RQWUDFWRUSOHQDU\DXWKRULW\WRVRELQGWKH $IILOLDWHVLQDQ\DJUHHPHQWZLWKWKH6WDWHRI&RQQHFWLFXW7KH&RQWUDFWRURQLWVRZQEHKDOIDQGRQEHKDOIRILWV$IILOLDWHVVKDOO DOVRSURYLGHQRODWHUWKDQGD\VDIWHUUHFHLYLQJDUHTXHVWE\WKH6WDWH¶VFRQWUDFWLQJDXWKRULW\VXFKLQIRUPDWLRQDVWKH6WDWHPD\ UHTXLUHWRHQVXUHLQWKH6WDWH¶VVROHGHWHUPLQDWLRQFRPSOLDQFHZLWKWKHSURYLVLRQVRI&KDSWHURIWKH&RQQHFWLFXW*HQHUDO 6WDWXWHVLQFOXGLQJEXWQRWOLPLWHGWR†E  $XGLWDQG,QVSHFWLRQRI3ODQWV3ODFHVRI%XVLQHVVDQG5HFRUGV D  7KH6WDWHDQGLWVDJHQWVLQFOXGLQJEXWQRWOLPLWHGWRWKH&RQQHFWLFXW$XGLWRUVRI3XEOLF$FFRXQWV$WWRUQH\*HQHUDODQG 6WDWH¶V$WWRUQH\DQGWKHLUUHVSHFWLYHDJHQWVPD\DWUHDVRQDEOHKRXUVLQVSHFWDQGH[DPLQHDOORIWKHSDUWVRIWKH&RQWUDFWRU¶V DQG&RQWUDFWRU3DUWLHV¶SODQWVDQGSODFHVRIEXVLQHVVZKLFKLQDQ\ZD\DUHUHODWHGWRRULQYROYHGLQWKHSHUIRUPDQFHRIWKLV &RQWUDFW  E  7KH&RQWUDFWRUVKDOOPDLQWDLQDQGVKDOOUHTXLUHHDFKRIWKH&RQWUDFWRU3DUWLHVWRPDLQWDLQDFFXUDWHDQGFRPSOHWH5HFRUGV 7KH&RQWUDFWRUVKDOOPDNHDOORILWVDQGWKH&RQWUDFWRU3DUWLHV¶5HFRUGVDYDLODEOHDWDOOUHDVRQDEOHKRXUVIRUDXGLWDQG LQVSHFWLRQE\WKH6WDWHDQGLWVDJHQWV  F  7KH6WDWHVKDOOPDNHDOOUHTXHVWVIRUDQ\DXGLWRULQVSHFWLRQLQZULWLQJDQGVKDOOSURYLGHWKH&RQWUDFWRUZLWKDWOHDVWWZHQW\ IRXU  KRXUV¶QRWLFHSULRUWRWKHUHTXHVWHGDXGLWDQGLQVSHFWLRQGDWH,IWKH6WDWHVXVSHFWVIUDXGRURWKHUDEXVHRULQWKH HYHQWRIDQHPHUJHQF\WKH6WDWHLVQRWREOLJDWHGWRSURYLGHDQ\SULRUQRWLFH  G  $OODXGLWVDQGLQVSHFWLRQVVKDOOEHDWWKH6WDWH¶VH[SHQVH  H  7KH&RQWUDFWRUVKDOONHHSDQGSUHVHUYHRUFDXVHWREHNHSWDQGSUHVHUYHGDOORILWVDQG&RQWUDFWRU3DUWLHV¶5HFRUGVXQWLOWKUHH  \HDUVDIWHUWKHODWWHURI L ILQDOSD\PHQWXQGHUWKLV&RQWUDFWRU LL WKHH[SLUDWLRQRUHDUOLHUWHUPLQDWLRQRIWKLV&RQWUDFW DVWKHVDPHPD\EHPRGLILHGIRUDQ\UHDVRQ7KH6WDWHPD\UHTXHVWDQDXGLWRULQVSHFWLRQDWDQ\WLPHGXULQJWKLVSHULRG,I

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†DD6XFKFUHGLWPRQLWRULQJRUSURWHFWLRQSODQVVKDOOEHDSSURYHGE\WKH6WDWHLQDFFRUGDQFHZLWKWKLV6HFWLRQ DQGVKDOOFRYHUDOHQJWKRIWLPHFRPPHQVXUDWHZLWKWKHFLUFXPVWDQFHVRIWKH&RQILGHQWLDO,QIRUPDWLRQ%UHDFK7KH &RQWUDFWRUV¶FRVWVDQGH[SHQVHVIRUWKHFUHGLWPRQLWRULQJDQGSURWHFWLRQSODQVKDOOQRWEHUHFRYHUDEOHIURPWKH'HSDUWPHQW DQ\6WDWHRI&RQQHFWLFXWHQWLW\RUDQ\DIIHFWHGLQGLYLGXDOV  G  7KH&RQWUDFWRUVKDOOLQFRUSRUDWHWKHUHTXLUHPHQWVRIWKLV6HFWLRQLQDOOVXEFRQWUDFWVUHTXLULQJHDFK&RQWUDFWRU3DUW\WR VDIHJXDUG&RQILGHQWLDO,QIRUPDWLRQLQWKHVDPHPDQQHUDVSURYLGHGIRULQWKLV6HFWLRQ  H  1RWKLQJLQWKLV6HFWLRQVKDOOVXSHUVHGHLQDQ\PDQQHU&RQWUDFWRU¶VRU&RQWUDFWRU3DUW\¶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

 6(&7,21$77$&+0(176_B  

MASSACHUSETTS  7KLV&RPPRQZHDOWK7HUPVDQG&RQGLWLRQVIRUPLVMRLQWO\LVVXHGE\WKH([HFXWLYH2IILFHIRU$GPLQLVWUDWLRQDQG)LQDQFH $1) WKH2IILFHRIWKH&RPSWUROOHU &75  DQGWKH 2SHUDWLRQDO 6HUYLFHV 'LYLVLRQ 26'  IRU XVH E\ DOO &RPPRQZHDOWK RI 0DVVDFKXVHWWV ³6WDWH´  'HSDUWPHQWV DQG &RQWUDFWRUV Any changes or electronic alterations by either the Department or the Contractor to the official version of this form, as jointly published by ANF, CTR and OSD, shall be void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ontract Effective Start Date.1RWZLWKVWDQGLQJYHUEDORURWKHUUHSUHVHQWDWLRQVE\WKHSDUWLHVRUDQHDUOLHUVWDUWGDWHLQGLFDWHGLQD&RQWUDFWWKHHIIHFWLYHVWDUWGDWHRI SHUIRUPDQFHXQGHUD&RQWUDFWVKDOOEHWKHGDWHD&RQWUDFWKDVEHHQH[HFXWHGE\DQDXWKRUL]HGVLJQDWRU\RIWKH&RQWUDFWRUWKH'HSDUWPHQWDODWHUGDWHVSHFLILHGLQWKH &RQWUDFWRUWKHGDWHRIDQ\DSSURYDOVUHTXLUHGE\ODZRUUHJXODWLRQZKLFKHYHULVODWHU Payments And Compensation.7KH&RQWUDFWRUVKDOORQO\EHFRPSHQVDWHGIRUSHUIRUPDQFHGHOLYHUHGDQGDFFHSWHGE\WKH'HSDUWPHQWLQDFFRUGDQFHZLWKWKHVSHFLILF WHUPVDQGFRQGLWLRQVRID&RQWUDFW$OO&RQWUDFWSD\PHQWVDUHVXEMHFWWRDSSURSULDWLRQSXUVXDQWWR0*/&†RUWKHDYDLODELOLW\RIVXIILFLHQWQRQDSSURSULDWHG IXQGVIRUWKHSXUSRVHVRID&RQWUDFWDQGVKDOOEHVXEMHFWWRLQWHUFHSWSXUVXDQWWR0*/&$†DQG&052YHUSD\PHQWVVKDOOEHUHLPEXUVHGE\WKH &RQWUDFWRURUPD\EHRIIVHWE\WKH'HSDUWPHQWIURPIXWXUHSD\PHQWVLQDFFRUGDQFHZLWKVWDWHILQDQFHODZ$FFHSWDQFHE\WKH&RQWUDFWRURIDQ\SD\PHQWRUSDUWLDO SD\PHQWZLWKRXWDQ\ZULWWHQREMHFWLRQE\WKH&RQWUDFWRUVKDOOLQHDFKLQVWDQFHRSHUDWHDVDUHOHDVHDQGGLVFKDUJHRIWKH6WDWHIURPDOOFODLPVOLDELOLWLHVRURWKHU REOLJDWLRQVUHODWLQJWRWKHSHUIRUPDQFHRID&RQWUDFW  Contractor Payment Mechanism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ontract Termination Or Suspension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ritten Notice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onfidentiality7KH&RQWUDFWRUVKDOOFRPSO\ZLWK0*/&$LIWKH&RQWUDFWRUEHFRPHVDKROGHURISHUVRQDOGDWD7KH&RQWUDFWRUVKDOODOVRSURWHFWWKH SK\VLFDOVHFXULW\DQGUHVWULFWDQ\DFFHVVWRSHUVRQDORURWKHU'HSDUWPHQWGDWDLQWKH&RQWUDFWRU VSRVVHVVLRQRUXVHGE\WKH&RQWUDFWRULQWKHSHUIRUPDQFHRID&RQWUDFW ZKLFKVKDOOLQFOXGHEXWLVQRWOLPLWHGWRWKH'HSDUWPHQW VSXEOLFUHFRUGVGRFXPHQWVILOHVVRIWZDUHHTXLSPHQWRUV\VWHPV Record-keeping And Retention, Inspection Of Records.7KH&RQWUDFWRUVKDOOPDLQWDLQUHFRUGVERRNVILOHVDQGRWKHUGDWDDVVSHFLILHGLQD&RQWUDFWDQGLQVXFK GHWDLODVVKDOOSURSHUO\VXEVWDQWLDWHFODLPVIRUSD\PHQWXQGHUD&RQWUDFWIRUDPLQLPXPUHWHQWLRQSHULRGRIVHYHQ  \HDUVEHJLQQLQJRQWKHILUVWGD\DIWHUWKHILQDO SD\PHQWXQGHUD&RQWUDFWRUVXFKORQJHUSHULRGDVLVQHFHVVDU\IRUWKHUHVROXWLRQRIDQ\OLWLJDWLRQFODLPQHJRWLDWLRQDXGLWRURWKHULQTXLU\LQYROYLQJD&RQWUDFW7KH 'HSDUWPHQWVKDOOKDYHDFFHVVDVZHOODVDQ\SDUWLHVLGHQWLILHGXQGHU([HFXWLYH2UGHUGXULQJWKH&RQWUDFWRU¶VUHJXODUEXVLQHVV KRXUVDQGXSRQUHDVRQDEOHSULRU QRWLFHWRVXFKUHFRUGVLQFOXGLQJRQVLWHUHYLHZVDQGUHSURGXFWLRQRIVXFKUHFRUGVDWDUHDVRQDEOHH[SHQVH Assignment.7KH&RQWUDFWRUPD\QRWDVVLJQRUGHOHJDWHLQZKROHRULQSDUWRURWKHUZLVHWUDQVIHUDQ\OLDELOLW\UHVSRQVLELOLW\REOLJDWLRQGXW\RULQWHUHVWXQGHUD &RQWUDFWZLWKWKHH[FHSWLRQWKDWWKH&RQWUDFWRUVKDOOEHDXWKRUL]HGWRDVVLJQSUHVHQWDQGSURVSHFWLYHFODLPVIRUPRQH\GXHWRWKH&RQWUDFWRUSXUVXDQWWRD&RQWUDFWLQ DFFRUGDQFHZLWK0*/&†7KH&RQWUDFWRUPXVWSURYLGHVXIILFLHQWQRWLFHRIDVVLJQPHQWDQGVXSSRUWLQJGRFXPHQWDWLRQWRHQDEOHWKH'HSDUWPHQWWRYHULI\ DQGLPSOHPHQWWKHDVVLJQPHQW3D\PHQWVWRWKLUGSDUW\DVVLJQHHVZLOOEHSURFHVVHGDVLIVXFKSD\PHQWVZHUHEHLQJPDGHGLUHFWO\WRWKH&RQWUDFWRUDQGWKHVHSD\PHQWV ZLOOEHVXEMHFWWRLQWHUFHSWRIIVHWFRXQWHUFODLPVRUDQ\RWKHU'HSDUWPHQWULJKWVZKLFKDUHDYDLODEOHWRWKH'HSDUWPHQWRUWKH6WDWHDJDLQVWWKH&RQWUDFWRU Subcontracting By Contractor.$Q\VXEFRQWUDFWHQWHUHGLQWRE\WKH&RQWUDFWRUIRUWKHSXUSRVHVRIIXOILOOLQJWKHREOLJDWLRQVXQGHUD&RQWUDFWPXVWEHLQZULWLQJ DXWKRUL]HGLQDGYDQFHE\WKH'HSDUWPHQWDQGVKDOOEHFRQVLVWHQWZLWKDQGVXEMHFWWRWKHSURYLVLRQVRIWKHVH&RPPRQZHDOWK7HUPVDQG&RQGLWLRQVDQGD&RQWUDFW 6XEFRQWUDFWVZLOOQRWUHOLHYHRUGLVFKDUJHWKH&RQWUDFWRUIURPDQ\GXW\REOLJDWLRQUHVSRQVLELOLW\RUOLDELOLW\DULVLQJXQGHUD&RQWUDFW7KH'HSDUWPHQWLVHQWLWOHGWR FRSLHVRIDOOVXEFRQWUDFWVDQGVKDOOQRWEHERXQGE\DQ\SURYLVLRQVFRQWDLQHGLQDVXEFRQWUDFWWRZKLFKLWLVQRWDSDUW\ Affirmative Action, Non-Discrimination In Hiring And Employment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ndemnification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

 6(&7,21$77$&+0(176_B   .Waivers.)RUEHDUDQFHRULQGXOJHQFHLQDQ\IRUPRUPDQQHUE\DSDUW\VKDOOQRWEHFRQVWUXHGDVDZDLYHUQRULQDQ\ZD\OLPLWWKHOHJDORUHTXLWDEOHUHPHGLHVDYDLO DEOHWRWKDWSDUW\1RZDLYHUE\HLWKHUSDUW\RIDQ\GHIDXOWRUEUHDFKVKDOOFRQVWLWXWHDZDLYHURIDQ\VXEVHTXHQWGHIDXOWRUEUHDFK Risk Of Loss.7KH&RQWUDFWRUVKDOOEHDUWKHULVNRIORVVIRUDQ\&RQWUDFWRUPDWHULDOVXVHGIRUD&RQWUDFWDQGIRUDOOGHOLYHUDEOHV'HSDUWPHQWSHUVRQDORURWKHUGDWD ZKLFKLVLQWKHSRVVHVVLRQRIWKH&RQWUDFWRURUXVHGE\WKH&RQWUDFWRULQWKHSHUIRUPDQFHRID&RQWUDFWXQWLOSRVVHVVLRQRZQHUVKLSDQGIXOOOHJDOWLWOHWRWKHGHOLYHUDEOHV DUHWUDQVIHUUHGWRDQGDFFHSWHGE\WKH'HSDUWPHQW Forum, Choice of Law And Mediation.$Q\DFWLRQVDULVLQJRXWRID&RQWUDFWVKDOOEHJRYHUQHGE\WKHODZVRI0DVVDFKXVHWWVDQGVKDOOEHEURXJKWDQGPDLQWDLQHG LQD6WDWHRUIHGHUDOFRXUWLQ0DVVDFKXVHWWVZKLFKVKDOOKDYHH[FOXVLYHMXULVGLFWLRQWKHUHRI7KH'HSDUWPHQWZLWKWKHDSSURYDORIWKH$WWRUQH\*HQHUDO V2IILFHDQGWKH &RQWUDFWRUPD\DJUHHWRYROXQWDU\PHGLDWLRQWKURXJKWKH0DVVDFKXVHWWV2IILFHRI'LVSXWH5HVROXWLRQ 02'5 RIDQ\&RQWUDFWGLVSXWHDQGZLOOVKDUHWKHFRVWVRIVXFK PHGLDWLRQ1ROHJDORUHTXLWDEOHULJKWVRIWKHSDUWLHVVKDOOEHOLPLWHGE\WKLV6HFWLRQ Contract Boilerplate Interpretation, Severability, Conflicts With Law, Integration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¶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

INSTRUCTIONS FOR FILING THE COMMONWEALTH TERMS AND CONDITIONS $³5HTXHVWIRU9HULILFDWLRQRI7D[DWLRQ5HSRUWLQJ,QIRUPDWLRQ´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ayee and Payments Unit, Office of the Comptroller, 9th Floor, One Ashburton Place, Boston, MA 02108LQRUGHUWRUHFRUGWKHILOLQJRIWKLVIRUPRQWKH00$569HQGRU)LOH&RQWUDFWRUVDUHUHTXLUHG WRH[HFXWHDQGILOHWKLVIRUPRQO\RQFH

 6(&7,21$77$&+0(176_B   0DVVDFKXVHWWV6WDWHZLGH&RQWUDFW$GPLQLVWUDWLRQ)HH ,QWURGXFWLRQ 7KLV 6WDWHZLGH &RQWUDFW LV VXEMHFW WR D  &RQWUDFW $GPLQLVWUDWLRQ)HHZKLFKLVFUHDWHGSXUVXDQWWR0*/F†%&05 DQG WKH 7UDQVDFWLRQ)HHVHFWLRQLQWKLVVROLFLWDWLRQDQGRULQFRUSRUDWHGE\UHIHUHQFHLQWR6WDWHZLGH&RQWUDFWVZLWKWKH2SHUDWLRQDO6HUYLFHV'LYLVLRQ 26'  7KHSULFHVWDWHGLQDQ\%LGGHU¶VELGSULFHDQGDQ\&RQWUDFWRU¶V6WDWHZLGH&RQWUDFWVKDOOEHLQFOXVLYHRIWKLVIHHDQG&RQWUDFWRUVVKDOOQRWUHIOHFWWKLV IHHDVDVHSDUDWHOLQHLWHPRQFXVWRPHULQYRLFHV  7KLVIHHZLOOEHEDVHGRQRIWKHWRWDOGROODUDPRXQWVDGMXVWHGIRUFUHGLWVRUUHIXQGVSDLGE\(OLJLEOH(QWLWLHVWRWKH6WDWHZLGH&RQWUDFWRUEDVHG RQ\RXUVWDWHZLGHFRQWUDFW(OLJLEOHHQWLWLHVLQFOXGHEXWDUHQRWOLPLWHGWRD &LWLHVWRZQVGLVWULFWVFRXQWLHVDQGRWKHUSROLWLFDOVXEGLYLVLRQVE  ([HFXWLYH/HJLVODWLYHDQG-XGLFLDO%UDQFKHVLQFOXGLQJDOOGHSDUWPHQWVDQGHOHFWHGRIILFHVWKHUHLQF ,QGHSHQGHQWSXEOLFDXWKRULWLHVFRPPLVVLRQV DQGTXDVLSXEOLFDJHQFLHVG /RFDOSXEOLFOLEUDULHVSXEOLFVFKRROGLVWULFWVDQGFKDUWHUVFKRROVH 3XEOLFKRVSLWDOVRZQHGE\WKH&RPPRQZHDOWKI  3XEOLFLQVWLWXWLRQVRIKLJKHUHGXFDWLRQJ 3XEOLFSXUFKDVLQJFRRSHUDWLYHVK 1RQSURILW8)5FHUWLILHGRUJDQL]DWLRQVWKDWDUHGRLQJEXVLQHVVZLWKWKH &RPPRQZHDOWKL 2WKHUVWDWHVDQGWHUULWRULHVZLWKQRSULRUDSSURYDOE\WKH6WDWH3XUFKDVLQJ$JHQWUHTXLUHGDQGM 2WKHUHQWLWLHVZKHQGHVLJQDWHGLQ ZULWLQJE\WKH6WDWH3XUFKDVLQJ$JHQW)RUDOLVWRIRWKHUHQWLWLHVWKDWDUHHOLJLEOHWRXVH\RXUVSHFLILF6WDWHZLGH&RQWUDFWSOHDVHFKHFNWKH,VVXHUV 7DEIRUHDFK6ROLFLWDWLRQRU&RQWUDFWRQ&RPP3$66DWZZZFRPPSDVVFRP  1RWHWKDWLIWKH$GPLQLVWUDWLRQ)HHLVGHGXFWLEOHDVDEXVLQHVVH[SHQVHIRUIHGHUDOLQFRPHWD[SXUSRVHVLWLVDOVRGHGXFWLEOHDVDQH[SHQVHIRU 0DVVDFKXVHWWVWD[SXUSRVHV 4XDUWHUO\)HH3D\PHQW )RU HDFK 3D\PHQW 3HULRG &RQWUDFWRU VKDOO SD\ WR 26' D )HH HTXDO WR RQH SHUFHQW   RI WKH WRWDO SD\PHQWV DGMXVWHG IRU FUHGLWV RU UHIXQGV  UHFHLYHGIURPDOO(OLJLEOH(QWLWLHVWKDWKDYHSXUFKDVHGIURPWKH&RQWUDFWRUSXUVXDQWWRWKLV$JUHHPHQW$OOSD\PHQWVZLOOEHEDVHGRQIXOOFDOHQGDU TXDUWHUV 3D\PHQW3HULRGV DQGPXVWEHUHFHLYHGE\26'RQRUEHIRUHGD\VDIWHUWKHODVWGD\RIWKH3D\PHQW3HULRG DVVSHFLILHGEHORZ RUD FRQWUDFWRUZLOOEHFRQVLGHUHGLQEUHDFKRIFRQWUDFW  4XDUWHU 3D\PHQW3HULRG 4XDUWHUO\3D\PHQW'XH'DWH )LUVW4XDUWHU -DQXDU\VW±0DUFKVW 0D\WK 6HFRQG4XDUWHU $SULOVW±-XQHWK $XJXVWWK 7KLUG4XDUWHU -XO\VW±6HSWHPEHUWK 1RYHPEHUWK )RXUWK4XDUWHU 2FWREHU±'HFHPEHUVW )HEUXDU\WK  4XDUWHUO\SD\PHQWZLOOLQFOXGHDQ\SHULRGVOHVVWKDQDIXOOFDOHQGDUTXDUWHULIDFRQWUDFWGRHVQRWVWDUWDWWKHILUVWGD\RIDTXDUWHURUHQGRQWKHODVW GD\RIWKHTXDUWHU  3D\PHQWVDUHWREH PDGHE\FKHFN PDGHSD\DEOHWRWKH³2SHUDWLRQDO6HUYLFHV'LYLVLRQ&RPPRI0DVV´ DQG PDLOHGWR2SHUDWLRQDO6HUYLFHV 'LYLVLRQ$WWQ&RQWUDFW$GPLQ)HH2QH$VKEXUWRQ3ODFH5RRP%RVWRQ0$3OHDVHLQFOXGHWKHIROORZLQJLQIRUPDWLRQLQWKHPHPR ILHOGRIHDFKFKHFN ³&RQWUDFW$GPLQLVWUDWLRQ)HH´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¶V)LVFDO

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±3XUVXDQWWR1-6$WKH6WDWHLVSURKLELWHGIURPHQWHULQJLQWRDFRQWUDFWZLWKDQHQWLW\ XQOHVVWKHELGGHUDQGHDFKVXEFRQWUDFWRUQDPHGLQWKHSURSRVDOKDYHDYDOLG%XVLQHVV5HJLVWUDWLRQ&HUWLILFDWHRQILOHZLWKWKH'LYLVLRQ RI5HYHQXH 7KHFRQWUDFWRUDQGDQ\VXEFRQWUDFWRUSURYLGLQJJRRGVRUSHUIRUPLQJVHUYLFHVXQGHUWKHFRQWUDFWDQGHDFKRIWKHLUDIILOLDWHVVKDOO GXULQJWKHWHUPRIWKHFRQWUDFWFROOHFWDQGUHPLWWRWKH'LUHFWRURIWKH'LYLVLRQRI7D[DWLRQLQWKH'HSDUWPHQWRIWKH7UHDVXU\WKHXVHWD[ GXHSXUVXDQWWRWKH³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¶VVLJQDWXUHRQWKHSURSRVDOLVDOVRKLVJXDUDQWHHWKDWKHDQGDQ\VXEFRQWUDFWRUVKHPLJKWHPSOR\WRSHUIRUPWKHZRUNFRYHUHG E\>WKLVSURSRVDO@VKDOOFRPSO\ZLWKWKHSURYLVLRQVRIWKH3UHYDLOLQJ:DJHDQG3XEOLF:RUNV&RQWUDFWRU5HJLVWUDWLRQ$FWVZKHUH UHTXLUHG $0(5,&$16:,7+',6$%,/,7,(6$&77KHFRQWUDFWRUPXVWFRPSO\ZLWKDOOSURYLVLRQVRIWKH$PHULFDQVZLWK'LVDELOLWLHV$FW $'$ 3/LQDFFRUGDQFHZLWK86&HWVHT 0$&%5,'(35,1&,3/(6±7KHELGGHUPXVWFHUWLI\SXUVXDQWWR1-6$WKDWLWHLWKHUKDVQRRQJRLQJEXVLQHVVDFWLYLWLHV LQ1RUWKHUQ,UHODQGDQGGRHVQRWPDLQWDLQDSK\VLFDOSUHVHQFHWKHUHLQRUWKDWLWZLOOWDNHODZIXOVWHSVLQJRRGIDLWKWRFRQGXFWDQ\ EXVLQHVVRSHUDWLRQVLWKDVLQ1RUWKHUQ,UHODQGLQDFFRUGDQFHZLWKWKH0DF%ULGHSULQFLSOHVRIQRQGLVFULPLQDWLRQLQHPSOR\PHQWDVVHW IRUWKLQ1-6$$DQGLQFRQIRUPDQFHZLWKWKH8QLWHG.LQJGRP¶V)DLU(PSOR\PHQW 1RUWKHUQ,UHODQG $FWRIDQG SHUPLWLQGHSHQGHQWPRQLWRULQJRIWKHLUFRPSOLDQFHZLWKWKRVHSULQFLSOHV 3$<723/$<352+,%,7,216±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±7KHFRQWUDFWRULVDGYLVHGRILWVUHVSRQVLELOLW\WRILOHDQ DQQXDOGLVFORVXUHVWDWHPHQWRQSROLWLFDOFRQWULEXWLRQVZLWKWKH1HZ-HUVH\(OHFWLRQ/DZ(QIRUFHPHQW&RPPLVVLRQ (/(& SXUVXDQWWR 1-6$$ /F†DVDPHQGHG LILQDFDOHQGDU\HDUWKHFRQWUDFWRUUHFHLYHVRQHRUPRUHFRQWUDFWVYDOXHGDW RUPRUH,WLVWKHFRQWUDFWRU¶VUHVSRQVLELOLW\WRGHWHUPLQHLIILOLQJLVQHFHVVDU\)DLOXUHWRILOHFDQUHVXOWLQWKHLPSRVLWLRQRI SHQDOWLHVE\(/(&$GGLWLRQDOLQIRUPDWLRQDERXWWKLVUHTXLUHPHQWLVDYDLODEOHIURP(/(&E\FDOOLQJ  RURQWKHLQWHUQHW DW

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¶VRUVKDUHKROGHU¶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±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±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±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±3XUVXDQWWR1-6$LIPDQXIDFWXUHGLWHPVRUIDUPSURGXFWVZLOOEHSURYLGHGXQGHUWKLVFRQWUDFWWREH XVHGLQDSXEOLFZRUNWKH\VKDOOEHPDQXIDFWXUHGRUSURGXFHGLQWKH8QLWHG6WDWHVDQGWKHFRQWUDFWRUVKDOOEHUHTXLUHGWRVRFHUWLI\ ,1'(01,),&$7,21$1',1685$1&( ,1'(01,),&$7,217KHFRQWUDFWRU¶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¶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

 6(&7,21$77$&+0(176_B   D2FFXUUHQFH)RUP&RPSUHKHQVLYH*HQHUDO/LDELOLW\,QVXUDQFHRULWVHTXLYDOHQW7KHPLQLPXPOLPLWRIOLDELOLW\VKDOOEHSHU RFFXUUHQFHDVDFRPELQHGVLQJOHOLPLWIRUERGLO\LQMXU\DQGSURSHUW\GDPDJH7KHDERYHUHTXLUHG&RPSUHKHQVLYH*HQHUDO/LDELOLW\ ,QVXUDQFHSROLF\RULWVHTXLYDOHQWVKDOOQDPHWKH6WDWHLWVRIILFHUVDQGHPSOR\HHVDV³$GGLWLRQDO,QVXUHGV´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³$GGLWLRQDO,QVXUHG´DQGDEODQNHWDGGLWLRQDOLQVXUHGHQGRUVHPHQWRULWVHTXLYDOHQWPXVWEHSURYLGHGZKHQWKHVHUYLFHVEHLQJSURFXUHG LQYROYHYHKLFOHXVHRQWKH6WDWH¶VEHKDOIRURQ6WDWHFRQWUROOHGSURSHUW\ F:RUNHU¶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±7KHFRQWUDFWRU VVWDWXVVKDOOEHWKDWRIDQ\LQGHSHQGHQWFRQWUDFWRUDQGQRW DVDQHPSOR\HHRIWKH6WDWH &2175$&7$028177KHHVWLPDWHGDPRXQWRIWKHFRQWUDFW V ZKHQVWDWHGRQWKH5)3IRUPVKDOOQRWEHFRQVWUXHGDVHLWKHU WKHPD[LPXPRUPLQLPXPDPRXQWZKLFKWKH6WDWHVKDOOEHREOLJHGWRRUGHUDVWKHUHVXOWRIWKH5)3RUDQ\FRQWUDFWHQWHUHGLQWRDVD UHVXOWRIWKH5)3 &2175$&77(50$1'(;7(16,21237,21,ILQWKHRSLQLRQRIWKH'LUHFWRULWLVLQWKHEHVWLQWHUHVWRIWKH6WDWHWRH[WHQGD FRQWUDFWWKHFRQWUDFWRUVKDOOEHVRQRWLILHGRIWKH'LUHFWRU¶V,QWHQWDWOHDVWWKLUW\  GD\VSULRUWRWKHH[SLUDWLRQGDWHRIWKHH[LVWLQJ FRQWUDFW7KHFRQWUDFWRUVKDOOKDYHILIWHHQ  FDOHQGDUGD\VWRUHVSRQGWRWKH'LUHFWRU VUHTXHVWWRH[WHQGWKHWHUPDQGSHULRGRI SHUIRUPDQFHRIWKHFRQWUDFW,IWKHFRQWUDFWRUDJUHHVWRWKHH[WHQVLRQDOOWHUPVDQGFRQGLWLRQVLQFOXGLQJSULFLQJRIWKHRULJLQDOFRQWUDFW VKDOODSSO\XQOHVVPRUHIDYRUDEOHWHUPVIRUWKH6WDWHKDYHEHHQQHJRWLDWHG 67$7(¶6237,21725('8&(6&23(2):25.±7KH6WDWHKDVWKHRSWLRQLQLWVVROHGLVFUHWLRQWRUHGXFHWKHVFRSHRIZRUN IRUDQ\GHOLYHUDEOHWDVNRUVXEWDVNFDOOHGIRUXQGHUWKLVFRQWUDFW,QVXFKDQHYHQWWKH'LUHFWRUVKDOOSURYLGHWRWKHFRQWUDFWRUDGYDQFH ZULWWHQQRWLFHRIWKHFKDQJHLQVFRSHRIZRUNDQGZKDWWKH 'LUHFWRUEHOLHYHVVKRXOGEHWKHFRUUHVSRQGLQJDGMXVWHGFRQWUDFWSULFH:LWKLQILYH  EXVLQHVVGD\VRIUHFHLSWRIVXFKZULWWHQQRWLFHLI HLWKHULVDSSOLFDEOH D ,IWKHFRQWUDFWRUGRHVQRWDJUHHZLWKWKH'LUHFWRU¶VSURSRVHGDGMXVWHGFRQWUDFWSULFHWKHFRQWUDFWRUVKDOOVXEPLWWRWKH'LUHFWRUDQ\ DGGLWLRQDOLQIRUPDWLRQWKDWWKHFRQWUDFWRUEHOLHYHVLPSDFWVWKHDGMXVWHGFRQWUDFWSULFHZLWKDUHTXHVWWKDWWKH'LUHFWRUUHFRQVLGHUWKH SURSRVHGDGMXVWHGFRQWUDFWSULFH7KHSDUWLHVVKDOOQHJRWLDWHWKHDGMXVWHGFRQWUDFWSULFH,IWKHSDUWLHVDUHXQDEOHWRDJUHHRQDQ DGMXVWHGFRQWUDFWSULFHWKH'LUHFWRUVKDOOPDNHDSURPSWGHFLVLRQWDNLQJDOOVXFKLQIRUPDWLRQLQWRDFFRXQWDQGVKDOOQRWLI\WKH FRQWUDFWRURIWKHILQDODGMXVWHGFRQWUDFWSULFH E ,IWKHFRQWUDFWRUKDVXQGHUWDNHQDQ\ZRUNHIIRUWWRZDUGDGHOLYHUDEOHWDVNRUVXEWDVNWKDWLVEHLQJFKDQJHGRUHOLPLQDWHGVXFKWKDWLW ZRXOGQRWEHFRPSHQVDWHGXQGHUWKHDGMXVWHGFRQWUDFWWKHFRQWUDFWRUVKDOOEHFRPSHQVDWHGIRUVXFKZRUNHIIRUWDFFRUGLQJWRWKH DSSOLFDEOHSRUWLRQVRILWVSULFHVFKHGXOHDQGWKHFRQWUDFWRUVKDOOVXEPLWWRWKH'LUHFWRUDQLWHPL]DWLRQRIWKHZRUNHIIRUWDOUHDG\ FRPSOHWHGE\GHOLYHUDEOHWDVNRUVXEWDVNZLWKLQWKHVFRSHRIZRUNDQGDQ\DGGLWLRQDOLQIRUPDWLRQWKH'LUHFWRUPD\UHTXHVW7KH 'LUHFWRUVKDOOPDNHDSURPSWGHFLVLRQWDNLQJDOOVXFKLQIRUPDWLRQLQWRDFFRXQWDQGVKDOOQRWLI\WKHFRQWUDFWRURIWKHFRPSHQVDWLRQWREH SDLGIRUVXFKZRUNHIIRUW &+$1*(,1/$:±:KHQHYHUDFKDQJHLQDSSOLFDEOHODZRUUHJXODWLRQDIIHFWVWKHVFRSHRIZRUNWKH'LUHFWRUVKDOOSURYLGHZULWWHQ QRWLFHWRWKHFRQWUDFWRURIWKHFKDQJHDQGWKH'LUHFWRU¶VGHWHUPLQDWLRQDVWRWKHFRUUHVSRQGLQJDGMXVWHGFKDQJHLQWKHVFRSHRIZRUN DQGFRUUHVSRQGLQJDGMXVWHGFRQWUDFWSULFH:LWKLQILYH  EXVLQHVVGD\VRIUHFHLSWRIVXFKZULWWHQQRWLFHLIHLWKHULVDSSOLFDEOH D ,IWKHFRQWUDFWRUGRHVQRWDJUHHZLWKWKHDGMXVWHGFRQWUDFWSULFHWKHFRQWUDFWRUVKDOOVXEPLWWRWKH'LUHFWRUDQ\DGGLWLRQDOLQIRUPDWLRQ WKDWWKHFRQWUDFWRUEHOLHYHVLPSDFWVWKHDGMXVWHGFRQWUDFWSULFHZLWKDUHTXHVWWKDWWKH'LUHFWRUUHFRQVLGHUWKHDGMXVWHGFRQWUDFWSULFH 7KH'LUHFWRUVKDOOPDNHDSURPSWGHFLVLRQWDNLQJDOOVXFKLQIRUPDWLRQLQWRDFFRXQWDQGVKDOOQRWLI\WKHFRQWUDFWRURIWKHILQDODGMXVWHG FRQWUDFWSULFH E ,IWKHFRQWUDFWRUKDVXQGHUWDNHQDQ\ZRUNHIIRUWWRZDUGDGHOLYHUDEOHWDVNRUVXEWDVNWKDWLVEHLQJFKDQJHGRUHOLPLQDWHGVXFKWKDWLW ZRXOGQRWEHFRPSHQVDWHGXQGHUWKHDGMXVWHGFRQWUDFWWKHFRQWUDFWRUVKDOOEHFRPSHQVDWHGIRUVXFKZRUNHIIRUWDFFRUGLQJWRWKH DSSOLFDEOHSRUWLRQVRILWVSULFHVFKHGXOHDQGWKHFRQWUDFWRUVKDOOVXEPLWWRWKH'LUHFWRUDQLWHPL]DWLRQRIWKHZRUNHIIRUWDOUHDG\ FRPSOHWHGE\GHOLYHUDEOHWDVNRUVXEWDVNZLWKLQWKHVFRSHRIZRUNDQGDQ\DGGLWLRQDOLQIRUPDWLRQWKH'LUHFWRUPD\UHTXHVW7KH 'LUHFWRUVKDOOPDNHDSURPSWGHFLVLRQWDNLQJDOOVXFKLQIRUPDWLRQLQWRDFFRXQWDQGVKDOOQRWLI\WKHFRQWUDFWRURIWKHFRPSHQVDWLRQWREH SDLGIRUVXFKZRUNHIIRUW 6863(16,212):25.7KH6WDWHPD\IRUYDOLGUHDVRQLVVXHDVWRSRUGHUGLUHFWLQJWKHFRQWUDFWRUWRVXVSHQGZRUNXQGHUWKH FRQWUDFWIRUDVSHFLILFWLPH7KHFRQWUDFWRUVKDOOEHSDLGIRUJRRGVRUGHUHGJRRGVGHOLYHUHGRUVHUYLFHVUHTXHVWHGDQGSHUIRUPHGXQWLO WKHHIIHFWLYHGDWHRIWKHVWRSRUGHU7KHFRQWUDFWRUVKDOOUHVXPHZRUNXSRQWKHGDWHVSHFLILHGLQWKHVWRSRUGHURUXSRQVXFKRWKHUGDWH

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± D6XEFRQWUDFWLQJ7KHFRQWUDFWRUPD\QRWVXEFRQWUDFWRWKHUWKDQDVLGHQWLILHGLQWKHFRQWUDFWRU¶VSURSRVDOZLWKRXWWKHSULRUZULWWHQ FRQVHQWRIWKH'LUHFWRU6XFKFRQVHQWLIJUDQWHGLQSDUWVKDOOQRWUHOLHYHWKHFRQWUDFWRURIDQ\RIKLVUHVSRQVLELOLWLHVXQGHUWKHFRQWUDFW QRUVKDOOLWFUHDWHSULYLW\RIFRQWUDFWEHWZHHQWKH6WDWHDQGDQ\VXEFRQWUDFWRU,IWKHFRQWUDFWRUXVHVDVXEFRQWUDFWRUWRIXOILOODQ\RILWV REOLJDWLRQVWKHFRQWUDFWRUVKDOOEHUHVSRQVLEOHIRUWKHVXEFRQWUDFWRU¶V D SHUIRUPDQFH E FRPSOLDQFHZLWKDOORIWKHWHUPVDQG FRQGLWLRQVRIWKHFRQWUDFWDQG F FRPSOLDQFHZLWKWKHUHTXLUHPHQWVRIDOODSSOLFDEOHODZV E$VVLJQPHQW7KHFRQWUDFWRUPD\QRWDVVLJQLWVUHVSRQVLELOLWLHVXQGHUWKHFRQWUDFWLQZKROHRULQSDUWZLWKRXWWKHSULRUZULWWHQFRQVHQW RIWKH'LUHFWRU 12&2175$&78$/5(/$7,216+,3%(7:((168%&2175$&7256$1'67$7(1RWKLQJFRQWDLQHGLQDQ\RIWKHFRQWUDFW GRFXPHQWVLQFOXGLQJWKH5)3DQGYHQGRU¶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±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¶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¶VDFFHSWDQFHDQGD6WDWHDJHQF\¶VXVHRIWKHSFDUGDUHRSWLRQDO3FDUGWUDQVDFWLRQVGRQRW UHTXLUHWKHVXEPLVVLRQRIDFRQWUDFWRULQYRLFHSXUFKDVLQJWUDQVDFWLRQVXVLQJWKHSFDUGZLOOXVXDOO\UHVXOWLQSD\PHQWWRDFRQWUDFWRULQ WKUHH  GD\V$FRQWUDFWRUVKRXOGWDNHQRWHWKDWWKHUHZLOOEHDWUDQVDFWLRQSURFHVVLQJIHHIRUHDFKSFDUGWUDQVDFWLRQ7RSDUWLFLSDWH DFRQWUDFWRUPXVWEHFDSDEOHRIDFFHSWLQJWKH0DVWHU&DUG$GGLWLRQDOLQIRUPDWLRQFDQEHREWDLQHGIURPEDQNVRUPHUFKDQWVHUYLFH FRPSDQLHV

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±7KH6WDWH¶VREOLJDWLRQWRPDNHSD\PHQWXQGHUWKLVFRQWUDFWLVFRQWLQJHQWXSRQWKHDYDLODELOLW\RI DSSURSULDWHGIXQGVDQGUHFHLSWRIUHYHQXHVIURPZKLFKSD\PHQWIRUFRQWUDFWSXUSRVHVFDQEHPDGH1ROHJDOOLDELOLW\RQWKHSDUWRIWKH 6WDWHIRUSD\PHQWRIDQ\PRQH\VKDOODULVHXQOHVVDQGXQWLOIXQGVDUHDSSURSULDWHGHDFKILVFDO\HDUWRWKHXVLQJDJHQF\E\WKH6WDWH /HJLVODWXUHDQGPDGHDYDLODEOHWKURXJKUHFHLSWRIUHYHQXHV

 6(&7,21$77$&+0(176_B  

OREGON 3DUWLFLSDWLQJ$GGHQGXP EHWZHHQ >LQVHUW&RQWUDFWRU@ DQG 6WDWHRI2UHJRQDFWLQJE\DQGWKURXJKWKH'HSDUWPHQWRI$GPLQLVWUDWLYH6HUYLFHV XQGHU WKH:6&$1$6323URFXUHPHQWIRU&RPSXWHU(TXLSPHQW  6WDWHRI0LQQHVRWDPDVWHUFRQWUDFWQXPEHUBBBBBBBB  2UHJRQFRQWUDFWQXPEHUIRUWKLV3DUWLFLSDWLQJ$GGHQGXPBBBBB     ,QWURGXFWLRQ7KLV3DUWLFLSDWLQJ$GGHQGXP WKLV³$GGHQGXP´ EHWZHHQBBBBBBBBBBBBBBBBBBBBBBBBBBDBBBBBBB FRUSRUDWLRQZKLFKLVDXWKRUL]HGWRGREXVLQHVVLQ2UHJRQ ³&RQWUDFWRU´ DQGWKH6WDWHRI2UHJRQDFWLQJE\DQGWKURXJKWKH 'HSDUWPHQWRI$GPLQLVWUDWLYH6HUYLFHV'$63URFXUHPHQW6HUYLFHV ³2UHJRQ'36´ LVHQWHUHGLQWRHIIHFWLYHDVRIBBBBBBBBBBBB    6FRSH7KLV$GGHQGXPDOORZV2UHJRQ'36DQGWKH3XUFKDVHUV GHILQHGEHORZ WRPDNHSXUFKDVHVXQGHUWKH6WDWHRI 0LQQHVRWD¶VFRQWUDFWQXPEHUBBBBBBZLWK&RQWUDFWRUGDWHGHIIHFWLYHBBBBBBBBB0LQQHVRWD WKH³/HDG6WDWH´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¶VFKLHISURFXUHPHQWRIILFLDO ³&32´ ,VVXHVRILQWHUSUHWDWLRQDQGHOLJLELOLW\IRU SDUWLFLSDWLRQDUHVROHO\ZLWKLQWKHDXWKRULW\RIWKH&32   6XEFRQWUDFWRUV&RQWUDFWRU¶VVXEFRQWUDFWRUVZKRUHFHLYHWKHSULRUZULWWHQFRQVHQWRI2UHJRQ'36PD\SURYLGH JRRGVDQGVHUYLFHVXQGHUWKLV$GGHQGXP3DUWLFLSDWLRQE\VXEFRQWUDFWRUVPXVWEHLQDFFRUGDQFHZLWKDQGLVH[SUHVVO\ VXEMHFWWRWKHWHUPVRIWKLV$GGHQGXP   >5HVHUYHG@   'HILQLWLRQV7KHIROORZLQJWHUPVKDYHWKHPHDQLQJVVHWIRUWKEHORZ   ³&RQILGHQWLDO,QIRUPDWLRQ´LVGHILQHGLQ6HFWLRQ   ³,QGHSHQGHQW$JHQF\´PHDQVDQDJHQF\ERDUGFRPPLVVLRQGHSDUWPHQWRUVXEGLYLVLRQRIWKH6WDWHRI2UHJRQZLWK LQGHSHQGHQWSURFXUHPHQWDXWKRULW\XQGHU256$$RURWKHUSURYLVLRQVRIDSSOLFDEOH2UHJRQODZ   ³0LQQHVRWD$JUHHPHQW´PHDQV6WDWHRI0LQQHVRWD¶VFRQWUDFWQXPEHUBBBBBBBBBZLWK&RQWUDFWRUGDWHGHIIHFWLYH BBBBBBBBB)RUSXUSRVHVRIWKLV$GGHQGXPWKH0LQQHVRWD$JUHHPHQWFRQVLVWVRIRQO\WKHIROORZLQJGRFXPHQWV  D  7KH³:6&$1$6327HUPVDQG&RQGLWLRQV´RQSDJHVWRRIWKHVWDWHRI0LQQHVRWDUHTXHVWIRUSURSRVDOV ³5)3´   E  7KHOLVWRI³EDQGV´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³FRQILJXUDWLRQGROODUVOLPLWV´RQSDJHRIWKH/HDG6WDWH5)3GRQRWDSSO\WRWKLV$GGHQGXP)XUWKHUQRDPHQGPHQWVWRWKH 0LQQHVRWD$JUHHPHQWJRYHUQWKLV$GGHQGXPXQOHVVH[SUHVVO\HQWHUHGLQWRE\2UHJRQ'36$VQRWHGLQ6HFWLRQRIWKH:6&$ 1$6327HUPVDQG&RQGLWLRQV OLVWHGRQSDJHRIWKH0LQQHVRWD5)3 LQFDVHRIDQ\FRQIOLFWEHWZHHQWKHWHUPVRIWKLV 3DUWLFLSDWLQJ$GGHQGXPWKH0LQQHVRWD$JUHHPHQWWKH0LQQHVRWD5)3VROLFLWDWLRQDQG&RQWUDFWRU¶VSURSRVDOLQUHVSRQVHWRWKH 0LQQHVRWD5)3VROLFLWDWLRQWKHWHUPVRIWKLV3DUWLFLSDWLQJ$GGHQGXPZLOOFRQWURO   ³25&33´PHDQVWKH2UHJRQ&RRSHUDWLYH3URFXUHPHQW3URJUDPXQGHUZKLFKPHPEHUVLQFOXGLQJORFDO JRYHUQPHQWVDJHQFLHVDQGRUJDQL]DWLRQVLQWKHVWDWHRI2UHJRQDUHDXWKRUL]HGWRSXUFKDVHJRRGVDQGVHUYLFHVDYDLODEOHXQGHUDQ DJUHHPHQWOLNHWKLV$GGHQGXPHQWHUHGLQWRE\2UHJRQ'36DQGZKLFKDUHOLVWHGLQWKHIROORZLQJRQOLQHGRFXPHQW  KWWSZZZRUHJRQJRY'$6(*636GRFVRUFSSRUFSSPHPEHUOLVWSGI   ³3XUFKDVHU´PHDQVDQHQWLW\WKDWVXEPLWVD3XUFKDVH2UGHUWR&RQWUDFWRUXQGHUWKLV$GGHQGXP$3XUFKDVHUPD\ EHHLWKHU  2UHJRQ'36  DQDJHQF\VXEPLWWLQJD3XUFKDVH2UGHUXQGHU2UHJRQ'36SXUFKDVLQJDXWKRULW\DQGGLUHFWLRQ  DQ ,QGHSHQGHQW$JHQF\RU  DQ25&33PHPEHUZLWKLWVRZQSXUFKDVLQJDXWKRULW\   ³3XUFKDVH2UGHU´PHDQVDGRFXPHQWVXEPLWWHGE\D3XUFKDVHUWR&RQWUDFWRUXQGHUWKLV$GGHQGXPWKDWVSHFLILHVD TXDQWLW\DQGW\SHRIJRRGVDQGVHUYLFHVWKDW3XUFKDVHULVSXUFKDVLQJDQGZKLFK&RQWUDFWRUZLOOSURYLGHWR3XUFKDVHUXQGHUWKHWHUPV RIWKLV$GGHQGXP   ³6HUYLFHV´PHDQVLQVWDOODWLRQFRQILJXUDWLRQLPSOHPHQWDWLRQDQGWUDLQLQJUHJDUGLQJWKHFRPSXWHUHTXLSPHQW LQFOXGLQJVRIWZDUH SURYLGHGE\&RQWUDFWRUXQGHUWKLV$GGHQGXP7KH6HUYLFHVLQFOXGHEXWDUHQRWOLPLWHGWRWKHLWHPVLGHQWLILHGLQ ([KLELWVBBBDQGBBBWRWKH0LQQHVRWD$JUHHPHQW  

 6(&7,21$77$&+0(176_B    8VHRI3XUFKDVH2UGHUV   3XUFKDVH2UGHUIRUPV3XUFKDVHUVPD\XVHWKHLURZQ3XUFKDVH2UGHU ³32´ IRUPVDQGPD\DOVRXVH2UHJRQ '36¶V3XUFKDVH2UGHUIRUP,ID3XUFKDVHUUHFHLYHGDSULFHTXRWHWKHTXRWHQXPEHUVKRXOGDOVREHLQFOXGHGRQWKH32,IWKHWHUPV RIDQ\32IRUPGLIIHUIURPWKHWHUPVRIWKLV$GGHQGXPWKHWHUPVRIWKLV$GGHQGXPVXSHUVHGHWKHLQFRQVLVWHQWWHUPV   32ODQJXDJH(DFK3XUFKDVH2UGHUVKRXOGFRQWDLQWKHODQJXDJHEHORZRQWKHILUVWSDJH  ³7KLV3XUFKDVH2UGHULVLVVXHGXQGHUWKH0LQQHVRWD$JUHHPHQWDQGWKH3DUWLFLSDWLQJ$GGHQGXPHQWHUHGLQWRE\2UHJRQ'36 DQGBBBBBBBBBBBBBFRQWUDFWQXPEHUBBBBB7KHWHUPVRIWKH3DUWLFLSDWLQJ$GGHQGXPJRYHUQWKLVSXUFKDVHDQGVXSHUVHGH DQ\LQFRQVLVWHQWWHUPV´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¶VVXEPLVVLRQRIGHWDLOHGLQYRLFHVWKDWGHVFULEHWKHJRRGVDQGVHUYLFHVGHOLYHUHGE\&RQWUDFWRUDQGDFFHSWHGE\WKH 3XUFKDVHU&RQWUDFWRUVKDOOUHTXHVWSD\PHQWRQO\IRUJRRGVDQGVHUYLFHVDFFHSWHGE\D3XUFKDVHU&RQWUDFWRUPXVWVXEPLWLQYRLFHV HOHFWURQLFDOO\WR3XUFKDVHU¶VUHSUHVHQWDWLYHDVGHVLJQDWHGRQD3XUFKDVH2UGHU   &RQWUDFWRU¶VLQYRLFHVPXVWLQFOXGHWKHIROORZLQJLQIRUPDWLRQ  D  7KHQXPEHURIWKLV$GGHQGXP E  7KH3XUFKDVH2UGHUQXPEHU F  7KHJRRGVDQGVHUYLFHVRUGHUHG G  7KHGDWHRI&RQWUDFWRU¶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

 6(&7,21$77$&+0(176_B   DGGDQ\RWKHUIHHVRUFKDUJHVLUUHVSHFWLYHRIWKHSD\PHQWPHWKRGXVHGE\D3XUFKDVHU   )XQGVDYDLODEOHDQGQRQDSSURSULDWLRQ$3XUFKDVHU¶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³965´ QRODWHUWKDQWKLUW\  FDOHQGDUGD\VIURPWKHHQGRIHDFKFDOHQGDUTXDUWHUZKHWKHURUQRWWKHUHDUHVDOHVXQGHUWKLV$GGHQGXP:KHQQRVDOHVKDYH EHHQUHFRUGHGIRUDTXDUWHU&RQWUDFWRU¶V965ZLOOVWDWH³1RVDOHVIRUWKHTXDUWHU´7KHFDOHQGDUTXDUWHUVHQGRQ0DUFK-XQH 6HSWHPEHUDQG'HFHPEHU   &RQWHQWRI965V&RQWUDFWRU¶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¶VUHFHLSWRI965VGRHVQRWSUHFOXGH2UHJRQ'36IURPFKDOOHQJLQJWKHDFFXUDF\RI965VDWDQ\WLPH   9HQGRUFROOHFWHGDGPLQLVWUDWLYHIHH  D  9HQGRUFROOHFWHGDGPLQLVWUDWLYHIHH 9&$) GHILQLWLRQ9&$)PHDQVRQHSHUFHQW  RI&RQWUDFWRU¶VJURVV WRWDOVDOHVOHVVDQ\FUHGLWVPDGHWR3XUFKDVHUVXQGHUWKLV$GGHQGXPGXULQJHDFKFDOHQGDUTXDUWHU  E  9&$)SD\PHQWV'XULQJWKHWHUPRIWKLV$GGHQGXP&RQWUDFWRUVKDOOSD\WKH9&$)DPRXQWWR2UHJRQ'36 ZLWKLQIRUW\ILYH  FDOHQGDUGD\VDIWHUWKHHQGRIHDFKFDOHQGDUTXDUWHU  F  &RQWUDFWRUPXVWQRWUHIOHFWWKH9&$)IHHDVDVHSDUDWHOLQHLWHPFKDUJHWR3XUFKDVHUV&RQWUDFWRU¶VSULFHVPXVW UHIOHFWDOO&RQWUDFWRU¶VFKDUJHVWR3XUFKDVHUVLQFOXGLQJWKH9&$)DPRXQW2UHJRQ'36ZLOOLQYRLFH&RQWUDFWRUIRUWKH9&$)RQ LQYRLFHVEDVHGRQ&RQWUDFWRU¶V965&RQWUDFWRULVUHVSRQVLEOHIRUVXEPLWWLQJWLPHO\965UHSRUWVDQGPDNLQJWLPHO\9&$)SD\PHQW WR2UHJRQ'36  G  3D\PHQWIRUPDW&RQWUDFWRU¶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¶VULJKWWRLQWHUHVWRQODWHSD\PHQWVVKDOOQRWSUHFOXGH2UHJRQ'36IURP

 6(&7,21$77$&+0(176_B   H[HUFLVLQJDQ\DYDLODEOHULJKWVRUUHPHGLHV   $XGLWULJKWV2UHJRQ'36VKDOOKDYHWKHULJKWGXULQJUHJXODUEXVLQHVVKRXUVDQGXSRQUHDVRQDEOHQRWLFHDW &RQWUDFWRU¶VSUHPLVHVE\LWVHOIRUE\DSHUVRQDXWKRUL]HGE\LWWRDXGLW&RQWUDFWRU¶VERRNVDQGUHFRUGVWRGHWHUPLQHDQGYHULI\WKH LQIRUPDWLRQUHSRUWHGLQDQ\965V,QWKHHYHQWWKDWDQ\VXFKDXGLWUHYHDOVXQGHUSD\PHQWRI9&$)IHH&RQWUDFWRUVKDOOLPPHGLDWHO\ SD\WKHDPRXQWRIGHILFLHQF\WRJHWKHUZLWKLQWHUHVWWKHUHRQDWWKHUDWHSURYLGHGLQ6HFWLRQ$W2UHJRQ'36¶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¶VRUWKHSXEOLVKHU¶VZDUUDQW\SHULRGWKURXJKWKH H[SLUDWLRQRIWKHORQJHUZDUUDQW\SHULRG  G  $OOJRRGVDQGVHUYLFHVGHOLYHUHGE\&RQWUDFWRUZLOOPDWHULDOO\FRQIRUPWRDQGPHHWRUH[FHHGWKHVSHFLILFDWLRQV DQGDFFHSWDQFHFULWHULDVHWIRUWKLQD3XUFKDVH2UGHUWKLV$GGHQGXPRUDQ\GRFXPHQWDWLRQSURYLGHGE\&RQWUDFWRU  H  $OOVHUYLFHVSHUIRUPHGE\&RQWUDFWRUZLOOEHSHUIRUPHGLQDFFRUGDQFHZLWKWKHKLJKHVWDSSOLFDEOHSURIHVVLRQDORU LQGXVWU\VWDQGDUGVDQGWKDWRQO\ZRUNPDQVKLSRIWKHILUVWTXDOLW\LVDFFHSWDEOH  I  &RQWUDFWRU¶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¶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¶V SURGXFWDQGVHUYLFHGRFXPHQWDWLRQ$OOZDUUDQWLHVSURYLGHGLQWKLV$GGHQGXPDQGLQ&RQWUDFWRU¶VSURGXFWDQGVHUYLFHGRFXPHQWDWLRQ DUHFXPXODWLYHDQGVKRXOGEHLQWHUSUHWHGH[SDQVLYHO\VRDVWRDIIRUG3XUFKDVHUWKHEURDGHVWSURWHFWLRQDYDLODEOH   ,QGHPQLWLHVDQG/LDELOLW\

 6(&7,21$77$&+0(176_B     *HQHUDOLQGHPQLW\&RQWUDFWRUZLOOGHIHQGDQGLQGHPQLI\3XUFKDVHUDQGWKH6WDWHRI2UHJRQDQGWKHLUDJHQFLHV RIILFHUVHPSOR\HHVDQGDJHQWV WRJHWKHUWKH³,QGHPQLILHG3DUWLHV´ IURPDQGDJDLQVWDOOFODLPVVXLWVDFWLRQVORVVHVGDPDJHV OLDELOLWLHVFRVWVH[SHQVHVDQGDWWRUQH\IHHVRIDQ\QDWXUHZKDWVRHYHULQFOXGLQJWKHDFWLYLWLHVRI&RQWUDFWRUDQGLWVRIILFHUV HPSOR\HHVVXEFRQWUDFWRUVUHVHOOHUVDQGDJHQWVZLWKRXWOLPLWDWLRQFODLPVIRUSHUVRQDOLQMXU\GHDWKDQGSURSHUW\GDPDJH WRJHWKHU ³&ODLPV´ UHVXOWLQJIURPDULVLQJRXWRIDQGUHODWLQJWRJRRGVDQGVHUYLFHVSURYLGHGE\&RQWUDFWRUXQGHUWKLV$GGHQGXP   ,QIULQJHPHQWLQGHPQLW\&RQWUDFWRUZLOOGHIHQGDQGLQGHPQLI\WKH,QGHPQLILHG3DUWLHVIURPDQGDJDLQVW&ODLPV UHVXOWLQJIURPDULVLQJRXWRIRUUHODWLQJWRDFODLPWKDWDQ\DVSHFWRIWKHJRRGVRUVHUYLFHVIXUQLVKHGXQGHUD3XUFKDVH2UGHULQIULQJHV DFRS\ULJKWSDWHQWWUDGHPDUNWUDGHGUHVVXWLOLW\PRGHOLQGXVWULDOGHVLJQPDVNZRUNRUDQ\RWKHULQWHOOHFWXDOSURSHUW\ULJKWRIDQ\ WKLUGSDUW\ ³,QIULQJHPHQW&ODLP´    'HIHQVHRILQGHPQLW\FODLPV&RQWUDFWRU¶VREOLJDWLRQWRGHIHQGDQGLQGHPQLI\D3XUFKDVHULVFRQGLWLRQHGRQ 3XUFKDVHUSURYLGLQJWR&RQWUDFWRUQRWLFHRID&ODLPRUSRWHQWLDO&ODLPRIZKLFK3XUFKDVHUEHFRPHVDZDUHWKDWPD\EHWKHVXEMHFWRI WKRVHVHFWLRQV+RZHYHUWRWKHH[WHQW3XUFKDVHU¶VQRWLFHLVGHOD\HG&RQWUDFWRU¶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¶VEHKDOIZLWKRXWWKHSULRUZULWWHQFRQVHQWRIWKH2UHJRQ$WWRUQH\*HQHUDO7KHSDUWLFLSDWLRQRIWKH6WDWHRI2UHJRQXQGHUWKLV VHFWLRQZLOOQRWUHOLHYH&RQWUDFWRURILWVREOLJDWLRQWRLQGHPQLI\WKH6WDWHRI2UHJRQ   5HPHGLHVIRU,QIULQJHPHQW&ODLPV,IDQ\JRRGVRUVHUYLFHVIXUQLVKHGE\&RQWUDFWRUDUHLQ&RQWUDFWRU¶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¶VSD\PHQWV LQIXOOIRUWKHDOOHJHGO\LQIULQJLQJJRRGVRUVHUYLFHVLQDGGLWLRQDOWRDQ\RWKHUUHPHGLHVDYDLODEOHWR3XUFKDVHU   /LPLWDWLRQRIOLDELOLW\([FHSWIRULQGHPQLW\DQGGHIHQVHOLDELOLW\RUFRQILGHQWLDOLW\YLRODWLRQVRUFODLPVIRU SHUVRQDOLQMXU\LQFOXGLQJGHDWKRUGDPDJHWRSURSHUW\DULVLQJIURPWKHQHJOLJHQFHUHFNOHVVFRQGXFWRULQWHQWLRQDODFWVRI&RQWUDFWRU LWVRIILFHUVHPSOR\HHVDQGDJHQWV&RQWUDFWRU¶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¶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

 6(&7,21$77$&+0(176_B    8SRQUHFHLSWRIZULWWHQQRWLFHRIWHUPLQDWLRQ&RQWUDFWRUVKDOOVWRSSHUIRUPDQFHXQGHUDOO3XUFKDVH2UGHUVXQGHU WKLV$GGHQGXPDVGLUHFWHGE\2UHJRQ'36&RQWUDFWRUPXVWQRWLI\2UHJRQ'36DQGHIIHFWHG3XUFKDVHUVUHJDUGLQJWKHVWDWXVRI 3XUFKDVH2UGHUVZKLFKKDYHQRWEHHQIXOO\SHUIRUPHGE\&RQWUDFWRUDWWKHWLPHRIWKHWHUPLQDWLRQ   7HUPLQDWLRQRIWKLV$GGHQGXPRUWKH0LQQHVRWD$JUHHPHQWGRHVQRWH[WLQJXLVKRUSUHMXGLFH2UHJRQ'36¶VRUD 3XUFKDVHU¶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¶VULJKWWRHQIRUFHWKH3XUFKDVH2UGHU LQFOXGLQJZLWKRXWOLPLWDWLRQDQ\ULJKWRI3XUFKDVHUWRLQGHPQLILFDWLRQIURP&RQWUDFWRU,QDGGLWLRQWHUPLQDWLRQRID3XUFKDVH2UGHU GRHVQRWH[WLQJXLVKRUSUHMXGLFH3XUFKDVHU¶VULJKWWRHQIRUFHWKHDQ\SURYLVLRQVRIWKLV$GGHQGXP,ID3XUFKDVH2UGHULVWHUPLQDWHG 3XUFKDVHUZLOOSD\&RQWUDFWRULQDFFRUGDQFHZLWKWKHWHUPVRIWKLV$GGHQGXPIRUJRRGVDQGVHUYLFHVDFFHSWHGE\3XUFKDVHU   &RPSOLDQFHZLWKODZ   &RQWUDFWRUZLOOFRPSO\ZLWKDOOIHGHUDOVWDWHDQGORFDOODZVUXOHVUHJXODWLRQVH[HFXWLYHRUGHUVDQGRUGLQDQFHV DSSOLFDEOHWR&RQWUDFWRU¶VSHUIRUPDQFHXQGHUWKLV$GGHQGXPDQGWRWKHJRRGVDQGVHUYLFHVSXUFKDVHG   :LWKRXWOLPLWDWLRQD3XUFKDVHU¶VSHUIRUPDQFHXQGHUWKLV$GGHQGXPDQG3XUFKDVH2UGHUVLVFRQGLWLRQHGRQ &RQWUDFWRU¶VFRPSOLDQFHZLWKWKHSURYLVLRQVRI256%%%DQG%,QDGGLWLRQ&RQWUDFWRUZDUUDQWV WKHJRRGVDQGVHUYLFHVSURYLGHGXQGHUWKLV$GGHQGXPZLOOFRPSO\ZLWKDOOIHGHUDO2FFXSDWLRQDO6DIHW\DQG+HDOWK$GPLQLVWUDWLRQ 26+$ UHTXLUHPHQWVDQGZLWKDOO2UHJRQVDIHW\DQGKHDOWKUHTXLUHPHQWVLQFOXGLQJWKRVHRIWKH2UHJRQ:RUNHUV¶&RPSHQVDWLRQ 'LYLVLRQ&RQWUDFWRUPXVWFRPSO\ZLWK D 7LWOH9,RIWKH&LYLO5LJKWV$FWRI E 6HFWLRQYRIWKH5HKDELOLWDWLRQ$FWRI F  WKH$PHULFDQVZLWK'LVDELOLWLHV$FWRIDQG256 G DOOUHJXODWLRQVDQGDGPLQLVWUDWLYHUXOHVHVWDEOLVKHGSXUVXDQWWRWKH IRUHJRLQJODZVDQG H DOORWKHUDSSOLFDEOHUHTXLUHPHQWVRIIHGHUDODQGVWDWHFLYLOULJKWVDQGUHKDELOLWDWLRQVWDWXWHVUXOHVDQG UHJXODWLRQV   ,QDGGLWLRQLI&RQWUDFWRULVQRWLILHGE\D3XUFKDVHUWKDWDVSHFLILFSXUFKDVHLVEHLQJPDGHZLWK$PHULFDQ5HFRYHU\ DQG5HLQYHVWPHQW$FWRI ³$55$´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

 6(&7,21$77$&+0(176_B   MXGLFLDOGHWHUPLQDWLRQVPDGHSXUVXDQWWRWKHIRUHJRLQJODZV&RQWUDFWRUZLOOEHQRWLILHGSULRUWR3XUFKDVHU¶VUHOHDVHRIGRFXPHQWVWR HQWLWLHVRWKHUWKDQSDUWLFLSDWLQJDJHQFLHVRURWKHU6WDWHDJHQFLHV&RQWUDFWRUVKDOOEHH[FOXVLYHO\UHVSRQVLEOHIRUGHIHQGLQJ &RQWUDFWRU¶VSRVLWLRQFRQFHUQLQJWKHFRQILGHQWLDOLW\RIWKHUHTXHVWHGGRFXPHQWVDWLWVRZQH[SHQVH   5HF\FOHGSURGXFWV&RQWUDFWRUPXVWXVHWRWKHPD[LPXPH[WHQWHFRQRPLFDOO\IHDVLEOHLQWKHSHUIRUPDQFHRIWKLV &RQWUDFWUHF\FOHGSDSHU DVGHILQHGLQ256$  JJ UHF\FOHG3(7(SURGXFWV DVGHILQHGLQ256$  KK DQG RWKHUUHF\FOHGSODVWLFUHVLQSURGXFWVDQGUHF\FOHGSURGXFWV DV³UHF\FOHGSURGXFW´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¶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³&RQWUDFWRU3HUVRQQHO´ LQWKHSHUIRUPDQFHRIWKLV$GGHQGXPDQG3XUFKDVH2UGHUVLVFRQILGHQWLDO LQIRUPDWLRQRI2UHJRQ'36DQG3XUFKDVHUV ³&RQILGHQWLDO,QIRUPDWLRQ´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¶VUHTXHVW&RQWUDFWRUZLOOSURYLGHWRWKH3XUFKDVHUDOOGRFXPHQWVSDSHUV DQGDOORWKHUPDWHULDOVLQ&RQWUDFWRU¶VSRVVHVVLRQWKDWFRQWDLQ&RQILGHQWLDO,QIRUPDWLRQRIWKDW3XUFKDVHU   &RQILGHQWLDO,QIRUPDWLRQGRHVQRWWRLQFOXGHLQIRUPDWLRQWKDW D LVRUEHFRPHV RWKHUWKDQE\GLVFORVXUHE\&RQWUDFWRU  SXEOLFO\NQRZQRULVFRQWDLQHGLQDSXEOLFO\DYDLODEOHGRFXPHQW E LVIXUQLVKHGE\3XUFKDVHUWRRWKHUVZLWKRXWUHVWULFWLRQVVLPLODUWR WKRVHLPSRVHGE\WKLV$GGHQGXP F LVULJKWIXOO\LQ&RQWUDFWRU¶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¶VIDLOXUHRUDOOHJHGIDLOXUHWRFRPSO\ZLWKDQ\RIWKHSURYLVLRQVRIWKH$GGHQGXP FROOHFWLYHO\D³'LVSXWH´ RWKHUWKDQRQH UHODWHGWRWKHUHOHDVHRI&RQILGHQWLDO,QIRUPDWLRQ2UHJRQ'36DQG&RQWUDFWRUVKDOOILUVWFRQGXFWWKHIROORZLQJSURFHGXUHLQDQ DWWHPSWWRUHVROYHWKH'LVSXWH  D  2UHJRQ'36DQG&RQWUDFWRUPXVWPDNHHYHU\HIIRUWWRVHWWOHDQ\GLVSXWHWKURXJKWKHLUUHVSHFWLYHPDQDJHUVZLWKLQ ILYHFDOHQGDUGD\VRIRQHSDUW\QRWLI\LQJWKHRWKHUSDUW\RIDGLVSXWH  E  ,IWKHGLVSXWHLVQRWUHVROYHGEHWZHHQWKHPDQDJHUVWKHQHLWKHUSDUW\PD\LQLWLDWHIRUPDOGLVSXWHUHVROXWLRQ GLVFXVVLRQVE\DGYLVLQJWKHRWKHUSDUW\LQZULWLQJ7KHFRQWDFWVIRUWKHVHGLVFXVVLRQVZLOOEH2UHJRQ'36¶VDQG&RQWUDFWRU¶V

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¶VULJKWVWRVHHNLQMXQFWLYHUHOLHIRIDQ\NLQGDWDQ\WLPH ZLWKUHVSHFWWRDQ\PDWWHUQRU  ZLOOLQDQ\ZD\OLPLWDSDUW\¶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³&ODLP´  EHWZHHQ&RQWUDFWRUDQG2UHJRQ'36RUD3XUFKDVHURWKHUWKDQDQ25&33PHPEHUWKDWDULVHVIURPRUUHODWHVWRWKLV$GGHQGXPRUD 3XUFKDVH2UGHUPXVWEHEURXJKWDQGFRQGXFWHGH[FOXVLYHO\LQWKH&LUFXLW&RXUWRI0DULRQ&RXQW\IRUWKH6WDWHRI2UHJRQ  E  25&33PHPEHUV$Q\&ODLPVEHWZHHQ&RQWUDFWRUDQGDQ25&33PHPEHUWKDWDULVHIURPRUDUHUHODWHGWR 3XUFKDVH2UGHUVPXVWEHEURXJKWDQGFRQGXFWHGH[FOXVLYHO\ZLWKLQWKH&LUFXLW&RXUWRIWKH2UHJRQFRXQW\LQZKLFKWKH25&33 PHPEHUKDVLWVSULQFLSDORIILFHRUDW3XUFKDVHU¶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¶VSHUIRUPDQFH&RQWUDFWRUPXVWSURYLGHDFFHVVWR3XUFKDVHUV2UHJRQ

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¶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³2UHJRQ7D[/DZV´PHDQVDVWDWHWD[ LPSRVHGE\256WRWRRU256FKDSWHUVRURUWKHHOGHUO\UHQWDO DVVLVWDQFHSURJUDPXQGHU256WRRUDORFDOWD[HVDGPLQLVWHUHGE\WKH'HSDUWPHQWRI5HYHQXHXQGHU256  &RQWUDFWRU BBBBBBBBBBBBBBBBDBBBBBBBBBBBFRUSRUDWLRQ  6LJQDWXUH BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 7LWOH BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 'DWH BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB )HGHUDOWD[ BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB  6WDWHRI2UHJRQDFWLQJE\DQGWKURXJKWKH'HSDUWPHQWRI$GPLQLVWUDWLYH6HUYLFHV  6LJQDWXUH BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 7LWOH BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 'DWH BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB     

 6(&7,21$77$&+0(176_B    ([KLELW$ WR 3DUWLFLSDWLQJ$GGHQGXP  &RQWUDFWRU¶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¶VSHUIRUPDQFHREOLJDWLRQVXQGHUWKLV$GGHQGXP&RQWUDFWRUVKDOOHQVXUHWKDWFRYHUDJHLVSULPDU\DQGQRQFRQWULEXWRU\ ZLWKDQ\RWKHULQVXUDQFHDQGVHOILQVXUDQFH

 6(&7,21$77$&+0(176_B    & ³7$,/´&29(5$*(  ,IDQ\RIWKHUHTXLUHGOLDELOLW\LQVXUDQFHLVRQD³FODLPVPDGH´EDVLV&RQWUDFWRUVKDOOHLWKHUPDLQWDLQHLWKHU³WDLO´FRYHUDJHRU FRQWLQXRXV³FODLPVPDGH´OLDELOLW\FRYHUDJHSURYLGHGWKHHIIHFWLYHGDWHRIWKHFRQWLQXRXV³FODLPVPDGH´FRYHUDJHLVRQRUEHIRUHWKH HIIHFWLYHGDWHRIWKLVParticipating AddendumIRUDPLQLPXPRIPRQWKVIROORZLQJWKHODWHURI L &RQWUDFWRU¶VGHOLYHU\RIDOOJRRGV DQGFRPSOHWLRQRIDOOVHUYLFHVUHTXLUHGXQGHUWKLV$GGHQGXPRU LLL WKHH[SLUDWLRQRIDOOZDUUDQW\SHULRGVSURYLGHGXQGHUWKLV $GGHQGXP1RWZLWKVWDQGLQJWKHIRUHJRLQJPRQWKUHTXLUHPHQWLI&RQWUDFWRUHOHFWVWRPDLQWDLQ³WDLO´FRYHUDJHDQGLIWKH PD[LPXPWLPHSHULRG³WDLO´FRYHUDJHUHDVRQDEO\DYDLODEOHLQWKHPDUNHWSODFHLVOHVVWKDQWKHPRQWKSHULRGGHVFULEHGDERYHWKHQ &RQWUDFWRUVKDOOPDLQWDLQ³WDLO´FRYHUDJHIRUWKHPD[LPXPWLPHSHULRGWKDW³WDLO´FRYHUDJHLVUHDVRQDEO\DYDLODEOHLQWKHPDUNHWSODFH IRUWKHFRYHUDJHUHTXLUHGXQGHUWKLV$GGHQGXP&RQWUDFWRUVKDOOSURYLGHWR2UHJRQ'36XSRQD3XUFKDVHU¶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

 6(&7,21$77$&+0(176_B    ([KLELW% WR 3DUWLFLSDWLQJ$GGHQGXP   $SSURYHG5HVHOOHUVRI&RQWUDFWRU3URGXFWVDQG6HUYLFHVUHODWHGWRWKH3URGXFWV    

 6(&7,21$77$&+0(176_B    ([KLELW& WR 3DUWLFLSDWLQJ$GGHQGXP   >5HVHUYHG@   



 6(&7,21$77$&+0(176_B  ([KLELW' WR 3DUWLFLSDWLQJ$GGHQGXP  )RUPDWIRU9ROXPH6DOHV5HSRUW  

VSR-Template.xlsx 

 6(&7,21$77$&+0(176_B 

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´7KH6WDWXV 9HULILFDWLRQ6\VWHPDOVRUHIHUUHGWRDV³(YHULI\´RQO\DSSOLHVWRFRQWUDFWVLVVXHGWKURXJKD5HTXHVWIRU3URSRVDOSURFHVVDQGWRVROH VRXUFHVWKDWDUHLQFOXGHGZLWKLQD5HTXHVWIRU3URSRVDO,WGRHVQRWDSSO\WR,QYLWDWLRQWR%LGVQRUWRWKH0XOWLSOH6WDJH3URFHVV  6WDWXV9HULILFDWLRQ6\VWHP $(DFKRIIHURUDQGHDFKSHUVRQVLJQLQJRQEHKDOIRIDQ\RIIHURUFHUWLILHVDVWRLWVRZQHQWLW\XQGHUSHQDOW\RISHUMXU\WKDWWKHQDPHG &RQWUDFWRUKDVUHJLVWHUHGDQGLVSDUWLFLSDWLQJLQWKH6WDWXV9HULILFDWLRQ6\VWHPWRYHULI\WKHZRUNHOLJLELOLW\VWDWXVRIWKHFRQWUDFWRU¶VQHZ HPSOR\HHVWKDWDUHHPSOR\HGLQWKH6WDWHRI8WDKLQDFFRUGDQFHZLWKDSSOLFDEOHLPPLJUDWLRQODZVLQFOXGLQJ8&$6HFWLRQ* %7KH&RQWUDFWRUVKDOOUHTXLUHWKDWWKHIROORZLQJSURYLVLRQEHSODFHGLQHDFKVXEFRQWUDFWDWHYHU\WLHU³7KHVXEFRQWUDFWRUVKDOOFHUWLI\ WR WKH PDLQ SULPH RU JHQHUDO  FRQWUDFWRU E\ DIILGDYLW WKDW WKH VXEFRQWUDFWRU KDV YHULILHG WKURXJK WKH 6WDWXV 9HULILFDWLRQ 6\VWHP WKH HPSOR\PHQWVWDWXVRIHDFKQHZHPSOR\HHRIWKHUHVSHFWLYHVXEFRQWUDFWRUDOOLQDFFRUGDQFHZLWKDSSOLFDEOHLPPLJUDWLRQODZVLQFOXGLQJ 6HFWLRQ*DQGWRFRPSO\ZLWKDOODSSOLFDEOHHPSOR\HHVWDWXVYHULILFDWLRQODZV6XFK DIILGDYLWPXVWEHSURYLGHGSULRUWRWKH QRWLFHWRSURFHHGIRUWKHVXEFRQWUDFWRUWRSHUIRUPWKHZRUN´ &7KH6WDWHZLOOQRWFRQVLGHUDSURSRVDOIRUDZDUGQRUZLOOLWPDNHDQ\DZDUGZKHUHWKHUHKDVQRWEHHQFRPSOLDQFHZLWKWKLV6HFWLRQ '  0DQXDOO\ RU HOHFWURQLFDOO\ VLJQLQJ WKH 3URSRVDO LV GHHPHG WKH &RQWUDFWRU¶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¶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¶VVDOHVDQGXVHWD[ H[HPSWLRQQXPEHULV67&ORFDWHGDWKWWSSXUFKDVLQJXWDKJRYFRQWUDFWGRFXPHQWVVDOHVWD[H[HPSWLRQIRUPVLJQHGSGI 7KHWDQJLEOHSHUVRQDOSURSHUW\RUVHUYLFHVEHLQJSXUFKDVHGDUHEHLQJSDLGIURP67$7(IXQGVDQGXVHGLQWKHH[HUFLVHRIWKDWHQWLW\¶V HVVHQWLDOIXQFWLRQV,IWKHLWHPVEHLQJSXUFKDVHGDUHFRQVWUXFWLRQPDWHULDOVWKH\ZLOOEHFRQYHUWHGLQWRUHDOSURSHUW\E\HPSOR\HHVRI WKLV JRYHUQPHQW HQWLW\ XQOHVV RWKHUZLVH VWDWHG LQ WKH FRQWUDFW RU FRQWUDFW RUGHUV7KH 6WDWH RI 8WDK¶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³6WDWHRI8WDK'LYLVLRQRI3XUFKDVLQJ´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³3XUFKDVLQJ&DUG´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¶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

 

 6(&7,21$77$&+0(176_B   

%02'(/3$57,&,3$7,1*$''(1'80  6FRSH7KLVDGGHQGXPFRYHUVWKH:6&$1$632&20387(5(48,30(17&2175$&7OHDGE\WKH 6WDWH RI 0LQQHVRWD IRU XVH E\ VWDWH DJHQFLHV DQG RWKHU HQWLWLHV ORFDWHG LQ WKH 3DUWLFLSDWLQJ 6WDWH(QWLW\ DXWKRUL]HGE\WKDWVWDWH¶VVWDWXWHVWRXWLOL]HVWDWHHQWLW\FRQWUDFWVZLWKWKHSULRUDSSURYDORIWKHVWDWH¶VFKLHI SURFXUHPHQWRIILFLDO   3DUWLFLSDWLRQ8VHRIVSHFLILF:6&$1$632FRRSHUDWLYHFRQWUDFWVE\DJHQFLHVSROLWLFDOVXEGLYLVLRQV DQGRWKHUHQWLWLHV LQFOXGLQJFRRSHUDWLYHV DXWKRUL]HGE\DQLQGLYLGXDOVWDWH¶VVWDWXWHVWRXVH VWDWHHQWLW\ FRQWUDFWV DUH VXEMHFW WRWKH SULRU DSSURYDO RI WKH UHVSHFWLYH 6WDWH &KLHI3URFXUHPHQW2IILFLDO ,VVXHVRI LQWHUSUHWDWLRQDQGHOLJLELOLW\IRUSDUWLFLSDWLRQDUHVROHO\ZLWKLQWKHDXWKRULW\RIWKH6WDWH&KLHI3URFXUHPHQW 2IILFLDO  3DUWLFLSDWLQJ6WDWH0RGLILFDWLRQVRU$GGLWLRQVWR0DVWHU$JUHHPHQW 7KHVHPRGLILFDWLRQVRUDGGLWLRQVDSSO\RQO\WRDFWLRQVDQGUHODWLRQVKLSVZLWKLQWKH3DUWLFLSDWLQJ(QWLW\ 8WLOL]HWKLVVHFWLRQZLWKVSHFLILFFKDQJHVRUDVWDWHPHQWWKDW1R&KDQJHV$UH5HTXLUHG

,WHPVWRFRQVLGHUIRULQFOXVLRQLQWKH3DUWLFLSDWLQJ$GGHQGXP

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

 6(&7,21$77$&+0(176_B  

0DWHULDOV0DQDJHPHQW'LYLVLRQ $GPLQLVWUDWLRQ%XLOGLQJ 6KHUEXUQH$YHQXH 6W3DXO01 9RLFH )D[

&02'(/0$67(5$*5((0(17 'DWH   >7\SH1DPH@ >&RPSDQ\1DPH@ >6WUHHW$GGUHVV@ >$GGUHVV@ >&LW\6WDWH=LS@  'HDU>7\SH1DPH@  7KHIROORZLQJGRFXPHQWVDUHHQFORVHGIRU\RXWRFRPSOHWHDQGUHWXUQ  x 1RWLILFDWLRQRI&RQWUDFW0$67(5$*5((0(17$ZDUG>&RQWUDFW1R@IRU  01:6&$1$6327&20387(5(48,30(17  x ([KLELW;;1HJRWLDWHG7HUPV &RQGLWLRQV  x ([KLELW;;3ULFLQJ'LVFRXQWV  x 0LQQHVRWD1HZ+LUH5HSRUWLQJ)RUP0LQQ6WDWUHTXLUHVHPSOR\HUVWRUHSRUWWRWKH'HSDUWPHQWRI +XPDQ6HUYLFHVZKHQWKH\KLUHDVROHSURSULHWRUVKLSWRSHUIRUPZRUNIRUWKHP  3OHDVHVLJQDQGUHWXUQDOOVHWVRIGRFXPHQWV9,$0$,/  WR1DQF\5DIIWHU\DWWKHDERYHDGGUHVVE\'DWH x x $FHUWLILFDWHRILQVXUDQFHIURP\RXULQVXUHULQWKHDPRXQWVFDOOHGIRULQWKHVROLFLWDWLRQ is required now.  ,QDFFRUGDQFHZLWK0LQQ6WDW†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

 6(&7,21$77$&+0(176_B   ,16758&7,216

5HWXUQWKHVLJQHGVHWVRIGRFXPHQWVWRWKH00'RIILFH

5(48,5('6,*1$785(6 i 7KHGRFXPHQWVPXVWEHVLJQHGE\DQRIILFHURI\RXUFRPSDQ\HJSUHVLGHQWYLFHSUHVLGHQWDVVLVWDQWYLFH SUHVLGHQWFRUSRUDWHVHFUHWDU\DVVLVWDQWFRUSRUDWHVHFUHWDU\WUHDVXUHURUDVVLVWDQWWUHDVXUHU i ,I\RXUFRPSDQ\LVDFRUSRUDWLRQWKHVLJQDWXUHRIRQHFRUSRUDWHRIILFHULVELQGLQJ,I\RXUFRPSDQ\LVD SDUWQHUVKLSWKHVLJQDWXUHRIRQHSDUWQHULVELQGLQJ

,IVRPHRQHRWKHUWKDQWKHFRUSRUDWHRIILFHUVOLVWHGDERYHVLJQVWKHGRFXPHQW HJPDQDJHUVDOHVPDQDJHU H[HFXWLYHDVVLVWDQWHWF HYLGHQFHRIKLVRUKHUDXWKRULW\WRGRVRPXVWDFFRPSDQ\WKHGRFXPHQW7KHHYLGHQFH FDQEHHLWKHU o $FRUSRUDWHSRZHURIDWWRUQH\RU o$FHUWLILHGFRS\RIDERDUGUHVROXWLRQDXWKRUL]LQJWKHDOWHUQDWHVLJQDWXUHZLWKDOHWWHUDWWDFKHGDQGVLJQHGE\D FRUSRUDWHRIILFHUVWDWLQJWKHUHVROXWLRQLVLQIRUFHDQGHIIHFWLYH

 

 6(&7,21$77$&+0(176_B  

0DWHULDOV0DQDJHPHQW'LYLVLRQ $GPLQLVWUDWLRQ%XLOGLQJ 6KHUEXUQH$YHQXH 6W3DXO01 9RLFH )D[

  127,),&$7,212)&2175$&70$67(5$*5((0(17$:$5'   7R >7\SH1DPH@ &2175$&712 >&RQWUDFW1R@ >&RPSDQ\1DPH@ >6WUHHW$GGUHVV@ 5(/($6(12 >5HOHDVH1R@ >$GGUHVV@ &2175$&73(5,2'  >&LW\6WDWH=LS@ 7KURXJK  (;7(16,21237,21 >([W2SWLRQ@  

 6(&7,21$77$&+0(176_B  

 &RQWUDFW1R>&RQWUDFW1R@     67$7(2)0,11(627$  0$7(5,$/60$1$*(0(17',9,6,21 (;+,%,7[[ 02',),('7(506 &21',7,216    $VVWDWHGLQWKH1RWLILFDWLRQRI&RQWUDFW$ZDUG  WKLV&RQWUDFWLQFRUSRUDWHVWKHWHUPVFRQGLWLRQVDQG  6SHFLILFDWLRQVRIWKHVROLFLWDWLRQDQGUHVSRQVH  7KHIROORZLQJWHUPVDQGFRQGLWLRQVKDYHEHHQPRGLILHGE\QHJRWLDWLRQ7KHVHUHSODFHRUDUHLQDGGLWLRQ DVLQGLFDWHG WKHRULJLQDO VROLFLWDWLRQ7HUPVDQG&RQGLWLRQV$Q\WHUPV127PRGLILHGRUUHSODFHGDUHDJUHHGWRE\ERWKSDUWLHVIURPWKHRULJLQDOVROLFLWDWLRQ

 6(&7,21$77$&+0(176_B   &RQWUDFW1R>&RQWUDFW1R@     67$7(2)0,11(627$  0$7(5,$/60$1$*(0(17',9,6,21 (;+,%,7[[  35,&,1*',6&28176&+('8/(  35,&,1*:,//127%(+(/'&21),'(17,$/     %$1' 6 $:$5'('  ,16(57),1$/1(*27,$7('',6&28176758&785(6$1'92/80(',6&28176+(5( 

 6(&7,21$77$&+0(176_B  



 6(&7,21$77$&+0(176_B  

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

 6(&7,21$77$&+0(176_B   $&7,215(48(67/2* 6XEPLWXSGDWHG$FWLRQ/RJZLWKHDFK5HTXHVW/RJPXVWSURYLGHKLVWRU\RISUHYLRXVUHTXHVWV  &2175$&79(1'25BBBBBBBBBBBBBBBBBBBBBBBBBB  &RQWDFW1DPHDQG(PDLO IRUTXHVWLRQV BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB  '$7(BBBBBBBBBBBBBBBBBB   '$7( $&7,215(48(67(' '$7( 68%0,77(' $33529('  ,QFOXGH6FL4XHVW)LOH1DPHZKHQDSSOLFDEOH                                                                          

 6(&7,21$77$&+0(176_B  

(352'8&7$1'6(59,&(6&+('8/( 6$03/(  0$18)$&785(51$0(BBBB$%&BBBBBBBBBBBBBBBBBB  '$7(BBBBBBBBBBBB   

3DUW %$1' &$7(*25< 0$18)$&785(5 '(6&5,37,21 %$6(/,67 :6&$ :6&$ $&78$/ $'' $ 35,&( 35,&( 0,1,080 ',6&2817  ',6&2817 3529,'(' '(/(7( '  ZZZ$%&SU 35,&( LFHOLVWFRP 5('8&(' 5   

;<=  9DOXH $%& '(6.723     $ 'HVNWRSV

  7KLUG3DUW\ ====== /$3723&$57     ' 3URGXFWV

$  6HUYLFHV $%& ,167$//$7,21     5 

 6(&7,21$77$&+0(176_B  

)%8/.92/80(35,&,1*(;$03/(6 CUMULATIVE $ Threshold Frequency Discount $1,000,000-$2,000,000 Annually add'l 1% $2,000,000-$3,000,000 Annually add'l 1.5% $3,000,000-$4,000,000 Annually add'l 2% $5,000,000 on up Annually add'l 2.5%

PER TRANS MULTI UNIT $75,000-$100,000 - add'l 1% $100,000-$200,000 - add'l 1.5% $200,000-$300,000 - add'l 2% $300,000-$400,000 - add'l 2.5% $400,000-$500,000 - add'l 3% $500,000 on up - add'l 3.5% Additional .5% for online orders CUMULATIVE $ Threshold Frequency $2,000,000,000 & up Every $2 Billion 'gate' additional .5% on band 1-6A PER TRANS MULTI UNIT $50,000-$99,999 - add'l 1% $100,000-$199,999 - add'l 2% $200,000-$499,999 - add'l 4% $500,000-$999,999 - add'l 6% $1,000,000-No Max - add'l 8% CUMULATIVE $ Threshold Frequency Discount $5,000,001-$10,000,000 Duration of Master Agreement add'l 1% $10,000,001-$20,000,000 Duration of Master Agreement add'l 1% $20,000,001-$40,000,000 Duration of Master Agreement add'l 1% $40,000,001-$80,000,000 Duration of Master Agreement add'l 1% $80,000,001 TO 160,000000 Duration of Master Agreement ADDL 2% 106,000,001 - 220,000,000 Duration of Master Agreement ADDL 1.5 ABOVE $220,000,000 Duration of Master Agreement ADDL .5%

:6&$9ROXPH3ULFLQJ SHURUGHU IRU'HVNWRSV 0LQLPXP'LVFRXQW DQG1RWHERRNV

8QLWV ;; 8QLWV ;;

8QLWV ;; 

 6(&7,21$77$&+0(176_B  

      

*'(7$,/('5(3257,1*6$03/(   &OLFNWRGRZQORDG 'HWDLO6DOHV5HSRUW7HPSODWH 

 6(&7,21$77$&+0(176_B  

     

+35,&(:25.%22.6  3')6DPSOHVSURYLGHGLQRULJLQDOVROLFLWDWLRQ  $GGHQGDUHOHDVHGUHYLVHGYHUVLRQVRI3ULFH:RUNERRNV  %DQG'HVNWRS3ULFH:RUNERRNY  %DQG/DSWRS3ULFH:RUNERRN9  %DQG7DEOHW3ULFH:RUNERRNY  %DQG6HUYHU3ULFH:RUNERRNY  %DQG6WRUDJH3ULFH:RUNERRNY  %DQG5XJJHGL]HG3ULFH:RUNERRNY 

 6(&7,21$77$&+0(176_B   ,62/,&,7$7,21+,6725<  :(%,1$5,19,7$7,21 ,VVXHGDGYDQFHGQRWLFHRIZHELQDUWRUHYLHZ'UDIW6ROLFLWDWLRQ '5$)762/,&,7$7,21,668(' :(%,1$5 &200(176'8(  '5$)772:6&$1$632',5(&7256)255(9,(:  5()(5(1&( ),1$/62/,&,7$7,21,668(' 35(352326$/0((7,1* 352326$/6'8(25,*,1$/1RYHPEHU$0(1'('-DQXDU\  $''(1'80$QQRXQFHGDQDGGHQGXPZRXOGEHLVVXHGVRRQWR SURYLGHDQVZHUVWRTXHVWLRQVSURYLGHSULFLQJ H[WHQGGXHGDWH  $''(1'80([WHQGHGWKHGXHGDWHWR'HFHPEHU  $''(1'80 3URYLGHGUHVSRQVHVWRTXHVWLRQV ,VVXHGUHYLVHG5)3±UHGOLQHDQGFOHDQYHUVLRQ ,VVXHG3ULFLQJ :RUNERRNV$OORZIRUDGGLWLRQDOTXHVWLRQVE\1RYHPEHU  $''(1'80([WHQGWR  $''(1'80([WHQGWR-DQXDU\3URYLGH 5HVSRQVHVWRTXHVWLRQVGXH1RYHPEHU ,VVXHGUHYLVHG5)3± UHGOLQHDQGFOHDQYHUVLRQ ,VVXHGXSGDWHG3ULFLQJ:RUNERRNV  $''(1'80 7KHOLQNSURYLGHGIRU%DQGLQ$GGHQGXPZDVLQFRUUHFWDQGKDVEHHQFRUUHFWHG&ODULILFDWLRQ UHJDUGLQJWKH%DVHOLQH3ULFH/LVW'DWH7KH%DVHOLQH3ULFH/LVWVXEPLWWHGPD\EHGDWHGDQDOWHUQDWHGDWH+RZHYHUWKHPDUNHWEDVNHW SULFLQJVXEPLWWHGPXVWEHUHSUHVHQWDWLYHRIWKHSULFLQJIRUDQRUGHUSODFHGRQ1RYHPEHUIRUSXUSRVHVRIHYDOXDWLRQ  $''(1'803URYLGH9HUVLRQRI%DQG6HUYHU3ULFLQJ:RUNERRN5HYLVLRQVLQFOXGHD7KH3URFHVVRULQ%DVH (TXLSPHQW6SHFKDVEHHQFKDQJHGWR³;HRQ(VHULHV´E7KHRSWLRQDQGXSJUDGHVLQWKH(TXLSPHQWSULFLQJWDEKDYHEHHQV\QFHG ZLWKWKHXSJUDGHRQWKH6SHFWDEF7KHXSJUDGHRQ6SHFWDEKDVEHHQGHOHWHG  $''(1'80 SURYLGHYHUVLRQRIEDQGVHUYHUSULFLQJZRUNERRN5HYLVLRQLQFOXGHV7KH3URFHVVRULQ%DVH (TXLSPHQW7$%6SHFVFHOO'KDVEHHQFKDQJHGWR³)RXU;HRQ(VHULHV *K]FRUH ´7KLVSURFHVVRUVXSSRUWVWKH PLQLPXPUHTXLUHPHQWRIVRFNHWV &ODULILFDWLRQRQZDUUDQW\SULFLQJ,WLVXQGHUVWRRGWKDWUHVSRQGHUVPD\KDYHYDU\LQJEDVH ZDUUDQWLHV)RUH[DPSOHLQ%DQG±7DEOHW3ULFH:RUNERRN6HUYLFHV7DE±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³0867´DGGHQGDDUHWREHSRVWPDUNHGDQGVHQWDVDVHSDUDWHSDFNDJH$GGHQGD ZLOOVWDWH³0867´EHUHWXUQHGRU³0$<´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±%DVH 5RZ' RQ6SHFRI7%DQG6SHFRI7%7KHGULYHVL]HPXVW DOVREHVXIILFLHQWWRPHHWWKHXSJUDGHGFRQILJXUDWLRQ 5RZ& RQ6SHFWR7%LQVWDOOHGUDZDQG6SHFWR7%LQVWDOOHGUDZ7KH UHVSRQVHPXVWPHHWRUH[FHHGWKHPLQLPXPVSHFLILFDWLRQVE 5$,'RSWLRQVFKDQJHGWR³6SHFLI\´DOORZLQJWKHUHVSRQGHUWRVSHFLI\WKH 5$,'QXPEHU 6SHFV,WHP7$%&HOO'DQG6SHFV,WHP7$%&HOO'   3URYLGHUHYLVHG3ULFLQJ:RUNERRNVUHIOHFWLQJFRUUHFWLRQVWRSRSXODWHWKHSULQWHUSULFLQJFRUUHFWO\DQGPRGLILFDWLRQWRWKH%DQG 6WRUDJH3ULFH:RUNERRNGHWDLOHGLQEDERYH  $''(1'80 ([WHQGWKHRSHQLQJGDWHWR-DQXDU\SP&7 ,VVXHUHYLVHG5)3GDWHG 7KLVYHUVLRQLQFOXGHVUHYLVLRQVUHVXOWLQJIURPDGGHQGD ,VVXH%DQG±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

 6(&7,21$77$&+0(176_B  MN WSCA-NASPO COMPUTER EQUIPMENT ANSWERS TO QUESTIONS PAGE SECTION QUESTION ANSWER 1 4 1 With the existing WSCA Computer contract expiring on 8/31/2014, will the new contract start It is anticipated Master Agreements will be awarded prior to 9/1/2014, to allow States time to execute Participating date be 9/1/2014, or sooner based on the successful negotiations with the manufacturers? Addendums by 9/1/2014.

2 4 1 How are NASPO, WSCA, and the WSCA-NASPO Cooperative Purchasing Organization, LLC The WSCA-NASPO Cooperative Purchasing Organization, LLC is the subsidiary entity of The National Association of related to one another legally and functionally? State Procurement Officials (NASPO) The LLC's main function is to manage NASPO's national cooperative purchasing program. The Western States Contracting Alliance (WSCA) previously served as the primary cooperative purchasing arm of NASPO and encouraged, fostered, and guided participating members to work collaboratively in an effort to create true procurement cooperatives. WSCA was sun-setted on December 31, 2012 when the WSCA- NASPO Cooperative Purchasing Organization, LLC became effective on January 1, 2013.

3 4 1 Upon award, with whom is a vendor contracting? The Master Agreement will be executed with the State of Minnesota. Once fully executed, participating addendums may be executed at the option of each State and/or allowable participating entities. 4 4 1 Please verify that one of the requirements for a Manufacturer to respond to the WSCA RFP is Responders must be a manufacturer of products listed in Bands 1-6. that they must be a manufacturer of one of the products listed in Bands 1-6.

5 4 1 I found this on the state of LA Office of State Purchasing website. I attended the webinar This is a WSCA-NASPO Cooperative Contract led by the State of Minnesota. All States, at their option, may yesterday and have read over the RFP. I notice this is a general RFP for all participating states participate in the contract via a Participating addendum once a Master Agreement is established with the State of of WSCA. If we respond to this, are we responding for the state of LA, or to all states? Minnesota. Responders may limit the offering to a single State and must indicate this in Section 3A14.

6 4 1 The content provided in Section 1 seems to be informational only. Does WSAC/NASPO wish Responders should acknowledge they have read, understand and comply to these Sections. for us to include this section in our response? 7 4 1 Can Qualified Authorized resellers offer bids for this? No. Responders must be a manufacturer of products listed in Bands 1-6. 8 4 1 Standalone software appears to be excluded from the RFP, just like the previous RFP. Software which is not directly loaded on the equipment, however relates to server and storage equipment purchased However, there is important File System/Storage/Archiving SW that is available for the efficient via the contract is allowed after the initial purchase. All other software must be purchased at the time of the initial operation of the equipment. This is separate SW and it is not required to be purchased at the purchase. time of equipment purchase (which could perhaps amount to product tying). Can this SW be sold to an entity when the entity later decides that it wants to use it on the equipment it previously purchased from us? 9 4 1:A What if the manufacturer doesn't sell directly and ONLY sells through channel partners? If a manufacturer does not sell products directly, they may receive a contract award. Participating States determine in their participating addendum if they allow sales functions to a partner. The awarded vendor must still comply with all aspects of the requirements and is to be the primary point of contact with regard to contractual matters.

10 4 1:A In reference to Section 1 – Introduction which states: "Responders must only respond to Bands No. in which they manufacture the defined product." Are certified and authorized resellers of manufactured products allowed to provide a response to this RFP? 11 4 1:A Is it possible to respond to the RFP with a peripheral product only? No. Responders must manufacture a product in one of the bands. 12 4 1:A “Respondents must only respond to bands in which they manufacture the defined product.” The The manufacturer must respond to the RFP. A reseller cannot respond on behalf of a manufacturer. An authorization manufacturer of the zero client products we sell does not sell directly. They ONLY sell their letter may not be provided by the manufacturer to authorize a reseller to respond on the manufacturer's behalf. products through channel partners, such as our company. Since the manufacturer doesn’t actually sell their own products, how do we go about offering them through the WSCA-NASPO contract? Is it possible for the manufacturer to write a letter confirming that they have no infrastructure in place to sell directly and authorizing our company to sell their products? There is a very high demand for these virtual desktop zero clients in the educational market and it would be a great benefit for WSCA-NASPO members to be able to purchase them at reduced prices through the Computer Equipment contract.

13 4 1A What specific oversight of Participating Addendums does WSCA provide to Participating WSCA-NASPO will answer questions and provide any guidance requested from a Participating Entity. Since use by Entities upon execution of those Participating Addendums? Participating Entities (Political Subdivisions) requires approval of the State Director of which they are located in, WSCA-NASPO will contact the State Director on behalf of the entity to seek permission and if permission is obtained, will provide direction to the Participating Entity to negotiate the PA and send a PDF of the signed executed copy back to WSCA-NASPO.

1 MN WSCA-NASPO COMPUTER EQUIPMENT ANSWERS TO QUESTIONS 14 4 1A What oversight does WSCA provide for subsequent individual procurements by Participating WSCA-NASPO does not provide oversight to Participating Entities conducting subsequent individual procurements. Entities? WSCA-NASPO only provides oversight in the Participating Addendum process by verifying if a Participating Entity is authorized to participate and desire o execute their own Participating Addendum.

15 4 1A Does WSCA intend to include U.S. Territories as potential Participating Entities for this RFP? Territories may participate.

16 4 1A What criteria, both objective and qualitative, will inform the State’s decision to extend any The Master Agreement contract terms will begin on the date of contract execution, to 24 months after the date of Master Agreement to its maximum possible 36-months? contract execution, with the option to extend up to 36 months, upon agreement by both parties. Cirteria to extend is determined at the time of extension. 17 4 1A Is a Participating Addendum (PA) a subordinate agreement to the Master Agreement? If not, See section 2A2 for the order of precedence. These documents shall be read to be consistent and complementary. is it a standalone contract? If the PA is a standalone contract, is it universally based upon The Particiapting Addendum is not a standalone contract. The Participating Entity may include additional terms and Minnesota law in addition to WSCA’s Terms and Conditions? Alternatively, is the PA based conditions in the Participating Addendum based on their procurement law which are in addition to the Master upon a specific Participating Entitie’s State-level procurement laws in addition to WSCA’s Agreement Terms and Conditions. Terms and Conditions? 18 4 1A Do the Participating Addendum and Master Agreement require identical termination dates? No. The Master Agreement dictates the term of the Master Contract and a participating entity may contract within the terms of the Master Agreement. 19 1A In the event that any Participating Entity desires to continue its Participating Agreement with a The Master Agreement is executed with the State of Minnesota. A participating entity may contract within the terms of Vendor, would that prevent the MN from terminating the Participating Addendum? the Master Agreement but not go beyond the contract period of the Master Agreement. 20 4 1A The RFP states that a Participating Entity may, “modify the scope of the contract,” in its Modifications are only allowed as stated in the Master Agreement. As stated configuration limits may be raised or Participating Addendum. Please elaborate as to the types of modification a Participating Entity lowered, methods of reporting revised, additional restrictions, limits, and terms are allowed in participating may make. Presuming this clause states that a Participating Addendum may be written to addendum. Any clarifications of scope would be presented to the WSCA-Management Board and the Master modify the scope of the Master Agreement, what aspects of the Master Agreement must be Agreement Admnistrator by the State. A PA cannot extend beyond the Master Agreement Term. kept? (Page 4, Section 1-A, Paragraph 6) 21 5 1B It says, “Proposers will provide an initial discount for a quantity of one unit.” We can provide a Yes. The categories and discounts are to be named on the discount pages provided in the Price Workbooks. different initial discount for each product type we offer, just like it is shown in the sample Product and Service Schedule E on page 122 – correct? 22 5 1B Both the State’s and other Participating Entities’ preceding Master Agreements were awarded The term of the contract remains the same. The 2009-2014 Computer Contracts were awarded for a three year term with a five (5) year base performance period with the possibility of two (2) or more additional with possibility of an additional 2 years for a a total of five years. Other WSCA Contracts may have different terms performance years. Why has the base performance period in this new MA been reduced from determined by the sourcing team for that contract. five (5) to two (2) years? 23 5 1B How many Master Agreements and Participating Addendums were the result of the preceding Please review the website for current Master Agreements and Participating Addendums for the 2009-2014 contracts. RFP [i.e., WSCA-NASPO RFP W2-1999 for Computer Equipment, Peripherals, and Related http://www.mmd.admin.state.mn.us/wsca/2009-2014_contracts.asp Services (2009)]? 24 5 1B Regarding annual, quarterly, periodic, and ad hoc reports filed by two (2) example Contract This information is not readily available. To give an estimate would be highly variable depending upon the number of Vendors (CV-1 and CV-2, respectively) to an example Participating Entity (PE): a. What is the participating addendums the vendor has successfully executed and the varying reporting requirements by each State. estimated or actual count of reports filed from 2009-2013 by a continuously active CV(CV-1) for the preceding RFP (i.e. W2-1999)? What is the estimated or actual aggregate count of report filed by CV (CV-2) for the preceding RFP (i.e. W2-1999)? 25 5 1B Will the State of Minnesota (the State) and/or WSCA-NASPO (WSCA) deny contract The Premium Savings Package Program is not currently a mandatory requirement. Determination for extensions are extensions in the event that a Contract Vendor (CV) declines to offer a Premium Savings decided at the time of extenstion. Extensions have not been declined in the past based on the Premium Savings Package (PSP) program of discounted configurations? Package program. 26 7 1 Can WSCA-NASPO provide the annual contract sales by “band” as well as by State? Annual contract sales are not currently readily available by Band. 27 8 1 Do peripherals include network switches? Yes, on page 8, last paragraph states: Examples of peripherals/accessories/options: Include but are not limited to: printers, monitors, multifunction printers, audiovisual equipment, instructional equipment, cabling, modems, networking to support server, storage and client applications such as routers, switches. Note that there is a master agreement restriction of $5000 maximum per peripheral - see page 9. 28 8 1 Please give some more clarification regarding accessories/peripherals versus third party If a responder does not manufacture the product, it is considered a third party product. In the scenario stated the products. For example, in the desktop category, if a customer wants a ViewSonic monitor monitor would be considered a third party accessory/peripheral. It would need to be listed as a third party product and instead of our brand monitor with their desktop purchase, would we need to list the ViewSonic also provide pricing in the market basket and included on the proposed product and services schedule. monitors as an accessory/peripheral or would we need to list View Sonic as a third party vendor whose products we would like to sell under the contract?

2 MN WSCA-NASPO COMPUTER EQUIPMENT ANSWERS TO QUESTIONS 29 8 4 To help us complete the cost proposal workbook properly, please clarify product classifications A resopnder must manufacture server/storage in order to receive an award for server/storage peripherals. The for server/storage/peripheral/software: we have some server/storage models and many products mentioned could be classified as peripherals in the storage/server band. Software is an option that must be server/storage features that may fit the RFP description of peripherals, rather than the definition purchase with the related equipment. See restrictions on software for more details. Peripheral discounts could be of server function; however, they are usually identified as one of many optional features in provide din the price workbook. The specific item such as a rack could then be included in the responders PSS. server or storage configurations. (Example: optional noise reduction door on a system rack) It Software could be named as an additional category in theband discount if published by the responder or as in the would be prohibitive to list/maintain them all individually for each band; shall they be classified third party minimum discount if not published by the vendor. The Lead State reserves the right to request additional as peripheral or part of the server or storage system? Similarly, how would software be pricing , if in the best interset of the state or to clarify pricing responses. categorized as it is stated: Software is not an "Option, Upgrade, nor Peripheral."

30 8 1:E If we only manufacture a peripheral, can we bid on only the peripheral. No. The Scope of the contract is for computer equipment. 31 8 1:E Can third party products be offered as a peripheral even though it would qualify as an No, an item can not be listed as a peripheral in a band if it is base equipment in a different band. acceptable product for another band? For example, we manufacture servers specifically designed for hosting a particular line of virtual desktop zero clients that are manufactured by a third party. If we apply for a contract for Band 4 (servers) can we offer the zero clients as peripherals to our servers? The zero clients could be offered by the manufacturer under Band 1 (Desktops), but we know the manufacturer will not be applying to the contract because they don’t sell to customers directly. 32 8 1E If we receive an award in one band, can we later add products to a different band? For No. example, we currently manufacture an EPEAT desktop and plan to manufacture a EPEAT server in the future. Can we submit for the desktop band at this time and later receive an award for a server once we begin manufacturing? 33 8 1E Peripherals/options include but are not limited to “storage and client applications.” Does this Review the changes made in the RFP on page 10 to the Software restrictions. The restrictions have been revised to language permit us to sell separately provided storage/file system/archiving software allow and now state: Software such as middleware which is not always installed on the equipment, but is related to applications, even if not purchased at the same time as the entity’s acquisition of the storage and server equipment (band 4&5) purchased, is allowed and may be procured after the initial purchase of equipment? equipment. 34 8 1E Band 1: Desktop states that zero and thin clients are included in this band. This particular The price workbook does not specify all products that a vendor can offer. The Price Workbook will be utilized to product can be a stand, a box or a integrated display. Where do we find the specifications for compare pricing among responders for evaluation purposes. The product and service schedule submitted may this product in the Desktop cost proposal sheets? We are only able to find Desktop, displays, include all products offered by the responder including zero and thin clients in the desktop band. printers. 35 8 1E Band 2: Laptop – please advise what a mobile is? Is this a netbook, chromebook, A mobile thin client would include netbooks and chromebooks as thin clients for the web, but would also include etc.? other thin clients of a notebook configuration that are a terminal on a network. 36 8 4 & 1:E We understand that ruggedized systems may be included in Server/Storage categories. Do you No. Responders may only respond to the Ruggedized Band if they are able to provide the market basket want us to list those same systems in Ruggedized as well or is within Server/Storage sufficient? specifications provided in the Ruggedized Workbook. Ruggedized options for server/storage can be provided as part of the PSS when responding to the Server/Storage Bands. 37 9 1:F Please confirm our understanding that a state/entity can increase their configuration cap to The Scope of the Master Agreement allows the Participating State’s Chief Procurement Official to increase exceed the $500k in the Master Agreement. If they do so, what is the process to add configuration limits in their Participating Addendum. The process to add these products for the individual State additional products that now meet this new, higher limit for that state since those products must also be defined in their Participating Addendum. The final negotiated Master PSS will only contain products would be outside the scope of the Master Agreement. Does the vendor still fill out the same within the Master Agreement Configuration and Restriction limits. The Participating Addendum with the individual form to request the addition - stating which state has increased their PO and thus the product State would detail how additional products will be added for their State. offering? Does this also apply to peripherals and middleware? 38 9 3:F1 The stated dollar limit for peripherals is $5,000. Can this dollar amount be adjusted by each Yes. The Participating State’s Chief Procurement Official may increase or decrease the configuration limits, as participating State? defined in their Participating Addendum 39 10 1:G I'm confused what the sentence "Contract Vendors can only offer third party products in the For example, Company X is awarded the server band. They can offer third party products related to the server band. bands they have been awarded" However, they cannot offer a different band such as a desktop as a third party products if they were not awarded the desktop band. 40 10 1:G A Regarding pre-loaded software, Servers/Storage products more and more frequently offer a The Software restriction has been revised to allow providing maintenance and software as an electronic download electronic downloads using a license key, so that the most recent release can be obtained of with the purchase of equipment. The restriction to purchase software with the intial purchase of equipment remains commercially available or off-the-shelf products. Many customers prefer this option as some with the exception of software related to storage and server equipment. See the revised RFP, page 10 for revised purchase the hardware in one month/quarter and the SW in a following month/quarter for restrictions. budgetary reasons. Some customers have realized, after the fact, that they should have purchased SW options at the time of the HW purchase. Maintenance (updates) is also generally offered as a down load only. Are these options still available as long as the SW is related to the hardware purchase?

3 MN WSCA-NASPO COMPUTER EQUIPMENT ANSWERS TO QUESTIONS 41 10 1G G. Restrictions – Pre-loaded Software. This requirement is more applicable to desktop, laptop, See the revised RFP, page 10 for revised restrictions on software. The following has been added: Software such as & tablet Bands. Band 5 Storage software solutions include preloaded software on the array middleware which is not always installed on the equipment, but is related to storage and server equipment (band itself. They also include server software and host agents, as well as related software for 4&5) purchased, is allowed and may be procured after the initial purchase of equipment. management and operation of the array. These are loaded and run on industry-standard servers or standard-based appliances provided by the participating entity. Restricting software on Band 5 to only preloaded software on the equipment purchased would severely limit operability, and/or make use of equipment impossible entirely. Because this requirement is not appropriate for Band 5 Storage, can it be removed?

42 10 1GA Subsection (a), Software, says that it must be pre-loaded. Why software must be pre-loaded, See the revised RFP, page 10 for revised restrictions on software. The following has been added: Software such as as long as the storage software relates to the storage equipment procured by the states from middleware which is not always installed on the equipment, but is related to storage and server equipment (band the vendor, and as long as the software cannot be used by itself without such previously 4&5) purchased, is allowed and may be procured after the initial purchase of equipment. purchased storage equipment? 43 10 3B2 EPEAT. Since this does not apply to the Band 5 Storage, can an N/A be added? The requirement notes that it only applies to applicable products. 44 11 1H In 1.H (Definitions), the definition for Acceptance states that the Purchasing Entity will “make See Revised RFP for revised definition and term. every effort to notify the Contractor within thirty (30) calendar days following delivery [of] non- acceptance of a Product or Service” and that the lack of notification within this timeframe deems the Product or Service to be accepted, and that acceptance testing is tied to the Contractor’s published specifications. In Section 2, Paragraph 28, it is stated that Acceptance Testing will be for 30 calendar days following installation, and that testing will be to an undefined “Standard of Performance” (i.e., not clearly tied to Contractor’s published specifications, and no provision is made for passive acceptance in the event that no notification is received by the Contractor.

45 12 1H Middleware is included in the definitions but the word not utilized within the RFP. Is See the revised RFP, page 10 for revised restrictions on software and includes middleware. Middleware is NOT a middleware considered a peripheral? peripheral. 46 12 1H In 1.H (Definitions), the definition for Partner states that “a company, authorized by the Contract See Section 3C items 2 & 3 regarding contract vendor responsibility and partner utilization. Vendor and approved by the Participating State”. Would we have to identify in this agreement, any companies that are currently authorized to sell our product or would any currently authorized companies be automatically considered eligible to sell against this agreement?

47 12 1H Definition of “Storage” is limited to hardware only. Can we include separately provided software See the revised RFP, page 10 for revised restrictions on software. The following has been added: Software such as ? middleware which is not always installed on the equipment, but is related to storage and server equipment (band 4&5) purchased, is allowed and may be procured after the initial purchase of equipment. 48 13 1 & 2 In the Definitions section on Page 13, states “Contract Vendors shall provide the warranty The Contract Vendor does not have to perform the actual break/fix services on third party products. The Contract service and maintenance for all peripherals on the Master Agreement. ” However, Page Vendor may assign the third party manufacturer’s warranty, but is ultimately responsible and will be the first point of contact, provide maintenance call numbers and assist the customer in engaging the manufacturer on warranty and 32, Section Warranty states, “For third party products sold by the Contract Vendor, the maintenance issues. Contract Vendor will assign the manufacturer or publisher’s warranty and maintenance. The Contract Vendor will provide warranty and maintenance call numbers and assist the customer in engaging the manufacturer on warranty and maintenance issues.” Please clarify whether the Contract Vendor has to provide the actual break/fix warranty services for third party products and peripherals? Or does the Contact Vendor only have to provide ways in which customers can reach third party products manufacturers for warranty service?

49 13 1H Can an option be purchased separately from the purchase of equipment to which it is added, or Options may be purchased separately from the purchase of the equipment to which it is added. For example, laptop do options have to be purchased at the time of purchase of the equipment? cases would be an option that could be purchased after the initial laptops were purchased. 50 13 1H Can separately provided software for storage equipment be considered an option? See the revised RFP, page 10 for revised restrictions on software. The following has been added: Software such as middleware which is not always installed on the equipment, but is related to storage and server equipment (band 4&5) purchased, is allowed and may be procured after the initial purchase of equipment. 51 13 1H Definition of “Software”. Does this definition include software that is not preloaded? (The fact See the revised RFP, page 10 which now states: Software must be pre-loaded or provided as an electronic link with that it specifies that it includes certain software that is preloaded does not in itself exclude the initial purchase of equipment. There has also been an allowance made for software related to servers and software that is not preloaded.) storage and now states: Software such as middleware which is not always installed on the equipment, but is related to storage and server equipment (band 4&5) purchased, is allowed and may be procured after the initial purchase of equipment.

4 MN WSCA-NASPO COMPUTER EQUIPMENT ANSWERS TO QUESTIONS 52 13 Definitions The definition states services are allowed related ONLY to the equipment and configuration of Each participating State determines restrictions and negotiates terms for services. The State may determineif the equipment purchased through the resulting contracts. Can services be provided on products services are allowed for products previously purchased via the WSCA-NASPO Computer Equipment contract. previously purchased via the WSCA2 or WSCA3 contract? 53 13 G This section states that vendors may offer services related only to equipment purchased No. Per the restrictions, services must be related to procurement of equipment on the contract or previous WSCA through the resulting contracts. Respondent respectfully requests that services could be Contract if allowed in the a Participating State's Participating Addendum with limits to be addressed by each state. available for equipment that may have been purchased under another contract, but is within the Specifically the following services are not allowed: Wireless, internet, cloud, managed on-site services, and managed scope of the contract? print services. 54 13 H The terms “consulting” and “professional services” are often used interchangeably in standard General consulting is defined on page 12. Each State has varying laws, rules, policies, and procedures surrounding IT industry service descriptions for the general which need adherence. Contract Vendors may offer, but participating States and entities do not have to support/implementation/deployment/configuration/assessment of IT equipment for a multitude of accept, limited professional services related ONLY to the equipment and configuration of the equipment purchased customers requesting IT services. Given that, will WSCA-NASPO allow this terminology to be through the resulting contracts. Examples of such services may include management and administration of IT accepted interchangeably on the contract? systems. Minnesota Statute section 16C.08 defines general consulting for the State of Minnesota. See link: https://www.revisor.mn.gov/statutes/?id=16C.08as 55 15 Section 2.A, 2.B, In the RFP Draft it was noted that current terms and conditions for the 2009-2014 Master Price It was NOT noted in the RFP Draft that current vendors terms and condition in the 2009-2014 Master Price 2.C Agreement would be accepted. If those terms in the current master are representative of terms Agreement would be accepted. Section 2 of the 2014-2019 proposal includes all Terms which apply to the relevant to availability of these requested commercially available manufacturer products and procurement. Previous terms do not apply to this procurement. Any exceptions to terms must be noted in the services than for certain elements within Section 2.A, 2.B and 2.C, can a Respondent note response utilizing the Exception form. Per the evaluation instructions, Responders who accept all terms receive full these exceptions in the exception form and highlight that these are current terms without risk of points. As indicated in the RFP, points will be awarded based on the level of acceptance of the State’s terms and being disqualified or impacting evaluation points? conditions as specified in this RFP. Acceptance of all terms and conditions will result in the award of the maximum points available. Responders should note that the State reserves the right to pursue negotiations on any exception taken. In the event that negotiated terms cannot be reached, the State reserves the right to reject the proposal. Responders should also note that the awarding of points does not automatically mean that the State has accepted the Responder’s proposed language. 56 16 2 Is there a preference where to place the signed Addenda within the proposal? Addendums may be included in the forms section,however, there is no preference. Clearly mark and tab. 57 16 2A Section 1 says that any suggestions for alternate language shall be presented, and Section 13 The assumption shall not be made that a previous Contract Vendor's negotiated terms will be accepted in this (page 18) says that exceptions that materially deviate from the RFP may be rejected. Are we solicitation. As indicated in the RFP, points will be awarded based on the level of acceptance of the State’s terms and allowed to propose the language from our current contract which was accepted by the State in conditions as specified in this RFP. Acceptance of all terms and conditions will result in the award of the maximum 2009, without fear of the alternate language being judged “materially deviating” from the current points available. Responders should note that the State reserves the right to pursue negotiations on any exception RFP? taken. In the event that negotiated terms cannot be reached, the State reserves the right to reject the proposal. Responders should also note that the awarding of points does not automatically mean that the State has accepted the Responder’s proposed language. 58 17 2: A10 Is it possible to get the document in word format? Yes. A link to the word document is provided on Page 17, Section 2A: Item 10 59 18 2 Will hyperlinks be acceptable to provide additional details for a response or link to VPATs in No. VPATS are only required upon request for products. The VPAT form requested in the RFP is to be completed in order to reduce proposal size? relation to the website that will be offered. 60 18 2A16 Can you please provide a list of the point of contacts in attendance at the webinar. Click here for the Attendee List 61 18 2A17 Do all 4 hardcopies get delivered to the State of MN address? Yes. See Page 18 Section 2:A17 Proposal Preparation for details on how to submit the proposal. The response to this Request for Proposal (RFP) must be returned sealed with the cost proposal separated from the narrative response. All originals, copies and electronic files are to be submitted to: MN WSCA-NASPO COMPUTER SOLICITATION 50 Sherburne Avenue 112 Administration Bldg. St. Paul, MN 55155

62 18 2A17 Please confirm that if an offeror is bidding in more than one band, that a single submission A single narrative submission is allowed for all bands. Clearly identify which bands are being responded to in Section covering all bands proposed is expected vs. a separate proposal submission for each band. 3A1.

63 19 2A17 The comment not to include unnecessary binders yet the request to clearly tab and mark each Yes. section is confusing. We are planning to provide two binders: one for the Master Proposal and the second for the Cost Proposal (sealed separately). Each will incorporate section tabs. Will this be considered acceptable? 64 19 2A17 The RFP states “do not include unnecessary binders.” Does this mean you do not want the The State asks responders to be mindful of the expense and environmental impact of submitting proposals. Binders, submission in binders at all? If so, how would you prefer the proposals be bound? Or would you bounded or unbounded proposals are acceptable, however, please limit their use. prefer them unbound? 65 19 2A17 Vendor is instructed not to use “unnecessary binders.” Does this mean Vendor should not use The State asks responders to be mindful of the expense and environmental impact of submitting proposals. Binders, any binders, or just limit their use? bounded or unbounded proposals are acceptable, however, please limit their use.

5 MN WSCA-NASPO COMPUTER EQUIPMENT ANSWERS TO QUESTIONS 66 19 2A17 May the separately sealed and labeled cost proposal be shipped in the same container as the Yes. technical proposal? 67 19 2A17 The checklist and Proposal preparation Instructions seem to offer conflicting information (empty The Responder determines how to best present their proposal. Responses are to be prepared and presented clearly tabs, where forms must be placed, etc) In an effort to standardize response submissions and marked and tabbed. Responses are to be prepared and presented in the same sequential order as the questions are streamline review, we respectfully request that the State provide a detailed outline of how it presented in this document. requires proposals to be submitted. 68 21 2 “Service & Delivery” Does this refer to the contact information requested on page 43? Yes. 69 21 1 & 5 Instructions ask for a tab for each section 1 - 6. Sections 1 & 5 appear to require no vendor Sections 1 is Scope of Work. Section 5 is Evaluation. Responders may acknowledge they have read, understand response. Shall we simply insert a tab with no page after it or do you wish us to insert a page and comply to these Sections by inserting a tab acknowledging they have reviewed and understand these Sections. after the tab with words to the effect, no response required? 70 21 2A Is the Checklist to be included in the final RFP contract because it is part of Section 2 and if so, The checklist is for responder’s reference. It may be submitted with the response. does it need to be submitted with our response? 71 22 2B Is it correct that the Administrative Fee for the WSCA contract has doubled from the previous As stated in Section 2B1: The 2014-2019 WSCA-NASPO adminsitrative fee will be 1/10th of 1%. (.1% or .001) contract’s fee? (Current contract’s fee is one-twentieth on one percent – new contract says one- tenth.) 72 22 2B4 Assignment of Antitrust Rights: We respectfully request the following additional sentence to the See the revised RFP for revisions to this term. The second paragraph has been deleted. Assignments of Antitrust end of the first paragraph: Rights clauses are commonly used by state governments throughout the United States. Notwithstanding the foregoing, Contractor’s obligation of assignment is only to the extent the assignment is necessary for the State to overcome its State’s bar on indirect purchaser actions under federal anti-trust laws for claims of overcharges.

We respectfully requests the removal of the 2nd paragraph as it relates to subcontractors, in its entirety, on the basis the responder is the supplier of the products.

73 22 2B5 Is it correct that we need approval only from the WSCA Administrator – instead of from each The WSCA Administator does not intend to approve partner utilizations, but reserves the right to approve. An State as under the current WSCA contract – for use of subcontractors and partners? Do we individual State must approve all partner utilization. 2B5 addresses the assignment of the contract vs. Partner have to submit these partners as part of our Response? Utilization. See Section 3C2&3 regarding Contract Vendor Responsibility and Partner Utilization. 74 23 2B6 Cancellation: We respectfully request deletion of the last sentence “Cancellation of the Master See the revised RFP for revisions to this term. The last sentence now states: Cancellation of the Master Agreement Agreement due to Contract Vendor default may be immediate”. The Contract Vendor should be due to Contract Vendor default may be immediate if defaults cannot be cured as allowed per Default and Remedies offered a reasonable period for an opportunity to cure, as specified in Section 9 Defaults and term. Remedies. 75 24 2B9b We respectfully request that the period for cure be changed from 15 calendar days to 30 See the revised RFP for revisions to this term. The cure period has been changed to 30 days. calendar days. 76 24 2B10 Delivery: We respectfully request modification to the delivery section on the basis once the See the revised RFP for revisions to this term. product is delivered risk of loss is no longer within Contract Vendors control. 77 24 10 Section 10, Delivery – Second last sentence in the paragraph – what is the “specified amount”? See revised RFP.

78 24 2B10 The last two sentences of Section 10 (Delivery), starting with “Any order…,” are confusing and See revised RFP term. Additional delivery charges will not be allowed for back orders. not clear as to their meaning and intent. Please clarify? 79 25 2B14 In Paragraph 14 (Indemnification – Intellectual Property), the Contractor provides an indemnity Intellectual Property does not have a specfic defnition in this contract but is defined in the customary use. for claims of Intellectual Property infringement. What is the definition of Intellectual Property?

80 25 2B14 Would WSCA consider deleting sections 1(b), 1(c) and (20), and substituting language provided This term has been deleted. See Section 2C17 for revised term. by the responder. 81 25 2B13 & 14 Indemnification: We respectfully request modification to this section advising the general 2B13 & 14 has been deleted. See Section 2C17 for revised term providing a single indemnifcation clause. indemnification should be limited to 3rd party claims that result from Contractors negligence or willful misconduct. The Buyer has other sufficient rights specified under the contractor in the event of a Contractor non-performance 82 25 2B13 and 2C17 Would WSCA consider replacing paragraphs 13 and 17 with a single Indemnification clause 2B13 has been deleted. See Section 2C17 for revised term providing a single indemnification clause. that includes an actual limitation of liability clause as follows? 83 25 2B17 We respectfully request modifications to the Insurance requirement that align with the current A change will not be made to the term. Page 77, Section 5: Evaluation Process states: Points will be awarded based insurance industry standards and our standard Insurance Certification. on the level of acceptance of the Terms and Conditions as specified in this RFP. Acceptance of all terms and conditions will result in the award of the maximum points available. Responders should note that the State reserves the right to pursue negotiations on any exception taken in Phase III. Responders should also note that the awarding of points does not automatically mean that the State has accepted the Responder’s proposed language.

6 MN WSCA-NASPO COMPUTER EQUIPMENT ANSWERS TO QUESTIONS 84 25 2B17 Would WSCA be willing to modify the insurance clause? A change will not be made to the term. Page 77, Section 5: Evaluation Process states: Points will be awarded based on the level of acceptance of the Terms and Conditions as specified in this RFP. Acceptance of all terms and conditions will result in the award of the maximum points available. Responders should note that the State reserves the right to pursue negotiations on any exception taken in Phase III. Responders should also note that the awarding of points does not automatically mean that the State has accepted the Responder’s proposed language.

85 25 2B19 License of Pre-Existing Intellectual Property: We respectfully request replacing this section its This term has been deleted. See 2B30 for revised term regarding Title of Product. Custom services will be addressed entirety provision which represents that each party shall retain its intellectual property rights. by each State individually in their Participating Addendum This Master Agreement is for commercially available products and services, and does not include any “work for hire” or custom deliverables. 86 25 2B19 Will WSCA consider deleting Clause 19, or, in the alternative, permit bidders to offer exceptions This term has been deleted. See 2B30 for revised term regarding Title of Product. and alternative terms in their proposals without penalty under Section 5: Evaluation Process?

87 25 2B19 If by “Intellectual Property, WSCA means “Software”, would WSCA consider substituting a This term has been deleted. See 2B30 for revised term regarding Title of Product. clause provided by the responder in lieu of the original? 88 26 2B19 & 2B30 If the IP licensing provisions to not comport with the licenses available from the manufacturer Term 2B19 has been deleted and 2B30 revised. See Section 3D7 which states: Upon request the Software License for its products, should the manufacturer provide its EULA for inclusion as a term and condition Agreement is to be presented to the ordering agency at the time of quote. Each State will negotiate license of the Master Agreement? agreements. 89 26 2B19 & 2B30 If the Contract Vendor is unable to obtain the written consent of the manufacturers of Third Term 2B19 has been deleted and 2B30 revised. See Section 3D7 which states: Upon request the Software License Party Products to the licensing terms specified in this section, may the Contract Vendor provide Agreement is to be presented to the ordering agency at the time of quote. Each State will negotiate license the Third Party Product Manufacturer’s EULA for such products instead? agreements. 90 26 2B19 & 2B30c By selling Products with pre-loaded or COTS software, a Manufacturer and CV is granting an Term 2B19 has been deleted and 2B30 Revised. The intent is to purchase COTS or pre-loaded software, and not implied license to use and resell the Products under patent law. Furthermore, under the lead-in purchase customized work products. However, each State is able to determine if customized services are purchased paragraph of Section 2-B.30, the manufacturer grants an express license to any embedded utilizing the contract and may determine the terms and conditions related to those services. software. Elsewhere in Section 2-B.30, however, WSCA requires ownership of software as work product. Please confirm this requirement’s intent (i.e., to purchase COTS or pre-loaded software, and not purchase customized work product).

91 26 2B20 No Waiver of Sovereign Immunity: We respectfully request that this be restricted to Sovereign See the revised RFP for the revised term. Immunity Only. 92 26 2B22 Participants: We respectfully request an additional clarification to include the Lead State Obligations under this Master Agreement are limited to the Participating States who have signed a Participating regarding obligations under the Contract. Addendum where contemplated by the solicitation. Financial obligations of Participating States are limited to the orders placed by the departments or other state agencies and institutions having available funds.

93 26 2B24 Payment: We respectfully request a modification to the payment requirement, deemed This term will remain. Page 77, Section 5: Evaluation Process states: Points will be awarded based on the level of reasonable in particular for orders of multiple commercial line items that a purchaser may acceptance of the Terms and Conditions as specified in this RFP. Acceptance of all terms and conditions will result in require on different shipment dates over a period of time. These modifications are in alignment the award of the maximum points available. Responders should note that the State reserves the right to pursue with what is allowed under the current contract. negotiations on any exception taken in Phase III. Responders should also note that the awarding of points does not automatically mean that the State has accepted the Responder’s proposed language.

94 27 2B26 Records Administration and Audit: We respectfully request modifications, based on the This term will remain. See Page 77, Section 5: Evaluation Process states: Points will be awarded based on the level products contained in this Contract are available on a fixed price basis, limiting audits to non- of acceptance of the Terms and Conditions as specified in this RFP. Acceptance of all terms and conditions will confidential and non-proprietary verification of invoices, orders and shipments. result in the award of the maximum points available. Responders should note that the State reserves the right to pursue negotiations on any exception taken in Phase III. Responders should also note that the awarding of points does not automatically mean that the State has accepted the Responder’s proposed language.

95 28 2B27 Under Reports, for reporting, both Summary Sales Data and Detailed Sales Data reports, it See the Revised RFP. The due dates have been revised to last day of the month and/or last day of the quarter states it is due 30 days after calendar quarter end. Often times, within State and Local throughout the RFP with regard to reporting. Government and Education, they state 30 days after calendar quarter end, yet also state dates, which truly represent the last day of the month following calendar quarter end. Which is the intent under this RFP? If the latter, can the verbiage be changed to state, “shall be due no later than the last day of the month following the end of the calendar quarter (as specified in the reporting tool)”? Currently the tool doesn’t list due dates for clarification.

7 MN WSCA-NASPO COMPUTER EQUIPMENT ANSWERS TO QUESTIONS 96 28 2B27C Employee Purchase Program. If a Vendor has a standard Employee Purchase Program that is Yes. Final details and terms of Employee Purchase Programs will be determined by each State in their participating not part of any Government contract and therefore would not be included as part of this contract addendum. terms subsequently reporting, but is simply a Standard Manufacturer Program for all Federal, State and Local Government Employees can the Vendor note that program?

97 28 2B28 & section 1 Will WSCA consider replacing paragraph 28 with language substantially to conform to the See the revised term and definintion in the revised RFP. Terms in Section 2 are applicable to the Master Agreement. Definitions definition of Acceptance? Is this Paragraph 28 in Section 2 only applicable if contained in a Participation Addendum? 98 28 2B28 Standard of Performance: We respectfully request the replacement of this provision in its See the revised term and definintion in the revised RFP. entirety with Contract Vendor’s standard warranties on the basis the Products and Services are commercially available and do not include custom products. 99 28 2B29 Sytem Failure or Damage. We respectfully request the removal of this provision in its entirety. The term has been revised . "Best Efforts" has been changed "commerically reasonable efforts" It is a subjective bar to expect from a Contract Vendor, particularly where the failure or damage may only be caused in part by Contract Vendor performance. 100 28 2B29 Can the Lead State clarify whether the manufacturer expected to restore a system to The term has been revised . "Best Efforts" has been changed "commerically reasonable efforts" operational capacity assuming products are under a current maintenance contract? 101 28 2B30 It is an industry standard practice for software to be licensed to an end user without the right to See the Revised RFP. 2B30 has been revised and no longer addresses the transfer of license agreement. If transfer transfer title to such license. In fact, resold products that are operating without properly were to occur, the participating entity will negotiate with the Contract Vendor. licensed software are considered grey-market goods. Manufacturers typically do not provide maintenance services for grey market goods. With permission, manufacturers may authorize a transfer of software title to a new end user, but records must be kept of such transfer so that the new end user is not denied access to maintenance services. Would the Lead State consider adjusting the transfer requirement to be subject to manufacturer authorization, which shall not be unreasonably withheld?

102 28 2B30 We respectfully request the replacement of this entire section with what is commercially See revised RFP. 2B30 has been revised and no longer addresses the transfer of license agreement. If transfer were reasonable and standard for the acquisition of standard commercially available products. to occur, the participating entity will negotiate with the Contract Vendor. Term 2B19 has been deleted. Intellectual Ownership of IP is covered in section 19. Property is now addressed in Term 2B19 and 2C17 103 28 2B30 Would WSCA consider clarifying the various rights covered by this clause by substituting See revised RFP.2B30 has been revised and no longer addresses the transfer of license agreement. If transfer were Clause 30 with language substantially? to occur, the participating entity will negotiate with the Contract Vendor. Term 2B19 has been deleted. Intellectual Property is now addressed in Term 2B19 and 2C17 104 29 2B32 Warranty: We respectfully request the removal of this section in its entirety, replaced with the Warranty Term has been revised. Page 77, Section 5: Evaluation Process states: Points will be awarded based on Contract Vendors standard warranty made available with these commercially available products the level of acceptance of the Terms and Conditions as specified in this RFP. Acceptance of all terms and conditions and services will result in the award of the maximum points available. Responders should note that the State reserves the right to pursue negotiations on any exception taken in Phase III. Responders should also note that the awarding of points does not automatically mean that the State has accepted the Responder’s proposed language.

105 29 2B32 To clarify the contract warranty requirements would WSCA be willing to substitute paragraph 32 Warranty Term has been revised. Page 77, Section 5: Evaluation Process states: Points will be awarded based on with language provided by the responder? the level of acceptance of the Terms and Conditions as specified in this RFP. Acceptance of all terms and conditions will result in the award of the maximum points available. Responders should note that the State reserves the right to pursue negotiations on any exception taken in Phase III. Responders should also note that the awarding of points does not automatically mean that the State has accepted the Responder’s proposed language.

106 29 2B32 Please describe the special purposes, if any, identified in this solicitation for which the Product Warranty Term has been revised. Page 77, Section 5: Evaluation Process states: Points will be awarded based on must be warranted. the level of acceptance of the Terms and Conditions as specified in this RFP. Acceptance of all terms and conditions will result in the award of the maximum points available. Responders should note that the State reserves the right to pursue negotiations on any exception taken in Phase III. Responders should also note that the awarding of points does not automatically mean that the State has accepted the Responder’s proposed language.

107 29 2B32 Please describe the mechanism by which it is anticipated that a Purchasing Entity will apprise Warranty Term has been revised. Page 77, Section 5: Evaluation Process states: Points will be awarded based on the Contract Vendor of a special purpose for which it is intending to use Purchased Product? the level of acceptance of the Terms and Conditions as specified in this RFP. Acceptance of all terms and conditions For example, must such special purpose be called out as a purpose? Must the special purpose will result in the award of the maximum points available. Responders should note that the State reserves the right to be expressed in writing? pursue negotiations on any exception taken in Phase III. Responders should also note that the awarding of points does not automatically mean that the State has accepted the Responder’s proposed language.

8 MN WSCA-NASPO COMPUTER EQUIPMENT ANSWERS TO QUESTIONS 108 30 2C2 If a vendor has VPATs available our products, will attaching the VPAT’s be sufficient or must The term has been revised. The RFP is requesting WCAG VPAT for the website provided in response to the RFP. vendors complete the VPAT forms on Page 50-56. If not, please clarify how you would like For products offered, VPATS are only to be provided upon request. Per the Accessibility Standard language the vendors to address the many ways an operating system is different from a website and what State is NOT requesting VPATS on all products offered in the response, though “upon request of the Lead State or elements of the WCAG guidelines they believe are applicable. Participating Entity, the responder must make best efforts to provide”, per the language in the Solicitation. Responder’s are required to complete WCAG VPAT for the Website they will offer in response to the Website Requirements defined in the solicitation. The WCAG VPAT will be a scored item as outlined in the evaluation.

109 30 2C2 It notes, Responder to provide completed VPAT forms found in the FORMS section of the RFP. The term has been revised. The RFP is requesting WCAG VPAT for the website provided in response to the RFP. This section is noted as a WCAG report. Due to the large volume of products offered if a VPAT For products offered, VPATS are only to be provided upon request. Per the Accessibility Standard language the is required, can the Respondent provide only for the products requested in the Cost Summary State is NOT requesting VPATS on all products offered in the response, though “upon request of the Lead State or Sheets for evaluation purposes if the Respondent has these accessible and available to Participating Entity, the responder must make best efforts to provide”, per the language in the Solicitation. procuring agencies? Responder’s are required to complete WCAG VPAT for the Website they will offer in response to the Website Requirements defined in the solicitation. The WCAG VPAT will be a scored item as outlined in the evaluation

110 30 2C3 Administrative Personnel: If a current Contract Vendor currently has approved language that No. This is a new solicitation. As indicated in the RFP, points will be awarded based on the level of acceptance of the ties a portion of this clause to the Primary Account Representative assigned, should this be State’s terms and conditions as specified in this RFP. Acceptance of all terms and conditions will result in the award noted in the exception document without risk for disqualification? of the maximum points available. Responders should note that the State reserves the right to pursue negotiations on any exception taken. In the event that negotiated terms cannot be reached, the State reserves the right to reject the proposal. Responders should also note that the awarding of points does not automatically mean that the State has accepted the Responder’s proposed language.

111 30 2C5 Contractor understands the requirements of the Rehabilitation Act of 1973 as it relates to It is the responsibility of the responder to comply with term 2C5. Information Technology and has VPATs available for its products. Please explain how the ADA applies to Information Technology “products” provided under the Master Agreement as that term is used in 2 C 5. 112 30 2C5 Can the Lead State please clarify that responders (as opposed to their products) should comply Products must comply with requirements of the term 2C5. with non-discrimination requirements of the ADA. 113 30 2C6 Can the Lead State describe a situation in which this clause 2C6 will come into play so that we An example could be a product is purchased from the Contract. The entity awards another vendor to service the can better understand the intent of the provision? product. The contract vendor shall cooperate fully in all such cases. 114 30 2C7 Can the Lead State describe a situation in which this clause 2C7 will come into play so that we An example could be computer equipment and services are provided by the Contract Vendor. The current Contract can better understand the intent of the provision? Vendor's contract is expiring and a successor has been awarded. The current and succeeding Contract Vendor shall cooperate fully in all such cases. 115 31 2C9 Please clarify the difference between paragraphs 1 & 2 (pg 31, 32), and clarify the use of action Item 9 states a formal process will be developed for Change Requests. The Action Request Form provided in the request form and log (Exhibit D) Section 6: Exhibit D is the process developed for changes. The State is requiring a quarterly submittal process of change requests, however, may approve interim requests on a case by case basis. 116 32 2C14 Please provide the citation and statutory requirement for contractor indemnification under There is no statutory requirement for the indemnification for data practices. Minnesota Government Data Practices Act, Minn. Stat. Ch. 13. 117 32 2C13 HAZARDOUS SUBSTANCES: This section states that to the extent that the goods to be Copies may be provided via an electronic link with the delivery. supplied by the Contract Vendor contain or may create hazardous substances, harmful physical agents or infectious agents as set forth in applicable State and federal laws and regulations, a Material Safety Data Sheets regarding those substances must be included with each delivery. Vendor does not provide a MSDS with shipment; instead we offer MSDS online. Is this acceptable to be noted without being considered as an exception?

118 35 2C25 Can a guideline to the award of preferences formula be formally stated? See the following link for MN policies on applying preferences: http://www.mmd.admin.state.mn.us/pdf/purchasingpolicy35.pdf 119 35 2C25 We are a Women Business Owned registered entity as defined by the Code of Federal To be considered for a Targeted Group (TG) Vendor Preference in the State of MN (Woman Owned would fall under Regulations Title 49 Part 26. The State of New Mexico, where Advanced Communication this category) see page 35, item 25. Eligible TG businesses must be currently certified by the MN Materials provides it’s services, recognizes minority and women owned business preferences. Will Management Division prior to the bid opening date and time. In addition, responders may describe all experience and consideration of this status be made in the evaluation process and can a statement instructing capacity to meet minority and women business enterprise and other local purchasing preferences in Section 3A13. request for proposal responders how to properly submit their status be incorporated into the RFP? 120 37 2C32 32. TRADE SECRET/CONFIDENTIAL INFORMATION. Should be #34. #32 = State Audits Numbering error has been noted. 32: TRADE SECRET/CONFIDENTIAL will be renumbered to 34.

9 MN WSCA-NASPO COMPUTER EQUIPMENT ANSWERS TO QUESTIONS 121 43 FORMS With regards to the contact information requested in this section, if an OEM is utilizing partners The primary contact must be from the Manufacturer. for order fulfillment, invoicing, etc. would this form include the information for each partner that will be part of the authorized reseller group? The Primary contact would be someone from the OEM. 122 43 FORMS SAVINGS REPORT: Is the savings report part of the response or for after award? Also request Estimated savings should be included as part of the response. Responder may qualify and explain how they derived that this be changed to read Master Agreement Prices Average: ____ % less than the price the savings percentage. quoted to SLED customers with contracts of similar terms and conditions. 123 44 Forms Contract Savings. Is the Savings an average for the State of Minnesota Sales or overall The savings indicated should be a percentage savingsparticipating entities will realize over the prices quote to the Contract Sales? general public. 124 44 forms Contract Savings. If the Average Savings is Based on the Overall Contract, can a Vendor also Yes. But an estimated average for all sales should also be provided. provide a breakdown by Band? 125 50 Forms Is the WCAG report to show how the contractor website conforms to WCAG 2.0 level AA Yes. requirements? 126 50 FORMS Why is it that the MN Web Content Accessibility Guidelines appear to exceed the Federal Minnesota has adopted both WCAG 2.0 AA and Section 508, including all section 508 standards, which includes Section 1194.22 Web-based Internet information and applications? Federal Section 1194.22 127 50 FORMS WCAG: As an OEM, we provide VPATS for all products. Please advise for pages 50 to 57 are Responder are not asked to complete these pages for products bidding only the website they are offering. Pages 50- we to answer these questions and if yes with regards to which product. Or are we to provide 57 detail WCAG VPAT for which the responder is complete and submit with their response regarding the website the VPATS for the products bidding? offered if awarded a Contract. 128 50 VPAT Because WCAG 2.0 does not apply to most aspects of products, non-user interface aspects of Responder are not asked to complete these pages for products bidding only the website they are offering. Pages 50- platforms, or user interface components as individual items, how does this RFP want the vendor 57 detail WCAG VPAT for which the responder is complete and submit with their response regarding the website to respond and apply WCAG 2.0 (Level A or AA) to hardware products in the requirements for offered if awarded a Contract. the WCAG VPAT? 129 59 3A1 If we do not currently manufacture products in a band, but begin to in the future can a new band No. The responder must currently manufacture a product in the bands proposed. be added then? 130 59 3A3 It states this is mandatory, not all OEM’s offer 3rd party products and if we are not offering would Even if a responder is not offering 3rd party products they must agree to adhere to this requirement in the event 3rd this question still be required to be answered? The answer would be no as products would not party products are added in the future. be offered and want to ensure this would not reflect negatively on the response. Request this be amended to M if third party products are offered. 131 59 Section 3 Vendor is instructed to describe fully and provide detail how its proposal satisfies each item of Responders are to determine how to present the information in a clear and organized manner. It is important that the this section. Should Vendor insert a table row below each item and provide the responder describes fully HOW they can meet each requirement. description/detail in that row, or should Vendor provide the descriptions/details for all items together, at the end of this section after the tables provided in Sections A through D?

132 59 Section 3 Is a narrative response on how Vendor’s proposal satisfies an item required for each item in the Describe fully how the responder can meet EACH requirement, which includes mandatory and non-mandatory. table, or only those items marked as mandatory (M)? 133 60 3:A5 Is there a minimum number of products we need to provide to get on the contract? No. Responders must be able to meet the requirements of the RFP and will be evaluated on, including but not limited to the base equipment market basket items for each Band. Related peripherals/options/accessories and services may be considered in the evaluation. Responder is also required to provide a suggested product and services schedule which will be negotiated upon final award.

134 60 3A5 RFP states that any updates to a Vendor’s PSS will be handled only on a quarterly basis. It is preferred that changes are made quarterly to the PSS. A State would be allowed to request a new sku if needed Historically, many states verify skus on each purchase order against the PSS. As most PC in the interim. It is understood that the baseline price list changes frequently, however the discounts must remain the MFG skus change on a very frequent basis, quarterly updates may impede the State’s ability to same or be increased. This will allow the State to verify the sku on the PSS posted is on the current baseline pricelist release a purchase order. How does WSCA recommend States verify skus if the skus only are and that it meets or exceeds the discount provided. updated quarterly? 135 60 3A5 PSS updates are stated as quarterly. To account for new products and volume threshold It is desired that PSS updates are submitted quarterly. The Master Agreement will consider special circumstances for discounts, can the frequency of the requirement be changed to monthly? This will enable new products and reduced pricing. Entities to benefit from the availability of newer products and lower pricing more quickly. 136 60 3A6 What is expected of the Manufacturer in support of third party products? See Section 2: Warranty Terms. The manufacturer is expected to assist the customer in obtaining warranty passed through from the third party manufacturer. 137 60 3A6 Request this be for the OEM products only and a separate item be included for OEM’s that will The responder is not required to offer third party products. This requirement asks the responder to describe how the propose third party products. Not all OEM’s offer 3rd party products. warranty is provided for all products and services provided. 138 61 3A11 What entity or entities will conduct the third-party audits? It is unknown which entities will conduct third party audits. Audits conducted will be up to each participating entity.

10 MN WSCA-NASPO COMPUTER EQUIPMENT ANSWERS TO QUESTIONS 139 61 3A11 What controls are available in eMarket Center to assist the Auditor and CV to ensure products Every user must register and be approved under the executed Participating Addendum and each user has preset and services are purchased from the correct corresponding Participating Addendum with roll-up permissions to only view products and services corresponding to the executed Participating Addendum to the correct corresponding Master Agreement? 140 61 3A11 What reporting mechanisms does the eMarket Center provide to satisfy that aspect of the The State and/or emarketcenter coordinator will work with vendors upon award. Auditing requirement? 141 61 3A13 Please advise what the percentage requirements are for these programs and confirm if they are There are not percentage requirements. Item 13 asks the Responder to describe their experience in working with mandatory for each state. varying preference programs. 142 61 3A7 Will it be required to participate in leasing in order to receive a contract award? No. 143 61 3A8 Delivery. If a Respondent holds a current contract, can the current delivery clause be provided Previous contracts or contract language are not applicable. The responder may describe how they will meet the and included in this section if is the similar and meets the requirements of this section? requirement in this section. As indicated in the RFP, points will be awarded based on the level of acceptance of the State’s terms and conditions as specified in this RFP. Acceptance of all terms and conditions will result in the award of the maximum points available. Responders should note that the State reserves the right to pursue negotiations on any exception taken. In the event that negotiated terms cannot be reached, the State reserves the right to reject the proposal. Responders should also note that the awarding of points does not automatically mean that the State has accepted the Responder’s proposed language.

144 62 3A14 Not all OEM’s sell direct and therefore they may only be able to contract with the states that This is unknown. allow partner participation. In order to answer this question, please provide the list of the states and whether or not they will allow for partners to fulfill on behalf of the OEM. 145 63 2 Many customers purchasing under a resulting Master Price Agreement will not have absolute EPEAT Bronze is a mandatory requirement and has been in place since 2009 for these contracts and will remain. All requirements to only purchase EPEAT or Energy Star certified products. Limiting products in products offered for the Master Agreement with an EPEAT standard must have a minimum Bronze level. The only this RFP will impact use of the Contract for your customers and cause increased procurement exception to this requirement is detailed in the Restrictions section of the RFP. EnergyStar is listed separately from costs for your customers who have a need to purchase equipment that does not carry these EPEAT in the RFP. Responders are to describe their commitment to EnergyStar. certifications. Is WSCA willing to accept that a vendor will disclose the applicable EPEAT level or EnergyStar designation vs. limiting products available under the Master?

146 63 3:B2 Are we correct to assume that all products we submit must have EPEAT Bronze registration or EPEAT Bronze is a mandatory requirement. If EPEAT Standards exist for the product, EPEAT Bronze is required on is EPEAT Bronze "preferred" and not "required". the products offered. 147 63 3:B2 Is EPEAT Bronze a requirement for all products we submit? Yes. If there is an EPEAT standard for the product, it must have at least an EPEAT Bronze registration. 148 63 3:B2 Not all of our products are EPEAT registered yet. If we respond only to the desktop band, can No. we later receive authorization to add products in other bands (such as laptops, servers, etc.) as those products become EPEAT registered? 149 63 3B1 We do not manufacture equipment we solely refurbish and are an authorized reseller for A company that solely refurbishes equipment and does not own the trademark/patent does not qualify as a manufactures. In response to the 2009 RFP we received a letter back stating refurbished manufacturer and would be considered non-responsive. Refurbished equipment is offered by current contract equipment could not be proposed even though we could provide the specs required and vendors. Offering refurbished equipment is encouraged in the Environmental requirements under Section 3:B1. warranty. Has that changed at all? Is anyone providing refurbished equipment now and if so is it the mfg. or 3rd party? We would like to submit a bid if it is something you would consider given the economic climate. 150 63 3B1 ‘PRODUCT – In general how does the responder identify product longevity?’ Please clarify what Product longevity refers to the life span of a product. you mean by Product Longevity. 151 63 Section 3.B.2 EPEAT REGISTRATION. This section indicates that Responder agrees that applicable Band products and peripherals must have EPEAT registration if an EPEAT standard has been set for those products. products offered that have EPEAT Standards provided under the Master Agreements resulting Applicable EPEAT standards are to be met for all products offered. EPEAT Standards for printers were NOT in place from this RFP are to have achieved a minimum EPEAT Bronze registration. Is this in reference during the last contract solicitation. The EPEAT Standards for printers were announced in February 2013. to the Band products only or peripherals if applicable? For example the current contract does not require EPEAT Registration on Printers. Are Printers required to have EPEAT registration?

152 64 3C3 What reports are available in eMarket Center to assist the Contract Vendor to accurately track The State and/or emarketcenter coordinator will work with vendors upon award. and report sales of its products and services on the PAs, as well as its roll-up reports for sales on the MA? Will these reports suffice to completely address this requirement?

153 64 3D8 Will the use of the eMarket Center portal with uploaded Product and Service Schedule (PSS), No. accessible from a dedicated WSCA contract page provided by the Contract Vendor suffice to satisfy the requirement for a dedicated website specific to this contract?

11 MN WSCA-NASPO COMPUTER EQUIPMENT ANSWERS TO QUESTIONS 154 64 3D8 May the Contract Vendor make non-material user enhancements and security changes to the Yes. Non-material changes will be allowed. website without prior written approval (i.e., changes to improve speed, enhance usability, or implement security updates recommended by browser providers such as Microsoft, Apple, Google, or Mozilla)? 155 64 3D9 What costs are levied upon the Contract Vendor for the use of the eMarket Center? Is there a There is no cost to the awarded vendors. limit on the number of product and service line descriptions a Contract Vendor may list without additional cost? Is there a separate upcharge for uploading pictures with product and service line item descriptions? 156 64 3D9 Are software licensing, use, and maintenance included by Sci Quest? The question is unclear. There is no cost to the awarded vendors. 157 64 3D9 Is there a limit on the number of product and service line descriptions a Contract Vendor may No list without additional cost on eMarket Center? 158 64 3D9 Is there a separate upcharge for uploading pictures with product and service line item No. descriptions on eMarketcenter? 159 65 Please provide WSCA’s definition of Migration and Maintenance listed in this section Migration and Maintenance are to be described by the responder in this section for evaluation. 160 66 3:C5 For the required five (5) references, the statement asks for, “Contracts that have been in place References must be for Contracts that have been in place during the past three years. during the past three years .” Should vendors use references that have only had contracts in place for at least three (3) years, or references that have had contracts in place with a start date within the past three (3) years? 161 68 3D7 Can the COTS SW License Agreement be provided at time of delivery? In Section 3D7 it states it is to be provided "upon request". Each State may negotiated license agreements. 162 68 3D8 The VPAT has accessibility standards that are not necessary for the functioning of the required Certain standards in the VPAT for the WCAG 2.0 AA may not be applicable to a web site if the website does not web site. Will we be penalized in points for citing “not applicable” to the Accessibility standards have certain types of functionalities such as video or other multimedia. Responders may detail "Not Applicable" and during evaluation? explain the response. 163 68 3D8 Does this VPAT requirement pertain only to the functionality to support WSCA-specific content? The VPAT submitted is for the website to be provided upon award of the contract.

164 68 3D8 What is the procurement system that WSCA plans to hook up to SciQuest? (Ariba, Oracle, An awarded vendor will integrate a punch-out or hosted catalog with SciQuest's SelectSite. etc…) 165 68 3D8 What specifically are you looking for us to provide in the “Service Options, Service Agreements” The website could provide a description of the services available for participating entities who choose to utilize section? services. 166 68 3D8 Due to security and confidentiality requirements, we are not able to provide that personal The requirement does NOT state the responder must provide all information on the website. It does State in Section information such as “ship to” addresses, reprinting of invoices, or purchase order to all 3D8 that the responder is to provide a listing of items that require a secure sign in option. customers. Is WSCA willing to modify this requirement to be available via a secure sign-in option on our (vendor’s) website? 167 68 3D8 Can you please confirm that only non-Confidential portions of vendor’s response need to be Items marked confidential will only be protected from disclosure if such data is protected from disclosure under the posted on an awarded Vendor’s website, along with the signed Master Agreement, signed MN Data Practices Act, specifically Trade Secret as defined by M.S 13.37 subd 1(b). Review the Trade Secret Form Participating Addendum and the Master PSS, links to environmental certifications, online and all applicable information regarding MN Data Practices and the protection of Trade Secret Information. The product, pricing and configuration on state store pages that are accessible to all WSCA responder would need to provide justification that this information is deemed Trade Secret per Minnesota Law customers by State and online ordering and product information? utilizing the form provided. See section 3D8 for suggested items for the website. The responder will be evaluated based on the response, 168 68 3D8 What are the minimum requirements for the data presented on the website as well as The Responder must determine how to present their website. See section 3D8 for suggested items for the website. functionality to be considered acceptable? The responder will be evaluated based on the response, 169 68 3D8 Due to the large size of Vendor’s proposal response, will a Respondent be able to provide a It is desired the responder compress files to provide online for users. It is acceptable to provide upon request. copy of it upon request only, instead of posting the Vendor’s Proposal response on the website to comply with this section? 170 69 3D8 Do we have to obtain approval for ALL changes, including partner contact updates? This will be Yes, a notification of contact changes for partners is needed. Once partners are approved, the website may be very cumbersome since the partners have such high turnover. We understand that approvals changed to reflect without an additional approval. Effective management of partners is important to effectively market will be needed for pricelist updates or other materials changes. the contract. 171 69 3D9 The eMarket center requirements make perfect sense for bands 1 through 4 and 6. These are Yes. products that can be ordered off the shelf by the end user. Band 5, Storage, however, is a much more complicated purchase and cannot be configured by the end user. The intervention of a qualified pre-sales engineer is required to configure the product. Will the storage band OEMs be able to provide user instructions to Sci-Quest to fulfill orders as the eMarket center works today? 172 69 emc Not all OEM’s sell direct to customers, is an ecommerce site a mandatory requirement to hold a The responder is to provide information in regards to the website they will provide in the response. The website WSCA contract. Websites are available for information but not for processing. provided is not required to have ecommerce capabilities.It is a mandatory requirement to meet the WSCA-NASPO eMarketcenter requirements outlined in Section 3D9. Another ecommerce site is not required, but may be offered. Partners are able to accept payment on behalf of the OEM.

12 MN WSCA-NASPO COMPUTER EQUIPMENT ANSWERS TO QUESTIONS 173 69 emc Further electronic payments are requested, is this a mandatory requirement and are partners Section 3D11 ECOMMERCE requires the resonder to describe their ability in these areas, but is not mandatory. able to accept payments on behalf of the OEM? Partners are allowed to accept payment on behalf of an OEM as defined by the State in its Participating Addendum. See CONTRACT VENDOR RESPONSIBILITY & PARTNER UTILIZATION Section 3C2&3. Responder is required to meet the terms of the eMarketCenter Section 3D9. 174 70 4 This says that the “Contractor can receive orders through electronic delivery (cXML) or through If an order is placed via the eMarket Center, the only methods an order will be sent to an awarded/enabled vendor is low-tech options such as fax.” Is this a requirement to create an interactive online ordering site via fax or cXML. as a sole point of purchase, or can our electronic receipt of orders be accomplished via all of our traditional ways of accepting orders, including fax? 175 70 emc As not all OEM’s sell direct with regards to the Emarketcenter will the nominated partners to Yes, partners can be listed as fulfillment addresses on behalf on OEM, if partners are authorized to utilized in a fulfill on behalf of the OEM? Will the nominated partners be listed on Emarketcenter to fulfill State's Participating Agreement. No, the partners will not be enabled on the eMarket Center. orders? 176 70 Can the hosted catalog we are required to upload just be a static products and price list, or Hosted catalogs are designed for a full purchase/order of products from the catalog experience. does it require the ability to interactively purchase/order our products from this catalog?

177 71 7 Are we required to submit the UNSPSC code for all price list line items as part of our Response This is only a requirement for after contract award when working through the eMarket Center enablement. to the RFP, or is this only a requirement we need to meet after contract award, when setting up the SciQuest site? 178 72 4 Please clarify band vs category vs specific model. It appears the request is for a single The Bands are defined in the definitions section of the RFP. A manufacturer may name categories wihin a band in discount across the entire band, but then a request for discounts that would be available for order to provide different discounts. The manufacturer may name a specific model as a category. A category discount subgroups (categories) within the band. Are you asking for a range of discounts for the band - may apply to a model or group of models as defined by the responder in the Price Workbook discount tab. A discount i.e. Band 1 is 4- 20% or do you wish to see only the 4%, then when each model is listed, show must be named for each category/model. the actual discount offered for that model? 179 72 4 Are monthly pricelist update submissions allowed? It is desired that changes to the Product and Services Schedule are submitted quarterly. A vendor may propose to update monthly. 180 72 4:10 Also refers to section 3A16. The Premium Savings Package (PSP) program is marked here as, Contract Vendors are encouraged to participate in the Premium Savings Package (PSP) Program. It is not a “n/a for server storage vendors.” Would the State please confirm that declining to offer a PSP mandatory requirement. Responses to Section 4 Item 10 and 3A16 are evaluated with the full response, but are not a for products and/or services in the Server or Storage bands will not result in a refusal by the single determining factor in the award. Offering a product in a single band is not a determining factor in award. State or WSCA to grant MA options to the base 24-months, thus totaling a 36-month performance period? 181 72 4:11 What specific characteristics of other Promotional Offers differ from PSP program configuration Contract Vendors provide additional discounted pricing for the Premium Savings Package (PSP). PSP configurations discounts? are developed by a team of IT professsionals currently for a six month period of time. Promotions are products that a Contract Vendor may offer based on their inventory and sales and should be listed in the cost proposal and pricework book in the volume discounts tab. 182 72 4 When will final cost proposals be provided? Price Workbooks will be provided via an addendum. 183 72 4 Since the Cost Proposal Summary Sheets are not available, will an additional Question period Yes. The addendum will include a deadline for additional questions on cost. be available for the Cost Proposal once released? 184 72 4 Since the Cost Proposal Summary Sheets are not available, Respondent respectfully request a Samples of cost proposals were provided. Any changes to the bid due date will be provided via an addendum. 30-day extension or at the very minimum the amount of time from the bid release until the Cost Proposal Summary Sheets release to allow for completion due to the complexity and time required to complete this part of the RFP that is tied to 500 points for evaluation, allowing for a fair and competitive bid process for all Vendors? 185 72 4 The Sample Price Workbook Cost Proposal Sheets list Black & White and Color Printers only. The Price Workbook are market basket items to be utilized for comparison in evaluation. Other related peripherals Can other Related Peripherals such as Multifunction Devices, as well as Scanners be added to are allowed to be offered by a proposer and should be included in their proposed Product and Service Schedule to be the Cost Proposal Sheets? submitted with the response.

186 72 4 Can a Manufacturer offer multiple Brands of Printers and Multifunction Devices? The manufacturer may offer multiple brands of printers and multifunction devices on their Product and Service Scehdule (PSS). They must adhere to the Master Agreement restriction limit of $5000 per configuration. Final PSS will be negotiated with finalists. 187 72 4 Can more than one Manufacturer offer the same Brand of Printers and Multifunction Devices? It is possible for multiple manufacturers to offer the same brand of Printers and multifunction devices. The restriction limit of $5000 must be adhered to and the PSS will be negotiated with the finalists with the State.

13 MN WSCA-NASPO COMPUTER EQUIPMENT ANSWERS TO QUESTIONS 188 72 4 Our interpretation of Cost Proposal Items #2 and #3 is that the Price List submitted with the Per Section 4 – item 3 of the cost proposal: Responders are to describe how the designated price list will be Cost Proposal will be the Base Line Price List to be verified by potential end users. This Base accessed and verified by potential end users. All historic versions must be available upon request. Website Line Price List will be published and archived on the Vendor’s WSCA Web site for the life of the requirements Section 3D8 desires responders post the original price list and all historic versions on the website. contract. Is this interpretation correct? 189 72 4 When the final worksheets are released in an Addendum, will there be an opportunity to submit Yes. The addendum will include a deadline for additional questions on cost. questions regarding them, and if so, what is the timeframe? 190 72 4 BAND 5: Page 1 of 9. Should the discount value entered for each “ADDL CATEGORY:” reflect Enter the actaul discount provided. Per the example given, enter 15% the incremental discount for the respective category above the minimum discount for the band or should the discount value entered be the total discount for the category? For example, If the Minimum Discount for Band 5 is 10% and we have a category that can afford a 15% discount, what would we enter? Should it be 5% (which added to the 10% would equal 15%) or 15% (reflecting the total discount for that category)?

191 72 4 BAND 5: Page 1 of 9. Can any particular category discount be less than the minimum discount Yes. The RFP Cost Proposal Section 4 has been revised to clarify. The Contract Vendor will provide a MINIMUM for the band? This would allow vendors to propose certain products that would otherwise not discount with categorized exceptions off base line price list for each band. It is understood there may be categories be able to be included because they cannot be afforded the same discount as the majority within a band which carry a different discount than the minimum stated. For example, the minimum discount for the (95%+) of the items in the band. It would be restrictive to set the minimum discount at the laptop band could be 50%. The responder may name an additional category of laptops “Laptop Brand X” at 45% and lowest discount amongst all categories if that category only represents a small fraction of the “Laptop Brand Y” at 60%. Responder may categorize these exceptions by naming as categories and identifying the configuration. associated discounts in the price workbook. These discounts must remain firm, or the discount may be increased, during the term of the Master Agreement. This minimum discount and categorized exceptions will be applied to all “quantity one” procurements. It will also serve as verification for the WSCA Master Agreement Administrator upon submittals of product additions. An end user will be able to verify pricing using the base line price list and the minimum discounts with the categorized exceptions provided. 192 72 4 BAND 5: Page 1 of 9. Some vendors utilize third-party lessors for financing purchases. Should Yes, this is an option. Responder must determine how to provide response details and pricing. Each State will vendors include lease rates from third-party leasing entities if the vendor arranges the lease, determine if and how they will utilize a leasing program in their participating addendum. but is not the lessor on paper? 193 72 4 BAND 5:Pages 5 and 6 of 9. Some of the Configuration items listed for STB-1, ST0-1, and STB- Yes. Responders may include multiple part numbers to meet a configuration line item along with additional details. 2 require multiple SKUs with specific quantities to satisfy the requirement. Should the list of SKUs be entered into the single line with their corresponding quantities?

194 72 4 BAND 5: Pages 5 and 6 of 9. Some of the Configuration items listed for STB-1, ST0-1 do not Yes. Provide detailed explanation. have a specific SKU for the configuration. Instead, the requirements are included as a function or component of some other SKU listed in the Configuration column. Should vendors indicate “N/A” in the Manufacturer Part # column for configuration items that do not directly correspond to a unique SKU? 195 72 4 BAND 5: Pages 3, 5, and 6 of 9. Regarding items listed as requiring “Support” only (e.g., The Pricing workbooks have been revised. Use the yellow shaded portions of the workbooks to record part #s. “Controllers – Dual Controller Support”, “Storage Replication Support”, “Operating System – licensed and Supported”, “Operating System – Management Support”): the Minimum Requirements column indicates Yes or No or Specify as options for response. Support may be determined on a case-by-case basis and may be provided in a configuration. Question: If the support is available as an option but not required, should vendors include the Manufacturer Part # in the price of the respective spec # on page 3 of 9?

196 72 4 BAND 5: Question: If the support is available as an option but not required, should vendors The Pricing workbooks have been revised. Use the yellow shaded portions of the workbooks to record part #s. include the Manufacturer Part # in the price of the respective spec # on page 3 of 9?

197 72 4 BAND 5: Pages 5 and 6 of 9. For items listed with a Minimum Required Column response of The Pricing workbooks have been revised. Minimum requirements are clearly shown. If a yes or no answers is “Yes or No”, are these items required or will vendors’ be disqualified if a “no” response is required, no may not eliminate the response. provided? No implies we didn’t meet the Minimum Requirement. What is the intent of No? Should this be changed to Specify, which would be more appropriate? 198 72 4 BAND 5: Page 6 of 9. “Operating System – Snapshot” for STO-2 indicates a minimum See revised pricing work books. requirement of “12 drives”… This appears to be a typo since Snapshots have nothing to do with drives. Should this be changed to Specify, which would be more appropriate? 199 72 4 BAND 5: Page 9 of 9. Regarding ST-1, ST-2, S-3 and S-4 that ends with “… on desktop 1”. See revised pricing work books. This appears to be a typo since Desktop 1 does not apply to Band 5. Should this be changed to “….on STB-1”, which would be more appropriate?

14 MN WSCA-NASPO COMPUTER EQUIPMENT ANSWERS TO QUESTIONS 200 72 4 SAMPLE PRICE WORKBOOK: A minimum discount is requested for third party. Third Party Yes. Naming category exceptions allows responders to provide discounts that may vary from the minimum discount. Hardware and Third Party Software would have 2 different minimum discounts. Can Vendors For example, the minimum third party discount for the band could be 50%. The responder may name additional provide Third Party Hardware Minimum Discount and Third Party Software Minimum Discount. categories “third party hardware” at 45% and “third party software” at 60%.

201 72 4 SAMPLE PRICE WORKBOOK:A minimum discount is request for the band. If a Vendor has A responder has the option to name category exceptions that may have a higher or lower discount than that of the promotional items that are already discounted as a company and are not available for additional minimum discount provided for the band. Promotional items may also be listed in the Volume Discount Tab of the discounting, can a Vendor still offer these under the Band even though the promotional Price Workbook. See requirement 3A17 for additional detail on promotional items. category items would not be discounted? 202 72 4 SAMPLE PRICE WORKBOOK: Since Monitors and Printers are now included as a Peripheral Yes. A responder may name a category "peripherals" in a band and provide a separate discount. Each band allows a under each Band, will these be part of the minimum discount per band? Will you consider a minimum discount and the responder can name additional categories. If the responder manufacturers printers or minimum discount for peripherals monitors, a category could be named “printer” and/or "monitor" and a discount provided. If they do not manufacture monitors or printers, they could add as a third party category with a discount.

203 72 4 SAMPLE PRICE WORKBOOK: Minimum Discount is requested for the Band. Can a Vendor No. A minimum to maximum guarantee is not allowed. However, a responder may name categories exceptions to provide the Minimum to Maximum Guaranteed Discount for Quantity 1 for the Band? Since a allow for discounts that may be higher or lower than the minimum discount for the band. See revised Cost Proposal Minimum Discount is required, Vendors would be required to take the lowest discount in the which clarifies discounts and states: “The Contract Vendor will provide a MINIMUM discount with categorized Band as the Minimum, which would include the discount for peripherals? exceptions off base line price list for each band. It is understood there may be categories within a band which carry a different discount than the minimum stated. Responder may categorize these exceptions by naming as categories and identifying the associated discounts in the price workbook. For example a category could be named Peripherals with a discount that is above or below the minimum discount stated for the band.

204 72 4 As a current vendor, the Premium Savings Package Prices are available for Quantity 1, can A responder has the option to provide additional categories that may have a higher or lower discount than that of the those prices be used if noted in the workbook instead of the minimum discount price? minimum discount provided for the band. Promotional items may also be listed in the Volume Discount Tab of the Price Workbook. See requirement 3A17 for additional detail on promotional items.

205 72 4 Does the WSCA MN Contract issue “Discount Letters” (Best & Final) to the selected partners No, this is not a current process on the Computer contract. under each PA for additional discounts above the contract pricing like under the WSCA Data Communications contract? 206 72 4 With a contract addendum pending release, will the State consider extending the Q&A deadline The State reserves the right to issue clarifications or changes at its sole discretion if additional questions are posed to raise additional questions that may arise from the material presented in the addendum? which are determined to be a significant ambiguity, error, conflict, discrepancy, omission, or other deficiency in the RFP. 207 72 4 What is the difference between “Designated Baseline List” vs. “Product and Service There are two separate requirements: DESIGNATED BASELINE PRICE LIST: Per Section 4: Item 3: The responder Schedule”? We were planning to include the MSRP in the PSS adjacent to the net discount must designate a Base Line Price e.g. MSRP and describe how the designated Base Line Price List will be accessed (after contract pricing is applied) and verified. The Baseline Price list is to be submitted with the proposal. PRODUCT & SERVICES SCHEDULE: Section 4: Item 8 details the requirements for the PRODUCTS AND SERVICES SCHEDULE (PSS) which also must be submitted with the proposal. It is desired to have the Baseline Price List detailed in the PSS, however, both requirements must be submitted as separate documents with the proposal.

208 72 4 With respect to the market basket, if an offeror does not manufacture, or does not offer third If a manufacturer does not offer third party products they may leave the third party products blank. All offerings may party products corresponding to the peripherals listed in the market basket for each band, be considered in evaluation for award. should the offeror then leave these entries blank? Will this put an offeror selling a specialized product (e.g. ruggedized computers) that does not normally include peripherals (because they are not offered) at a disadvantage in the comparison process for pricing determination?

209 72 4 Sample cost proposal, desktops, desktop 1: For operating system, Windows 7 Professional 32- Yes, it is acceptable to exceed the minimum in the market basket specification. The Market Basket will be used in the bit is called for. Please confirm whether Windows 7 Professional 64-bit is also acceptable, or if evaluation or pricing. the intent is to request Windows 7 Professional 64-bit as an option or upgrade

210 72 4 Sample cost proposal, desktops, peripheral 3 and 4 (monitors: For monitor pixel policy, ISO- Price workbooks specs have been revised. If the proposed item meets or exceeds the specification, this is 13406-2 is called for. Please confirm that ISO 9241-307 is also acceptable as we understand acceptable. that this replaces the ISO-13406-2 standard. 211 72 1A Based on screen size as the primary attribute, we intend to bid our products in Band 2, Band 3, The award is based on band. Responder should respond to each band they are qualified in. An individual product and Band 6. However, all of our products are ruggedized models of specialized laptops / may be offered in more than one band. tablets. Is this the approach that WSCA expects, or, should we be bidding all of our ruggedized products in Band 6, regardless of screen size / laptop and tablet configuration?

15 MN WSCA-NASPO COMPUTER EQUIPMENT ANSWERS TO QUESTIONS 212 72 4 band 1 desktop Are all services offered on this page mandatory? Items such as as Image Consulting , general No. Responder may propose what services they will offer. States will determine services and if they will allow offered page 4 consulting are not something all OEM’s typically offer. Also please provide WSCA’s definition services. Definitions may vary among responders for installation and staging/deployment and responders should of staging/deployment, how does this differ from installation? provide a description on the 3 specification page. 213 72 4 band 1 desktop Break Fix-NonWarranty, is this a mandatory item? This is very difficult to provide due to the No. Responders are encouraged to provide options available as related peripherals and services and may be page 4 different cost structures for locations of equipment outside of warranty. There would be considered in the evaluation. different rates for different locations in addition there would be cost for parts. It would be impossible to respond to this request without all the information and request this item be removed. 214 72 4 band 1 desktop This requests a specific Intel processor. As these change rapidly suggest this be amended to The market basket establishes a minimum requirement for which the responder may propose a product that meets page 5 Intel Core i5 or higher to allow for replacements much easier or exceeds that specification. 215 72 4 band 1 desktop Are the options / Upgrades a manadatory requirement? If yes, not all OEM’s offer upgrades or No, options/upgrades are not mandatory. The scope of the contract is for computer equipment. However, responders page 6 sell 3rd party items. This would preclude some OEM’s from responding therefore we request the are encouraged to provide options available. Related peripherals/options/accessories and services may be options/upgrades be changed to optional for the response. considered in the evaluation. 216 72 4 Band 2 – laptop, Docking station or port replicator are required in specifications. Many laptops, ultrabooks etc., Responders are NOT required to provide options/upgrades/peripherals. Responders may provide pricing for page 5 & 6 no longer offer these and they can be purchased third party from a company such as targus options/upgrades/peripherals via a third party. Related peripherals/options/accessories and services may be that are universal. Request this requirement be removed. considered in the evaluation. 217 72 4 band 2 laptop Page 3 reflects options/upgrades/peripherals. Not all OEM’s offer upgrades to their standard It is NOT mandatory to offer upgrades. It is NOT mandatory to offer third party products. Related page 3 configurations, request these be optional. In addition, the OEM may not offer third party peripherals/options/accessories and services may be considered in the evaluation. products. 218 72 4 band 2 laptop 6-cell battery is required but the number of cells does not determine the battery life. Request to Review Revised Price WorkBooks for changes. page 5 & 6 specify a battery life requirement in hours or Whrs for the laptops. 219 72 4 band 2 laptop Pointing device on keyboard is not an item supported by all OEM’s. Request this be removed Alternate pointing devices are allowed page 5 & 6 or changed to optional. 220 72 4 band 2 laptop The requirement of One Type II PC card or One Express Card/54Slot adds significant cost and Reivew revised Price Workbooks for changesThe market basket specifications are a base specification for evaluation page 5 & 6 there are limited applications that use these products. Request these cards be purposes. A responder may offer a laptop without these items in their proposed product and service schedule. removed/replaced by the current standard to increase saving to customer and allow more laptops on the contract than would be able to if left as is specified. 221 72 4 band 2laptop Optical Drive is listed as mandatory when not all customers require. By listing this as a Reivew revised Price Workbooks for changesThe market basket specifications are a base specification for evaluation page 5&6 mandatory requirement the ultrabooks for business professionals that do not include on board purposes. A responder may offer a laptop without these items in their product and service schedule. will not be allowed to be offered. Request this requirement be removed to allow wider range of notebooks/ultrabooks to be offered 222 72 4 Band 3 – Tablet, Storage: consider moving this to 8GB due to the addition of SDRAM that may be purchased Review Revised Price WorkBooks for changes. page 5 separately and will add significantly to the storage capability, particularly with regards to Android Devices 223 72 4 Band 3 – Tablet, Would WSCA consider changing the tablet screen size to 7” to allow 7 and 8” offerings? Review Revised Price WorkBooks for changes. page 5 224 72 4 Band 3 – Tablet, Options: Charging doc, most tablets do not offer a charging doc, only a charger. Due to this This is NOT a requirement. Charging Doc is listed under optional items. page 5 request this requirement be removed. 225 72 4 cost proposal Large Format Displays are not specified or listed in the peripheral for pricing. These have been Large format displays are considered a peripheral and can be included in the Responder's proposed Product and part of the previous contracts and are important items for SLED customers. Some of the Services Schedules. Peripheral configuration limits are $5000 unless a State determines to raise or lower. A category solutions they provide are: Digital signage for bus dismissal systems; universities for classroom could be named "large format displays" in a band if it is desired to provide a separate discount for these items. assignments; emergency alert at school campus or city/local government; Conference room displays; interactive white boards, Digital menuboards in cafeterias, etc. Will there be a new category added? If not, how do we include the large format displays, accessories and extended warranties in the offer? Large format display is considered 32” and above.

226 72 4 Cost proposal Will WSCA consider an alternative format zero client that allows the use of an existing display Zero clients may be offered in the responder's Product and Service Schedule for consideration of inclusion to the Sheet – General asset (75mm or 100mm VESA standard display) to be mounted to the Samsung NB-NH zero contract. Band 1 includes zero clients and a separate category may be named in the discount tab to establish a request for client stand to create an “All-in-One” zero client? • Note: Samsung’s NB-NH places the separate discount if desired. The final product and service schedule will be negotiated with selected responder(s). addition of Zero chip set and connections in the base of the stand with the ability for add a 3rd party display to Client the unit to create an “All-in-One” zero client unit. The NB-NH will accept screen sizes from 17” to 27” and has the ability to produce 1920x1200 resolution in a dual screen configuration or 1900x1080 as a standalone single screen configuration.

16 MN WSCA-NASPO COMPUTER EQUIPMENT ANSWERS TO QUESTIONS 227 72 4 Item 9 Bulk Pricing: To meet the mandatory requirements of the question, does the responder need to The responder does not need to provide all three scenarios. The response is to include one or multiple options to provide an offer for all three (3) of the scenarios given (Per Transaction Multiple Unit Discount, provide additional bulk volume discounts. Quantity discounts may be a factor in the award of the pricing points. Cumulative, and Other Discounts), or may a vendor provide bulk pricing for at least one (1) of Responder may also describe promotions in response to Section 3D17. the scenarios? 228 72 4 peripherals, With regards to Thin Clients, Based on the published Market Basket Specifications, will WSCA Although thin clients are not asked for in the Market Basket, they may be provided on the Product and Services Displays accept a 21.5” zero client that is larger than specified with the 19” category that meets the requirements Schedule. Band 1 includes thin clients and a separate category may be named in the discount tab to establish a of Wide-Format WSXGA compatible? There are not any published specifications for thin clients in any separate discount if desired. of the categories and we are assuming the display specifications apply

229 72 4 Peripherals, The specifications for printers are for color and Mono. There are not specifications for MFP’s. The market basket specifications are for a color and mono printer. Market Basket specification are for pricing printers Please confirm the color and mono MFP’s must only meet the specifications as listed for the comparison and do not prevent a responder from providing additional MFPs in their proposed Product and Service printers. If not will new specifications for a color and mono MFP be added to the peripherals to Schedule. be offered? 230 72 4 Server Specs. There seems to be a requirement for two servers, the specs only describe one. There are mareket basket specification for two servers. See revised price workbooks.

231 72 4: 1&3 Education price list (page 72): does that refer to education entities making the purchase? Or The Responder must designate "Base Line Price List". One example/option suggested is to submit an established did you mean the WSCA list price, ie. the list price of the product or part number?? education price list.

232 72 band 2 laptop Hard drive is requested for these products at 7200 RPM HDD, request the minimum spec be Review Revised Price WorkBooks for changes. page 5&6 lowered to 5400RPM to allow wider range of product to be sold and lower cost to customers.

233 72 band 2 laptop This requests a specific Intel processor. As these change rapidly suggest this be amended to The specifications in the price workbook are a minimum base specification for evaluation purposes. A responder page 6 Intel Core i7 or higher to allow for replacements much easier may offer a variety of laptops in their product and service schedule. 234 72 band 2 laptop This requests a specific Intel processor. As these change rapidly suggest this be amended to The specifications are a minimum base specification for evaluation purposes. A responder may offer a variety of pages 5 & 6 Intel Core i5 or higher to allow for replacements much easier laptops in their product and service schedule. 235 73 4:3 Will cost proposals be provided in Microsoft Excel spreadsheet format? Yes, the price workbooks will be released in excel via an addendum. 236 73 4:3 A Baseline Price List is requested in an electronic copy and hard copy. Due to the enormous No, a copy of the baseline price list is needed with the response. If there are technical difficulties with the electronic size of a hard copy, where would this be included? Respondent would respectfully request file, a hard copy is required to be included with the response. electronic copy only to minimize the impact on the environment. 237 73 4:3 If a Respondent doesn’t have baseline price list available for custom services, will that eliminate A baseline price list is required. Custom Services are optional. those services from being available if the Respondent provides a competitive discount and offers a list price and contract price quote for auditing purposes upon request for the procuring entity? 238 73 4:3 Is the Baseline Price List required to be organized by Band? No. It is not required for the Baseline Price list to be provided by band. 239 73 4:3 Vendor understands that discounts must remain firm, but can the list price change over the Yes. course of the contract term? 240 73 4:3 Is the firm List price requirement only for the Manufacturer branded product, excluding third A firm price list is NOT required. The price list may change. The discounts provided in the price workbook must party software and hardware associated to the band since that would beyond Respondent’s remain the same or be increased. control? 241 73 4:8 Is the PSS discounts schedule/summary required to be organized by Band in the same format The PSS provided was a sample only. Per Section 4: Item 8: The products, services and format for the final PSS as outlined on page 126 of the PDF Sample? will be finalized during negotiations. 242 73 4:8 Do you require that the PSS also be provided in an Excel file that shows WSCA-NAPO pricing Yes. by line item (a pricelist) for each current product and service included in the bands?

243 73 4:8 Please clarify where in the RFP file an example is shown. Section 6: Exhibit E 244 73 4:8 It appears that only a sample Cost Proposal-Price Workbook was included. Is the PSS the No, the PSS and the Price Workbook are different. As stated in Section 4: Item 2: Final Excel Price workbooks will be same as the Cost Proposal –Price Workbook? published via an addendum. The Price WorkBook is the tool to be utilized for evauation. The PSS will show the responder's full offering and be negotiated upon final award. See section 4 for more details on what is to be submitted with the cost proposal which includes 1) Baseline Price List with specific date named in RFP 2) Proposed Products and Services Schedule 3) price workbooks for applicable bands proposed by manufacturer

245 73 4:8 The PSS “minimum discount” pre-calculated price point has historically been published For the purposes of this solicitation, the responder must name an established base price list, provide minimum publically on the current Contract Vendor's approved website. Currently the guaranteed discount and categorized exceptions for each band. These items may become part of the Master Agreements which minimum discounts are provided to procuring entities upon request for auditing purposes and is are public information. not published publically. Respondent respectfully requests that this option still be made available without being considered an exception.

17 MN WSCA-NASPO COMPUTER EQUIPMENT ANSWERS TO QUESTIONS 246 73 4:14 Trade In Program Pricing. When a product is traded in for a credit towards the purchase of new Responder must determine how to provide response details and pricing. Each State will determine if and how they product, the trade in value is based on many factors, including, but not limited to product age, will utilize a "Trade In" program. type, upgrades, warranty and quantity to name of few. In order to provide pricing, respondents would require more information. Is it the intent to only provide details on the Trade In Program due to the fact that pricing would not be available without more information?

247 73 4: Item 8 If the required PSS format includes a list price column, is WSCA willing to waive the No. The PSS and Baseline Price List serve different purposes and are two different requirements for the purposes of requirement for a baseline price list the RFP. Per Section 4: Item 3: The responder must designate a Base Line Price e.g. MSRP and describe how the designated Base Line Price List will be accessed and verified. It is understood the Basline price list fluctuates. All historic versions of the Baseline Price List must be made available upon request pursuant to the audit provisions. The dated Baseline Price List provided shall be used for completing the cost proposal when “List/MSRP” price is requested. Section 4: Item 8 details the requirements for the PRODUCTS AND SERVICES SCHEDULE (PSS). Responders must submit with their COST proposal a proposed Product and Services Schedule including all the products and services offered within each band in Excel format. A sample has been provided in the attachments for reference in section 6. Other formats are acceptable. The products, services and format for the final PSS will be finalized during negotiations.

248 75 Leasing. This section notes that if leasing is being provided to include rates. Leasing rates are Responders may provide current rates and available options. The responder may describe their lease program in based on the current market conditions which are subject to change. Vendors that provide a detail and how rates are set and determined. Each State will determine if and how they will utilize a Leasing Program. leasing option would typically provide a lease rate that is valid for 90 days and is subject to change after that time, until the equipment is accepted at which point the lease rate is fixed for the term of the lease. Lease rates can also be impacted by other factors such as monthly, quarterly or annual invoice requests, revenue volume tied to a specific configuration and quantity. Lease pricing is also dependent upon the structure selected; 1) Finance Lease, or 2) Operating Lease/ Fair Market Value True Lease (FMV). If lease rates are to be provided for the current 90 day period contingent on the current market conditions, what type of lease structure, frequency of payment invoicing, configuration and quantity should be utilized?

249 75 May lease rates provided for the bid response be valid for 90 days, since most procuring Yes, the responder may provide lease rates for 90 day or 180 days. The responder must determine how to present entities request 90 days, or should Respondents provide lease rates of 180 days, or both? Leasing Rates. Each State will determine if and how they will utilize a leasing program.

250 75 tradein With regards to this term it requests that if a trade in program is provided please provide The responder must determine how to present "Trade in" Program. Each State will determine if and how they will pricing. To provide pricing it is required to know what products are being traded in and the age utilize a trade in program. as well as the quality of the product. We have the ability to provide the program overview and request the pricing requirement be removed and amended to read that it will be provided upon receiving the information of the specific equipment to be traded in. 251 76 5 Is it necessary to include this section with our response? Responders may acknowledge they have read, understand and comply to this Section. 252 78 6 Is it necessary to include the sample Attachments (A-H) in our response? These files seem to Responders may acknowledge they have read, understand and comply to this Sections. be informational only. 253 79 Will the State of MN allow for the OEM contract to be fulfilled by the named partners? With This will be negotiated with each State in their Participating Addendum. regards to the other states, will they also allow the named partners to fulfill the order, shipping, invoicing obligations? 254 110 MODEL Respondent would respectfully request a sample Model Participating Addendum template with The Model Participating Addendum is a sample only and will be provided to States for their use. Since each State PARTICIPATING the Master Agreement to provide items to consider for those participating States or entities to varies greatly, the final participating addendum for each State may look quite different than the Model provided. ADDENDUM use as a basis for response. 255 111 MODEL Many of the eligible and procuring entities simply note the State PA number, WSCA-NASPO The Model provided is a sample only. Each participating state and/or authorized entity will negotiate the final PARTICIPATING MA number or even make their selection by simply noting WSCA or WSCA-NASPO on the PO. participating addendum with the selected Contract Vendor(s) ADDENDUM If this is mandatory to have exact language, this could impact order processing for many Vendors and the message to the hundreds of thousands of political subdivisions such as local and education agencies in a given State. Respondent would respectfully request this to be modified to indicate instead that a clear contract selection should be noted on the PO or confirmed via email or other form of writing if a contract number is not noted upon receipt.

18 MN WSCA-NASPO COMPUTER EQUIPMENT ANSWERS TO QUESTIONS 256 111 MODEL Is this (price agreement number) in conflict with 5.1? 5.1 states: ) Mandatory Language “PO The final ordering process will be negotiated with the participating State. The Model is a sample only and each State PARTICIPATING is subject to NASPO Contract # XXXXX” . Price Agreement number states: All purchase will develop a final Participating Addendum to be utilized and final language will be provided to the Contract ADDENDUM orders issued by Purchasing Entities within the jurisdiction of this participating addendum shall Vendor(s) when negotiating with the Participating State/Authorized participating entity. include the Participating State contract number: [insert appropriate number] and the Lead State price agreement number: xxxxx. 257 111 MODEL Mandatory Language “PO is subject to NASPO Contract # XXXXX” - should that be WSCA- Yes. The Model is a sample only and each State will develop a final Participating Addendum to be utilized and final PARTICIPATING NASPO? language will be provided to the Contract Vendor(s) when negotiating with the Participating State/Authorized ADDENDUM participating entity. 258 111 MODEL Please clarify: The proposed language in the RFP says "Orders can be made out to either a) It is up to the participating State if and how they will utilize resellers. The Model is a sample only and each State will PARTICIPATING Contractor or b) to an AUTHORIZED reseller depending upon the preference of the develop a final Participating Addendum to be utilized and final language will be provided to the Contract Vendor(s) ADDENDUM Participating State or other participating legal entity.: However, it is the Contractor who decides when negotiating with theParticipating State/Authorized participating entity. how they will utilize Partners and offers the option(s) to be agreed upon in the individual PA, Shouldn't the language in the Master Agreement read: "Orders can be made out as described by the Contractor in the Participating Addendum"? 259 111 MODEL #4 states orders can be made to either a contractor (OEM) or an authorized reseller depending It is unknown which States will allow authorized resellers. This will be negotiated with each State in their Participating PARTICIPATING on the preference of the Participating State. Please provide a list of the states that will allow Addendum. ADDENDUM authorized resellers to fulfill order, shipping and invoicing obligations.

260 118 FORMS Is it mandatory for EFT? If yes, will authorized reseller/partner be able to fulfill this The EFT Form provided is for the State of Minnesota . It will be determined in the MN Participating Addendum requirement? negotiation whether the use of partners are allowed. Other States may also have this requirement.

19 MN WSCA-NASPO - PREPROPOSAL WEBINAR ATTENDEES Back to Question Abba Technologies, Inc. ABN Technologies Ace Computers Advanced Communications & Electronics AirTight Networks, Inc Apple Inc. Brother International Corporation ByteSpeed CAD Masters, Inc. CamNet, Inc Campbell Technology Consultant CB Technologies,Inc. CDW CDW-G Cisco Systems, Inc. CounterTrade CP CTL Dell EarthWalk Communications, Inc. Educational Resources EMC Corporation Equus Computer Systems FireFly Computers America, Inc. Government Contract Services Grace Global Hewlett Packard Company Hitachi Data Systems Howard Technology Solutions Hubb Systems, LLC Hypertec Direct IBM Corporation Ingram Micro Konica Minolta Business Solutions, USA Kyocera Documnt Solutions Lenovo McAfee Microsoft MobileDemand NCS Technologies, Inc. NetApp Inc Nordisk Systems Oracle Panasonic Peak Mountain Technology Solutions Percolate Solutions, Inc. Quantum Corp. Right! Systems, Inc. Samsung Electronics America, Inc. Silicon Mechanics Synergetics DCS Transource Computers Transource Services Unistar-Sparco Computers, Inc. ValuTrack, Inc ViON Corporation Xerox Xi3 Corporation MN WSCA-NASPO COMPUTER EQUIPMENT ADDENDUM 5 - RESPONSES TO QUESTIONS DUE 11/22/13 # PAGE SECTION QUESTION ANSWER 18 Page 8, E. Product Band If a vendor is not offering a desktop but wants to offer their Thin and Zero clients how do they Thin clients and zero clients are also allowed in Band 2: Laptop. Thin clients and zero clients are not listed in and Definitions reflect this offer for this section? the Market Basket, but may be included in the Product and Service Schedule. Manufacturer specific items may be substituted for the minimum specification if the manufacturer is able to provide an approved equal. The lead state reserves the right to reject any or all responses that are not an approved equal.

2 11 Page 37 Section 30 Page 11, definition of FOB Destination and page 37, Section 30 do not seem to be completely in The Acceptance definition has been deleted. See Section 2B28 for Term relating to Acceptance and alignment, especially since the definition of Acceptance on page 11 indicates that the Purchasing Acceptance Testing. Entity shall determine whether products and services meet contractor specifications and acceptance testing may be negotiated by the individual State. That is, it is not clear that acceptance testing will be performed only by the vendor – it could be performed by the State. Will the State consider removing “unless there is acceptance testing required” from the definition of FOB Destination and re-stating page 37, Section 30 as “Goods and/or equipment will be delivered FOB Destination; however the Contract Vendor or its authorized agent will be responsible for loss or damage to the goods and/or equipment resulting from the Contract Vendor or its authorized agent’s negligent handling, testing, or operation of the goods and/or equipment after delivery.”?

3 19 17B Must the proof of authority for the Authorized Signature be included in the RFP response? (page No, it does not need to be included. Per the RFP, Proof of authority shall be furnished upon request. 19, section 17.b) 4 19 17B Can a corporation provide a copy of its corporate signature policy which names the authorized Yes. signatory as proof of Authorized Signature? (page 19, section 17.b) 559 Section 3.A.1 This question asks vendors to verify they are a manufacturer of each band proposed. What would Responders must determine the best way to provide verification and/or proper documentation. the state like respondents to provide to show they are a manufacturer? 6 67 Page 67, D Does the State of MN allow for OEMs to responding to utilize partners to fulfill on behalf of the Yes, the solicitation allows manufacturers to utilize Partners, however it is up to each State to determine if OEM? This includes take orders, ship, invoice, etc. The OEM understands that ultimately they are and which partners will be utilized. responsible for all terms. 7 122 Exhibit D Regarding the Volume Sales Reports, can you confirm several items which may be different than Final reporting structure and fields will be addressed upon Contract Award. the previous reporting structure? 82C13 In Q&A #117, it was stated that MSDS copies may be provided via an electronic link with the It is acceptable to provide MSDS links on the WSCA-NASPO website for end-users to access. The link to the delivery. Does this mean it is Vendor’s responsibility to provide the link to each end user upon site could be provided to the end user upon delivery on a packing slip. purchase, or is it acceptable for Vendor to provide the link on its WSCA-NASPO website so that end-users may access the link and pull the related MSDS? If it is Vendor’s responsibility, Vendor will need to be provided an email address of where to send the link.

93A #3 While all attempts will be made to identify 3rd party products initially, will the Vendors be able to Yes. request the addition of 3rd party products, within their pre-approved bands, through out the life of the contract, using the quarterly WSCA-NASPO product/services request process? 10 Accessories There is no mention of monitor mounts in the request. Monitor mounts provide ergonomic, space, Monitor mounts are allowed to be sold as an accessory by a Contract Vendor. The Contract Vendor must and durability benefits that can improve worker productivity and extend the life span of equipment. manufacture equipment in Bands 1-6 and may add third party products to their product and service schedule Is there any possibility that you'd be willing to add monitor mounts to the current RFP? such as monitor mounts if they do not manufacture the product.

11 Band 1 Desktop Configs 1&2- Would WSCA consider leveraging Intel integrated graphics card on the For purposes of evaluation, the minimum requirement for the market basket desktops will remain with desktops and laptops in lieu of an additional graphics card? Dedicated video is now 756MB on the discrete video. Desktops with integrated memory may be offered under the contract and included with the new Intel Haswell 4th generation processors and should be more than enough for end users PSS. Manufacturer specific items may be substituted for the minimum specification if the manufacturer is initially requiring a 512MB discrete graphics card. Additionally, with the Intel Integrated graphics a able to provide an approved equal. The lead state reserves the right to reject any or all responses that are not user can support up to 3 independent monitors. an approved equal. 12 Band 1 Desktop Configs 1&2- May we provide pricing on a 256GB SSD in lieu of a 500GB SSD as we For purposes of evaluation, the minimum requirement for the market basket desktop options will remain with currently do not have a 500GB SSD available? In addition, may we quote a 500GB hybrid drive the stated specifications, therefore responders should meet minimum requirements or provide an approved (500GB 7200 + 8GB SSD) to satisfy the 500GB requirement? equal. The options are not required, however may be considered in evaluation. Options that do match the market basket specs may be offered under the contract in the PSS. Manufacturer specific items may be substituted for the minimum specification if the manufacturer is able to provide an approved equal. The lead state reserves the right to reject any or all responses that are not an approved equal.

13 Band 1 Is WSCA/NASPO also interested in Driver or Recovery media for the Desktops? These may be provided in the Product and Service Schedule, however is not a part of the market basket pricing submission requirements.

Page 1 of 11 MN WSCA-NASPO COMPUTER EQUIPMENT ADDENDUM 5 - RESPONSES TO QUESTIONS DUE 11/22/13 14 Band 1 The desktop config specify 4GB and 8GB configurations with upgrades to 8GB and 16GB Band 1: Desktop configurations minimum requirement has been changed to 64-bit windows and provided via respectively. 32-bit Windows only addresses less than 4GB? Addendum 5. 15 Band 1 Band 1 Desktop SPECS Item 1, Row 21, HDD cache size, 32Mb specified - Vendor respectfully Item 1 Hard drive cache will remain at 32MB. requests the hard drive specification be revised to 16MB to provide greater choice that would not impact one Vendor over another Vendor’s proposal covering the minimum specifications and subsequent pricing to ensure a fair competitive response for evaluation?

16 Band 1 Band 1 Desktop SPECS Item 2, Row 21, HDD cache size, 64Mb specified - Vendor respectfully Item 1 Hard drive cache will remain at 64MB. requests the hard drive specification be revised to 16MB or 32MB to provide greater choice so that one Vendor over another Vendor is not impacted when providing the Manufacturer proposal specification and subsequent pricing to ensure a fair competitive response for evaluation.

17 Band 1 If an OEM does not offer a desktop that meets the market basket item but has Thin Clients and Manufacturer specific items may be substituted for the minimum specification if the manufacturer is able to Zero clients to offer in this band, do they list the other products offered in the equipment pricing tab provide an approved equal. The lead State reserves the right to reject any or all responses that are not an and leave the market basket blank? approved equal. Thin clients and zero clients are also allowed in Band 2: Laptop. Thin clients and zero clients are not listed in the Market Basket, but may be included in the Product and Service Schedule. The State reserves the right to eliminate an item from consideration from all responses, enter the highest price item of all responses received when an item has not been provided by a responder, request additional pricing items for consideration, clarify pricing responses with responder(s), include options, quantity discounts and/or services for basis of calculating the cost utilized in evaluation. A third party product may be offered. If responder does not have an offer they may state "no offer".

18 Band 1 Desktop Configs 1&2. Would WSCA please consider adjusting # of open memory slots to 1 as to For purposes of evaluation, the minimum requirement for the marketbasket desktops will remain at 2 open include smaller footprint desktop computers? In doing this, end users could see max memory at slots. Desktops with 1 open memory slot may be offered under the contract in the PSS. Manufacturer 16GB (8GB x2) which is more than enough considering that Windows 7 32bit utilizes less than specific items may be substituted for the minimum specification if the manufacturer is able to provide an 4GB of RAM. approved equal. The lead state reserves the right to reject any or all responses that are not an approved equal. 19 Band 2 For the Laptop Band, could there be an additional processor added ---Intel® Core™ i5-3320M The pricing workbook lists minimum specifications. Items proposed must meet or exceed the minimum. vPro™ Processor ? Manufacturer specific items may be substituted for the minimum specification if the manufacturer is able to provide an approved equal. The lead state reserves the right to reject any or all responses that are not an approved equal. 20 Band 2 SPECS Item 2, WSCA currently has a 5lb requirement on a 15.6’’ notebook. Would WSCA please This specification has been changed to less than 6 pounds in Addendum 5 Pricing Workbooks. consider changing the weight to a 5.5lb maximum as to allow for all Manufacturers to respond?

21 Band 2 Band 2 Laptop SPECS Item 1, Row 16, Processor, Core i5-4200U specified - Vendor requests a Processor has been changed to i5-4300U which supports vPro in Addendum 5 Pricing Workbooks. clarification since the minimum specification notes the processor and the requirement for vPro, however the processor does not support vPro. Please clarify the processor selection or vPro support. 22 Band 2 Band 2 Laptop SPECS Item 2, Row 16, Processor, Core i7-4500U specified - Vendor is requesting Processor has been changed to i7-4600U which supports vPro in Addendum 5 Pricing Workbooks. a clarification since the minimum specification notes the processor and the requirement for vPro, however the processor does not support vPro. Please clarify the processor selection or vPro support. 23 Band 2 Band 2 Laptop SPECS Item 2, Row 25, Weight, Weight maximum 5 pounds, specify actual weight Specification has been changed to less than 6 pounds in Addendum 5 Pricing Workbooks. including battery specified - Vendor respectfully requests a modification to the weight to maybe something like "sub-6 pounds" to provide each Vendor the ability to provide a proposal to the specification. We believe that most have a solution that may be the weight by an ounce or two. This will ensure a fair competitive response for evaluation purposes.

24 Band 2 Band 2 Laptop SPECS Item 2, Row 30, Video screen size and type, 15" WXGA TFT or WLED Specification has changed to 15" WXGA TFT or WLED HD in Addendum 5 Pricing Workbooks. HD. Multi-Touch enabled specified - We respectfully request that "Multi-Touch enabled" be relaxed to an optional selection to provide each Vendor the ability to provide a response to this section to ensure a fair competitive response for evaluation purposes.

Page 2 of 11 MN WSCA-NASPO COMPUTER EQUIPMENT ADDENDUM 5 - RESPONSES TO QUESTIONS DUE 11/22/13 25 Band 2 Band 2 Laptop SPECS Item 2 - With the specifications as currently defined, it does not appear that Specification changes have been made to Band 2 in Addendum 5 Pricing Workbooks. any major OEM notebook vendor can meet the combination of requirements. We respectfully request that select requirements (such as screen size, weight, and/or multi-touch enabled screen) be relaxed to allow for each Manufacturer to provide a response for a fair competitive evaluation.

26 Band 3 SPECS 1 from BAND 3 If you look at the headings the Manufacturer Part # is incorrect. The Revisions have been made to Band 3 in Addendum 5 Pricing Workbooks. The workbooks are locked, information from this cell populates a field in Equipment Pricing worksheet which is looking for a however there is not a password and responder may revise as needed without changing any minimum price. There are fields that are locked and therefore you cannot input into those field i.e. the requirements. Minimum Requirements field which asks for a description. We have also found some fields do not wrap the text so you cannot see our entire response unless you focus on that particular field. We have also found some of the information that is input is placed at the bottom of the column instead of the top and in one instance the information is centered in the field. As the documents are locked, can we get unlocked versions of these workbooks or should we just submit our information in their current form? 27 Band 3 Tablet Workbook, Specification 1 Upgrade Options, there is no place for the List price, but if you Tablet workbook has been adjusted to now read "Manufacturers SKU #" and "List price" in Addendum 5 put the list price under the column header “Manufacturer Part#” it will populate correctly to the Pricing Workbooks. equipment pricing tab. Will an updated workbook be provided so that the part number can be included? 28 Band 3 Tablet Workbook Specification 2, Upgrade Options, if you put in the list price it does not auto Tablet workbook has been adjusted so that the list price and other information will auto-populate correctly in populate to the equipment pricing tab. Will an updated workbook be created so the list pricing auto Addendum 5. populates like the other tabs? 29 Band 4 On the SPECS Item 1, it appears that Laptop specs are being used. Please advise as to Server The pricing workbook has been corrected in Addendum 5. specs for this Market Basket item. 30 Band 4 We respectfully request the printers be removed from the Market Basket for Servers. Printers are These are optional, however, may be considered in evaluation. The State reserves the right to eliminate an not part of enterprise or data center Server configurations, therefore seem not applicable to item from consideration from all responses, enter the highest price item of all responses received when an determining evaluated price for Servers. item has not been provided by a responder, request additional pricing items for consideration, clarify pricing responses with responder(s), include options, quantity discounts and/or services for basis of calculating the cost utilized in evaluation. A third party product may be offered. If responder does not have an offer they may state "no offer". 31 Band 4 The specs for server #1 seem to be referencing some server specifications and some for a Band 4, Server 1 specifications have been changed in Addendum 5. notebook. Will there be a clarification/correction for server 1? 32 Band 4 Server Workbook, Service Specifications note a two year and a three year warranty on desktop Desktop references have been corrected in Addendum 5. If servers carry a standard 3 year warranty, 1. Servers carry a standard 3 year warranty. Further, Desktop is noted in other sections of the provide a comment in the "Manufacturer's Proposal" column. Services. Will this section be modified to reflect the Server Specifications? 33 Band 4 Server Workbook, Server minimum specifications note a Video screen size and type. Servers do Server specs have been adjusted, including the removal of the video screen requirement in Addendum 5. not include a Video screen, is this requirement to include a monitor as part of the Server configuration standard? 34 Band 4 Server Workbook, Server minimum specifications note an EPEAT bronze level. At this time, Server specs have been adjusted, including the removal of the EPEAT requirement in Addendum 5. EPEAT does not have a classification for EPEAT certification for Servers, therefore no Server offering will have EPEAT certification since it is not available. Will this be updated?

35 Band 4 Server Workbook, Server specifications include a line item for delivery. Delivery is not a Server specs have been adjusted, including the removal of the delivery requirement in Addendum 5. specification. Vendor would respectfully request this be removed to ensure a fair and competitive evaluation of product pricing. 36 Band 4 Server Workbook, Server Option/Upgrades request a description to be included under the Server specs have been adjusted in Addendum 5. Minimum Requirements, however those fields are locked/protected. Will an updated version be provided to allow for the descriptions to be added as requested? 37 Band 4 Server workbook specifications 1 & 2 note a video screen type, sound and keyboard. These items Server workbook has been adjusted to remove the requirements for video screen type, sound, and keyboard are not server configurable but offered as a rack option. Vendor respectfully requests verification if in Addendum 5. these items are to be included as part of the Server configuration or as an upgrade/option? If not, will an updated workbook be provided? 38 Band 4 Server workbook specifications 1 & 2 note a PC battery type, not applicable to the Servers. Will an Server workbook has been adjusted to remove the battery requirement in Addendum 5. updated workbook be provided since these specifications are not applicable to Servers?

Page 3 of 11 MN WSCA-NASPO COMPUTER EQUIPMENT ADDENDUM 5 - RESPONSES TO QUESTIONS DUE 11/22/13 39 Band 4 Server Workbook, Service Specifications; SE1S-5 - If a Respondent offers image loads on site or Yes. in post-manufacturing “Staging Facilities,” since most Servers are not imaged in the factory, can a respondent provide that pricing with part number noted as custom part number to be determined?

40 Band 4 Server Workbook, Service Specifications; SE1S-6 - If a Respondent offers Custom Image Yes. Consulting on site or in post-manufacturing “Staging Facilities,” can the Respondent provide pricing for post manufacturing on-site with the part number noted as custom part number to be determined? Custom Image Consulting work would be on a Time and Materials basis.

41 Band 4 Server Workbook, Service Specifications; SE1S-7. If a Respondent also offers asset tagging on Yes. site or in post-manufacturing “Staging Facilities,” can a respondent provide on-site service pricing with part number noted as custom part number to be determined? 42 Band 5 Storage Workbook, Service Specifications refer to desktops for a 1 and 2 year warranty. Storage Server specs have been adjusted including the correction of the service specifications in Addendum 5. products come with a minimum of three year warranty. Will the Services section be updated to reflect the Storage configurations instead of Desktops? 43 Band 5 Storage Workbook, Services Specifications; ST1S-3. This section notes Desktops, which typically Server workbook has been adjusted to reference servers, not desktops in Addendum 5. do require Accidental Damage protection since Desktops and laptops are used in the front office environment and purchased for individual use. Since Servers are not used in the front office environment, would this still be applicable? 44 Band 5 Storage Workbook, Services Specifications; ST1S-5. If a Respondent offers image loads on site Yes. or in post-manufacturing “Staging Facilities,” since most Storage devices are not imaged in the factory, can a respondent provide that pricing with part number noted as custom part number to be determined? 45 Band 5 Storage Workbook, Services Specifications; ST1S-6. If a Respondent offers Custom Image Yes. Consulting on site or in post-manufacturing “Staging Facilities,” since most Storage solutions are not imaged in the factory, can a respondent provide that pricing with part number noted as custom part number to be determined? Custom Image Consulting work would be on a Time and Materials basis. 46 Band 5 Storage Workbook, Service Specifications; ST1S-7. If a Respondent offers asset tagging on site or Yes. in post-manufacturing “Staging Facilities,” since most Storage solutions are not imaged in the factory, can a respondent provide that pricing with part number noted as custom part number to be determined? 47 Band 5 Storage Workbook items 1&2 ( ST1B-1/ST2B-1) – Vendor requests a specification of operating Storage workbook adjusted in Addendum 5. system management support as well as supported Licenses. These items are used by a NAS Devices and commonly used on servers. Will an updated workbook be provided to incorporate a change to this specification? 48 Band 5 Cell B7 states “Identify Baseline/List Pricing Utilized”. Please clarify what we are to enter in C7 by The responder should provide the name of the BaseLine Price list utilized e.g. MSRP, Education, providing example(s). Government, SLED, Manufacturer. 49 Band 5 We do not provide printers and monitors - we do not provide these. Do we put n/a in these These are optional, however, may be considered in evaluation. The State reserves the right to eliminate an sections. item from consideration from all responses, enter the highest price item of all responses received when an item has not been provided by a responder, request additional pricing items for consideration, clarify pricing responses with responder(s), include options, quantity discounts and/or services for basis of calculating the cost utilized in evaluation. A third party product may be offered. If responder does not have an offer they may state "no offer". 50 Band 5 Storage Replication support – how many units at one time need to be replicated? Storage replication support is an option, not a minimum requirement. Please describe under "Manufacturer's Proposal" what your company has to offer. 51 Band 5 What about alternative replication software (3rd party)? Storage replication support is an option, not a minimum requirement. Please describe under "Manufacturer's Proposal" what your company has to offer. 52 Band 5 We respectfully request the printers be removed from the Market Basket for Storage. Printers are These are optional, however, may be considered in evaluation. The State reserves the right to eliminate an not part of enterprise or data center Storage configuration, therefore seem not applicable to item from consideration from all responses, enter the highest price item of all responses received when an determining evaluated price for Storage. item has not been provided by a responder, request additional pricing items for consideration, clarify pricing responses with responder(s), include options, quantity discounts and/or services for basis of calculating the cost utilized in evaluation. A third party product may be offered. If responder does not have an offer they may state "no offer".

Page 4 of 11 MN WSCA-NASPO COMPUTER EQUIPMENT ADDENDUM 5 - RESPONSES TO QUESTIONS DUE 11/22/13 53 Band 5 Worksheet allows for up to seven categories with unique discounts for the band. How shall The responder may edit their submission to include additional categories if needed. vendors communicate more than seven categories if they have more than seven categories?

54 Band 5 If vendor provides three years of warranty with the purchase of the system, should they enter “N/A” Responder should indicate they meet the requirement and note that they exceed it. along with an explanation for STS-1 and STS-2? 55 Band 5 Normally, hardware and software “Warranty Upgrades” are priced differently as well as have Responder may include additional documentation to explain warranty upgrades to explain their response. different terms. How should vendors provide a different rate or discount to reflect these differences for hardware and software warranty? 56 Band 5 Can we propose services for these items based on the STS-1 configuration only? The Pricing workbook identifies if the services are to be proposed for the configuration. If not indicated, propose what is available for the band. 57 Band 5 Because the nature of Break Fix is Time and Materials, and does not have a Manufacturer SKU #, Yes. can we leave the SKU # field blank and provide our offering in the Manufacturer Proposal field?

58 Band 5 Cell D9 requests a single SKU for the configured solution, however we don’t have an assigned Yes. SKU for the stated Base configurations; the solution is a composite of many SKUs assembled to order and shipped as one logical unit, but with no Manufacturer SKU identifying the system as a whole. Should we enter the combination of SKUs listed in Column F rows 11 through 37.

59 Band 5 Vendor is not clear what is meant by “Operating System – Snapshot”. Please describe the The requirement has been removed. Storage workbook has been adjusted in Addendum 5. requirement, as it applies to Band 5 Storage Equipment, in further detail and/or provide an example of the desired response so that we can respond appropriately. 60 Band 5 Vendor is not clear what is meant by “Operating System – licensed and Supported”? Please The requirement has been removed. Storage workbook has been adjusted in Addendum 5. describe the requirement, as it applies to Band 5 Storage Equipment, in further detail and/or provide an example of the desired response so that we can respond appropriately. 61 Band 5 Vendor is not clear what is meant by “Operating System – Protocols”. Please describe the The requirement has been removed. Storage workbook has been adjusted in Addendum 5. requirement, as it applies to Band 5 Storage Equipment, in further detail and/or provide an example of the desired response so that we can respond appropriately. 62 Band 5 Vendor is not clear what is meant by “Operating System – Management Support”? Please The requirement has been removed. Storage workbook has been adjusted in Addendum 5. describe the requirement, as it applies to Band 5 Storage Equipment, in further detail and/or provide an example of the desired response so that we can respond appropriately. 63 Band 5 “Operating System – host and capacity” indicates a minimum requirement of 300GB. Please The requirement has been removed. Storage workbook has been adjusted in Addendum 5. describe the requirement in further detail and/or provide an example of the desired response so that we can respond appropriately. 64 Band 5 Should vendor indicate “N/A” for all yellow fields if they do not provide the identified peripheral? These are optional, however, may be considered in evaluation. The State reserves the right to eliminate an item from consideration from all responses, enter the highest price item of all responses received when an item has not been provided by a responder, request additional pricing items for consideration, clarify pricing responses with responder(s), include options, quantity discounts and/or services for basis of calculating the cost utilized in evaluation. A third party product may be offered. If responder does not have an offer they may state "no offer". 65 Band 5 Minimum requirements for each of ST1S-1, ST1S-2, ST1S-3, and ST1S-4 indicate “desktop 1” as Storage workbook has been adjusted to reflect storage instead of desktop in Addendum 5. the subject system for minimum requirements. Should this be “ST1B-1” instead? QA #199 had responded to the same question with See revised RFP. However, this change was not made. Please clarify. 66 Band 5 If vendor does not provide Image Loading Services (not commonly provided for Storage Band These are optional, however, may be considered in evaluation. The State reserves the right to eliminate an solutions) can we simply indicate so without being non-compliant? item from consideration from all responses, enter the highest price item of all responses received when an item has not been provided by a responder, request additional pricing items for consideration, clarify pricing responses with responder(s), include options, quantity discounts and/or services for basis of calculating the cost utilized in evaluation. A third party product may be offered. If responder does not have an offer they may state "no offer". 67 Band 5 If vendor does not provide Image Consulting Services (not commonly provided for Storage Band These are optional, however, may be considered in evaluation. The State reserves the right to eliminate an solutions) can we simply indicate so without being non-compliant? item from consideration from all responses, enter the highest price item of all responses received when an item has not been provided by a responder, request additional pricing items for consideration, clarify pricing responses with responder(s), include options, quantity discounts and/or services for basis of calculating the cost utilized in evaluation. A third party product may be offered. If responder does not have an offer they may state "no offer".

Page 5 of 11 MN WSCA-NASPO COMPUTER EQUIPMENT ADDENDUM 5 - RESPONSES TO QUESTIONS DUE 11/22/13 68 Band 5 If vendor does not provide Asset Tagging Services (not commonly provided for Storage Band These are optional, however, may be considered in evaluation. The State reserves the right to eliminate an solutions) can we simply indicate so without being non-compliant? item from consideration from all responses, enter the highest price item of all responses received when an item has not been provided by a responder, request additional pricing items for consideration, clarify pricing responses with responder(s), include options, quantity discounts and/or services for basis of calculating the cost utilized in evaluation. A third party product may be offered. If responder does not have an offer they may state "no offer". 69 Band 5 With Band 5: Storage having such large maximum configuration limit of $500,000, can WSCA- The Master Agreement restriction will remain at $5000. Each Participating State has the option of raising or NASPO waive the $5,000 limit on peripherals for Band 5: Storage? lowering configuration limits and may modify in their participating addendum. 70 Band 5 Storage Workbook Item 2 ( ST2B-1) – Vendor requests specification on “NIC trunking/ teaming The workbook has been adjusted and this line removed in Addendum 5. and fault tolerance.” This appears to be specific to a Server since this would not be applicable to storage arrays. Will an updated workbook be provided to incorporate a change to this specification? 71 Band 6 SPECS Item 1 and 2, would WSCA allow for a semi-rugged specification that would allow for all The workbooks are for evaluation purposes only. Semi-ruggedized offerings will be able to be offered under MIL-SPECS with the exception of waterproof (8 MIL-SPEC minimum)? In doing so, end users can the contract in the PSS and also in other bands if awarded. realize significant savings if a waterproof system is not required, but other MIL-SPECS are needed.

72 Band 6 Do the market basket items describe the minimum specifications for each Band? In other words, The market basket items describe the minimum specifications for the item in the market basket, but not for and for example; in Band 6 – Ruggedized – is a 13.1” screen the minimum specification for a the band. The market basket will be used to compare the specified items pricing among responders. The ruggedized unit on the contract? minimim requirement for band 6 screen size equipment is 13.3". Responders can offer above or below a 13.1" screen in their product and service schedule. Manufacturer specific items may be substituted for the minimum specification if the manufacturer is able to provide an approved equal. The lead state reserves the right to reject any or all responses that are not an approved equal.

73 Band 6 For the Rugged Band, could there be the notation for the screen or LCD to be 10" or more to allow The market basket items will be used to compare pricing among responders. A responder may provide for more products in this category? Or could an additional "SPEC item” be added to notate a 10" additional offerings in their product and service schedule that are above or below the minimum requirements or more LCD? in the market basket. 74 Cost Proposal, Section 4 It is unclear given your definition of Minimum Discount how a vendor would determine their The pricing provided in the market basket tab of the pricing workbook (as a result of the discounts provided) Items 1 and 4 minimum discount in a category for evaluation purposes. Please clarify how this existing will be utilized to compare cost. The discounts are then utilized as a basis for verification of pricing throughout methodology is determined to be a fair and reasonable evaluation resulting in best value for the the life of the contract and for audit purposes. customer. 75 Cost Proposal, Section 4 Vendor strongly objects to the existing methodology as stated in the RFP for scoring cost based on The scoring of cost is not based on the minimum discount percentage. The pricing provided in the market Items 1 and 4 Minimum Discount Percentage. The Minimum Percentage Discount offered is not relevant. The basket tab of the pricing workbook (calculated from the discounts off the baseline pricelist provided) will be maximum % discount offered should be applied to the manufacturers “List Price” and the customer utilized to compare cost. The discounts are then utilized as a basis for verification of pricing throughout the net price for a specified configuration should be determined and evaluated against other offers. life of the contract and for audit purposes. The lowest net price should receive the maximum points. This method would base the Cost Proposal scoring on configurations in order to evaluate a vendor's net price against another vendor's net price, which in turn would ensure that a WSCA-NASPO customer receives the lowest available net price. 76 Discount Structure Tab Cell 7C asks to identify the Baseline List Pricing Utilized. What do we enter here? Responders are instructed in Section 4: Item 3 to: The responder must designate a Base Line Price e.g. MSRP, education price list in the price workbook. 77 Due Date In order to have time to prepare a complete response after the next round of questions are Addendums may note any future extensions. answered we request the due date be extended to January 16th, 2014. Taking into consideration Thanksgiving and Christmas this will allow the time needed to finalize the response for this large opportunity once the questions submitted on November 22nd are answered. Thank you for your consideration. 78 Due Date Will the states consider an extension of the RFP due date until December 18, 2013? Addendums may note any future extensions. 79 Due Date Can the due date be extended to allow vendors due process? Addendums may note any future extensions. 80 Due Date Due to the requirements of this response as well as the Thanksgiving holiday, is WSCA-NASPO Addendums may note any future extensions. willing to consider an extension to 12/20? 81 Full product offering For the products being offered for each band beyond the market basket items please confirm this Yes. information is to be provided in the Product Service and Schedule listing included in the response.

82 General Can the Addendums 1-3 be provided in Word format? No. Links for all documents in the addendums were provided in word format. 83 General Based off the 2009 RFQ that we submitted are we able to replicate the same data that we first The current solicitation varies from the 2009 solicitation. Responders must decide how to respond to the submitted but refresh with all the updates? current solicitation and requirements. This is a new solicitation.

Page 6 of 11 MN WSCA-NASPO COMPUTER EQUIPMENT ADDENDUM 5 - RESPONSES TO QUESTIONS DUE 11/22/13 84 General Since we’ve already been on the contract do we just need to update the pricing? No. A complete proposal must be submitted addressing all requirements in the solicitation. This is a new solicitation. 85 PRICING SHEETS If we are approved for a specific band (such as desktops) can we add and replace products within Yes, with approval of the MN WSCA-NASPO Contract Administrator and utilizing the Action Request Form the same approved band throughout the contract? provided. 86 PRICING SHEETS If a manufacturer does not make either printers or monitors, but does manufacturer products in No. These are optional, however, may be considered in evaluation. The State reserves the right to eliminate another band, are they required to provide pricing for the peripherals (printers and monitors) in the an item from consideration from all responses, enter the highest price item of all responses received when an price sheets? item has not been provided by a responder, request additional pricing items for consideration, clarify pricing responses with responder(s), include options, quantity discounts and/or services for basis of calculating the cost utilized in evaluation. A third party product may be offered. If responder does not have an offer they may state "no offer". 87 PRICING SHEETS Is there further direction on completing pricing workbook? Was the bidder’s conference recorded The directions for completing the pricing workbooks is found in Section 4: Cost Proposal of the RFP.The and available for replay as I know you covered this in the conference in more detail? preproposal meeting recording is not available.

88 PRICING SHEETS On all the display options: If it does not specify that DisplayPort (DP) is required, do we assume Peripheral 3 requires a Display Port (DP) interface to be included. Peripheral 4 is in in blue italics and states that WSCA simply wants to know if it is included or not? “specify whether DP interface is included”. Blue italic items indicate there is not a minimum requirement, therefore the responder needs to specify if a DP interface is included. 89 PRICING SHEETS Are the peripherals listed in the pricing workbook the only peripheral items being The primary purpose of this contract is for Computer Equipment. The peripherals in the pricing workbook are considerered/awarded under this contract? Do charging carts not fall under the scope of the for evaluation purposes. A computer manufacturer may offer additional peripherals and third party products in contract. their Product and Service Schedules. Charging carts are within the scope of the contract when offered by an awarded vendor who manufacturers computers. 90 Pricing Workbooks For all workbooks in the Service Specifications, is this meant to be tied specifically to the product Responders are to provide service available for the band as identified in the pricing workbook. If a outlined for Spec 1 and 2? specification is not identified for a service, propose for the band in general. 91 Pricing Workbooks All Workbooks, Peripherals 1 & 2 (printers) minimum specifications show 32MB of memory for B&W printer requires 32MB, Color printer requires 128MB. Pricing workbooks have been corrected in Color and 128MB for Black & White printer. The color printers require more memory than the black Addendum 5. & white; were these meant to be the reverse? Will an update be provided?

92 Pricing Workbooks All Workbooks, Option Upgrades note to include a description under minimum requirements, Enter description in the column "Manufacturer & SKU #" however those fields are lock/protected. Will an updated version be provided that is unlocked so that descriptions can be included? 93 Pricing Workbooks Option/Upgrade all Bands: If one of the Option/Upgrades is included in the main Yes. specification/configuration, is it acceptable to simply note “included with configuration”? 94 Pricing Workbooks All Workbooks, Services Specifications & Discount Structure; Typically in the industry on-going Yes. non warranty support (sometimes referred to as Post Warranty) is offered either utilizing time and materials on a per incident basis or providing procuring entities the ability to purchase maintenance support, which can be purchased on a monthly or annual basis. These are based on the level of support and hardware configuration and age of the product since many times this could be for product that is over 3 years old and up to 10 years old. For this reason, providing an actual list price for these services for an entire portfolio of products in the last ten years and every service level available is an unbelievable task. Can a Vendor simply note the Time & Materials discount in the workbook? 95 Pricing Workbooks Which workbook tab should be used for vendors proposing full turn-key high performance These would not be included in the pricing workbook. They would be included in the Product and Service computing cluster solutions systems comprised of multiple servers, switches, rack cabinet(s), and Schedule. software rolled up into a single orderable SKU? 96 Pricing Workbooks Services Specifications; Warranty Upgrades to 2 and 3 year warranty. If a Vendor includes three Additional warranty periods may be provided in the PSS. year warranty for most of their products, how would the Vendor be able to show the discount that would apply for upgrades beyond three years since the workbook only asks for 2 year and 3 year?

Page 7 of 11 MN WSCA-NASPO COMPUTER EQUIPMENT ADDENDUM 5 - RESPONSES TO QUESTIONS DUE 11/22/13 97 Pricing Workbooks Is it mandatory to respond to the market basket items for Bands 1, 2 or 3? Not all OEM’s may It is mandatory to respond to the base equipment listed in a band's market basket. Responders may respond have a devices that fits the minimum requirement for evaluation but has multiple other devices to to any or all bands. Responders must be a manufacturer of equipment in the band. Manufacturer specific list in their product and service schedule. items may be substituted for the minimum specification if the manufacturer is able to provide an approved equal. The lead state reserves the right to reject any or all responses that are not an approved equal. The State reserves the right to eliminate an item from consideration from all responses, enter the highest price item of all responses received when an item has not been provided by a responder, request additional pricing items for consideration, clarify pricing responses with responder(s), include options, quantity discounts and/or services for basis of calculating the cost utilized in evaluation. A third party product may be offered. If responder does not have an offer they may state "no offer".

98 Pricing Workbooks For storage area networking, our company manufacturers Fibre Channel over Ethernet (FCoE) or Switches are included in the definition of Band 5 on page 8 and also is an example of a peripheral. Although, Fibre Channel switches. After reviewing the price sheets for Band 5 – Storage, there are no such they are not specified in the pricing workbooks, they may be included as part of the Product & Service requirements or configurations present to offer these products. May we add this as a peripheral to Schedule. another band we are bidding, or would the State consider adding additional specifications to band 5? 99 PRODUCTS AND Does the evaluation team seek a separate PSS for each band, or a consolidated PSS that clearly The PSS may be consolidated or separated by Band. The final format will be determined upon contract SERVICES SCHEDULE denotes which products apply to each band in the bidder’s submission? award. (PSS) 100 Q&A # 9 Does the Contract Vendor need to specifically identify all utilization partners who will fulfill orders Proposer should respond with intended partners at the time of submission. However, agreements will be under the awarded Master Agreement at proposal submission, or can utilization partners be determined when negotiating Participating Addendums with each Participating Entity. identified individually with Participating Entities after Master Agreement award? 101 Q&A #53 Are links/pointers to free trials for subscription online software services that are always installed (in The publicity clause does not allow advertisements without pre-approval of the contract adminstrator. the ordinary course for retail) on the equipment permitted? 102 Q&A 134 and 203 May a Contractor add new product SKUs during the term of the Master, and would those new A contract vendor may add new product skus during the term of the Master with the approval of the MN product SKUs be subject to the same baseline price or MSRP and minimum discount as provided WSCA-NASPO Contract Administrator. The pricing would be subject to the same discounts throughout the in the original bid under the Master Agreement (price list dated Nov.15, 2013)? life of the contract. It is understood the baseline price may fluctuate. 103 Q&A 191 Regarding minimum band discount. It seems that the description of the minimum band discount, It is understood that there may be certain items that would carry a higher or lower discount in a band. Thus with the ability to establish categories within the band that may have discounts that are less than there is an allowance made to allow categorized exceptions to a minimum band discount. This way the minimum band discount is counterintuitive. Should the minimum band discount not represent exceptions for discounts above or below the minimum are available. For example, a third party product or the minimum discount offered for any sub-category within the band? products with a lower established list price may have a discount less than the minimum if it is named as a categorized exception. 104 Q&A 204 For evaluation purposes on the workbook, if the PSP configuration meets the specification for The pricing reflected in the market basket must be verified with the discounts provided in the discount tab. Workbook Band 1, 2 or 3 can those prices be listed since the PSP is available for Quantity 1 or is The market basket is to include the discount price based on the specific category and/or category exceptions the workbook only to include the Quantity 1 PSS discount price point for the specific category or listed in the discount tab. It could be possible to name a categorized exception PSP and utilize this discount in category exceptions? the market basket if the item matches the specification. 105 Q&A 236 Hardcopy price list and PSS price list. Some Manufacturers responding to all Bands will have a One printed hard copy and an electronic copy is required with the submission of the proposal. large volume of product that will produce up to 8” of paper double sided creating a massive amount of paper just for one price list. Would WSCA-NASPO consider only requiring a USB Drive or CD for those Manufacturers responding to all Bands with this type of large volume?

106 References Over the last four years we have worked primarily through the WSCA contract. We do have a few Yes. State and Local Government contracts but we have mainly focused on WSCA business. My question is can we use Participating Addendums as references? 107 Section 1(F)(1), Dollar Now that Storage Software is permitted to be sold after purchase of Storage equipment does the Software purchases are considered a part of the configuration limit of the equipment. Configuration is defined Limits Peripherals Dollar limit also apply Storage Software? (Often the price of Storage Software is as the combination of hardware and software components that make up the total functioning system. much higher than just $5,000, due to the nature of the Storage Band involving large units of equipment and Enterprise deployments.) 108 Section 1(H), Definitions, Since Acceptance Testing may now be negotiated by the Individual States, can we remove all the The Acceptance definition has been deleted. Section 2B28 has been deleted in its entirety and replaced with and Section 2(B)(28) language starting from, “The Purchasing Entity will make every effort to notify the Contractor within terms regarding Acceptance and Acceptance Testing. (30) calendar days . . .” ? The individual State with the Contractor should be able to decide/negotiate which time period will be sufficient for notification of acceptance. Since the test is whether the products meet the manufacturer’s Specifications, it is usually possible to determine this much sooner after delivery than 30 days. Typically ten days is plenty of time.

Page 8 of 11 MN WSCA-NASPO COMPUTER EQUIPMENT ADDENDUM 5 - RESPONSES TO QUESTIONS DUE 11/22/13 109 Section 1, G. Restrictions replacement language refers to only Server and Storage, while many large volume Software for desktops, notebooks and tablets must be ordered with the original purchase. Service Restrictions deployments for software on desktops, notebooks or tablets may be done on-site after the Deployment for large volume orders are negotiated with the Participating Entity. purchase and delivery of the product. Vendor respectfully requests that this be available for all bands. 110 Section 1, G. Replacement language refers to only Server and Storage, while many large volume deployments Software for desktops, notebooks and tablets must be ordered with the original purchase. It is possible for a Restrictions for software on desktops, notebooks or tablets may be done on-site after the purchase and delivery Participating Entity to negotiate the deployment of the software purchased with the equipment on-site. of the product. Vendor respectfully requests that this be available for all bands or at least the option to include this for each band if the procuring entity references on the Purchase Order that the software purchased is intended and related to the product purchase with a reference to that PO.

111 Section 1, G. Restrictions. Many procuring agencies require the ability to cut separate purchase orders for the This would be determined and managed by the Participating Entity. Restrictions hardware and the software purchase for all Bands, not just Server and Storage. Will you consider allowing procuring entities to note on the PO that the software purchase was intended at the time the hardware was procured so this is documented for auditing purposes for all bands?

112 Section 12 Page 24, Section 12 and Page 34, Section 18 Jurisdiction and Venue provisions are conflicting with The State does not see a conflict. Section 12 applies to the Order placed against the Master Agreement or respect to Participating States other than Minnesota. Will the State modify the language to the effects of the Participating Addendum. If a state has a dispute over their Order placed or their terms of eliminate the conflict? their participating addendum, the venue is their state, not Minnesota. Section 18 applies to the Master Agreement Terms since Minnesota is the lead state and is responsible for drafting the RFP, negotiating the terms of the RFP, awarding the RFP and the negotiated terms of the Master Contract, the venue is Minnesota. 113 Section 2 Page 16, Section 2 and page 22, Section 2 Order of Precedence language indicates that, although The Order of Precedence language has been modifed. See revised RFP in Addendum 5. The solicitation the State may accept portions of a vendor’s response to the solicitation, if the response is at language prevails unless a mutually agreed exception has been negotiated. variance with the solicitation, the solicitation language remains controlling, despite the State’s acceptance of the response. Will the State modify the language to eliminate the conflict?

114 Section 2 Page 16, Section 2 and page 22, Section 2 Order of Precedence language indicates that, “Contract The responder is to utilize the Exceptions Form provided in the solicitation. Vendor terms and conditions that apply to this Master Agreement are only those that are expressly accepted by the Lead State and must be in writing and attached to the Master Agreement as an Exhibit or Attachment.” If the vendor wishes to submit such terms and conditions (e.g., warranty and software licensing) for ultimate inclusion in an awarded contract, where does the State expect such terms and conditions to be located within the vendor’s proposal?

115 Section 2 (32) In order to consider, and agree with the terms as written, we are asking that the following broad Section 5: Evaluation Process states: Points will be awarded based on the level of acceptance of the Terms statements be clarified - please define the meaning of, and full scope of the and Conditions as specified in this RFP. Acceptance of all terms and conditions will result in the award of the statement/requirement: (a) the product performs according to specificaitons (b) the Product is maximum points available. Responders should note that the State reserves the right to pursue negotiations suitable for ordinary purposes for which such Product is used (c) the Product is designed an on any exception taken in Phase III. Responders should also note that the awarding of points does not manufactured in a commercially reasonable manner. Does the statement "in the event of a defect automatically mean that the State has accepted the Responder’s proposed language. in materials or workmanship," meet your requirement for warranty statement: (3) the Product is free of defects? 116 Section 2(B)(30)(a) Since this clause address title, can we remove the reference to “computer programs” from the first This term will not be changed at this time. Section 5: Evaluation Process states: Points will be awarded based sentence? Computer programs, even if created as part of this contract, will typically be licensed, on the level of acceptance of the Terms and Conditions as specified in this RFP. Acceptance of all terms and and title/licensing of software has now been addressed elsewhere. conditions will result in the award of the maximum points available. Responders should note that the State reserves the right to pursue negotiations on any exception taken in Phase III. Responders should also note that the awarding of points does not automatically mean that the State has accepted the Responder’s proposed language. 117 Section 2(C)(17) IP Request modification of the first sentence, which says “warrants” but this is not a warranty This term will not be changed at this time. Section 5: Evaluation Process states: Points will be awarded based Indemnification provision – it’s an Indemnification provision. Request change to, “The Contract Vendor will on the level of acceptance of the Terms and Conditions as specified in this RFP. Acceptance of all terms and indemnify the State for any proven infringement of a valid patent, copyright or trademark right.” conditions will result in the award of the maximum points available. Responders should note that the State reserves the right to pursue negotiations on any exception taken in Phase III. Responders should also note that the awarding of points does not automatically mean that the State has accepted the Responder’s proposed language.

Page 9 of 11 MN WSCA-NASPO COMPUTER EQUIPMENT ADDENDUM 5 - RESPONSES TO QUESTIONS DUE 11/22/13 118 Section 2(C)(30) Since in Section 2(B)(10) risk of loss language was removed to allow for transfer of risk upon This term will not be changed at this time. Section 5: Evaluation Process states: Points will be awarded based delivery, we request that this language is similarly modified to remove the part after the comma on the level of acceptance of the Terms and Conditions as specified in this RFP. Acceptance of all terms and starting with “and installation by . . .” conditions will result in the award of the maximum points available. Responders should note that the State reserves the right to pursue negotiations on any exception taken in Phase III. Responders should also note that the awarding of points does not automatically mean that the State has accepted the Responder’s proposed language. 119 Section 2, A 17; Cost It specifically notes for the narrative to be printed double sided for the hardcopy. Is the Cost The Cost Proposal may be presented single sided or double sided. Proposal Proposal hardcopy to be printed double sided as well? 120 Section 2, Master Please provide an example of how the ADA would apply to Information Technology products The State does not have an example at this time. Responder may indicate if and why they believe that ADA is Agreement Terms and provided by the Contractor. not applicable to their resonse as an exception in their response. Conditions, C: Minnesota Terms, Section 5: Question 111

121 Section 2, Master Vendor includes the purchase order and contract numbers clearly listed on the acknowledgements, It is understood there may be instances where the contract number and purchase order may not be possible Agreement Terms, #21 invoices and other correspondence that may be applicable, such as the packing slips. However, on a shipping label. Contract Vendor shall make all efforts to clearly identify the order on the shipping label if Page 25, Order due to the limitations of text for shipping labels for transportation purposes with many of the possible. Numbers different transportation Companies and options, including the contract number and purchase order number on “shipping labels” may not be feasible or possible. Vendor respectfully requests your consideration to remove the requirement for “shipping labels.”

122 Section 2.C.2 page 29 Last paragraph of Accessibility Standards instructs: Click here for link to VPATS for both Section This link was provided for informational purposes only as to provide a copy of the VPAT form. It is correct that 508 VPAT and WCAG 2.0 VPAT. When opened, the Section 508 VPAT document states Section 508 VPAT form is NOT to be submitted with the response ONLY the WCAG VPAT as detailed in the “Completion of this form is mandatory. If you fail to complete this form, your RFP response is RFP. invalid”. This form is NOT included within the RFP as a form. Is it correct to assume that the Section 508 VPAT form IS NOT to be submitted and that ONLY the WCAG 2.0 VPAT pages that MN provided are to be completed and submitted? 123 Section 2: WSCA- The response and revised language in Section 2B29 to questions 99 and 100 don’t seem to be Section 2B29 is modified with the addition of the following sentence. "The Contractor Vendor shall be NASPO Terms and responsive to the issues pointed out regarding Contract Vendor performance and Products under responsible under this provision to the extent a 'system' is defined at the time of the Order; otherwise the Conditions, Provision 29: maintenance contracts. We respectfully request that you either delete this provision (since it will rights of the Purchasing Entity shall be governed by the Warranty." Section 5: Evaluation Process states: System Failure or likely be covered under warranty) or clarify what is meant by the term “system”. Since software is Damage on page 28 either preloaded or downloaded by link on the devices pursuant to Section 1. G. Restrictions on Points will be awarded based on the level of acceptance of the Terms and Conditions as specified in this (Q&A Matrix, #99, 100) page 10 and no Cloud Services will be offered under this contract pursuant to Section 1. H. RFP. Acceptance of all terms and conditions will result in the award of the maximum points available. Definition of “Cloud Service” on page 11, what "system" is being referred to in this provision? Is it Responders should note that the State reserves the right to pursue negotiations on any exception taken in the device system or a network or “system” that the devices connect to? If it is the former we Phase III. Responders should also note that the awarding of points does not automatically mean that the request deletion of this provision as it will be redundant with the warranty section. State has accepted the Responder’s proposed language.

124 Section 3 D9 If the Vendor is utilizing SciQuest for its eMarketcenter, is the Vendor responsible for evaluating No. The WCAG 2.0 VPAT is required with the response in regards to the website the vendor will provide ScieQuest‘s offering for compliance with accessibility guidelines and/or payment security unrelated to the Sciquest emarketcenter. Reasonable efforts must be made by the Contract Vendor to comply requirements? with accessibility guidelines in utilizing Sciquest. See Section 2C23 for requirements of Contract Vendor related to payment security requirements. 125 Section 3, D; 7) COMMERCIAL OFF THE SHELF AND OPERATING SYSTEM SOFTWARE: This section notes, Individual States reserve the right to review ALL license agreements prior to placing an order. The intent of Question 161 that upon request software license agreements are to be presented to the ordering agency. It also this item is to ensure responders are aware that upon request they must supply a State a license agreement notes to provide updated releases of licenses originally purchase through the entire contract term. in advance of an order and negotiate the agreement directly with the State. Updated releases of licenses originally purchased typically would be available upon request at a cost unless a procuring entity purchased maintenance software support or a software agreement that provided upgrades as part of the cost for the maintenance software support. Are these type of requests for all software licensing be upon request?

126 Section 4 For the Band 6- Ruggedized Price Workbook, there are minimum specs for the ruggedized See revised pricing workbooks in Addendum 5. product. The RFP mentions that any device in Band 6 can be also submitted in Bands 1-5. Will the State modify the minimum non-environmental specs, as no tablet or printer or storage device has a 13.3 inch screen and weighs 9 lbs?

Page 10 of 11 MN WSCA-NASPO COMPUTER EQUIPMENT ADDENDUM 5 - RESPONSES TO QUESTIONS DUE 11/22/13 127 Section 4 Cost Proposal, In Amendment 3, the revised RFP instructs Responders to use November 15 as the date for the The PSS pricing will be utilized throughout the life of the contract to document the full offering of the vendor items 1 & 3 baseline price list. Should the PSS also be based on November 15 pricing? and verify the discounts against the current baseline pricing are applied. The initial PSS should be based on the required November 15th baseline pricing. 128 Section 4, Page 73 We understand the PSS in all inclusive of all products that we wish to be listed on our contract. The Baseline Price list at a minimum should contain the items offered on the PSS. However, is Baseline Pricing to be submitted for only the market basket items, the entire manufacturer’s line, or the entire manufacturer’s line plus all third party products? Please clarify.

129 Section 4. 15 The Cost Proposal table in Section 4 is incorrectly numbered with #15 missing. There should be 16 Numbering has been changed in revised RFP provided in Addendum 5. requirements not 17. Will this be corrected in a new Addendum of the RFP? 130 Section 4: Cost The revision notes, “It states It is understood there may be categories within a band which carry a The minimum discount of 50% would be utilized for all items that are not categorized by exceptions. Proposal: 1 – Answer to different discount than the minimum stated. For example, the minimum discount for the laptop Question 191 band could be 50%. The responder may name an additional category of laptops “Laptop Brand X” at 45% and “Laptop Brand Y” at 60%.” Based on this example, what would be an example of when the minimum discount of 50% would be used under an awarded contract?

131 Shipping With regards to the FOB destination shipping term, is it expected that the Minimum Discount for It is required that shipping and delivery is included in the price. Prices include delivery, FOB Destination with Band will include the shipping and delivery costs, or can that be negotiated with the individual all transportation and handling. participating states upon award? 132 Third Party Products If an OEM submits an offer and is not awarded, will their products be allowed to be offered by other It is possible that if an OEM is not awarded, their products could be allowed as a third party product by respondents? Or should both the OEM and the other respondent submit? another manufacturer. It is up to the responder to determine how to present their proposal and what products to include. 133 VPAT Are you able to accept a VPAT by time of award if a vendor is currently engaged in the certification ONLY the WCAG 2.0 VPAT is required with the response in regards to the website the vendor will provide if process and it may not meet the RFP submission deadline? awarded a Contract. Accessibility is a scored item. Providing at the time of award would not allow for the item to be scored as part of the evaluation process.

Page 11 of 11 Materials Management Division 112 Administration Building 50 Sherburne Avenue St. Paul, MN 55155 Voice: 651.296.2600 Fax: 651.297.3996

SOLICITATION ADDENDUM

Addendum No.: 1 Date of Addendum: October 30, 2013

Due Date, Time: November 18, 2013 3:00 p.m. Revised Date, Time: n/a

Acquisition Mgmt. Spec.: Susan Kahle Agency: Administration

Web Registration No.: 19512 MN WSCA-NASPO Computer Equipment (Desktops, Laptops, Tablets, Servers, Storage and Ruggedized Devices including Title: Related Peripherals & Services)

SCOPE OF ADDENDUM

An Addendum is forthcoming and will be issued to:

1. Provide answers to questions submitted by the October 7th deadline. 2. Provide the pricing workbooks in excel format. 3. Extend the due date.

This addendum shall become part of the solicitation and MAY be returned with the response by the due date and time of the solicitation.

COMPANY NAME:______SIGNATURE: ______

DATE:______PRINTED NAME: ______

TITLE:______

Persons with a hearing or speech disability may contact us by dialing 711 or 1.800.627.3529. addendum (10/13) Page 1 Materials Management Division 112 Administration Building 50 Sherburne Avenue St. Paul, MN 55155 Voice: 651.296.2600 Fax: 651.297.3996

SOLICITATION ADDENDUM

Addendum No.: 2 Date of Addendum: November 7, 2013 November 18, 2013 Due Date, Time: 3:00 p.m. CT Revised Date, Time: December 6, 2013 3:00 p.m. CT

Acquisition Mgmt. Spec.: Susan Kahle Agency: Administration

Web Registration No.: 19512 MN WSCA-NASPO Computer Equipment (Desktops, Laptops, Tablets, Servers, Storage and Ruggedized Devices including Title: Related Peripherals & Services)

SCOPE OF ADDENDUM

The purpose of this addendum is to: 1. Extend the due date and time to December 6, 2013 at 3:00 p.m. CT

Additional Addendums are forthcoming and will be issued to: 1. Provide responses to questions submitted by the October 7th deadline. 2. Provide the RFP document detailing revisions. 3. Provide the pricing workbooks in Excel format. 4. Allow an additional time period for questions regarding the State’s responses to questions received. 5. Allow an additional time period for questions in regards to the pricing workbooks provided in Excel format.

This addendum shall become part of the solicitation and MAY be returned with the response by the due date and time of the solicitation.

COMPANY NAME:______SIGNATURE: ______

DATE:______PRINTED NAME: ______

TITLE:______

Persons with a hearing or speech disability may contact us by dialing 711 or 1.800.627.3529. addendum (10/13) Page 1

Materials Management Division 112 Administration Building 50 Sherburne Avenue St. Paul, MN 55155 Voice: 651.296.2600 Fax: 651.297.3996

SOLICITATION ADDENDUM

Addendum No.: 3 Date of Addendum: November 15, 2013 December 6, 2013 3:00 p.m. Due Date, Time: CT Revised Date, Time: December 11, 2013 3:00 p.m. CT

Acquisition Mgmt. Spec.: Susan Kahle Agency: Administration

Web Registration No.: 19512 MN WSCA-NASPO Computer Equipment (Desktops, Laptops, Tablets, Servers, Storage and Ruggedized Devices including Title: Related Peripherals & Services)

SCOPE OF ADDENDUM

The purpose of this addendum is to: 1. Provide RESPONSES to questions submitted by the October 7th deadline. Click to download: MN WSCA-NASPO COMPUTER RESPONSES

2. Provide the revised RFP document. This provides revisions to the RFP and replaces in full the RFP posted 09/16/13. Click to download: a. REDLINED MN-WSCA-NASPO Computer RFP - 2013_1115 ADDENDUM 3 b. WSCA-NASPO Computer RFP - 2013_1115

3. Provide the pricing workbooks in Excel format. Click to download: Band 1 - Desktop Price Workbook Band 2 - Laptop Price Workbook Band 3 - Tablet Price Workbook Band 4 - Server Price Workbook Band 5 - Storage Price Workbook Band 6 - Ruggedized Price Workbook

4. Questions and request for clarifications are due November 22, 2013 2:00 P.M. Central Time. See below for detail on questions allowed: a. Questions regarding the responses provided in Item 1 above. b. Questions regarding the pricing workbooks provided in Item 3 above.

This addendum shall become part of the solicitation and MUST be returned with the response by the due date and time of the solicitation.

COMPANY NAME: ______SIGNATURE: ______

DATE: ______PRINTED NAME: ______

TITLE: ______

Persons with a hearing or speech disability may contact us by dialing 711 or 1.800.627.3529. addendum (10/13) Page 1 Materials Management Division 112 Administration Building 50 Sherburne Avenue St. Paul, MN 55155 Voice: 651.296.2600 Fax: 651.297.3996

SOLICITATION ADDENDUM

Addendum No.: 4 Date of Addendum: December 3, 2013 December 11, 2013 3:00 p.m. Due Date, Time: CT Revised Date, Time: December 18, 2013 3:00 p.m. CT

Acquisition Mgmt. Spec.: Susan Kahle Agency: Administration

Web Registration No.: 19512 MN WSCA-NASPO Computer Equipment (Desktops, Laptops, Tablets, Servers, Storage and Ruggedized Devices including Title: Related Peripherals & Services)

SCOPE OF ADDENDUM

The purpose of this addendum is to:

1. Extend the due date to December 18, 2013 3:00 p.m. CT

2. Updated Pricing Workbooks for all bands will be provided in a separate addendum.

3. Responses to questions submitted by November 22, 2013 will be provided in a separate addendum.

This addendum shall become part of the solicitation and MAY be returned with the response by the due date and time of the solicitation.

COMPANY NAME:______SIGNATURE: ______

DATE:______PRINTED NAME: ______

TITLE:______

Persons with a hearing or speech disability may contact us by dialing 711 or 1.800.627.3529. addendum (10/13) Page 1 Materials Management Division 112 Administration Building 50 Sherburne Avenue St. Paul, MN 55155 Voice: 651.296.2600 Fax: 651.297.3996 SOLICITATION ADDENDUM

Addendum No.: 5 Date of Addendum: December 11, 2013 December 18, 2013 3:00 p.m. Due Date, Time: CT Revised Date, Time: January 7, 2014 3:00 p.m. C.T.

Acquisition Mgmt. Spec.: Susan Kahle Agency: Administration

Web Registration No.: 19512 MN WSCA-NASPO Computer Equipment (Desktops, Laptops, Tablets, Servers, Storage and Ruggedized Devices including Title: Related Peripherals & Services)

SCOPE OF ADDENDUM The purpose of this addendum is to:

1. Extend the due date to January 7, 2014.

2. Provide RESPONSES to questions submitted by November 22, 2013 – click to download: http://www.mmd.admin.state.mn.us/process/admin/documents/19512Add5_2013_1211qa.pdf

3. Provide UPDATED Pricing Workbooks – click to download. The State reserves the right to clarify pricing workbook submissions to ensure correct workbooks have been submitted. http://www.mmd.admin.state.mn.us/process/admin/spreadsheets/19512Add5_Band1-DesktopPriceWorkbookv2.xlsx http://www.mmd.admin.state.mn.us/process/admin/spreadsheets/19512Add5Band2-LaptopPriceWorkbookV2.xlsx http://www.mmd.admin.state.mn.us/process/admin/spreadsheets/19512Add5Band3-TabletPriceWorkbookv2.xlsx http://www.mmd.admin.state.mn.us/process/admin/spreadsheets/19512Add5Band4-ServerPriceWorkbookv2.xlsx http://www.mmd.admin.state.mn.us/process/admin/spreadsheets/19512Add5Band5-StoragePriceWorkbookv2.xlsx http://www.mmd.admin.state.mn.us/process/admin/spreadsheets/19512Add5Band6-RuggedizedPriceWorkbookv2.xlsx

4. Provide the revised RFP document. This replaces in full the RFP posted 9/16/13 & 11/15/13.Two versions are provided a) Redlined - details changes made to the RFP since the 11/15/13 version. B) pdf version with all changes accepted. Click to download: a. http://www.mmd.admin.state.mn.us/process/admin/documents/19512Add52013_1211REDLINEDMNWSCA- NASPOComputerRFP.doc b. http://www.mmd.admin.state.mn.us/process/admin/documents/19512Add52013_1211PDFMNWSCA- NASPOComputerRFP.pdf

This addendum shall become part of the solicitation and MUST be returned with the response by the due date and time of the solicitation.

COMPANY NAME:______SIGNATURE: ______

DATE:______PRINTED NAME: ______

TITLE:______

Persons with a hearing or speech disability may contact us by dialing 711 or 1.800.627.3529. addendum (10/13) Page 1 Materials Management Division 112 Administration Building 50 Sherburne Avenue St. Paul, MN 55155 Voice: 651.296.2600 Fax: 651.297.3996 SOLICITATION ADDENDUM

Addendum No.: 6 Date of Addendum: December 13, 2013

Due Date, Time: January 7, 2014 3:00 p.m. C.T. Revised Date, Time:

Acquisition Mgmt. Spec.: Susan Kahle Agency: Administration

Web Registration No.: 19512 MN WSCA-NASPO Computer Equipment (Desktops, Laptops, Tablets, Servers, Storage and Ruggedized Devices including Title: Related Peripherals & Services)

SCOPE OF ADDENDUM The purpose of this addendum is to:

1. The link provided for Band 1 in Addendum 5 was incorrect and has been corrected. The link is also provided below: http://www.mmd.admin.state.mn.us/process/admin/spreadsheets/19512Add5_Band1-DesktopPriceWorkbookv2.xlsx DesktopPriceWorkbookv2.xlsx

2. Clarification regarding the Baseline Price List Date: The Baseline Price List submitted may be dated an alternate date. However, the market basket pricing submitted must be representative of the pricing for an order placed on November 15, 2013 for purposes of evaluation.

This addendum shall become part of the solicitation and MAY be returned with the response by the due date and time of the solicitation.

COMPANY NAME:______SIGNATURE: ______

DATE:______PRINTED NAME: ______

TITLE:______

Persons with a hearing or speech disability may contact us by dialing 711 or 1.800.627.3529. addendum (10/13) Page 1 Materials Management Division 112 Administration Building 50 Sherburne Avenue St. Paul, MN 55155 Voice: 651.296.2600 Fax: 651.297.3996 SOLICITATION ADDENDUM

Addendum No.: 7 Date of Addendum: December 19, 2013

Due Date, Time: January 7, 2014 3:00 p.m. C.T. Revised Date, Time:

Acquisition Mgmt. Spec.: Susan Kahle Agency: Administration

Web Registration No.: 19512 MN WSCA-NASPO Computer Equipment (Desktops, Laptops, Tablets, Servers, Storage and Ruggedized Devices including Title: Related Peripherals & Services)

SCOPE OF ADDENDUM The purpose of this addendum is to:

1. Provide Version 3 of Band 4: Server Pricing Workbook. Revisions include: a. The Processor in Base Equipment Spec 2 has been changed to “Xeon E5-2600 series” b. The option and upgrades in the Equipment pricing tab have been synced with the upgrade on the Spec 1 tab. c. The upgrade on Spec 2 tab has been deleted.

Click here to download Version 3 of Band 4: Server Pricing Workbook: http://www.mmd.admin.state.mn.us/process/admin/spreadsheets/19512Band4ServerPriceWorkbookv3.xlsx

Responders are to use the revised information to submit pricing for Band 4.

This addendum shall become part of the solicitation and MUST be returned with the response by the due date and time of the solicitation.

COMPANY NAME:______SIGNATURE: ______

DATE:______PRINTED NAME: ______

TITLE:______

Persons with a hearing or speech disability may contact us by dialing 711 or 1.800.627.3529. addendum (10/13) Page 1 Materials Management Division 112 Administration Building 50 Sherburne Avenue St. Paul, MN 55155 Voice: 651.296.2600 Fax: 651.297.3996 SOLICITATION ADDENDUM

Addendum No.: 8 Date of Addendum: December 27, 2013

Due Date, Time: January 7, 2014 3:00 p.m. C.T. Revised Date, Time:

Acquisition Mgmt. Spec.: Susan Kahle Agency: Administration

Web Registration No.: 19512 MN WSCA-NASPO Computer Equipment (Desktops, Laptops, Tablets, Servers, Storage and Ruggedized Devices including Title: Related Peripherals & Services)

SCOPE OF ADDENDUM The purpose of this addendum is to:

1. PROVIDE VERSION 4 OF BAND 4: SERVER PRICING WORKBOOK. Responders are to use the revised information to submit pricing for Band 4. Revision includes: The Processor in Base Equipment TAB Specs 2, cell D12 has been changed to “Four Xeon E5-4640 series (2.4Ghz, 8-core)”. This processor supports the minimum requirement of 4 sockets. Click here to download Version 4 of Band 4: Server Pricing Workbook: http://www.mmd.admin.state.mn.us/process/admin/spreadsheets/19512Add8Band4ServerPriceV4.xls

2. CLARIFICATION ON WARRANTY PRICING: It is understood that responders may have varying base warranties. For example, in Band 3 – Tablet Price Workbook, Services Tab – a warranty upgrade is listed for accidental damage. If a responder includes accidental damage in their base warranty they should indicate this on the pricing workbook in their offer.

3. PROVIDE VERSION 3 OF BAND 5: STORAGE PRICING WORKBOOK. Responders are to use the revised information to submit pricing for Band 5. Revision includes: Added Line 20 to the equipment pricing tab (ST20-1). To clarify: Responders are to provide capacity and drives based on the upgraded configuration to Spec 1- 12TB total raw and Spec 2 - 16TB raw. Click here to download Version 3 of Band 5: Storage Pricing Workbook: http://www.mmd.admin.state.mn.us/process/admin/spreadsheets/19512Add8Band5StoragePriceV3.xls

This addendum shall become part of the solicitation and MUST be returned with the response by the due date and time of the solicitation.

COMPANY NAME:______SIGNATURE: ______

DATE:______PRINTED NAME: ______

TITLE:______

Persons with a hearing or speech disability may contact us by dialing 711 or 1.800.627.3529. addendum (10/13) Page 1 Materials Management Division 112 Administration Building 50 Sherburne Avenue St. Paul, MN 55155 Voice: 651.296.2600 Fax: 651.297.3996 SOLICITATION ADDENDUM

Addendum No.: 9 Date of Addendum: January 2, 2014

Due Date, Time: January 7, 2014 3:00 p.m. C.T. Revised Date, Time: January 14, 2014, 3:00 p.m. C.T.

Acquisition Mgmt. Spec.: Susan Kahle Agency: Administration

Web Registration No.: 19512 MN WSCA-NASPO Computer Equipment (Desktops, Laptops, Tablets, Servers, Storage and Ruggedized Devices including Title: Related Peripherals & Services)

SCOPE OF ADDENDUM The purpose of this addendum is to:

1. Extend the due date of the solicitation to January 14, 2014, 3:00 p.m. C.T.

This addendum shall become part of the solicitation and MAY be returned with the response by the due date and time of the solicitation.

COMPANY NAME:______SIGNATURE: ______

DATE:______PRINTED NAME: ______

TITLE:______

Persons with a hearing or speech disability may contact us by dialing 711 or 1.800.627.3529. addendum (10/13) Page 1 Materials Management Division 112 Administration Building 50 Sherburne Avenue St. Paul, MN 55155 Voice: 651.296.2600 Fax: 651.297.3996 SOLICITATION ADDENDUM

Addendum No.: 10 Date of Addendum: January 9, 2014

Due Date, Time: January 14, 2014, 3:00 p.m. CT Revised Date, Time: January 21, 2014, 3:00 CT

Acquisition Mgmt. Spec.: Susan Kahle Agency: Administration

Web Registration No.: 19512 MN WSCA-NASPO Computer Equipment (Desktops, Laptops, Tablets, Servers, Storage and Ruggedized Devices including Title: Related Peripherals & Services)

SCOPE OF ADDENDUM The purpose of this addendum is to:

1. Extend the due date of the solicitation to January 21, 2014, 3:00 p.m. CT.

2. Instruct responders that may have already postmarked a response that additional “MUST” addenda are to be postmarked and sent as a separate package. Addenda will state “MUST” be returned or “MAY” be returned as the final statement of each addenda.

3. If an addendum requires the responder to change the response, additional materials may be sent. These are to be clearly marked and detailed regarding the changes to the response.

4. Clarify that the minimum specifications are provided in the Price Workbooks. Manufacturer specific items may be substituted for the minimum specification if the manufacturer is able to provide an approved equal. This is stated in Section 4: Cost Proposal; Item 2. 5. Inform responders that an addendum is forthcoming to further clarify pricing workbooks.

This addendum shall become part of the solicitation and MAY be returned with the response by the due date and time of the solicitation.

COMPANY NAME:______SIGNATURE: ______

DATE:______PRINTED NAME: ______

TITLE:______

Persons with a hearing or speech disability may contact us by dialing 711 or 1.800.627.3529. addendum (10/13) Page 1 Materials Management Division 112 Administration Building 50 Sherburne Avenue St. Paul, MN 55155 Voice: 651.296.2600 Fax: 651.297.3996 SOLICITATION ADDENDUM

Addendum No.: 11 Date of Addendum: January 16, 2014

Due Date, Time: January 21, 2014, 3:00 p.m. C.T. Revised Date, Time: January 28, 2014 3:00 p.m. C.T. Acquisition Mgmt. Spec.: Susan Kahle Agency: Administration

Web Registration No.: 19512

MN WSCA-NASPO Computer Equipment (Desktops, Laptops, Tablets, Servers, Storage and Ruggedized Devices including Title: Related Peripherals & Services)

SCOPE OF ADDENDUM

The purpose of this addendum is to:

1. Inform responders the printer pricing for printers in ALL Pricing Workbooks was transposed on the pricing pages. To be specific: The black and white printer price entered populated the color printer pricing. The color printer pricing entered populated the black and white pricing. To ensure the State has the correct printer pricing responders are given one of the following options:

___Acknowledge the pricing workbook(s) has already been submitted. Responder recognizes, as detailed above, that the printer pricing has been transposed on the pricing pages. Responder is authorizing the State of Minnesota to correct pricing pages.

___Acknowledge the pricing workbook(s) has already been submitted. The printer pricing issue was recognized by the responder previous to submitting and printer pricing is correct.

___Resubmit applicable pricing workbooks provided in this addendum.

2. Provide clarification regarding the specifications on the Band 5: Storage Price Workbook: a) Responder is to determine drive size based on minimum requirement for Raw Disk Capacity – Base (Row D12) on Spec 1 of 4 TB and Spec 2 of 8TB. The drive size must also be sufficient to meet the upgraded configuration (Row C39) on Spec 1 to 12TB installed raw and Spec 2 to 16TB installed raw. The response must meet or exceed the minimum specifications. b) RAID options changed to “Specify” allowing the responder to specify the RAID number. (Specs-Item 1 TAB, Cell D16 and Specs-Item 2 TAB, Cell D16).

Persons with a hearing or speech disability may contact us by dialing 711 or 1.800.627.3529. addendum (10/13) Page 1 3. Provide revised Pricing Workbooks reflecting corrections to populate the printer pricing correctly and modification to the Band 5: Storage Price Workbook detailed in 2.b. above. Located here:

http://www.mmd.admin.state.mn.us/process/admin/spreadsheets/19512Band1DesktopAdd11.xls

http://www.mmd.admin.state.mn.us/process/admin/spreadsheets/19512Band2LaptopAdd11.xls

http://www.mmd.admin.state.mn.us/process/admin/spreadsheets/19512Band3TabletAdd11.xls

http://www.mmd.admin.state.mn.us/process/admin/spreadsheets/19512Band4ServerAdd11.xls

http://www.mmd.admin.state.mn.us/process/admin/spreadsheets/19512Band5StorageAdd11.xls

http://www.mmd.admin.state.mn.us/process/admin/spreadsheets/19512Band6RuggedizedAdd11.xls

4. Extend due date to January 28, 2014 3:00 p.m. C.T.

This addendum shall become part of the solicitation and MUST be returned with the response by the due date and time of the solicitation.

COMPANY NAME:______SIGNATURE: ______

DATE:______PRINTED NAME: ______

TITLE:______

Persons with a hearing or speech disability may contact us by dialing 711 or 1.800.627.3529. addendum (10/13) Page 2 Materials Management Division 112 Administration Building 50 Sherburne Avenue St. Paul, MN 55155 Voice: 651.296.2600 Fax: 651.297.3996 SOLICITATION ADDENDUM

Addendum No.: 12 Date of Addendum: January 22, 2014

Due Date, Time: January 28, 2014; 3:00 p.m. C.T. Revised Date, Time: January 29, 2014; 3:00 p.m. C.T.

Acquisition Mgmt. Spec.: Susan Kahle Agency: Administration

Web Registration No.: 19512 MN WSCA-NASPO Computer Equipment (Desktops, Laptops, Tablets, Servers, Storage and Ruggedized Devices including Title: Related Peripherals & Services)

SCOPE OF ADDENDUM

PURPOSE OF THIS ADDENDUM:

1) Extend the opening date to: January 29, 2014; 3:00 p.m. C.T.

2) Issue revised RFP dated 01/22/2014. This version includes revisions resulting from addenda. Click to download: http://www.mmd.admin.state.mn.us/process/admin/documents/19512MNWSCA- NASPOComputerRFP2014-01-22.pdf

3) Issue Band 4 – Server Price Workbook Version 6. Past version did not populate entries on the Server 1 Spec Tab to the Equipment Pricing Tab. Responder may resubmit new version. The State reserves the right to transfer the amounts from the Server 1 Spec Tab to the Equipment Pricing Tab if the submitted version is not populated. Click to download: http://www.mmd.admin.state.mn.us/process/admin/spreadsheets/19512Band4- ServerPriceWorkbookv6.xlsx

4) Clarify: A password is NOT needed to unprotect worksheets.

This addendum shall become part of the solicitation and MAY be returned with the response by the due date and time of the solicitation.

COMPANY NAME:______SIGNATURE: ______

DATE:______PRINTED NAME: ______

TITLE:______

Persons with a hearing or speech disability may contact us by dialing 711 or 1.800.627.3529. addendum (10/13) Page 1 Materials Management Division 112 Administration Building 50 Sherburne Avenue St. Paul, MN 55155 Voice: 651.296.2600 Fax: 651.297.3996 SOLICITATION ADDENDUM

Addendum No.: 13 Date of Addendum: January 24, 2014 January 29, 2014; 3:00 p.m. Due Date, Time: C.T. Revised Date, Time:

Acquisition Mgmt. Spec.: Susan Kahle Agency: Administration

Web Registration No.: 19512 MN WSCA-NASPO Computer Equipment (Desktops, Laptops, Tablets, Servers, Storage and Ruggedized Devices including Title: Related Peripherals & Services)

SCOPE OF ADDENDUM PURPOSE OF THIS ADDENDUM:

1) To Clarify: The RFP version 01/22/2014 provided in Addendum 12 does not need to be submitted with the response. This version was provided as courtesy to responders to clarify and confirm addenda changes.

2) Allow responders to acknowledge and accept all previous addenda (Addenda 1-13) provided in relation to the solicitation. By submitting this addendum the responder agrees to accept all previous addendums as issued by the State. The addenda are summarized below for informational purposes. See the individual Addendum for specific language and changes for which the Responder is acknowledging are becoming part of the solicitation.

ADDENDUM 1: 10/30/2013 Announced an addendum would be issued soon to 1) provide answers to questions, provide pricing, extend due date.

ADDENDUM 2: 11/07/2013 Extended the due date to December 6, 2013

ADDENDUM 3: 11/15/2013 1) Provided responses to questions, 2) Issued revised RFP – redline and clean version 3) Issued Pricing Workbooks, Allow for additional questions by November 22.

ADDENDUM 4: 12/03/2013 Extend to 12/18/2103

ADDENDUM 5: 12/11/2013 Extend to January 7, 2014. Provide 1) Responses to questions due November 22 2) Issued revised RFP – redline and clean version 3) Issued updated Pricing Workbooks.

ADDENDUM 6: 12/13/2013 1) The link provided for Band 1 in Addendum 5 was incorrect and has been corrected. 2. Clarification regarding the Baseline Price List Date: The Baseline Price List submitted may be dated an alternate date. However, the market basket pricing submitted must be representative of the pricing for an order placed on November 15, 2013 for purposes of evaluation.

ADDENDUM 7: 12/19/2013 Provide Version 3 of Band 4: Server Pricing Workbook. Revisions include: a. The Processor in Base Equipment Spec 2 has been changed to “Xeon E5-2600 series” b. The option and upgrades in the Equipment pricing tab have been synced with the upgrade on the Spec 1 tab. c. The upgrade on Spec 2 tab has been deleted.

Persons with a hearing or speech disability may contact us by dialing 711 or 1.800.627.3529. addendum (10/13) Page 1 ADDENDUM 8: 12/27/2013 1) provide version 4 of band 4: server pricing workbook. Revision includes: The Processor in Base Equipment TAB Specs 2, cell D12 has been changed to “Four Xeon E5-4640 series (2.4Ghz, 8-core)”. This processor supports the minimum requirement of 4 sockets. 2) Clarification on warranty pricing: It is understood that responders may have varying base warranties. For example, in Band 3 – Tablet Price Workbook, Services Tab – a warranty upgrade is listed for accidental damage. If a responder includes accidental damage in their base warranty they should indicate this on the pricing workbook in their offer. 3) Provide version 3 of band 5: storage pricing workbook. Revision includes: Added Line 20 to the equipment pricing tab (ST20-1). To clarify: Responders are to provide capacity and drives based on the upgraded configuration to Spec 1- 12TB total raw and Spec 2 - 16TB raw.

ADDENDUM 9: 01/02/2014 Extend the due date of the solicitation to January 14, 2014, 3:00 p.m. C.T.

ADDENDUM 10: 01/09/2014 1) Extend the due date of the solicitation to January 21, 2014, 3:00 p.m. CT. 2) Instruct responders that may have already postmarked a response that additional “MUST” addenda are to be postmarked and sent as a separate package. Addenda will state “MUST” be returned or “MAY” be returned as the final statement of each addenda. 3) If an addendum requires the responder to change the response, additional materials may be sent. These are to be clearly marked and detailed regarding the changes to the response. 4) Clarify that the minimum specifications are provided in the Price Workbooks. Manufacturer specific items may be substituted for the minimum specification if the manufacturer is able to provide an approved equal. This is stated in Section 4: Cost Proposal; Item 2. 5) Inform responders that an addendum is forthcoming to further clarify pricing workbooks.

ADDENDUM 11: 01/16/2014 1) Extend the due date to January 28, 2014, 3:00 p.m. CT 2) Inform responders the printer pricing for printers in ALL Pricing Workbooks was transposed on the pricing pages. To be specific: The black and white printer price entered populated the color printer pricing. The color printer pricing entered populated the black and white pricing. To ensure the State has the correct printer pricing responders are given one of the following options ___Acknowledge the pricing workbook(s) has already been submitted. Responder recognizes, as detailed above, that the printer pricing has been transposed on the pricing pages. Responder is authorizing the State of Minnesota to correct pricing pages. ___Acknowledge the pricing workbook(s) has already been submitted. The printer pricing issue was recognized by the responder previous to submitting and printer pricing is correct. ___Resubmit applicable pricing workbooks provided in this addendum 3) Provide clarification regarding the specifications on the Band 5: Storage Price Workbook: a) Responder is to determine drive size based on minimum requirement for Raw Disk Capacity – Base (Row D12) on Spec 1 of 4 TB and Spec 2 of 8TB. The drive size must also be sufficient to meet the upgraded configuration (Row C39) on Spec 1 to 12TB installed raw and Spec 2 to 16TB installed raw. The response must meet or exceed the minimum specifications. b) RAID options changed to “Specify” allowing the responder to specify the RAID number. (Specs-Item 1 TAB, Cell D16 and Specs-Item 2 TAB, Cell D16). 4) Provide revised Pricing Workbooks reflecting corrections to populate the printer pricing correctly and modification to the Band 5: Storage Price Workbook detailed in 2.b. above.

ADDENDUM 12: 1) Extend the opening date to: January 29, 2014; 3:00 p.m. C.T.2)Issue revised RFP dated 01/22/2014. This version includes revisions resulting from addenda. 3) Issue Band 4 – Server Price Workbook Version 6. Past version did not populate entries on the Server 1 Spec Tab to the Equipment Pricing Tab. Responder may resubmit new version. The State reserves the right to transfer the amounts from the Server 1 Spec Tab to the Equipment Pricing Tab if the submitted version is not populated. 4) Clarify: A password is NOT needed to unprotect worksheets.

ADDENDUM 13: 1) To Clarify: The RFP version 01/22/2014 provided in Addendum 12 does not need to be submitted with the response. This version was provided as courtesy to responders to clarify and confirm addenda changes. 2) Provide summary of addenda and allow responders to acknowledge receipt of all addenda provided in relation to the solicitation by submitting addendum 13.

This addendum shall become part of the solicitation and MAY be returned with the response by the due date and time of the solicitation.

COMPANY NAME:______SIGNATURE: ______

DATE:______PRINTED NAME: ______

TITLE:______

Persons with a hearing or speech disability may contact us by dialing 711 or 1.800.627.3529. addendum (10/13) Page 2 Materials Management Division 112 Administration Building 50 Sherburne Avenue St. Paul, MN 55155 Voice: 651.296.2600 Fax: 651.297.3996 SOLICITATION ADDENDUM

Addendum No.: 14 Date of Addendum: January 29, 2014 January 29, 2014; 3:00 p.m. Due Date, Time: C.T. Revised Date, Time: January 31, 2014; 3:00 p.m. C.T.

Acquisition Mgmt. Spec.: Susan Kahle Agency: Administration

Web Registration No.: 19512 MN WSCA-NASPO Computer Equipment (Desktops, Laptops, Tablets, Servers, Storage and Ruggedized Devices including Title: Related Peripherals & Services)

SCOPE OF ADDENDUM PURPOSE OF THIS ADDENDUM:

1. Extend the due date of the solicitation to January 31, 2014, 3:00 p.m. CT.

This addendum shall become part of the solicitation and MAY be returned with the response by the due date and time of the solicitation.

COMPANY NAME: ______SIGNATURE: ______

DATE: ______PRINTED NAME: ______

TITLE: ______

Persons with a hearing or speech disability may contact us by dialing 711 or 1.800.627.3529. addendum (10/13) Page 1