Request For Proposal - Office of General Services · Web viewThe Office of the State Comptroller (OSC) offers an "electronic payment" option in lieu of issuing checks. Contact OSC

New York StateRequest for Proposal

Electronic Value Transfer

September 3, 2008

Prepared by: NYS Office of General ServicesProcurement Services Group and theElectronic Value Transfer Administrator

(A completed copy of this form must be submitted with the proposal. A copy of this document can be found in the Bidder Response Forms section)

State of New York Executive Department Office of General Services

Procurement Services GroupCorning Tower - 38th Floor

Empire State PlazaAlbany, NY 12242

REQUEST FOR PROPOSALSIMPORTANT: SEE “BID SUBMISSION” CLAUSES HEREIN

E-Mail and/or Faxed Bid Submissions Are NOT Acceptable

BID OPENING DATE:

December 4, 2008TI TIME: 11:00 AM

TITLE: Group 79008 - Bank Card Services – Electronic Value Transfer (EVT)

Classification Code(s): 84

REQUEST FOR PROPOSALS NUMBER: 21312

SPECIFICATION REFERENCE: As Incorporated in the Request for Proposals

CONTRACT PERIOD: Upon OSC approval for 5 yearsDESIGNATED CONTACTS: Team #12

Primary Contact:

Nicholas C. Jacobia, Purchasing Officer Telephone No. (518) 473-4651E-mail: [email protected]

Secondary Contact:

Kathy McAuley, Team LeaderTelephone No. (518) 486-6812E-mail: [email protected]

Additional Contact:Christopher Curtis, EVTATelephone No. (518) 485-0441E-mail: [email protected]

The bid must be fully and properly executed by an authorized person. By signing you certify your express authority to sign on behalf of yourself, your company, or other entity and full knowledge and acceptance of this REQUEST FOR PROPOSAL, Appendix A (Standard Clauses For New York State Contracts), Appendix B (OGS General Specifications May 2006), and State Finance Law §139-j and §139-k (Procurement Lobbying), and that all information provided is complete, true and accurate. By signing, bidder affirms that it understands and agrees to comply with the OGS procedures relative to permissible contacts as required by State Finance Law §139-j (3) and §139-j (6) (b). Information may be accessed at:

Procurement Lobbying: http://www.ogs.state.ny.us/aboutOgs/regulations/defaultAdvisoryCouncil.htmlName of Company Bidding: Bidder's Federal Tax Identification No.:

Street City State Zip County

Cash Discounts for prompt payment will not be considered in determining low bid, but such cash discounts of any size may be considered in awarding tie bids. __________________% Cash Discount for payment within 15 days of delivery and/or receipt of voucher__________________% Cash Discount for payment within 30 days of delivery and/or receipt of voucherIf you are not bidding, place an “x” in the box and return this page only.

WE ARE UNABLE TO BID AT THIS TIME BECAUSE _____________________________________ _______________________________________________________________________________________________________________________________________________________________________.

Bidder’s Signature:

Title:

Printed or Typed Name:

Date:Phone : ( ) - ext ( )Fax : ( ) - ext ( )

Toll Free Phone : ( ) - ext ( )Toll Free Fax : ( ) - ext ( )

E-mail Address: Company Web Site:FOR PROCUREMENT SERVICES GROUP USE ONLY

P.R. # LIT MEMO MISSING PAGES

Group 79008 New York State Office of General Services Page: 3Electronic Value Transfer Procurement Services Group Date: BID # LET OTHER

Table of Contents

REVISED LEGAL REQUIREMENTS FOR ALL PROSPECTIVE CONTRACTORS 5PROCUREMENT LOBBYING TERMINATION: 5NYS STANDARD VENDOR RESPONSIBILITY QUESTIONNAIRE (APPENDIX 1):.............................................................5TAX LAW 5-A (APPENDIX 2):...........................................................................................................................................................5INFORMATION SECURITY BREACH AND NOTIFICATION ACT..........................................................................................6NON-COLLUSIVE BIDDING CERTIFICATION............................................................................................................................6DISPUTE RESOLUTION POLICY....................................................................................................................................................6

SECTION I. OVERVIEW 7I.1 Scope & Objectives.....................................................................................................................................................................7I.2 EVT Program/Eligible Participants..........................................................................................................................................7I.3 Estimated Quantities...................................................................................................................................................................8I.4 Definitions....................................................................................................................................................................................8

SECTION II. BID ADMINISTRATION 12II.1 Issuing Agency, Inquiries & Bid Submission.........................................................................................................................12II.2 Key Events & Dates..................................................................................................................................................................12II.3 Pre-Bid Conference...................................................................................................................................................................12II.5 Order of Precedence/Inconsistencies.......................................................................................................................................13II.6 Appendix B - Special Attention To These Clauses.................................................................................................................13II.7 Appendix B - Deletions.............................................................................................................................................................13II.8 Appendix B - Modifications......................................................................................................................................................13II.9 Contract Term...........................................................................................................................................................................14II.10 Cancellation For Convenience.................................................................................................................................................14II.11 Performance and Bid Bonds....................................................................................................................................................14II.12 Contract.....................................................................................................................................................................................14II.13 Acceptance Testing and Retainage..........................................................................................................................................14II.14 Additional Contract Conditions - Agency, Association & Governing Body Requirements...............................................15II.15 Performance Standards & Payment Credit...........................................................................................................................15II.16 Administrative Requirements..................................................................................................................................................18II.17 Fee Escalation............................................................................................................................................................................18II.18 Contract Migration...................................................................................................................................................................19

SECTION III. CONTRACT ADMINISTRATION 20III.1 Contract Designation................................................................................................................................................................20III.2 Voluntary Extension of Contract.............................................................................................................................................20III.3 Procurement Instructions.........................................................................................................................................................20

SECTION IV. BIDDER TECHNICAL QUALIFICATIONS & SERVICE REQUIREMENTS 21IV.1 Bidder Qualifications................................................................................................................................................................21

SECTION V. BIDDER FINANCIAL REQUIREMENTS 45

SECTION VI. BID SUBMISSION 52VI.1 Bid Submission..........................................................................................................................................................................52VI.2 New York State Procurement Rights......................................................................................................................................52VI.3 Bidder Debriefing......................................................................................................................................................................52VI.4 Proposal Security......................................................................................................................................................................52

SECTION VII. PROPOSAL FORMAT AND CONTENT 53VII.1 General Format Outline For Parts I And II...........................................................................................................................53VII.2 Part I, Response to Section IV, Technical Qualifications & Service Requirements..........................................................54VII.3 Part II, Response to Section V, Bidder Financial Requirements..........................................................................................54VII.4 Electronic Bid Submission........................................................................................................................................................55

SECTION VIII. PROPOSAL EVALUATION METHODOLOGY 55VIII.1Method Of Award.....................................................................................................................................................................55

EXHIBITSExhibit No. 1 - State Agency & Non-State Entities Having Utilized the EVT Program (Potential Authorized Users).............58Exhibit No. 2 OGS Procedures for Updating Contract Pricing and/or Product Listings.............................................................60

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Group 79008 New York State Office of General Services Page: 4Electronic Value Transfer Procurement Services Group Date: Exhibit No. 3 State Agency Procedures for Implementing EVT Applications..............................................................................62Exhibit No. 4 Formula for Blended Rates and Bundled Rates........................................................................................................67

APPENDICESAPPENDIX 1 - NYS Standard Vendor Responsibility QuestionnaireAPPENDIX 2 - NYS Contractor Certification Form (ST-220) APPENDIX A – Standard Clauses fpr New York State ContractsAPPENDIX B – General SpecificationsAPPENDIX C - Dispute Resolution ProcessAPPENDIX D - Contractor’s Requirements Under Article 15-A APPENDIX E - Contract Insurance Requirements

BID PROPOSAL FORMSRequest for Proposal FormBid Proposal Signature PageNotary AcknowledgmentMacBride CertificationNon-Collusive Bidding CertificationBid Proposal Cover Sheet – Part IBid Submittal ChecklistBidder’s Response to Qualifying Technical RequirementsBid Proposal Cover Sheet – Part IIBidder Financial Requirements ChecklistFinancial Services Processing (Tables I -XII) and Transaction Interfaces (Tables XIII – XVI)

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NEW YORK STATE OFFICE OF GENERAL SERVICESPROCUREMENT SERVICES GROUP

GENERAL INFORMATION

IMPORTANT NOTICE TO POTENTIAL BIDDERS: Receipt of these bid documents does not indicate that the Office of General Services' Procurement Services Group has pre-determined your company's qualifications to receive a contract award. Such determination will be made after the bid opening and will be based on our evaluation of your bid submission compared to the specific requirements and qualifications contained in these bid documents.:

REVISED LEGAL REQUIREMENTS FOR ALL PROSPECTIVE CONTRACTORS

PROCUREMENT LOBBYING TERMINATION:OGS reserves the right to terminate this contract in the event it is found that the certification filed by the

Offerer/bidder in accordance with New York State Finance Law §139-k was intentionally false or intentionally incomplete. Upon such finding, OGS may exercise its termination right by providing written notification to the Offerer/bidder in accordance with the written notification terms of this contract.

SUMMARY OF POLICY AND PROHIBITIONS ON PROCUREMENT LOBBYING:Pursuant to State Finance Law §§139-j and 139-k, this solicitation includes and imposes certain restrictions on

communications between OGS and an Offerer/bidder during the procurement process. An Offerer/bidder is restricted from making contacts from the earliest notice of intent to solicit offers/bids through final award and approval of the Procurement Contract by OGS and, if applicable, the Office of the State Comptroller (“restricted period”) to other than designated staff unless it is a contact that is included among certain statutory exceptions set forth in State Finance Law §139-j (3) (a). Designated staff, as of the date hereof, is identified on the first page of this solicitation. OGS employees are also required to obtain certain information when contacted during the restricted period and make a determination of the responsibility of the Offerer/bidder pursuant to these two statutes. Certain findings of non-responsibility can result in rejection for contract award and in the event of two findings within a four-year period, the Offerer/bidder is debarred from obtaining governmental Procurement Contracts. Further information about these requirements can be found on the OGS website:

http://www.ogs.state.ny.us/aboutOgs/regulations/defaultAdvisoryCouncil.html

NYS STANDARD VENDOR RESPONSIBILITY QUESTIONNAIRE (APPENDIX 1):

Bidder agrees to fully and accurately complete the NYS Standard Vendor Responsibility Questionnaire, which is attached as Appendix 1 (hereinafter the “Questionnaire”). The Bidder acknowledges that the State’s execution of the Contract will be contingent upon the State’s determination that the Bidder is responsible, and that the State will be relying upon the Bidder’s responses to the Questionnaire in making that determination. The Bidder agrees that if it is found by the State that the Bidder’s responses to the Questionnaire were intentionally false or intentionally incomplete, on such finding, OGS may terminate the Contract by providing ten (10) days written notification to the Contractor. In no case shall such termination of the Contract by the State be deemed a breach thereof, nor shall the State be liable for any damages for lost profits or otherwise, which may be sustained by the Contractor as a result of such termination.

TAX LAW 5-A (APPENDIX 2):

Section 5-a of the Tax Law, as amended, effective April 26, 2006, requires certain contractors awarded state contracts for commodities, services and technology valued at more than $100,000 to certify to the Department of Taxation and Finance (DTF) that they are registered to collect New York State and local sales and compensating use taxes. The law applies to contracts where the total amount of such contractors’ sales delivered into New York State are in excess of $300,000 for the four quarterly periods immediately preceding the quarterly period in which the certification is made, and with respect to any affiliates and subcontractors whose sales delivered into New York State exceeded $300,000 for the four quarterly periods immediately preceding the quarterly period in which the certification is made. This law imposes upon certain contractors the obligation to certify whether or not the contractor, its affiliates, and its subcontractors are required to register to collect state sales and compensating use tax and contractors must certify to DTF that each affiliate and subcontractor exceeding such sales threshold is registered with DTF to collect New York State and local sales and compensating use taxes. The law prohibits the State Comptroller, or other approving agency, from approving a contract awarded to a contractor meeting the registration requirements but who is not so registered in accordance with the law. Contractor certification forms and instructions for completing the forms are attached to this bid. Form No. ST-220-TD must be filed with and returned directly to DTF. Unless the information upon which the ST-220-TD is based changes, this form only needs

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to be filed once with DTF. If the information changes for the contractor, its affiliate(s), or its subcontractor(s), a new Form No. ST-220-TD must be filed with DTF.

Form ST-220-CA must be filed with the bid and submitted to the procuring covered agency certifying that the contractor filed the ST-220-TD with DTF. Proposed contractors should complete and return the certification forms within two business days of request (if the forms are not completed and returned with bid submission). Failure to make either of these filings may render a bidder non-responsive and non-responsible. Bidders shall take the necessary steps to provide properly certified forms within a timely manner to ensure compliance with the law. Vendors may call DTF at 1-800-698--2909 for any and all questions relating to Section 5-a of the Tax Law and relating to a company's registration status with the DTF. For additional information and frequently asked questions, please refer to the DTF web site: http://www.nystax.gov

INFORMATION SECURITY BREACH AND NOTIFICATION ACT

Section 208 of the State Technology Law (STL) and Section 899-aa of the General Business Law (GBL) require that State entities and persons or businesses conducting business in New York who own or license computerized data which includes private information including an individual's unencrypted personal information plus one or more of the following: social security number, driver's license number or non-driver ID, account number, credit or debit card number plus security code, access code or password which permits access to an individual's financial account, must disclose to a New York resident when their private information was, or is reasonably believed to have been, acquired by a person without valid authorization. Disclosure of breach of that private information to all individuals affected or potentially affected must occur in the most expedient time possible without unreasonable delay, after necessary measures to determine the scope of the breach and to restore integrity, but with delay if law enforcement determines it impedes a criminal investigation. When notification is necessary, the State entity or person or business conducting business in New York must also notify the following New York State agencies: the Attorney General, the Office of Cyber Security & Critical Infrastructure Coordination (CSCIC) and the Consumer Protection Board (CPB). Information relative to the law and the notification process is available at: http://www.cscic.state.ny.us/security/securitybreach/

NON-COLLUSIVE BIDDING CERTIFICATION:(Reference: State Finance Law Section 139-d and Appendix A, Clause 7)By submission of this bid, each bidder and each person signing on behalf of any bidder certifies, and in the case of a joint bid each party thereto certifies as to its own organization, under penalty of perjury, that to the best of its knowledge and belief:(1) The prices in this bid have been arrived at independently without collusion, consultation, communication, or agreement, for the purpose of restricting competition, as to any matter relating to such prices with any other bidder or with any competitor;(2) Unless otherwise required by law, the prices which have been quoted in this bid have not been knowingly disclosed by the bidder and will not knowingly be disclosed by the bidder prior to opening, directly or indirectly, to any other bidder or to any competitor; and(3) No attempt has been made or will be made by the bidder to induce any other person, partnership or corporation to submit or not submit a bid for the purpose of restricting competition.

DISPUTE RESOLUTION POLICY:It is the policy of the Office of General Services’ Procurement Services Group (PSG) to provide vendors with an opportunity to administratively resolve disputes, complaints or inquiries related to PSG bid solicitations or contract awards. PSG encourages vendors to seek resolution of disputes through consultation with PSG staff. All such matters will be accorded impartial and timely consideration. Interested parties may also file formal written disputes. A copy of PSG’s Dispute Resolution Procedures for Vendors may be obtained by contacting the person shown on the front of this Request for Proposals or through the OGS website (www.ogs.state.ny.us). Click on "For Government - Contracts and Purchasing," then "Seller Information," then "Dispute Resolution Procedures for Vendors."

ELECTRONIC PAYMENTS:The Office of the State Comptroller (OSC) offers an "electronic payment" option in lieu of issuing checks. Contact OSC to obtain an information packet at 518-474-4032 or e-mail to [email protected] or visit their website at www.osc.state.ny.us.

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SECTION I. OVERVIEW

I.1 Scope & Objectives

The State of New York intends to establish an Electronic Value Transfer Program for state agencies, political subdivisions and other New York State centralized contract users. The purpose of the Electronic Value Transfer (EVT) Program is to:

Improve customer service and convenience. Promote the development of electronic government applications. Provide customers with an expanded choice of payment options. Support the diverse needs of government. Improve operational efficiencies. Enhance customer payment compliance and collection rates. Expedite the availability of funds.

This Request for Proposal (RFP), issued by the Office of General Services (OGS) encompasses Financial Services Processing and Transaction Interfaces.

Financial Services Processing (FSP). The EVT Contractor must support the processing of the following electronic payments methods:

a. the four nationally recognized Credit/Charge Cards (MasterCard, Visa, Discover[1] and American Express[1] branded cards),

b. On-line and Off-line Debit Cards,c. Automated Clearing House (ACH) Credit and Debit transactions[2], andd. Fedwire Funds Transfers (Fedwire) and other similar electronic payments including Clearing House Interbank

Payment System (CHIPS) and Society for Worldwide Interbank Financial Telecommunications (SWIFT) and similar funds transfers and other future forms of electronic payments[2].

[1] For Discover and American Express branded cards, the State will negotiate a standard interchange rate, and reporting/settlement processing terms and conditions directly with Discover and American Express. The EVT Contractor will, however, be responsible for authorization, capture and reporting.

[2] While the EVT Contractor must be able to provide FSP services for Credit/Charge Card and Debit Card processing, FSP services for Automated Clearing House (ACH) Credit and Debit transactions and Fedwire and other similar electronic payments (including CHIPS and SWIFT) may be provided by the EVT Contractor or its subcontractors.

Transaction Interfaces. The EVT Contractor must provide hardware (e.g., point-of-sale terminals), software (e.g., packaged software to be installed on PCs or Web Servers) and incidental Consulting Services to support processing electronic value transfer payments, reporting, inquiries and reconciliation.

I.2 EVT Program/Eligible Participants

New York State agencies and departments, public authorities, political subdivisions and other entities authorized by statute to utilize OGS contracts are permitted to use the EVT Contract. Before a State Agency may utilize the EVT Contract during the contract term; the Agency must receive approval of an EVT Agency Plan from the EVTA and the Division of the Budget (DOB). Any subsequent use of the contract must be in accordance with that State Agency’s approved plan and with the statewide EVT policies and guidelines. (See Exhibit 3 – State Agency Procedures for Implementing EVT Application on page 67).

Non-State Agency Authorized Users are not required to receive control agency approval in order to utilize the EVT Contract.

Due to the nature and diversity of services offered and the number of Authorized Users, the Bidder should assume that Authorized Users’ EVT applications will vary. All Authorized Users will require Financial Services Processing; some may require Transaction Interfaces to facilitate payment processing. Authorized Users may elect to use all or part of the Transaction Interfaces available under the EVT Contract, or may reserve the right to use other contract vehicles to acquire such services, software and/or hardware devices.

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I.3 Estimated Quantities

Use of the EVT Contract by Authorized Users is completely voluntary, and therefore no specific quantities are represented or guaranteed. The State provides no guarantee of volume or individual Authorized User participation. The needs of those Authorized Users who elect to use the EVT Contract represent diverse sizes, revenue collection streams and technical capabilities.

Exhibit No. 1 - State Agency & Non-State Entities Utilizing the EVT Program (Potential Authorized Users) on page 63 contains a summary of the number of transactions and dollar volume for entities that have made use of the current electronic payment contract over the past 6 years. Additionally, the Bidder should consider the following when submitting a bid: The total number of transactions and total dollar volume of usage under the current EVT program has increased every year of the contract’s existence.

I.4 Definitions

Terms used in this document shall be defined in accordance with Appendix B of this RFP (Part 1, §5 Definitions), which is hereby incorporated by reference. In addition, the following definitions shall apply, however, if there is a Credit/Charge Card, Off-line & On-line Debit Card, ACH or Fedwire, SWIFT and/or CHIPS association or other governing body definition which substantially differs or conflicts with or is additional to the definitions set forth in this RFP, the association or governing body definition shall govern, provided that it is consistent with New York State law and that the Bidder has provided a copy of such definition in their bid response. Failure to provide such definition in the bid response will result in the definitions set forth in the RFP as prevailing in the final contract:

A. Acceptance Testing - the process to verify the connectivity and transfer of data elements between an Authorized User’s certified payment device and Contractor’s system.

B. ACH Transactions – ACH Debits, ACH Credits and electronic check processing and clearance.

C. Agency / Agencies - shall have the meaning set forth in this RFP, Section I.2. This definition shall supersede and replace the definition set forth in Appendix B, Part I, Section 5, Definitions.

D. Assessment Fee - fees imposed by the credit/charge card associations that are passed through to the Authorized User.

E. Association - means the credit card associations known as VISA U.S.A., Inc., VISA International, Inc., MasterCard International Incorporated, American Express, Discover, and any successor organizations or associations of same. For purposes of this Agreement, Association shall also mean any debit network, and any successor organization or association of same, which is applicable hereunder. Also for the purposes of this Agreement, Association shall mean any other governing bodies associated with electronic payments including NACHA, SWIFT and CHIPS and any successor organization or association of same, which is applicable hereunder.

F. Association Rules - rules, regulations, releases, interpretations, and other requirements imposed and adopted by any Association.

G. Authorization - process by which an Authorized User electronically accesses the Contractor’s system to obtain verification by an issuing or responsible third-party of a Credit/Charge Card, On-line or Off-Line Debit Card transaction.

H. Authorization Fee - fees charged by the EVT Contractor to Authorized Users to obtain an authorization.

I. Authorized User - New York State agencies and departments, public authorities, political subdivisions and other entities authorized by statute to utilize OGS contracts

J. Automated Clearing House (ACH) Network - a nationwide electronic funds transfer system governed by the ACH Operating Rules and Guidelines, which processes electronically originated credit and debit transfers for participating financial institutions.

K. Backdrop Contracts - State of New York centralized contracts established by OGS which use pre-qualified contractors to provide products and obtain computer consulting, systems integration and other computer related services.

L. Blended Rates - a fee that combines MasterCard and Visa interchange and assessment fees.

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M. Bundled Fees – a fee that combines all individual processor fees into a single fee.

N. Chargeback - a credit to the Device User in the amount of a Credit/Charge Card, On-line or Off-Line Debit Card transaction .

O. Check Conversion - conversion of a paper check to an electronic payment submitted to the ACH network.

P. Check Guarantee - a check collection service providing payment in full for all checks, whether or not the checks are collected.

Q. Check Recovery - check collection services.

R. Check Verification - a process by which check information is transmitted for matching against a database containing accounts not be accepted, a response to accept or not is transmitted back to the originating device.

S. Clearing House Interbank Payment System (CHIPS) - an electronic payment system developed by the New York Clearing House that transfers funds and settles transactions in U.S. dollars throughout the world. The central clearing system in the United States for international transactions.

T. Commercially Reasonable Efforts– means the efforts that a prudent party that desires to complete a transaction or other action would use in similar circumstances to ensure that a transaction, action or other result occurs as expeditiously as possible without the necessity of assuming any material obligations or incurring any material fees, expenses, or costs other than those fees, expenses and costs which the party has contractually agreed to expend.

U. Contactless Payments – Payments made using cards or other objects containing chips that can be read by Point of Sale (POS) devices by proximity of the object to the POS device without actual physical contact.

V. Convenience Fee - a payment mechanism by which, at the direction of Authorized Users, a service provider (e.g., Internet or Interactive Voice Response service provider) is reimbursed by Device Users for costs associated with providing such services. The amount of the Convenience Fee and the method by which it may be collected shall be set forth in Authorized Users’ Implementation Plans.

W. Credit/Charge Cards - MasterCard, Visa, Discover and American Express branded cards or such other new or emerging cards as may become available and included under the Contract during the EVT Contract term.

X. Debit Cards - an electronic payment card which is processed either by entry of a PIN and funds are directly debited from the Device Users account (On-Line Debit Card) or processed like a credit/charge card and funds are not directly debited from the Device Users account (Off-Line Debit Card).

Y. Desirable - a “Desirable” requirement is not mandatory, but is an enhancement or option that is preferred by the State.

Z. Device User - a person owing money to an Authorized User who uses an electronic value transfer device to make a payment.

AA. Electronic Value Transfer - any transfer of funds which is initiated directly or indirectly by the use of an Electronic Value Transfer Device so as to initiate a transaction contemplated hereunder.

BB. Electronic Value Transfer Administrator (EVTA) - the New York State Department of Taxation and Finance.

CC. EVT Agency Plan - a document prepared by state agency Authorized Users that has been approved the EVTA and the Division of Budget.

DD. EVT Contract - the resulting New York State centralized contract entered into by the State and the winning bidder of this RFP.

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EE. EVT Contractor - the winning bidder of this RFP who enters into a centralized contract with the New York State Office of General Services’ Procurement Services Group .

FF. Electronic Value Transfer Device – a credit card, debit card, charge card, electronic funds transfer or other electronic value transfer mechanism which is contemplated hereunder.

GG. Fedwire or Fedwire Funds Transfer System - an electronic payment system owned and operated by the Federal Reserve Banks that act as an intermediary in funds transfer for Fedwire participants.

HH. Financial Services Processing (FSP) - processing of the four nationally recognized Credit/Charge Cards (MasterCard, Visa, Discover and American Express branded cards), On-Line and Off-Line Debit Cards, Automated Clearing House Credit and Debit Transactions, Fedwire, CHIPS and SWIFT and other future forms of electronic payments.

II. Implementation Plan/Work Order - a document mutually agreed upon by the Authorized User and the EVT Contractor (EVTA-2 form). The Implementation Plan must be consistent with the EVT Agency Plan (EVTA-1 form for State Agencies), and shall contain the program specifications, design requirements and development timeframes for each Authorized Users’ electronic payment application.

JJ. Incidental Consulting Services - a type of Transaction Interface service under which the EVT Contractor provides analysis, recommendations, design and/or programming expertise to Authorized Users relating to installation or integrating of Transaction Interface hardware or software and developing and maintaining interfaces between the Authorized User’s system and the Bidder to facilitate payment processing.

KK. Interchange Fee - fees imposed by the credit/charge card Associations that are passed through to the Authorized User.

LL. Mandatory - the Bidder must meet or provide the stated requirement(s) except for those mandatory requirements identified as “may be developed”. If the minimum requirement is not met the bidder may be considered non-responsive and the bid may be rejected on that basis. However, a designation of “mandatory” does not preclude the bidder from offering additional benefits over and above the minimum requirement.

MM. National Automated Clearing House Association (NACHA) - a not-for-profit banking trade association that promulgates the operating rules and guidelines for the ACH Network.

NN. Net Depositing or Net Billing - the depositing of funds by Contractor into an Authorized User's account in an amount reflecting the total face value of the Authorized User’s transactions less funds owed to Contractor (prohibited for use with State Agency accounts except for Failed ACH payments).

OO.Non-Qualified Transaction - a transaction where the Device User is not physically present with the card during the transaction (e.g. Interactive Voice Response, Internet transactions, etc

PP. Originating Depository Financial Institution (ODFI) - financial institutions participating in the ACH Network that are qualified to originate ACH entries at the request of and by agreements with its Device Users.

QQ. Payment Programs - any payment collection program which is authorized by law to be collected by means of currency, a credit card/charge card, debit card or other electronic value transfer device. For State Agencies these payment programs include, for example: fines, fees, rates, charges, taxes, interest, penalties, special assessments, revenue, financial obligations or other amounts. For local governments these payment programs additionally include, for example: civil penalties, rents, special assessments, or interest owed to local governments.

RR. PCI DSS (Payment Card Industry Data Security Standards) - uniform set of information security requirements for all national card brands (exclusive of boutique and private labels).

SS. PCI PED (Payment Card Industry PIN Entry Device) – one of the types of security under the PCI umbrella providing updated requirements for manufacturers that sell PIN pads and terminals with internal PIN pads. These requirements are to standardize and better control how terminals process transactions.

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TT. Preauthorized Payments - a transaction where a Device User authorizes an Authorized User to make one or more future charges to such Device User’s Credit/Charge Card account or to initiate Off-line Debit Card and ACH Debit transactions at a future date.

UU. Pre-Funding - an EVT Contractor service whereby an Authorized User is provided with expedited funds settlement.

VV. Process/Processing - when referring to MasterCard and Visa transactions shall include authorization, capture, settlement and reporting; when referring to Discover and American Express, shall mean only authorization, capture and in certain cases reporting.

WW. Processing Fee - a fee charged by the EVT Contractor to an Authorized User for Financial Services Processing (including Interchange and Assessment Fees, Base Processing/Access Fees, and fees identified in RFP Table IV – Fees for Additional Services).

XX. Qualified Transaction - a transaction where the cardholder is physically present for a card-swiped transaction; conversely a “non-qualified” transaction is when a Device User is not physically present for a transaction.

YY. Receiving Depository Financial Institution (RFDI) - financial institutions participating in the ACH Network that are qualified to receive ACH entries.

ZZ. Recurring Payments – an arrangement in which a Device User agrees to allow an Authorized User to bill against a specific account at predetermined time intervals for predetermined amount using Credit/Charge Cards, Off-Line Debit Cards and ACH Debit transactions.

AAA. Request For Proposal (RFP) - this bid document.

BBB. Research Fee - a fee charged by the EVT Contractor to the Authorized User for chargebacks that require extraordinary research.

CCC. Short Term Investment Pool (STIP) – the State investment pool rate used in calculating payment credits for failures of the EVT Contractor to meet certain minimum performance standards.

DDD. Smart Cards - devices with embedded microprocessors including both intelligent cards with read/write capability and stored value cards with read only capability utilized for electronic financial transactions.

EEE. Society for Worldwide Interbank Financial Telecommunications (SWIFT) - a bank-owned global financial telecommunications payment network utilized by customer financial institutions.

FFF. Source Account - the account of the payor, (Devise User) who is entering an ACH Transaction with an Authorized User.

GGG. State Agency - authorized pursuant to NYS Finance Law, Section 4-a, to accept electronic payments, including any department, board, bureau, division, commission, council, office of the State, or other governmental entity with statewide jurisdiction.

HHH. Statewide Aggregate Volume Discount - a percentage discount that will be applied to Blended Rates and Bundled Fees for Credit/Charge Card Financial Services Processing when the total number of Blended/Bundled transactions per month processed under the EVT Contract exceeds a specified level.

III. Surcharge - a payment mechanism by which, at the direction of Authorized User, the fees associated with Credit/Charge Cards are paid by the Device User in the form of an additional fee. For State Agencies, the amount of the Surcharge and the method by which it may be collected shall be set forth in State Agency’s Implementation Plans.

JJJ. Transaction Interfaces –hardware (e.g., point-of-sale devices) and software (i.e., packages to be installed on individual PCs or other individual computer devices, networked PCs or other networked computer devices and web servers for electronic payment processing) to be supplied by the EVT Contractor to support FSP processing.

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KKK. Working Interim Account – an account or accounts established and maintained by the successful Bidder or its subcontractor(s) into which funds from any payment devices (including but not limited to credit / charge cards, on-line off-line debit cards, ACH credit and debit transactions and Fedwire and similar transactions) are temporarily deposited prior to being transferred to appropriate state or locality accounts designated by Authorized Users. Funds must be reconciled and transferred from this account(s) to designated state or locality accounts within twenty four (24) hours.

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SECTION II. BID ADMINISTRATION

II.1 Issuing Agency, Inquiries & Bid Submission

The Issuing Agency is the New York State Office of General Services, acting pursuant to NYS Finance Law, §163, at the request of the New York State Electronic Value Transfer Administrator. All inquiries concerning this RFP must be addressed to the following:

Nicholas Jacobia Phone: (518) 473-4651NYS Office of General Services FAX: (518) 486-6867Procurement Services Group E-Mail: [email protected] Tower - 38th FloorEmpire State PlazaAlbany, New York 12242

All questions should be submitted in writing (including facsimile and E-mail), citing the particular proposal section and paragraph number. Bidders are strongly encouraged to submit questions at the earliest convenience. Questions received by September 17, 2008 will be addressed in the opening comments of the Pre-Bid Conference. Bidders should note that all clarifications and questions, including those relating to the terms and conditions of the contract are to be resolved prior to the submission of a proposal. Answers to all questions of a substantive nature will be given to all Prospective Bidders in the form of a formal addendum, which will be annexed to and become part of the ensuing contract.

II.2 Key Events & Dates

This RFP outlines the terms and conditions, and all applicable information required for submitting a bid. The Bidder should pay strict attention to the bid submission date and time to prevent disqualification. To insure compliance with bid requirements, the Bidder should follow the format and content instructions in the RFP, Section VII, Proposal Format and Content.

Event Date

RFP Issuance...............................................................................September 3, 2008

Closing Date for Pre-Bid Conference Inquiries............................September 17, 2008

Pre-Bid Conference.....................................................................September 30, 2008 at 10:00 AM EDT

Final Date for Inquiries................................................................October 16, 2008

Submission of Proposal/Bid Opening...........................................December 4, 2008 at 11:00 AM EST

Evaluation Completion (estimated)..............................................January 30, 2009

Contract Notification (estimated)...............................................August 4, 2009

II.3 Pre-Bid Conference

There will be a non-mandatory pre-bid conference for this procurement. It is strongly recommended that all potential Bidders attend this meeting.

The pre-bid conference will be held in Meeting Room 1, Concourse Level, Empire State Plaza, Albany New York, on September 30, 2008, 10:00 AM. Each interested Bidder is requested to limit the number of representatives attending to three for each business entity attending. Interested bidders are asked to register online to attend the pre-bid conference.

Specific questions concerning the terms and conditions in the RFP shall be submitted in writing (facsimile or E-Mail will be accepted) as identified in RFP, Section II.1 prior to the conference so they can be answered at the conference. Although questions will be permitted at the conference, answers may be deferred and responded to along with answers to written questions received up to the final date for inquiries. Responses will be mailed to each Bidder’s official representative present at the Pre-Bid Conference and published in an Addendum to the RFP which will be distributed to the OGS Online Vendor Registration category 84 bidders list.

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II.4 Incorporation of AppendicesThe following appendices are attached hereto and hereby incorporated by reference and made a part hereof as fully as if they were set forth at length herein:

Appendix A Standard Clauses for NYS ContractsAppendix B General Specifications (as modified below)Appendix C Dispute Resolution Procedures

II.5 Order of Precedence/Inconsistencies

The order of precedence between contract documents including this RFP and Successful Bidder’s response shall be as set forth in Appendix B – General Specifications, Clause 4, “Conflict of Terms.” Further, the Successful Bidder’s proposal will be incorporated by reference herein following contract award and such proposal shall have the least precedence amongst the documents in resolving any inconsistencies contained therein.

II.6 Appendix B - Special Attention To These Clauses

Bidder should pay particular attention to the following clauses in the Appendix B:

Bid SubmissionClause 6 (International Bidding)Clause 8 (Bid Submission)Clause 11 (Late Bids)Clause 13 (Extraneous Terms)Clause 14 (Confidential/Trade Secret Materials)Clause 55 (Employees/Subcontractors/Agents) Clause 56 (Assignment)Clause 57 (Subcontractors and Suppliers)Clause 65 (Remedies for Breach)

II.7 Appendix B - Deletions

The following deletions are made to Appendix B for this procurement:

Clause 25 (Drawings)Clause 49 (Re-weighing Product)Clause 62 (Contract Billings)

II.8 Appendix B - Modifications

The following modifications/clarifications are made to Appendix B for this procurement:

Clause 5 (Definitions) Replace the definitions of Authorized User(s) and Agency or Agencies with the definitions set for the above in Section 1.4

Clause 26 (Site Inspection) No site inspection is required for contract award. However, Successful Bidder may be required to do a site inspection of the Authorized User facilities before quoting a price for complete services. In such case Successful Bidder will be required to comply with the requirements of this clause. Said site inspection shall be at contractor’s own expense.

Clause 45 (Product Delivery) Applies to Transaction Interfaces and Service Items only.Clause 46 (Weekend & Holiday Delivery) Applies to Transaction Interfaces and Service Items only.Clause 47 (Shipping/Receipt of Product) Applies to Transaction Interfaces and Service Items only.Clause 52 (Installation) Applies to Transaction Interfaces and Service Items only.Clause 53 (Repaired or Replaced Product) Applies to Transaction Interfaces and Service Items only.

Repaired or replaced products are warranted only for the remainder of the initial warranty term.

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Clause 55 (Employees/Subcontractors/Agents) add the sentence, "All those performing under this contract must meet or exceed the qualifications set forth in the Association Rules."

Clause 56 (Assignment) add, "The Contractor has no right to assign this contract to a successor upon its corporate dissolution unless the State consents to such assignment. For purposes of this clause any merger of the Contracting entity with another entity will be considered an assignment as will a transfer of twenty five percent (25%) or more of voting control of the Contracting entity or its parent. Consent to assignment shall not be unreasonably withheld. The reasonableness of an assignment shall be determined solely by the State."

Clause 61 (Savings/Force Majeure) is clarified to include that the EVT contractor is not liable for interruptions in service due to the failure of telecommunications or other equipment which is not in contractor’s control.

II.9 Contract Term

The contract(s) will commence the first day of the first month after it is approved by the Office of the State Comptroller. The contract(s) will be in effect for five (5) years, with an option to renew the contract for a single five (5) year term. The State may further extend the contract for up to one (1) additional year, or until a new contract is entered into, upon mutual written consent of the State and the Successful Bidder to be effective and binding, all renewals and extensions must be approved by the Office of State Comptroller (OSC). Authorized Users may issue purchase orders pursuant to this contract setting forth individual terms and conditions at any time during the term of the contract. No purchase order or contractual document issued against this contract shall exceed a term of one year from the date of issuance, but such term may survive expiration of the contract, the terms and conditions of which will apply throughout the extended term.

If at any time the contract is canceled, terminated or expires, the EVT Contractor has the affirmative obligation to extend appropriate and reasonable cooperation to assure the orderly transition of contract services to the subsequent contractor.

II.10 Cancellation for Convenience

The State of New York retains the right to cancel this contract without reason provided that the State provides written notice to the EVT Contractor at least sixty (60) days prior to the date the State intends to cancel the contract. This provision should not be understood as waiving the State's right to terminate the contract for cause or to stop work immediately for unsatisfactory work as outlined in Appendix B, but is supplementary to those provisions. Any such cancellation shall have no effect on existing approved Implementation Plans, which are subject to the same sixty (60) day cancellation for convenience rights or cancellation for cause by the Authorized User.

II.11 Performance and Bid Bonds

There is no bid bond for this contract. However, the State requires the Contractor to furnish, without additional cost, a performance bond or other equitable form of security for the faithful performance of the Agreement. Included in the term faithful performance is the Contractor’s continued financial security throughout the term of this Agreement. The performance bond for Contractor under this Agreement will be in the amount of $5,000,000 with the State as the payee/beneficiary.

Consistent with Appendix B, Clause 58, an Authorized User has the right, at their discretion, to request a performance bond from the EVT Contractor for work to be completed. In no case can the value of the performance bond exceed the value of the services provided to the Authorized User.

II.12 Contract

Successful Bidder will be required to execute a contract in which the Successful Bidder's proposal and a copy of this RFP will be made part of the contract by reference. Bidders are strongly cautioned to refer to and comply with Appendix B, Clause 13, Extraneous Terms. Any exceptions or objections must be clearly taken as extraneous terms as set forth in Bidder’s proposal. Exceptions to the contract should list the original text of the sample contract using overstrike (e.g., strikethrough), leaving the ability to read the original text, and italic lettering or bold to show additions. The State has no obligation to accept or agree to any exceptions or objections submitted.

II.13 Acceptance Testing and Retainage

Payment for Transaction Interfaces as set forth in the Authorized User’s Implementation Plan or Purchase Order, may be made payable by deliverable, subject to an optional minimum 10% retainage/holdback amount without interest or penalty. The retainage shall not become due and payable to the EVT Contractor until the specified system has been accepted by the Authorized User.

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Unless otherwise provided by mutual agreement between the Authorized User and the EVT Contractor, Authorized User shall have the option to run testing on the Transaction Interface prior to acceptance utilizing EVT Contractor provided test data or its own test data.

If the EVT Contractor is more than five (5) business days late with meeting any part of the Transaction Interfaces deliverable schedule set forth in the Authorized User’s Implementation Plan or Work Order, then the Authorized User may withhold any payment due until the deliverable has been met. More than one incidence of any deliverable not being met in accordance with the agreed Implementation Plan or Work Order schedule may result in a complete withholding of all further payments until Acceptance by the Authorized User without incurring any charge or penalty against the Authorized User for late payments. Alternatively, more than one incidence of failure to meet the Implementation Plan or Work Order schedule, may at the sole option of the Authorized User, result in the termination of the Implementation Plan or Work Order for cause. The Authorized User will then only be liable for actual work or interfaces received and retained pursuant to the Implementation Plan or Work Order up to the date of the notice of termination.

II.14 Additional Contract Conditions - Agency, Association & Governing Body Requirements

The State will agree, to the extent permitted under both state law and the terms of this RFP that Authorized Uses will comply with rules and guidelines from the Credit/Charge Card, Off-line and On-line Debit Card, ACH or Fedwire, SWIFT and/or CHIPS associations or other governing bodies. It is the Bidders responsibility to furnish any such applicable rules and guidelines in the specified response section of the RFP, and to specifically enumerate those provisions which conflict with any terms in this RFP. The foregoing applies only to such associations and governing bodies rules and guidelines, and any changes to such rules and guidelines during the term of the EVT Contract. If the successful Bidder changes their operating rules during the term of the EVT Contract, and such changes are not mandated by association or governing body rules or guidelines, the proposed change will be subject to review and approval by the State of New York and, if not approved the State, may terminate the EVT Contract for convenience pursuant to clause II.10.

When required by an Authorized User, the Bidder must agree to conform to all local, state and federal statutes and regulations governing that Authorized User, any of the programs which it implements, and its contractors to the extent they do not conflict with the Association Rules. This may include, but is not limited to, Authorized Users requiring the Bidder to consent to an examination by independent auditors as a service organization in accordance with the American Institute of Certified Public Accountants Statement of Auditing Standards No. 70 (SAS 70) “Reports on the Processing of Transactions by Service Organizations.”

All taxes due and owing from the EVT Contractor, or any subcontractor, to the State of New York must be satisfied prior to utilization of the final contract by the New York State Department of Taxation and Finance. For purposes of this requirement, the term “taxes due and owing” shall not include those which the EVT Contractor is contesting with the Department, those for which the applicable limitations period to so contest has not expired, and those for which the EVT Contractor has entered into a payment agreement with the Department.

THE WARRANTIES SET FORTH IN THE CONTRACT ARE IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHSNTIBILITY AND FITNESS FOR A PARTICULAR PURPOSE. Misuse, accident, unsuitable physical or operating environment, modification or operation inconsistent with standard industry practice, or failure caused by a product for which Contractor is not responsible may void warranties. For the purposes of administering the working interim account, the Contractor is solely responsible for the funds until such time as the funds are deposited and received in the Authorized Users’ accounts.

II.15 Performance Standards & Payment Credit

Not withstanding Credit/Charge Card, Off-line & On-line Debit Card, ACH or Fedwire, SWIFT and/or CHIPS Association or governing body rules, the performance standards & payment credit provisions set forth below shall apply to the EVT Contractor. The EVT Contractor agrees to comply with the applicable performance standards as set forth below throughout the contract term. In the event that the EVT Contractor fails to adhere to or comply with the performance standards stated below, the Authorized User shall, at their discretion be entitled to a credit against payment due the EVT Contractor for a sum calculated as set forth below (“payment credit”). These credits are exclusive remedies, under this RFP, for failure to adhere to, or comply with, the enumerated performance standards. These remedies are in addition to and do not restrict other remedies that are available under law or the EVT Contract. Page 16

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However, the Authorized User shall not be entitled to a credit to the extent that the failure to meet the performance standard arises from causes beyond the EVT Contractor’s control and without the fault or negligence of the EVT Contractor (Acts of God, the public enemy, fires, floods, freight embargoes, regulated telephone company delays, etc.).

PERFORMANCE STANDARDS PAYMENT CREDITSA Financial Services Processing: EVT Contractor will accurately capture, report and settle all electronic transactions in a timely

manner. The EVT Contractor shall provide all services so as to achieve 98.5% error-free and timely processing.1 Service Interruption(s) or Failure(s)

The EVT Contractor shall maintain redundant back-up systems, including disaster recovery facilities, in order to facilitate uninterrupted services, exclusive of planned maintenance downtime. Planned maintenance downtime must be done pursuant to a maintenance program known to the Authorized User, in advance.

In the event of a temporary interruption(s), partial loss or complete failure to provide service, EVT Contractor shall use all commercially reasonable means to restore the system to full operation.

Any temporary interruption(s), partial loss or complete failure to provide FSP services (“incident’) during the preceding month shall be reported in detail, per incident, to the Authorized User and the EVTA. Such report shall include the date, time of incident, duration of incident, and type of service loss for each incident.

Payment Credit: If the cumulative duration of all incidents (defined here in A1) in a calendar day exceed five (5) hours per day, then the Authorized User shall be entitled to payment credit(s) to cover its loss of use of funds. In the event of an interruption or failure in FSP, EVT Contractor shall provide a payment credit for the Lost Float, calculated as follows:

LOST FLOAT = [(Funds * STIP) / 365] * days

FUNDS = Funds shall be defined as the estimated funds which would have been received by Authorized User during the period(s) of outage had service been continuous.

The ‘estimated funds’ shall be calculated as follows:i. determine the average daily balance for Authorized Users’ transactions

processed during the previous month (if less than one year of historical data available), or the average daily balance for transactions processed during same month in the previous year (if more than one year of historical data available);

ii. multiply the average daily balance by the number of calendar days in which the minimum performance standard was not met.

STIP = Shall be defined as the effective rate of State’s Short Term Investment Pool on first day EVT Contractor failed to meet the minimum performance standard.

DAYS = Shall be defined as the total number of Authorized User’s normal business days in which the minimum performance standard was not met.

2 Failure to Submit Draft Captures TimelyEVT Contractor must submit authorized transactions for draft capture within the time frame required by the applicable card association to receive the lowest rate for the type of transaction.

Payment Credit:Where a draft capture is not submitted timely, resulting in a higher interchange and assessment fee being charged for the transaction, the EVT Contractor shall provide a payment credit to the Authorized User for the difference between the interchange and assessment fee which would have been charged had the draft capture been submitted timely. The EVT Contractor shall not be entitled to a credit where the rate actually charged is lower than the interchange and assessment rate which would have been charged had the draft capture been submitted timely and the amount of the interchange and assessment was charged.

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PERFORMANCE STANDARDS PAYMENT CREDITS3 Failure to Meet Processing

Time/RequirementsEVT Contractor must initiate transactions to credit funds to depository accounts designated by Authorized User(s) within the agreed upon time frames set forth in the EVT Contract, and Authorized Users’ Implementation Plans and Schedules.

Payment Credit: Where transactions are not initiated to credit funds to designated accounts within the minimum performance standard, for reasons other than service interruptions or failures, the Authorized User shall be entitled to the funds in question in addition to payment credit(s). EVT Contractor shall provide a payment credit for the Lost Float, calculated per #1 above, however, “Funds” and “Days” shall be defined as:

FUNDS = Funds which the EVT Contractor failed to process, or processed in an untimely manner.

DAYS = Total number of twenty-four hour periods in which the minimum performance standard was not met, starting from the date and time on which the funds should have been deposited (i.e., settlement posted within two days, posted after 3pm on day two) and continuing for each 24 hour period thereafter until the date and time of credit to depository account.

4 ReportingThe EVT Contractor must meet all standards set forth in the contract and Implementation Plan for filing of reports, content, format and accuracy. The EVT Contractor must provide accurate monthly reports to Authorized Users and to required agencies (e.g., OGS, EVTA) within ten calendar days following the end of the month.

The content, format and delivery method of these reports will be specified in the EVT Contract and may be modified in the Authorized User’s Implementation Plan.

Payment Credit: EVT Contractor will provide payment credit in the amount of $500 for each report that fails to meet the performance standard after a ten (10) day extension period and $500 for each subsequent ten (10) day period in which the performance standard is not met.

5 Help-Desk ServicesThe EVT Contractor must provide help-desk services to Authorized Users 24-hours per day, 7 days per week. The EVT Contractor must provide any on-site assistance to Authorized Users as specified in the Implementation Plan and requested by Authorized Users.

Payment Credit:Where the failure to provide Customer Assistance/Support results in the Authorized User being unable to accept electronic payments as specified in the Implementation Plan, they shall be entitled to Payment Credits using the Service Interruption or Failure Payment Credit calculation defined above.

6 Security and ConfidentialityThe EVT Contractor and its subcontractors are responsible for Authorized Users’ security needs, the security of the data and processing procedures and for compliance with all applicable state laws pertaining to the security of data.

Payment Credit:In addition to other remedies available under law, reimbursement to all affected Authorized Users for any expenses incurred as a result of failure to meet the standard.

And

A payment credit of $2,500 for each violation of the unauthorized access; with corrective time frames specified by the Authorized User for each violation which, if not adhered to would result in subsequent payment credits.

PERFORMANCE STANDARDS PAYMENT CREDITS B Audit Monitoring Requirements Timeliness, Completeness and Accuracy 1 Audit Monitoring

The EVT Contractor and/or its subcontractors must cooperate fully with Authorized Users and other agencies (OSC, OGS, EVTA, DOB)

Payment Credit:Authorized Users will be entitled to reimbursement of $1,000 per day for failure to meet the requirement

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during performance audits and contract reviews.II.16 Administrative Requirements

A. Contract / Agency Meetings

(1) Upon award of the EVT Contract and prior to the start of any services to be provided, the Successful Bidder shall be available for an initial services meeting with the OGS Procurement Services Contract Administrator, EVTA and where necessary individual Authorized Users making use of, or intending to, make use of this contract.

(2) During the Contract term, the EVT Contractor, the EVTA and OGS shall meet annually, or more frequently as required, for the following purposes:a. Review quality of services provided,b. Identify and resolve problems which impede planned progress,c. Coordinate the efforts of all concerned so that the contract progresses properly,d. Maintain a sound working relationship between the EVT Contractor and the Authorized Users and a mutual

understanding of the contract, ande. Maintain sound working procedures.

The EVT Contractor and the EVTA will meet at least annually to develop a mutually agreed upon timetable for the implementation of Authorized Users’ Payment Programs.

It is the intent that disputes between the EVT Contractor and the Authorized User and/or the State of New York will be resolved as a result of these periodic meetings. However, if an amicable solution cannot be reached regarding any problems the State reserves its right to exercise any and all options under the EVT Contract which may include termination of the Contract or the Authorized User’s participation hereunder.

In the event any disputes arising under this Agreement cannot be timely resolved between the Authorized User and the EVT Contractor, the parties agree to use the dispute resolution procedures set forth in Appendix C.

II.17 Fee Escalation

Fee escalations will not be allowed at any time during the term of the Contract, including any extensions, for FSP and Transaction Interface items that are within the EVT Contractor’s control and are based on a percent fee. For FSP and Transaction Interface fees/rates not expressed as percentages, the fee/rate may not be escalated for a period of three years. After three years, the EVT Contractor may seek fee/rate escalations to flat fees not to exceed the annualized Consumer Price Index-All Urban Consumers (CPI-U) as established for the year preceding the proposed increase.

However, the EVT Contractor may change the interchange and assessment rates or other third-party costs not in the EVT Contractors control during the Contract term in an amount equal to the increase from third party national credit/charge card associations imposed. The EVT Contractor must provide advance notice of such changes. Third party interchange rate and assessment fee increases pursuant to this paragraph may be passed through to the State provided that the EVT Contractor has documented the charges. The effective date of such changes shall coincide with the beginning of the next monthly invoicing cycle. However, if the EVTA, OGS and the State Comptroller determine the change(s) to the interchange and assessment fees to be unacceptable, the State shall have the option of terminating the EVT Contract, and shall provide the EVT Contractor with 30 days written notice of such termination. Such documentation shall be deemed accepted upon the State’s receipt of the following:

1. Notice of said increase shall be furnished to the State at the address stated in Section II.1 at least thirty days prior to such change going into effect; and

2. The EVT Contractor shall furnish a written statement from the third party association verifying: l) the date on which such fee increase from third party shall be deemed effective as against all entities in the same class or status as the EVT Contractor within the Marketplace; and 2) the increase in the charge which the third party vendor is charging to the EVT Contractor as an interchange rate, or assessment fee; and 3) that such modification is made on a national basis and applies equally to all entities in the same class or status as EVT Contractor within the Marketplace; and

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3. The EVT Contractor must certify that the interchange rate and assessment fee offered to the State constitutes the lowest interchange rate and assessment fee offered by the EVT Contractor nationally to its governmental or emerging market customers.

The EVT Contractor shall not be otherwise authorized to increase the fees stated herein for other than third party interchange and assessment rates, or to charge additional fees for services, software or hardware listed in this Agreement during the contract term.

The State reserves the right to renegotiate volume-based pricing if, during the term of this agreement, including any renewals or extensions, the actual contract volume exceeds the highest Total Number of Transactions Per Month range established in Table VI – Statewide Aggregate Volume Discount Pricing of Section V, Bidder Financial Requirements or to terminate the contract consistent with Section II.10 if a mutually agreeable adjustment is not reached, and in such event the State is free to enter into another contract for FSP services.

II.18 Contract Migration

Authorized Users holding individual contracts with the successful bidder shall be able to migrate to the EVT Contract, effective on the contract award date.

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SECTION III. CONTRACT ADMINISTRATION

The intent of this section is to acquaint prospective contractors with the procedures and methods Authorized Users will follow in order to utilize this contract.

III.1 Contract Designation

The contract resulting from this RFP shall be designated a “PS” contract. “PS” is a contract for services which an Authorized User utilizes on an intermittent basis issuing a purchase order to the contractor for a specific term and for either a fixed amount (if known) or for an estimated amount. Payments are then made each month against the purchase order for actual expenditures.

III.2 Voluntary Extension of Contract

Special attention is called to Appendix B, Clause 39, in particular 39 (c) which permits voluntary extension of this contract to other entities previously authorized by law (i.e., charitable, educational, and other non-profit/non-public entities).

A. The Bidder should indicate whether it agrees to extend this contract in accordance with clause 39 (c) by completing the voluntary extension check-off in the “Bid Submittal Checklist,” found in the Bidder Response Forms section.

III.3 Procurement Instructions

A. Authorized Users will review the list of rates and services from the Contract Award Notification (CAN), which is the award document prepared by OGS to notify Authorized Users of a contract award. OGS reserves the right to add additional procurement instructions in the Contract Award Notification, in addition to the general instructions contained in this RFP.

B. Authorized Users that are State Agencies must submit an EVT Agency Plan to the Electronic Value Transfer Administrator for review and approval. Upon Approval of the EVT Agency Plan the Authorized User will receive an approval letter that must be shown to the EVT Contractor(s) prior to the EVT Contractor(s) provision of any services. Authorized Users that are not State Agencies must submit their requirements directly to the EVT Contractor.

C. The EVT Contractor will be required to acknowledge in writing if the application can be developed. The EVT Contractor must provide such acknowledgment within ten (10) business days of receipt of such requirements.

D. Authorized Users will contact the EVT Contractor to set up an initial meeting, if required, to outline specific scope of services/interfaces required.

E. The EVT Contractor shall develop the exact cost or estimated cost if an exact cost cannot be determined at that time, based upon the Contract pricing and the plans as submitted by each Authorized User. The cost or estimated cost must be provided in writing within 10 business days of completion of the outlining of the specific scope of work.

F. The Authorized User shall issue a purchase order or other written order for work. Note: for services, purchase orders may be issued for an estimated quantity for the entire year.

G. The Authorized User will issue purchase orders or other written orders which are effective and binding in accordance with Appendix B, Clause 44.

H. Authorized User(s) reserve the right to secure through separate procurement methods all or part of the Transaction Interfaces from any other existing contract sources, including OGS centralized contracts.

III.4 Updating Contractor Listing

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The auto add method may be utilized to update the Financial Services Processing and Transaction Interfaces offered by the EVT Contractor. See Exhibit No. 2 - OGS Procedures for Updating Contract Pricing and/or Product Listings for procedures for updating Financial Services Processing and Transactions Interface offerings.SECTION IV. BIDDER TECHNICAL QUALIFICATIONS & SERVICE REQUIREMENTS

IV.1 Bidder Qualifications

The Bidder must submit a definitive description of the resources available or other pertinent information to demonstrate the Bidder’s ability to perform the requested services. A general response to any mandatory RFP requirement not designated as an affirmation that is merely a non-specific statement that the requirement can be met, shall be deemed non-responsive and may subject the bidder to disqualification of its proposal.

A. Qualified Bidder (Mandatory)

A “Bidder” may be any entity that at a minimum can provide Financial Services Processing and Transaction Interfaces. The Bidder may be any legal entity, provided that: (1) Bidder provides documentation establishing the legal status of the entity; (2) all directors, officers, members, partners, joint venturers, etc., of the bidding entity must be identified in the bid; and (3) one partner, joint venturer or other legal entity must be designated as lead for purposes of administering the contract. The Bidder must be the entity providing Credit/Charge Card and On-Line and Off-Line Debit Card Financial Services Processing. All other Financial Services Processing and Transaction Interfaces may be provided by prospective subcontractors of the Bidder.

B. Authorized Financial Services Processing Provider (Mandatory)

1. The Bidder must affirm that it meets all PCI DSS standards and that it is authorized by the appropriate associations, networks and other necessary organizations to provide Financial Services Processing for:

Credit/Charge Cards (i.e., MasterCard, VISA, Discover and American Express branded cards), Debit Cards (On-Line and Off-Line), Smart Cards, and Stored Value Cards

Additionally, the Bidder must affirm that it or its prospective subcontractors are authorized by the appropriate associations, networks and other necessary organizations to provide Financial Services Processing for:

Automated Clearing House (ACH) Credit and Debit transactions, and Fedwire Funds Transfers and similar transactions (including CHIPS and SWIFT).

The Bidder must agree to seek similar authorization for such other future electronic payment devices as may be added upon mutual agreement of the parties during the contract term.

2. The Bidder must affirm that all Transaction Interfaces provided under the EVT Contract are certified by the Bidder for FSP processing. As necessary, the EVT Contractor will be required to work with, and certify other Transaction Interfaces acquired by Authorized Users outside the EVT Contract.

3. The Bidder must agree to work with Authorized Users and their contractors to develop and maintain interfaces between such entities and the Bidder for completing electronic value transfer transactions, producing necessary reports, and supporting reconciliation requirements. Bidder responses must include their procedures and/or requirements for developing and/or approving interfaces identifying any mandatory requirements or approval steps to be followed. These procedures must facilitate the acceptance of electronic value transfer transactions from all Authorized Users and their contractors throughout the term of the EVT Contract.

4. The bank utilized by the Bidder for processing funds from any electronic payment transaction performed pursuant to the EVT contract, including but not limited to, credit/charge cards, on-line and off-line debit cards, ACH credit and debit, and Fedwire and similar transactions must:

a. Be a State or Federal chartered bank.b. Have a branch located in New York State.c. Have an organization rating of at least 30 as published in the most current issue of Sheshonoff’s Banking

Organization Quarterly or a LACE Financial Rating of at least C+.

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d. Have on file with the Office of the State Comptroller, at the time of the Electronic Value Transfer contract award and maintain throughout the contract term, a “State of New York Undertaking for Bank Deposits and Assignment Securities”. This undertaking will be sent to the bank by the State Comptroller’s Office if all other requirements are met. Once the bank signs the undertaking, it will be certified by the State Comptroller’s Office and a copy returned to the bank.

C. Experience (Mandatory)

The Bidder must demonstrate its qualifications to meet the requirements of this RFP, including identification of key Bidder personnel and their relevant expertise, the Bidder’s experience with contracts of this magnitude and scope, financial ability to handle the volume and revenue anticipated under the contract and its integrity and reliability. Responses shall include:

1. Executive Summary

The Bidder shall provide an executive summary including profiles of its operations and qualifications. These profiles shall outline the Bidder’s and its prospective subcontractors’ operations and technical qualifications and experience relevant to the performance of the contract. These profiles should include: locations (including but not limited to primary location, additional processing centers, backup sites, etc.), corporate and organizational structures using organizational charts, areas of expertise and overall experience with Financial Services Processing and Transaction Interfaces. The executive summary shall also include an overview, including diagrams, to their approach to providing service requirements contained herein, highlighting the strengths and capabilities of the Bidder to provide such services.

2. Financial Statement Summary

The Bidder and any prospective subcontractors shall submit financial statements for the most recent three fiscal years. The statements must be prepared in conformance with Generally Accepted Accounting Principles and have been audited by a CPA in conformance with auditing standards in the United States of America or in accordance with the standards of the Public Company Accounting Oversight Board (United States). The Bidder and any prospective subcontractors may also be required to submit audited financial statements for the last three (3) fiscal years for any parent and subsidiary company. In addition, the State reserves the right to require bidders to submit interim financial statements or the financial statements of any predecessor company (including any joint-ventures or partnerships).

If the Bidder/subcontractor or parent or subsidiary was formed less than three (3) years ago, audited statements covering the period beginning from the date the Bidder/subcontractor entity was created through the most recent fiscal year end will be required.

The Bidder (if other than a State or Federally Chartered bank) shall submit a primary bank or federal lending institution reference including the name, address and telephone number of the contact person.

3. Network/Physical Plant

Bidder shall supply a clear and comprehensive description of the Financial Services Processing network that is proposed for use. Included in this description shall be information concerning the ownership, capacity, backup, recovery, redundancy, and performance record of the network. Submit any diagrams or charts that may be appropriate.

Include the following information in the proposal for the proposed Credit/Charge Card network:

a. Ownership: detail whether the network is proprietary or subcontracted, provide the name and address of subcontractor(s).

b. Capacity: provide the number of transactions per second currently being performed and the maximum number of transactions per second that the network is capable of performing.

c. Redundancy: describe any redundancy within the network.

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d. Performance: provide the total number of hours of downtime the network has had in the last year and the average annual downtime over the last three (3) years. Separately state the number of hours of downtime included in last year’s figure that was planned downtime for maintenance and those hours that were unplanned downtime.

Include the following information in the proposal related to On-Line Debit card processing:

e. The national On-Line Debit card networks which the Bidder is currently processing transactions through, identifying which national networks the Bidder is proposing to utilize under the EVT Contract.

f. The regional and local On-Line Debit card networks which the Bidder is currently processing transactions through, identifying which regional and local networks the Bidder is proposing to utilize under the EVT Contract.

4. Relevant Work Experience & References

The proposal must list and describe the Bidder’s and any prospective subcontractors’ relevant work experience in specific projects and contracts involving provision of Financial Services Processing and Transaction Interfaces to large governmental entities (i.e., federal or state governments or their subdivisions). Descriptions should include the size, scope and duration of each project, specifying the time period the work was performed. If the Bidder has no prior large governmental experience, the Bidder should furnish information for similarly sized large commercial entities, small governmental entities (i.e., local government or their subdivisions) or similarly sized small commercial entities.

The Bidder and all prospective subcontractors must provide a minimum of three, and a maximum of five, references for Financial Services Processing and Transaction Interfaces including contact name, current phone number, address of customer or client account and a brief description of the scope of services performed and the time period the work was performed. The order of preference for the types of projects for the references is: large governmental entities, large commercial entities, small governmental entities and small commercial entities.

5. Key Personnel and Organizational Resources

The Bidder must document its ability to provide qualified staff and other personnel resources to successfully provide the required services. The following information regarding qualifications of key Bidder and prospective subcontractor personnel must be provided:

Key personnel should be listed in order of their position of responsibility relative to electronic payment processing.

Relevant qualifications, business experience and technical expertise for all key personnel should be provided. This section should identify how the relevant qualifications or special expertise of each individual will enhance performance of the EVT Contract. Separate resumes outlining certifications held, educational qualifications and relevant experience for the past three years for key personnel should be included as an attachment.

Specific functions for each key personnel member and how they will perform including the percentage of time that will be devoted to the EVT Contract and the degree of management, oversight or direct supervisory responsibility that each individual will have under the EVT Contract shall be provided by the Bidder.

The Bidder may not replace identified key personnel without prior written notification to OGS Procurement Services Group (PSG) at the address listed in Section II.1 of this RFP. Any replacement must have equal or greater qualifications and experience than the individual replaced.

D. Use of Subcontractors (Mandatory)

The Bidder may not subcontract FSP services for: Credit/Charge Card processing (MasterCard, Visa, Discover and American Express branded cards) and Debit Card processing (On-Line and Off-Line). The Bidder may use subcontractors for providing other FSP services (ACH Credit and Debit, Fedwire, CHIPS and SWIFT transactions) and for providing Transaction Interfaces. Only the Bidder or its subcontractors which have been approved by the State pursuant to Appendix B, Clause 57 may perform work under this contract.

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1. Affirm Use of Subcontractors

The EVT Contractor will be considered the "prime" Contractor and shall be fully responsible for all performance of the Contract, including work performed by subcontractors. The EVTA and OGS reserve the right to require the EVT Contractor to provide evidence of the subcontractor’s financial stability (e.g., financial statements) and technical qualifications (e.g., resumes, references, and qualifications) at any time during the contract term, and reserve the right to withdraw prior approval of a subcontractor in the best interest of the State or for cause, or upon a finding of non-responsibility. The Bidder must affirm in writing and include in Bidder’s proposal, its understanding and acceptance of these Use of Subcontractors requirements.

2. Identifying Subcontractors

The Bidder must identify in the Bid Proposal all subcontractors that will be used to perform Financial Services Processing, limited to ACH Credit and Debit, Fedwire, CHIPS and SWIFT processing, and to provide Transaction Interface, including summaries of their qualifications, FSP certifications, experience and duties. The EVT Contractor must similarly identify in each Implementation Plan, all subcontractors which will be performing Financial Services Processing, limited to ACH Credit and Debit, Fedwire, CHIPS and SWIFT processing, and providing Transaction Interfaces on the Authorized User’s Implementation Plan.

E. Qualifications & Additional Information (Desirable)

The Bidder should note other qualifications or additional information that it believes would be of importance to the State in determining that the bidder is qualified. All statements made must be able to be independently verified by the State.

IV.2 Service Requirements

The Bidder must provide a detailed narrative response, which fully discusses and describes the manner in which it meets or exceeds the following service requirements for Financial Services Processing and Transaction Interfaces. The Bidder’s response must specifically address the unique needs of the State.

In general, in order for the Bidder to meet or exceed mandatory service requirements, the Bidder must have those services available as of the response date of this RFP. As an exception, the Bidder may meet or exceed certain mandatory service requirements by responding that the services will be developed and available after the response date of this RFP. These mandatory service requirements are identified as “may be developed” within the RFP. With respect to desirable service requirements, the State recognizes that many of these may also need to be developed by the successful Bidder after award of the contract. For those mandatory services requirements identified as “may be developed” and for all desirable service requirements to which the Bidder is responding, the Bidder is required to provide a detailed work plan that includes, but is not limited to, the following information for each service requirement:

Scope of work, Staff level and number of staff assigned, Expected time frame for completion, and An affirmation that all work will be completed, tested, and sufficient time allowed for approval by the State, prior to the

expected conclusion of contract negotiations.

The Bidder must identify in the bid response any service requirement(s) that require(s) development work and provide a detailed work plan for the design and implementation of the services to comply with the requirement(s). Failure to provide a work plan as needed may result in a reduced evaluation score for that requirement.

A. Financial Services Processing (FSP)

The Bidder must describe all services necessary to support Card-Based and Non-Card Based payments. The Bidder should assume that Authorized Users may use any combination of payment applications (i.e., some or all Credit/Charge Cards, ACH payments, etc.), and that Authorized Users may elect to use one or more Merchant IDs to distinguish transaction types (e.g., used to differentiate various applications within an Authorized User’s agency) and to manage funds.

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1. Types of FSP Services

a. FSP Services (Mandatory)

The Bidder responding to this RFP must affirm to comply at all times during the contract term with all applicable state and federal laws in rendering services, and must affirm to be able to process the following types of electronic payments:

1. Credit/Charge Card Payments,2. On-Line & Off-Line Debit Card Payments,3. Automated Clearing House (ACH) Credit and Debit transactions, and4. Fedwire and similar transactions (including CHIPS and SWIFT).

b. Additional FSP Services (Desirable)

The Bidder should describe its commitment to providing and supporting additional payment options using alternative technologies such as Internet payment alternatives (including payments made through e-mails), Stored Value Cards, micro-payments, and any other paperless transactions that may be made available under the EVT Contract at a future time. The Bidder should discuss its plans to process Smart Cards, including personal services and financial resource commitment to accept Smart Cards, card utilization analysis and anticipated date to begin accepting Smart Cards. Additionally, the Bidder should discuss its plans, if any to process electronic cash payments initiated through Internet e-mails.

2. Types of Card-Based Electronic Payments (Mandatory)

The Bidder must process and accept the four nationally recognized Credit/Charge Cards (MasterCard, VISA, Discover and American Express branded cards), Off-line Debit Cards and national and regional On-line Debit Card networks and other forms of card-based electronic payment devices as may be added upon mutual agreement of the parties during the contract term. Such processing shall include Recurring and Preauthorized payment arrangements. The Bidder’s response should certify their ability to accept and process card-based electronic payments.

3. Types of Non-Card Electronic Payments (Mandatory)

The Bidder must support ACH Credit and Debit transactions, Fedwire and similar transactions including CHIPS and SWIFT transactions, and other forms of non-card electronic payment devices as may be added upon mutual agreement of the parties during the contract term:

a. ACH Credit Transactions

The Bidder or its prospective subcontractor(s) must be authorized to participate in the ACH Network as a Receiving Depository Financial Institution (RDFI). The Bidder or its prospective subcontractor(s) must accept through the ACH Network, ACH Credit payments transactions and ACH Credit payment recall requests initiated by Device Users. The Bidder or its prospective subcontractor(s) must conform to all National Automated Clearing House Association (NACHA) operating rules and guidelines in performing ACH Credit transactions. Describe the functionality that the Bidder is proposing for the following requirements that must be provided at the request of Authorized Users:

Creating multiple depository accounts for each Authorized User and creating a centralized depository account for depositing all ACH Credit payments received.

Providing on-line inquiry capability for Authorized User inquiries to review the status of a transaction, the cause for rejection, etc

Creating files meeting the Authorized Users’ requirements for content (including, but not limited to, payee identification information, ACH Credit payment amount and the date and time of authorization and settlement of these payments), transmission frequency and delivery method.

Customer assistance to the Authorized User and their Device Users regarding researching payment exception/non-reconciliation conditions and other areas required by the Authorized Users.

b. ACH Debit Transactions

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The Bidder or its prospective subcontractor(s) must be authorized to participate in the ACH Network as an Originating Depository Financial Institution (ODFI). The Bidder or its prospective subcontractor(s) must, at the request of Authorized Users originate ACH network debit and prenote transactions. The Bidder or its prospective subcontractor(s) must, at the request of Authorized Users provide for conversion of paper checks to electronic checks for Point-Of-Purchase transactions. The Bidder or its prospective subcontractor(s) must agree to re-originate returned ACH Debit transactions after an initial failed attempt at the request of the Authorized User. All ACH Debit and prenote transactions must be formatted using NACHA file formats. The Bidder or its prospective subcontractor(s) must agree to accept and reformat files received from Authorized Users to the NACHA formats. The Bidder or its prospective subcontractor(s) must also accept returned ACH Debit and prenote transactions from the ACH network and report all returned debit and prenote transactions to the Authorized User. The Bidder or its prospective subcontractor(s) must support processing Recurring and Preauthorized payment arrangements. The Bidder or its prospective subcontractor(s) must conform to all NACHA operating rules and guidelines in performing ACH Debit and prenote transactions. Describe the functionality that the Bidder is proposing for the following requirements that must be provided at the request of Authorized Users:

Creating multiple depository accounts, if necessary, for each Authorized User and creating a centralized depository account for depositing all ACH Debit payments received.

Providing on-line inquiry capability for Authorized Users inquiries to review the status of a transaction or a prenote transaction including the reason for rejection and the associated notification codes. (“may be developed”, see second paragraph Section IV.2 on page 25).

Creating files meeting the Authorized User’s requirements for content (including, but not limited to, payee identification information, ACH Debit payment amount and the date and time of authorization and settlement of these payments), transmission frequency and delivery method.

Provide procedures for determining which checks can and cannot be accepted for check conversion. Customer assistance to the Authorized User and their Device Users regarding researching payment exception/non-

reconciliation conditions and other areas required by Authorized Users.

c. Fedwire and Similar Electronic Payments

The Bidder or its prospective subcontractor(s) must be authorized to receive Fedwire and other similar electronic payments including CHIPS and SWIFT. The Bidder or its prospective subcontractor(s) must process Fedwire and other similar electronic transactions as received, resolving exceptions as needed to fully process transactions through deposit. Describe the functionality that the Bidder is proposing for the following requirements that must be provided at the request of Authorized Users:

Creating multiple depository accounts for each Authorized User and creating a centralized depository account of depositing all Fedwire and similar electronic payments received.

Providing on-line inquiry capability, if available, for Authorized Users to review the status of a Fedwire or similar electronic payment transaction.

Creating files meeting the Authorized User’s requirements for content (including, but not limited to, payee identification information, payment amounts and the date and time of authorization and settlement of these payments), transmission frequency and delivery method.


4. Pre-Funding (Desirable)

The Bidder should describe the options available to Authorized Users for receiving pre-funded settlements (e.g., funds settled in advance of the established settlement timeframes). Bidder’s offering pre-funding must identify fees payable by Authorized Users selecting a pre-funding option by completing Table XII – Pre-Funding Receipt of Funds.

5. Check Verification, Recovery and Guarantee (Desirable)

The Bidder should describe the check verification, check recovery and check guarantee options made available to Authorized Users. Check verification, recovery and guarantee services are intended to be made available through the EVT

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Contract for electronic checks created through check conversion. The Bidder should provide a description of available services and their procedures and requirements for Authorized Users to use these services. The Bidder should also describe if check verification, recovery and/or guarantee could be made available to other types of ACH Debit transactions. Bidders providing check verification, check recovery and/or check guarantee must complete Table X – Electronic Check Verification, Recovery & Guarantee.

6. Statutory Notice Requirements for State Agencies (Mandatory)

a. Device User Notification

Where a surcharge and/or convenience fee is to be passed through to the Device User when making payment to a State Agency, New York State Finance Law § 4-a, subdivisions (3) and (4) require the Device User to be notified of the amount of the surcharge and/or convenience fee prior to the completion of a transaction. For Internet and IVR applications the notice must be provided to the Device User during the session/call and the Device User must affirm agreement to accept the amount prior to committing the transaction. The Bidder must agree to support processing of transactions in such a manner that enables Authorized Users to notify Device Users of any surcharge and/or convenience fee and agree to support separate transactions for the transaction amount and the surcharge/convenience fee amount.

b. Surcharge and Convenience Fee Rules

The Bidder must indicate in its proposal, for informational purposes only, under which condition(s) (i.e., by device type and accepted payment methods), card association rules permit surcharge and/or convenience fees and identify those transaction types which can use this option.

7. Accepting Electronic Data From Payment Devices (Mandatory)

a. Payment Devices

The Bidder must be able to provide and support FSP services and data exchange through the following data capture/transmission devices and such other payment devices as may be added upon mutual agreement of the parties during the contract term:

Point-of-Sale Terminals (including those equipped with signature capture and/or PIN pads for debit card processing and/or Contactless Payments)

Interactive Voice Response (IVR) applications Internet applications PC-Based applications Mainframe processing (batch and real-time) Self-Service Terminals (kiosks) New York State Intranet (NYeNET) or any localities intranet

Note: The New York State Intranet (NYeNET) utilizes a TCP/IP protocol to provide a statewide communications link to State agencies and local governments. See the New York State’s Office for Technology’s web site at www.oft.state.ny.us for more information regarding the NYeNET.

The Bidder’s response should affirm their ability to provide and support financial processing services and data exchange through the listed devices and other devices that may become available during the contract term.

b. Payment Devices, Connectivity and Interfaces

The Bidder must provide a description of the types of connectivity alternatives available and interfaces supported between the Authorized User and the Bidder’s system, including dial-up, leased lines, ISDN, Host-to-Host (dial-up batch), wireless (cellular) and satellite.

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http://www.oft.state.ny.us/


The Bidder must provide a detailed description of the connectivity alternatives available to support on-line payment processing from Authorized User Internet applications, identifying if on-line payments will be processed on Authorized Users Web Sites or if another Web Site would need to be accessed to process transactions. The Bidder should indicate if these on-line payment alternatives are available for no additional fee; any additional fees for these services should be reported in Table IV – Fees for Additional Services.

For informational purposes, discuss the security features and response times for these connectivity alternatives.

c. User Documentation

The Bidder must provide, for informational purposes, User Documentation including: formatting requirements, record layouts, applicable edits and validations, to be used by Authorized Uses in processing Credit/Charge Cards, On-line and Off-line Debit Cards and ACH Debit transactions, noting whether a NACHA formatted record is required.

d. Authorized User Unique Field (“may be developed”, see second paragraph of Section IV.2 on page 25)

At the option of the Authorized User, the Successful Bidder must affirm the provision of a 20 character, alpha-numeric, unique field which is to be provided for the Authorized User’s use in verifying and processing electronic payments for both automated and manual transactions. The alphanumeric field will be unique for each transaction. This field must be included on any reports displaying individual electronic payment transactions, and shall be electronically transmitted by the Authorized User with each transaction. This field may be used for identification, reference, balancing, and reconciliation purposes. For ACH transactions it is permissible to use the general message text to transmit the Authorized User Unique Field information.

The Bidder must describe the planned methods for using an Authorized User Unique Field for each of the data capture/transfer devices listed under Section IV.2.A.7.a above, as applicable, and for each type of electronic payment (i.e., Credit/Charge Cards, On-line and Off-line Debit Cards, and ACH Credit and Debit transactions). If available, the Bidder should provide their procedures for using an Authorized User Unique Field.

e. Testing

Bidder must provide to each Authorized User, at no additional cost, testing of all card based payment types (i.e., Credit/Charge Cards and On-line and Off-line Debit Cards) and non-card based payment types (i.e., ACH Credit and Debit and Fedwire, SWIFT and CHIPS) through each of the data capture/transfer devices listed under Section IV.2.A.7.a above. Bidder must describe their methodology and procedures for testing acceptance of card and non-card payments through each of the payment devices, including a description of the testing environment and data.

8. Processing and Settlement (Mandatory)

The Bidder and their prospective subcontractor(s) must adhere to their proposed timeframes for processing Credit/Charge Cards, On-line and Off-line Debit Cards, ACH Credit and Debit transactions, Fedwire, CHIPS and SWIFT transactions provided in Table XI – Funds Availability.

a. Credit/Charge Cards and On-Line/Off-Line Debit Card Transactions – The Bidder must describe:i. The authorization process for MasterCard, VISA, Discover and American Express branded cards, identifying

the method for processing the authorizations, including voice authorization and the expected timeframe for processing/receiving authorizations by device type. Include a description of the authorization process for Recurring and Preauthorized payment transactions. Describe by device type the information that will be provided back to Authorized Users for authorized and declined transactions, including a listing of the declination codes. The Bidder should include descriptions of the required and/or desired data elements (e.g., card number, expiration date, etc.) necessary to perform authorization for non-qualified transactions.

ii. The merchant accounts which would need to be established for multiple Authorized Users and for subdivisions of Authorized Users to facilitate the authorization and settlement process.

iii. The data capture (for all four card types) and settlement process (for MasterCard and VISA) transactions including the expected timeframe for submitting transactions to the MasterCard and Visa networks and crediting investable funds into the account(s) designated by the Authorized User and the ability to provide

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individual or aggregated transfers to one or more accounts as established by the Authorized User. Include a description of the data capture and settlement process for Recurring and Preauthorized payment transactions. Note, the Bidder must also complete Table XI - Funds Availability.

iv. Settlement and Close-out procedures including but not limited to the following:1. Whether terminals are automatically batch closed at a predetermined time, or if they are manually closed, or

both.2. If settlement can be made by either ACH or Fedwire and identify the procedures. The Bidder must also

identify the associated costs in Table IV - Fees for Additional Services.3. Whether settlement amounts can be listed separately for each Credit/Charge Card and On-line Debit Card

network on the bank statement or as a lump sum.v. Transaction Posting Procedures including but not limited to the following:

1. The levels of detail available and how the Bidder proposes to reconcile transactions.2. The ability and mechanism for reconciling transactions to summary report information.3. The nature and timing of the confirmation that the Authorized User will receive upon presentation of an

electronic payment (i.e., does the bidder have same day, on-line, reporting capability by following level of detail: Individual Device Number, Batch Level, Total or Consolidated, and Individual Transactions by the Unique Field).

vi. The procedures for detecting, tracking, reporting and resolving duplicate, erroneous or contested payments.vii. The procedures for preventing, detecting and reporting fraudulent payments, including conditions under which

Authorized Users may deviate from association rules governing non-discrimination of card acceptance.viii. If Interchange and Assessment, Authorization and Processing Fees or other fees are charged to the Authorized

User for declined transactions and for zero amount transactions.ix. The difference, if any, between the Interchange and Assessment Rates and Authorization and Processing Fees

for cash advances compared to purchases.

b. ACH Credit Transactions – The Bidder must describe the services available to support the requirements as specified in Section IV.2.A.3.a, ACH Credit Transactions, including, but not limited to, the following:i. The process, procedures and controls for receiving, processing and reporting ACH Credit Transactions

including the relevant timeframes, cutoffs, and controls that will prevent unauthorized ACH Credit recall processing.

ii. The process for handling ACH Credit exceptions.iii. The procedures for detecting, tracking and resolving duplicate, erroneous or contested payments.iv. The settlement process for ACH Credit transactions including the expected timeframe for crediting investable

funds into the account as designated by the Authorized User and reporting procedures. Note, the Bidder must also complete Table XI - Funds Availability and Table IV – Fees for Additional Services to identify additional fees.

v. If additional accounts need to be established to facilitate ACH Credit Transactions.vi. The procedures for preventing, detecting and reporting fraudulent payments.

c. ACH Debit Transactions – The Bidder must describe the services available to support the requirements as specified in Section IV.2.A.3.b, ACH Debit Transactions, including, but not limited to, the following:i. The process, procedures and controls for receiving transactions from Authorized Users, originating ACH Debit

transactions, processing and reporting ACH Debit and prenote transactions, and include the relevant timeframes, cutoffs, and controls that will prevent unauthorized ACH Debit transactions. Include in this description processing of Recurring and Preauthorized payment transactions.

ii. The process for handling rejections, notifications and resubmission procedures.iii. The procedures for detecting, tracking and resolving duplicate, erroneous or contested payments.iv. The settlement process for ACH Debit transactions including the expected timeframe for crediting investable

funds into the account as designated by the Authorized User and reporting procedures. Note, the Bidder must also complete Table XI - Funds Availability and Table IV – Fees for Additional Services to identify additional fees.

v. If additional accounts need to be established to facilitate ACH Debit Transactions.vi. The procedures for preventing, detecting and reporting fraudulent payments.

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d. Fedwire, CHIPS and SWIFT Transactions – The Bidder must describe the services available to support the requirements as specified in Section IV.2.A.3.c, Fedwire and Similar Electronic Payments, including, but not limited to, the following:i. The process, procedures, and controls for receiving and processing Fedwire, CHIPS and SWIFT Transactions

including the relevant timeframes, cutoffs, and controls.ii. The process for handling Fedwire, CHIPS and SWIFT exceptions.

iii. The procedures for detecting, tracking and resolving duplicate, erroneous or contested payments.iv. The settlement process for Fedwire, CHIPS and SWIFT transactions including the expected timeframe for

crediting investable funds into the account as designated by the Authorized User and reporting procedures. Note, the Bidder must also complete Table XI - Funds Availability and Table IV – Fees for Additional Services, to identify additional fees.

v. If additional accounts need to be established to facilitate Fedwire, CHIPS and SWIFT Transactions.vi. The procedures for preventing, detecting and reporting fraudulent payments.

e. Memberships, Applications and Setupi. Describe any membership, application or setup procedures that an Authorized User must complete with either

the EVT Contractor or third parties in order to initiate transactions under a Payment Program.

f. Funds Availability – All funds received from electronic payment transactions, including but not limited to credit/charge cards, on-line and off-line debit cards, ACH credit and debit, and Fedwire and similar transactions, deposited into the working interim account(s) of the FSP or its prospective subcontractor(s) must be made available to Authorized Users by the next business day. The funds must be transferred to the individual accounts designated by each Authorized User. Bidders must complete Table XI – Funds Availability to propose specific timeframes within the next business day requirement for funds available by transaction type.

9. Chargebacks, Refunds & Adjustments (Mandatory)

a. Chargeback, Refunds and Adjustment Procedures

The EVT Contractor may not use deduction net-billing for Authorized Users that are state agencies for chargebacks, refunds and adjustments with one exception, Failed ACH Transactions (see b. below). Payments to reimburse the EVT Contractor for chargebacks and adjustments will be made from Authorized User accounts based on invoices submitted to them by the EVT Contractor. Additionally, post-draft capture refunds to Device Users will be made through each state agency Authorized User’s normal refund process (e.g., state agencies will provide the Device User with a credit voucher indicating the Device User will be receiving a refund check issued by the Office of the State Comptroller of the State of New York.). The EVT Contractor may be able to net–bill Authorized Users that are not state agencies for chargebacks and adjustments and to utilize the standard refunding process.

The Bidder must describe the following information (including appropriate sections of Association Rules, diagrams and forms as appropriate):

i. The record keeping responsibility of Authorized Users for face-to-face and non-face-to-face transactions including the type of information to be retained, method of storing data, and the length of time it must be retained, by device type;

ii. The options available for having the EVT Contractor retain information and records on behalf of Authorized Users to address chargebacks, refunds and adjustments and having the EVT Contractor address chargebacks with the various Credit/Charge Card associations on behalf of Authorized Users using the retained information and records including paper, electronic receipt capture and captured onscreen signatures;

iii. The resolution process to be followed including, identifying the role of each entity involved in the process and the required timeframes for responding to requests;

iv. The ability of the EVT Contractor to utilize the Unique Number to address chargebacks;v. When a transaction is considered final and maximum timeframes for Authorized Users retaining records;vi. The various steps involved in handling a disputed transaction. The outline must reflect the actions and

responsibilities of the card holder, card issuer, accepting financial institution, the EVT Contractor and the Authorized User;

vii. The notice or advice provided for chargebacks, refunds and adjustments;

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viii. The extent to which the Authorized User could develop a rule to provide to the EVT Contractor so that the EVT Contractor could respond to a pre-defined set of retrieval requests without requiring additional information from the Authorized User;

ix. The extent to which the Authorized User could utilize jurat and no-refund policy statements for both face-to-face and non-face-to-face transactions to prevent chargebacks, refunds and adjustments, providing suggested text;

x. Whether the Authorized User could develop a list of items that could not be charged back (i.e., fishing licenses or taxes);

xi. The maximum time limit for a research request by the Authorized User;xii. The circumstances under which Authorized Users will be charged a research fee,xiii. The assistance that the Bidder would provide for the collection of unprocessed items (e.g., incorrect account

number);xiv. The length of time individual sales records are retained by respective credit card companies; xv. The process to be used to handle erroneous ACH and Fedwire transactions, refunding, recall requests, etc.;

andxvi. The circumstances, if any, under which Authorized Users would be charged additional chargeback fees for

experiencing a higher than normal chargeback rate.

b. Failed ACH Transactions

For those limited instances when an ACH transaction initiated by a State Agency Authorized User fails, as a result of there being insufficient funds in the Source Account of the transaction, and the Contractor has, in accordance with the provision of the Contract, previously deposited funds for such transaction to the State Agency Authorized User’s account based on the notice from the State Agency of the ACH transaction, the Contractor may recoup the funds deposited in the Authorized User's account for that transaction by means of net depositing of funds for future ACH transactions initiated by the Authorized User.

Net depositing may only be used by Contractor for State Agency Authorized Users accounts when the Contractor seeks to recoup funds deposited to an Authorized User's account based on an ACH transaction which subsequently fails due to insufficient funds in the Source Account of the transaction.

c. Chargeback, Refunds and Adjustments by Payment Type

The Bidder must describe the mechanism and rules for chargebacks, refunds, and adjustments, as applicable, for each of the following:

i. Credit/Charge Card Processing (MasterCard, VISA, Discover Card, American Express branded cards)ii. Debit Cards (On-line & Off-line)iii. Automated Clearing House (ACH) Credit and Debit transactionsiv. Fedwire and other similar electronic payments including CHIPS and SWIFT

10. Reporting (Mandatory)

Authorized Users will have varying requirements both in the amount of detail reported and in the mechanism for, and frequency of reports. The EVT Contractor will be responsible for providing reports to each Authorized User and for ensuring that each Authorized User is only provided the information to which they are entitled and in the format and timeframe required. Except as defined in Appendix A, Standard Clauses for New York State Contracts, Section 10, Records, local governments will only have access to information that is specific to their operations. Local governments will not be provided access to state-level information. The Bidder must describe how it will meet these varied needs (provide copies as appropriate of sample reports).

a. Transaction Reports and Inquiries

It is anticipated that in most cases daily and monthly reporting will be necessary to provide the information needed to post settled funds to the appropriate account(s) and to reconcile deposits. It is important that the Bidder demonstrate its flexibility and capability of providing varied report formats to meet the needs of Authorized Users (e.g., including additional data such as the Authorized User Unique Field).

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i. The Bidder must describe its transaction reporting process and the types of reports it can provide, including mandatory daily and monthly reports for the following types of transactions: MasterCard and Visa Credit/Charge Cards, On-line and Off-line Debit Cards, ACH Debit and Credit and Fedwire, SWIFT and CHIPS. The Bidder must indicate what services will be provided to support the reporting of transactions for American Express and Discover branded cards. When applicable it is preferred that reporting functions for these cards be provided in reports consolidated with other FSP transactions. In these descriptions, the Bidder should demonstrate its flexibility and capability to address the varying requirements and reporting needs, including, but not limited to, the following:

The method for making reports available to Authorized Users (e.g., printed, on-line). Accessibility to reports (i.e., on-line such as dial-up or through secure Internet applications) including

access requirements (e.g., hardware and software requirements, methods of identifying specific transactions), and access to historical data (i.e., data retention).

The timing for providing such reports (i.e., daily/monthly reports will be delivered or made available by what time).

The services available to Authorized Users to support inquiries regarding individual transactions."

b. Summary Reports for Control Agencies

The EVT Contractor will be required to provide summary reports to control agencies for purposes of supporting program monitoring, rate and fee adjustments, etc.

Fraud Reporting

i. The Bidder should identify the method and procedures for reporting fraud including detection, prevention etc., and as applicable, provide sample reports.

Monthly Summary Reports

The EVT Contractor will be required to provide a monthly summary report to the Control Agencies, including OGS and the EVTA. This report must summarize the activity (transactions, charges etc.) by each Authorized User agency including a summary for all State Agencies.

i. The Bidder may include sample reports, if available, and identify the method and timing for providing such reports.

The EVT Contractor or its subcontractor(s) will be required to provide status reports of the development of Qualified Applications.

Semi-Annual Reporting

The EVT Contractor will be required to provide a semi-annual report to OGS and the EVTA to support rate adjustments based on the six month review period. This review will be conducted to determine if adjustments are required for Blended Rates and Bundled Fees, to determine the Statewide Aggregate Discount and the average transaction value for each merchant ID, (refer to Rate Adjustment – Six Month Review on page 49) actual statewide usage rates during the previous six months under the EVT Contract for all required variables (e.g., number of qualified and non-qualified transactions, number of transactions by card type, etc.) included in the successful Bidder’s Blended Rate and Bundled Fees formula provided in Table V – Blended Rates and Bundled Fees. In addition, the report must include the aggregate total number of Blended Rates and Bundled Fees transactions performed during the previous six months to determine if Authorized Users will receive a volume discount. The report must also identify for each merchant ID the average value of Credit/Charge and Off-line Debit Card transactions performed in the previous six months. The EVT Contractor must also provide each Authorized User that has elected to use the Blended Rates and Bundled Fees with the adjusted Blended/Bundled fees for each six-month period, the Aggregate Discount that applies to the each Merchant ID account for the Authorized User, and the Authorized User’s Average Transaction Value.

Annual Reporting

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The EVT Contractor shall provide annualized summary reports to be submitted to the OGS, Procurement Services Group, Corning Tower, 38th Floor, Empire State Plaza, Albany, NY 12242, no later than the 15th of the month following the close of the year identified by OGS. Purchases by political subdivisions and others authorized by law shall be reported separately at that time.

c. Ad-hoc Reports

The Bidder must agree to provide ad-hoc reports (i.e., report types not specified in this section) as requested by an Authorized User. The fee for providing ad-hoc reports will be negotiated by the Authorized User and the EVT Contractor. Each ad-hoc report type, format, delivery method and schedule will be addended to the original purchase order and/or the purchase order in effect.

11. Future Technology (Desirable)

The Bidder should provide a summary of the Bidder's investment and commitment to developing future electronic processing technology and describe how the bidder intends to support technological advancements to Authorized Users. This summary should address, but not be limited to, any new technologies that the bidder is currently aware of and may be working on.

12. Additional Services (Desirable)

The response should include a summary of the Bidder’s ability to provide the following additional services, and a description of those services that the Bidder is able to provide:

a. Voice data capture (e.g., enabling small volume Authorized Users to process credit/charge cards and off-line debit cards transactions via the telephone without requiring manual follow-up with paper transaction documentation).

b. Address Verification (e.g., provide Authorized Users with the option to perform address verifications for authorizing credit/charge cards and off-line debit card transactions).

c. Processing of international Credit/Charge Card and Off-line Debit Card transactions.d. Services related to reprogramming of Authorized Users’ Transaction Interfaces (i.e., point-of-sale terminals, peripheral

devices and software packages).e. Other additional services.

B. Transaction Interfaces

In addition to Financial Services Processing, the EVT Contractor or its subcontractor(s) must provide Authorized Users with all necessary Transaction Interfaces in order to process electronic value transfer transactions. Transaction Interfaces include hardware (i.e., point-of-sale terminals and peripheral devices) and software (i.e., packages to be installed on individual PCs or other individual computer devices, networked PCs or other networked computer devices and web servers for electronic payment processing). The EVT Contractor must make available and support the most current version of interfaces at the time the order is placed. The interfaces provided by the EVT Contractor must support open standards or be otherwise inter-operable with similar interfaces and must be able to integrate with Authorized User’s technological infrastructure. It is the intention of the State to utilize the Auto Add Method to adapt the offerings hereunder to reflect changes in technology, interfaces or processing techniques, which may become available during the contract term. The Bidder’s initial offerings must be updated to reflect and keep pace with those changing needs. The Bidder must complete Table XIV – Hardware Catalog Discounts to propose catalog discount rates to be utilized in adding new hardware to the offering.

1. Hardware – Section 255 and 251 (a)(2) of the Communications Act of 1934 as enacted by the Telecommunications Act of 1996 states that access to telecommunications equipment and customer premises equipment is to be provided to persons with disabilities. Where applicable, Bidders should indicate that the proposed hardware is compliant with this act.

All POS terminals & peripheral hardware must be PCI PED approved.

a. Point-of-Sale Terminals (Mandatory)

Describe the types of point-of-sale (POS) terminals that the Bidder will provide. Include in the description the functional attributes of the terminals offered (e.g., capacity, transmission speed, functionality of embedded software, “split dial”

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capabilities, accessibility to persons with disabilities), their condition (e.g., new, refurbished) and any supplies required. Indicate which terminals will be provided for no fee. For terminals offered by the Bidder for a fee payable by the Authorized User, the Bidder must complete the appropriate sections of Table XIII – Transaction Interface Hardware Fees. Note, for each of the POS terminals below, the Bidder must provide all of the bulleted items except those indicated as “Desirable”.

i. Type I POS Terminals

Stand alone POS terminals which are configured to process Credit/Charge Cards and are capable or upgradable to support the following: Nothing Integrated – supports items below as peripherals Integrated printer Integrated PIN pad for On-line Debit Card processing Integrated Signature pads for Electronic Signature Capture Integrated Smart Card reader/writers Integrated Contactless Payment reader Integrated Check reader (Desirable)(e.g. Hypercom products – Optimum T4210 & Artema Desk, VeriFone products MX800 series)

ii. Type II POS Terminals

Hand Held Terminals which can be integrated with other POS terminals, electronic cash registers and local area networks, are configured to process Credit/Charge Cards and are capable or upgradable to support the following peripherals: Integrated PIN pads for On-line Debit Card processing Integrated Signature pads for electronic signature capture Integrated Smart Card reader/writers (Desirable) Integrated Contactless Payment reader (Desirable) Integrated Check reader (Desirable)

iii. Type III POS Terminals

Wireless POS terminals that are configured to process Credit/Charge Cards, and include or upgradable to support the following: Integrated PIN pad for On-line Debit Card processing Integrated printer. Integrated Smart Card reader/writer Integrated Signature pads for Electronic Signature Capture Integrated Contactless Payment reader

(e.g. VeriFone products - NURIT 8000 & Vx 610, Hypercom products – Optimum M4240 & Optimum M2100)

iv. Type IV POS Terminals

The Bidder should describe other types of Point-of-Sale terminals that it is proposing to make available to Authorized Users.

b. Peripheral Devices

Describe the types of peripheral devices that the Bidder will provide. Include in the description the functional attributes of the devices (e.g., specifications, functionality of embedded software, accessibility to persons with disabilities), their condition (e.g., new, refurbished) and any supplies required. Indicate which devices will be provided for no fee. For devices offered by the Bidder for a fee payable by the Authorized User, the Bidder must complete the appropriate sections of Table XIII – Transaction Interface Hardware Fees. Note, for each of the Mandatory peripheral device types below, the Bidder must provide all of the bulleted items.

i. Device Type I, Printers (Mandatory)

For each proposed type of POS terminal capable of accepting a printer as a peripheral device, if any, the Bidder must provide compatible devices including the following:

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Roll printer, Sprocket printer, and Thermal printer.

ii. Device Type II, Countertop PIN Pad (Mandatory if providing POS terminals without integrated PIN pads)

For each proposed type of POS terminal capable of accepting a countertop PIN pad as a peripheral device, if any, the Bidder must provide compatible devices including the following, or equivalent:

Countertop PIN pads (e.g., VeriFone MX800 Series).

iii. Device Type III, Handheld PIN Pad (Mandatory if providing POS terminals without integrated PIN pads)

For each proposed type of POS terminal capable of accepting a handheld PIN pad as a peripheral device, if any, the Bidder must provide compatible devices including the following, or equivalent:

Handheld PIN pad (e.g. NURIT 293 or Hypercom S9.

iv. Device Type IV, Check Reader (Mandatory)

The Bidder must provide the following, or equivalent: Check reader (e.g. MagTek Mini MICR) Check reader with built in card reader (e.g. MagTek Mini MICR w/ optional card reader or RDM 6014i

Check Imager)

v. Device Type V, Smart Card Reader/Writer (Mandatory)

The Bidder must provide the following, or equivalent:i. Smart Card reader/writer

vi. Device Type VI, Signature Capture Devices (Mandatory)

The Bidder must provide the following, or equivalent for electronic signature capture. i. Signature Tablet On-screen signature capture device

vii. Miscellaneous (Mandatory)

The Bidder must provide all of the following, or equivalent: Magnetic stripe reader, Card imprinter, and Card reader.

c. Additional Peripheral Devices (Desirable)

Describe any additional types of peripheral devices that the Bidder will provide. Include in the description the functional attributes of the devices (e.g., functionality of embedded software, accessibility to persons with disabilities, their condition (e.g., new, refurbished) and any supplies required. Indicate which devices will be provided for no fee. For devices offered by the Bidder for a fee payable by the Authorized User, the Bidder must complete the appropriate sections of Table XIII – Transaction Interface Hardware Fees.

i. Device Type VIII, Other

The Bidder should describe other types of peripheral devices which it is proposing to make available to Authorized Users.

d. Supplies (Mandatory)

Describe the hardware supplies (for both POS terminals and peripheral devices) which the Bidder will provide, including a description of order fulfillment timeframes and the ability of the Bidder to accept preorders. Indicate which supplies will be provided for no additional fee when the associated hardware is purchased (the cost for all supplies is assumed to be

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included with leased and rented equipment). For supplies offered by the Bidder for a fee payable by the Authorized User, the Bidder must complete the appropriate sections of Table XIII – Transaction Interface Hardware Fees.

e. Warranty (Mandatory)

Provide warranty information and the warranty period for each of the POS terminals and peripheral devices which the Bidder is proposing to provide; including the initial and extended terms. Indicate warranties that will be provided for no additional fee when the hardware is purchased, leased and rented. For extended or other warranties offered by the Bidder for a fee payable by the Authorized User, the Bidder must complete the appropriate sections of Table XII – Transaction Interface Hardware Fees.

f. Maintenance (Mandatory)

The Bidder must provide a toll-free number for maintenance assistance (the Bidder should describe their help-desk services in response to Section IV.2.D.2, Help-Desk Services). The Bidder must repair or replace Transaction Interface hardware within 24 hours and provide next business day on-site assistance as needed. Describe the maintenance services associated with the POS terminals and peripheral devices which the Bidder is proposing to provide. Information should include, but not be limited to:

preventative maintenance procedures, average response time to a remedial maintenance request, average on-site repair time for devices, procedures and time frames for utilizing replacement equipment, number of service staff available, and experience of service staff.

Indicate maintenance services that will be provided for no additional fee when the hardware is purchased, leased and rented. For maintenance services offered by the Bidder for a fee payable by the Authorized User, the Bidder must complete the appropriate sections of Table XII – Transaction Interface Hardware Fees.

g. Credits (Desirable)

Describe the Bidder’s credit policy for Transaction Interfaces purchased by Authorized Users and returned toward the purchase of upgraded Transaction Interfaces.

2. Software

Bidder must provide a description of each software product that will be made available, including:

a. Software Functionality and Features

The Bidder must describe the offered software product(s) and their functionality and features (e.g., processing capabilities, data-entry verification, ability to support additional fields, etc.) for each of the following payment devices:

i. Credit/Charge Cards and Offline Debit Cards (Mandatory) Authorization, Capture and Settlement Online and Batch Processing

ii. Credit/Charge Cards, Offline Debit Cards and Online Debit Cards (Desirable) Online Transaction Status Inquiry Online Reporting

iii. Electronic Checks, ACH Debit Transactions (Desirable) Transaction Initiation Online and Batch Processing Online Transaction Status Inquiry Online Reporting Receipt Notifications, etc.

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iv. ACH Credit, Fedwire and Similar Transactions (Desirable) Online Transaction Status Inquiry Online Reporting

v. Other Electronic Payment Applications (e.g., Smart Cards) (Desirable) Authorization, Capture and Settlement Online and Batch Processing Online Transaction Status Inquiry Online Reporting

b. Software Environments and System Requirements (Mandatory)

The Bidder must identify the supported environments and system requirements (i.e., minimum recommended hardware configurations for each software product offered for each of the following environments:

i. PC-Based Applications (e.g., Windows, Macintosh, other)ii. Networked Users (e.g., NT based, UNIX, Macintosh, other)iii. Internet Website Software Self–hosted website transaction support (i.e., enable an Authorized User to offer transactions over the

Internet) Hosting service website transaction support (i.e., enable an Authorized User that hosts multiple websites to offer

transactions for each of the hosted websites)

The Bidder is required to provide one full set of documentation (i.e., installation documentation, detailed operation and user documentation and user guide) and sales literature to augment the information provided in this section. The Bidder must indicate which software will be provided for no fee. For software offered by the Bidder for a fee payable by the Authorized User, the Bidder must complete the appropriate sections of Table XV – Transaction Interface Software Fees.

c. Software Licenses (Mandatory)

Describe the software licensing agreements available to Authorized Users for each software product to be provided by the Bidder. It is anticipated that site licenses will be preferred by the majority of Authorized Users. For the purposes of the EVT Contract, “site” is defined by a physical location (e.g., building, street address, etc.) which houses computer systems operated by or on behalf of the Authorized User. Although site licenses are the anticipated choice, the Bidder is required to provide technical information on other types of licenses they offer including: individual PC licenses, multiple PC license(s) and concurrent user based licenses. Each type of software license must provide, at no additional charge, the ability to: relocate software to a new site designated by the Authorized User at its discretion, utilize the software for all work processed at the Authorized User’s designated site, test software at a disaster recovery site with out EVT Contractor pre-authorization, and transfer software rights and contract terms and conditions to another Authorized User for purposes of

consolidating workloads.

3. Incidental Consulting Services (Mandatory)

The Bidder must provide analysis, recommendations, design, programming expertise and/or on-site assistance to Authorized Users relating to installation or integration of Transaction Interface hardware or software. Also, the Bidder must develop and maintain interfaces between the Authorized User (including any vendors of the Authorized User) and the Bidder to facilitate payment processing. Describe the Incidental Consulting Services and the various job classifications to be provided by the Bidder. For each job classification proposed, provide a job description and the average number of years of experience for employees serving in these classifications. Indicate if any of these services are available for no fee. If there is a fee for such services, the Bidder must complete Table XVI - Incidental Consulting Services Fees.

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C. Training, Help Desk Services, and Marketing

1. Training (Mandatory)

The EVT Contractor shall develop and implement a “New York State” specific training program covering initial and follow-up training. On-site training at locations designated by the Authorized User must also be offered and shall be provided to employees designated by the Authorized User. For purposes of this RFP, the Bidder shall provide details and confirm that the training program to be provided will accomplish the goals of providing Authorized Users with:

A thorough understanding of Credit/Charge Card and Debit Card acceptance and processing and ACH Credit and Debit and Fedwire transactions.

An understanding of Authorized User reports and reconciliation procedures. Guidance in developing internal reports. The ability to install and utilize Transaction Interface hardware to be provided by the Bidder. The necessary information to install and utilize Transaction Interface software provided by the Bidder. An understanding of security requirements, refund and chargeback procedures and fraud prevention/detection.

a. Implementation Training

The Bidder must describe the types of training to be made available to Authorized Users throughout the term of the EVT Contract related to implementation of Payment Programs developed using the EVT Contract. This description should include training for:

i. installation and use of Transaction Interface hardware provided by the Bidder.ii. installation and use of Transaction Interface software provided by the Bidder.

Descriptions should include, but not be limited to, the following components: scope and length of sessions, setting (e.g., on-site, off-site, teleconferencing, video-conferencing, Internet-based), and curriculum. The Bidder must describe any training materials that will be made available to Authorized Users. The fee for providing this training, including materials, is presumed to be included in the FSP fees. If there is an additional charge for providing this training, the Bidder must identify such charges in Table IV - Fees for Additional Services. Fees for on-site training should be exclusive of travel expenses for which the EVT Contractor will be reimbursed separately.

b. On-Going Training

The Bidder must describe the types of standard and additional on-going Financial Services Processing and Transaction Interface training to be made available to Authorized Users throughout the term of the EVT Contract. Standard on-going training is any post-implementation training made available to Authorized Users for no additional fee. Additional on-going training is any post-implementation made available to Authorized Users for an additional fee. These descriptions should include, but not be limited to, the following components: scope and length of sessions, setting (e.g., on-site, off-site, teleconferencing, video-conferencing, Internet, etc.) and curriculum. The Bidder must describe any training materials that will be made available to Authorized Users.

The fee for additional ongoing training, including materials, will be negotiated between the EVT Contractor and the Authorized User, except in no case may the fee exceed the EVT Contractor’s standard fees. The Authorized User will be responsible for all travel related costs up to state rates.

c. User Manuals and System Documentation

The Bidder must provide each Authorized User with the necessary user manuals and system documentation related to Financial Services Processing and Transaction Interfaces. The Bidder must describe the user manuals and system documentation that will be made available to Authorized Users.

2. Help Desk Services (Mandatory)

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The Bidder must furnish a description of all Help Desk Services to be made available during the entire term of the EVT Contract. The cost for these services shall be presumed to be included in the FSP and/or Transaction Interface fees. The Bidder must identify any services for which there is an extra charge and delineate such extra charges in Table IV - Fees for Additional Services.

a. Help Desk Services and Support

The Bidder must provide Help Desk Services for Authorized Users based on a twenty-four (24) hours per day, seven (7) days per week basis, including holidays, in order to address all Authorized User customer assistance needs and technical issues for submitting electronic payment transactions, including assistance with Transaction Interfaces. The Authorized User assistance line(s) should be a toll free number(s) which provide direct assistance, intake service with follow-up resolution and requests for on-site assistance. Additionally, the EVT Contractor must maintain and provide each Authorized User with a list of the names and business phone numbers of the customer assistance staff (e.g., Contract Manager, Technical Assistant, Customer Assistant) to be available during normal business hours.

i. The Bidder must describe the system to be used in providing Help Desk Services to Authorized Users. This description should include but not be limited to: access to the system, number of lines available and staffing levels and experience, blockage rates and not to exceed times on hold.

ii. The Bidder must describe the Help Desk Services to be made available to Authorized Users. This description must include the Credit/Charge Card transaction authorization, verification and inquiry services for Bidder provided Transaction Interfaces (Hardware and Software) and all other customer assistance services.

iii. The Bidder must identify the types of issues the Help Desk can respond to on a twenty-four (24) hours per day, seven (7) days per week basis and the anticipated average response time for each of these issues. Transaction authorization and verification must be available on a twenty-four hours per day, seven (7) day per week basis, including holidays.

iv. The Bidder must identify if intake is performed by Help Desk staff or a voice mail intake system.

v. The Bidder must provide the toll free number(s), and the list of names and phone numbers of the customer assistance staff available to OGS and EVTA.

3. Marketing and Miscellaneous Supplies (Mandatory)

The Bidder must furnish a description of all marketing and miscellaneous supplies that will be made available during the entire term of the EVT Contract. The cost for these services shall be presumed to be included in the FSP and/or Transaction Interface fees. The Bidder must identify any services for which there is an extra charge and delineate such extra charges in Table IV - Fees for Additional Services.

a. Marketing

The Bidder must describe the services that will be made available to Authorized Users for promoting and marketing electronic payment programs to Device Users including the provision and use of signage, logos, inserts for mailings, etc.

b. Miscellaneous Supplies

The Bidder must describe what Financial Services Processing supplies are necessary to support transactions. Note, the Bidder should not duplicate Transaction Interface supplies identified in Section IV.2.C.

D. General Service Requirements

1. Method of Payment of EVT Contractor Fees (Mandatory)

The EVT Contractor must offer Authorized Users the ability to pay FSP fees (i.e., any fees identified in Tables I –XII) through: (1) Invoicing the Authorized User, (2) Passing through fees to the Device User (i.e., convenience and surcharge fees), (3) Deduction Net-Billing, or (4) Direct ACH Debit.

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(1) Invoicing - payment of the FSP fees upon presentation of an invoice on a monthly basis by the EVT Contractor to the Authorized User using a separate payment or appropriation [Example: Device User pays $20, EVT Contractor remits $20 to Authorized User and bills the FSP fees separately to the Authorized User];

(2) Pass-Through Fees to the Device User a ‘surcharge’ and/or ‘convenience fee’ - adding said amount to the underlying obligation owed by the Device User. The EVT Contractor shall not be entitled to impose on Device Users any additional surcharge or convenience fee other than as provided in this paragraph. [Example: Device User owes $20 for the underlying obligation, the FSP surcharge and/or convenience fee are added, Device User is billed $20 plus FSP surcharge and/or convenience fee.] Refer to the Statutory Notice Requirements for State Agencies: section below. The EVT Contractor shall not impose “surcharges” and /or “convenience fees” on Device Users unless expressly directed by an Authorized User;

(3) Deduction Net-Billing by the EVT Contractor - deducting FSP fees from the amount of the underlying obligation. [Example: Device User pays $20, EVT Contractor retains FSP fees and remits balance to Authorized User]; or

(4) Direct ACH Debit – payment of FSP fees under which the EVT Contractor initiating an ACH transaction to debit an account specified by the Authorized User [Example: Device User pays $20, EVT Contractor remits $20 to Authorized User and initiates ACH Debit transaction in the amount of the associated FSP fees.]

Authorized Users may pay the FSP fees using any payment option that is now or hereafter permitted by law. State Agencies are currently authorized under New York State Finance Law, § 4-a subdivisions (3) and (4) to use payment options (1) and (2), except where a State Agency has specific authorizing legislation to accept a different payment option. Local Governments are currently authorized under New York State General Municipal Law, Article 2 § 5, to use any of the payment options. The Bidder’s response should affirm their ability to offer all of the above reimbursement methods.

2. Invoicing (Mandatory)

Unless otherwise agreed upon in the Implementation Plan, all fees for Financial Processing Services and Transaction Interfaces must be separately invoiced on a monthly basis to each participating Authorized User. Note: see Appendix B, clauses 62 - 64. Unless otherwise agreed upon, fees may not be deducted from settlement proceeds for Authorized Users using the EVT Contract.

The Bidder must describe the invoicing process and provide examples of invoices for Financial Processing Services and Transaction Interfaces. Invoices should include at least the following level of detail:

a. Financial Services Processing (provided at Merchant ID level for each Authorized User)i. Detailed Transaction Invoicing (i.e., non blended/bundled fee users): Credit/Charge Cards and Off-Line Debit

Cards, identify the number of qualified and non-qualified transactions by card type and the associated Interchange and Assessment (MasterCard and Visa only), Authorization, Processing, and Additional Services fees, and any additional fees for pre-funding.

ii. Blended/Bundled Invoicing: Credit/Charge Cards and Off-Line Debit Cards, identify the number of transactions by card type and the associated blended/bundled fees including any statewide aggregate discount applied and fee for pre-funding.

iii. On-Line Debit Cards, identify the number of transactions by network and the associated flat and/or percentage fee.

iv. ACH Transactions, identify the number of debit transactions, credit transactions, and reporting and other services and the associated fees.

v. Fedwire, CHIPS and SWIFT Transactions, identify the number of Fedwire, CHIPS and SWIFT Transactions and the associated processing, reporting and other services fees.

vi. Electronic Check Processing, identify the number of check conversions, verifications, recoveries and guarantees and other services and the associated fees.

vii.Other Financial Services Processing fees including help desk, training, marketing, supplies, etc..b. Transaction Interfaces, Hardware (provided at Merchant ID level for each Authorized User)

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i. Point-of-Sale Terminals, identify the number of units and associated purchase, lease or rental fee and any other services provided including warranties and the associated fees, including any applicable quantity discounts.

ii. Peripheral Devices, identify the number of units and associated purchase, lease or rental fee and any other services provided including warranties and the associated fees, including any applicable quantity discounts.

iii. Supplies, identifying the number of units and associated fees.c. Transaction Interfaces, Software (provided at Merchant ID level for each Authorized User)

i. Single User PC or Other Platform Based software, identify the number of units and associated licensing, upgrade and other services and the associated fees, including any applicable quantity discounts.

ii. Networked User PC or Other Platform Based software, identify the number of units and associated licensing, upgrade and other services and the associated fees, including any applicable quantity discounts.

iii. Website Software, identify the number of units and associated licensing, upgrade and other services and the associated fees, including any applicable quantity discounts.

d. Transaction Interfaces, Incidental Consulting Services (identified by each Payment Program for each Authorized User)i. Personal Services, identify by job classification and associated hourly rates.

3. Security & Confidentiality (Mandatory)

The EVT Contractor is responsible for the security of the data and processing procedures and therefore must be in full compliance with Payment Card Industry Data Security Standards (PCI DSS). Additional information about PCI DSS can be found at the following url: https://www.pcisecuritystandards.org/

The EVT contractor is also responsible for compliance with all applicable state and federal laws pertaining to the security of data, including the New York State Personal Privacy Law, (See Public Officers Law, Article 6-A). Additionally, the EVT Contractor must adhere to the security and confidentiality procedures of Authorized Users and implement procedures sufficient to enforce such privacy for all services provided under the contract. To that end, the EVT Contractor’s employees may be required to sign agreements to adhere to such laws, rules and/or procedures. The Bidder must store any electronic payment processing data in an encrypted data format sufficient to preserve such security.

The EVT Contractor will be required to comply with the confidentiality and security requirements of Appendix B, Clause 69. Individually identifiable material and information relating to EVT Device User, security codes or encryption methods, or other confidential information regarding the Authorized User’s business operations or data, shall be held confidential in accordance with these requirements and shall not be disclosed by the Bidder, its officers, agents or employees or subcontractors, without the prior written approval of the Authorized Users and, where applicable, the Device User.

Except as directed by a court of competent jurisdiction or as necessary to comply with applicable New York State or Federal law(s) or regulation(s), and with the written consent of the EVT Device User, where applicable, no data records or other information may be otherwise used, released or sold to any third party by the EVT Contractor. The EVT Contractor is further prohibited from releasing data records or other information to its joint venture, partners, employees, agents or subcontractors, either during the term of the Agreement or in perpetuity thereafter, unless such party is directly processing the data or providing a service that requires access to the data. Where such party is directly processing the data or providing a service that requires access to the data, the EVT Contractor shall be responsible for insuring such party’s compliance with the provisions of this paragraph. The EVT Contractor shall be responsible for assuring that any agreement between the EVT Contractor and any of its joint venture, partners, officers, agents, employees or subcontractors contains a provision that strictly conforms to these provisions.

When the Authorized User is the New York State Department of Taxation and Finance , the following additional contract conditions must be satisfied:

A. State Tax Information

(1) The treatment by Contractor of confidential State tax information shall be governed by the secrecy provisions of the Tax Law and with all Department rules, policies and procedures implementing such provisions (see, currently, Tax Law sections 202, 211.8, 295, 314, 437, 487, 514, 528, 697(e), 994, 1023(b), 1146, 1165, 1250, 1312(a), 1332(a), 1342, 1418, 1467, 1518, 1555, 1825 and 3038). Thus, except in accordance with proper judicial order or as otherwise provided by law, Contractor shall not divulge or make known in any manner the contents or any particulars set forth or

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disclosed in any return or report required under or pursuant to the authority of the Tax Law. Computer files and their contents are covered by the same secrecy provisions as are physical documents.

(2) (a) Information about Department operations, including, without limitation, automated tax system information, shall be treated as if covered by the secrecy provisions of the Tax Law. Accordingly, unauthorized disclosure of such information shall be prohibited.

(b) For purposes of the above provision, “automated tax system information” includes, but is not limited to, functional, technical and detailed systems design; systems architecture; automated analysis techniques; systems analysis and development methodology; audit selection methodologies; and information regarding proprietary products such as software packages; provided, that “automated tax system information” shall in no event include existing products. (3) Contractor acknowledges and agrees that only those persons with a need to know confidential Department information for purposes of performing their job responsibilities for the Services shall be afforded access thereto.

(4) The Department reserves the right to periodically audit/inspect Contractor’s operations and procedures with respect to Contractor's work under the contract to determine whether Contractor is in compliance with the confidentiality requirements applicable to confidential Department information, as prescribed by this section of the contract. Subject to reasonable Contractor security procedures, the Department may perform such inspections without affording Contractor prior notice thereof. The conduct and frequency of inspections/audits will be designed to minimize disruption to Contractor's work under the contract. In addition, when audit staff are on site for another purpose, if violations of security are observed, the Department reserves the right to require corrective action and impose sanctions under the contract. Remedial action, as specified by the Department, shall be required in cases where Contractor is found to be noncompliant with such requirements.

B. Federal Tax Information

(1) Contractor shall abide by the requirements set forth in Internal Revenue Code sections 6103, 7213, 7213A and 7431, and regulations promulgated thereunder, with respect to confidential Federal return and return information in its possession or the possession of the Department. For purposes of this section of the contract, the terms Federal "return" and "return information" shall have the meanings prescribed by the above referenced Internal Revenue Code sections and regulations.

(2) Pursuant to requirements set forth in IRS Publication 1075, “Tax Information Security Guidelines for Federal, State and Local Agencies”, Contractor shall comply with the following, with respect to Federal tax information:

(a) Performance: In performance of the contract, the Contractor agrees to comply with and assume responsibility for compliance by his or her employees with the following requirements:

(i) all work will be done under the supervision of the Contractor or Contractor’s employees; (ii) any return or return information made available in any format shall be used only for the purpose of carrying out the provisions of this Agreement. Information contained in such material will be treated as confidential and will not be divulged or made known in any manner to any person except as may be necessary in the performance of the contract;

(iii) all returns and return information will be accounted for upon receipt and properly stored before, during, and after processing. In addition, all related output will be given the same level of protection as required for the source material;

(iv) the Contractor certifies that the confidential Federal return and return information processed during the performance of the contract will be completely purged from all data storage components of his or her computer facility, and no output will be retained by the Contractor at the time the work is completed. If immediate purging of all data storage components is not possible, the Contractor certifies that any

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confidential Federal return and return information remaining in any storage component will be safeguarded to prevent unauthorized disclosures;

(v) any spoilage or any intermediate hard copy printout that may result during the processing of confidential Federal return and return information will be given to the Department or its designee. When this is not possible, the Contractor will be responsible for the destruction of the spoilage or any intermediate hard copy printouts, and will provide the Department or its designee with a statement containing the date of destruction, description of material destroyed, and the method used;

(vi) all computer systems processing, storing, or transmitting of Federal tax information must meet ISO STD 15408, called Common Criteria-functional (Protection Profile) and assurance (EAL). To meet functional and assurance requirements, the operating security features of the system must have the following minimum requirements: a security policy, accountability, assurance, and documentation. All security features must be available and activated to protect against unauthorized use of and access to Federal tax information;

(vii) no work involving confidential Federal return or return information furnished under the contract will be subcontracted without prior written approval of the IRS;

(viii) the Contractor will maintain a list of employees authorized access. Such list will be provided to the Department and, upon request, to the IRS reviewing office; (ix) The Department will have the right to terminate the contract if the Contractor fails to provide the safeguards described above.

(b) Criminal/Civil Sanctions:

(i) Each officer or employee of any person to whom returns or return information is or may be disclosed will be notified in writing by such person that returns or return information disclosed to such officer or employee can be used only for a purpose and to the extent authorized herein, and that further disclosure of any such returns or return information for a purpose or to an extent unauthorized herein constitutes a felony punishable upon conviction by a fine of as much as $5,000 or imprisonment for as long as 5 years, or both, together with the costs of prosecution. Such person shall also notify each such officer and employee that any such unauthorized further disclosure of returns or return information may also result in an award of civil damages against the officer or employee in an amount not less than $1,000 with respect to each instance of unauthorized disclosure. These penalties are prescribed by IRC Sections 7213 and 7431 and set forth at 26 CFR 301.6103(n)-1.

(ii) Each officer or employee of any person to whom returns or return information is or may be disclosed shall be notified in writing by such person that any return or return information made available in any format shall be used only for the purpose of carrying out the provisions of this Agreement. Information contained in such material shall be treated as confidential and shall not be divulged or made known in any manner to any person except as may be necessary in the performance of the contract. Inspection by or disclosure to anyone without an official need to know constitutes a criminal misdemeanor punishable upon conviction by a fine of as much as $1,000 or imprisonment for as long as one year, or both, together with the costs of prosecution. Such person shall also notify each such officer and employee that any such unauthorized inspection or disclosure of returns or return information may also result in an award of civil damages against the officer or employee (United States for federal employees) in an amount equal to the sum of the greater of $1,000 for each act of unauthorized inspection or disclosure with respect to which such defendant is found liable, or the sum of the actual damages sustained by the plaintiff as a result of such unauthorized inspection or disclosure plus in the case of a willful inspection or disclosure which is the result of gross negligence, punitive damages, plus the costs of the action. These penalties are prescribed by IRC Sections 7213A and 7431. (iii) Additionally, it is incumbent upon the Contractor to inform its officers and employees of the penalties for improper disclosure imposed by the Privacy Act of 1974, 5 U.S.C. 552a. Specifically, 5 U.S.C. 552a(i)(1), which is made applicable to contractors by 5 U.S.C. 552a(m)(1), provides that any officer or employee of a contractor, who by virtue of his/her employment or official position, has possession of or access to agency records which contain individually identifiable information, the disclosure of which is prohibited by the

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Privacy Act or regulations established thereunder, and who knowing that disclosure of the specific material is prohibited, willfully discloses the material in any manner to any person or agency not entitled to receive it, shall be guilty of a misdemeanor and fined not more than $5,000.

(c) Inspection:

The IRS shall have the right to inspect Contractor's operations and procedures with respect to any work under the contract to determine whether Contractor is in compliance with the safeguards set forth above. On the basis of such inspection, specific measures may be required in cases where the Contractor is found to be noncompliant with contract safeguards.

C. Secrecy Agreements

By entering into this Agreement, Contractor agrees to have its employees, agents and subcontractors performing services execute (without change or modification) any nondisclosure agreement required by DTF and/or IRS

Breach by the EVT Contractor of any of these provisions may, at the sole discretion of the Authorized User, be grounds for termination of its agreement with the EVT Contractor, or at the sole discretion of OGS, be grounds for termination of the EVT Contract.

a. Security Plan

The Bidder must provide a security plan with the bid which will be utilized to ensure the anonymity of Device User information and that access to such information is controlled and restricted to authorized personnel only, as well as procedures to secure point-of-sale terminals, transactions on the Internet, transaction receipts and sale reports.

i. Include a description of pre-employment verification procedures, employment agency screening and security awareness training for employees.

ii. Include a description of relevant logical/system security software and administrative rules including data encryption.

b. Fraud Prevention

The Bidder must identify in the bid the methods used to detect, report and prevent fraud, theft, and all other security breaches, including examples of detection reports of unauthorized attempts.

c. Internal Control Plan

The Bidder must provide in the bid, an Internal Control Plan, describing the checks and balances for all aspects of the services provided; including internal controls for all automated and manual processes, and controls to protect against unauthorized access to personal information. This plan must include any and all services provided by subcontractors.

4. Business Continuity/Disaster Recovery (Mandatory)

The Bidder must provide with the bid a comprehensive Business Continuity/Disaster Recovery Plan to provide alternative processing arrangements for all services in the event of a short-term business interruption and/or long-term loss of processing capacity at the bidder’s processing site.

This Plan must incorporate all alternate facilities, equipment, telecommunications lines, staff or other resources required to ensure continuity of services required pursuant to this RFP which are interrupted for any length of time by a disaster or other unforeseen event. The Plan must encompass all recovery activities, from the initial event interrupting operations, through transitions of operations to alternate site(s) and restoration of the original operating site and include a flow chart of the disaster recovery mechanism. The Plan must address the following:

i. The length of time a disaster would make their services unavailable.ii. What Bidder would do specifically to recover transactions affected by the disaster.iii. Whether they have a site to which they can transfer the processing, and whether the site is cold, warm, or hot.

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iv. What is the contingency for a telecommunications failure on the primary network.v. The locations of the alternate sites.vi. The recovery priority New York State will receive.

The Bidder must state the exact transaction point or location at which disaster recovery is the EVT Contractor’s responsibility, and at which point or location if any, the disaster recovery is the responsibility of the Authorized User. The EVT Contractor must ensure that all Security and Confidentiality requirements pursuant to Section IV.2.D.3 above are maintained during the relocation of operations to an alternate site(s), at the alternate sites(s) and during restoration of the original operating site(s).

To the extent the Successful Bidder updates the Business Continuity/Disaster Recovery Plan as required to reflect technological, system or other changes, the Successful Bidder must provide OGS or its designee with updated plans or portions thereof.

5. Authorized User Data Ownership (Mandatory)

All data collected, stored or otherwise utilized by the EVT Contractor, in conjunction with the execution of the duties and responsibilities specified in the individual Authorized User’s Implementation Plan, shall remain the sole property of the Authorized User. If at any time the EVT Contract between the State and the EVT Contractor or any order by an Authorized User is canceled, terminated or expires, the EVT Contractor is obligated to return all such data to the specific Authorized User at no additional cost and in a medium specified by the Authorized User. All records must be maintained for a period of time of no less than seven years from the date of such cancellation, termination or expiration. The Bidder must affirm its ability to meet the data storage requirements and describe its ability to maintain records for the required period of time.

6. Implementation Plans (Mandatory)

As Authorized Users implement electronic payment processing systems utilizing Financial Services Processing and Transaction Interfaces, the EVT Contractor must agree to work with each Authorized User to develop mutually agreed upon Implementation Plans which specify all Financial Services Processing rates, Transaction Interface deliverables and rates, the timetable for deliverables, acceptance testing criteria and procedures and training for new and enhanced applications. If an Authorized User requires processing procedures that are not supported by Credit/Charge Card, Off-line & On-line Debit Card, ACH and Fedwire, SWIFT and/or CHIPS association or governing body rules or guidelines, the EVT Contactor must work with the Authorized User to seek approval from such association or governing body for such procedures, and upon approval, agree to process electronic payments under such alternative procedures. The EVT Contractor must also provide Implementation Plans, with estimated timeframes, for start up and conversion of new and/or existing applications.

a. Information must be included in the Bid response affirming the Bidder’s intent to work with each Authorized User and/or their existing contractors to set up a plan for initial and continuing training consultation, and installation of Transaction Interfaces as required by the individual Authorized User’s needs and timeframes.

b. The Bidder must include in their bid response a description of their standard methodology for implementation and expansion of small, medium and large electronic value transfer Payment Programs.

c. The Bidder must describe in their bid response, its capacity to implement Payment Programs, indicating the expected timeframe for implementing various sized programs and its capacity to implement multiple programs.

d. The Bidder must affirm in their bid response to work with the Authorized User in seeking approval from associations and governing bodies for alternative procedures, and if approved, to process electronic payments under such alternative procedures.

SECTION V. BIDDER FINANCIAL REQUIREMENTS

Introduction

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This Section of the RFP contains the requirements and Bidder instructions for providing fee and pricing proposals for Financial Services Processing and Transaction Interfaces. The Bidder must provide proposals for all mandatory sections since it is intended that a single bidder will be selected to provide all FSP and Transaction Interfaces. Bidder Response Forms – Financial Services Processing (Tables I – XII) and Transaction Interfaces (Tables XIII – XVI) contain the tables for proposing fees for the FSP and Transaction Interfaces.

General Guidelines

The Bidder is responsible for completing all tables in the Bidder Response Forms section and must identify all applicable rates and fees that may be charged to the state under the terms of the EVT Contract, whether such services are provided by Bidder or its prospective subcontractors. Any fees not set forth in the Bidder Response Forms section will not be included in the EVT Contract and cannot be charged to Authorized Users. The Bidder must enter “NA” in all entries that are Not Available or Not Applicable. An entry of zero (0) will be assumed to mean that service is being offered and that there is no fee for the service. The Bidder can also provide additional information using the same format as provided in the Tables. The Bidder is required to provide its responses to this section in an electronic format. Copies of the tables in a Microsoft Excel format are available on the OGS web site at http://www.ogs.state.ny.us/purchase/Bidcalendarlv.asp. Bidder’s responses must be provided in a printed version as well as in electronic format.

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Pricing Schedules & Permissible Fee and Rate Increases (Adjustments)

Adjustments to pricing throughout the contract term are permitted only in accordance with this section.

The following describes the tables to be completed by the Bidders and the associated price adjustments.

Figure I: Section V.1, Financial Services ProcessingTable Description Price Adjustments

I Interchange and Assessment Fees Rates to be updated based on Association updatesNote: If a bidder marks-up either the Interchange or Assessment fee, the Association fees will be adjusted per the Association adjustments and the bidder’s flat fees may be adjusted per the CPI adjustment. If the bidder uses a percentage mark-up, this will not be adjusted during the term of the contract.

II Definitions and Applicable Payment Methods Categories and applicable methods of payment to be updated based upon Association updates

III Authorization and Processing Fees by Average Transaction

CPI Adjustments

IV Fees for Additional Services CPI Adjustments

V Blended Rates and Bundled Fees Interchange and Assessment fees to be updated based upon Association updates. Other fee components to be updated based upon CPI Adjustments.

VI Statewide Aggregated Volume Discount Pricing Remains constant or discount may increase

VII On-Line Debit Card Fees Updated based on Network Fee updates

VIII Automated Clearinghouse Transactions CPI Adjustments

IX Fedwire, CHIPS & SWIFT Transactions CPI Adjustments

X Electronic Check Verification, Recovery & Guarantee

CPI Adjustments

XI Funds Availability Formula remains constant. Interest rate adjustments are determined based upon the indices as proposed by the bidder.

XII Pre-Funding Receipt of Funds Formula remains constant. Interest rate adjustments are determined based upon the indices as proposed by the bidder.

Figure II: Section V.2, Transaction Interfaces (Hardware and Software)Table Description Update Capabilities

XIII Transaction Interface Hardware Fees Remains constant or discount may increase

XIV Hardware Catalog Discount Remains constant or discount may increase

XV Transaction Interface Software Fees Software fee may increase to prevailing market price, support/maintenance fees may only increase relative to the formula proposed by Bidder, but not to exceed 10% over the previous year’s fee.

XVI Incidental Consulting Services Fees CPI Adjustments

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Rate Adjustments – Six Month Review

A review of Device User usage of Credit/Charge and Debit Cards under the EVT Contract will be conducted every six months to determine the necessity of adjusting the rates charged to Authorized Users by the EVT Contractor for:

the blended rates and bundled fees as determined by the EVT Contractor formula for deriving these rates and fees, the blended rates and bundled fees as determined by any statewide aggregate discount, and determining the average transaction for each merchant ID and associated aggregate volume discount.

Blended Rates and Bundled Fees Formula. The blended rates and bundled fees formula (e.g., percent of transactions by Credit/Charge and Debit Card type, percent of Qualified and Non-Qualified transactions, etc.) provided by the EVT Contractor in their proposal will result in the blended rates and bundled fees charged to Authorized Users during the first six months of the EVT Contract. At the end of every six months, the actual usage rates for all variables included in the formula will be determined and applied to the formula to re-establish the blended/bundled fees for the subsequent six month period. Refer to Exhibit 6 – Calculating Adjustments to Blended/Bundled Fees for the formula to be used to recalculate these rates.

Blended Rates and Bundled Fees Aggregate Discount. During the first six months of the EVT Contract any statewide aggregate volume discount will not be applied to the blended rates and bundled fees. At the end of every six months, the average monthly statewide volume of blended/bundled transactions processed by the EVT Contractor for all Authorized Users electing to use the Blended Rates and Bundled Fees method, including both State Agency and non-State Agency Authorized Users, will be calculated to determine if a volume discount will be applied during the subsequent six month period. The average monthly volume of blended/bundled transactions will be calculated as the total number of blended/bundled transactions processed by the EVT Contractor for all Authorized Users during the review period divided by six (6). The monthly average for the six month period will be compared to the statewide aggregate volume discount pricing schedule as proposed by the EVT Contractor.

Average Transactions. Each Authorized User’s Payment Program (by Merchant ID) will, for the purpose of determining either the blended rates and bundled fees or the authorization and processing fees, initially utilize an average transaction amount calculated by the Authorized User. This amount will be calculated as the annualized total amount of funds collected from constituents that would be eligible to participate in the Payment Program divided by the number of transactions conducted by those eligible participants. Provided that the Payment Program has been operational for at least two (2) months, the average transaction will be calculated for each Payment Program during the review period. During each review period, the actual average transaction amount will be calculated for the previous six month, or part thereof for the initial review period. The calculated average transaction amount will be used to determine the blended rates and bundled fees, the authorization and processing fees, and the allowable aggregate volume discount for the subsequent six-month period.

The following table provides timeframes for the six-month effective periods and the one-month review periods. For the purposes of the effective periods and statewide reviews, month one (1) will be the first month the EVT Contract can be utilized by Authorized Users.

Effective Periods and Statewide Review MonthsFirst Year Month Activity1st Effective Period 1-6 Utilize rates proposed in bid response

1st Review Month 6 Establish rates for next effective period based on usage during months 1-5

2nd Effective Period 7-12 Utilize rates established during previous review month

2nd Review Month 12 Establish rates for next effective period based on usage during months 6-11

Subsequent Years Month Activity

1st Effective Period 1-6 Utilize rates established during previous review month

1st Review Month 6 Establish rates for next effective period based on usage during previous month 12 - month 5

2nd Effective Period 7-12 Utilize rates established during previous review month

2nd Review Month 12 Establish rates for next effective period based on usage during months 6-11

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Example of Effective Periods, Review Periods and Review Months for First and Second Year (assuming January as 1st Contract Month)

PeriodYear 1 Year 2

J F M A M J J A S O N D J F M A M J J A S O N D1st Effective Period1st Review Period1st Review Month2nd Effective Period2nd Review Period2nd Review Month3rd Effective Period3rd Review Period3rd Review Month4th Effective Period4th Review Period4th Review Month

Financial Services Processing

The Bidder must complete Tables I - XII to propose all fees. All fees must be broken out into individual components as outlined in these tables. Fee proposals must be made for each of the options listed in the tables and, within each option, for each of the dollar/transaction levels specified. Since the successful bidder’s price proposals will become the basis for establishing the EVT Contract fees for Financial Services Processing, fees not included on these tables may not be charged to the state. Any box left blank shall be deemed to be a fee of $0.00 or 0% as applicable.

Sample Computation of Transaction Costs

The following figures provide examples of how the Financial Services Pricing Schedules from Tables I through VII will be used to calculate the associated fees with processing electronic value transfer applications. If additional fees apply, the bidder must indicate the appropriate calculation using references to each cost component.

Figure IV – Sample Computation of Transaction Fees – Credit or Off-Line Debit Card Transaction

Transaction Type: Card Present: Point-of-Sale DeviceAuthorization Method: Dial-Up Connection

Card Type: MasterCard Credit Card or MasterCard Debit CardTransaction Value: $100.00

Fee Source Example Rate Fee Component @$100.00 TransactionInterchange Flat Fee Table I (Merit III) $0.100 $0.100Interchange Percent Table I (Merit III) 1.360% $1.360Assessment Percent Table I (Merit III) 0.095% $0.095Authorization – Base Percent Table III, Row 1 NA $0.000Authorization – Base Flat Fee Table III, Row 2 NA $0.000Authorization – Dial-Up Percent Table III, Row 4 NA $0.000Authorization – Dial-Up Flat Fee Table III, Row 11 $0.050 $0.050Other Fees – Percent Table III, Row 19 NA $0.000Other Fees – Flat Fee Table III, Row 22 NA $0.000

Calculated Total Transaction Fee $1.605Note, for purposes of this example, the bidder indicated that the authorization fees are based only on a Dial-Up Flat Fee, therefore only the amount indicated on row 11 of Table III applies in addition to the associated Interchange and Assessment fees.

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Figure V – Sample Computation of Transaction Fee – Credit Card Voice Authorization Transaction

Transaction Type: Card Present: Voice AuthorizationAuthorization Method: Voice Authorization

Card Type: VISA Credit CardTransaction Value: $200.00

Fee Source Example Rate Fee Component @$200.00 TransactionInterchange Flat Fee Table I (CPS Retail 2) $0.050 $0.050Interchange Percent Table I (CPS Retail 2) 1.430% $2.860Assessment Percent Table I (CPS Retail 2) 0.084% $0.168Authorization – Base Percent Table III, Row 1 NA $0.000Authorization – Base Flat Fee Table III, Row 2 NA $0.000Authorization – Dial-Up Percent Table III, Row 4 NA $0.000Authorization – Dial-Up Flat Fee Table III, Row 11 NA $0.000Other Fees – Percent Table III, Row 19 NA $0.000Other Fees – Flat Fee Table III, Row 22 NA $0.000Voice Authorizations Table IV, Row 1 $0.650 $0.650

Calculated Total Transaction Fee $3.728Note, for purposes of this example, the bidder indicated that the authorization fees are calculated as the Interchange and Assessment Fees plus the Voice Authorization Fee presented in Table IV.

Figure VI - Sample Computation of Transaction Fee – Credit Card Transaction: Bundled Fees

Transaction Type: Interactive Voice Response System – Bill PaymentAuthorization Method: Dial-Up Connection

Card Type: VISA Credit CardAggregate Volume Discount: 267,000 Transactions per Month

Transaction Value: $1,500.00Fee Source Example Rate Fee Component @$1,500.00 Transaction

Blended/Bundled Rate – Percentage Table V – Row 4 1.625% $24.375Blended/Bundled Rate – Flat Fee Table V – Row 7 $0.0125 $0.0125Aggregate Volume Discount Table VI 0.025% ($0.375)

Calculated Total Transaction Fee $24.0125Note, for purposes of this example, the bidder indicated a combined Bundled fee for VISA transactions calculated as a percentage based fee + a flat fee. An Aggregated State Volume Discount applies since the total number of transactions exceeds the 250,000 threshold.

Figure VII - Sample Computation of Transaction Fee – On-Line Debit Card Transaction

Transaction Type: Card Present: Point-of-Sale DeviceAuthorization Method: Dial-Up Connection

Network: NYCECard Type: ATM Card

Transaction Value: $250.00Fee Source Example Rate Fee Component @$250.00 Transaction

Network Fee Table VII (NYCE) $0.115 $0.115Calculated Total Transaction Fee $0.115

Note, the Debit Card Network Fees as provided in Table VII are inclusive of all costs for contracting with the Network, switching network, and includes all statement fees (i.e., fully loaded fee) and no other fees from the processor, debit card network, communication network apply.

Completing Tables I – XII, Rates and Fees for Financial Services Processing

Table I - Interchange and Assessment Fees (Mandatory)

The Bidder is required to complete Table I for MasterCard and VISA Credit/Charge Cards and Off-line Debit Cards. The Bidder must list all applicable Interchange and Assessment Fees that may apply under the terms and scope of this RFP. The Bidder must list the Interchange and Assessment fees that will be charged to the State. During the term of the contract the EVT Contractor will be permitted to pass-through Association changes to the Interchange and Assessment fees. If the Bidder marks-up the Interchange

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and Assessment fees, the EVT Contractor will only be allowed to adjust the flat fee mark-up value per the CPI adjustment during the life of the contract. Any percentage mark-up will remain constant throughout the life of the contract. See Table I in the Bidder Response Forms section.

The Interchange and Assessment fees will be negotiated directly by New York State with American Express and Discover Card. The Bidder is not required to provide this information in Table I, however, the Bidder is required to identify all other fees associated with processing American Express and Discover Credit/Charge Cards in subsequent tables.

Table II - Definitions and Applicable Payment Methods (Mandatory)

The Bidder must complete Table II providing a definition of each Interchange and Assessment Qualifying Category listed in Table II. See Table II in the Bidder Response Forms section.

Table III - Authorization and Processing Fees by Average Transaction (Mandatory)

The Bidder is required to complete Table III for MasterCard, VISA, Discover Card and American Express, indicating all Authorization and Processing fees. See Table III in the Bidder Response Forms section.

Table IV – Fees for Additional Services (Mandatory)

The Bidder must complete Table IV – Fees for Additional Services identifying the associated fees for all services not included in Tables I – III. The services proposed by the Bidder should be included in Section IV as referenced in Table IV. Any fee, whether listed in this RFP or not, for which a rate is not proposed will not be chargeable under the EVT Contract. See Table IV in the Bidder Response Forms section.

Table V - Blended Rates and Bundled Fees (Mandatory)

The Bidder is required to complete Table V. Authorized Users will have the option of selecting to use blended rates/bundled fees proposed in Table V or to use the discrete rates and fees as defined in Tables I, II, III and IV. The EVT Contractor will be permitted to adjust the association Interchange and Assessment Fees semiannually to reflect actual usage patterns for MasterCard and VISA credit/charge and Off-Line Debit cards and qualified and non-qualified transactions. The EVT Contractor will also be permitted to adjust the Processor Fees following the rules for CPI adjustments. See Table V in the Bidder Response Forms section.

Table VI - Statewide Aggregate Volume Discount Pricing (Desirable)

The Bidder is strongly encouraged to complete Table VI to propose percentage discounts that will be applied to all Authorized Users using the Blended Rates and Bundled Fees as specified in Table V. See Table VI in the Bidder Response Forms section.

Table VII – On-Line Debit Card Fees (Mandatory)

The Bidder is required to complete Table VII to propose On-Line Debit Card fees for each network with which the Bidder has a relationship. The proposed fees must be expressed as Fully Loaded Fees (i.e., inclusive of all costs for providing all RFP requirements within this RFP). No other fees from the processor, debit card network, communication network will be chargeable to the state under the EVT Contract. See Table VII in the Bidder Response Forms section.

Table VIII - Automated Clearinghouse Transactions (Mandatory)

The Bidder is required to complete Table VIII to propose fees associated with processing Automated Clearinghouse Debit and Credit transactions. See Table VIII in the Bidder Response Forms section.

Table IX - Fedwire, CHIPS and SWIFT Transactions (Mandatory)

The Bidder is required to complete Table IX to propose fees associated with processing Fedwire transactions, CHIPS and SWIFT transactions. See Table IX in the Bidder Response Forms section.

Table X - Electronic Check Verification, Recovery & Guarantee (Desirable)

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If the Bidder is providing verification, recovery and/or guarantee for electronic checks, the Bidder must complete Table X to propose fees for these services. See Table X in the Bidder Response Forms section.

Table XI - Funds Availability (Mandatory)

The Bidder must complete Table XI to propose timeframes for funds availability for Credit/Charge Card (MasterCard and Visa only) and On-line and Off-line Debit Card and ACH Credit and Debit transactions and Fedwire and similar type transactions. See Table XI in the Bidder Response Forms section.

Table XII - Pre-Funding Receipt of Funds (Desirable)

If the Bidder is providing pre-funding of settlement amounts, the Bidder must complete Table XII to propose fees for this service. See Table XII in the Bidder Response Forms section.

Completing Tables XIII - XVI, Rates and Fees for Transaction Interfaces

Table XIII – Transaction Interface Hardware Fees (Mandatory)

The Bidder must complete Table XIII to propose fees for providing Transaction Interface Hardware (i.e., Point-of-Sale Terminals, Peripheral Devices and associated Supplies). The Bidder must also provide Hardware maintenance and warranty fees. See Table XIII in the Bidder Response Forms section.

Table XIV - Hardware Catalog Discounts (Desirable)

The Bidder is strongly encouraged to identify the manufacturer(s) and the associated catalog discount that Authorized Users can use for each manufacturer throughout the term of the EVT Contract to acquire Transaction Interface Hardware (i.e., Point-of-Sale Terminals and Peripheral Devices) necessary to facilitate electronic value transfer transactions. Since it is anticipated that hardware will change throughout the term of the contract, fees proposed in Table XIV will serve as a guide to establish hardware prices. The Bidder may also identify additional discounts for quantity purchases. The EVT Contract will incorporate the enumerated interface list, and such other new technologies or interfaces as may be made available during the contract term will be added to the EVT Contract upon the mutual agreement of the parties at a predetermined discount-from-retail rate. See Table XIV on the Bidder Response Forms section.

Table XV – Transaction Interface Software Fees (Mandatory)

The Bidder must complete Table XV to propose fees for Transaction Interface Software (i.e., packages to be installed on individual PCs or other individual computer devices, networked PCs or other networked computer devices and web servers for electronic payment processing) to be provided. The Bidder must also provide their software maintenance formula for each license type proposed. See Table XV in the Bidder Response Forms section.

Table XVI – Incidental Consulting Services (Mandatory)

The Bidder must complete Table XVI to propose rates for providing Consulting and Systems Integration Services. These must be expressed as hourly rates, inclusive of all costs/profit, but exclusive of any expense for travel, meals and lodging. Authorized Users may, at their discretion, utilize other procurement methods, including the Office of General Services centralized Consulting & Systems Integration Services Back Drop Contracts rather than utilizing the EVT Contractors rates. The OGS Back Drop Contracts are a pool of qualified vendors eligible to participate in a secondary mini-bid process. All Bidders are encouraged to establish Back Drop Contracts for Consulting & Systems Integration Services in addition to any contract resulting from this RFP by contacting OGS Procurement Services.

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SECTION VI. BID SUBMISSION

VI.1 Bid Submission

Detailed information on content of proposals is found in Section IV, Bidder Technical Qualifications & Service Requirements and Section V, Bidder Financial Requirements and Section VII, Proposal Format And Content.

Note: For security reasons, facsimile and electronic proposals, other than the CD rom described in Section VII.2.9 will not be accepted for this bid opening.

All proposals and accompanying documentation will become the property of the State of New York and will not be returned. The successful Bidder’s proposal and a copy of the specifications will be made part of the contract. Therefore, an official authorized to commit the Bidder to a contract must sign the proposal.

Important Note: Security procedures for the Corning Tower require all visitors to sign in at a registration desk located on the Concourse level. Consequently, if you intend to hand deliver a bid to the Procurement Services Group, you must allow extra time to comply with the security procedures. Bids not received within the Procurement Services Group, or the OGS Mailroom, by the time and date shown on the front page of the bid document will be considered late.

VI.2 New York State Procurement Rights

New York State reserves the right to:

A. Adjust any Bidder's expected fees based on a determination of the evaluation committee that the selection of the said bidder will incur additional costs by the State.

B. Utilize any and all ideas submitted in the bids received.

C. Adopt all or any part of a Bidder's proposal in selecting the optimum configuration.

D. Negotiate with the Bidder responding to this RFP within the RFP requirements to serve the best interests of the State. This includes requesting clarifications of any or all Bidder’s proposals.

E. Should the State of New York be unsuccessful in negotiating a contract with the selected contractor within 90 days of con -tract award, the State may begin contract negotiations with the next best value Bidder in order to serve the best interests of the State of New York.

F. Select and award the contract to other than the selected Bidder in the event of unsuccessful negotiations or, optionally, in other specified circumstances as detailed in the RFP requirements.

VI.3 Bidder Debriefing

Bidders will be accorded fair and equal treatment with respect to their opportunity for debriefing. Disclosure of the content of competing bids other than statistical tabulations of bids received in response to an IFB, is prohibited prior to contract award. Prior to contract award, OGS shall, upon request, provide a debriefing which would be limited to review of that bidder's proposal or bid. After contract award, OGS shall, upon request, provide a debriefing to any bidder that responded to the IFB or RFP, regarding the reason that the proposal or bid submitted by the unsuccessful bidder was not selected for a contract award. The post award debriefing should be requested by the bidder within thirty days of posting of the contract award on the OGS website.

VI.4 Proposal Security

To the extent permitted by law, Bidder’s Proposals will not be disclosed, except for purposes of evaluation, prior to approval by the Comptroller of the State of New York of the contract resulting from this RFP. Submitted Proposals may be reviewed and evaluated by any person designated by the state, other than one associated with a competing Bidder. The state has the right to use any or all ideas presented in any response to this RFP. Selection or rejection of any Proposal does not affect this right.

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SECTION VII. PROPOSAL FORMAT AND CONTENT

VII.1 General Format Outline For Parts I And II

This section identifies the information that the Bidder must include in their proposals to OGS.

A. Overview

Bidder must follow the instructions set forth below. The rules established for proposal content and format will be rigidly enforced and variations from the rules prescribed herein may subject the bidder to outright disqualification.

B. Submission of Sealed Proposals

Bidder’s proposals must be submitted in sealed packages and received by the time and date specified in Section II.2. Each proposal must be submitted in two (2) separate parts:

Part I – Technical Qualifications & Service RequirementsPart II – Financial Requirements

Part I must be complete separately and sealed separately from Part II in order that the technical and financial evaluations may be accomplished independently, concurrently and the evaluation of the Technical Qualifications & Service Requirements submittal can be made strictly on the basis of its merits.

Part II Financial Requirements, including hard copy or CD-rom, shall not be included in the Part I sealed envelope and shall be submitted in another sealed envelope. If Part II information is included within the same sealed envelope as the Part I information, Bidder’s proposal will be disqualified. Both Part I and Part II should however, be included in the same box/package delivered to OGS.

Note: If the Bidder is including material designated as confidential/proprietary it should be identified in Part I, Tab # 8.

All proposals must be completed in ink or machine produced. Proposals submitted hand written in pencil will be disqualified. The Issuing Office prefers that the proposals not be hand written, but this is not mandatory as long as the respondent uses ink or an indelible pen.

C. General Proposal Appearance

1. Binding of the Proposals: A loose-leaf three ring binder is required. The official name of the firm submitting the proposal must appear on the outside front cover of each binder, together with the name OGS Procurement Services Group as given in Section II.1 of the RFP. Respondent will submit proposals so that update pages can be easily incorporated in the originals.

2. Table of Contents: Each proposal must incorporate a uniform Table of Contents following the numbering and subject matter outline described below. The Table of Contents will be used to evaluate conformance to uniform proposal content and format.

3. Index Tabs: Each proposal must have index tabs to identify the major sections of the proposal as they are identified in the Bid Submittal Checklist.

4. Page Numbering: Each part of the proposal (i.e., Part I – Technical and Part II – Financial) should be numbered consecutively from the beginning of the proposal, Executive Summary, through all appended material where possible.

D. Copies of Proposal

The Issuing Office requires ten (10) signed original hard copies of each part (Part I and Part II) of the proposal to be submitted. Additionally, the Bidder must submit a copy of Part II of the proposal on CD rom separately sealed in the envelope with the hard copies of Part II. The Bidder may also submit a copy of Part I of the proposal on CD rom, provided that the CD rom is

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separately sealed in the envelope with Part I. Failure to enclose the appropriate CD rom with the appropriate hard copy of the proposal may result in rejection of the Bidder’s proposal.

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VII.2 Part I, Response to Section IV, Technical Qualifications & Service Requirements

A. Title Page: A completed copy of the Bid Proposal Cover Sheet – Part I, page 2 of this Request for Proposal.

B. Table of Contents: Include a Table of Contents outlining each section of the proposal. The Table of Contents should follow the general outline presented in items C through J below.

C. Bidder Qualifying Technical Requirements (Tab #1): Complete and include the Bidder’s Response to Qualifying TechnicalRequirements table starting on page 126 of this RFP. Include all documentation required in the RFP for these qualifying requirements.

D. Bidder Quantifying Technical Requirements (Tab #2): Use the Bidder’s Response to Quantifying Technical Requirements table starting on page 129 of this RFP. Include all additional documentation required in the RFP of these qualifying requirements.

E. Acceptance with Conditions (Tab #3): This section of the Proposal sets forth all exceptions to terms and conditions contained in the RFP (terms and conditions shall be understood to be accepted without condition unless specific exceptions are taken). Include copies of association and/or governing body definitions which substantially differ or conflict with or are additional to the definitions set forth in Section I.4 of this RFP and, as required in Section II.14 of this RFP, copies of association and/or governing body rules and guidelines which conflict with any terms in this RFP.

F. Licensing and Support Documents (Tab #4): Provide a) all licensing agreements including third party; b) all warranties, c) maintenance and support offerings for Transaction Interfaces (hardware or software) proposed by Bidder. This section should include copies of manufacturer’s documentation and provide a description of any additional rights, (i.e., extended warranties, which the third party manufacturer would pass through to the Authorized User).

G. References (Tab #5): Include a list of references in accordance with this RFP. Identify firm name, address, telephone number, fax number and the name of the contact person and the time period of work performed. Indicate key personnel who are working or have worked on such contracts.

H. Required Documents (Tab #6): Include completed copies of the following materials with original signatures as appropriate: Request for Proposal Form Bid Proposal Signature Page Notary Acknowledgment MacBride Certification Non-Collusive Bidding Certification List of subcontractors to be used under this contract (§ IV.1.D.2)

I. Confidential/Proprietary Information (Tab #7): Any information or documentation in the Bidder’s proposal (Technical and Financial) is assumed by the State to be available under the Freedom of Information Act, unless otherwise indicated by the Bidder. If there is any material that the Bidder would like to designate as confidential or proprietary, the Bidder must provide the Section reference or the specific text in Part I, Tab #8 of the bid response document.

VII.3 Part II, Response to Section V, Bidder Financial Requirements

Part II of the proposal consists of the pricing proposal that sets forth the unit costs for the types of transaction(s) offered. The price submission should be complete, accurate and well documented. Price information is not to be included in the Part I, Response to Section IV, Bidder Technical Qualifications & Service Requirements. The pricing proposal will be evaluated for reasonableness of cost for each transaction offered. Any pricing conditions or contingencies must be clearly stated. All unit costs must be inclusive of all direct and non-direct costs as well as all overhead, fees, copyrights or licensing and profit. Each of the ten (10) copies to be submitted must have an original signature and include the Bid Proposal Cover Sheet – Part II and the Bidder Financial Requirements Checklist.

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VII.4 Electronic Bid Submission

Ten written and signed originals of your proposal including pricing pages are mandatory.

In addition to written signed originals, it is required that each Bidder submit with the proposal their Part II, - Financial Proposal Response to Section V, Bidder Financial Requirements offering by completing Tables I through XVI, starting on page Error:Reference source not found of this RFP or on the Microsoft Excel spreadsheet available for download from the OGS web site at the following url: http://www.ogs.state.ny.us/purchase/Bidcalendarlv.asp This shall be on CD rom in Windows format. Each CD rom must be labeled on the outside with 1) name and address of bidder, 2) the Request for Proposal Number 3) file format and version of Excel used to complete the downloaded spreadsheet.

SECTION VIII. PROPOSAL EVALUATION METHODOLOGY

VIII.1 Method of Award

It is the State’s intent to award the contract to a single bidder which provides the “best value” to the State for both technical and financial proposals. However, the State reserves the right, in its sole discretion in the best interests of the State, to make multiple awards to provide the full scope of services or to make no award.

A. State Evaluation Philosophy

New York State evaluates vendor bids for goods and services in an objective, comprehensive manner designed to benefit both the State and participating vendors. Through this process the State identifies vendors who will best meet its needs and will be cost effective.

The State further intends that all proposals will be evaluated uniformly and consistently, ensuring that bidders each have an equal opportunity to be considered. The evaluation process will be conducted as described in this Section.

B. Evaluation Process

1. Proposal Screening

After the bid opening, each proposal will be screened for completeness and conformance with State requirements for bid submission. Any proposal may be denied further consideration at this point if it does not meet these requirements.

2. Qualifying Technical and Financial Evaluation Sections

Bid proposals that meet the completeness screening and are in conformance with State requirements, will then be reviewed to ensure that the bidder has responded in the affirmative to all mandatory, qualifying criteria in both the Technical and Financial sections. Failure to respond in the affirmative to any of these qualifying criteria, will result in the Bidder’s proposal being disqualified.

3. Quantifying Technical and Financial Evaluation Sections

The Quantifying Technical and Financial Evaluations will be conducted separately and distinct from each other, by separate evaluation committees. The Technical Evaluation will be divided into the following areas: Program Users, Tax Department, OGS Procurement, OGS Management, and OGS Finance. The Financial Evaluation will be conducted by State Tax Department, OGS Procurement, OGS Management and OGS Finance. Bidders may be required to provide a presentation of their Quantifying Technical and Financial responses to the State.

4. Evaluation Criteria

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http://www.ogs.state.ny.us/purchase/Bidcalendarlv.asp


Each proposal shall be evaluated according to the following Technical and Financial factors.

A. Technical Evaluation (valued at 60%)

The Technical Evaluation will measure each proposal which passes the initial screening and the Qualifying Evaluation section against the following criteria: (these criteria are listed by area and in the order of significance). The State reserves the right to weight each of the factors as it deems appropriate

1. Section IV.2.A.8.a(i, iv-vii), b(i-iii, vi), c(i–iii, vi) & d(i-iii, vi), Processing and Settlement1. Section IV.1.C.1, Executive Summary1. Section IV.1.C.3, Network Physical Plant1. Section IV.1.C.4, Work Experience and References1. Section IV.2.D.3.a-c, Security and Confidentiality1. Section IV.2.D.4, Business Continuity & Disaster Recovery1. Section IV.2.D.6.b & c, Implementation Plans1. Section IV.2.A.11, Future Technology

2. Section IV.2.A.3.a-c, ACH and Fedwire Transactions2. Section IV.2.A.7.b, d & e, Payment Device Connective, Unique User Field and Testing2. Section IV.2.A.9.a, b, Chargeback Refunds and Adjustments2. Section IV.2.C.2.a, Help Desk Services 2. Section IV.2.C.3a & b, Marketing and Miscellaneous Supplies

3. Section IV.2.A.10.a-c, Reporting3. Section IV.2.B.1.a-g, Transaction Interface Hardware3. Section IV.2.B.2. a-e, Transaction Interface Software3. Section IV.2.C.1.a-c, Training and Documentation3. Section IV.1.C.5, Key Personnel

4. Section IV.1.B.3, Working with Contractors 4. Section IV.2.D.2.a-d, Invoicing4. Section IV.2.D.5, Authorized User Data Ownership

5. Section IV.2.A.5, Check Verification, Recovery and Guarantee5. Section IV.2.B.3, Incidental Consulting Services5. Section IV.1.D.2, Identifying Subcontractors5. Section IV.1.E, Qualifications and Additional Information5. Section IV.2.A.4, Pre-funding

6. Section IV.2.A.1.b, Additional FSP Services6. Section IV.2.A.12, Additional Services (other than FSP)

B. Financial Evaluation (Valued at 40%)

The Financial Evaluation will proceed separate, but concurrent, with the Technical Evaluation.

The Financial Evaluation will measure each proposal which passes the initial screening and meets all mandatory Financial criteria, against the following criteria: (these criteria are listed in order of significance and the State reserves the right to weight each of the factors as it deems appropriate):

1. Table V & VI - Blended Rates and Bundled Fees & Statewide Aggregate Volume Discount Pricing2. Table I, II & III - Interchange and Assessment, Definitions & Authorization and Processing Fees3 Table IV - Fees for Additional Services3. Table VII - On-line Debit Card Fees3. Table VIII - Automated Clearinghouse Transactions3. Table XI - Funds Availability4. Table XIII -Transaction Interface Hardware Fees4. Table XIV - Hardware Catalog Discounts

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4. Table XV - Transaction Interface Software Fees5. Table XVI – Incidental Consulting Services5. Table IX - Fedwire, CHIPS and SWIFT Transactions5. Table X - Electronic Check Verification, Recovery & Guarantee5. Table XII - Pre-Funding Receipt of Funds

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C. Preliminary Proposal Ranking

The proposals will be ranked based on the combined scores received in the Technical (Program User and Management evaluations) and Financial evaluation phases. The top five (5) proposals will then be evaluated in the Final Proposal Ranking phase and re-ranked based on the total score received after this final evaluation stage.

D. Final Proposal Ranking

The top five proposals will be reexamined in this phase. Bidders may be requested to provide a presentation to the Final Evaluation Committee to address the bidders’ ability to develop and offer the requirements as specified in this RFP and in their proposals. Final ranking of the proposals will occur in this phase. The winning bidder will be selected based on the highest ranked proposal(s) that offer the best value to the State of New York.

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Exhibit No. 1 - State Agency & Non-State Entities Having Utilized the EVT Program (Potential Authorized Users)

EXHIBIT NO. 1

State Agency & Non-State EntitiesHaving Utilized the EVT Program

(Potential Authorized Users)

79008 Electronic Value Transfer Exhibit No. 1

The State provides no guarantee of volume or individual Authorized User participation. The needs of those Authorized Users who choose to use the contract represent diverse sizes, revenue collection streams and technical capabilities. The figures provided below reflect the usage under the current contract for calendar year 2007. Additionally, the Bidder should consider the following when submitting a bid: (a) At the time of this RFP issue, several Authorized Users have established contracts in place for financial processing services. It is anticipated that those Authorized Users may migrate to this contract upon expiration of their existing contracts. (b) The annual number of transactions and annual dollar volume processed through the existing contract has increased every year and is anticipated to continue to do so.

Dollar Volume and Number of Transactions Per Calendar Year Under the Previous Statewide Contract

State Agencies Non-State Entities TotalTime Period Dollar Amount Transactions Dollar Amount Transactions Dollar Amount Transactions

CY 2002 $ 81,452,795 270,186 $ 5,400,673 34,010 $ 86,853,468 304,196CY 2003 $ 177,640,974 461,395 $ 14,953,819 120,796 $ 192,594,793 582,191CY 2004 $ 371,422,309 2,322,155 $ 26,642,892 229,073 $ 398,065,201 2,551,228CY 2005 $ 504,781,496 3,404,705 $ 46,919,999 385,774 $ 551,701,495 3,790,479CY 2006 $ 628,556,498 4,026,702 $ 56,261,068 426,060 $ 684,817,566 4,452,762CY 2007 $ 688,629,416 4,494,373 $ 68,665,620 558,882 $ 757,295,036 5,053,255

CY 2008 * $ 347,268,418 2,424,623 $ 138,727,601 1,542,305 $ 485,996,019 3,966,928EVT LTD $ 2, 799, 751,906 17, 404,139 $357, 571,672 3,296,900 $ 3, 157,323,578 20,701,039

* Figures for CY 2008 are for the first six months only (January 1 through June 30, 2008).

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Exhibit No. 2 OGS Procedures for Updating Contract Pricing and/or Product Listings

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EXHIBIT NO. 2

OGS Proceduresfor Updating Contract Pricing and/or Product

Listings


OGS procedures for updating contract pricing and/or product listings

During the contract period or any extension period, requests for contract product line updates should include the following, in triplicate, as applicable:

a. A cover letter briefly describing the update (i.e.: type of addition, deletions, price revisions). To avoid processing addition of “Auto-Adds” along with “Regular” or “Special” additions, they must be submitted separately (descriptions of types of contract changes are listed at the end of this section). If applicable, this letter should highlight if Vendor has in any way restructured the pricing to its Licensees generally or has introduced new products or services which fall into a new group or category that did not exist at the time of approval of the Agreement by the New York State Comptroller.

b. A separate section in the required presentation format for all additions. Request must be accompanied by current pricing information (GSA Schedule, U.S. Commercial Price List, etc. as applicable) and should include documentation necessary to determine that additions are in accordance with the contract pricing formula.

c. A separate section of all deleted models.

d. Separate sections for price increases and price decreases in the required presentation format. Request must be accompanied by current pricing information (GSA Schedule, U.S. Commercial Price List, etc. as applicable).

e. A revised State Price List incorporating all changes may be submitted with each submission and is required at least on a semi-annual basis. The State reserves the right to require a revised State price list at any time during the contract period and it will be requested if many updates have occurred since the last complete update. This updated list must be either numbered as a version (Version 1, 2 etc.) and/or be dated.

f. A completed copy (in triplicate) of the Contract Update Form (attached following next page). All three (3) copies of the form must be signed by an authorized vendor representative where indicated and notarized in the Corporate Acknowledgment box.

Types of Contract Changes

AUTO-ADD - Auto-adds are contract changes made in accordance with the previously approved contract pricing formula. Examples of “Auto Add” formulas include contract changes with a previously approved “discount from list” and/or GSA pricing. Procurement Services Group (PSG) staff will verify that the correct contract discount(s) is/are applied against the correct list prices and discounts will be checked to verify that the net prices are correct in accordance with the contract formula. If found by PSG staff to be in accordance with the terms of the contract, Vendor will be notified to update their contract list and proceed with selling products. Vendor should note, however, that all “Auto Adds” approved by PSG are subject to a post audit by the Office of the State Comptroller. Auto-adds will only be processed once a month.

REGULAR ADD - Regular adds are products eligible for addition to the contract which do not fall under the discounts or product types previously approved under the contract. This type of addition must be accompanied with justification of reasonableness of price, and is subject to pre-audit by the Office of the State Comptroller. Vendor will be notified to update their contract list and proceed with selling products if the update is approved by OGS PSG and the Office of the State Comptroller.

OGS reserves the right to:-request additional information-reject contract updates-remove products from contracts-request additional discounts for new or existing products

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Exhibit No. 3 State Agency Procedures for Implementing EVT Applications

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EXHIBIT NO. 3

State Agency Procedures forImplementing EVT Applications


The following summarizes the process which State agencies are required to follow in order to implement Electronic Value Transfer applications.

1) Agencies are required to submit an EVT Agency Plan to the Electronic Value Transfer Administrator (EVTA-1 form)a) EVT Agency Plans must include:

i) Description of Proposed Programs(1) Proposed transfer devices (e.g., Point-of-Sale, Internet, etc.)(2) Proposed payment devices (e.g., credit and debit cards, ACH payments, etc.)(3) Description of the benefits offered to the agency and to its customers(4) Description of required system changes(5) Description of issues to be addressed and resolved(6) Description of impacts on existing contractual relationships(7) Description of required reports and reporting procedures(8) Description of proposed method for handling merchant fees, billing, etc.

ii) Cost/Benefit Analysis(1) Projected value of transactions(2) Projected volume of transactions(3) Projected usage rates and performance benchmarks(4) Projected development and operational costs(5) Projected financial benefit derived from implementing an EVT application

iii) Description of Agency Implementation Plans(1) Timeframe for implementation(2) Impacts on operational programs

2) The Electronic Value Transfer Administrator and the Division of the Budget will review the submitted EVT Agency Plans to ensure that proposed programs:a) are in the best interest of the state,b) provide a financial benefit to the agency and its customers, c) improve operational efficiencies, andd) maximize the benefit of current technologies.

3) Upon approval the Electronic Value Transfer Administrator will issue an approval letter to the requesting agency.

4) Agency will contact successful bidder with approved EVTA-1 form to discuss needs based on the plan in the approved EVTA-1 form, complete an EVTA-2 form which must then be forwarded to OSC with a completed encumbrance form for OSC approval.

5) Upon OSC approval, the Agency and successful bidder will implement the EVT program enumerated on the EVTA-2 form.

Notes“State Agencies” means any department, board, bureau, division, commission, committee, council, office of the state, or other governmental entity with statewide jurisdiction.

Although local governments are not required to submit an EVT Agency Plan to the EVTA, they are requested to submit Form EVT-1 to the EVTA for administrative purposes.

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Electronic Value TransferCentralized Contract Services Use Form – EVTA-1

Government agencies are required to submit this form to the Electronic Value Transfer Administrator if they intend to utilize the statewide Electronic Value Transfer contract to support electronic value transfer applications. Prior to submitting this form, state agencies are required to submit an EVT Agency Plan and receive approval from the Electronic Value Transfer Administrator and the Division of the Budget. Non-State agencies that are not required to submit an EVT Agency Plan (e.g., local governments) are requested to submit this form to the EVTA for administrative purposes.

EVTA - 1, Program Plan ApplicationAgency:

Program: Part 1, E. Transaction and Collection Information Actual Collections Projected Collections

FY 2005 - 06 FY 2006 - 07 FY 2007 - 08 FY 2008 - 09 FY 2009 - 101 Transactions: 2 Value: 3 Average Ticket (See Note in the inst.):

Part 1, F. Planned EVT Transaction Environmentsa. Face-to-Face Transactions

1 Transaction Device:

2 Payment Device:

FY 2007 - 08 FY 2008 - 09 FY 2009 - 103 Projected Usage Percent - Face-to-Face Transactions 4 Projected Number of EVT Transactions - - - 5 Projected Value of EVT Transactions - - -

b. Batch Processing, Mail/Telephone Order Transactions6 Transaction

Device:

7 Payment Device:

FY 2007 - 08 FY 2008 - 09 FY 2009 - 108 Projected Usage Percent - Batch Processing, Mail/Telephone Order Transactions 9 Projected Number of EVT Transactions - - -

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10 Projected Value of EVT Transactions - - - c. Internet Transactions11 Transaction

Device: 12 Payment Device:

13 Convenience Fee: FY 2007 - 08 FY 2008 - 09 FY 2009 - 1014 Projected Usage Percent - Internet Transactions 15 Projected Number of EVT Transactions - - - 16 Projected Value of EVT Transactions - - - d. Interactive Voice Response Transactions17 Transaction

Device: 18 Payment Device:

19 Convenience Fee: FY 2007 - 08 FY 2008 - 09 FY 2009 - 1020 Projected Usage Percent - Interactive Voice Response Transactions 21 Projected Number of EVT Transactions - - - 22 Projected Value of EVT Transactions - - - e. Other Types of Transactions23 Transaction

Device:

24 Payment Device:

25 Convenience Fee: FY 2007 - 08 FY 2008 - 09 FY 2009 - 1026 Projected Usage Percent - Other Types of Transactions 27 Projected Number of EVT Transactions - - - 28 Projected Value of EVT Transactions - - -

Part 1, G. Total Projected Number of Transactions

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FY 2007 - 08 FY 2008 - 09 FY 2009 - 101 Projected Usage Percent - All Types of Transactions 0.00% 0.00% 0.00%2 Projected Number of EVT Transactions - - - 3 Projected Value of EVT Transactions - - -

Form EVT-1

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Exhibit No. 4 Formula for Blended Rates and Bundled Rates

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EXHIBIT NO. 4Formula for

Blended Rates and Bundled Fees


Bidders are required to provide the formula for computing Blended Rates and Bundled Fees. Bidders may use the worksheet provided on the OGS website ( http://www.ogs.state.ny.us/purchase/Bidcalendarlv.asp ) or they may provide their own formula. The formula must be provided in writing along with the proposal. The following is a copy of the worksheet that is available on the EVTA website.

Table 1: The number of transactions for each card type and the number of Qualified/Non-Qualified transactions are entered based on actual experience during review period.Table 2: The association fees are entered. These amounts can only be altered based on Association rate changes.Table 3: These rates are established by the EVT contractor in their proposal and resulting contract. A combined rate is provided for MasterCard and VISA and a second combined rate is provided for American Express and Discover Cards. The contractor may establish separate rates for Qualified and Non-Qualified transactions for MasterCard and VISA only.

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Number Percentage123456

789

Total

Qualified TransactionsNon-Qualified Transactions

Table 1: Actual Experience

CategoryTransactions

American Express (AMEX)

MasterCardVISATotal

Discover CardTotal

Table 2: Association FeesMasterCard VISA MasterCard VISA AMEX Discover

1 Interchange Percentage2 Assessment Percentage3 Interchange Flat Fees

Table 3: Total Processor Fees (refer to Table 5: Processor Fee Worksheet)

Qualified Transaction Fees $0.01-$24.99 $25.00-$49.99 $50.00-$99.99 $100.00-$499.99 $500.00-$999.99 $1,000.00+1 Percentage Based Fees2 Flat Fees

Non-Qualified Transaction Fees $0.01-$24.99 $25.00-$49.99 $50.00-$99.99 $100.00-$499.99 $500.00-$999.99 $1,000.00+3 Percentage Based Fees4 Flat Fees

Transaction Fees $0.01-$24.99 $25.00-$49.99 $50.00-$99.99 $100.00-$499.99 $500.00-$999.99 $1,000.00+1 Percentage Based Fees2 Flat Fees

American Express and Discover Card

MasterCard and VISA Total Processor Fees

Non-Qualified RatesQualified Rates Other Card Types

Table 4: Calculation of Adjusted Blended Rates and Bundled Fees

Percentage Based Fees $0.01-$24.99 $25.00-$49.99 $50.00-$99.99 $100.00-$499.99 $500.00-$999.99 $1,000.00+1 Association Interchange Percentage2 Association Assessment Percentage3 Processor Fees - Percentage4 Total Percentage Based Fees

Flat Fees $0.01-$24.99 $25.00-$49.99 $50.00-$99.99 $100.00-$499.99 $500.00-$999.99 $1,000.00+5 Association Interchange Flat Fees6 Processor Flat Fees7 Total Flat Fees

Percentage Based Fees $0.01-$24.99 $25.00-$49.99 $50.00-$99.99 $100.00-$499.99 $500.00-$999.99 $1,000.00+1 Association Interchange Percentage2 Association Assessment Percentage3 Processor Fees - Percentage4 Total Percentage Based Fees

Flat Fees $0.01-$24.99 $25.00-$49.99 $50.00-$99.99 $100.00-$499.99 $500.00-$999.99 $1,000.00+5 Association Interchange Flat Fees6 Processor Flat Fees7 Total Flat Fees

American Express and Discover Card

MasterCard and VISA Total Processor Fees



Table 4: Blended Rates & Bundled Fees are calculated as follows:MasterCard/VISA fees = [% MC Trans x MC Qualified Rate + % VISA Transactions x VISA Qualfied Rate] x % Qualified Trans + [% MC Trans x MC Non-Qualified Rate + % VISA Transactions x VISA Non-Qualfied Rate] x % Non-Qualified TransactionsAMEX/Discover fees = [% AMEX Trans x AMEX Rate] + [% Discover Trans x Discover Rate]

Page 74 2008

Table V: Processor Fee Worksheet (EVT Contractor may use this worksheet to compute the total processor fees, the values must be manually entered into Table 3)Note: Percentage Based fees are fixed for the entire term of the EVT contract. Flat Fees may only be adjusted based on CPI adjustments.Qualified Transaction Percentage Fees $0.01-$24.99 $25.00-$49.99 $50.00-$99.99 $100.00-$499.99 $500.00-$999.99 $1,000.00+

0.000% 0.000% 0.000% 0.000% 0.000% 0.000%Qualified Transaction Flat Fees $0.01-$24.99 $25.00-$49.99 $50.00-$99.99 $100.00-$499.99 $500.00-$999.99 $1,000.00+

-$ -$ -$ -$ -$ -$ Table V: Processor Fee Worksheet (EVT Contractor may use this worksheet to compute the total processor fees, the values must be manually entered into Table 3)Note: Percentage Based fees are fixed for the entire term of the EVT contract. Flat Fees may only be adjusted based on CPI adjustments.Non-Qualified Transaction Percentage Fees $0.01-$24.99 $25.00-$49.99 $50.00-$99.99 $100.00-$499.99 $500.00-$999.99 $1,000.00+

Base Processing/Access Fees

Chargeback FeesRetrieval Fees

Authorization FeesOther FeesVoice AuthorizationsVoice Data CaptureAddress VerificationInternational Transactions

Research and Investigation FeesSettlement FeesDeposit Correction FeesReporting FeesMembership FeesApplication FeesSetup FeesSignage FeesSuppliesHelp Desk FeesReproggraming ServicesTraining FeesOther Services FeesTotal (enter values in Table 3, line 1)

Base Processing/Access FeesAuthorization FeesOther FeesVoice AuthorizationsVoice Data CaptureAddress VerificationInternational TransactionsChargeback FeesRetrieval FeesResearch and Investigation FeesSettlement FeesDeposit Correction FeesReporting FeesMembership FeesApplication FeesSetup FeesSignage FeesSuppliesHelp Desk FeesReproggraming ServicesTraining FeesOther Services FeesTotal (enter values in Table 3, line 2)

Base Processing/Access FeesAuthorization FeesOther FeesVoice AuthorizationsVoice Data CaptureAddress VerificationInternational TransactionsChargeback FeesRetrieval FeesResearch and Investigation FeesSettlement FeesDeposit Correction FeesReporting FeesMembership FeesApplication FeesSetup FeesSignage FeesSuppliesHelp Desk FeesReproggraming ServicesTraining FeesOther Services Fees

Appendix 1{Revised: December 2006}

New York StateStandard Vendor Responsibility Questionnaire

(Use the Uniform Contracting Questionnaire CCA-1, for all construction contracts)

Each Contracting Agency conducts a review of prospective contractors (“vendors”) to provide reasonable assurances that the vendor is responsible. This questionnaire is used for all non-construction contracts with a contract value of $100,000.00 or more and is designed to provide information to assess a vendor’s authorization to do business in New York State, as well as your business integrity, financial and organizational capacity, and performance history. (Review of construction contractors will be based upon the Uniform Contracting Questionnaire developed by the Council of Contracting Agencies.)

Each vendor must answer every question contained in this questionnaire. Where a response requires additional information, the vendor must attach a written response that adequately details the requested information. Please number each response to match the question number. The completed questionnaire and attached responses will become part of the procurement record.

In order to expedite the required review, when providing additional information for a “YES” answer to Questions 14 a-s, or any other response which requires additional explanation, your information and responses should address the relationship of the issue to the proposed contract. Be brief, concise and to the point. Discuss as appropriate the following:

Provide a description of the issue and identify the actions taken or currently being implemented to ensure that the issue will not occur again.

State whether the staff and/or organizational component involved in the identified issue(s) will work on the proposed contract. If so, provide information to assure the agency that the issue will not be repeated.

Identify the relationship (or lack thereof) between the product/services involved in the issue and the type of product/services proposed for this contract.

State whether the issue will affect your financial or organizational ability to perform under the proposed contract.

Provide copies of relevant documents or any other information that would assist the agency in its vendor responsibility evaluation.

It is imperative that the person completing the vendor responsibility questionnaire be knowledgeable about the proposing vendor’s business and operations, as an owner or officer of the vendor must attest to the questionnaire information. Please be advised that at the end of this questionnaire, you must certify, under oath, all responses given.


1. LEGAL BUSINESS NAME:

2. FEDERAL EMPLOYER ID NO. (FEIN):

3. D/B/A — Doing Business As (if applicable): COUNTY FILED:

4. WEBSITE ADDRESS (if applicable):

5. PRINCIPAL PLACE OF BUSINESS ADDRESS:

6. TELEPHONE NUMBER: _________________________ 7. FAX NUMBER:

8. AUTHORIZED CONTACT FOR THIS QUESTIONNAIRE:Name: Title: Telephone Number: Fax Number: E-mail:

9. TYPE OF BUSINESS: (please check appropriate box and provide additional information)a) Corporation State of Incorporation: b) Sole Proprietor State/County filed in: c) General Partnership State/County filed in: d) Not-for-Profit Corporation Charities Registration Number: e) Limited Liability Company (LLC) Jurisdiction filed: f) Limited Partnership State/County filed in g) Other — Specify: Jurisdiction Filed (if applicable)

10. IF NOT INCORPORATED OR FORMED IN NEW YORK STATE, PLEASE PROVIDE A CURRENT CERTIFICATE OF GOOD STANDING FROM YOUR STATE OR APPLICABLE LOCAL JURISDICTION.

11. LIST NAME AND TITLE OF EACH PRINCIPAL, OWNER, OFFICER, MAJOR STOCKHOLDER (10% OR MORE OF THE VOTING SHARES FOR PUBLICLY TRADED COMPANIES, 25% OR MORE OF THE SHARES FOR ALL OTHER COMPANIES), DIRECTOR AND MEMBER, as applicable:a) b) c) d) e) f) g) h)

12. AUTHORIZED CONTACT FOR THE PROPOSED CONTRACT:Name: Title: Telephone Number: Fax Number: E-mail:


VENDOR FEIN:

13. DOES THE VENDOR USE, OR HAS IT USED IN THE PAST FIVE (5) YEARS, ANY OTHER BUSINESS NAME, FEIN, OR D/B/A OTHER THAN WHAT IS LISTED IN QUESTIONS 1-3 ABOVE? Yes NoIf yes, provide the name(s), FEIN(s) and d/b/a(s) and the address for each such company and d/b/a on a separate piece of paper and attach to this response.

14. WITHIN THE PAST FIVE (5) YEARS, HAS THE VENDOR, ANY PRINCIPAL, OWNER, OFFICER, MAJOR STOCKHOLDER (10% OR MORE OF THE VOTING SHARES FOR PUBLICLY TRADED COMPANIES, 25% OR MORE OF THE SHARES FOR ALL OTHER COMPANIES), AFFILIATE1 OR ANY PERSON INVOLVED IN THE BIDDING, CONTRACTING OR LEASING PROCESS BEEN THE SUBJECT OF ANY OF THE FOLLOWING:(a) a judgment or conviction for any business related conduct constituting a crime under

federal, state or local government law including, but not limited to, fraud, extortion, bribery, racketeering, price-fixing or bid collusion or any crime related to truthfulness and/or business conduct? Yes No

(b) a criminal investigation or indictment for any business related conduct constituting a crime under federal, state or local government law including, but not limited to, fraud, extortion, bribery, racketeering, price-fixing or bid collusion or any crime related to truthfulness and/or business conduct? Yes No

(c) an unsatisfied judgment, injunction or lien for any business related conduct obtained by any federal, state or local government agency including, but not limited to, judgments based on taxes owed and fines and penalties assessed by any federal, state or local government agency? Yes No

(d) an investigation for a civil or criminal violation for any business related conduct by any federal, state or local agency? Yes No

(e) a grant of immunity for any business-related conduct constituting a crime under federal, state or local governmental law including, but not limited to, fraud, extortion, bribery, racketeering, price-fixing, bid collusion or any crime related to truthfulness and/or business conduct? Yes No

(f) a federal, state or local government suspension or debarment from the contracting process? Yes No

(g) a federal, state or local government contract suspension or termination for cause prior to the completion of the term of a contract? Yes No

(h) a federal, state or local government denial of a lease or contract award for non-responsibility? Yes No

(i) an administrative proceeding or civil action seeking specific performance or restitution in connection with any federal, state or local contract or lease? Yes No

1"Affiliate"meaning: (a) any entity in which the vendor owns more than 50% of the voting stock; (b) any individual, entity or group of principal owners or officers who own more than 50% of the voting stock of the vendor; or (c) any entity whose voting stock is more than 50% owned by the same individual, entity or group described in clause (b). In addition, if a vendor owns less than 50% of the voting stock of another entity, but directs or has the right to direct such entity’s daily operations, that entity will be an “affiliate” for purposes of this questionnaire.


VENDOR FEIN:

(j) a federal, state or local determination of a willful violation of any public works or labor law or regulation? Yes No

(k) a sanction imposed as a result of judicial or administrative proceedings relative to any business or professional license? Yes No

(l) a consent order with the New York State Department of Environmental Conservation, or a federal, state or local government enforcement determination involving a violation of federal, state or local laws? Yes No

(m) an Occupational Safety and Health Act citation and Notification of Penalty containing a violation classified as serious or willful? Yes No

(n) a rejection of a bid on a New York State contract or a lease with the State for failure to comply with the MacBride Fair Employment Principles? Yes No

(o) a citation, violation order, pending administrative hearing or proceeding or determination issued by a federal, state or local government for violations of: Yes No- health laws, rules or regulations Yes No- unemployment insurance or workers’ compensation coverage or claim

requirements Yes No- ERISA (Employee Retirement Income Security Act) Yes No- human rights laws Yes No- federal U.S. Citizenship and Immigration Services laws Yes No- Sherman Act or other federal anti-trust laws Yes No

(p) entered into an agreement to a voluntary exclusion from contracting with a federal, state or local governmental entity? Yes No

(q) a denial, decertification, revocation or forfeiture of Women’s Business Enterprise, Minority Business Enterprise or Disadvantaged Business Enterprise status? Yes No

(r) a rejection of a low bid on a federal, state or local contract for failure to meet statutory affirmative action or Minority or Women's Business Enterprise or Disadvantaged Business Enterprise status requirements on a previously held contract? Yes No

(s) a finding of non-responsibility by an agency or authority due to a violation of State Finance Law §139-j? Yes No

FOR EACH YES ANSWER TO QUESTIONS 14 a-s, PROVIDE DETAILS ON ADDITIONAL SHEETS REGARDING THE FINDING, INCLUDING BUT NOT LIMITED TO CAUSE, CURRENT STATUS, RESOLUTION, ETC.

15. DURING THE PAST THREE YEARS, HAS THE VENDOR FAILED TO:(a) FILE RETURNS OR PAY ANY APPLICABLE FEDERAL, STATE OR LOCAL

GOVERNMENT TAXES? Yes NoIf yes, identify the taxing jurisdiction, type of tax, liability year(s) and tax liability amount the company failed to file/pay and the current status of the liability:

(b) FILE RETURNS OR PAY NEW YORK STATE UNEMPLOYMENT INSURANCE? Yes No

If yes, indicate the years the company failed to file/pay the insurance and the current status of the liability:


VENDOR FEIN:

16. HAVE ANY BANKRUPTCY PROCEEDINGS BEEN INITIATED BY OR AGAINST THE VENDOR OR ITS AFFILIATES WITHIN THE PAST SEVEN YEARS (WHETHER OR NOT CLOSED) OR IS ANY BANKRUPTCY PROCEEDING PENDING BY OR AGAINST THE VENDOR OR ITS AFFILIATES, REGARDLESS OF THE DATE OF FILING? Yes No

If yes, indicate if this is applicable to the submitting vendor or one of its affiliates:If it is an affiliate, include the affiliate’s name and FEIN:Provide the court name, address and docket number:Indicate if the proceedings have been initiated, remain pending or have been closed:If closed, provide the date closed:

17. DOES VENDOR HAVE THE FINANCIAL RESOURCES NECESSARY TO FULFILL THE REQUIREMENTS OF THE PROPOSED CONTRACT? Yes No


VENDOR FEIN:

State of )) ss:

County of )

CERTIFICATION:

The undersigned, personally and on behalf of the vendor identified in questions 1-3 above, does hereby state and certify to the New York State Office of General Services that the information given above is true, accurate and complete. It is further acknowledged that the State of New York and the Office of General Services will rely upon the information contained herein and in any attached pages for purposes of evaluating our company for vendor's responsibility for contract award and the State may, in its discretion, by means which it may choose, verify the truth and accuracy of all statements made herein. It is further acknowledged that intentional submission of false or misleading information may constitute a felony under Penal Law Section 175.35 or may constitute a misdemeanor under Penal Law Sections 175.30, 210.35 or 210.45, and may also be punishable by a fine and/or imprisonment of up to five years under 18 USC Section 1001 and may result in contract termination.

Name of Business Signature of Officer

Address Typed Copy of Signature

City, State, Zip Title

Sworn to before me this day of ____________ 20 .

Notary Public: Registration No: State:

Appendix 2

New York State Department of Taxation and Finance

Contractor Certification (ST-220-TD) {Updated 01/08}Contractor Certification to Covered Agency (ST-220-CA)

New York State Department of Taxation and Finance ST-220-TDContractor Certification (5/07)

(Pursuant to Section 5-a of the Tax Law, as amended, effective April 26, 2006)

For information, consult Publication 223, Question and Answers Concerning Tax Law Section 5-a (see Need help? below).Contractor name

Contractor’s principal place of business City State ZIP code

Contractor’s mailing address (if different than above)

Contractor's federal employer identification number (EIN) Contractor's sales tax ID number (if different from contractor's EIN) Contractor's telephone number

( )Covered agency name OGS PSG

Contract number or description Estimated contract value over the full term of the contract(but not including renewals) $ N/A

Covered agency address Corning Tower, The Governor Nelson A. Rockefeller Plaza, Albany, NY 12242

Covered agency telephone number

General information Section 5-a of the Tax Law, as amended, effective April 26, 2006, requires certain contractors awarded certain state contracts valued at more than $100,000 to certify to the Tax Department that they are registered to collect New York State and local sales and compensating use taxes, if they made sales delivered by any means to locations within New York State of tangible personal property or taxable services having a cumulative value in excess of $300,000, measured over a specified period. In addition, contractors must certify to the Tax Department that each affiliate and subcontractor exceeding such sales threshold during a specified period is registered to collect New York State and local sales and compensating use taxes. Contractors must also file a Form ST-220-CA, certifying to the procuring state entity that they filed Form ST-220-TD with the Tax Department and that the information contained on Form ST-220-TD is correct and complete as of the date they file Form ST-220-CA.

All sections must be completed including all fields on the top of this page, all sections on page 2, Schedule A on page 3, if applicable, and Individual, Corporation, Partnership, or LLC Acknowledgement on page 4. If you do not complete these areas, the form will be returned to you for completion.

Privacy notification The Commissioner of Taxation and Finance may collect and maintain personal information pursuant to the New York State Tax Law, including but not limited to, sections 5-a, 171, 171-a, 287, 308, 429, 475, 505, 697, 1096, 1142, and 1415 of that Law; and may require disclosure of social security numbers pursuant to 42 USC 405(c)(2)(C)(i).

This information will be used to determine and administer tax liabilities and, when authorized by law, for certain tax offset and exchange of tax information programs as well as for any other lawful purpose.

Information concerning quarterly wages paid to employees is provided to certain state agencies for purposes of fraud prevention, support enforcement, evaluation of the effectiveness of certain employment and training programs and other purposes authorized by law.

Failure to provide the required information may subject you to civil or criminal penalties, or both, under the Tax Law.

This information is maintained by the Director of Records Management and Data Entry, NYS Tax Department, W A Harriman Campus, Albany NY 12227.

For more detailed information regarding this form and section 5-a of the Tax Law, see Publication 223, Questions and Answers Concerning Tax Law Section 5-a, (as amended, effective April 26, 2006), available at www.nystax.gov. Information is also available by calling the Tax Department’s Contractor Information Center at 1 800 698-2931.

Note: Form ST-220-TD must be signed by a person authorized to make the certification on behalf of the contractor, and the acknowledgement on page 4 of this form must be completed before a notary public.

Mail completed form to:NYS TAX DEPARTMENT DATA ENTRY SECTION W A HARRIMAN CAMPUS ALBANY NY 12227

Need Help?Internet access: www.nystax.gov(for information, forms, and publications)

Fax-on-demand forms: 1 800 748-3676

Telephone assistance is available from 8:00 A.M. to 5:00 P.M. (eastern time), Monday through Friday.

To order forms and publications: 1 800 462-8100

Sales Tax Information Center: 1 800 698-2909

From areas outside the U.S. and outside Canada: (518) 485-6800

Hearing and speech impaired (telecommunications device for thedeaf (TDD) callers only): 1 800 634-2110

Persons with disabilities: In compliance with the Americans with Disabilities Act, we will ensure that our lobbies, offices, meeting rooms, and other facilities are accessible to persons with disabilities. If you have questions about special accommodations for persons with disabilities, please call 1 800 972-1233.

Page 2 of 4 ST-220-TD (5/07)

I, ____________________________ , hereby affirm, under penalty of perjury, that I am ______________________ (name) ( title)of the above-named contractor, and that I am authorized to make this certification on behalf of such contractor.

Complete Sections 1, 2, 3 below. Make only one entry in each section below.

Section 1 - Contractor registration status

The contractor has made sales delivered by any means to locations within New York State of tangible personal property or taxable services having a cumulative value in excess of $300,000 during the four sales tax quarters which immediately precede the sales tax quarter in which this certification is made. The contractor is registered to collect New York State and local sales and compensating use taxes with the Commissioner of Taxation and Finance pursuant to sections 1134 and 1253 of the Tax Law, and is listed on Schedule A of this certification.

The contractor has not made sales delivered by any means to locations within New York State of tangible personal property or taxable services having a cumulative value in excess of $300,000 during the four sales tax quarters which immediately precede the sales tax quarter in which this certification is made.

Section 2 - Affiliate registration statusThe contractor does not have any affiliates.

To the best of the contractor’s knowledge, the contractor has one or more affiliates having made sales delivered by any means to locations within New York State of tangible personal property or taxable services having a cumulative value in excess of $300,000 during the four sales tax quarters which immediately precede the sales tax quarter in which this certification is made, and each affiliate exceeding the $300,000 cumulative sales threshold during such quarters is registered to collect New York State and local sales and compensating use taxes with the Commissioner of Taxation and Finance pursuant to sections 1134 and 1253 of the Tax Law. The contractor has listed each affiliate exceeding the $300,000 cumulative sales threshold during such quarters on Schedule A of this certification.

To the best of the contractor’s knowledge, the contractor has one or more affiliates, and each affiliate has not made sales delivered by any means to locations within New York State of tangible personal property or taxable services having a cumulative value in excess of $300,000 during the four sales tax quarters which immediately precede the sales tax quarter in which this certification is made.

Section 3 - Subcontractor registration status

The contractor does not have any subcontractors.

To the best of the contractor’s knowledge, the contractor has one or more subcontractors having made sales delivered by any means to locations within New York State of tangible personal property or taxable services having a cumulative value in excess of $300,000 during the four sales tax quarters which immediately precede the sales tax quarter in which this certification is made, and each subcontractor exceeding the $300,000 cumulative sales threshold during such quarters is registered to collect New York State and local sales and compensating use taxes with the Commissioner of Taxation and Finance pursuant to sections 1134 and 1253 of the Tax Law. The contractor has listed each subcontractor exceeding the $300,000 cumulative sales threshold during such quarters on Schedule A of this certification.

To the best of the contractor’s knowledge, the contractor has one or more subcontractors, and each subcontractor has not made sales delivered by any means to locations within New York State of tangible personal property or taxable services having a cumulative value in excess of $300,000 during the four sales tax quarters which immediately precede the sales tax quarter in which this certification is made.

Sworn to this______ day of _________, 20 ____

(sign before a notary public) (title)

ST-220-TD (5/07) Page 3 of 4

Schedule A - Listing of each entity (contractor, affiliate, or subcontractor) exceeding $300,000 cumulative sales threshold

List the contractor, or affiliate, or subcontractor in Schedule A only if such entity exceeded the $300,000 cumulative sales threshold during the specified sales tax quarters. See directions below. For more information, see Publication 223.

ARelationship to

Contractor

BName

CAddress

DFederal ID

Number

ESales Tax ID Number

FRegistrationIn Progress

Column A - Enter C in column A if the contractor; A if an affiliate of the contractor; or S if a subcontractor.

Column B - Name - If the entity is a corporation or limited liability company, enter the exact legal name as registered with the NY Department of State, if applicable. If the entity is a partnership or sole proprietor, enter the name of the partnership and each partner’s given name, or the given name(s) of the owner(s), as applicable. If the entity has a different DBA (doing business as) name, enter that name as well.

Column C - Address - Enter the street address of the entity’s principal place of business. Do not enter a PO box.

Column D - ID number - Enter the federal employer identification number (EIN) assigned to the entity. If the entity is an individual, enter the social security number of that person.

Column E - Sales tax ID number - Enter only if different from federal EIN in column D.

Column F - If applicable, enter an X if the entity has submitted Form DTF-17 to the Tax Department but has not received its certificate of authority as of the date of this certification.

Page 4 of 4 ST-220-TD (5/07)

Individual, Corporation, Partnership, or LLC Acknowledgment

STATE OF }: SS.:

COUNTY OF }

On the ______ day of _________ in the year 20___, before me personally appeared known to me to be the person who executed the foregoing instrument, who, being duly sworn by me did depose and say that

_he resides at ,

Town of ,

County of ,

State of ; and further that:

[Mark an X in the appropriate box and complete the accompanying statement.]

(If an individual): _he executed the foregoing instrument in his/her name and on his/her own behalf.

(If a corporation): _he is the of , the corporation described in said instrument; that, by authority of the Board of Directors of said corporation, _he is authorized to execute the foregoing instrument on behalf of the corporation for purposes set forth therein; and that, pursuant to that authority, _he executed the foregoing instrument in the name of and on behalf of said corporation as the act and deed of said corporation.

(If a partnership): _he is a of , the partnership described in said instrument; that, by the terms of said partnership, _he is authorized to execute the foregoing instrument on behalf of the partnership for purposes set forth therein; and that, pursuant to that authority, _he executed the foregoing instrument in the name of and on behalf of said partnership as the act and deed of said partnership.

(If a limited liability company): _he is a duly authorized member of LLC, the limited liability company described in said instrument; that _he is authorized to execute the foregoing instrument on behalf of the limited liability company for purposes set forth therein; and that, pursuant to that authority, _he executed the foregoing instrument in the name of and on behalf of said limited liability company as the act and deed of said limited liability company.

Notary Public

Registration No.

ST-220-CA(6/06)

New York State Department of Taxation and Finance

Contractor Certification to Covered Agency(Pursuant to Section 5-a of the Tax Law, as amended, effective April 26, 2006)

For information, consult Publication 223, Question and Answers Concerning Tax Law Section 5-a (see Need Help? on back).Contractor name For covered agency use only Contract

number or description

Contractor’s principal place of business City State ZIP code

Contractor’s mailing address (if different than above) Estimated contract value over the full term of contract (but not including renewals)

Contractor's federal employer identification number (EIN) Contractor's sales tax ID number (if different from contractor's EIN)

$Contractor's telephone number

( )

Covered agency name

Covered agency address Covered agency telephone number

I, ________________________________ , hereby affirm, under penalty of perjury, that I am ______________________________ (name) (title)of the above-named contractor, that I am authorized to make this certification on behalf of such contractor, and I further certify that:(Mark an X in only one box)

The contractor has filed Form ST-220-TD with the Department of Taxation and Finance in connection with this contract and, to the best of contractor’s knowledge, the information provided on the Form ST-220-TD, is correct and complete.

The contractor has previously filed Form ST-220-TD with the Tax Department in connection with (insert contract number or description)

and, to the best of the contractor’s knowledge, the information provided on that previously filed Form T-220-TD, is correct and complete as of the current date, and thus the contractor is not required to file a new Form ST-220-TD at this time.

Sworn to this______ day of _________, 20 ____

(sign before a notary public) (title)

Instructions

General InformationTax Law section 5-a was amended, effective April 26, 2006. On or after that date, in all cases where a contract is subject to Tax Law section 5-a, a contractor must file (1) Form ST-220-CA, Contractor Certification to Covered Agency, with a covered agency, and (2) Form ST-220-TD with the Tax Department before a contract may take effect. The circumstances when a contract is subject to section 5-a are listed in Publication 223, Q&A 3. This publication is available on our Web site, by fax, or by mail. (See Need help? for more information on how to obtain this publication.) In addition, a contractor must file a new Form ST-220-CA with a covered agency before an existing contract with such agency may be renewed.

If you have questions, please call our information center at 1 800 698-2931.

Note: Form ST-220-CA must be signed by a person authorized to make the certification on behalf of the contractor, and the acknowledgement on page 2 of this form must be completed before a notary public.

When to complete this formAs set forth in Publication 223, a contract is subject to section 5-a, and you must make the required certification(s), if:

i. The procuring entity is a covered agency within the meaning of the statute (see Publication 223, Q&A 5);

ii. The contractor is a contractor within the meaning of the statute (see Publication 223, Q&A 6); and

iii. The contract is a contract within the meaning of the statute. This is the case when it (a) has a value in excess of $100,000 and (b) is a contract for commodities or services, as such terms are defined for purposes of the statute (see Publication 223, Q&A 8 and 9).

Furthermore, the procuring entity must have begun the solicitation to purchase on or after January 1, 2005, and the resulting contract must have been awarded,

amended, extended, renewed, or assigned on or after April 26, 2006 (the effective date of the section 5-a amendments).

Page 2 of 2 ST-220-CA (6/06)

Individual, Corporation, Partnership, or LLC Acknowledgment

STATE OF }: SS.:

COUNTY OF }

On the day ______ of _________ in the year 20___, before me personally appeared known to me to be the person who executed the foregoing instrument, who, being duly sworn by me did depose and say that

_he resides at ,

Town of ,

County of ,

State of ; and further that:

[Mark an X in the appropriate box and complete the accompanying statement.]

(If an individual): _he executed the foregoing instrument in his/her name and on his/her own behalf.

(If a corporation): _he is the of , the corporation described in said instrument; that, by authority of the Board of Directors of said corporation, _he is authorized to execute the foregoing instrument on behalf of the corporation for purposes set forth therein; and that, pursuant to that authority, _he executed the foregoing instrument in the name of and on behalf of said corporation as the act and deed of said corporation.

(If a partnership): _he is the of , the partnership described in said instrument; that, by the terms of said partnership, _he is authorized to execute the foregoing instrument on behalf of the partnership for purposes set forth therein; and that, pursuant to that authority, _he executed the foregoing instrument in the name of and on behalf of said partnership as the act and deed of said partnership.

(If a limited liability company): _he is a duly authorized member of LLC, the limited liability company described in said instrument; that _he is authorized to execute the foregoing instrument on behalf of the limited liability company for purposes set forth therein; and that, pursuant to that authority, _he executed the foregoing instrument in the name of and on behalf of said limited liability company as the act and deed of said limited liability company.

Notary Public

Registration No.

Privacy notificationThe Commissioner of Taxation and Finance may collect and maintain personal information pursuant to the New York State Tax Law, including but not limited to, sections 5-a, 171, 171-a, 287, 308, 429, 475, 505, 697, 1096, 1142, and 1415 of that Law; and may require disclosure of social security numbers pursuant to 42 USC 405(c)(2)(C)(i).

This information will be used to determine and administer tax liabilities and, when authorized by law, for certain tax offset and exchange of tax information programs as well as for any other lawful purpose.

Information concerning quarterly wages paid to employees is provided to certain state agencies for purposes of fraud prevention, support enforcement, evaluation of the effectiveness of certain employment and training programs and other purposes authorized by law.

Failure to provide the required information may subject you to civil or criminal penalties, or both, under the Tax Law.

This information is maintained by the Director of Records Management and Data Entry, NYS Tax Department, W A Harriman Campus, Albany NY 12227; telephone 1 800 225-5829. From areas outside the United States and outside Canada, call (518) 485-6800.

Need Help?Internet access: www.nystax.gov(for information, forms, and publications)

Fax-on-demand forms: 1 800 748-3676

Telephone assistance is available from 8:00 A.M. to 5:00 P.M. (eastern time), Monday through Friday. 1 800 698-2931

To order forms and publications: 1 800 462-8100

From areas outside the U.S. and outside Canada: (518) 485-6800

Hearing and speech impaired (telecommunications device for thedeaf (TDD) callers only): 1 800 634-2110

Persons with disabilities: In compliance with the Americans with Disabilities Act, we will ensure that our lobbies, offices, meeting rooms, and other facilities are accessible to persons with disabilities. If you have questions about special accommodations for persons with disabilities, please call 1 800 972-1233.

APPENDIX A

STANDARD CLAUSES FOR NEW YORK STATE CONTRACTS

PLEASE RETAIN THIS DOCUMENTFOR FUTURE REFERENCE.

STANDARD CLAUSES FOR NYS CONTRACTS APPENDIX A

TABLE OF CONTENTS

1. Executory Clause

2. Non-Assignment Clause

3. Comptroller’s Approval

4. Workers’ Compensation Benefits

5. Non-Discrimination Requirements

6. Wage and Hours Provisions

7. Non-Collusive Bidding Certification

8. International Boycott Prohibition

9. Set-Off Rights

10. Records

11. Identifying Information and Privacy Notification

12. Equal Employment Opportunities For Minorities and Women

13. Conflicting Terms

14. Governing Law

15. Late Payment

16. No Arbitration

17. Service of Process

18. Prohibition on Purchase of Tropical Hardwoods

19. MacBride Fair Employment Principles

20. Omnibus Procurement Act of 1992

21. Reciprocity and Sanctions Provisions

22. Purchases of Apparel

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STANDARD CLAUSES FOR NYS CONTRACTS

The parties to the attached contract, license, lease, amendment or other agreement of any kind (hereinafter, "the contract" or "this contract") agree to be bound by the following clauses which are hereby made a part of the contract (the word "Contractor" herein refers to any party other than the State, whether a contractor, licenser, licensee, lessor, lessee or any other party):

1. EXECUTORY CLAUSE. In accordance with Section 41 of the State Finance Law, the State shall have no liability under this contract to the Contractor or to anyone else beyond funds appropriated and available for this contract.

2. NON-ASSIGNMENT CLAUSE. In accordance with Section 138 of the State Finance Law, this contract may not be assigned by the Contractor or its right, title or interest therein assigned, transferred, conveyed, sublet or otherwise disposed of without the previous consent, in writing, of the State and any attempts to assign the contract without the State's written consent are null and void. The Contractor may, however, assign its right to receive payment without the State's prior written consent unless this contract concerns Certificates of Participation pursuant to Article 5-A of the State Finance Law.

3. COMPTROLLER'S APPROVAL. In accordance with Section 112 of the State Finance Law (or, if this contract is with the State University or City University of New York, Section 355 or Section 6218 of the Education Law), if this contract exceeds $50,000 (or the minimum thresholds agreed to by the Office of the State Comptroller for certain S.U.N.Y. and C.U.N.Y. contracts), or if this is an amendment for any amount to a contract which, as so amended, exceeds said statutory amount, or if, by this contract, the State agrees to give something other than money when the value or reasonably estimated value of such consideration exceeds $10,000, it shall not be valid, effective or binding upon the State until it has been approved by the State Comptroller and filed in his office. Comptroller's approval of contracts let by the Office of General Services is required when such contracts exceed $85,000 (State Finance Law Section 163.6.a).

4. WORKERS' COMPENSATION BENEFITS. In accordance with Section 142 of the State Finance Law, this contract shall be void and of no force and effect unless the Contractor shall provide and maintain coverage during the life of this contract for the benefit of such employees as are required to be covered by the provisions of the Workers' Compensation Law.

5. NON-DISCRIMINATION REQUIREMENTS. To the extent required by Article 15 of the Executive Law (also known as the Human Rights Law) and all other State and Federal statutory and constitutional non-discrimination provisions, the Contractor will not discriminate against any employee or applicant for employment because of race, creed, color, sex, national origin, sexual orientation, age, disability, genetic predisposition or carrier status, or marital status. Furthermore, in accordance with Section 220-e of the Labor Law, if this is a contract for the construction, alteration or repair of any public building or public work or for the manufacture, sale or distribution of materials, equipment or supplies, and to the extent that this contract shall be performed within the State of New York, Contractor agrees that neither it nor its subcontractors shall, by reason of race, creed, color, disability, sex, or national origin: (a) discriminate in hiring against any New York State citizen who is qualified and available to perform the work; or (b) discriminate against or intimidate any employee hired for the performance of work under this contract. If this is a building service contract as defined in Section 230 of the Labor Law, then, in accordance with Section 239 thereof, Contractor agrees that neither it nor its subcontractors shall by reason of race, creed, color, national origin, age, sex or disability: (a) discriminate in hiring against any New York State citizen who is qualified and available to perform the work; or (b)

discriminate against or intimidate any employee hired for the performance of work under this contract. Contractor is subject to fines of $50.00 per person per day for any violation of Section 220-e or Section 239 as well as possible termination of this contract and forfeiture of all moneys due hereunder for a second or subsequent violation.6. WAGE AND HOURS PROVISIONS. If this is a public work contract covered by Article 8 of the Labor Law or a building service contract covered by Article 9 thereof, neither Contractor's employees nor the employees of its subcontractors may be required or permitted to work more than the number of hours or days stated in said statutes, except as otherwise provided in the Labor Law and as set forth in prevailing wage and supplement schedules issued by the State Labor Department. Furthermore, Contractor and its subcontractors must pay at least the prevailing wage rate and pay or provide the prevailing supplements, including the premium rates for overtime pay, as determined by the State Labor Department in accordance with the Labor Law.

7. NON-COLLUSIVE BIDDING CERTIFICATION. In accordance with Section 139-d of the State Finance Law, if this contract was awarded based upon the submission of bids, Contractor affirms, under penalty of perjury, that its bid was arrived at independently and without collusion aimed at restricting competition. Contractor further affirms that, at the time Contractor submitted its bid, an authorized and responsible person executed and delivered to the State a non-collusive bidding certification on Contractor's behalf.

8. INTERNATIONAL BOYCOTT PROHIBITION. In accordance with Section 220-f of the Labor Law and Section 139-h of the State Finance Law, if this contract exceeds $5,000, the Contractor agrees, as a material condition of the contract, that neither the Contractor nor any substantially owned or affiliated person, firm, partnership or corporation has participated, is participating, or shall participate in an international boycott in violation of the federal Export Administration Act of 1979 (50 USC App. Sections 2401 et seq.) or regulations thereunder. If such Contractor, or any of the aforesaid affiliates of Contractor, is convicted or is otherwise found to have violated said laws or regulations upon the final determination of the United States Commerce Department or any other appropriate agency of the United States subsequent to the contract's execution, such contract, amendment or modification thereto shall be rendered forfeit and void. The Contractor shall so notify the State Comptroller within five (5) business days of such conviction, determination or disposition of appeal (2NYCRR 105.4).

9. SET-OFF RIGHTS. The State shall have all of its common law, equitable and statutory rights of set-off. These rights shall include, but not be limited to, the State's option to withhold for the purposes of set-off any moneys due to the Contractor under this contract up to any amounts due and owing to the State with regard to this contract, any other contract with any State department or agency, including any contract for a term commencing prior to the term of this contract, plus any amounts due and owing to the State for any other reason including, without limitation, tax delinquencies, fee delinquencies or monetary penalties relative thereto. The State shall exercise its set-off rights in accordance with normal State practices including, in cases of set-off pursuant to an audit, the finalization of such audit by the State agency, its representatives, or the State Comptroller.

10. RECORDS. The Contractor shall establish and maintain complete and accurate books, records, documents, accounts and other evidence directly pertinent to performance under this contract (hereinafter, collectively, "the Records"). The Records must be kept for the balance of the calendar year in which they were made and for six (6) additional years thereafter. The State Comptroller, the Attorney General and any other person or entity authorized to conduct an examination, as well as the agency or agencies involved in this contract, shall have access to the

Page 92 June, 2006


Records during normal business hours at an office of the Contractor within the State of New York or, if no such office is available, at a mutually agreeable and reasonable venue within the State, for the term specified above for the purposes of inspection, auditing and copying. The State shall take reasonable steps to protect from public disclosure any of the Records which are exempt from disclosure under Section 87 of the Public Officers Law (the "Statute") provided that: (i) the Contractor shall timely inform an appropriate State official, in writing, that said records should not be disclosed; and (ii) said records shall be sufficiently identified; and (iii) designation of said records as exempt under the Statute is reasonable. Nothing contained herein shall diminish, or in any way adversely affect, the State's right to discovery in any pending or future litigation.

11. IDENTIFYING INFORMATION AND PRIVACY NOTIFICATION. (a) FEDERAL EMPLOYER IDENTIFICATION NUMBER and/or FEDERAL SOCIAL SECURITY NUMBER. All invoices or New York State standard vouchers submitted for payment for the sale of goods or services or the lease of real or personal property to a New York State agency must include the payee's identification number, i.e., the seller's or lessor's identification number. The number is either the payee's Federal employer identification number or Federal social security number, or both such numbers when the payee has both such numbers. Failure to include this number or numbers may delay payment. Where the payee does not have such number or numbers, the payee, on its invoice or New York State standard voucher, must give the reason or reasons why the payee does not have such number or numbers.

(b) PRIVACY NOTIFICATION. (1) The authority to request the above personal information from a seller of goods or services or a lessor of real or personal property, and the authority to maintain such information, is found in Section 5 of the State Tax Law. Disclosure of this information by the seller or lessor to the State is mandatory. The principal purpose for which the information is collected is to enable the State to identify individuals, businesses and others who have been delinquent in filing tax returns or may have understated their tax liabilities and to generally identify persons affected by the taxes administered by the Commissioner of Taxation and Finance. The information will be used for tax administration purposes and for any other purpose authorized by law. (2) The personal information is requested by the purchasing unit of the agency contracting to purchase the goods or services or lease the real or personal property covered by this contract or lease. The information is maintained in New York State's Central Accounting System by the Director of Accounting Operations, Office of the State Comptroller, 110 State Street, Albany, New York 12236.

12. EQUAL EMPLOYMENT OPPORTUNITIES FOR MINORITIES AND WOMEN. In accordance with Section 312 of the Executive Law, if this contract is: (i) a written agreement or purchase order instrument, providing for a total expenditure in excess of $25,000.00, whereby a contracting agency is committed to expend or does expend funds in return for labor, services, supplies, equipment, materials or any combination of the foregoing, to be performed for, or rendered or furnished to the contracting agency; or (ii) a written agreement in excess of $100,000.00 whereby a contracting agency is committed to expend or does expend funds for the acquisition, construction, demolition, replacement, major repair or renovation of real property and improvements thereon; or (iii) a written agreement in excess of $100,000.00 whereby the owner of a State assisted housing project is committed to expend or does expend funds for the acquisition, construction, demolition, replacement, major repair or renovation of real property and improvements thereon for such project, then:

(a) The Contractor will not discriminate against employees or applicants for employment because of race, creed, color, national origin, sex, age, disability or marital status, and will undertake or continue existing programs of affirmative action to ensure that minority group

members and women are afforded equal employment opportunities without discrimination. Affirmative action shall mean recruitment, employment, job assignment, promotion, upgradings, demotion, transfer, layoff, or termination and rates of pay or other forms of compensation;

(b) at the request of the contracting agency, the Contractor shall request each employment agency, labor union, or authorized representative of workers with which it has a collective bargaining or other agreement or understanding, to furnish a written statement that such employment agency, labor union or representative will not discriminate on the basis of race, creed, color, national origin, sex, age, disability or marital status and that such union or representative will affirmatively cooperate in the implementation of the contractor's obligations herein; and

(c) the Contractor shall state, in all solicitations or advertisements for employees, that, in the performance of the State contract, all qualified applicants will be afforded equal employment opportunities without discrimination because of race, creed, color, national origin, sex, age, disability or marital status.

Contractor will include the provisions of "a", "b", and "c" above, in every subcontract over $25,000.00 for the construction, demolition, replacement, major repair, renovation, planning or design of real property and improvements thereon (the "Work") except where the Work is for the beneficial use of the Contractor. Section 312 does not apply to: (i) work, goods or services unrelated to this contract; or (ii) employment outside New York State; or (iii) banking services, insurance policies or the sale of securities. The State shall consider compliance by a contractor or subcontractor with the requirements of any federal law concerning equal employment opportunity which effectuates the purpose of this section. The contracting agency shall determine whether the imposition of the requirements of the provisions hereof duplicate or conflict with any such federal law and if such duplication or conflict exists, the contracting agency shall waive the applicability of Section 312 to the extent of such duplication or conflict. Contractor will comply with all duly promulgated and lawful rules and regulations of the Governor's Office of Minority and Women's Business Development pertaining hereto.

13. CONFLICTING TERMS. In the event of a conflict between the terms of the contract (including any and all attachments thereto and amendments thereof) and the terms of this Appendix A, the terms of this Appendix A shall control.

14. GOVERNING LAW. This contract shall be governed by the laws of the State of New York except where the Federal supremacy clause requires otherwise.

15. LATE PAYMENT. Timeliness of payment and any interest to be paid to Contractor for late payment shall be governed by Article 11-A of the State Finance Law to the extent required by law.

16. NO ARBITRATION. Disputes involving this contract, including the breach or alleged breach thereof, may not be submitted to binding arbitration (except where statutorily authorized), but must, instead, be heard in a court of competent jurisdiction of the State of New York.

17. SERVICE OF PROCESS. In addition to the methods of service allowed by the State Civil Practice Law & Rules ("CPLR"), Contractor hereby consents to service of process upon it by registered or certified mail, return receipt requested. Service hereunder shall be complete upon Contractor's actual receipt of process or upon the State's receipt of the return thereof by the United States Postal Service as refused or undeliverable. Contractor must promptly notify the State, in writing, of each and every change of address to which service of process can be made. Service by the State to the last known address shall be sufficient. Contractor will have thirty (30) calendar days after service hereunder is complete in which to respond.

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18. PROHIBITION ON PURCHASE OF TROPICAL HARDWOODS. The Contractor certifies and warrants that all wood products to be used under this contract award will be in accordance with, but not limited to, the specifications and provisions of State Finance Law §165. (Use of Tropical Hardwoods) which prohibits purchase and use of tropical hardwoods, unless specifically exempted, by the State or any governmental agency or political subdivision or public benefit corporation. Qualification for an exemption under this law will be the responsibility of the contractor to establish to meet with the approval of the State.

In addition, when any portion of this contract involving the use of woods, whether supply or installation, is to be performed by any subcontractor, the prime Contractor will indicate and certify in the submitted bid proposal that the subcontractor has been informed and is in compliance with specifications and provisions regarding use of tropical hardwoods as detailed in §165 State Finance Law. Any such use must meet with the approval of the State; otherwise, the bid may not be considered responsive. Under bidder certifications, proof of qualification for exemption will be the responsibility of the Contractor to meet with the approval of the State.

19. MACBRIDE FAIR EMPLOYMENT PRINCIPLES. In accordance with the MacBride Fair Employment Principles (Chapter 807 of the Laws of 1992), the Contractor hereby stipulates that the Contractor either (a) has no business operations in Northern Ireland, or (b) shall take lawful steps in good faith to conduct any business operations in Northern Ireland in accordance with the MacBride Fair Employment Principles (as described in Section 165 of the New York State Finance Law), and shall permit independent monitoring of compliance with such principles.

20. OMNIBUS PROCUREMENT ACT OF 1992. It is the policy of New York State to maximize opportunities for the participation of New York State business enterprises, including minority and women-owned business enterprises as bidders, subcontractors and suppliers on its procurement contracts.

Information on the availability of New York State subcontractors and suppliers is available from:

NYS Department of Economic DevelopmentDivision for Small Business30 South Pearl St -- 7th FloorAlbany, New York 12245Telephone: 518-292-5220Fax: 518-292-5884http://www.empire.state.ny.us

A directory of certified minority and women-owned business enterprises is available from:

NYS Department of Economic DevelopmentDivision of Minority and Women's Business Development30 South Pearl St -- 2nd FloorAlbany, New York 12245Telephone: 518-292-5250Fax: 518-292-5803http://www.empire.state.ny.us

The Omnibus Procurement Act of 1992 requires that by signing this bid proposal or contract, as applicable, Contractors certify that whenever the total bid amount is greater than $1 million:

(a) The Contractor has made reasonable efforts to encourage the participation of New York State Business Enterprises as suppliers and subcontractors, including certified minority and women-owned business

enterprises, on this project, and has retained the documentation of these efforts to be provided upon request to the State;

(b) The Contractor has complied with the Federal Equal Opportunity Act of 1972 (P.L. 92-261), as amended;

(c) The Contractor agrees to make reasonable efforts to provide notification to New York State residents of employment opportunities on this project through listing any such positions with the Job Service Division of the New York State Department of Labor, or providing such notification in such manner as is consistent with existing collective bargaining contracts or agreements. The Contractor agrees to document these efforts and to provide said documentation to the State upon request; and

(d) The Contractor acknowledges notice that the State may seek to obtain offset credits from foreign countries as a result of this contract and agrees to cooperate with the State in these efforts.

21. RECIPROCITY AND SANCTIONS PROVISIONS. Bidders are hereby notified that if their principal place of business is located in a country, nation, province, state or political subdivision that penalizes New York State vendors, and if the goods or services they offer will be substantially produced or performed outside New York State, the Omnibus Procurement Act 1994 and 2000 amendments (Chapter 684 and Chapter 383, respectively) require that they be denied contracts which they would otherwise obtain. NOTE: As of May 15, 2002, the list of discriminatory jurisdictions subject to this provision includes the states of South Carolina, Alaska, West Virginia, Wyoming, Louisiana and Hawaii. Contact NYS Department of Economic Development for a current list of jurisdictions subject to this provision.

22. PURCHASES OF APPAREL. In accordance with State Finance Law 162 (4-a), the State shall not purchase any apparel from any vendor unable or unwilling to certify that: (i) such apparel was manufactured in compliance with all applicable labor and occupational safety laws, including, but not limited to, child labor laws, wage and hours laws and workplace safety laws, and (ii) vendor will supply, with its bid (or, if not a bid situation, prior to or at the time of signing a contract with the State), if known, the names and addresses of each subcontractor and a list of all manufacturing plants to be utilized by the bidder.

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THIS PAGE IS INTENTIONALLY LEFT BLANK

June, 2006


APPENDIX B

GENERAL SPECIFICATIONS

PLEASE RETAIN THIS DOCUMENT FOR FUTURE REFERENCE

July 2006 Page 89

GENERAL SPECIFICATIONS APPENDIX B

TABLE OF CONTENTS

GENERAL PAGE

1. Applicability 12. Governing Law 13. Ethics Compliance 14. Conflict of Terms 15. Definitions 1-3

BID SUBMISSION

6. International Bidding 37. Bid Opening 38. Bid Submission 39. Facsimile Submissions 310. Authentication of Facsimile Bids 411. Late Bids 412. Bid Contents 413. Extraneous Terms 414. Confidential/Trade Secret Materials 415. Release of Bid Evaluation Materials 416. Freedom of Information Law 517. Prevailing Wage Rates - Public Works

and Building Services Contracts 518. Taxes 619. Expenses Prior to Contract Execution 620. Advertising Results 621. Product References 622. Remanufactured, Recycled, Recyclable

Or Recovered Materials 623. Products Manufactured in Public

Institutions 624. Pricing 625. Drawings 726. Site Inspection 727. Procurement Card 728. Samples 7

BID EVALUATION

29. Bid Evaluation 830. Conditional Bid 831. Clarification/Revisions 832. Prompt Payment Discounts 833. Equivalent or Identical Bids 834. Performance and Responsibility

Qualifications 835. Disqualification for Past Performance 836. Quantity Changes Prior To Award 837. Timeframe for Offers 8

TERMS & CONDITIONS

38. Contract Creation/Execution 839. Participation in Centralized Contracts 840. Modification of Contract Terms 941. Scope Changes 942. Estimated/Specific Quantity Contracts 9

TERMS & CONDITIONS PAGE

43. Emergency Contracts 944. Purchase Orders 945. Product Delivery 1046. Weekend and Holiday Deliveries 1047. Shipping/Receipt of Product 1048. Title and Risk of Loss 1049. Re-Weighing Product 1050. Product Substitution 1051. Rejected Product 1052. Installation 1053. Repaired or Replaced Product/

Components 1154. On-Site Storage 1155. Employees/Subcontractors/Agents 1156. Assignment 1157. Subcontractors and Suppliers 1158. Performance/Bid Bond 1159. Suspension of Work 1160. Termination 1161. Savings/Force Majeure 1262. Contract Billings 1263. Default - Authorized User 1264. Interest on Late Payments 1265. Remedies for Breach 1366. Assignment of Claim 1367. Toxic Substances 1368. Independent Contractor 1369. Security 1370. Cooperation with Third Parties 1371. Contract Term - Renewal 1372. Additional Warranties 1373. Legal Compliance 1574. Indemnification 1575. Indemnification Relating to Third

Party Rights 1576. Limitation of Liability 1577. Insurance 15

THE FOLLOWING CLAUSES PERTAIN TOTECHNOLOGY & NEGOTIATED CONTRACTS

78. Software License Grant 1579. Product Acceptance 1780. Audit of Licensed Product Usage 1781. Ownership/Title to Project

Deliverables 1782. Proof of License 1883. Product Version 1884. Changes to Product or

Service Offerings 1885. No Hardstop/Passive

License Monitoring 1986. Source Code Escrow for

Licensed Product 19

July 2006


GENERAL

1. APPLICABILITY The terms and conditions set forth in this Appendix B are expressly incorporated in and applicable to the resulting procurement contracts let by the Office of General Services Procurement Services Group, or let by any other Authorized User where incorporated by reference in its Bid Documents. Captions are intended as descriptive and are not intended to limit or otherwise restrict the terms and conditions set forth herein.

2. GOVERNING LAW This procurement, the resulting contract and any purchase orders issued hereunder shall be governed by the laws of the State of New York except where the Federal supremacy clause requires otherwise, and actions or proceedings arising from the contract shall be heard in a court of competent jurisdiction in the State of New York.

3. ETHICS COMPLIANCE All Bidders/Contractors and their employees must comply with the requirements of Sections 73 and 74 of the Public Officers Law, other State codes, rules, regulations and executive orders establishing ethical standards for the conduct of business with New York State. In signing the Bid, Bidder certifies full compliance with those provisions for any present or future dealings, transactions, sales, contracts, services, offers, relationships, etc., involving New York State and/or its employees. Failure to comply with those provisions may result in disqualification from the Bidding process, termination of contract, and/or other civil or criminal proceedings as required by law.

4. CONFLICT OF TERMS Unless otherwise set forth in the procurement or contract documents, conflicts among documents shall be resolved in the following order of precedence:a. Appendix A (Standard Clauses for NYS Contracts)b. Mini-Bid Project Definition if applicable and in accordance with the terms and conditions of the Back-Drop Contract.c. Contract and other writing(s) setting forth the final agreements, clarifications and terms between the Bid Documents and Contractor’s Bid. In the latter circumstance, clarifications must specifically note in writing what was offered by the Contractor and what was accepted by the State. If not, such clarifications shall be considered last in the order of precedence under this paragraph.d. Bid Documents (Other than Appendix A).

i. Bid Specifications prepared by the Authorized User.ii. Appendix B (General Specifications).iii. Incorporated Contract Appendices, if any, following the

order of precedence as stated for Contract above.e. Contractor’s Bid or Mini-Bid Proposal.f. Unincorporated Appendices (if any).

5. DEFINITIONS Terms used in this Appendix B shall have the following meanings:

AFFILIATE Any individual or other legal entity, (including but not limited to sole proprietor, partnership, limited liability company, firm or corporation) that effectively controls another company in which (a) the Bidder owns more than 50% of the ownership; or (b) any individual or other legal entity which owns more than 50% of the ownership of the Bidder. In addition, if a Bidder owns less than 50% of the ownership of another legal entity, but directs or has the right to direct such entity’s daily operations, that entity will be an Affiliate.

AGENCY OR AGENCIES The State of New York, acting by or through one or more departments, boards, commissions, offices or institutions of the State of New York.

ATTORNEY GENERAL Attorney General of the State of New York.

AUTHORIZED USER(S) Agencies, or any other entity authorized by the laws of the State of New York to participate in NYS centralized contracts (including but not limited to political subdivisions, public authorities, public benefit corporations and certain other entities set forth in law), or the State of New York acting on behalf of one or more such Agencies or other entities, provided that each such Agency or other entity shall be held solely responsible for liabilities or payments due as a result of its participation.

BID OR BID PROPOSAL An offer or proposal submitted by a Bidder to furnish a described product or a solution, perform services or means of achieving a practical end, at a stated price for the stated Contract term. As required by the Bid Documents, the Bid or proposal may be subject to modification through the solicitation by the Agency of best and final offers during the evaluation process prior to recommendation for award of the Contract.

BIDDER/OFFERER Any individual or other legal entity (including but not limited to sole proprietor, partnership, limited liability company, firm or corporation) which submits a Bid in response to a Bid Solicitation. The term Bidder shall also include the term “offeror.” In the case of negotiated Contracts, “Bidder” shall refer to the “Contractor.”

BID DOCUMENTS Writings by the State setting forth the scope, terms, conditions and technical specifications for a procurement of Product. Such writings typically include, but are not limited to: Invitation for Bids (IFB), Request for Quotation (RFQ), Request for Proposals (RFP), addenda or amendments thereto, and terms and conditions which are incorporated by reference, including but not limited to, Appendix A (Standard Clauses for NYS Contracts), Appendix B, (General Specifications). Where these General Specifications are incorporated in negotiated Contracts that have not been competitively Bid, the term “Bid Documents” shall be deemed to refer to the terms and conditions set forth in the negotiated Contract and associated documentation.

BID SPECIFICATION A written description drafted by the Authorized User setting forth the specific terms of the intended procurement, which may include: physical or functional characteristics, the nature of a commodity or construction item, any description of the work to be performed, Products to be provided, the necessary qualifications of the Bidder, the capacity and capability of the Bidder to successfully carry out the proposed Contract, or the process for achieving specific results and/or anticipated outcomes or any other requirement necessary to perform work. Where these General Specifications are incorporated in negotiated Contracts that have not been competitively Bid, the term “Bid Specifications” shall be deemed to refer to the terms and conditions set forth in the negotiated Contract and associated documentation.

COMMISSIONER Commissioner of OGS, or in the case of Bid Specifications issued by an Authorized User, the head of such Authorized User or their authorized representative.

COMPTROLLER Comptroller of the State of New York.

CONTRACT The writing(s) which contain the agreement of the Commissioner and the Bidder/Contractor setting forth the total legal obligation between the parties as determined by applicable rules of law, and which most typically include the following classifications of public procurements:

July 2006 91


a. Agency Specific Contracts Contracts where the specifications for a Product or a particular scope of work are described and defined to meet the needs of one or more Authorized User(s).

b. Centralized Contracts Single or multiple award Contracts where the specifications for a Product or general scope of work are described and defined by the Office of General Services to meet the needs of Authorized Users. Centralized Contracts may be awarded through multiple awards or through adoption of another jurisdiction’s contract or on a sole source, single source, emergency or competitive basis. Once established, procurements may be made from the selected Contractor(s) without further competition or Mini-Bid unless otherwise required by the Bid Specifications or Contract Award Notification.

c. Back-Drop Contracts Multiple award Centralized Contracts where the Office of General Services defines the specifications for a Product or general scope of work to meet the needs of Authorized Users. Bids may be submitted either at a date and time certain or may be accepted on a continuous or periodic recruitment basis, as set forth in the Bid Specifications. Selection of a Contractor(s) from among Back-Drop contract holders for an actual Product, project or particular scope of work may subsequently be made on a single or sole source basis, or on the basis of a Mini-Bid among qualified Back-Drop contract holders, or such other method as set forth in the Bid Document.

d. Piggyback Contract A Contract let by any department, agency or instrumentality of the United States government, or any department, agency, office, political subdivision or instrumentality of any state or state(s) which is adopted and extended for use by the OGS Commissioner in accordance with the requirements of the State Finance Law.

e. Contract Letter A letter to the successful Bidder(s) indicating acceptance of its Bid in response to a solicitation. Unless otherwise specified, the issuance of a Letter of Acceptance forms a Contract but is not an order for Product, and Contractor should not take any action with respect to actual Contract deliveries except on the basis of Purchase Orders sent from Authorized User(s).

CONTRACT AWARD NOTIFICATION An announcement to Authorized Users that a Contract has been established.

CONTRACTOR Any successful Bidder(s) to whom a Contract has been awarded by the Commissioner.

DOCUMENTATION The complete set of manuals (e.g., user, installation, instruction or diagnostic manuals) in either hard or electronic copy, which are necessary to enable an Authorized User to properly test, install, operate and enjoy full use of the Product.

EMERGENCY An urgent and unexpected requirement where health and public safety or the conservation of public resources is at risk.

ENTERPRISE The total business operations in the United States of Authorized User (s) without regard to geographic location where such operations are performed or the entity actually performing such operations on behalf of Authorized User.

ENTERPRISE LICENSE A license grant of unlimited rights to deploy, access, use and execute Product anywhere within the Enterprise up to the maximum capacity stated on the Purchase Order or in the Contract.

ERROR CORRECTIONS Machine executable software code furnished by Contractor which corrects the Product so as to conform to the applicable warranties, performance standards and/or obligations of the Contractor.

GROUP A classification of Product, services or technology which is designated by OGS.

INVITATION FOR BIDS (IFB) A type of Bid Document which is most typically used where requirements can be stated and award will be made based on lowest price to the responsive and responsible Bidder(s).

LICENSED SOFTWARE Software transferred upon the terms and conditions set forth in the Contract. “Licensed Software” includes error corrections, upgrades, enhancements or new releases, and any deliverables due under a maintenance or service contract (e.g., patches, fixes, PTFs, programs, code or data conversion, or custom programming).

LICENSEE One or more Authorized Users who acquire Product from Contractor by issuing a Purchase Order in accordance with the terms and conditions of the Contract; provided that, for purposes of compliance with an individual license, the term “Licensee” shall be deemed to refer separately to the individual Authorized User(s) who took receipt of and who is executing the Product, and who shall be solely responsible for performance and liabilities incurred. In the case of acquisitions by State Agencies, the Licensee shall be the State of New York.

LICENSE EFFECTIVE DATE The date Product is delivered to an Authorized User. Where a License involves Licensee’s right to copy a previously licensed and delivered Master Copy of a Program, the license effective date for additional copies shall be deemed to be the date on which the Purchase Order is executed.

LICENSOR A Contractor who transfers rights in proprietary Product to Authorized Users in accordance with the rights and obligations specified in the Contract.

MINI-BID PROJECT DEFINITION A Bid Document containing project specific Bid Specifications developed by or for an Authorized User which solicits Bids from Contractors previously qualified under a Back-Drop Contract.

MULTIPLE AWARD A determination and award of a Contract in the discretion of the Commissioner to more than one responsive and responsible Bidder who meets the requirements of a specification, where the multiple award is made on the grounds set forth in the Bid Document in order to satisfy multiple factors and needs of Authorized Users (e.g., complexity of items, various manufacturers, differences in performance required to accomplish or produce required end results, production and distribution facilities, price, compliance with delivery requirements, geographic location or other pertinent factors).

NEW PRODUCT RELEASES (Product Revisions) Any commercially released revisions to the licensed version of a Product as may be generally offered and available to Authorized Users. New releases involve a substantial revision of functionality from a previously released version of the Product.

OGS The New York State Office of General Services.

PROCUREMENT RECORD Documentation by the Authorized User of the decisions made and approach taken during the procurement process and during the contract term.

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PRODUCT A deliverable under any Bid or Contract which may include commodities, services and/or technology. The term “Product” includes Licensed Software.

PROPRIETARY Protected by secrecy, patent, copyright or trademark against commercial competition.

PURCHASE ORDER The Authorized User’s fiscal form or format that is used when making a purchase (e.g., formal written Purchase Order, Procurement Card, electronic Purchase Order, or other authorized instrument).

REQUEST FOR PROPOSALS (RFP) A type of Bid Document that is used for procurements where factors in addition to cost are considered and weighted in awarding the contract and where the method of award is “best value,” as defined by the State Finance Law.

REQUEST FOR QUOTATION (RFQ) A type of Bid Document that can be used when a formal Bid opening is not required (e.g., discretionary, sole source, single source or emergency purchases).

RESPONSIBLE BIDDER A Bidder that is determined to have financial and organizational capacity, legal authority, satisfactory previous performance, skill, judgment and integrity, and that is found to be competent, reliable and experienced, as determined by the Commissioner. For purposes of being deemed responsible, a Bidder must also be determined to be in compliance with Sections 139-j and 139-k of the State Finance Law relative to restrictions on contacts during the procurement process and disclosure of contacts and prior findings of non-responsibility under these statutes.

RESPONSIVE BIDDER A Bidder meeting the specifications or requirements prescribed in the Bid Document or solicitation, as determined by the OGS Commissioner.

SINGLE SOURCE A procurement where two or more Bidders can supply the required Product, and the Commissioner may award the contract to one Bidder over the other.

SITE The location (street address) where Product will be executed or services delivered.

SOLE SOURCE A procurement where only one Bidder is capable of supplying the required Product.

SOURCE CODE The programming statements or instructions written and expressed in any language understandable by a human being skilled in the art which are translated by a language compiler to produce executable machine Object Code.

STATE State of New York.

SUBCONTRACTOR Any individual or other legal entity, (including but not limited to sole proprietor, partnership, limited liability company, firm or corporation) who has entered into a contract, express or implied, for the performance of a portion of a Contract with a Contractor.

TERMS OF LICENSE The terms and conditions set forth in the Contract that are in effect and applicable to a Purchase Order at the time of order placement.

VIRUS Any computer code, whether or not written or conceived by Contractor, that disrupts, disables, harms, or otherwise impedes in any manner the operation of the Product, or any other associated software,

firmware, hardware, or computer system (such as local area or wide-area networks), including aesthetic disruptions or distortions, but does not include security keys or other such devices installed by Product manufacturer.

BID SUBMISSION

6. INTERNATIONAL BIDDING All offers (tenders), and all information and Product required by the solicitation or provided as explanation thereof, shall be submitted in English. All prices shall be expressed, and all payments shall be made, in United States Dollars ($US). Any offers (tenders) submitted which do not meet the above criteria will be rejected.

7. BID OPENING Bids may, as applicable, be opened publicly. The Commissioner reserves the right at any time to postpone or cancel a scheduled Bid opening.

8. BID SUBMISSION All Bids are to be packaged, sealed and submitted to the location stated in the Bid Specifications. Bidders are solely responsible for timely delivery of their Bids to the location set forth in the Bid Specifications prior to the stated Bid opening date/time.

A Bid return envelope, if provided with the Bid Specifications, should be used with the Bid sealed inside. If the Bid response does not fit into the envelope, the Bid envelope should be attached to the outside of the sealed box or package with the Bid inside. If using a commercial delivery company that requires use of their shipping package or envelope, Bidder’s sealed Bid, labeled as detailed below, should be placed within the shipper’s sealed envelope to ensure that the Bid is not prematurely opened.

All Bids must have a label on the outside of the package or shipping container outlining the following information:

“BID ENCLOSED (bold print, all capitals)

• Group Number• IFB or RFP Number• Bid Submission date and time”

In the event that a Bidder fails to provide such information on the return Bid envelope or shipping material, the receiving entity reserves the right to open the shipping package or envelope to determine the proper Bid number or Product group, and the date and time of Bid opening. Bidder shall have no claim against the receiving entity arising from such opening and such opening shall not affect the validity of the Bid or the procurement.

Notwithstanding the receiving agency’s right to open a Bid to ascertain the foregoing information, Bidder assumes all risk of late delivery associated with the Bid not being identified, packaged or labeled in accordance with the foregoing requirements.

All Bids must be signed by a person authorized to commit the Bidder to the terms of the Bid Documents and the content of the Bid (offer).

9. FACSIMILE SUBMISSIONS Unless specifically prohibited by the terms of the Bid Specifications, facsimile Bids may be SUBMITTED AT THE SOLE OPTION AND RISK OF THE BIDDER. Only the FAX number(s) indicated in the Bid Specifications may be used. Access to the facsimile machine(s) is on a “first come, first serve” basis, and the Commissioner bears no liability or responsibility and makes no guarantee whatsoever with respect to

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the Bidder’s access to such equipment at any specific time. Bidders are solely responsible for submission and receipt of the entire facsimile Bid by the Authorized User prior to Bid opening and must include on the first page of the transmission the total number of pages transmitted in the facsimile, including the cover page. Incomplete, ambiguous or unreadable transmissions in whole or in part may be rejected at the sole discretion of the Commissioner. Facsimile Bids are fully governed by all conditions outlined in the Bid Documents and must be submitted on forms or in the format required in the Bid Specifications, including the executed signature page and acknowledgment.

10. AUTHENTICATION OF FACSIMILE BIDS The act of submitting a Bid by facsimile transmission, including an executed signature page or as otherwise specified in the Bid Documents, shall be deemed a confirming act by Bidder which authenticates the signing of the Bid.

11. LATE BIDS For purposes of Bid openings held and conducted by OGS, a Bid must be received in such place as may be designated in the Bid Documents or if no place is specified in the OGS Mailroom located in the Empire State Plaza, Albany, New York 12242, at or before the date and time established in the Bid Specifications for the Bid opening. For purposes of Bid openings held and conducted by Authorized Users other than OGS, the term late Bid is defined as a Bid not received in the location established in the Bid Specifications at or before the date and time specified for the Bid opening.

Any Bid received at the specified location after the time specified will be considered a late Bid. A late Bid shall not be considered for award unless: (i) no timely Bids meeting the requirements of the Bid Documents are received or, (ii) in the case of a multiple award, an insufficient number of timely Bids were received to satisfy the multiple award; and acceptance of the late Bid is in the best interests of the Authorized Users. Bids submitted for continuous or periodic recruitment contract awards must meet the submission requirements associated with their specifications. Delays in United States mail deliveries or any other means of transmittal, including couriers or agents of the Authorized User shall not excuse late Bid submissions. Similar types of delays, including but not limited to, bad weather, or security procedures for parking and building admittance shall not excuse late Bid submissions. Determinations relative to Bid timeliness shall be at the sole discretion of the Commissioner.

12. BID CONTENTS Bids must be complete and legible. All Bids must be signed. All information required by the Bid Specifications must be supplied by the Bidder on the forms or in the format specified. No alteration, erasure or addition is to be made to the Bid Documents. Changes may be ignored by the Commissioner or may be grounds for rejection of the Bid. Changes, corrections and/or use of white-out in the Bid or Bidder’s response portion of the Bid Document must be initialed by an authorized representative of the Bidder. Bidders are cautioned to verify their Bids before submission, as amendments to Bids or requests for withdrawal of Bids received by the Commissioner after the time specified for the Bid opening, may not be considered.

13. EXTRANEOUS TERMS Bids must conform to the terms set forth in the Bid Documents, as extraneous terms or material deviations (including additional, inconsistent, conflicting or alternative terms) may render the Bid non-responsive and may result in rejection of the Bid.

Extraneous term(s) submitted on standard, pre-printed forms (including but not limited to: product literature, order forms, license agreements, contracts or other documents) that are attached or referenced with submissions shall not be considered part of the Bid or

resulting Contract, but shall be deemed included for informational or promotional purposes only.

Only those extraneous terms that meet all the following requirements may be considered as having been submitted as part of the Bid:

a. Each proposed extraneous term (addition, deletion, counter-offer, deviation, or modification) must be specifically enumerated in a writing which is not part of a pre-printed form; and

b. The writing must identify the particular specification requirement (if any) that Bidder rejects or proposes to modify by inclusion of the extraneous term; and

c. The Bidder shall enumerate the proposed addition, counter offer, modification or deviation from the Bid Document, and the reasons therefore.

No extraneous term(s), whether or not deemed “material,” shall be incorporated into a Contract or Purchase Order unless submitted in accordance with the above and the Commissioner or Authorized User expressly accepts each such term(s) in writing. Acceptance and/or processing of the Bid shall not constitute such written acceptance of Extraneous Term(s).

14. CONFIDENTIAL/TRADE SECRET MATERIALSa. Contractor Confidential, trade secret or proprietary materials as defined by the laws of the State of New York must be clearly marked and identified as such upon submission by the Bidder. Marking the Bid as “confidential” or “proprietary” on its face or in the document header or footer shall not be considered by the Commissioner or Authorized User to be sufficient without specific justification as to why disclosure of particular information in the Bid would cause substantial injury to the competitive position of the Bidder. Bidders/Contractors intending to seek an exemption from disclosure of these materials under the Freedom of Information Law must request the exemption in writing, setting forth the reasons for the claimed exemption. Acceptance of the claimed materials does not constitute a determination on the exemption request, which determination will be made in accordance with statutory procedures. Properly identified information that has been designated confidential, trade secret, or proprietary by the Bidder will not be disclosed except as may be required by the Freedom of Information Law or other applicable State and federal laws.

b. Commissioner or Authorized User Contractor further warrants, covenants and represents that any confidential information obtained by Contractor, its agents, Subcontractors, officers, distributors, resellers or employees in the course of performing its obligations, including without limitation, security procedures, business operations information, or commercial proprietary information in the possession of the State or any Authorized User hereunder or received from another third party, will not be divulged to any third parties. Contractor shall not be required to keep confidential any such material that is publicly available through no fault of Contractor, independently developed by Contractor without reliance on confidential information of the Authorized User, or otherwise obtained under the Freedom of Information Act or other applicable New York State laws and regulations. This warranty shall survive termination of this Contract. Contractor further agrees to take appropriate steps as to its agents, Subcontractors, officers, distributors, resellers or employees regarding the obligations arising under this clause to insure such confidentiality.

15. RELEASE OF BID EVALUATION MATERIALS Requests concerning the evaluation of Bids may be submitted under the

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Freedom of Information Law. Information, other than statistical or factual tabulations or data such as the Bid Tabulation, shall only be released as required by law after Contract award. Bid Tabulations are not maintained for all procurements. Names of Bidders may be disclosed after Bid opening upon request. Written requests should be directed to the Commissioner.

16. FREEDOM OF INFORMATION LAW During the evaluation process, the content of each Bid will be held in confidence and details of any Bid will not be revealed (except as may be required under the Freedom of Information Law or other State law). The Freedom of Information Law provides for an exemption from disclosure for trade secrets or information the disclosure of which would cause injury to the competitive position of commercial enterprises. This exception would be effective both during and after the evaluation process. If the Bid contains any such trade secret or other confidential or proprietary information, it must be accompanied in the Bid with a written request to the Commissioner to not disclose such information. Such request must state with particularity the reasons why the information should not be available for disclosure and must be provided at the time of submission of the Bid. Notations in the header, footer or watermark of the Bid Document will not be considered sufficient to constitute a request for non-disclosure of trade secret or other confidential or proprietary information. Where a Freedom of Information request is made for trademark or other confidential or proprietary information, the Commissioner reserves the right to determine upon written notice to the Bidder whether such information qualifies for the exemption for disclosure under the law. Notwithstanding the above, where a Bid tabulation is prepared and Bids publicly opened, such Bid tabulation shall be available upon request.

17. PREVAILING WAGE RATES - PUBLIC WORKS AND BUILDING SERVICES CONTRACTS If any portion of work being Bid is subject to the prevailing wage rate provisions of the Labor Law, the following shall apply:

a. “Public Works” and “Building Services” - Definitionsi. Public Works Labor Law Article 8 applies to contracts for

public improvement in which laborers, workers or mechanics are employed on a “public works” project (distinguished from public “procurement” or “service” contracts). The State, a public benefit corporation, a municipal corporation (including a school district), or a commission appointed by law must be a party to the Contract. The wage and hours provision applies to any work performed by Contractor or Subcontractors.

ii. Building Services Labor Law Article 9 applies to Contracts for building service work over $1,500 with a public agency, that: (i) involve the care or maintenance of an existing building, or (ii) involve the transportation of office furniture or equipment to or from such building, or (iii) involve the transportation and delivery of fossil fuel to such building, and (iv) the principal purpose of which is to furnish services through use of building service employees.

b. Prevailing Wage Rate Applicable to Bid Submissions A copy of the applicable prevailing wage rates to be paid or provided are annexed to the Bid Documents. Bidders must submit Bids which are based upon the prevailing hourly wages, and supplements in cash or equivalent benefits (i.e., fringe benefits and any cash or non-cash compensation which are not wages, as defined by law) that equal or exceed the applicable prevailing wage rate(s) for the location where the work is to be performed. Bidders may not submit Bids based upon hourly wage rates and supplements below the applicable prevailing wage rates as established by the New York State Department of Labor. Bids that fail to comply with this requirement will be disqualified.

c. Wage Rate Payments / Changes During Contract Term The wages to be paid under any resulting Contract shall not be less than the prevailing rate of wages and supplements as set forth by law. It is required that the Contractor keep informed of all changes in the Prevailing Wage Rates during the Contract term that apply to the classes of individuals supplied by the Contractor on any projects resulting from this Contract, subject to the provisions of the Labor Law. Contractor is solely liable for and must pay such required prevailing wage adjustments during the Contract term as required by law.

d. Public Posting & Certified Payroll Records In compliance with Article 8, Section 220 of the New York State Labor Law:

i. Posting The Contractor must publicly post on the work site, in a prominent and accessible place, a legible schedule of the prevailing wage rates and supplements.

ii. Payroll Records Contractors and Subcontractors must keep original payrolls or transcripts subscribed and affirmed as true under the penalties of perjury as required by law. For public works contracts over $25,000 where the Contractor maintains no regular place of business in New York State, such records must be kept at the work site. For building services contracts, such records must be kept at the work site while work is being performed.

iii. Submission of Certified Payroll Transcripts for Public Works Contracts Only Contractors and Subcontractors on public works projects must submit monthly payroll transcripts to the Authorized User that has prepared or directs the preparation of the plans and specifications for a public works project, as set forth in the Bid Specifications. For Mini-Bid solicitations, the payroll records must be submitted to the entity preparing the agency Mini-Bid project specification. For “agency specific” Bids, the payroll records should be submitted to the entity issuing the purchase order. For all other OGS Centralized Contracts, such records should be submitted to the individual agency issuing the purchase order(s) for the work. Upon mutual agreement of the Contractor and the Authorized User, the form of submission may be submitted in a specified disk format acceptable to the Department of Labor provided: 1) the Contractor/Subcontractor retains the original records; and, (2) an original signed letter by a duly authorized individual of the Contractor or Subcontractor attesting to the truth and accuracy of the records accompanies the disk. This provision does not apply to Article 9 of the Labor Law building services contracts.

iv. Records Retention Contractors and Subcontractors must preserve such certified transcripts for a period of three years from the date of completion of work on the awarded contract.

Day’s Labor Eight hours shall constitute a legal day's work for all classes of employees in this state except those engaged in farm and domestic service unless otherwise provided by law.

No laborers, workmen or mechanics in the employ of the Contractor, Subcontractor or other person doing or contracting to do all or part of the work contemplated by the Contract shall be permitted or required to work more than eight hours in any one calendar day or more than five calendar days in any one week except in cases of extraordinary emergency including fire, flood or danger to life or property. “Extraordinary emergency” shall be deemed to include situations in which sufficient laborers, workers and mechanics cannot be employed to carry on public work expeditiously as a result of such restrictions upon the number of hours and days of labor and the immediate commencement or prosecution or completion without undue delay of the public work is necessary in the judgment of the NYS

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Commissioner of Labor for the preservation of the Contract site or for the protection of the life and limb of the persons using the Contract site.

18. TAXESa. Unless otherwise specified in the Bid Specifications or Contract, the quoted Bid price includes all taxes applicable to the transaction.

b. Purchases made by the State of New York and certain non-State Authorized Users are exempt from New York State and local sales taxes and, with certain exceptions, federal excise taxes. To satisfy the requirements of the New York State Sales tax exemption, either the Purchase Order issued by a State Agency or the invoice forwarded to authorize payment for such purchases will be sufficient evidence that the sale by the Contractor was made to the State, an exempt organization under Section 1116 (a) (1) of the Tax Law. Non-State Authorized Users must offer their own proof of exemption upon request. No person, firm or corporation is, however, exempt from paying the State Truck Mileage and Unemployment Insurance or Federal Social Security taxes, which remain the sole responsibility of the Bidder/Contractor.

c. Pursuant to Revised Tax Law 5-a, Contractor will be required to furnish sales tax certification on its behalf and for its affiliates, and subcontractors for Contracts with a value greater than $100,000 in accordance with provisions of the law.

d. Purchases by Authorized Users other than the State of New York may be subject to certain taxes which were not included in the Bid

price, and in those instances the tax should be computed based on the Contract price and added to the invoice submitted to such entity for

payment.

19. EXPENSES PRIOR TO CONTRACT EXECUTION The Commissioner and any Authorized User(s) are not liable for any costs incurred by a Vendor, Bidder or Contractor in the preparation and production of a Bid, Mini-Bid or best and final offers or for any work performed prior to Contract execution.

20. ADVERTISING RESULTS The prior written approval of the Commissioner is required in order for results of the Bid to be used by the Contractor as part of any commercial advertising. The Contractor shall also obtain the prior written approval of the Commissioner relative to the Bid or Contract for press or other media releases.

21. PRODUCT REFERENCESa. “Or Equal ” In all Bid Specifications the words “or equal” are understood to apply where a copyrighted, brand name, trade name, catalog reference, or patented Product is referenced. References to such specific Product are intended as descriptive, not restrictive, unless otherwise stated. Comparable Product will be considered if proof of compatibility is provided, including appropriate catalog excerpts, descriptive literature, specifications and test data, etc. The Commissioner’s decision as to acceptance of the Product as equal shall be final.

b. Discrepancies in References In the event of a discrepancy between the model number referenced in the Bid Specifications and the written description of the Products which cannot be reconciled, with respect to such discrepancy, then the written description shall prevail.

22. REMANUFACTURED, RECYCLED, RECYCLABLE OR RECOVERED MATERIALS Upon the conditions specified in the Bid Specifications and in accordance with the laws of the State of New York, Contractors are encouraged to use recycled, recyclable or

recovered materials in the manufacture of Products and packaging to the maximum extent practicable without jeopardizing the performance or intended end use of the Product or packaging unless such use is precluded due to health, welfare, safety requirements or in the Bid Specifications. Contractors are further encouraged to offer remanufactured Products to the maximum extent practicable without jeopardizing the performance or intended end use of the Product and unless such use is precluded due to health, welfare, safety requirements or by the Bid Specifications. Where such use is not practical, suitable, or permitted by the Bid Specifications, Contractor shall deliver new materials in accordance with the “Warranties" set forth below.

Items with recycled, recyclable, recovered, refurbished or remanufactured content must be identified in the Bid or Bidder will be deemed to be offering new Product.

23. PRODUCTS MANUFACTURED IN PUBLIC INSTITUTIONS Bids offering Products that are manufactured or produced in public institutions will be rejected.

24. PRICINGa. Unit Pricing If required by the Bid Specifications, the Bidder should insert the price per unit specified and the price extensions in decimals, not to exceed four places for each item unless otherwise specified, in the Bid. In the event of a discrepancy between the unit price and the extension, the unit price shall govern unless, in the sole judgment of the Commissioner, such unit pricing is obviously erroneous.

b. Net Pricing Unless otherwise required by the Bid Specifications, prices shall be net, including transportation, customs, tariff, delivery and other charges fully prepaid by the Contractor to the destination(s) indicated in the Bid Specifications, subject to the cash discount.

c. “No Charge” Bid When Bids are requested on a number of Products as a Group or Lot, a Bidder desiring to Bid “no charge” on a Product in the Group or Lot must clearly indicate such. Otherwise, such Bid may be considered incomplete and be rejected, in whole or in part, at the discretion of the Commissioner.

d. Educational Pricing All Products to be supplied for educational purposes that are subject to educational discounts shall be identified in the Bid and such discounts shall be made available to qualifying institutions.

e. Third Party Financing If Product acquisitions are financed through any third party financing, Contractor may be required as a condition of Contract Award to agree to the terms and conditions of a “Consent & Acknowledgment Agreement” in a form acceptable to the Commissioner.

f. Best Pricing Offer During the Contract term, if substantially the same or a smaller quantity of a Product is sold by the Contractor outside of this Contract upon the same or similar terms and conditions as that of this Contract at a lower price to a federal, state or local governmental entity, the price under this Contract, at the discretion of the Commissioner, shall be immediately reduced to the lower price.

Price decreases shall take effect automatically during the Contract term and apply to Purchase Orders submitted on or after:(i) GSA Changes: Where NYS Net Prices are based on an approved GSA Schedule, the date the approved GSA Schedule pricing decreases during the Contract term; or(ii) Commercial Price List Reductions: Where NYS Net Prices are based on a discount from Contractor’s list prices, the date Contractor

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lowers its pricing to its customers generally or to similarly situated government customers during the Contract term; or(iii) Special Offers/Promotions Generally: Where Contractor generally offers more advantageous special price promotions or special discount pricing to other customers during the Contract term for a similar quantity, and the maximum price or discount associated with such offer or promotion is better than the discount or Net Price otherwise available under this Contract, such better price or discount shall apply for similar quantity transactions under this Contract for the life of such general offer or promotion; and(iv) Special Offers / Promotions to Authorized Users : Contractor may offer Authorized Users, under either this Contract or any other Contracting vehicle, competitive pricing which is lower than the NYS Net Price set forth herein at any time during the Contract term and such lower pricing shall not be applied as a global price reduction under the Contract pursuant to the foregoing paragraph (iii).

Unless otherwise specified in the Bid Specifications, Contractor may offer lower prices or better terms (see Modification of Contract Terms) on any specific Purchase Order(s) from any Authorized User without being in conflict with, or obligation to comply on a global basis, with the terms of this clause.

g. Best and Final Prices As specified in the Bid Documents and Contract, a Contractor may be solicited at the time of issuance of a Purchase Order or Mini-Bid award for best and final pricing for the Product or service to be delivered to the Authorized User. Contractors are encouraged to reduce their pricing upon receipt of such request.

25. DRAWINGSa. Drawings Submitted With Bid When the Bid Specifications require the Bidder to furnish drawings and/or plans, such drawings and/or plans shall conform to the mandates of the Bid Documents and shall, when approved by the Commissioner, be considered a part of the Bid and of any resulting Contract. All symbols and other representations appearing on the drawings shall be considered a part of the drawing.

b. Drawings Submitted During the Contract Term Where required to develop, maintain and deliver diagrams or other technical schematics regarding the scope of work, Contractor shall do so on an ongoing basis at no additional charge, and must, as a condition of payment, update drawings and plans during the Contract term to reflect additions, alterations, and deletions. Such drawings and diagrams shall be delivered to the Authorized User’s representative.

c. Accuracy of Drawings Submitted All drawings shall be neat and professional in manner and shall be clearly labeled as to locations and type of product, connections and components. Drawings and diagrams are to be in compliance with accepted drafting standards. Acceptance or approval of such plans shall not relieve the Contractor from responsibility for design or other errors of any sort in the drawings or plans, or from its responsibility for performing as required, furnishing product, services or installation, or carrying out any other requirements of the intended scope of work.

26. SITE INSPECTION Where a site inspection is required by the Bid Specifications or Project Definition, Bidder shall be required to inspect the site, including environmental or other conditions for pre-existing deficiencies that may affect the installed Product, equipment, or environment or services to be provided and, which may affect Bidder’s ability to properly deliver, install or otherwise provide the required Product. All inquiries regarding such conditions shall be made in writing. Bidder shall be deemed to have knowledge of any deficiencies or conditions which such inspection or inquiry might have disclosed. Bidder must provide a detailed explanation with its Bid if

additional work is required under this clause in order to properly complete the delivery and installation of the required Product or provide the requested service.

27. PROCUREMENT CARD The State has entered into an agreement for purchasing card services. The Purchasing Card enables Authorized Users to make authorized purchases directly from a Contractor without processing a Purchase Orders or Purchase Authorizations. Purchasing Cards are issued to selected employees authorized to purchase for the Authorized User and having direct contact with Contractors. Cardholders can make purchases directly from any Contractor that accepts the Purchasing Card.

The Contractor shall not process a transaction for payment through the credit card clearinghouse until the purchased products have been shipped or services performed. Unless the cardholder requests correction or replacement of a defective or faulty Product in accordance with other Contract requirements, the Contractor shall immediately credit a cardholder’s account for products returned as defective or faulty.

28. SAMPLESa. Standard Samples Bid Specifications may indicate that the Product to be purchased must be equal to a standard sample on display in a place designated by the Commissioner and such sample will be made available to the Bidder for examination prior to the opening date. Failure by the Bidder to examine such sample shall not entitle the Bidder to any relief from the conditions imposed by the Bid Specifications.

b. Bidder Supplied Samples The Commissioner reserves the right to request from the Bidder/Contractor a representative sample(s) of the Product offered at any time prior to or after award of a contract. Unless otherwise instructed, samples shall be furnished within the time specified in the request. Untimely submission of a sample may constitute grounds for rejection of Bid or cancellation of the Contract. Samples must be submitted free of charge and be accompanied by the Bidder’s name and address, any descriptive literature relating to the Product and a statement indicating how and where the sample is to be returned. Where applicable, samples must be properly labeled with the appropriate Bid or Contract reference.

A sample may be held by the Commissioner during the entire term of the Contract and for a reasonable period thereafter for comparison with deliveries. At the conclusion of the holding period the sample, where feasible, will be returned as instructed by the Bidder, at the Bidder’s expense and risk. Where the Bidder has failed to fully instruct the Commissioner as to the return of the sample (i.e., mode and place of return, etc.) or refuses to bear the cost of its return, the sample shall become the sole property of the receiving entity at the conclusion of the holding period.

c. Enhanced Samples When an approved sample exceeds the minimum specifications, all Product delivered must be of the same enhanced quality and identity as the sample. Thereafter, in the event of a Contractor’s default, the Commissioner may procure a Product substantially equal to the enhanced sample from other sources, charging the Contractor for any additional costs incurred.

d. Conformance with Sample(s) Submission of a sample (whether or not such sample is tested by, or for, the Commissioner) and approval thereof shall not relieve the Contractor from full compliance with all terms and conditions, performance related and otherwise, specified in the Bid Specifications. If in the judgment of the Commissioner the sample or product submitted is not in accordance

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with the specifications or testing requirements prescribed in the Bid Specifications, the Commissioner may reject the Bid. If an award has been made, the Commissioner may cancel the Contract at the expense of the Contractor.

e. Testing All samples are subject to tests in the manner and place designated by the Commissioner, either prior to or after Contract award. Unless otherwise stated in the Bid Specifications, Bidder samples consumed or rendered useless by testing will not be returned to the Bidder. Testing costs for samples that fails to meet Contract requirements may be at the expense of the Contractor.

f. Requests For Samples By Authorized Users Requests for samples by Authorized Users require the consent of the Contractor. Where Contractor refuses to furnish a sample, Authorized User may, in its sole discretion, make a determination on the performance capability of the Product or on the issue in question.

BID EVALUATION

29. BID EVALUATION The Commissioner reserves the right to accept or reject any and all Bids, or separable portions of offers, and waive technicalities, irregularities, and omissions if the Commissioner determines the best interests of the State will be served. The Commissioner, in his/her sole discretion, may accept or reject illegible, incomplete or vague Bids and his/her decision shall be final. A conditional or revocable Bid which clearly communicates the terms or limitations of acceptance may be considered, and Contract award may be made in compliance with the Bidder’s conditional or revocable terms in the offer.

30. CONDITIONAL BID Unless the Bid Specifications provides otherwise, a Bid is not rendered non-responsive if the Bidder specifies that the award will be accepted only on all or a specified group of items or Product included in the specification. It is understood that nothing herein shall be deemed to change or alter the method of award contained in the Bid Documents.

31. CLARIFICATIONS / REVISIONS Prior to award, the Commissioner reserves the right to seek clarifications, request Bid revisions, or to request any information deemed necessary for proper evaluation of Bids from all Bidders deemed to be eligible for Contract award. Failure to provide requested information may result in rejection of the Bid.

32. PROMPT PAYMENT DISCOUNTS While prompt payment discounts will not be considered in determining the low Bid, the Commissioner may consider any prompt payment discount in resolving Bids which are otherwise tied. However, any notation indicating that the price is net, (e.g., net 30 days), shall be understood to mean only that no prompt payment discount is offered by the Bidder. The imposition of service, interest, or other charges, except pursuant to the provisions of Article 11-A of the State Finance Law, which are applicable in any case, may render the Bid non-responsive and may be cause for its rejection.

33. EQUIVALENT OR IDENTICAL BIDS In the event two offers are found to be substantially equivalent, price shall be the basis for determining the award recipient. If two or more Bidders submit substantially equivalent Bids as to pricing or other factors, the decision of the Commissioner to award a Contract to one or more of such Bidders shall be final.

34. PERFORMANCE AND RESPONSIBILITY QUALIFICATIONS The Commissioner reserves the right to

investigate or inspect at any time whether or not the Product, services, qualifications or facilities offered by the Bidder/Contractor meet the requirements set forth in the Bid Specifications/Contract or as set forth during Contract negotiations. Contractor shall at all times during the Contract term remain responsible and responsive. A Bidder/Contractor must be prepared, if requested by the Commissioner, to present evidence of legal authority to do business in New York State, integrity, experience, ability, prior performance, organizational and financial capacity as well as where applicable, a statement as to supply, plant, machinery and capacity of the manufacturer or source for the production, distribution and servicing of the Product offered/Bid. If the Commissioner determines that the conditions and terms of the Bid Documents, Bid Specifications or Contract are not complied with, or that items, services or Product proposed to be furnished do not meet the specified requirements, or that the legal authority, integrity experience, ability, prior performance, organization and financial capacity or facilities are not satisfactory, the Commissioner may reject such Bid or terminate the Contract.

35. DISQUALIFICATION FOR PAST PERFORMANCE AND FINDINGS OF NON-RESPONSIBILITY Bidder may be disqualified from receiving awards if Bidder, or anyone in Bidder’s employment, has previously failed to perform satisfactorily in connection with public Bidding or contracts or is deemed non-responsible.

36. QUANTITY CHANGES PRIOR TO AWARD The Commissioner reserves the right, at any time prior to the award of a specific quantity Contract, to alter in good faith the quantities listed in the Bid Specifications. In the event such right is exercised, the lowest responsible Bidder meeting Bid Specifications will be advised of the revised quantities and afforded an opportunity to extend or reduce its Bid price in relation to the changed quantities. Refusal by the low Bidder to so extend or reduce its Bid price may result in the rejection of its Bid and the award of such Contract to the lowest responsible Bidder who accepts the revised qualifications.

37. TIMEFRAME FOR OFFERS The Commissioner reserves the right to make awards within sixty (60) days after the date of the Bid opening or such other period of time as set forth in the Bid Documents, during which period, Bids must remain firm and cannot e withdrawn. Pursuant to Section 163(9)(e) of the State Finance Law and Section 2-205 of the Uniform Commercial Code when applicable, where an award is not made within the sixty (60) day period or other time specified as set forth in the Bid Documents, the Bids shall remain firm until such later time as either a Contract is awarded or the Bidder delivers to the Commissioner written notice of the withdrawal of its Bid. Any Bid which expressly states therein that acceptance must be made within a shorter specified time, may at the sole discretion of the Commissioner, be accepted or rejected.

TERMS & CONDITIONS

38. CONTRACT CREATION / EXECUTION Except for contracts governed by Article 11-B of the State Finance Law, subject to and upon receipt of all required approvals as set forth in the Bid Specifications a Contract shall be deemed executed and created with the successful Bidder(s), upon the Commissioner’s mailing or electronic communication to the address on the Bid/Contract of: (i) the final Contract Award Notice; (ii) a fully executed Contract; or (iii) a Purchase Order authorized by the Commissioner.

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39. PARTICIPATION IN CENTRALIZED CONTRACTS The following shall not limit or inhibit the OGS Commissioner’s authority under State Finance Law, Section 163 (10) (e) (Piggybacking):

a. Agencies All State Agencies may utilize and purchase under any state Centralized Contract let by the Commissioner, unless the Bid Documents limit purchases to specific State Agencies.

b. Non-State Agency Authorized Users Authorized Users other than State Agencies are permitted to make purchases through state Centralized Contracts where permitted by law, the Contract or the Commissioner.

c. Voluntary Extension Purchase Orders issued against a State Centralized Contract by any Authorized User not provided for in the Bid Specifications shall be honored by the Contractor at its discretion and only with the approval of the OGS Commissioner and any other approvals required by law. Contractors are encouraged to voluntarily extend service Contracts to those additional entities authorized to utilize commodity Contracts under Section 163 (3) (iv) of the State Finance Law.

d. Responsibility for Performance Participation in state Centralized Contracts by Authorized Users is permitted upon the following conditions: (i) the responsibility with regard to performance of any contractual obligation, covenant, condition or term thereunder by any Authorized User other than State Agencies shall be borne and is expressly assumed by such Authorized User and not by the State; (ii) a breach of the Contract by any particular Authorized User shall neither constitute nor be deemed a breach of the Contract as a whole which shall remain in full force and effect, and shall not affect the validity of the Contract nor the obligations of the Contractor thereunder respecting non-breaching Authorized Users, whether State or otherwise; (iii) for a breach by an Authorized User other than a State Agency, the State specifically and expressly disclaims any and all liability for such breach; and (iv) each non-state agency Authorized User and Contractor guarantees to save the State, its officers, agents and employees harmless from any liability that may be or is imposed by their failure to perform in accordance with its obligations under the Contract.

e. Contract Migration Authorized Users holding individual Contracts with a Contractor at the time that Contractor is awarded a Centralized Contract for the same Products or services shall be permitted to migrate to that Centralized Contract effective with its commencement date. Such migration shall not operate to diminish, alter or eliminate any right that the Authorized User otherwise had under the terms and conditions of their individual Contract.

40. MODIFICATION OF CONTRACT TERMS The terms and conditions set forth in the Contract shall govern all transactions by Authorized User(s) under this Contract. The Contract may only be modified or amended upon mutual written agreement of the Commissioner and Contractor.

The Contractor may, however, offer Authorized User(s) more advantageous pricing, payment, or other terms and conditions than those set forth in the Contract. In such event, a copy of such terms shall be furnished to the Authorized User(s) and Commissioner by the Contractor at the time of such offer.

Other than where such terms are more advantageous for the Authorized User(s) than those set forth in the Contract, no alteration or modification of the terms of the Contract, including substitution of Product, shall be valid or binding against Authorized User(s) unless authorized by the Commissioner or specified in the Contract Award

Notification. No such alteration or modification shall be made by unilaterally affixing such terms to Product upon delivery (including, but not limited to, attachment or inclusion of standard pre-printed order forms, product literature, “shrink wrap” terms accompanying software upon delivery, or other documents) or by incorporating such terms onto order forms, purchase orders or other documents forwarded by the Contractor for payment, notwithstanding Authorized User’s subsequent acceptance of Product, or that Authorized User has subsequently processed such document for approval or payment.

41. SCOPE CHANGES The Commissioner reserves the right, unilaterally, to require, by written order, changes by altering, adding to or deducting from the Bid Specifications, such changes to be within the general scope of the Contract. The Commissioner may make an equitable adjustment in the Contract price or delivery date if the change affects the cost or time of performance. Such equitable adjustments require the consent of the Contractor, which consent shall not be unreasonably withheld.

42. ESTIMATED / SPECIFIC QUANTITY CONTRACTS Estimated quantity contracts are expressly agreed and understood to be made for only the quantities, if any, actually ordered during the Contract term. No guarantee of any quantity(s) is implied or given. Purchases by Authorized Users from Contracts for services and technology are voluntary.

With respect to any specific quantity stated in the contract, the Commissioner reserves the right after award to order up to 20% more or less (rounded to the next highest whole number) than the specific quantities called for in the Contract. Notwithstanding the foregoing, the Commissioner may purchase greater or lesser percentages of Contract quantities should the Commissioner and Contractor so agree. Such agreement may include an equitable price adjustment.

43. EMERGENCY CONTRACTS In the event that a disaster emergency is declared by Executive Order under Section 28 of Article 2-B of the Executive Law, or the Commissioner determines pursuant to his/her authority under Section 163 (10) (b) of the State Finance Law that an emergency exists requiring the prompt and immediate delivery of Product, the Commissioner reserves the right to obtain such Product from any source, including but not limited to this Contract(s), as the Commissioner in his/her sole discretion determines will meet the needs of such emergency. Contractor shall not be entitled to any claim or lost profits for Product procured from other sources pursuant to this paragraph. The reasons underlying the finding that an emergency exists shall be included in the procurement record.

44. PURCHASE ORDERS Unless otherwise authorized in writing by the Commissioner, no Product is to be delivered or furnished by Contractor until transmittal of an official Purchase Order from the Authorized User. Unless terminated or cancelled pursuant to the authority vested in the Commissioner, Purchase Orders shall be effective and binding upon the Contractor when placed in the mail or electronically transmitted prior to the termination of the contract period, addressed to the Contractor at the address for receipt of orders set forth in the Contract or in the Contract Award Notification.

All Purchase Orders issued pursuant to Contracts let by the Commissioner must bear the appropriate Contract number and, if necessary, required State approvals. As deemed necessary, the Authorized User may confirm pricing and other Product information with the Contractor prior to placement of the Purchase Order. The State reserves the right to require any other information from the Contractor which the State deems necessary in order to complete any Purchase Order placed under the Contract. Unless otherwise specified, all Purchase Orders against Centralized Contracts will be placed by

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Authorized Users directly with the Contractor and any discrepancy between the terms stated on the vendor’s order form, confirmation or acknowledgment, and the Contract terms shall be resolved in favor of the terms most favorable to the Authorized User. Should an Authorized User add written terms and conditions to the Purchase Order that conflict with the terms and conditions of the Contract, the Contractor has the option of rejecting the Purchase Order within five business days of its receipt but shall first attempt to negotiate the additional written terms and conditions in good faith with the Authorized User, or fulfill the Purchase Order. Notwithstanding the above, the Authorized User reserves the right to dispute any discrepancies arising from the presentation of additional terms and conditions with the Contractor.

If, with respect to an Agency Specific Contract let by the OGS Commissioner, a Purchase Order is not received by the Contractor within two weeks after the issuance of a Contract Award Notification, it is the responsibility of the Contractor to request in writing that the appropriate Authorized User forward a Purchase Order. If, thereafter, a Purchase Order is not received within a reasonable period of time, the Contractor shall promptly notify in writing the appropriate purchasing officer in OGS. Failure to timely notify such officer may, in the discretion of the OGS Commissioner and without cost to the State, result in the cancellation of such requirement by the OGS Commissioner with a corresponding reduction in the Contract quantity and price.

45. PRODUCT DELIVERY Delivery must be made as ordered to the address specified on the Purchase Order and in accordance with the terms of the Contract or Contract Award Notice. Unless otherwise specified in the Bid Documents, delivery shall be made within thirty calendar days after receipt of a Purchase Order by the Contractor. The decision of the Commissioner as to compliance with delivery terms shall be final. The burden of proof for delay in receipt of Purchase Order shall rest with the Contractor. In all instances of a potential or actual delay in delivery, the Contractor shall immediately notify the Commissioner and the Authorized User, and confirm in writing the explanation of the delay, and take appropriate action to avoid any subsequent late deliveries. Any extension of time for delivery must be requested in writing by the Contractor and approved in writing by the Authorized User. Failure to meet such delivery time schedule may be grounds for cancellation of the order or, in the Commissioner’s discretion, the Contract.

46. WEEKEND AND HOLIDAY DELIVERIES Unless otherwise specified in the Bid Specifications or by an Authorized User, deliveries will be scheduled for ordinary business hours, Monday through Friday (excluding legal holidays observed by the State of New York). Deliveries may be scheduled by mutual agreement for Saturdays, Sundays or legal holidays observed by the State of New York where the Product is for daily consumption, an emergency exists, the delivery is a replacement, delivery is late, or other reasonable circumstance in which event the convenience of the Authorized User shall govern.

47. SHIPPING/RECEIPT OF PRODUCTa. Packaging Tangible Product shall be securely and properly packed for shipment, storage and stocking in appropriate, clearly labeled shipping containers and according to accepted commercial practice, without any extra charges for packing materials, cases or other types of containers. The container shall become and remain the property of the Authorized User unless otherwise specified in the Contract documents.

b. Shipping Charges Unless otherwise stated in the Bid Specifications, all deliveries shall be deemed to be freight on board (F.O.B.) destination tailgate delivery at the dock of the Authorized

User. Unless otherwise agreed, items purchased at a price F.O.B. Shipping point plus transportation charges shall not relieve the Contractor from responsibility for safe and proper delivery notwithstanding the Authorized User’s payment of transportation charges. Contractor shall be responsible for ensuring that the Bill of Lading states “charges prepaid” for all shipments.

c. Receipt of Product The Contractor shall be solely responsible for assuring that deliveries are made to personnel authorized to accept delivery on behalf of the Authorized User. Any losses resulting from the Contractor’s failure to deliver Product to authorized personnel shall be borne exclusively by the Contractor.

48. TITLE AND RISK OF LOSS Notwithstanding the form of shipment, title or other property interest, risk of loss shall not pass from the Contractor to the Authorized User until the Products have been received, inspected and accepted by the receiving entity. Acceptance shall occur within a reasonable time or in accordance with such other defined acceptance period as may be specified in the Bid Specifications or Purchase Order. Mere acknowledgment by Authorized User personnel of the delivery or receipt of goods (e.g., signed bill of lading) shall not be deemed or construed as acceptance of the Products received. Any delivery of Product that is substandard or does not comply with the Bid Specifications or Contract terms and conditions, may be rejected or accepted on an adjusted price basis, as determined by the Commissioner.

49. RE-WEIGHING PRODUCT Deliveries are subject to re-weighing at the point of destination by the Authorized User. If shrinkage occurs which exceeds that normally allowable in the trade, the Authorized User shall have the option to require delivery of the difference in quantity or to reduce the payment accordingly. Such option shall be exercised in writing by the Authorized User.

50. PRODUCT SUBSTITUTION In the event a specified manufacturer’s Product listed in the Contract becomes unavailable or cannot be supplied by the Contractor for any reason (except as provided for in the Savings/Force Majeure Clause) a Product deemed in writing by the Commissioner to be equal to or better than the specified Product must be substituted by the Contractor at no additional cost or expense to the Authorized User. Unless otherwise specified, any substitution of Product prior to the Commissioner’s written approval may be cause for cancellation of Contract.

51. REJECTED PRODUCT When Product is rejected, it must be removed by the Contractor from the premises of the Authorized User within ten calendar days of notification of rejection by the Authorized User. Upon notification of rejection, risk of loss of rejected or non-conforming Product shall remain with Contractor. Rejected items not removed by the Contractor within ten calendar days of notification shall be regarded as abandoned by the Contractor, and the Authorized User shall have the right to dispose of Product as its own property. The Contractor shall promptly reimburse the Authorized User for any and all costs and expenses incurred in storage or effecting removal or disposition after the ten-calendar day period.

52. INSTALLATION Where installation is required, Contractor shall be responsible for placing and installing the Product in the required locations. All materials used in the installation shall be of good quality and shall be free from any and all defects that would mar the appearance of the Product or render it structurally unsound. Installation includes the furnishing of any equipment, rigging and materials required to install or place the Product in the proper location. The Contractor shall protect the site from damage for all its work and shall repair damages or injury of any kind caused by the Contractor, its employees, officers or agents. If any alteration, dismantling or

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excavation, etc. is required to effect installation, the Contractor shall thereafter promptly restore the structure or site. Work shall be performed to cause the least inconvenience to the Authorized User(s) and with proper consideration for the rights of other Contractors or workers. The Contractor shall promptly perform its work and shall coordinate its activities with those of other Contractors. The Contractor shall clean up and remove all debris and rubbish from its work as required or directed. Upon completion of the work, the building and surrounding area of work shall be left clean and in a neat, unobstructed condition, and everything in satisfactory repair and order.

53. REPAIRED OR REPLACED PARTS / COMPONENTS Where the Contractor is required to repair, replace or substitute Product or parts or components of the Product under the Contract, the repaired, replaced or substituted Products shall be subject to all terms and conditions for new parts and components set forth in the Contract including Warranties, as set forth in the Additional Warranties Clause herein. Replaced or repaired Product or parts and components of such Product shall be new and shall, if available, be replaced by the original manufacturer’s component or part. Remanufactured parts or components meeting new Product standards may be permitted by the Commissioner or Authorized User. Before installation, all proposed substitutes for the original manufacturer’s installed parts or components must be approved by the Authorized User. The part or component shall be equal to or of better quality than the original part or component being replaced.

54. ON-SITE STORAGE With the written approval of the Authorized User, materials, equipment or supplies may be stored at the Authorized User’s site at the Contractor’s sole risk.

55. EMPLOYEES, SUBCONTRACTORS & AGENTS All employees, Subcontractors or agents performing work under the Contract must be trained staff or technicians who meet or exceed the professional, technical and training qualifications set forth in the Bid Specifications or the Bid Documents, whichever is more restrictive, and must comply with all security and administrative requirements of the Authorized User. The Commissioner reserves the right to conduct a security background check or otherwise approve any employee, Subcontractor or agent furnished by Contractor and to refuse access to or require replacement of any personnel for cause based on, including but not limited to, professional, technical or training qualifications, quality of work or change in security status or non-compliance with Authorized User’s security or other requirements. Such approval shall not relieve the Contractor of the obligation to perform all work in compliance with the Contract terms. The Commissioner reserves the right to reject and/or bar from the facility for cause any employee, Subcontractor, or agents of the Contractor.

56. ASSIGNMENT The Contractor shall not assign, transfer, convey, sublet, or otherwise dispose of the contract or its right, title or interest therein, or its power to execute such contract to any other person, company, firm or corporation in performance of the contract without the prior written consent of the Commissioner or Authorized User (as applicable). Failure to obtain consent to assignment from the Authorized User shall revoke and annul such Contract. Notwithstanding the foregoing, the State shall not hinder, prevent or affect assignment of money by a Contractor for the benefit of its creditors. Prior to a consent to assignment of monies becoming effective, the Contractor shall file a written notice of such monies assignment(s) with the Comptroller. Prior to a consent to assignment of a Contract, or portion thereof, becoming effective, the Contractor shall submit the request to assignment to the Commissioner and seek written agreement from the Commissioner which will be filed with the Comptroller. The Commissioner reserves the right to reject any proposed assignee in his/her discretion.

Upon notice to the Contractor, the Contract may be assigned without the consent of the Contractor to another State Agency or subdivision of the State pursuant to a governmental reorganization or assignment of functions under which the functions are transferred to a successor Agency or to another Agency that assumes OGS responsibilities for the Contract.

57. SUBCONTRACTORS AND SUPPLIERS The Commissioner reserves the right to reject any proposed Subcontractor or supplier for bona fide business reasons, which may include, but are not limited to: they are on the Department of Labor’s list of companies with which New York State cannot do business; the Commissioner determines that the company is not qualified; the Commissioner determines that the company is not responsible; the company has previously provided unsatisfactory work or services; the company failed to solicit minority and women’s business enterprises (M/WBE) Bidders as required by prior Contracts.

58. PERFORMANCE / BID BOND The Commissioner reserves the right to require a Bidder or Contractor to furnish without additional cost, a performance, payment or Bid bond or negotiable irrevocable letter of credit or other form of security for the faithful performance of the Contract. Where required, such bond or other security shall be in the form prescribed by the Commissioner.

59. SUSPENSION OF WORK The Commissioner, in his/her sole discretion, reserves the right to suspend any or all activities under this Contract, at any time, in the best interests of the Authorized User. In the event of such suspension, the Contractor will be given a formal written notice outlining the particulars of such suspension. Examples of the reason for such suspension include, but are not limited to, a budget freeze or reduction on State spending, declaration of emergency, contract compliance issues or other such circumstances. Upon issuance of such notice, the Contractor is not to accept any Purchase Orders, and shall comply with the suspension order. Activity may resume at such time as the Commissioner issues a formal written notice authorizing a resumption of performance under the Contract.

An Authorized User may issue a formal written notice for the suspension of work for which it has engaged the Contractor for reasons specified in the above paragraph. The written notice shall set forth the reason for such suspension and a copy of the written notice shall be provided to the Commissioner.

60. TERMINATIONa. For Cause: For a material breach that remains uncured for more than thirty (30) days or other specified period after written notice to the Contractor, the Contract or Purchase Order may be terminated by the Commissioner or Authorized User at the Contractor’s expense where Contractor becomes unable or incapable of performing, or meeting any requirements or qualifications set forth in the Contract, or for non-performance, or upon a determination that Contractor is non-responsible. Such termination shall be upon written notice to the Contractor. In such event, the Commissioner or Authorized User may complete the contractual requirements in any manner it may deem advisable and pursue available legal or equitable remedies for breach.

b. For Convenience: By written notice, this Contract may be terminated at any time by the State for convenience upon sixty (60) days written notice or other specified period without penalty or other early termination charges due. Such termination of the Contract shall not affect any project or Purchase Order that has been issued under the Contract prior to the date of such termination. If the Contract is terminated pursuant to this subdivision, the Authorized User shall remain liable for all accrued but unpaid charges incurred through the

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date of the termination. Contractor shall use due diligence and provide any outstanding deliverables.

c. For Violation of the Sections 139-j and 139-k of the State Finance Law: The Commissioner reserves the right to terminate the Contract in the event it is found that the certification filed by the Bidder in accordance with Section 139-k of the State Finance Law was intentionally false or intentionally incomplete. Upon such finding, the Commissioner may exercise its termination right by providing written notification to the Contractor in accordance with the written notification terms of the Contract.

d. For Violation of Revised Tax Law 5a: The Commissioner reserves the right to terminate the contract in the event it is found that the certification filed by the Contractor in accordance with §5-a of the Tax Law is not timely filed during the term of the Contract or the certification furnished was intentionally false or intentionally incomplete. Upon such finding, the Commissioner may exercise its termination right by providing written notification to the Contractor.

61. SAVINGS/FORCE MAJEURE A force majeure occurrence is an event or effect that cannot be reasonably anticipated or controlled. Force majeure includes, but is not limited to, acts of God, acts of war, acts of public enemies, strikes, fires, explosions, actions of the elements, floods, or other similar causes beyond the control of the Contractor or the Commissioner in the performance of the Contract which non- performance, by exercise of reasonable diligence, cannot be prevented. Contractor shall provide the Commissioner with written notice of any force majeure occurrence as soon as the delay is known.

Neither the Contractor nor the Commissioner shall be liable to the other for any delay in or failure of performance under the Contract due to a force majeure occurrence. Any such delay in or failure of performance shall not constitute default or give rise to any liability for damages. The existence of such causes of such delay or failure shall extend the period for performance to such extent as determined by the Contractor and the Commissioner to be necessary to enable complete performance by the Contractor if reasonable diligence is exercised after the cause of delay or failure has been removed.

Notwithstanding the above, at the discretion of the Commissioner where the delay or failure will significantly impair the value of the Contract to the State or to Authorized Users, the Commissioner may:

a. Accept allocated performance or deliveries from the Contractor. The Contractor, however, hereby agrees to grant preferential treatment to Authorized Users with respect to Product subjected to allocation; and/or

b. Purchase from other sources (without recourse to and by the Contractor for the costs and expenses thereof) to replace all or part of the Products which are the subject of the delay, which purchases may be deducted from the Contract quantities without penalty or liability to the State; or

c. Terminate the Contract or the portion thereof which is subject to delays, and thereby discharge any unexecuted portion of the Contract or the relative part thereof.

In addition, the Commissioner reserves the right, in his/her sole discretion, to make an equitable adjustment in the Contract terms and/or pricing should extreme and unforeseen volatility in the marketplace affect pricing or the availability of supply. "Extreme and unforeseen volatility in the marketplace" is defined as market circumstances which meet the following criteria: (i) the volatility is due to causes outside the control of Contractor; (ii) the volatility

affects the marketplace or industry, not just the particular Contract source of supply; (iii) the effect on pricing or availability of supply is substantial; and (iv) the volatility so affects Contractor's performance that continued performance of the Contract would result in a substantial loss.

62. CONTRACT BILLINGS Contractor and the distributors/resellers designated by the Contractor, if any, shall provide complete and accurate billing invoices to each Authorized User in order to receive payment. Billings for Authorized Users must contain all information required by the Contract and the State Comptroller. The State Comptroller shall render payment for Authorized User purchases, and such payment shall be made in accordance with ordinary State procedures and practices. Payment of Contract purchases made by Authorized Users, other than Agencies, shall be billed directly by Contractor on invoices/vouchers, together with complete and accurate supporting documentation as required by the Authorized User.

Submission of an invoice and payment thereof shall not preclude the Commissioner from reimbursement or demanding a price adjustment in any case where the Product delivered is found to deviate from the terms and conditions of the Contract or where the billing was inaccurate.

Contractor shall provide, upon request of the Commissioner, any and all information necessary to verify the accuracy of the billings. Such information shall be provided in the format requested by the Commissioner and in a media commercially available from the Contractor. The Commissioner may direct the Contractor to provide the information to the State Comptroller or to any Authorized User of the Contract.

63. DEFAULT – AUTHORIZED USERa. Breach of Authorized User Not Breach of Centralized Contract. An Authorized User’s breach shall not be deemed a breach of the Centralized Contract, rather it shall be deemed a breach of the Authorized User’s performance under the terms and conditions of the Centralized Contract.

b. Failure to Make Payment. In the event a participating Authorized User fails to make payment to the Contractor for Products delivered, accepted and properly invoiced, within 60 days of such delivery and acceptance, the Contractor may, upon 10 days advance written notice to both the Commissioner and the Authorized User’s purchasing official, suspend additional shipments of Product or provision of services to such entity until such time as reasonable arrangements have been made and assurances given by such entity for current and future Contract payments.

c. Notice of Breach. Notwithstanding the foregoing, the Contractor shall, at least 10 days prior to declaring a breach of Contract by any Authorized User, by certified or registered mail, notify both the Commissioner and the purchasing official of the breaching Authorized User of the specific facts, circumstances and grounds upon which a breach will be declared.

d. It is understood, however, that if the Contractor’s basis for declaring a breach is insufficient, the Contractor’s declaration of breach and failure to service an Authorized User shall constitute a breach of its Contract and the Authorized User may thereafter seek any remedy available at law or equity.

64. INTEREST ON LATE PAYMENTSa. State Agencies The payment of interest on certain payments due and owed by Agency may be made in accordance with Article 11-A of

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the State Finance Law (SFL §179-d et. Seq.) and Title 2 of the New York Code of Rules and Regulations, Part 18 (Implementation of Prompt Payment Legislation -2 NYCRR §18.1 et seq.).

b. By Non - State Agencies The terms of Article 11-A apply only to procurements by and the consequent payment obligations of Agencies. Neither expressly nor by any implication is the statute applicable to Non-State Authorized Users. Neither OGS nor the State Comptroller is responsible for payments on any purchases made by a Non-State Agency Authorized User.

c. By Contractor Should the Contractor be liable for any payments to the State hereunder, interest, late payment charges and collection fee charges will be determined and assessed pursuant to Section 18 of the State Finance Law.

65. REMEDIES FOR BREACH It is understood and agreed that all rights and remedies afforded below shall be in addition to all remedies or actions otherwise authorized or permitted by law:

a. Cover / Substitute Performance In the event of Contractor's material breach, the Commissioner may, with or without formally Bidding: (i) Purchase from other sources; or (ii) If the Commissioner is unsuccessful after making reasonable attempts, under the circumstances then existing, to timely obtain acceptable service or acquire replacement Product of equal or comparable quality, the Commissioner may acquire acceptable replacement Product of lesser or greater quality.

Such purchases may, in the discretion of the Commissioner, be deducted from the Contract quantity and payments due Contractor.

b. Withhold Payment In any case where a question of non-performance by Contractor arises, payment may be withheld in whole or in part at the discretion of the Commissioner. Should the amount withheld be finally paid, a cash discount originally offered may be taken as if no delay in payment had occurred.

c. Bankruptcy In the event that the Contractor files a petition under the U.S. Bankruptcy Code during the term of this Centralized Contract, Authorized Users may, at their discretion, make application to exercise its right to set-off against monies due the Debtor or, under the Doctrine of Recoupment, credit the Authorized User the amounts owed by the Contractor arising out of the same transactions.

d. Reimbursement of Costs Incurred The Contractor agrees to reimburse the Authorized User promptly for any and all additional costs and expenses incurred for acquiring acceptable services, and/or replacement Product. Should the cost of cover be less than the Contract price, the Contractor shall have no claim to the difference. The Contractor covenants and agrees that in the event suit is successfully prosecuted for any default on the part of the Contractor, all costs and expenses expended or incurred by the Authorized User in connection therewith, including reasonable attorney’s fees, shall be paid by the Contractor.

Where the Contractor fails to timely deliver pursuant to the guaranteed delivery terms of the Contract, the ordering Authorized User may rent substitute equipment temporarily. Any sums expended for such rental shall, upon demand, be reimbursed to the Authorized User promptly by the Contractor or deducted by the Authorized User from payments due or to become due the Contractor on the same or another transaction.

e. Deduction / Credit Sums due as a result of these remedies may be deducted or offset by the Authorized User from payments due, or to

become due, the Contractor on the same or another transaction. If no deduction or only a partial deduction is made in such fashion the Contractor shall pay to the Authorized User the amount of such claim or portion of the claim still outstanding, on demand. The Commissioner reserves the right to determine the disposition of any rebates, settlements, restitution, liquidated damages, etc., which arise from the administration of the Contract.

66. ASSIGNMENT OF CLAIM Contractor hereby assigns to the State any and all its claims for overcharges associated with this Contract which may arise under the antitrust laws of the United States, 15 USC Section 1, et. seq. and the antitrust laws of the State of New York, General Business Law Section 340, et. seq.

67. TOXIC SUBSTANCES Each Contractor furnishing a toxic substance as defined by Section 875 of the Labor Law, shall provide such Authorized User with not less than two copies of a material safety data sheet, which sheet shall include for each such substance the information outlined in Section 876 of the Labor Law.

Before any chemical product is used or applied on or in any building, a copy of the product label and Material Safety Data Sheet must be provided to and approved by the Authorized User agency representative.

68. INDEPENDENT CONTRACTOR It is understood and agreed that the legal status of the Contractor, its agents, officers and employees under this Contract is that of an independent Contractor, and in no manner shall they be deemed employees of the Authorized User, and therefore are not entitled to any of the benefits associated with such employment. The Contractor agrees, during the term of this Contract, to maintain at Contractor’s expense those benefits to which its employees would otherwise be entitled by law, including health benefits, and all necessary insurance for its employees, including worker’s compensation, disability and unemployment insurance, and to provide the Authorized User with certification of such insurance upon request. The Contractor remains responsible for all applicable federal, state and local taxes, and all FICA contributions.

69. SECURITY Contractor warrants, covenants and represents that it will comply fully with all security procedures of the Authorized User(s) in performance of the Contract including but not limited to physical, facility, documentary and cyber security rules, procedures and protocols.

70. COOPERATION WITH THIRD PARTIES The Contractor shall be responsible for fully cooperating with any third party, including but not limited to other Contractors or Subcontractors of the Authorized User, as necessary to ensure delivery of Product or coordination of performance of services.

71. CONTRACT TERM - RENEWAL In addition to any stated renewal periods in the Contract, any Contract or unit portion thereof let by the Commissioner may be extended by the Commissioner for an additional period(s) of up to one year with the written concurrence of the Contractor and Comptroller. Such extension may be exercised on a month to month basis or in other stated periods of time during the one year extension.

72. ADDITIONAL WARRANTIES Where Contractor, product manufacturer or service provider generally offers additional or more advantageous warranties than set forth below, Contractor shall offer or pass through any such warranties to Authorized Users. Contractor hereby warrants and represents:

a. Product Performance Contractor warrants and represents that Products delivered pursuant to this Contract conform to the

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manufacturer's specifications, performance standards and documentation, and the documentation fully describes the proper procedure for using the Products.

b. Title and Ownership Warranty Contractor warrants, represents and conveys (i) full ownership, clear title free of all liens, or (ii) the right to transfer or deliver perpetual license rights to any Products transferred to Authorized User under this Contract. Contractor shall be solely liable for any costs of acquisition associated therewith. Contractor fully indemnifies the Authorized User for any loss, damages or actions arising from a breach of said warranty without limitation.

c. Contractor Compliance Contractor represents and warrants to pay, at its sole expense, for all applicable permits, licenses, tariffs, tolls and fees to give all notices and comply with all laws, ordinances, rules and regulations of any governmental entity in conjunction with the performance of obligations under the Contract. Prior to award and during the Contract term and any renewals thereof, Contractor must establish to the satisfaction of the Commissioner that it meets or exceeds all requirements of the Bid/Contract and any applicable laws, including but not limited to, permits, insurance coverage, licensing, proof of coverage for worker’s compensation, and shall provide such proof as required by the Commissioner. Failure to do so may constitute grounds for the Commissioner to cancel or suspend this Contract, in whole or in part, or to take any other action deemed necessary by the Commissioner.

d. Product Warranty Unless recycled or recovered materials are available in accordance with the “Recycled or Recovered Materials” clause, Product offered shall be standard new equipment, current model or most recent release of regular stock product with all parts regularly used with the type of equipment offered; and no attachment or part has been substituted or applied contrary to the manufacturer’s recommendations and standard practice.

Contractor further warrants and represents that components or deliverables specified and furnished by or through Contractor shall individually, and where specified and furnished as a system, be substantially uninterrupted or error-free in operation and guaranteed against faulty material and workmanship for the warranty period, or for a minimum of one (1) year from the date of acceptance, whichever is longer (“Project warranty period”). During the Project warranty period, defects in the materials or workmanship of components or deliverables specified and furnished by or through Contractor shall be repaired or replaced by Contractor at no cost or expense to the Authorized User. Contractor shall extend the Project warranty period for individual component(s), or for the System as a whole, as applicable, by the cumulative period(s) of time, after notification, during which an individual component or the System requires servicing or replacement (down time) or is in the possession of the Contractor, its agents, officers, Subcontractors, distributors, resellers or employees (“extended warranty”).

Where Contractor, the Independent Software Vendor “ISV,” or other third party manufacturer markets any Project Deliverable delivered by or through Contractor with a standard commercial warranty, such standard warranty shall be in addition to, and not relieve the Contractor from, Contractor’s warranty obligations during the project warranty and extended warranty period(s). Where such standard commercial warranty covers all or some of the Project warranty or extended warranty period(s), Contractor shall be responsible for the coordination during the Project warranty or extended warranty period(s) with ISV or other third party manufacturer(s) for warranty repair or replacement of ISV or other third party manufacturer’s Product.

Where Contractor, ISV or other third party manufacturer markets any Project Deliverable with a standard commercial warranty which goes beyond the Project warranty or extended warranty period(s), Contractor shall notify the Authorized User and pass through the manufacturer’s standard commercial warranty to Authorized User at no additional charge; provided, however, that Contractor shall not be responsible for coordinating services under the third party extended warranty after expiration of the Project warranty and extended warranty period(s).

e. Replacement Parts Warranty If during the regular or extended warranty period’s faults develop, the Contractor shall promptly repair or, upon demand, replace the defective unit or component part affected. All costs for labor and material and transportation incurred to repair or replace defective Product during the warranty period shall be borne solely by the Contractor, and the State or Authorized User shall in no event be liable or responsible therefor.

Any part of component replaced by the Contractor under the Contract warranty shall be replaced at no cost to the Authorized User and guaranteed for the greater of: a) the warranty period under paragraph (d) above; or b) if a separate warranty for that part or component is generally offered by the manufacturer, the standard commercial warranty period offered by the manufacturer for the individual part or component.

f. Virus Warranty The Contractor represents and warrants that Licensed Software contains no known viruses. Contractor is not responsible for viruses introduced at Licensee’s site.

g. Date/Time Warranty Contractor warrants that Product(s) furnished pursuant to this Contract shall, when used in accordance with the Product documentation, be able to accurately process date/time data (including, but not limited to, calculating, comparing, and sequencing) transitions, including leap year calculations. Where a Contractor proposes or an acquisition requires that specific Products must perform as a package or system, this warranty shall apply to the Products as a system.

Where Contractor is providing ongoing services, including but not limited to: i) consulting, integration, code or data conversion, ii) maintenance or support services, iii) data entry or processing, or iv) contract administration services (e.g., billing, invoicing, claim processing), Contractor warrants that services shall be provided in an accurate and timely manner without interruption, failure or error due to the inaccuracy of Contractor’s business operations in processing date/time data (including, but not limited to, calculating, comparing, and sequencing) various date/time transitions, including leap year calculations. Contractor shall be responsible for damages resulting from any delays, errors or untimely performance resulting therefrom, including but not limited to the failure or untimely performance of such services.

This Date/Time Warranty shall survive beyond termination or expiration of this contract through: a) ninety (90) days or b) the Contractor’s or Product manufacturer/developer’s stated date/time warranty term, whichever is longer. Nothing in this warranty statement shall be construed to limit any rights or remedies otherwise available under this Contract for breach of warranty.

h. Workmanship Warranty Contract warrants that all components or deliverables specified and furnished by or through Contractor under the Project Definition/Work Order meet the completion criteria set forth in the Project Definition/Work Order and any subsequent statement(s) of work, and that services will be provided in a workmanlike manner in accordance with industry standards.

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i. Survival of Warranties All warranties contained in this Contract shall survive the termination of this Contract.

73. LEGAL COMPLIANCE Contractor represents and warrants that it shall secure all notices and comply with all laws, ordinances, rules and regulations of any governmental entity in conjunction with the performance of obligations under the Contract. Prior to award and during the Contract term and any renewals thereof, Contractor must establish to the satisfaction of the Commissioner that it meets or exceeds all requirements of the Bid and Contract and any applicable laws, including but not limited to, permits, licensing, and shall provide such proof as required by the Commissioner. Failure to comply or failure to provide proof may constitute grounds for the Commissioner to cancel or suspend the Contract, in whole or in part, or to take any other action deemed necessary by the Commissioner. Contractor also agrees to disclose information and provide affirmations and certifications to comply with Sections 139-j and 139-k of the State Finance Law.

74. INDEMNIFICATION Contractor shall be fully liable for the actions of its agents, employees, partners or Subcontractors and shall fully indemnify and save harmless the Authorized Users from suits, actions, damages and costs of every name and description relating to personal injury and damage to real or personal tangible property caused by any intentional act or negligence of Contractor, its agents, employees, partners or Subcontractors, without limitation; provided, however, that the Contractor shall not indemnify for that portion of any claim, loss or damage arising hereunder due to the negligent act or failure to act of the Authorized Users.

75. INDEMNIFICATION RELATING TO THIRD PARTY RIGHTS The Contractor will also indemnify and hold the Authorized Users harmless from and against any and all damages, expenses (including reasonable attorneys' fees), claims, judgments, liabilities and costs that may be finally assessed against the Authorized Users in any action for infringement of a United States Letter Patent, or of any copyright, trademark, trade secret or other third party proprietary right except to the extent such claims arise from the Authorized Users gross negligence or willful misconduct, provided that the State shall give Contractor: (i) prompt written notice of any action, claim or threat of infringement suit, or other suit, (ii) the opportunity to take over, settle or defend such action, claim or suit at Contractor's sole expense, and (iii) assistance in the defense of any such action at the expense of Contractor.

If usage shall be enjoined for any reason or if Contractor believes that it may be enjoined, Contractor shall have the right, at its own expense and sole discretion to take action in the following order of precedence: (i) to procure for the Authorized User the right to continue Usage (ii) to modify the service or Product so that Usage becomes non-infringing, and is of at least equal quality and performance; or (iii) to replace said service or Product or part(s) thereof, as applicable, with non-infringing service or Product of at least equal quality and performance. If the above remedies are not available, the parties shall terminate the Contract, in whole or in part as necessary and applicable, provided the Authorized User is given a refund for any amounts paid for the period during which Usage was not feasible.

The foregoing provisions as to protection from third party rights shall not apply to any infringement occasioned by modification by the Authorized User of any Product without Contractor’s approval.

In the event that an action at law or in equity is commenced against the Authorized User arising out of a claim that the Authorized User's use of the service or Product under the Contract infringes any patent, copyright or proprietary right, and Contractor is of the opinion that the

allegations in such action in whole or in part are not covered by the indemnification and defense provisions set forth in the Contract, Contractor shall immediately notify the Authorized User and the Office of the Attorney General in writing and shall specify to what extent Contractor believes it is obligated to defend and indemnify under the terms and conditions of the Contract. Contractor shall in such event protect the interests of the Authorized User and secure a continuance to permit the Authorized User to appear and defend its interests in cooperation with Contractor, as is appropriate, including any jurisdictional defenses the Authorized User may have. This constitutes the Authorized User’s sole and exclusive remedy for patent infringement, or for infringement of any other third party proprietary right.

76. LIMITATION OF LIABILITY Except as otherwise set forth in the Indemnification Paragraphs above, the limit of liability shall be as follows:

a. Contractor’s liability for any claim, loss or liability arising out of, or connected with the Products and services provided, and whether based upon default, or other liability such as breach of contract, warranty, negligence, misrepresentation or otherwise, shall in no case exceed direct damages in: (i) an amount equal to two (2) times the charges specified in the Purchase Order for the Products and services, or parts thereof forming the basis of the Authorized User’s claim, (said amount not to exceed a total of twelve (12) months charges payable under the applicable Purchase Order) or (ii) one million dollars ($1,000,000), whichever is greater.

b. The Authorized User may retain such monies from any amount due Contractor as may be necessary to satisfy any claim for damages, costs and the like asserted against the Authorized User unless Contractor at the time of the presentation of claim shall demonstrate to the Authorized User’s satisfaction that sufficient monies are set aside by the Contractor in the form of a bond or through insurance coverage to cover associated damages and other costs.

c. Notwithstanding the above, neither the Contractor nor the Authorized User shall be liable for any consequential, indirect or special damages of any kind which may result directly or indirectly from such performance, including, without limitation, damages resulting from loss of use or loss of profit by the Authorized User, the Contractor, or by others.

77. INSURANCE Contractor shall secure and maintain insurance coverage as specified in the Bid Documents and shall promptly provide documentation of specified coverages to the Authorized User. If specified, the Contractor may be required to add the Authorized User as an additional insured.

THE FOLLOWING CLAUSES PERTAIN TOTECHNOLOGY & NEGOTIATED CONTRACTS

78. SOFTWARE LICENSE GRANT Where Product is acquired on a licensed basis the following shall constitute the license grant:

a. License Scope Licensee is granted a non-exclusive, perpetual license to use, execute, reproduce, display, perform, or merge the Product within its business enterprise in the United States up to the maximum licensed capacity stated on the Purchase Order. Product may be accessed, used, executed, reproduced, displayed or performed up to the capacity measured by the applicable licensing unit stated on the Purchase Order (i.e., payroll size, number of employees, CPU, MIPS, MSU, concurrent user, workstation). Licensee shall have the right to use and distribute modifications or customizations of the Product to and for use by any Authorized Users otherwise licensed to use the

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Product, provided that any modifications, however extensive, shall not diminish Licensor’s proprietary title or interest. No license, right or interest in any trademark, trade name, or service mark is granted hereunder.

b. License Term The license term shall commence upon the License Effective Date, provided, however, that where an acceptance or trial period applies to the Product, the License Term shall be extended by the time period for testing, acceptance or trial.

c. Licensed Documentation If commercially available, Licensee shall have the option to require the Contractor to deliver, at Contractor’s expense: (i) one (1) hard copy and one (1) master electronic copy of the Documentation in a mutually agreeable format; (ii) based on hard copy instructions for access by downloading from the Internet (iii) hard copies of the Product Documentation by type of license in the following amounts, unless otherwise mutually agreed:

• Individual/Named User License - one (1) copy per License• Concurrent Users - 10 copies per site• Processing Capacity - 10 copies per site

Software media must be in a format specified by the Authorized User, without requiring any type of conversion.

Contractor hereby grants to Licensee a perpetual license right to make, reproduce (including downloading electronic copies of the Product) and distribute, either electronically or otherwise, copies of Product Documentation as necessary to enjoy full use of the Product in accordance with the terms of license.

d. Product Technical Support & Maintenance Licensee shall have the option of electing the Product technical support and maintenance (“maintenance”) set forth in the Contract by giving written notice to Contractor any time during the Centralized Contract term. Maintenance term(s) and any renewal(s) thereof are independent of the expiration of the Centralized Contract term and will not automatically renew.

Maintenance shall include, at a minimum, (i) the provision of error corrections, updates, revisions, fixes, upgrade and new releases to Licensee, and (ii) Help Desk assistance with locally accessible “800” or toll free, local telephone service, or alternatively on-line Help Desk accessibility. Contractor shall maintain the Products so as to provide Licensee with the ability to utilize the Products in accordance with the Product documentation without significant functional downtime to its ongoing business operations during the maintenance term.

Authorized User shall not be required to purchase maintenance for use of Product, and may discontinue maintenance at the end of any current maintenance term upon notice to Contractor. In the event that Authorized User does not initially acquire or discontinues maintenance of licensed Product, it may, at any time thereafter, reinstate maintenance for Product without any additional penalties or other charges, by paying Contractor the amount which would have been due under the Contract for the period of time that such maintenance had lapsed, at then current NYS net maintenance rates.

e. Permitted License Transfers As Licensee’s business operations may be altered, expanded or diminished, licenses granted hereunder may be transferred or combined for use at an alternative or consolidated site not originally specified in the license, including transfers between Agencies (“permitted license transfers”). Licensee(s) do not have to obtain the approval of Contractor for permitted license transfers, but must give thirty (30) days prior written

notice to Contractor of such move(s) and certify in writing that the Product is not in use at the prior site. There shall be no additional license or other transfer fees due Contractor, provided that: i) the maximum capacity of the consolidated machine is equal to the combined individual license capacity of all licenses running at the consolidated or transferred site (e.g., named users, seats, or MIPS); or ii) if the maximum capacity of the consolidated machine is greater than the individual license capacity being transferred, a logical or physical partition or other means of restricting access will be maintained within the computer system so as to restrict use and access to the Product to that unit of licensed capacity solely dedicated to beneficial use for Licensee. In the event that the maximum capacity of the consolidated machine is greater than the combined individual license capacity of all licenses running at the consolidated or transferred site, and a logical or physical partition or other means of restricting use is not available, the fees due Contractor shall not exceed the fees otherwise payable for a single license for the upgrade capacity.

f. Restricted Use By Outsourcers / Facilities Management, Service Bureaus / or Other Third Parties Outsourcers, facilities management or service bureaus retained by Licensee shall have the right to use the Product to maintain Licensee’s business operations, including data processing, for the time period that they are engaged in such activities, provided that: 1) Licensee gives notice to Contractor of such party, site of intended use of the Product, and means of access; and 2) such party has executed, or agrees to execute, the Product manufacturer’s standard nondisclosure or restricted use agreement which executed agreement shall be accepted by the Contractor (“Non-Disclosure Agreement”); and 3) if such party is engaged in the business of facility management, outsourcing, service bureau or other services, such third party will maintain a logical or physical partition within its computer system so as to restrict use and access to the program to that portion solely dedicated to beneficial use for Licensee. In no event shall Licensee assume any liability for third party’s compliance with the terms of the Non-Disclosure Agreement, nor shall the Non-Disclosure Agreement create or impose any liabilities on the State or Licensee.

Any third party with whom a Licensee has a relationship for a state function or business operation, shall have the temporary right to use Product (e.g., JAVA Applets), provided that such use shall be limited to the time period during which the third party is using the Product for the function or business activity.

g. Archival Back-Up and Disaster Recovery Licensee may use and copy the Product and related Documentation in connection with: i) reproducing a reasonable number of copies of the Product for archival backup and disaster recovery procedures in the event of destruction or corruption of the Product or disasters or emergencies which require Licensee to restore backup(s) or to initiate disaster recovery procedures for its platform or operating systems; ii) reproducing a reasonable number of copies of the Product and related Documentation for cold site storage. “Cold Site” storage shall be defined as a restorable back-up copy of the Product not to be installed until and after the declaration by the Licensee of a disaster; iii) reproducing a back-up copy of the Product to run for a reasonable period of time in conjunction with a documented consolidation or transfer otherwise allowed herein. “Disaster Recovery” shall be defined as the installation and storage of Product in ready-to-execute, back-up computer systems prior to disaster or breakdown which is not used for active production or development.

h. Confidentiality Restrictions The Product is a trade secret, copyrighted and proprietary product. Licensee and its employees will keep the Product strictly confidential, and Licensee will not disclose or otherwise distribute or reproduce any Product to anyone other than as

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authorized under the terms of Contract. Licensee will not remove or destroy any proprietary markings of Contractor.

i. Restricted Use by Licensee Except as expressly authorized by the terms of license, Licensee shall not:

(i) Copy the Product;(ii) Cause or permit reverse compilation or reverse assembly of

all or any portion of the Product;(iii) Export the Licensed Software in violation of any U.S.

Department of Commerce export administration regulations.

79. PRODUCT ACCEPTANCE Unless otherwise provided by mutual agreement of the Authorized User and the Contractor, Authorized User(s) shall have thirty (30) days from the date of delivery to accept hardware products and sixty (60) days from the date of delivery to accept all other Product. Where the Contractor is responsible for installation, acceptance shall be from completion of installation. Failure to provide notice of acceptance or rejection or a deficiency statement to the Contractor by the end of the period provided for under this clause constitutes acceptance by the Authorized User(s) as of the expiration of that period. The License Term shall be extended by the time periods allowed for trial use, testing and acceptance unless the Commissioner or Authorized User agrees to accept the Product at completion of trial use.

Unless otherwise provided by mutual agreement of the Authorized User and the Contractor, Authorized User shall have the option to run testing on the Product prior to acceptance, such tests and data sets to be specified by User. Where using its own data or tests, Authorized User must have the tests or representative set of data available upon delivery. This demonstration will take the form of a documented installation test, capable of observation by the Authorized User, and shall be made part of the Contractor’s standard documentation. The test data shall remain accessible to the Authorized User after completion of the test.

In the event that the documented installation test cannot be completed successfully within the specified acceptance period, and the Contractor or Product is responsible for the delay, Authorized User shall have the option to cancel the order in whole or in part, or to extend the testing period for an additional thirty (30) day increment. Authorized User shall notify Contractor of acceptance upon successful completion of the documented installation test. Such cancellation shall not give rise to any cause of action against the Authorized User for damages, loss of profits, expenses, or other remuneration of any kind.

If the Authorized User elects to provide a deficiency statement specifying how the Product fails to meet the specifications within the testing period, Contractor shall have thirty (30) days to correct the deficiency, and the Authorized User shall have an additional sixty (60) days to evaluate the Product as provided herein. If the Product does not meet the specifications at the end of the extended testing period, Authorized User, upon prior written notice to Contractor, may then reject the Product and return all defective Product to Contractor, and Contractor shall refund any monies paid by the Authorized User to Contractor therefor. Costs and liabilities associated with a failure of the Product to perform in accordance with the functionality tests or product specifications during the acceptance period shall be borne fully by Contractor to the extent that said costs or liabilities shall not have been caused by negligent or willful acts or omissions of the Authorized User’s agents or employees. Said costs shall be limited to the amounts set forth in the Limitation of Liability Clause for any liability for costs incurred at the direction or recommendation of Contractor.

80. AUDIT OF LICENSED PRODUCT USAGE Contractor shall have the right to periodically audit, no more than annually, at Contractor’s expense, use of licensed Product at any site where a copy of the Product resides provided that: (i) Contractor gives Licensee(s) at least thirty (30) days advance written notice, (ii) such audit is conducted during such party’s normal business hours, (iii) the audit is conducted by an independent auditor chosen on mutual agreement of the parties. Contractor shall recommend a minimum of three (3) auditing/accounting firms from which the Licensee will select one (1). In no case shall the Business Software Alliance (BSA), Software Publishers Association (SPA), Software and Industry Information Association (SIIA) or Federation Against Software Theft (FAST) be used directly or indirectly to conduct audits, or be recommended by Contractor; (iv) Contractor and Licensee are each entitled to designate a representative who shall be entitled to participate, and who shall mutually agree on audit format, and simultaneously review all information obtained by the audit. Such representatives also shall be entitled to copies of all reports, data or information obtained from the audit; and (v) if the audit shows that such party is not in compliance, Licensee shall be required to purchase additional licenses or capacities necessary to bring it into compliance and shall pay for the unlicensed capacity at the NYS Net Price in effect at time of audit, or if none, then at the Contractor’s U.S. Commercial list price. Once such additional licenses or capacities are purchased, Licensee shall be deemed to have been in compliance retroactively, and Licensee shall have no further liability of any kind for the unauthorized use of the software.

81. OWNERSHIP/TITLE TO PROJECT DELIVERABLESa. Definitions

(i) For purposes of this paragraph, “Products.” A deliverable furnished under this Contract by or through Contractor, including existing and custom Products, including, but not limited to: a) components of the hardware environment, b) printed materials (including but not limited to training manuals, system and user documentation, reports, drawings), whether printed in hard copy or maintained on diskette, CD, DVD or other electronic media c) third party software, d) modifications, customizations, custom programs, program listings, programming tools, data, modules, components, and e) any properties embodied therein, whether in tangible or intangible form (including but not limited to utilities, interfaces, templates, subroutines, algorithms, formulas, source code, object code).

(ii) For purposes of this paragraph, “Existing Products.” Tangible Products and intangible licensed Products that exist prior to the commencement of work under the Contract. Contractor bears the burden of proving that a particular product was in existence prior to the commencement of the Project.

(iii) For purposes of this paragraph, “Custom Products.” Products, preliminary, final or otherwise, which are created or developed by Contractor, its Subcontractors, partners, employees or agents for Authorized User under the Contract.

b. Title to Project Deliverables Contractor acknowledges that it is commissioned by the Authorized User to perform the services detailed in the Purchase Order. Unless otherwise specified in writing in the Bid or Purchase Order, the Authorized User shall have ownership and license rights as follows:

(i) Existing Products:1. Hardware - Title and ownership of Existing Hardware

Product shall pass to Authorized User upon Acceptance.2. Software - Title and ownership to Existing Software

Product(s) delivered by Contractor under the Contract that is normally commercially distributed on a license basis by the Contractor or other independent software vendor proprietary owner (“Existing Licensed Product”), whether or not embedded in, delivered or operating in

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conjunction with hardware or Custom Products, shall remain with Contractor or the proprietary owner of other independent software vendor(s) (ISV). Effective upon acceptance, such Product shall be licensed to Authorized User in accordance with the Contractor or ISV owner’s standard license agreement, provided, however, that such standard license, must, at a minimum: (a) grant Authorized User a non-exclusive, perpetual license to use, execute, reproduce, display, perform, adapt (unless Contractor advises Authorized User as part of Contractor’s proposal that adaptation will violate existing agreements or statutes and Contractor demonstrates such to the Authorized User’s satisfaction) and distribute Existing Licensed Product to the Authorized User up to the license capacity stated in the Purchase Order or work order with all license rights necessary to fully effect the general business purpose(s) stated in the Bid or Authorized User’s Purchase Order or work order, including the financing assignment rights set forth in paragraph (c) below; and (b) recognize the State of New York as the licensee where the Authorized User is a state agency, department, board, commission, office or institution. Where these rights are not otherwise covered by the ISV’s owner’s standard license agreement, the Contractor shall be responsible for obtaining these rights at its sole cost and expense. The Authorized User shall reproduce all copyright notices and any other legend of ownership on any copies authorized under this paragraph.

(ii.) Custom Products: Effective upon creation of Custom Products, Contractor hereby conveys, assigns and transfers to Authorized User the sole and exclusive rights, title and interest in Custom Product(s), whether preliminary, final or otherwise, including all trademark and copyrights. Contractor hereby agrees to take all necessary and appropriate steps to ensure that the Custom Products are protected against unauthorized copying, reproduction and marketing by or through Contractor, its agents, employees, or Subcontractors. Nothing herein shall preclude the Contractor from otherwise using the related or underlying general knowledge, skills, ideas, concepts, techniques and experience developed under a Purchase Order, project definition or work order in the course of Contractor’s business. Authorized User may, by providing written notice thereof to the Contractor, elect in the alternative to take a non-exclusive perpetual license to Custom Products in lieu of Authorized User taking exclusive ownership and title to such Products. In such case, Licensee on behalf of all Authorized Users shall be granted a non-exclusive perpetual license to use, execute, reproduce, display, perform, adapt and distribute Custom Product as necessary to fully effect the general business purpose(s) as stated in paragraph (b)(i)(2), above.

c. Transfers or Assignments to a Third Party Financing Agent It is understood and agreed by the parties that a condition precedent to the consummation of the purchase (s) under the Contract may be the obtaining of acceptable third party financing by the Authorized User. The Authorized User shall make the sole determination of the acceptability of any financing proposal. The Authorized User will make all reasonable efforts to obtain such financing, but makes no representation that such financing has been obtained as of the date of Bid receipt. Where financing is used, Authorized User may assign or transfer its rights in Licensed Products (existing or custom) to a third party financing entity or trustee (“Trustee”) as collateral where required by the terms of the financing agreement. Trustee’s sole rights with respect to transferability or use of Licensed Products shall be to exclusively sublicense to Authorized User all of its Licensee’s rights under the terms and conditions of the License Agreement; provided, further, however, in the event of any termination or expiration of such sublicense by reason of payment in full, all of Trustee’s rights in such Licensed Product shall terminate immediately and Authorized User’s prior rights to such Existing Licensed Product shall be revived.

d. Sale or License of Custom Products Involving Tax-Exempt Financing (i.e., Certificates of Participation - COPS) The Authorized User’s sale or other transfer of Custom Products which were acquired by the Authorized User using third party, tax-exempt financing may not occur until such Custom Products are, or become, useable. In the event that the Contractor wishes to obtain ownership rights to Custom Product(s), the sale or other transfer shall be at fair market value determined at the time of such sale or other transfer, and must be pursuant to a separate written agreement in a form acceptable to the Authorized User which complies with the terms of this paragraph.

e. Contractor’s Obligation with Regard to ISV (Third Party) Product Where Contractor furnishes Existing Licensed Product(s) as a Project Deliverable, and sufficient rights necessary to effect the purposes of this section are not otherwise provided in the Contractor or ISV’s standard license agreement, Contractor shall be responsible for obtaining from the ISV third party proprietary owner/developer the rights set forth herein to the benefit of the Authorized User at Contractor’s sole cost and expense.

82. PROOF OF LICENSE The Contractor must provide to each Licensee who places a Purchase Order either: (i) the Product developer’s certified License Confirmation Certificates in the name of such Licensee; or (ii) a written confirmation from the Proprietary owner accepting Product invoice as proof of license. Contractor shall submit a sample certificate, or alternatively such written confirmation from the proprietary developer. Such certificates must be in a form acceptable to the Licensee.

83. PRODUCT VERSION Purchase Orders shall be deemed to reference Manufacturer’s most recently released model or version of the Product at time of order, unless an earlier model or version is specifically requested in writing by Authorized User and Contractor is willing to provide such version.

84. CHANGES TO PRODUCT OR SERVICE OFFERINGSa. Product or Service Discontinuance Where Contractor is the Product Manufacturer/Developer, and Contractor publicly announces to all U.S. customers (“date of notice”) that a Product is being withdrawn from the U.S. market or that maintenance service or technical support provided by Contractor (“withdrawn support”) is no longer going to be offered, Contractor shall be required to: (i) notify the Commissioner, each Licensee and each Authorized User then under contract for maintenance or technical support in writing of the intended discontinuance; and (ii) continue to offer Product or withdrawn support upon the Contract terms previously offered for the greater of: a) the best terms offered by Contractor to any other customer, or b) not less than twelve (12) months from the date of notice; and (iii) at Authorized User’s option, provided that the Authorized User is under contract for maintenance on the date of notice, either: provide the Authorized User with a Product replacement or migration path with at least equivalent functionality at no additional charge to enable Authorized User to continue use and maintenance of the Product.

In the event that the Contractor is not the Product Manufacturer, Contractor shall be required to: (i) provide the notice required under the paragraph above, to the entities described within five (5) business days of Contractor receiving notice from the Product Manufacturer, and (ii) include in such notice the period of time from the date of notice that the Product Manufacturer will continue to provide Product or withdraw support.

The provisions of this subdivision (a) shall not apply or eliminate Contractor’s obligations where withdrawn support is being provided by an independent Subcontractor. In the event that such Subcontractor

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ceases to provide service, Contractor shall be responsible for subcontracting such service, subject to state approval, to an alternate Subcontractor.

b. Product or Service Re-Bundling In the event that Contractor is the Product manufacturer and publicly announces to all U.S. customers (“date of notice”) that a Product or maintenance or technical support offering is being re-bundled in a different manner from the structure or licensing model of the prior U.S. commercial offering, Contractor shall be required to: (i) notify the State and each Authorized User in writing of the intended change; (ii) continue to provide Product or withdrawn support upon the same terms and conditions as previously offered on the then-current NYS Contract for the greater of: a) the best terms offered by Contractor to any other customer, or b) not less than twelve (12) months from the date of notice; and (iii) shall submit the proposed rebundling change to the Commissioner for approval prior to its becoming effective for the remainder of the Contract term. The provisions of this section do not apply if the Contractor is not the Product manufacturer.

85. NO HARDSTOP/PASSIVE LICENSE MONITORING Unless an Authorized User is otherwise specifically advised to the contrary in writing at the time of order and prior to purchase, Contractor hereby warrants and represents that the Product and all Upgrades do not and will not contain any computer code that would disable the Product or Upgrades or impair in any way its operation based on the elapsing of a period of time, exceeding an authorized number of copies, advancement to a particular date or other numeral, or other similar self-destruct mechanisms (sometimes referred to as “time bombs,” “time locks,” or “drop dead” devices) or that would permit Contractor to access the Product to cause such disablement or impairment (sometimes referred to as a “trap door” device). Contractor agrees that in the event of a breach or alleged breach of this provision that Authorized User shall not have an adequate remedy at law, including monetary damages, and that Authorized User shall consequently be entitled to seek a temporary restraining order, injunction, or other form of equitable relief against the continuance of such breach, in addition to any and all remedies to which Authorized User shall be entitled.

86. SOURCE CODE ESCROW FOR LICENSED PRODUCT If Source Code or Source Code escrow is offered by either Contractor or Product manufacturer or developer to any other commercial customers, Contractor shall either: (i) provide Licensee with the Source Code for the Product; or (ii) place the Source Code in a third party escrow arrangement with a designated escrow agent who shall be named and identified to the State, and who shall be directed to release the deposited Source Code in accordance with a standard escrow agreement acceptable to the State; or (iii) will certify to the State that the Product manufacturer/developer has named the State, acting by and through the Authorized User, and the Licensee, as a named beneficiary of an established escrow arrangement with its designated escrow agent who shall be named and identified to the State and Licensee, and who shall be directed to release the deposited Source Code in accordance with the terms of escrow. Source Code, as well as any corrections or enhancements to such source code, shall be updated for each new release of the Product in the same manner as provided above and such updating of escrow shall be certified to the State in writing. Contractor shall identify the escrow agent upon commencement of the Contract term and shall certify annually that the escrow remains in effect in compliance with the terms of this paragraph.

The State may release the Source Code to Licensees under this Contract who have licensed Product or obtained services, who may use such copy of the Source Code to maintain the Product.

FOR NEGOTIATED CONTRACTS THE FOLLOWING CLAUSES ARE RESERVED BECAUSE BIDDING DOES NOT APPLY:

Clauses: 7, 8, 9, 10, 11, 12, 13, 16, 15, 21, 25, 26, 28, 29, 30, 31, 32, 33, 36, 49, 50, 52, 54 and 37

July 2006 109

July 2006 110

I N D E X

Paragraph ParagraphA No.

Additional Warranties 72Advertising Results 20Applicability 1Assignment 56Assignment of Claim 66Audit of Licensed Product Usage 80Authentication of Facsimile Bids 10

BBid Contents 12Bid Evaluation 29Bid Opening 7Bid Submission 8

CChanges to Product or Service Offerings 84Clarification/Revisions 31Confidential/Trade Secret Materials 14Conflict of Terms 4Conditional Bid 30Contract Billings 62Contract Creation/Execution 38Contract Term - Renewal 71Cooperation with Third Parties 70

DDefault - Authorized User 63Definitions 5Disqualification for Past Performance 35Drawings 25

EEmergency Contracts 43Employees/Subcontractors/Agents 55Equivalent or Identical Bids 33Estimated/Specific Quantity Contracts 42Ethics Compliance 3Expenses Prior to Contract Execution 19Extraneous Terms 13

FFacsimile Submissions 9Freedom of Information Law 16

GGoverning Law 2

IIndemnification 74Indemnification Relating to Third Party Rights 75Independent Contractor 68Installation 52Insurance 77Interest on Late Payments 64International Bidding 6

LLate Bids 11Legal Compliance 73Limitation of Liability 76

M No.Modification of Contract Terms 40

NNo Hardstop/Passive License Monitoring 85

OOn-Site Storage 54Ownership/Title to Project Deliverables 81

PParticipation in Centralized Contracts 39Performance and Responsibility Qualifications 34Performance/Bid Bond 58Prevailing Wage Rates Public Works & Building Services Contracts 17Pricing 24Procurement Card 27Product Acceptance 79Product Delivery 45Product References 21Product Substitution 50Product Version 83Products Manufactured in Public Institutions 23Prompt Payment Discounts 32Proof of License 82Purchase Orders 44

QQuantity Changes Prior to Award 36

RRejected Product 51Release of Bid Evaluation Materials 15Re-Weighing Product 49Remanufactured, Recycled, Recyclable or Recovered Materials 22Remedies for Breach 65Repaired or Replaced Product/Components 53

SSamples 28Savings/Force Majeure 61Scope Changes 41Security 69Site Inspection 26Shipping/Receipt of Product 47Software License Grant 78Source Code Escrow for Licensed Product 86Subcontractors and Suppliers 57Suspension of Work 59

TTaxes 18Termination 60Timeframe for Offers 37Title and Risk of Loss 48Toxic Substances 67

WWeekend and Holiday Deliveries 46

July 2006

Group 79008 Electronic Value Transfer Appendix C

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APPENDIX C

Dispute Resolution Process

Group 79008 Electronic Value Transfer Appendix C

Dispute Resolution Process

Authorized Users may, at their option, choose to utilize the following dispute resolution process.

The parties understand and agree that the provision of services is subject, at times, to conditions beyond the control of Contractor which may affect the provision of such service in some instances. It is the intention of both parties to attempt to resolve any ongoing disputes, first, through a dispute resolution process as provided below:

A. First Level: In the event of any dispute arising between the Contractor and a state Agency regarding services provided pursuant to this contract, the complaining party shall notify the other and shall make a good faith effort to resolve the dispute within thirty (30) days and shall adhere to the precedence of application of contract documents set forth above.

B. Second Level: In the event that a dispute can not be satisfactorily resolved by good faith efforts at the First level, then either party may, upon satisfaction of conditions set forth herein, refer the entire matter to the PSG responsible for administration of the contract for a determination. Conditions precedent to referral of a dispute to the Second and Third Levels of this dispute resolution procedure are: (i) any such referral must be made, if at all, within thirty (30) days of the time that notice of the dispute was first given by the complaining party to the other, and (ii) no duty or obligation arising hereunder which is the subject of a dispute, specifically including but not limited to any and all service obligations and any and all payment obligations arising hereunder may be refused, deferred, declined, withheld, delayed or diminished during the pendency of this dispute resolution process. The Procurement Services Group (PSG) will make a determination on the dispute within ten (10) business days of receipt of the matter from the complaining party and will notify both parties of its determination simultaneously. The determination of the PSG shall be final and binding upon the parties unless within ten (10) business days of receipt thereof, either party gives written notice of appeal to the Commissioner of General Services and provides therewith all matter pertinent to the dispute.

C. Third Level: In the event that a party is unsatisfied with the resolution of a dispute at the First and Second Levels, that party may, within ten (10) business days of receipt of the Second Level determination, refer the entire matter, in writing, to the Commissioner of General Services as a final appeal. The appealing party must provide, with its notice of appeal, all documents pertinent to the appeal, including a written description of the facts and circumstances giving rise to the dispute; the reason why that party is aggrieved and copy of this dispute resolution procedure. The Commissioner of General Services or a designated representative thereof shall render a decision resolving the dispute within thirty (30) days of receipt of all necessary and pertinent information. The decision of the Commissioner of General Services shall be final and binding upon both parties except that neither party shall be precluded from pursuing any legal remedy it may have. The decision of the Commissioner of General Services may be admitted as evidence of administrative determinations of fact in any legal proceeding pertaining to a dispute arising under this contract.

Notwithstanding any of the above, Contractor shall be obligated to provide continuous services and shall be liable for any breaches of this Agreement, which in the State’s discretion, can not be resolved through the dispute resolution process.

Note: These dispute resolution procedures shall not applied to the chargeback process.

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July 2006 113

July 2006

APPENDIX DContractor's Executive Law, Article 15-A

(M/WBE) Requirements

Group 79008 Electronic Value Transfer Appendix D

CONTRACTOR’S REQUIREMENT UNDER ARTICLE 15-A

In July of 1988, Article 15-A of the Executive Law was passed by the New York State Legislature. This legislation provides specific rules, regulations and procedures for minority and women-owned enterprise participation in certain State Contracts.

The Office of General Services (OGS) is required to implement the provisions of Article 15-A for all of its Contracts (1) in excess of $25,000 for labor, services, supplies, equipment, materials, or any combination of the foregoing and (2) for Contracts in excess of $100,000 for real property renovation and construction. For purposes of this Contract, OGS hereby establishes a 0% goal of for minority business enterprises (MBE) participation and 0% for women-owned business enterprises (WBE) participation.

In order to be awarded an OGS Contract, every bidder must comply with the requirements, rules and regulations outlined in Article 15-A.

POLICY AND PROVISIONS

It is the policy of the State of New York to promote equality of economic opportunity for minority and women-owned business enterprises (M/WBEs) in State Contracting. In order to comply with the State’s objectives, the Contractors shall use “good faith efforts” to provide meaningful participation by M/WBE Subcontractors or suppliers in the performance of this Contract.

For the purpose of determining a Contractor’s good faith effort to comply with the requirements of Article 15-A or to be entitled to a waiver therefrom, the Contracting agency shall consider:

(a) Whether the Contractor has advertised in general circulation media, trade association publications, minority-focus and women-focus media. In such event,

(i) whether or not certified minority or women-owned businesses which have been solicited by the Contractor exhibited interest in submitting proposals for a particular project by attending a pre-bid conference; and

(ii) whether certified businesses which have been solicited by the Contractor have responded in a timely fashion to the Contractor’s solicitations for timely competitive bid quotations prior to the Contracting agency’s bid date; and

(b) Whether there has been written notification to appropriate certified businesses that appear in the Directory of Certified M/WBE prepared pursuant to paragraph (f) of subdivision three of section three hundred eleven of this article; and

(c) Whether the Contractor can reasonably structure the amount of work to be performed under subcontracts in order to increase the likelihood of participation by certified businesses.

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A. GOALS - The MBE and WBE participation goals as stated earlier are based on the availability of M/WBEs currently certified by New York State and geographically located to be able to perform the work in the region where the project is located. The total dollar value of the Contract, scope of work, the supplies and equipment necessary to perform the project, are also considerations used to determine the percentage goals.

B. UTILIZATION - The Contractor may count as M/WBE participation: subcontracting part of the Contract to certified firms or purchasing supplies and equipment used to perform the terms and conditions of the Contract from certified firms.

Upon a showing by the Contractor of every good faith effort to achieve the goal for M/WBE participation in the work, the State will waive a Contractor’s failure to achieve the goal M/WBE participation.

C. MINORITY AND WOMEN-OWNED BUSINESS OFFICER - The Contractor shall designate an Affirmative Action officer and assign the officer the responsibility and authority to monitor the M/WBE program for this Contract. The OGS’ Office of Minority and Women-owned Business Enterprises’ staff is available to help in identifying certified M/WBEs.

D. REQUIRED REPORTS - The Contractor is required to submit a Utilization Plan (BDC-328) to the NYS Office of General Services within five (5) days after the opening of bids for construction Contracts exceeding $100,000 and 14 days after notification of award for commodity and service Contracts exceeding $25,000. The Contractor must also submit the MBE/WBE Letter of Intent to Participate (BDC-49). The Letter MBE/WBE of Intent to Participate is a commitment by the Contractor and the subcontractor/supplier that the terms and conditions for M/WBE participation on this Contract are agreed to. Any modifications or changes to the agreed participation by certified M/WBEs, over the term of the Contract, must be reported on a revised Utilization Plan

E. NONDISCRIMINATION - The Contractor agrees not to discriminate on the basis of race, creed, color, national origin, gender, age, disability, or marital status, in any respect, against any potential subcontractor, supplier, other company, firm, or enterprise in any manner relating to the performance of this Contract

POST AWARD

The Contractor must submit to the Office of Minority and Women-owned Business Enterprises after notification of award, the following forms, by the 10th day of each month:

1. (BDC-58) Cumulative Monthly Payment Statements2. (BDC-25) Monthly Affirmation of Income Payments

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All questions regarding compliance to Article 15-A requirements or copies of the forms should be addressed to:

New York State Office of General ServicesOffice of Minority and Women-owned Business Enterprises35th Floor, Room 3580Corning Tower BuildingEmpire State PlazaAlbany, NY 12242

The telephone numbers and addresses for New York State Department of Economic Development are as follows:

New York State Department of Economic Development633 Third AvenueNew York, NY 10017

Telephone: (212) 803-2414

New York State Department of Economic DevelopmentDivision o f Minority and Women’s Business Development30 South Pearl StreetAlbany, New York 12245Telephone: (518) 292-5250

Although the “Goals” are set at 0%, the State feels that there may be opportunities for the successful bidder to utilize NYS certified Minority or Women Owned Enterprises to obtain commodities and/or services that the successful bidder can identify as being related to the EVT contract. It is therefore incumbent upon the successful bidder to make a “Good Faith” effort to identify and utilize such firms.

A Good Faith effort at a minimum entails the following: Review the NYS Department of Economic Development list of certified M/WBEs to;

1. Determine if any of the bidder’s current suppliers of commodities and/or services is certified.2. Determine if there are any M/WBEs listed that supply commodies and/or services which can be applicable to this

contract. If a M/WBE is found based on criterion 1 above, the reports (BDC-58 & BDC-25) are to be completed and submitted for any utilization of the M/WBE related to this contract. If a M/WBE is found based on criterion 2 above, bidder is to consider utilizing the certified M/WBE for purposes of this

contract and if the M/WBE is utilized, complete and submit reports BDC-58 & BDC-25 as appropriate.

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July 2006 117

July 2006

APPENDIX E

Contract Insurance Requirements

Group 79008 Electronic Value Transfer Bidder Response Forms

Contract Insurance Requirements

Prior to the commencement of the work to be performed by the Contractor hereunder, the Contractor shall file with The People of the State of New York, Office of General Services (hereinafter referred to as “OGS”), Certificates of Insurance evidencing compliance with all requirements contained in this Contract. Such Certificates shall be of form and substance acceptable to OGS.Acceptance and/or approval by OGS does not and shall not be construed to relieve Contractor of any obligations, responsibilities or liabilities under the Contract.All insurance required by the Contract shall be obtained at the sole cost and expense of the Contractor; shall be maintained with insurance carriers licensed to do business in New York State, and acceptable to OGS ; shall be primary and non-contributing to any insurance or self insurance maintained by OGS; shall be endorsed to provide written notice be given to OGS at least thirty (30) days prior to the cancellation, non-renewal, or material alteration of such policies, which notice, evidenced by return receipt of United States Certified Mail; shall be sent to New York State OGS, Empire State Plaza, Corning Tower, 38th floor, Albany NY 12242 and shall name The People of the State of New York, its officers, agents, and employees as additional insureds thereunder (General Liability Additional Insured Endorsement shall be on Insurance Service Office’s (ISO) form number CG 20 26 11 85). The additional insured requirement does not apply to Workers Compensation or Disability coverage.The Contractor shall be solely responsible for the payment of all deductibles and self insured retentions to which such policies are subject. Deductibles and self-insured retentions must be approved by OGS. Such approval shall not be unreasonably withheld.The Contractor shall require that any subcontractors hired, carry insurance with the same limits and provisions provided herein. Each insurance carrier must be rated at least “A-” Class “VII” in the most recently published Best’s Insurance Report. If, during the term of the policy, a carrier’s rating falls below “A-” Class “VII”, the insurance must be replaced no later than the renewal date of the policy with an insurer acceptable to the Department and rated at least “A-” Class ”VII” in the most recently published Best’s Insurance Report.The Contractor shall cause all insurance to be in full force and effect as of the commencement date of this Contract and to remain in full force and effect throughout the term of this Contract and as further required by this Contract. The Contractor shall not take any action, or omit to take any action that would suspend or invalidate any of the required coverages during the period of time such coverages are required to be in effect.Not less than thirty (30) days prior to the expiration date or renewal date, the Contractor shall supply OGS updated replacement Certificates of Insurance, and amendatory endorsements. The Contractor, throughout the term of this Contract, or as otherwise required by this Contract, shall obtain and maintain in full force and effect, the following insurance with limits not less than those described below and as required by the terms of this Contract, or as required by law, whichever is greater (limits may be provided through a combination of primary and umbrella/excess policies):

a) Commercial General Liability Insurance with a limit of not less than $1,000,000 each occurrence. Such liability shall be written on the ISO occurrence form CG 00 01, or a substitute form providing equivalent coverages and shall cover liability arising from premises operations, independent contractors, products-completed operations, broad form property damage, personal & advertising injury, cross liability coverage, liability assumed in a contract (including the tort liability of another assumed in a contract).

a) Workers Compensation, Employers Liability, and Disability Benefits as required by New York State. If employees will be working on, near or over navigable waters, US Longshore and Harbor Workers Compensation Act endorsement must be included.

c) Comprehensive Business Automobile Liability Insurance with a limit of not less than $1,000,000 each accident. Such insurance shall cover liability arising out of any automobile including owned, leased, hired and non owned automobiles.

Waiver of Subrogation. Contractor shall cause to be included in each of its policies insuring against loss, damage or destruction by fire or other insured casualty a waiver of the insurer’s right of subrogation against OGS, or, if such waiver is unobtainable (i) an express agreement that such policy shall not be invalidated if Contractor waives or has waived before the casualty, the right of recovery against OGS or (ii) any other form of permission for the release of OGS.Certificates of Insurance are to be filed at the following address: Office of General Service

Procurement Services GroupCorning Tower, 38th FloorAlbany, NY 12242Attn: Nicholas Jacobia

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Bidder Response Forms


Request for Proposal Form

State of New York Executive Department Office of General Services

Procurement Services GroupCorning Tower - 38th Floor

Empire State PlazaAlbany, NY 12242

REQUEST FOR PROPOSALIMPORTANT: SEE “BID SUBMISSION” CLAUSES HEREIN

BID OPENING DATE : December 4, 2008

TIME : 11:00 A.M. EST

TITLE: Group 79008 – Electronic Value Transfer.

REQUEST FOR PROPOSAL NUMBER:

21312

RFP REFERENCE: As incorporated herein.

CONTRACT PERIOD:Five years with one, five year renewal option

ADDRESS INQUIRIES TO: Nicholas JacobiaPhone: (518) 473-4651FAX: (518) 486-6867E-Mail: [email protected]

By signing you indicate your express authority to sign on behalf of yourself, or your company or other entity and full knowledge and acceptance of the REQUEST FOR PROPOSALS, Appendix A (Standard Clauses For All New York State Contracts), and Appendix B (OGS General Specifications July 2006), and State Finance Law §139-j and §139-k (Procurement Lobbying), and that all information provided is complete, true and accurate. By signing, bidder affirms that it understands and agrees to comply with the OGS procedures relative to permissible contacts as required by State Finance Law §139-j (3) and §139-j (6) (b). Information may be accessed at:

Procurement Lobbying: http://www.ogs.state.ny.us/aboutOgs/regulations/defaultAdvisoryCouncil.html This document must be fully and properly executed by an authorized person.

Name of Company Bidding: Bidder’s Federal Tax Identification No.:


Phone : ( ) - ext ( )

Fax : ( ) - ext ( )

Toll Free Phone : ( ) - ext ( )

Toll Free Fax : ( ) - ext ( )

E-mail Address: Company Web Address:If you are not bidding, place an “x” in the appropriate box and return this page only. WE ARE UNABLE TO BID AT THIS TIME BECAUSE___________________________________________________. WE REQUEST REMOVAL OF OUR NAME FROM THE MAILING LIST FOR THIS TITLE. Bidder’s Signature Title

Printed or Typed NameDate

FOR PROCUREMENT SERVICES GROUP USE ONLY

RFP # 009395 LIT LET MEMO OTHER MISSING PAGES

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Bid Proposal Signature Page

IN WITNESS WHEREOF, the parties hereto have executed this agreement as of the date first above written

CONTRACT NO. ____________

AGENCY CERTIFICATION (In addition to the acceptance of this Contract, I also certify that original copies of this signature page will be attached to all other exact copies of this contract).

Agency Signature Contractor’s Signature

___________________________ ____________________________

Dated:______________________ ____________________________Print Name

____________________________ Title

____________________________Company

____________________________Address

____________________________City, State/Zip

____________________________Telephone No./Fax No.

____________________________Federal Id No.

NEW YORK STATE NEW YORK STATEATTORNEY GENERAL’S SIGNATURE COMPTROLLER’S SIGNATURE_______________________________ _______________________________

Dated __________________ Dated __________________

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Notary Acknowledgment

CORPORATE, PARTNERSHIP OR INDIVIDUAL ACKNOWLEDGMENTSTATE OF

: SS.:COUNTY OF

On the ____ day of ____________in the year 20__ , before me personally appeared: __________________________, known to me to be the person who executed the foregoing instrument, who, being duly sworn by me did depose and say that _he resides at _________________________________________, Town of _____________________________________,County of _____________________ , State of ____________________ ; and further that:

[Check One]

( If an individual): _he executed the foregoing instrument in his/her name and on his/her own behalf.

( If a corporation): _he is the _________________________________ of ____________________________________, the corporation described in said instrument; that, by authority of the Board of Directors of said corporation, _he is authorized to execute the foregoing instrument on behalf of the corporation for purposes set forth therein; and that, pursuant to that authority, _he executed the foregoing instrument in the name of and on behalf of said corporation as the act and deed of said corporation.

( If a partnership): _he is the ________________________________ of ___________________________________, the partnership described in said instrument; that, by the terms of said partnership, _he is authorized to execute the foregoing instrument on behalf of the partnership for the purposes set forth therein; and that, pursuant to that authority, _he executed the foregoing instrument in the name and on behalf of said partnership as the act and deed of said partnership.

________________________________________________Notary Public

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MacBride Certification

BIDDER IS REQUIRED TO SIGN BOTH SECTIONS ON THIS PAGE

NON-DISCRIMINATION IN EMPLOYMENT IN NORTHERN IRELAND:MACBRIDE FAIR EMPLOYMENT PRINCIPLES

In accordance with Chapter 807 of the Laws of 1992 the bidder, by submission of this bid, certifies that it or any individual or legal entity in which the bidder holds a 10% or greater ownership interest, or any individual or legal entity that holds a 10% or greater ownership interest in the bidder, either: (answer yes or no to one or both of the following, as applicable),

(1) have business operations in Northern Ireland,

Yes___ or No ___if yes:

(2) shall take lawful steps in good faith to conduct any business operations they have in Northern Ireland in accordance with the MacBride Fair Employment Principles relating to nondiscrimination in employment and freedom of workplace opportunity regarding such operations in Northern Ireland, and shall permit independent monitoring of their compliance with such Principles.

Yes ___ or No ___

__________________________________ __________________________ (Contractor’s Signature) (Name of Business)

Non-Collusive Bidding Certification

NON-COLLUSIVE BIDDING CERTIFICATION

By submission of this bid, each bidder and each person signing on behalf of any bidder certifies, and in the case of a joint bid each party thereto certifies as to its own organization, under penalty of perjury, that to the best of his knowledge and belief:

(1) The prices in this bid have been arrived at independently without collusion, consultation, communication, or agreement, for the purpose of restricting competition, as to any matter relating to such prices with any other bidder or with any competitor;

(2) Unless otherwise required by law, the prices which have been quoted in this bid have not been knowingly disclosed by the bidder and will not knowingly be disclosed by the bidder prior to opening, directly or indirectly, to any other bidder or to any competitor; and

(3) No attempt has been made or will be made by the bidder to induce any other person, partnership or corporation to submit or not to submit a bid for the purpose of restricting competition.

__________________________________ __________________________ (Contractor’s Signature) (Name of Business)

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Bid Proposal Cover Sheet – Part I

Bid Proposal Cover Sheet*** Important - Failure to Furnish All Required Information may render the Bid Non-Responsive ***


TIME : 11:00 A.M. EST REQUEST FOR PROPOSAL NUMBER: 21312TITLE: Group 79008 – Electronic Value Transfer.

SUBMITTED TO: Nicholas JacobiaPhone No.: (518) 473-4651FAX No.: (518) 486-6867E-Mail: [email protected]

Part I, Response to Section IV, Bidder Technical Qualifications & Service

Requirements

If successful, this Bid, along with the Bid Documents, will constitute a binding contract between the Bidder and State upon receipt of final State approvals. By signing below, you indicate your express authority to sign on behalf of yourself or your company with full knowledge and acceptance of the terms and conditions contained in the above referenced RFP, including Appendix A (Standard Clauses for NYS Contracts), and Appendix B (OGS General Specifications, July 06) and State Finance Law §139-j and §139-k (Procurement Lobbying), and that all information provided is complete, true and accurate. By signing, bidder affirms that it understands and agrees to comply with the OGS procedures relative to permissible contacts as required by State Finance Law §139-j (3) and §139-j (6) (b).



Phone: ( ) - ext. ( )

Fax: ( ) - ext. ( )

Toll Free Phone: ( ) - ext. ( )

Toll Free Fax: ( ) - ext. ( )

E-mail Address: Company Web Address:

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Bid Submittal Checklist

The following checklist must be completed and submitted with all bids. Unless otherwise noted, all submissions are mandatory. Failure to respond or submit required information may render the bid non-responsive.

Format of Bid ProposalCheck to indicate compliance with each requirement.

Proposal is bound. (Three ring binder required.)Proposal is submitted in two (2) separately sealed parts:

Part I, Technical Qualifications & Service Requirements (i.e., response to Section IV)Part II, Financial Requirements (i.e., response to Section V)

Proposal has a Table of Contents and indexed tabs for Part I, following the order set forth in the RFP.Proposal pages are numbered consecutively from beginning to end.Bidder has enclosed:

1. Ten written and signed originals of Part I, Technical Qualifications & Service Requirements2. Ten written and signed originals of Part II, Financial Requirements3. One electronic diskette containing Part II, Financial Requirements, labeled with Bidder name and RFP #

Bidder has completed all information and provided original signatures as appropriate on the:1. Request for Proposal Form2. Bid Proposal Signature Page3. Notary Acknowledgment4. MacBride Certification5. Non-Collusive Bidding Certification6. This Bid Submittal Checklist

Extraneous Terms are fully detailed in a separate section of the Bid Proposal (Tab #3).Bidder agrees to extend use of contract in accordance with RFP, Appendix B, Clause 39 (c )

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Bidder’s Response to Qualifying Technical Requirements

In addition to providing the following affirmations, Bidder’s must respond to the requirements as specified in this RFP. Responses should follow this document in Tab #1. A Microsoft Word® version of this Response Form is available on the OGS website at http://www.ogs.state.ny.us/purchase/Bidcalendarlv.asp

Technical Requirements – Qualifying Criteria Bidder’s Affirmation

Section II.14, Additional Contract ConditionsBidder must agree to conform to and comply with all local, state and federal statutes and regulations governing Authorized Users and their contractors throughout the contract term.

Yes No

Section IV.1.A, Qualified BidderBidder must provide all Financial Services Processing and Transaction Interface services requested. The Bidder must provide Credit/Charge Card and On-line and Off-line Debit Card processing services. All other services can be provided by prospective subcontractors of the bidder.

Yes No

Section IV.1.B.1, Authorized Financial Services Processing Provider

Affirms that bidder meets all PCI DSS standards.Yes No


Affirms authorization to provide FSP services for Credit/Charge Cards and Debit Cards.Yes No


Affirms authorization to provide FSP services for ACH Credit and Debit and Fedwire Funds Transfers, CHIPS and SWIFT.

Yes No

Section IV.1.B.1.c, Authorized Financial Services Processing Provider

Bidder agrees to seek authorization for future payment devices requested by Authorized Users.

Yes No


Bidder affirms that all Transaction Interfaces to be provided under the EVT Contract are certified by the Bidder for FSP processing.

Yes No


Bidder affirms that that they will work with Authorized Users and their contractors to develop and maintain interfaces between such entities and the Bidder for the purpose of capturing, processing, reporting and reconciling electronic value transfer transactions.

Yes No

Section IV.1.B.4,a & b, Financial Services Processing BankBidder affirms that the bank to be utilized for processing electronic payment transactions is a State or Federal Chartered bank with a branch in New York State.

Yes No

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Section IV.1.B.4,c, Financial Services Processing BankBidder affirms that the bank to be utilized for processing electronic payment transactions has an organization rating of at least 30 as published in the most current issue of Sheshonoff’s Banking Organization Quarterly or a LACE Financial Rating of at least C+.

Yes No

Section IV.1.B.4,d, Financial Services Processing BankBidder affirms that, the necessary steps will be taken upon award of a contract to file with the Office of the State Comptroller a “State of New York Undertaking for Bank Deposits and Assignment Securities” and that such filing will be maintained throughout the term of the contract.

Yes No

Section IV.1.C.2 Financial Statement SummaryBidder affirms to include for the Bidder and any subcontractor, audited or reviewed financial statements for the last three years (or covering the period from the creation of the entity if less than three years), prepared by a CPA in conformance with GAAP.

Yes No

Section IV.1.C.2 Financial Statement SummaryBidder affirms to provide copies of any parent or subsidiary of the Bidder and subcontractors audited or reviewed financial statements for the last three years (or covering the period from the creation of the entity if less than three years), prepared by a CPA in conformance with GAAP, upon request by OGS.

Yes No

Section IV.1.C.2 Financial Statement SummaryBidder affirms to include a primary bank or federal lending institution reference with the name, address and telephone number of the contact person.

Yes No

Section IV.1.D.1, Use of SubcontractorsBidder affirms to comply with the ”Use of Subcontractors” requirements. Yes No

Section IV.2.A.1.a, FSP ServicesBidder affirms to comply at all times during the contract term with applicable state and federal laws.

Yes No

Section IV.2.A.1.a, FSP ServicesBidder affirms to be able to process the following types of electronic payments: (1) Credit/Charge Cards, (2) On-line and Off-line Debit Cards, (3) ACH Credit and Debit Transactions, and (4) Fedwire and similar transactions (including CHIPS and SWIFT).

Yes No

Section IV.2.A.2, Types of Card-Based Electronic PaymentsBidder accepts the four nationally recognized Credit/Charge Cards, Off-line Debit Cards and national and regional On-line Debit Cards networks and other forms of card-based electronic payment devices as may be added during the contract term.

Yes No

Section IV.2.A.3.a, ACH Credit TransactionsBidder is authorized to participate in the ACH Network as a Receiving Depository Financial Institution

Yes No

Section IV.2.A.3.b, ACH Debit TransactionsBidder is authorized to participate in the ACH Network as an Originating Depository Financial Institution. Bidder is authorized to originate ACH Network debit and prenote transactions, convert paper checks to electronic checks and re-originate returned ACH debit transactions.

Yes No

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Section IV.2.A.3.c, Fedwire and Similar Electronic PaymentsBidder is authorized to receive Fedwire and similar electronic payments including CHIPS and SWIFT transactions.

Yes No

Section IV.2.A.6.a, Statutory Notice Requirements for State AgenciesBidder agrees to support processing of transactions in a manner that enables Authorized Users to notify Device Users of any surcharge and/or convenience fee and agrees to support separate transactions for the underlying amount of the transaction and the surcharge/convenience fee.

Yes No

Section IV.2.A.7.a, Payment DevicesBidder agrees to provide and support financial processing services and data exchanges through the listed data capture/transmission devices and other devices as may be added upon mutual agreement of the parties.

Yes No

Section IV.2.A.7.d, Authorized User Unique FieldBidder agrees to support the provision of a 20 character alpha-numeric unique field at the option of the Authorized User.

Yes No

Section IV.2.A.10, ReportingBidder recognizes and agrees to provide only the appropriate reporting information specific to each Authorized User in the format and timeframe required.

Yes No

Section IV.2.D.1, Method of Payment of EVT Contractor FeeBidder agrees to receive reimbursement through (1) Invoicing, (2) Pass through fees to Device Users, (3) Deduction Net-Billing and (4) Direct ACH Debit.

Yes No

Section IV.2.D.5, Authorized User Data OwnershipBidder affirms their ability to meet the data storage requirements outlined in this section. Yes No

Section IV.2.D.6.a, Implementation PlansBidder agrees to the terms and conditions in this section. Yes No

Section IV.2.D.6.d, Implementation PlansBidder agrees to work with Authorized Users to seek approval from associations and governing bodies for use of alternative processing procedures.

Yes No

Section IV.2.D.6.d, Implementation PlansBidder agrees to process payments under alternative processing procedures. Yes No

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Bidder’s Response to Quantifying Technical Requirements

Bidders should refer to the RFP for detailed Technical Requirements and Specifications when preparing their bid responses. The following tables are provided as a convenience for preparing responses. The information provided only summarizes the Technical Requirements and the associated Specifications. The bidder should refer to the detailed requirements as specified within the text of the RFP. Bidders should also review Section VIII. Proposal Evaluation Methodology, for information regarding Program User, Management and Executive review methodology. The following response forms were prepared to facilitate this review process. The order of these sections are grouped by Program User and Management and within both of these categories the section are arranged in order of the RFP. Bidders should prepare their responses to the sections designated as Qualifying Criteria using the Technical Requirements – Qualifying Criteria table. A Microsoft Word® version of these Response Forms are available on the OGS website at http://www.ogs.state.ny.us/purchase/Bidcalendarlv.asp

Quantifying Technical RequirementsIV.1.B.3. Mandatory

Technical Requirement – Working with Contractors SpecificationThe Bidder must agree to work with Authorized Users and their contractors to develop and maintain interfaces between such entities and the Bidder for completing electronic value transfer transactions, producing necessary reports, and supporting reconciliation requirements. Bidder responses must include their procedures and/or requirements for developing and/or approving interfaces identifying any mandatory requirements or approval steps to be followed. These procedures must facilitate the acceptance of electronic value transfer transactions from all Authorized Users and their contractors throughout the term of the EVT Contract.Response

IV.1.D.2 Mandatory

Technical Requirement – Identifying Subcontractors SpecificationThe Bidder must identify in the Bid Proposal all subcontractors that will be used to perform Financial Services Processing (limited to ACH Credit and Debit, Fedwire, CHIPS and SWIFT processing) and to provide Transaction Interface, including summaries of their qualifications, FSP certifications, experience and duties. The EVT Contractor must similarly identify in each Implementation Plan, all subcontractors which will be performing Financial Services Processing (limited to ACH Credit and Debit, Fedwire, CHIPS and SWIFT processing) and providing Transaction Interfaces on the Authorized User’s Implementation Plan.Response

IV.1.E. Desirable

Technical Requirement – Qualifications and Additional Information SpecificationThe Bidder should note other qualifications or additional information that it believes would be of importance to the State in determining that the bidder is qualified. All statements made must be able to be independently verified by the State.Response

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Quantifying Technical RequirementsIV.2.A.1.b.Desirable

Technical Requirement – Additional FSP Services SpecificationThe Bidder should describe its commitment to providing and supporting additional payment options using new technologies as they become commonly adopted technologies, such as Internet payment alternatives (including payments made through e-mails), Stored Value Cards, micro-payments, and any other paperless transactions that may be made available under the EVT Contract at a future time. Additionally the Bidder should discuss its plans, if any to process electronic cash payments initiated through Internet e-mails.

Response

IV.2.A.3.a. Mandatory

Technical Requirement – ACH Credit Transactions SpecificationThe Bidder or its prospective subcontractor(s) must be authorized to participate in the ACH Network as a Receiving Depository Financial Institution (RDFI). The Bidder or its prospective subcontractor(s) must accept through the ACH Network, ACH Credit payments transactions and ACH Credit payment recall requests initiated by Device Users. The Bidder or its prospective subcontractor(s) must conform to all National Automated Clearing House Association (NACHA) operating rules and guidelines in performing ACH Credit transactions. Describe the functionality that the Bidder is proposing for the following requirements that must be provided at the request of Authorized Users: Creating multiple depository accounts for each Authorized User and creating a centralized depository

account for depositing all ACH Credit payments received. Providing on-line inquiry capability for Authorized User inquiries to review the status of a transaction, the

cause for rejection, etc. (“may be developed”, see second paragraph Section IV.2 on page 25). Creating files meeting the Authorized Users’ requirements for content (including, but not limited to, payee

identification information, ACH Credit payment amount and the date and time of authorization and settlement of these payments), transmission frequency and delivery method.


Response

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Quantifying Technical RequirementsIV.2.A.3.b. Mandatory

Technical Requirement – ACH Debit Transactions SpecificationThe Bidder or its prospective subcontractor(s) must be authorized to participate in the ACH Network as an Originating Depository Financial Institution (ODFI). The Bidder or its prospective subcontractor(s) must, at the request of Authorized Users originate ACH network debit and prenote transactions. The Bidder or its prospective subcontractor(s) must, at the request of Authorized Users provide for conversion of paper checks to electronic checks for point-of-sale transactions. The Bidder or its prospective subcontractor(s) must agree to re-originate returned ACH Debit transactions after an initial failed attempt at the request of the Authorized User. All ACH Debit and prenote transactions must be formatted using NACHA file formats. The Bidder or its prospective subcontractor(s) must agree to accept and reformat files received from Authorized Users to the NACHA formats. The Bidder or its prospective subcontractor(s) must also accept returned ACH Debit and prenote transactions from the ACH network and report all returned debit and prenote transactions to the Authorized User. The Bidder or its prospective subcontractor(s) must support processing Recurring and Preauthorized payment arrangements. The Bidder or its prospective subcontractor(s) must conform to all NACHA operating rules and guidelines in performing ACH Debit and prenote transactions. Describe the functionality that the Bidder is proposing for the following requirements that must be provided at the request of Authorized Users: Creating multiple depository accounts, if necessary, for each Authorized User and creating a centralized

depository account for depositing all ACH Debit payments received. Providing on-line inquiry capability for Authorized Users inquiries to review the status of a transaction or a

prenote transaction including the reason for rejection and the associated notification codes. Creating files meeting the Authorized User’s requirements for content (including, but not limited to, payee

identification information, ACH Debit payment amount and the date and time of authorization and settlement of these payments), transmission frequency and delivery method.

Customer assistance to the Authorized User and their Device Users regarding researching payment exception/non-reconciliation conditions and other areas required by Authorized Users.

Response

IV.2.A.3.c. Mandatory

Technical Requirement – Fedwire and Similar Electronic Payments SpecificationThe Bidder or its prospective subcontractor(s) must be authorized to receive Fedwire and other similar electronic payments including CHIPS and SWIFT. The Bidder or its prospective subcontractor(s) must process Fedwire and other similar electronic transactions as received, resolving exceptions as needed to fully process transactions through deposit. Describe the functionality that the Bidder is proposing for the following requirements that must be provided at the request of Authorized Users: Creating multiple depository accounts for each Authorized User and creating a centralized depository account

of depositing all Fedwire and similar electronic payments received. Providing on-line inquiry capability, if available, for Authorized Users to review the status of a Fedwire or

similar electronic payment transaction Creating files meeting the Authorized User’s requirements for content (including, but not limited to, payee

identification information, payment amounts and the date and time of authorization and settlement of these payments), transmission frequency and delivery method.


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Quantifying Technical RequirementsResponse

IV.2.A.4.Desirable

Technical Requirement – Pre-Funding SpecificationThe Bidder should describe the options available to Authorized Users for receiving pre-funded settlements (e.g., funds settled in advance of the established settlement timeframes).Response

IV.2.A.5.Desirable

Technical Requirement – Check Verification, Recovery and Guarantee SpecificationThe Bidder should describe the check verification, check recovery and check guarantee options made available to Authorized Users. Check verification, recovery and guarantee services are intended to be made available through the EVT Contract for electronic checks created through check conversion. The Bidder should provide a description of available services and their procedures and requirements for Authorized Users to use these services. The Bidder should also describe if check verification, recovery and/or guarantee could be made available to other types of ACH Debit transactions.Response

IV.2.A.6.bMandatory

Technical Requirement – Surcharge and Convenience Fee Rules SpecificationThe Bidder must indicate in its proposal, under which condition(s) (i.e., by device type and accepted payment methods), card association rules permit surcharge and/or convenience fees and identify those transaction types which can use this option.Response

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Quantifying Technical RequirementsIV.2.A.7.b.Mandatory

Technical Requirement – Connectivity and Interfaces SpecificationThe Bidder must provide a description of the types of connectivity alternatives available and interfaces supported between the Authorized User and the Bidder’s system, including dial-up, leased lines, ISDN, Host-to-Host (dial-up batch), wireless (cellular) and satellite. The Bidder must provide a detailed description of the connectivity alternatives available to support on-line payment processing from Authorized User Internet applications, identifying if on-line payments will be processed on Authorized Users Web Sites or if another Web Site would need to be accessed to process transactions. The Bidder should indicate if these on-line payment alternatives are available for no additional fee, any addition fees for these services should be reported in Table IV – Fees for Additional Services. For informational purposes, discuss the security features and response times for these connectivity alternatives.Response

IV.2.A.7.cMandatory

Technical Requirement – User Documentation SpecificationThe Bidder must provide requirements for User Documentation including: formatting requirements, record layouts, applicable edits and validations, to be used by Authorized Uses in processing Credit/Charge Cards, On-line and Off-line Debit Cards and ACH Debit transactions, (noting whether a NACHA formatted record is required), to the EVT Contractor for processing.Response

IV.2.A.7.d.Mandatory

Technical Requirement – Authorized User Unique Field Specification The Bidder must describe the planned methods for using an Authorized User Unique Field for each of the data capture/transfer devices listed under Section IV.2.A.7.a, as applicable, and for each type of electronic payment (i.e., Credit/Charge Cards, On-line and Off-line Debits Cards, and ACH Credit and Debit transactions). If available, the Bidder should provide their procedures for using an Authorized User Unique Field.Response

IV.2.A.7.e.Mandatory

Technical Requirement - Testing SpecificationBidder must describe their methodology and procedures for testing acceptance of card and non-card payments through each of the payment devices, including a description of the testing environment and data.Response

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Quantifying Technical RequirementsIV.2.A.8.a. Mandatory

Technical Requirement – Credit/Charge Cards and On-Line/Off-Line Debit Card TransactionsSpecificationThe Bidder must describe:

i. The authorization process for MasterCard, VISA, Discover and American Express branded cards, identifying the method for processing the authorizations, including voice authorization and the expected timeframe for processing/receiving authorizations by device type. Include a description of the authorization process for Recurring and Preauthorized payment transactions. Describe by device type the information which will be provided back to Authorized Users for authorized and declined transactions, including a listing of the declination codes. The Bidder should include descriptions of the required and/or desired data elements (e.g., card number, expiration date, etc.) necessary to perform authorization for non-qualified transactions.

ii. The merchant accounts which would need to be established for multiple Authorized Users and for subdivisions of Authorized Users to facilitate the authorization and settlement process.

iii. The data capture (for all four card types) and settlement process (for MasterCard and VISA) transactions including the expected timeframe for submitting transactions to the MasterCard and Visa networks and crediting investable funds into the account(s) designated by the Authorized User and the ability to provide individual or aggregated transfers to one or more accounts as established by the Authorized User. Include a description of the data capture and settlement process for Recurring and Preauthorized payment transactions. Note, the Bidder must also complete Table XI - Funds Availability.

iv. Settlement and Close-out procedures including but not limited to the following:1. Whether terminals are automatically batch closed at a predetermined time, or if they are manually

closed, or both.2. If settlement can be made by either ACH or Fedwire and identify the procedures. The Bidder must

also identify the associated costs in Table IV - Fees for Additional Services.3. Whether settlement amounts can be listed separately for each Credit/Charge Card and On-line Debit

Card network separately on the bank statement or as a lump sum.v. Transaction Posting Procedures including but not limited to the following:

1. The levels of detail available and how the Bidder proposes to reconcile transactions.2. The ability and mechanism for reconciling transactions to summary report information.3. The nature and timing of the confirmation that the Authorized User will receive upon presentation of

an electronic payment (i.e., does the bidder have same day, on-line, reporting capability by following level of detail: Individual Device Number, Batch Level, Total or Consolidated, and Individual Transactions by the Unique Field).

vi. The procedures for detecting, tracking, reporting and resolving duplicate, erroneous or contested payments.vii. The procedures for preventing, detecting and reporting fraudulent payments, including conditions under

which Authorized Users may deviate from association rules governing non-discrimination of card acceptance.

viii. If Interchange and Assessment, Authorization and Processing Fees or other fees are charged to the Authorized User for declined transactions and for zero amount transactions.

ix. The difference, if any, between the Interchange and Assessment Rates and Authorization and Processing Fees for cash advances compared to purchases.

x. The process, procedures and available services for accepting and holding transactions from Device Users and Authorized Users for processing at a specified future date (i.e., warehousing of a payment transaction until a specified transaction initiation date).

Response

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Technical Requirement – ACH Credit TransactionsSpecificationThe Bidder must describe the services available to support the requirements as specified in Section IV.2.A.3.a, ACH Credit Transactions, including, but not limited to, the following:

i. The process, procedures and controls for receiving, processing and reporting ACH Credit Transactions including the relevant timeframes, cutoffs, and controls that will prevent unauthorized ACH Credit recall processing.

ii. The process for handling ACH Credit exceptions.iii. The procedures for detecting, tracking and resolving duplicate, erroneous or contested payments.iv. The settlement process for ACH Credit transactions including the expected timeframe for crediting

investable funds into the account as designated by the Authorized User and reporting proceduresv. If additional accounts need to be established to facilitate ACH Credit Transactions.

vi. The procedures for preventing, detecting and reporting fraudulent payments.Response

IV.2.A.8.c.Mandatory

Technical Requirement – ACH Debit TransactionsSpecificationThe Bidder must describe the services available to support the requirements as specified in Section IV.2.A.3.b, ACH Debit Transactions, including, but not limited to, the following:

i. The process, procedures and controls for receiving transactions from Authorized Users, originating ACH Debit transactions, processing and reporting ACH Debit and prenote transactions, and include the relevant timeframes, cutoffs, and controls that will prevent unauthorized ACH Debit transactions. Include in this description processing of Recurring and Preauthorized payment transactions.

ii. The process for handling rejections, notifications and resubmission procedures.iii. The procedures for detecting, tracking and resolving duplicate, erroneous or contested payments.iv. The settlement process for ACH Debit transactions including the expected timeframe for crediting

investable funds into the account as designated by the Authorized User and reporting proceduresv. If additional accounts need to be established to facilitate ACH Debit Transactions.

vi. The procedures for preventing, detecting and reporting fraudulent payments.vii. The process, procedures and available services for accepting and holding transactions from Device Users

and Authorized Users for processing at a specified future date (i.e., warehousing of a payment transaction until a specified transaction initiation date).

Response

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Quantifying Technical RequirementsIV.2.A.8.d.Mandatory

Technical Requirement - Fedwire, CHIPS and SWIFT TransactionsSpecificationThe Bidder must describe the services available to support the requirements as specified in Section IV.2.A.3.c, Fedwire and Similar Electronic Payments, including, but not limited to, the following:

i. The process, procedures, and controls for receiving and processing Fedwire, CHIPS and SWIFT Transactions including the relevant timeframes, cutoffs, and controls.

ii. The process for handling Fedwire, CHIPS and SWIFT exceptions.iii. The procedures for detecting, tracking and resolving duplicate, erroneous or contested payments.iv. The settlement process for Fedwire, CHIPS and SWIFT transactions including the expected timeframe for

crediting investable funds into the account as designated by the Authorized User and reporting procedures.v. If additional accounts need to be established to facilitate Fedwire, CHIPS and SWIFT Transactions.

vi. The procedures for preventing, detecting and reporting fraudulent payments.

Response

IV.2.A.8.e.Mandatory

Technical Requirement – Memberships, Applications and SetupSpecificationDescribe any membership, application or setup procedures that an Authorized User must complete with either the EVT Contractor or third parties in order to initiate transactions under a Payment Program.

Response

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Quantifying Technical RequirementsIV.2.A.9.a.Mandatory

Technical Requirement – Chargeback, Refund and AdjustmentSpecificationThe Bidder must describe the following information (including appropriate sections of Association Rules, diagrams and forms as appropriate):i. The record keeping responsibility of Authorized Users for face-to-face and non-face-to-face transactions

including the type of information to be retained, method of storing data, and the length of time it must be retained, by device type;

ii. The options available for having the EVT Contractor retain information and records on behalf of Authorized Users to address chargebacks, refunds and adjustments and having the EVT Contractor address chargebacks with the various Credit/Charge Card associations on behalf of Authorized Users using these retained information and records including the use of onscreen signatures;

iii. The resolution process to be followed including, identifying the role of each entity involved in the process and the required timeframes for responding to requests;

iv. The ability of the EVT Contractor to utilize the Unique Number to address chargebacks;v. When a transaction is considered final and maximum timeframes for Authorized Users retaining records;vi. The various steps involved in handling a disputed transaction. The outline must reflect the actions and

responsibilities of the card holder, card issuer, accepting financial institution, the EVT Contractor and the Authorized User;

vii. The notice or advice provided for chargebacks, refunds and adjustments; viii.The extent to which the Authorized User could develop a rule to provide to the EVT Contractor so that the

EVT Contractor could respond to a pre-defined set of retrieval request without requiring additional information from the Authorized User;

ix. The extent to which the Authorized User could utilize jurat and no-refund policy statements for both face-to-face and non-face-to-face transactions to prevent chargebacks, refunds and adjustments, providing suggested text;

x. Whether the Authorized User could develop a list of items that could not be charged back. (i.e., fishing licenses or taxes);

xi. The maximum time limit for a research request by the Authorized User;xii. The circumstances under which Authorized Users will be charged a research fee.xiii.The assistance that the Bidder would provide for the collection of unprocessed items (e.g., incorrect account

number);xiv.The length of time individual sales records are retained by respective credit card companies; andxv. The process to be used to handle erroneous ACH and Fedwire transactions, refunding, recall requests, etc.xvi.The circumstances, if any, under which Authorized Uses would be charged additional chargeback fees for

experiencing a higher than normal chargeback rate. Response


Technical Requirement – Chargeback, Refunds and Adjustments by Payment TypeSpecificationThe Bidder must describe the mechanism and rules for chargebacks, refunds, and adjustments, as applicable, for each of the following:

i. Credit/Charge Card Processing (MasterCard, VISA, Discover Card, American Express branded cards)ii. Debit Cards (On-line & Off-line)

iii. Automated Clearing House (ACH) Credit and Debit transactions.iv. Fedwire and other similar electronic payments including CHIPS and SWIFT.

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IV.2.A.10.a.Mandatory

Technical Requirement – Transaction Reports and Inquiries

SpecificationIt is anticipated that in most cases daily and monthly reporting will be necessary to provide the information needed to post settled funds to the appropriate account(s) and to reconcile deposits. It is important that the Bidder demonstrate its flexibility and capability of providing varied report formats to meet the needs of Authorized Users (e.g., including additional data such as the Authorized User Unique Field). The Bidder must describe its transaction reporting process and the types of reports it can provide, including mandatory daily and monthly reports for the following types of transactions: MasterCard and Visa Credit/Charge Cards, On-line and Off-line Debit Cards, ACH Debit and Credit and Fedwire, SWIFT and CHIPS. The Bidder must indicate what services will be provided to support the reporting of transactions for American Express and Discover branded cards. When applicable it is preferred that reporting functions for these cards be provided in reports consolidated with other FSP transactions. In these descriptions, the Bidder should demonstrate its flexibility and capability to address the varying requirements and reporting needs, including, but not limited to, the following:

The method for making reports available to Authorized Users (e.g., printed, on-line). Accessibility to reports (i.e., on-line such as dial-up or through secure Internet applications)

including access requirements (e.g., hardware and software requirements, methods of identifying specific transactions), and access to historical data (i.e., data retention).

The timing for providing such reports (i.e., daily/monthly reports will be delivered or made available by what time).

The services available to Authorized Users to support inquiries regarding individual transactions.

Response

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Technical Requirement – Summary Reports for Control AgenciesSpecificationThe EVT Contractor will be required to provide summary reports to control agencies for purposes of supporting

program monitoring, benchmark adjustments, etc.

Fraud ReportingThe Bidder should identify the method and procedures for reporting fraud including detection, prevention etc., and as applicable provide sample reports.

Monthly Summary ReportsThe EVT Contractor will be required to provide a monthly summary report to the Control Agencies, including OGS and the EVTA. This report must summarize the activity (transactions, charges etc.) by each Authorized User agency including a summary for all State Agencies. The Bidder must include sample reports and identify the method and timing for providing such reports.

The EVT Contractor or its subcontractor(s) will be required to provide status reports of the development of Qualified Applications.

Semi-Annual ReportingThe EVT Contractor will be required to provide a semi-annual report to OGS and the EVTA to support rate adjustments based on the six-month review period. This review will be conducted to determine if adjustments are required for Blended Rates and Bundled Fees, to determine the Statewide Aggregate Discount and the average transaction value for each merchant ID, (refer to Rate Adjustments – Six Month Review on Page 43). This report must include the actual statewide usage rates during the previous six months under the EVT Contract for all required variables (e.g., number of qualified and non-qualified transactions, number of transactions by card type, etc.) included in the successful Bidder’s Blended Rate and Bundled Fees formula provided in Table V – Blended Rates and Bundled Fees. In addition, the report must include the aggregate total number of Blended Rates and Bundled Fees transactions performed during the previous six months to determine if Authorized Users will receive a volume discount. The report must also identify for each merchant ID the average value of Credit/Charge and Off-line Debit Card transactions performed in the previous six months.. The EVT Contractor must also provide each Authorized User that has elected to use the Blended Rates and Bundled Fees with the adjusted Blended/Bundled fees for each six-month period, the Aggregate Discount that applies to each Merchant ID account for the Authorized User, and the Authorized User’s Average Transaction Value.

Annual ReportingThe EVT Contractor shall provide annualized summary reports to be submitted to the OGS, Procurement Services Group, Corning Tower, 38th Floor, Empire State Plaza, Albany, NY 12242, no later than the 15th of the month following the close of the year identified by OGS. Purchases by political subdivisions and others authorized by law shall be reported separately at that time.

Response


Technical Requirement – Ad-Hoc ReportsSpecificationThe Bidder must agree to provide ad-hoc reports and discuss the procedures for producing such reports (i.e., report types not specified in this section) as requested by an Authorized User.

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IV.2.A.11Desirable

Technical Requirement – Future TechnologiesThe Bidder should provide a summary of the Bidder's investment and commitment to developing future electronic processing technology and describe how the bidder intends to support technological advancements to Authorized Users. This summary should address, but not be limited to, any new technologies that the bidder is currently aware of and may be working on.

Response

IV.2.A.12.Desirable

Technical Requirement – Additional Services (other than FSP)SpecificationThe response should include a summary of the Bidder’s ability to provide the following additional services, and a description of those services that the Bidder is able to provide:a.Voice data capture (e.g., enabling small volume Authorized Users to process credit/charge cards and off-line

debit cards transactions via the telephone without requiring manual follow-up with paper transaction documentation).

b.Address Verification (e.g., provide Authorized Users with the option to perform address verifications for authorizing credit/charge cards and off-line debit card transactions).

c.Processing of international Credit/Charge Card and Off-line Debit Card transactions.d.Services related to reprogramming of Authorized Users’ Transaction Interfaces (i.e., point-of-sale terminals,

peripheral devices and software packages).e.Other additional services.Response

IV.2.B.1.a Technical Requirement – Transaction Interface Hardware – Point-of-Sale Terminals

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Quantifying Technical RequirementsMandatory Specification

Describe the types of point-of-sale (POS) terminals that the Bidder will provide. Include in the description the functional attribute of the terminals offered (e.g., capacity, transmission speed, functionality of embedded software), their condition (e.g., new, refurbished) and any supplies required. All bulleted requirements other than those marked as “Desirable” must be addressed.

IV.2.B.1.a.iMandatory

Technical Requirement – Type I POS TerminalsSpecificationThe Bidder must provide stand alone POS terminals which are configured to process Credit/Charge Cards and are upgradable to accept peripheral PIN pads for On-line Debit Card processing, including the following or equivalent:

Nothing Integrated – supports items below as peripherals Integrated printer Integrated PIN pad for On-line Debit Card processing Integrated Signature pads for Electronic Signature Capture Integrated Smart Card reader/writers Integrated Contactless Payment reader Integrated Check reader (Desirable)

(e.g. Hypercom products – Optimum T4210 & Artema Desk, VeriFone products MX800 series)Response

IV.2.B.1.a.iiMandatory

Technical Requirement – Type II POS TerminalsSpecificationThe Bidder must provide POS Terminals which can be integrated with other POS terminals, electronic

cash registers and local area networks, are configured to process Credit/Charge Cards and are capable or upgradable to support the following peripherals:

Integrated PIN pads for On-line Debit Card processing Integrated Signature pads for electronic signature capture Integrated Smart Card reader/writers (Desirable) Integrated Contactless Payment reader (Desirable) Integrated Check reader (Desirable)

Response

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Quantifying Technical RequirementsIV.2.B.1.a.iiiMandatory

Technical Requirement – Type III POS TerminalsSpecificationThe Bidder must provide wireless POS terminals that are configured to process Credit/Charge Cards, including the following or any combination of the following:

Integrated printer. Integrated PIN pad for On-line Debit card processing Integrated Smart Card reader/writer Integrated Signature pad for electronic signature capture Integrated Contactless Payment reader

Response

IV.2.B.1.a.ivDesirable

Technical Requirement – Type IV POS Terminals - Additional Point-of-Sale TerminalsSpecificationDescribe any additional types of POS terminals that the Bidder will provide. Include in the description the functional attribute of the terminals offered (e.g., capacity, transmission speed, functionality of embedded software), their condition (e.g., new, refurbished) and any supplies required. Response

IV.2.B.1.b.Mandatory

Technical Requirement – Peripheral DevicesSpecificationDescribe the types of peripheral devices that the Bidder will provide. Include in the description the functional attribute of the devices (e.g., specifications, functionality of embedded software), their condition (e.g., new, refurbished) and any supplies required. Indicate which devices will be provided for no fee.

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Quantifying Technical RequirementsIV.2.B.1.b.iMandatory

Technical Requirement – Device Type I, PrintersSpecificationFor each proposed type of POS terminal capable of accepting a printer as a peripheral device, if any, the Bidder must provide compatible devices including the following, or equivalent:

Roll printer, Sprocket printer, and Thermal printer.

Response

IV.2.B.1.b.iiMandatory

Technical Requirement – Device Type II, Countertop PIN Pad(Mandatory if providing POS terminals without integrated PIN pads)SpecificationFor each proposed type of POS terminal capable of accepting a countertop PIN pad as a peripheral device, if any, the Bidder must provide compatible devices including the following, or equivalent:

Countertop PIN pads (e.g., Verifone “Secura” or Hypercom “Artema S10”).Response

IV.2.B.1.b.iiiMandatory

Technical Requirement – Device Type III, Handheld PIN Pad (Mandatory if providing POS terminals without integrated PIN pads)SpecificationFor each proposed type of POS terminal capable of accepting a handheld PIN pad as a peripheral device, if any, the Bidder must provide compatible devices including the following, or equivalent:Handheld PIN pad (e.g. NURIT 293 or Hypercom S9)Response

IV.2.B.1.b.ivMandatory

Technical Requirement – Device Type IV, Check ReaderSpecificationThe Bidder must provide the following, or equivalent:

Check reader (e.g. MagTek Mini MICR Check reader with built in card reader (e.g. MagTek Mini MICR w/ optional card reader or RDM 6014i

check imager)Response

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Quantifying Technical RequirementsIV.2.B.1.b.vMandatory

Technical Requirement – Device Type V, Smart Card Reader/WriterSpecificationThe Bidder must provide the following, or equivalent:

Smart Card reader/writer

Response

IV.2.B.1.b.viMandatory

Technical Requirement – Device Type VI , Signature Capture DeviceSpecificationThe bidder must supply the following, or equivalent, for electronic signature capture

Signature Tablet On-screen signature capture device

Response

IV.2.B.1.b.viiMandatory

Technical Requirement – Device Type VII, MiscellaneousSpecificationThe Bidder must provide all of the following, or equivalent:

Magnetic stripe reader, Card imprinter, and Card reader.

Response

IV.2.B.1.c.Desirable

Technical Requirement – Additional Peripheral Devices SpecificationDescribe any additional types of peripheral devices that the Bidder will provide. Include in the description the functional attribute of the devices, their condition (e.g., new, refurbished) and any supplies required.

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Quantifying Technical RequirementsIV.2.B.1.c.i.Desirable

Requirement – Device Type VIII, OtherSpecificationThe Bidder should describe other types of the peripheral devices (e.g., signature tablets) which it is proposing to make available to Authorized Users.Response

IV.2.B.1.d.Mandatory

Technical Requirement - SuppliesSpecificationDescribe the hardware supplies (for both POS terminals and peripheral devices), which the Bidder will provide, include a description of order fulfillment timeframes and the ability of the Bidder to accept preorders. Indicate which supplies will be provided for no additional fee when the associated hardware is purchased (the cost for all supplies is assumed to be included with leased and rented equipment). Response

IV.2.B.1.e.Mandatory

Technical Requirement - WarrantySpecificationProvide warranty information and the warranty period for each of the POS terminals and peripheral devices, which the Bidder is proposing to provide including the initial and extended terms. Indicate warranties that will be provided for no additional fee when the hardware is purchased, leased and rented.Response

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Quantifying Technical RequirementsIV.2.B.1.f.Mandatory

Technical Requirement – MaintenanceSpecificationThe Bidder must provide a toll-free number for maintenance assistance (the Bidder should describe their help-desk services in response to Section IV.2.C.2, Help-Desk Services). The Bidder must repair or replace Transaction Interface hardware within 24 hours and provide next business day on-site assistance as needed. Describe the maintenance services associated with the POS terminals and peripheral devices that the Bidder is proposing to provide. Information should include, but not be limited to:

preventative maintenance procedures, average response time to a remedial maintenance request, average on-site repair time for devices, procedures and time frames for utilizing replacement equipment, number of service staff available, and experience of services staff

Indicate maintenance services that will be provided for no additional fee when the hardware is purchased, leased and rented.

Response

IV.2.B.1.g.Desirable

Technical Requirement – CreditsSpecificationDescribe the Bidder’s credit policy for Transaction Interfaces purchased by Authorized Users and returned toward the purchase of upgraded Transaction Interfaces.

Response

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Quantifying Technical RequirementsIV.2.B.2.aMandatory

Technical Requirement – Software Functionality and FeaturesSpecificationBidder must provide a description of each software product that will be made available, including:Software Functionality and Features

The Bidder must describe the offered software product(s) and their functionality and features (e.g., processing capabilities, data-entry verification, ability to support additional fields, etc.) for each of the following payment devices:

i. Credit/Charge Cards and Offline Debit Cards (Mandatory) Authorization, Capture and Settlement Online and Batch Processing

ii. Credit/Charge Cards, Offline Debit Cards and Online Debit Cards (Desirable) Online Transaction Status Inquiry Online Reporting

iii. Electronic Checks, ACH Debit Transactions (Desirable) Transaction Initiation Online and Batch Processing Online Transaction Status Inquiry Online Reporting Receipt Notifications, etc.

iv. ACH Credit, Fedwire and Similar Transactions (Desirable) Online Transaction Status Inquiry Online Reporting

v. Other Electronic Payment Applications (e.g., Smart Cards) (Desirable) Authorization, Capture and Settlement Online and Batch Processing Online Transaction Status Inquiry Online Reporting

Response

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Quantifying Technical RequirementsIV.2.B.2.b.Mandatory

Technical Requirement – Software Environment and System RequirementsSpecificationThe Bidder must identify the supported environments and system requirements (i.e., minimum recommended hardware configurations for each software product offered for each of the following environments:

i. PC-Based Applications (e.g., Windows , Macintosh, other)ii. Networked Users (e.g., NT based, UNIX, Macintosh, other)iii. Internet Website Software

Self–hosted website transaction support (i.e., enable an Authorized User to offer transactions over the Internet)

Hosting service website transaction support (i.e., enable an Authorized User that hosts multiple websites to offer transactions for each of the hosted websites)

The Bidder is required to provide one full set of documentation (i.e., installation documentation, detailed operation and user documentation and user guide) and sales literature to augment the information provided in this section. The Bidder must indicate which software will be provided for no fee.

Response

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Quantifying Technical RequirementsIV.2.B.2.c.Mandatory

Technical Requirement – Software LicensesSpecificationDescribe the software licensing agreements available to Authorized Users for each software products to be provided by the Bidder. It is anticipated that site licenses will be preferred by the majority of Authorized Users. For the purposes of the EVT Contract, “site” is defined by a physical location (e.g., building, street address, etc.) which houses computer systems operated by or on behalf of the Authorized User. Although site licenses are the anticipated choice, the Bidder is required to provide technical information on other types of licenses they offer including: individual PC licenses, multiple PC license(s) and concurrent user based licenses. Each type of software license must provide, at no additional charge, the ability to:

relocate software to a new site designated by the Authorized User at its discretion, utilize the software for all work processed at the Authorized User’s designated site, test software at a disaster recovery site with out EVT Contractor pre-authorization, and transfer software rights and contract terms and conditions to another Authorized User for purposes of

consolidating workloads.

Response

IV.2.B.2.d.Mandatory

Technical Requirement – Technical Support and Software MaintenanceSpecification

i. Technical SupportDescribe the ongoing technical support services for the installation and testing new software products, upgrades, interim releases updates and technical patches.

ii. Software MaintenanceThe Bidder is required to support all Transaction Interface software products provided. The Bidder is required to present their terms and conditions (standard software maintenance contracts should be attached) related to the on-going support of software products, but not be limited to: provisions for upgrades, interim releases and technical patches, and fixes, and operation of a toll free help line for online maintenance/technical support via direct telephone contact

(maximum 4 hours response time during the course of normal business day, available five (5) days per week),

and Internet access (available seven (7) days per week and 24 hours per day), onsite maintenance/technical support within a 24 hour period or next business day timeframe, source code release provisions under extenuating circumstances.

Indicate which, if any, of these services are available for no additional fee.

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IV.2.B.2.e.Mandatory

Technical Requirement - WarrantySpecification

i. Describe warranty terms and conditions and the warranty period.ii. Describe any extended warranties, including the time frames for these warranties, and any other warranties

offered by the Bidder.Response

IV.2.B.3.Mandatory

Technical Requirement – Incidental Consulting ServicesSpecificationThe Bidder must provide analysis, recommendations, design, programming expertise and/or on-site assistance to Authorized Users relating to installation or integration of Transaction Interface hardware or software. Also, the Bidder must develop and maintain interfaces between the Authorized User (including any vendors of the Authorized User) and the Bidder to facilitate payment processing. Describe the Incidental Consulting Services and the various job classifications to be provided by the Bidder. For each job classification proposed, provide a job description and the average number of years of experience for employees serving in these classifications. Indicate if any of these services are available for no fee. Response

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Quantifying Technical RequirementsIV.2.C.2.a.Mandatory

Technical Requirement – Help Desk Services and SupportSpecificationThe Bidder must provide Help Desk Services for Authorized Users on a twenty-four (24) hours per day, seven (7) days per week basis, including holidays, in order to address all Authorized User customer assistance needs and technical issues for submitting electronic payment transactions, including assistance with Transaction Interfaces. The Authorized User assistance line(s) should be a toll free number(s) which provide direct assistance, intake service with follow-up resolution and requests for on-site assistance. Additionally, the EVT Contractor must maintain and provide each Authorized User with a list of the names and business phone numbers of the customer assistance staff (e.g., Contract Manager, Technical Assistant, Customer Assistant) to be available during normal business hours.

i. The Bidder must describe the system to be used in providing Help Desk Services to Authorized Users. This description should include but not be limited to: access to the system, number of lines available and staffing levels and experience, blockage rates and not to exceed times on hold.

ii. The Bidder must describe the Help Desk Services to be made available to Authorized Users. This description must include the Credit/Charge Card transaction authorization, verification and inquiry services for Bidder provided Transaction Interfaces (Hardware and Software) and all other customer assistance services.

iii. The Bidder must identify the types of issues the Help Desk can respond to on a twenty-four (24) hours per day, seven (7) days per week basis and the anticipated average response time for each of these issues. Transaction authorization and verification must be available on a twenty-four hours per day, seven (7) day per week basis, including holidays.

iv. The Bidder must identify if intake is performed by Help Desk staff or a voice mail intake system.

v. The Bidder must provide to the toll free number(s), and the list of names and phone numbers of the customer assistance staff available to OGS and EVTA.

Response

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Quantifying Technical RequirementsIV.2.D.2.Mandatory

Technical Requirement - InvoicingSpecificationUnless otherwise agreed upon in the Implementation Plan, all fees for Financial Processing Services and Transaction Interfaces must be separately invoiced on a monthly basis to each participating Authorized User. Note: see Appendix B, clauses 62 - 64. Unless otherwise agreed upon, fees may not be deducted from settlement proceeds for Authorized User using the EVT Contract.

The Bidder must describe the invoicing process and provide examples of invoices for Financial Processing Services and Transaction Interfaces. Invoices should include at least the following level of detail:

a. Financial Services Processing (provided at Merchant ID level for each Authorized User)i. Detailed Transaction Invoicing (i.e., non blended/bundled fee users): Credit/Charge Cards and Off-Line

Debit Cards, identify the number of qualified and non-qualified transactions by card type and the associated Interchange and Assessment (MasterCard and Visa only), Authorization, Processing, and Additional Services fees, and any additional fees for pre-funding.

ii. Blended/Bundled Invoicing: Credit/Charge Cards and Off-Line Debit Cards, identify the number of transactions by card type and the associated blended/bundled fees including any statewide aggregate discount applied and fee for pre-funding.

iii. On-Line Debit Cards, identify the number of transactions by network and the associated flat and/or percentage fee.

iv. ACH Transactions, identify the number of debit transactions, credit transactions, and reporting and other services and the associated fees.

v. Fedwire, CHIPS and SWIFT Transactions, identify the number of Fedwire, CHIPS and SWIFT Transactions and the associated processing, reporting and other services fees.

vi. Electronic Check Processing, identify the number of check conversions, verifications, recoveries and guarantees and other services and the associated fees.

vii. Other Financial Services Processing fees including help desk, training, marketing, supplies, etc..b. Transaction Interfaces, Hardware (provided at Merchant ID level for each Authorized User)

i. Point-of-Sale Terminals, identify the number of units and associated purchase, lease or rental fee and any other services provided including warranties and the associated fees, including any applicable quantity discounts.

ii. Peripheral Devices, identify the number of units and associated purchase, lease or rental fee and any other services provided including warranties and the associated fees, including any applicable quantity discounts.

iii. Supplies, identifying the number of units and associated fees.c. Transaction Interfaces, Software (provided at Merchant ID level for each Authorized User)

i. Single User PC or Other Platform Based software, identify the number of units and associated licensing, upgrade and other services and the associated fees, including any applicable quantity discounts.

ii. Networked User PC or Other Platform Based software, identify the number of units and associated licensing, upgrade and other services and the associated fees, including any applicable quantity discounts.

iii. Website Software, identify the number of units and associated licensing, upgrade and other services and the associated fees, including any applicable quantity discounts.

d. Transaction Interfaces, Incidental Consulting Services (identified by each Payment Program for each Authorized User)i. Personal Services identified by job classification the number of hours and associated hourly rates.

Response

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Quantifying Technical Requirements

IV.1.C.1.Mandatory

Technical Requirement – Executive SummarySpecificationThe Bidder shall provide an executive summary including profiles of its operations and qualifications. These profiles shall outline the Bidder’s and its prospective subcontractors’ operations and technical qualifications and experience relevant to the performance of the contract. These profiles should include: locations (including but not limited to primary location, additional processing centers, backup sites, etc.), corporate and organizational structures using organizational charts, areas of expertise and overall experience with Financial Services Processing and Transaction Interfaces. The executive summary shall also include an overview, including diagrams, to their approach to providing service requirements contained herein, highlighting the strengths and capabilities of the Bidder to provide such services.Response

IV.1.C.3Mandatory

Technical Requirement – Network/Physical PlantSpecificationA clear and comprehensive description of the Financial Services Processing network that is proposed for use. Included in this description shall be information concerning the ownership, capacity, backup, recovery, redundancy and performance record of the network. Submit any diagrams or charts that may be appropriate.

Include the following information in the proposal for the proposed Credit/Charge Card network:a. Ownership: detail whether the network is proprietary or subcontracted, provide the name and address of

subcontractor(s). b. Capacity: provide the number of transactions per second currently being performed and the maximum

number of transactions per second that the network is capable of performing.c. Redundancy: describe any redundancy within the network. d. Performance: provide the total number of hours of downtime the network has had in the last year and the

average annual downtime over the last three (3) years. Separately state the number of hours of downtime included in last year’s figure that was planned downtime for maintenance and those hours that were unplanned downtime.

Include the following information in the proposal related to On-Line Debit card processing:e. The national On-Line Debit card networks which the Bidder is currently processing transactions through,

identifying which national networks the Bidder is proposing to utilize under the EVT Contract.f. The regional and local On-Line Debit card networks which the Bidder is currently processing transactions

through, identifying which regional and local networks the Bidder is proposing to utilize under the EVT Contract.

Response

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IV.1.C.4.Mandatory

Technical Requirement – Relevant Work ExperienceSpecificationThe proposal must list and describe the Bidder’s any prospective subcontractors’ relevant work experience in specific projects and contracts involving provision of Financial Services Processing and Transaction Interfaces to large governmental entities (i.e., federal or state governments or their subdivisions). Descriptions should include the size, scope and duration of each project, specifying the time period the work was performed. If the Bidder has no prior large governmental experience, the Bidder should furnish information for similarly sized large commercial entities, small governmental entities (i.e., local government or their subdivisions) or similarly sized small commercial entities.Response

IV.1.C.4.Mandatory

Technical Requirement - ReferencesSpecificationThe Bidder and all prospective subcontractors must provide a minimum of three, and a maximum of five, references for Financial Services Processing and Transaction Interfaces including contact name, current phone number, address of customer or client account and a brief description of the scope of services performed and the time period the work was performed. The order of preference for the types of projects for the references are: large governmental entities, large commercial entities, small governmental entities and small commercial entities.Response

IV.1.C.5Mandatory

Technical Requirement – Key Personnel and Organizational ResourcesSpecificationThe Bidder must document its ability to provide qualified staff and other personnel resources to successfully provide the required services. The following information regarding qualifications of key Bidder and prospective subcontractor personnel must be provided: Key personnel should be listed in order of their position of responsibility relative to electronic payment

processing. Relevant qualifications, business experience and technical expertise for all key personnel should be

provided. This section should identify how the relevant qualifications or special expertise of each individual will enhance performance of the EVT Contract. Separate resumes outlining certifications held, educational qualifications and relevant experience for the past three years for key personnel should be included as an attachment.

Specific functions for each key personnel member and how they will perform including the percentage of time that will be devoted to the EVT Contract and the degree of management, oversight or direct supervisory responsibility that each individual will have under the EVT Contract shall be provided by the Bidder.

The Bidder may not replace identified key personnel without prior written notification to OGS Procurement Services Group (PSG) at the address listed in Section II.1 of this RFP. Any replacement must have equal or greater qualifications and experience than the individual replaced.

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Response

IV.2.C.1.Mandatory

Technical Requirement – TrainingSpecificationThe EVT Contractor shall develop and implement a “New York State” specific training program covering initial and follow-up training. On-site training at locations designated by the Authorized User must also be offered and shall be provided to employees designated by the Authorized User. For purposes of this RFP, the Bidder shall provide details and confirm that the training program to be provided will accomplish the goals of providing Authorized User with: A thorough understanding of Credit/Charge Card and Debit Card acceptance and processing and ACH

Credit and Debit and Fedwire transactions. An understanding of Authorized User reports and reconciliation procedures. Guidance in developing internal reports. The ability to install and utilize Transaction Interface hardware to be provided by the Bidder. The necessary information to install and utilize Transaction Interface software provided by the Bidder. An understanding of security requirements, refund and chargeback procedures and fraud

prevention/detection.Response

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IV.2.C.1.a.Mandatory

Technical Requirement – Implementation TrainingSpecificationThe Bidder must describe the types of training to be made available to Authorized Users throughout the term of the EVT Contract related to implementation of Payment Programs developed using the EVT Contract. This description should include training for:

i. installation and use of Transaction Interface hardware provided by the Bidder.ii. installation and use of Transaction Interface software provided by the Bidder.

Descriptions should include, but not be limited to the following components: scope and length of sessions, setting (e.g., on-site, off-site, teleconferencing, video-conferencing, Internet-based), and curriculum. The Bidder must describe any training materials that will be made available to Authorized Users.

The fee for providing this training, including materials is presumed to be included in the FSP fees. If there is an additional charge for providing this training, The Bidder must identify such charges in Table IV - Fees for Additional Services. Fees for on-site training should be exclusive of travel expenses for which the EVT Contractor will be reimbursed separately.Response

IV.2.C.1.b.Mandatory

Technical Requirement – On-Going TrainingSpecificationThe Bidder must describe the types of standard and additional on-going Financial Services Processing and Transaction Interface training to be made available to Authorized Users throughout the term of the EVT Contract. Standard on-going training is any post-implementation training made available to Authorized Users for no additional fee, Additional on-going training is any post-implementation made available to Authorized Users for an additional fee These descriptions should include, but not be limited to, the following components: scope and length of sessions, setting (e.g., on-site, off-site, teleconferencing, video-conferencing, Internet, etc.) and curriculum. The Bidder must describe any training materials that will be made available to Authorized Users.

The fee for additional ongoing training, including materials will be negotiated between the EVT Contractor and the Authorized User, except in no case may the fee exceed the EVT Contractors standard fees. The Authorized User will be responsible for all travel related costs up to state rates.Response

IV.2.C.1.c.Mandatory

Technical Requirement – User Manuals and System DocumentationSpecificationThe Bidder must provide each Authorized User with the necessary user manuals and system documentation related to Financial Services Processing and Transaction Interfaces. The Bidder must describe the user manuals and system documentation that will be made available to Authorized Users.

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Response

IV.2.C.3.Mandatory

Technical Requirement – Marketing and Miscellaneous SuppliesSpecificationThe Bidder must furnish a description of all marketing and miscellaneous supplies that will be made available during the entire term of the EVT Contract. The cost for these services shall be presumed to be included in the FSP and/or Transaction Interface fees. The Bidder must identify any services for which there is an extra charge and delineate such extra charges in Table IV - Fees for Additional Services.

IV.2.C.3.aMandatory

Technical Requirement - MarketingSpecificationThe Bidder must describe the services that will be made available to Authorized Users for promoting and marketing electronic payment programs to Device Users including the provision and use of signage, logos, inserts for mailings, etc.Response

IV.2.C.3.b.Mandatory

Technical Requirement – Miscellaneous SuppliesSpecificationThe Bidder must describe what Financial Services Processing supplies are necessary to support transactions. Note the Bidder should not duplicate Transaction Interface supplies identified in Section IV.2.C.Response

IV.2.D.3.a.Mandatory

Technical Requirement – Security PlanSpecificationThe Bidder must provide a security plan to ensure the anonymity of Device User information and that access to such information is controlled and restricted to authorized personnel only, as well as procedures to secure point-of-sale terminals, transactions on the Internet, transaction receipts and sale reports. i. Include a description of pre-employment verification procedures, employment agency screening and

security awareness training for employees. ii. Include a description of relevant logical/system security software and administrative rules including data

encryption.

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Response

IV.2.D.3.b.Mandatory

Technical Requirement – Fraud PreventionSpecificationThe Bidder must also indicate the methods used to detect report and prevent fraud, theft, and all other security breaches, including examples of detection reports of unauthorized attempts.Response

IV.2.D.3.c.Mandatory

Technical Requirement – Internal Control PlanSpecificationThe Bidder must provide an Internal Control Plan, describing the checks and balances for all aspects of the services provided; including internal controls for all automated and manual processes, and controls to protect against unauthorized access to personal information. This plan must include any and all services provided by subcontractors.Response

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IV.2.D.4.Mandatory

Technical Requirement – Business Continuity/Disaster RecoverySpecificationThe Bidder must provide a comprehensive Business Continuity/Disaster Recovery Plan to provide alternative processing arrangements for all services in the event of a short-term business interruption and/or long-term loss of processing capacity at the bidder’s processing site.

This Plan must incorporate all alternate facilities, equipment, telecommunications lines, staff or other resources required to ensure continuity of services required pursuant to this RFP which are interrupted for any length of time by a disaster or other unforeseen event. The Plan must encompass all recovery activities, from the initial event interrupting operations, through transitions of operations to alternate site(s) and restoration of the original operating site and include a flow chart of the disaster recovery mechanism. The Plan must address the following:i. The length of time a disaster would make their services unavailable.ii. What Bidder would do specifically to recover transactions affected by the disaster.iii. Whether they have a site to which they can transfer the processing, and whether the site is cold, warm, or

hot.iv. What is the contingency for a telecommunications failure on the primary network.v. What are the locations of the alternate sites.vi. The recovery priority New York State will receive.

The Bidder must state the exact transaction point or location at which disaster recovery is the EVT Contractor’s responsibility, and at which point or location if any, the disaster recovery is the responsibility of the Authorized User. The EVT Contractor must ensure that all Security and Confidentiality requirements pursuant to Section IV.2.D.3 above are maintained during the relocation of operations to an alternate site(s), at the alternate sites(s) and during restoration of the original operating site(s).

To the extent the Successful Bidder updates the Business Continuity/Disaster Recovery Plan as required to reflect technological, system or other changes, the Successful Bidder must provide the OGS or its designee with updated plans or portions thereof.Response

IV.2.D.5.Mandatory

Technical Requirement – Authorized User Data OwnershipSpecificationAll data collected, stored or otherwise utilized by the EVT Contractor, in conjunction with the execution of the duties and responsibilities specified in the individual Authorized User’s Implementation Plan, shall remain the sole property of the Authorized User. If at any time the EVT Contract between the State and the EVT Contractor or any order by an Authorized User is canceled, terminated or expires, the EVT Contractor is obligated to return all such data to the specific Authorized User at no additional cost and in a medium specified by the Authorized User. All records must be maintained for a period of time of no less than seven years from the date of such cancellation, termination or expiration. The Bidder must affirm their ability to meet the data storage requirements and describe its ability to maintain records for the required period of timeResponse

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IV.2.D.6.b. & c.Mandatory

Technical Requirement – Implementation PlansSpecificationAs Authorized Users implement electronic payment processing systems utilizing Financial Services Processing and Transaction Interfaces, the EVT Contractor must agree to work with each Authorized User to develop mutually agreed upon Implementation Plans which specify all Financial Services Processing rates, Transaction Interfaces deliverables and rates, the timetable for deliverables, acceptance testing criteria and procedures and training for new and enhanced applications. If an Authorized User requires processing procedures that are not supported by Credit/Charge Card, Off-line & On-line Debit Card, ACH and Fedwire, SWIFT and/or CHIPS association or governing body rules or guidelines, the EVT Contactor must work with the Authorized User to seek approval from such association or governing body for such procedures, and upon approval, agree to process electronic payments under such alternative procedures. The EVT Contractor must also provide Implementation Plans, with estimated timeframes, for start up and conversion of news and/or existing applications.b. The Bidder should include in their response a description of their standard methodology for

implementation and expansion of small, medium and large electronic value transfer Payment Programs.c. The Bidder must describe its capacity to implement Payment Programs, indicating the expected timeframe

for implementing various sized programs and their capacity to implement multiple programs.Response

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Bid Proposal Cover Sheet – Part II

Bid Proposal Cover Sheet*** Important - Failure to Furnish All Required Information may render the Bid Non-Responsive ***


TIME : 11:00 A.M. EST REQUEST FOR PROPOSAL NUMBER: 21312TITLE: Group 79008 – Electronic Value Transfer.

SUBMITTED TO: Nicholas JacobiaPhone No.: (518) 473-4651FAX No.: (518) 486-6867E-Mail: [email protected]

Part II, Response to Section V, Bidder Financial Requirements

If successful, this Bid, along with the Bid Documents, will constitute a binding contract between the Bidder and State upon receipt of final State approvals. By signing below, you indicate your express authority to sign on behalf of yourself or your company with full knowledge and acceptance of the terms and conditions contained in the above referenced RFP, including Appendix A (Standard Clauses for NYS Contracts), and Appendix B (OGS General Specifications, July 06) and State Finance Law §139-j and §139-k (Procurement Lobbying), and that all information provided is complete, true and accurate. By signing, bidder affirms that it understands and agrees to comply with the OGS procedures relative to permissible contacts as required by State Finance Law §139-j (3) and §139-j (6) (b).



Phone: ( ) - ext. ( )

Fax: ( ) - ext. ( )

Toll Free Phone: ( ) - ext. ( )

Toll Free Fax: ( ) - ext. ( )

E-mail Address: Company Web Address:

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Bidder Financial Requirements Checklist

Check () to indicate compliance with each requirement

Financial Services Processing (Tables I-XII)

Proposal contains completed Financial Services Processing Tables I through XII

Table Inclusive MC VISA Discover AMEXI Interchange and Assessment Fee N/A --------N/A--------

II Definitions and Applicable Payment Methods N/A

III Authorization and Processing Fees by Average Transaction N/A

IV Fees for Additional Services

V Blended Rates and Bundled Fees N/A

VI Statewide Aggregate Volume Discount Pricing N/A

VII On-Line Debit Card Fees ----------------N/A----------------

VIII Automated Clearinghouse Transactions ----------------N/A---------------

IX Fedwire, CHIPS and SWIFT Transactions ----------------N/A---------------

X Electronic Check Verification, Recovery & Guarantee ----------------N/A---------------

XI Funds Availability ----------------N/A---------------

XII Pre-Funding Receipt of Funds ----------------N/A---------------

Transaction Interfaces (Tables XIII-XVI)

Proposal contains completed Transaction Interfaces Tables XIII through XVI

Table InclusiveXIII Transaction Interface Hardware Fees

XIV Hardware Catalog Discount

XV Transaction Interface Software Fess

XVI Incidental Consulting Services

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Financial Services Processing (Tables I -XII) and Transaction Interfaces (Tables XIII – XVI)

Bidders are required to complete their responses to all Financial Services Processing (Tables I – XII) and Transaction Interfaces (Tables XIII – XVI) on pages 163 through 230 of this RFP using the Microsoft Excel® worksheets provided on the OGS website located at http://www.ogs.state.ny.us/purchase/Bidcalendarlv.asp The following tables are provided for reference purposes only.

Table I – Interchange and Assessment Fees

Complete Table I separately for MasterCard and Visa. The Bidder should include Business, Corporate and Purchase Card rates. Table I contains descriptions of the Interchange and Assessment fees that were available at the time of printing of this document; The Bidder must provide the applicable categories that are currently available and the associated fees. If a bidder marks-up the Interchange and Assessment fees charged by the association, the bidder must provide the formula indicating how the Interchange and Assessment fees are marked-up. Any mark-up of the Interchange and Assessment fees must be included in Table I exclusively and not repeated on Table III – Authorization and Processing Fees by Average Transaction. No entries are required for Discover or American Express. Enter “NA” in all entries where a cell is Not Applicable, enter a ”0” in all entries where the cell is applicable but the Authorized User will not be charged.

Table I – Interchange and Assessment Fees MasterCard

Category DescriptionInterchangePercentage

InterchangeFlat Fee

Assessment FeePercentage

1 Merit I % $ %2 Merit III % $ %3 Key Entered % $ %4 Service Industry Incentive (SIIP) % $ %5 Standard % $ %6 Foreign Electronic (Non-U.S. Location) % $ %7 Foreign Electronic (U.S. Location) % $ %8 Foreign Standard (Non-U.S. Location) % $ %9 Foreign Standard (U.S. Location) % $ %

10 Supermarket % $ %11 Warehouse Club % $ %12 Petroleum/Cardholder Activated Terminal % $ %13 Quick Payment Service % $ %14 Corporate Face to Face % $ %15 Corporate Data Rate I % $ %16 Corporate Data Rate II % $ %17 Corporate Data Rate III % $ %18 Corporate Large Ticket Rate % $ %19 Corporate T&E Rate I % $ %20 Corporate T&E Rate II % $ %21 Corporate Standard % $ %22 Corporate Purchasing Large Ticket (Non-U.S. Location) % $ %23 Corporate Purchasing Data Rate II ( Non-U.S. Location) % $ %24 Corporate Purchasing (Non-U.S. Location % $ %25 Corporate (Non-U.S. Location) % $ %26 TIPS % $ %27 World T&E % $ %28 % $ %29 % $ %30 % $ %Mark-up Formula: If the above rates are marked-up, the bidder must provide the formula for calculating the Interchange and Assessment fees charged to the state including the fees as charged by the association and the method for calculating the fees charged to the state.

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Table I – Interchange and Assessment Fees VISA


InterchangeFlat Fee


1 CPS Retail - Performance Threshold I % $ %2 CPS Retail - Performance Threshold II % $ %3 CPS Retail - Performance Threshold III % $ %4 CPS Retail - All other % $ %5 CPS Retail Key Entry (Retail MCCs Only) % $ %6 CPS Car Rental/Hotel (Card Present) % $ %7 CPS Car Rental/Hotel (Card not Present) % $ %8 CPS Passenger Transport % $ %9 CPS e-Commerce Preferred Passenger Transport % $ %

10 CPS Small Ticket % $ %11 CPS Restaurant % $ %12 CPS Card Not Present % $ %13 CPS Automated Fuel Dispenser % $ %14 CPS Service Station % $ %15 CPS Retail Tier 2 % $ %16 CPS Supermarket Performance Tier 1 % $ %17 CPS Supermarket Performance Threshold II % $ %18 CPS Supermarket Performance Threshold III % $ %19 CPS Supermarket - All Others % $ %20 Electronic Interchange Reimbursement Fee (EIRF) % $ %21 Standard Interchange Reimbursement Fee % $ %22 Commercial Card-Electronic % $ %23 Commercial Card-Standard % $ %24 Commercial Level III Data Rate % $ %25 Commercial Level II Data Rate % $ %26 Business card—Card not Present % $ %27 Corporate card—Card not Present % $ %28 Purchasing card—Card not Present % $ %29 Purchasing card – Business-to-Business % $ %30 CPS Supermarket Check Card % $ %31 CPS Check Card - All Other Merchants % $ %32 CPS Supermarket % $ %33 GSA Purchase Card Large Ticket % $ %34 International Electronic (Non-U.S. Location) % $ %35 International Standard (Non-U.S. Location) % $ %36 International Corp/Purchasing % $ %37 CPS eCommerce Basic % $ %38 CPS eCommerce Preferred Retail % $ %39 CPS Account Funding % $ %40 CPS Rewards 1 % $ %41 CPS Rewards 2 % $ %42 Passenger Transport Cons. % $ %43 Non-Passenger Transport % $ %44 Non-Passenger % $ %45 Select Mail/Phone Order and eCommerce % $ %46 % $ %47 % $ %48 % $ %49 % $ %

Page 164


50 % $ %Mark-up Formula: If the above rates are marked-up, the bidder must provide the formula for calculating the Interchange and Assessment fees charged to the state including the fees as charged by the association and the method for calculating the fees charged to the state.

Table I – Interchange and Assessment Fees Discover Card


InterchangeFlat Fee


1 No Entry Required % $ %

Table I – Interchange and Assessment Fees AMEX


InterchangeFlat Fee


1 No Entry Required % $ %

Page 165

Group 79008 New York State Office of General Services Page: 166Electronic Value Transfer Procurement Services Group Date: 09/03/2008 Table II – Definitions and Applicable Payment Methods

Provide a definition for each category completed in Table I for MasterCard and Visa, identify which categories are applicable for government services for each type of transaction (Applicable Payment Method). Add additional rows and/or columns as necessary, to provide required information. Applicable Payment Methods: A = Qualified Transactions, B = Non-Qualified Transactions, C = Point-of-Sale Transactions, D = Internet Transactions, E = Interactive Voice Response Transactions, and F = Batch Processing Transactions. No entries are required for Discover or American Express.

Table II – Definitions and Applicable Payment Methods MasterCardInterchange and

Assessment Qualifying Category Definition

Applicable Payment Method ( = Applicable)

CommentsA B C D E F0 MasterCard – Merit III

Example Only

Example of how to complete Table II: (information is for example purposes only, the Bidders should provide the appropriate description and identify the applicable payment methods for all categories including Merit III).

Zero floor limitRead and transmit entire magnetic strip data in authorization recordDeposit and clear through MasterCard within 2 days Hotels, Car

Rental & Cruiselines are exempt from the Timeliness editTransaction must be face-to-face with card present and signature

obtainedEnriched date in authorization and settlement recordsAuthorization code must be provided in settlement recordAuthorization and clearing amounts must be within applicable

tolerance (25% Restaurants and Bars – 10% everyone else) Hotels, Car Rentals & Cruiselines, Automated Fuel, and Airlines are exempt from the Tolerance edit

Banknet reference number and Banknet authorization date must be present in clearing/settlement record

MC – Merit III applies to all government qualified transactions except: Transactions with a purchase date of 2 or more days prior to

delivery to the InterchangeCustomer use of a Business Card

1

2

3

4

5

6

7

8

9

10

11

12

13

14

Page 166

Group 79008 New York State Office of General Services Page: 167Electronic Value Transfer Procurement Services Group Date: 09/03/2008

Table II – Definitions and Applicable Payment Methods MasterCardInterchange and



CommentsA B C D E F

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

Applicable Payment Method: A – Qualified B – Non-Qualified C – POS (Point-of-Sale) D – Internet E – IVR (Interactive Voice Response) F – Batch Processing

Page 167


Table II – Definitions and Applicable Payment Methods VISAInterchange and



CommentsA B C D E F

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

Page 168


Table II – Definitions and Applicable Payment Methods VISAInterchange and



CommentsA B C D E F

23

24

25

26

27

28

29

30

Applicable Payment Method: A – Qualified B – Non-Qualified C – POS (Point-of-Sale) D – Internet E – IVR (Interactive Voice Response) F – Batch Processing

Table II – Definitions and Applicable Payment Methods Discover CardInterchange and



CommentsA B C D E F

1

Table II – Definitions and Applicable Payment Methods American ExpressInterchange and



CommentsA B C D E F

1

Page 169

Group 79008 New York State Office of General Services Page: 170Electronic Value Transfer Procurement Services Group Date: 09/03/2008 Table III – Authorization and Processing Fees By Average Transaction

Complete Table III separately for MasterCard, VISA, Discover Card and American Express, indicating all Authorization and Processing fees by Average Transaction value. Enter “NA” in all entries where a fee or percentage is Not Applicable in the computation of authorization/ processing fees, enter a zero”0” in all entries where a value is applicable but the Authorized User will not be charged. Also indicate if the fees should be calculated based on a percentage, flat fee, percentage + flat fee or, either a flat fee or percentage basis. Note, do not duplicate fees listed in Table IV – Additional Services and Fees.

Table III – Authorization and Processing Fees By Average Transaction MasterCard

Base Processing/Access Fees $ 0.01 - $24.99 $25.00 - $49.99 $50.00 - $99.99 $100.00 - $499.99 $500.00 - $999.99 $1,000.00 +1 Base Processing/Access – Percentage % % % % % %2 Base Processing/Access - Flat Fee $ $ $ $ $ $3 Indicate how the Base Processing/Access Fees will be calculated.

Percentage Only (Bidder requires that the Base Processing/Access fee be calculated as a percentage of the transaction value only – complete line 1 only) Flat Fee Only (Bidder requires that the Base Processing/Access fee be calculated as a flat fee only – complete line 2 only) Percentage + Flat Fee (Bidder requires that the Base Processing/Access fee be calculated as a flat fee plus a percentage of the transaction value – complete lines 1 and 2) Percentage or Flat Fee (Bidder allows the state to choose whether to be charged on a percentage of transaction value or a flat fee basis – complete lines 1 and 2)

Authorization Fees – Percentage $ 0.01 - $24.99 $25.00 - $49.99 $50.00 - $99.99 $100.00 - $499.99 $500.00 - $999.99 $1,000.00 +4 Dial-Up % % % % % %5 Leased Line % % % % % %6 ISDN % % % % % %7 Host-to-Host (Dial-up Batch) % % % % % %8 Wireless (Cellular) % % % % % %9 Satellite % % % % % %

10 Other- Describe: % % % % % %

Authorization Fees – Flat Fee $ 0.01 - $24.99 $25.00 - $49.99 $50.00 - $99.99 $100.00 - $499.99 $500.00 - $999.99 $1,000.00 +11 Dial-Up $ $ $ $ $ $12 Leased Line $ $ $ $ $ $13 ISDN $ $ $ $ $ $14 Host-to-Host (Dial-up Batch) $ $ $ $ $ $15 Wireless (Cellular) $ $ $ $ $ $16 Satellite $ $ $ $ $ $17 Other- Describe: $ $ $ $ $ $18 Indicate how the Authorization Fees will be calculated.

Percentage Only (Bidder requires that the authorization fee be calculated as a percentage of the transaction value only – complete lines 4-10) Flat Fee Only (Bidder requires that the authorization fee be calculated as a flat fee only – complete lines 11-17) Percentage + Flat Fee (Bidder requires that the authorization fee be calculated as a flat fee plus a percentage of the transaction value – complete lines 4-17) Percentage or Flat Fee (Bidder allows the state to choose whether to be charged on a percentage of transaction value or a flat fee basis – complete lines 4-17)

Page 170


Table III – Authorization and Processing Fees By Average Transaction MasterCard

Other Processing Fees

Percentage Based Fees $ 0.01 - $24.99 $25.00 - $49.99 $50.00 - $99.99 $100.00 - $499.99 $500.00 - $999.99 $1,000.00 +19 % % % % % %

Description of Fee:20 % % % % % %


Description of Fee:

Flat Fee Based Transactions $ 0.01 - $24.99 $25.00 - $49.99 $50.00 - $99.99 $100.00 - $499.99 $500.00 - $999.99 $1,000.00 +22 $ $ $ $ $ $

Description of Fee:23 $ $ $ $ $ $


Description of Fee:25 Indicate how the Other Processing Fees will be calculated.

Percentage Only (Bidder requires that the Other Processing fee(s) be calculated as a percentage of the transaction value only – lines 19-21) Flat Fee Only (Bidder requires that the Other Processing fee(s) be calculated as a flat fee only – complete lines 22-24) Percentage + Flat Fee (Bidder requires that the Other Processing fee(s) be calculated as a flat fee plus a percentage of the transaction value – complete lines 19-24) Percentage or Flat Fee (Bidder allows the state to choose whether to be charged on a percentage of transaction value or a flat fee basis – complete lines 19-24)

Page 171


Table III – Authorization and Processing Fees By Average Transaction VISA

Base Processing/Access Fees $ 0.01 - $24.99 $25.00 - $49.99 $50.00 - $99.99 $100.00 - $499.99 $500.00 - $999.99 $1,000.00 +1 Base Processing/Access - Percentage % % % % % %2 Base Processing/Access - Flat Fee $ $ $ $ $ $3 Indicate how the Base Processing/Access Fees will be calculated.






Page 172


Table III – Authorization and Processing Fees By Average Transaction VISA





Description of Fee:






Page 173


Table III – Authorization and Processing Fees By Average Transaction Discover Card







Page 174


Table III – Authorization and Processing Fees By Average Transaction Discover Card





Description of Fee:






Page 175


Table III – Authorization and Processing Fees By Average Transaction American Express







Page 176


Table III – Authorization and Processing Fees By Average Transaction American Express





Description of Fee:

Flat Fee Based Processing $ 0.01 - $24.99 $25.00 - $49.99 $50.00 - $99.99 $100.00 - $499.99 $500.00 - $999.99 $1,000.00 +22 $ $ $ $ $ $





Page 177

Group 79008 New York State Office of General Services Page: 178Electronic Value Transfer Procurement Services Group Date: 09/03/2008 Table IV – Fees for Additional Services

Complete Table IV – Fees for Additional Services identifying the associated fees for all FSP services not included in Tables I – III. If a service is not available the bidder should enter “NA” or “Not Applicable” in the associated entry boxes. The Bidder is encouraged to identify additional services that may be made available to Authorized Users by completing the “Other Services and Fees” section of this table. All fees must be included and fully described in the Bidder’s proposal in response to the requirements referenced in each service provided in the table. Any fee, whether listed in this RFP or not, for which a rate is not proposed will not be chargeable under the EVT Contract. Enter “NA” in all entries where a cell is Not Applicable, enter a “0” in all entries where the cell is applicable but the Authorized User will not be charged.

Table IV - Fees for Additional Services1 Voice Authorizations (See Section IV.2.A.8.a.i for Service Requirements)

Bidder Descriptionof Fee Calculation

Per Transaction Service Fee

Processor MasterCard VISA Discover American Express

2 Voice Data Capture (See Section IV.2.A.12.a for Service Requirements )Bidder Descriptionof Fee Calculation



3 Address Verification (See Section IV.2.A.12.b for Service Requirements)Bidder Descriptionof Fee Calculation



Page 178


Table IV - Fees for Additional Services4 International Transactions (See Section IV.2.A.12.c for Service Requirements)




5 Chargeback Fees (See Section IV.2.A.9 for Service Requirements)


Per Occurrence Service Fee


6 Retrieval Fees (See Section IV.2.A.9.a.viii for Service Requirements)Bidder Descriptionof Fee Calculation



Page 179


Table IV - Fees for Additional Services7 Research and Investigation Fees (See Section IV.2.A.9.a.xi for Service Requirements)

Bidder Descriptionof Fee Calculations



8 Settlement Fees (See Section IV.2.A.8.a for Service Requirements)

Bidder Descriptionof Fee Calculations,

including a description of the fee basis (e.g., per

transaction)

Service Fees Processor MasterCard VISA Discover American Expressa ACH Not Applicable Not Applicableb Fedwire Not Applicable Not Applicablec Separate Transfers Not Applicable Not Applicable

9 Deposit Correction Fees (See Section IV.2.A.9.a.xiv for Service Requirements)Bidder Descriptionof Fee Calculation



Page 180


Table IV - Fees for Additional Services10 Reporting & Statement Fees (See Section IV.2.A.10 for Service Requirements)

Bidder Descriptionof Fee Calculation,


individual report, per report type, etc.)

Service Fees Processor MasterCard VISA Discover American Express Authorized User

Reportsa On-line Daily b Printed Dailyc On-line Monthlyd Printed Monthly Control Agency Reportse Fraudf Monthly Summary

g Semi-Annualh AnnualOther Reports (describe)ij

11 Membership Fees (See Section IV.2.A.8.e for Service Requirements)



month, per year, etc.)

Service Fees Processor MasterCard VISA Discover American Express

Page 181


Table IV - Fees for Additional Services12 Application Fees (See Section IV.2.A.8.e for Service Requirements)





13 Setup Fees (See Section IV.2.A.8.e for Service Requirements)





14 Signage Fees (See Section IV.2.C.3.a for Service Requirements)Bidder Descriptionof Fee Calculation,


unit, etc.)


Page 182


Table IV - Fees for Additional Services15 Miscellaneous Supplies (See Section IV.2.C.3.b for Service Requirements)

Bidder Descriptionof Fee Calculations,


unit, etc.)

Service Fees (describe) Processor MasterCard VISA Discover American Expressa

b

c

d

e

16 Help Desk Services, including authorization, Transaction Interface assistance and customer service (See Section IV.2.C.2.a for Service Requirements)Bidder Descriptionof Fee Calculation,

including a description of the fee basis (e.g., per month, per occurrence,

etc.)


b

c

d

e

Page 183


Table IV - Fees for Additional Services17 Reprogramming Services (See section IV.2.A.12.d for Service Requirements)

Bidder Descriptionof Fee Calculation, in-

cluding a description of the fee basis (e.g., per oc-

currence, etc.)


18 Implementation Training (See Section IV.2.C.1.a for Service Requirements)



occurrence, etc.)


b

c

Page 184


Table IV - Fees for Additional Services19 Retain Authorized User Information and Records and Addressing Chargebacks (See Section IV.2.A.9.a.ii for Service Requirements)


including a description of the fee basis (e.g., per month, per occurrence,

etc.)


b

c

d

20 Payment Device, On-line Payment Interfaces (See Section IV.2.A.7.b for Service Requirements)Bidder Descriptionof Fee Calculation,

including a description of the fee basis (e.g., per month, per transaction,

etc.)

Service Fees (describe) Processor MasterCard VISA Discover American Express

21 Other Additional Services (See Section IV.2.A.12.e for Service Requirements)Bidder Descriptionof Fee Calculation,

including a description of the fee basis (e.g., per month, per transaction,

etc.)


b

c

d

Page 185


Table V – Blended Rates and Bundled Fees

Complete Table V separately for MasterCard/VISA and Discover Card/American Express Credit/Charge Cards and Off-line Debit Cards. Provide a combined Blended (i.e., combined MasterCard and VISA) rate and Bundled fee for each Average Transaction Category. The Blended/Bundled Processor Fees must include all fees from Table III – Authorization and Transaction Fees by Average Transaction and Table IV – Fees for Additional Services (i.e., Processor Fees = [Base Processing/Access Fees + Authorization Fees + Other Fees] + [Voice Authorizations + Voice Data Capture + Address Verification + International Transactions + Chargeback Fees + Retrieval Fees + Research and Investigation Fees + Settlement Fees + Deposit Correction Fees + Reporting Fees + Membership Fees + Application Fees + Setup Fees + Signage Fees + Supplies + Help Desk Fees + Reprogramming Services + Training Fees + Other Services Fees]). The total Blended Rates and Bundled Fees will be calculated as [(Table V, Row 4)*Transaction Amount + (Table V, Row 7)]. Enter “NA” in each entry that is Not Applicable, enter a ”0” in all entries where the cell is applicable but the Authorized User will not be charged..

The Bidder must use the following assumptions in proposing Blended Rates and Bundled Fees for MasterCard & VISA transactions: Credit/Charge and Debit Card usage rates – MasterCard 37%, VISA 63%,; transaction types – nonqualified 65%, qualified 35%; total monthly volume of transactions is less than 100,000 (i.e., less than the lowest threshold for volume discounting). Bidders must provide the formula used to compute their proposed Blended Rates and Bundled Fees. Bidders may provide this formula by downloading and completing the “Blended Bundled Fees.xls” document available on the OGS website http://www.ogs.state.ny.us/purchase/Bidcalendarlv.asp ). A sample of this document can be found in Exhibit 6 on page 72. If Bidders choose not to use this document to provide their Blended Rate and Bundled Fees formula, they must provide their formula below.

Table V – Blended Rates and Bundled Fees MasterCard & VISA

Average TransactionPercentage Based Fees $ 0.01 - $24.99 $25.00 - $49.99 $50.00 - $99.99 $100.00 - $499.99 $500.00 - $999.99 $1,000.00 +

1 Interchange Percentage % % % % % %2 Assessment Percentage % % % % % %3 Processor Fees – Percentage % % % % % %4 Total Percentage Based Fees (add 1, 2 &3) % % % % % %

Flat Fees $ 0.01 - $24.99 $25.00 - $49.99 $50.00 - $99.99 $100.00 - $499.99 $500.00 - $999.99 $1,000.00 +5 Interchange Flat Fees $ $ $ $ $ $ 6 Processor Flat Fees $ $ $ $ $ $ 7 Total Flat Fees (add lines 5 & 6) $ $ $ $ $ $

Assumed Values8 Percentage of Qualified Transactions 35%9 Percentage of Non-Qualified Trans. 65%

10 Percentage of MasterCard Trans. 37%11 Percentage of VISA Transactions 63%12 Total Monthly Volume Under 100,000

Page 186


Group 79008 New York State Office of General Services Page: 187Electronic Value Transfer Procurement Services Group Date: 09/03/2008 The Bidder should use the following assumptions in proposing Blended Rates and Bundled Fees for Discover Card & AMEX transactions: Credit/Charge Card usage rates – Discover Card 33%, American Express 67%; transaction types – nonqualified 65%, qualified 35%; total monthly volume of transactions is less than 100,000 (i.e., less than the lowest threshold for volume discounting). Bidders must provide the formula used to compute their proposed Blended Rates and Bundled Fees. Bidders may provided this formula by downloading and completing the “Blended Bundled Fees.xls” document available on the OGS website (http://www.ogs.state.ny.us/purchase/Bidcalendarlv.asp ). A sample of this document can be found in Exhibit 4 on page 72. If Bidders choose not to use this document to provide their Blended Rate and Bundled Fees formula, they must provide their formula below.

Table V – Blended Rates and Bundled Fees Discover Card and AMEX

Average TransactionPercentage Based Fees $ 0.01 - $24.99 $25.00 - $49.99 $50.00 - $99.99 $100.00 - $499.99 $500.00 - $999.99 $1,000.00 +

1 Processor Fees – Percentage % % % % % %

Flat Fees $ 0.01 - $24.99 $25.00 - $49.99 $50.00 - $99.99 $100.00 - $499.99 $500.00 - $999.99 $1,000.00 +2 Processor Flat Fees $ $ $ $ $ $

Assumed Values3 Percent of Qualified Transactions 35%4 Percent of Non-Qualified Transactions 65%5 Percent of Discover Card Transactions 33%6 Percent of AMEX Transactions 67%7 Total Monthly Volume Under 100,000

Table V – Blended Rates and Bundled FeesProvide the formula(s) for computing the Blended Rates and Bundled Fees (include the above assumed values).

Page 187



Table VI - Statewide Aggregate Volume Discount Pricing

Indicate the percentage discount, if any, that will be applied to the Blended Rates and Bundled Fees as specified in Table V assuming the following aggregated number of statewide transactions per month (including all Authorized Users utilizing Blended Rates and Bundled Fees). If a Percentage Discount does not apply to a particular Number of Transactions Per Month stratification and/or Average Transaction range, the bidder must enter “NA” for Not Applicable. Complete a separate Table VI for MasterCard/VISA and Discover Card/AMEX.

Table VI – Statewide Aggregate Volume Discount Pricing MasterCard & VISA

Total Number of Transactions Per MonthAverage Transaction

$ 0.01 - $24.99 $25.00 - $49.99 $50.00 - $99.99 $100.00 - $499.99 $500.00 - $999.99 $1,000.00 +1 100,000 - 249,999 % % % % % %2 250,000 - 499,999 % % % % % %3 500,000 - 749,999 % % % % % %4 750,000 - 999,999 % % % % % %5 1,000,000 - 1,499,999 % % % % % %6 1,500,000 - 1,999,999 % % % % % %7 2,000,000 - 2,999,999 % % % % % %8 3,000,000 - 4,999,999 % % % % % %

Table VI – Statewide Aggregate Volume Discount Pricing Discover Card & AMEX

Total Number of Transactions Per MonthAverage Transaction

$ 0.01 - $24.99 $25.00 - $49.99 $50.00 - $99.99 $100.00 - $499.99 $500.00 - $999.99 $1,000.00 +1 100,000 - 249,999 % % % % % %2 250,000 - 499,999 % % % % % %3 500,000 - 749,999 % % % % % %4 750,000 - 999,999 % % % % % %5 1,000,000 - 1,499,999 % % % % % %6 1,500,000 - 1,999,999 % % % % % %7 2,000,000 - 2,999,999 % % % % % %8 3,000,000 - 4,999,999 % % % % % %

Page 188


Table VII – On-Line Debit Card Fees

Complete Table VII to propose fees for processing On-Line Debit Card. The proposed fees per transaction, expressed as a flat rate and/or a flat rate plus percentage, must be expressed as Fully Loaded Fees (i.e., be inclusive of all costs for providing all RFP requirements within this RFP). Fee proposals should be made for each of the networks below with which you have a relationship. Provide the estimated number of hours between the time transactions are submitted to each network and the time funds are available to the Bidder. Enter “NA” in all entries where a cell is Not Applicable, enter a zero”0” in all entries where the cell is applicable but the Authorized User will not be charged. Provide information for any other networks you work with.

Table VII – On-Line Debit Card Fees

NetworkNetwork Fees [1] PFS Contractor Fees [2]

Average Timeframe to Receive

Funds from Network

Flat Fee [3] Percentage Maximum

Fee [4] Flat Fee Percentage1 Accel – Retail $ % $ $ %2 Accel – PINless Payment $ % $ $ %3 AFFN – Standard Merchants $ % $ $ %4 AFFN – Major Merchants $ % $ $ %5 BankMate $ % $ $ %6 Cash Station $ % $ $ %7 Cirrus $ % $ $ %8 Explore $ % $ $ %9 Honor/Most $ % $ $ %10 Interlink – Retail (Tier 3) $ % $ $ %11 MAC $ % $ $ %12 Maestro $ % $ $ %13 Magic Line $ % $ $ %14 Money Station $ % $ $ %15 NYCE – Retail Standard $ % $ $ %16 NYCE – Retail Qualified $ % $ $ %17 Plus $ % $ $ %18 Pulse Retail (includes TYME) $ % $ $ %19 Pulse – General Retail - Tier 4 $ % $ $ %20 Pulse – Small Ticket $ % $ $ %21 Shazam Retail $ % $ $ %22 Star $ % $ $ %23 $ % $ $ %24 $ % $ $ %25 $ % $ $ %26 $ % $ $ %27 $ % $ $ %28 $ % $ $ %29 $ % $ $ %30 $ % $ $ %

[1] For price escalation purposes, Network Fees are treated as third-party costs[2] PFS Contractor’s Fees are fees within the contractor’s control and are viewed as such for price escalation purposes.[3] Network Fees must include any ‘switch’ fees and/or administrative fees. [4] Maximum amount which can be charged per transaction including all network fees (exclusive of PFS Contractor Fees)

Page 189


Page 190


Table VIII - Automated Clearinghouse Transactions

Enter the fees associated with processing Automated Clearinghouse Debit and Credit transactions for each of the thresholds below. The thresholds for total number of transactions per month are computed as the aggregate number of transactions for all Authorized Users. Enter “NA” in all entries where a cell is Not Applicable, enter a zero”0” in all entries where the cell is applicable but the Authorized User will not be charged.

Table VIII – Automated Clearinghouse Transactions

Total Number of Transactions Per Month Debit Transactions Fee Credit Transactions Fee 1 1 - 99,9992 100,000 - 249,9993 250,000 - 499,9994 500,000 - 749,9995 750,000 - 999,9996 1,000,000 - 1,499,9997 1,500,000 - 1,999,9998 2,000,000 - 2,999,9999 3,000,000 +Other ACH Fees Fee10 Check Conversion11 Reporting Fees12 Other Fee 1 (Describe)13 Other Fee 2 (Describe)14 Other Fee 3 (Describe)15 Other Fee 1 Describe:16 Other Fee 2 Describe:17 Other Fee 3 Describe:

Table IX - Fedwire, CHIPS and SWIFT Transactions

Enter the fees associated with processing Fedwire transactions, CHIPS and SWIFT transactions. Enter “NA” in all entries where a cell is Not Applicable, enter a zero”0” in all entries where the cell is applicable but the Authorized User will not be charged.

Table IX – Fedwire, CHIPS and SWIFT Transactions

Fedwire Services Fedwire Fees1 Transaction Fee2 Reporting Fees3 Other Fees (Describe)4 Describe:

CHIPS Services CHIPS Fees5 Transaction Fee6 Reporting Fees7 Other Fees (Describe)8 Describe:

SWIFT Services SWIFT Fees9 Transaction Fee

10 Reporting Fees11 Other Fees (Describe)12 Describe:

Page 191


Table X – Electronic Check Verification, Recovery & Guarantee

Enter the fees associated with electronic check verification, recovery and guarantee. Enter “NA” in all entries where a cell is Not Applicable, enter a zero”0” in all entries where the cell is applicable but the Authorized User will not be charged.

Table X – Electronic Check Verification, Recovery & Guarantee

Service Fee1 Check Verification2 Check Verification & Recovery3 Check Guarantee4 Other fees (Describe)5 Describe:

Table XI - Funds Availability

Complete the following tables for domestic MasterCard and Visa and Off-line Debit Card transactions identifying the daily cut-off time for receiving transactions from Authorized Users and Service Providers (i.e., Internet website and IVR service providers), the day of the week transactions will be processed if they are received before the cut-off time, the time and day funds would be deposited via ACH credits, and the time and day funds would be deposited via Fedwire transactions. Enter the cut-off time for transactions to be received (column a), the associated day on which the transactions will be processed (column b), the time and day by which funds will be deposited using an ACH transaction (column c), and the time and day by which funds will be deposited using a Fedwire transaction (column d).

Table XI – Funds Availability MasterCard & VISA Only(a) (b) (c) (d)

Transactions received beforeWill be processed on:

Funds will be deposited via ACH no later than

Funds will be deposited via Fedwire no later than

1 (EST) on: (EST) on: (EST) on:2 Monday3 Tuesday4 Wednesday5 Thursday6 Friday7 Saturday8 Sunday

Table XI – Funds Availability Off-Line Debit Cards(a) (b) (c) (d)

Transactions received beforeWill be processed on:

Funds will be deposited via ACH no later than

Funds will be deposited via Fedwire no later than


Page 192


Complete the following tables for On-line Debit Card and ACH Debit transactions identifying the daily cut-off time for receiving transactions from Authorized Users and Service Providers (i.e., Internet website and IVR service providers), and the day of the week transactions will be processed if they are received before the cut-off time. The Bidder must also identify the time and day funds would be deposited via ACH Credit, and the time and day funds would be deposited via Fedwire transactions upon receipt of the funds from the ACH Network if the EVT Contractor is to serve as an intermediary for Authorized Users (i.e., funds are initially deposited into an account managed by the EVT Contractor prior to being deposited into the Authorized User’s state account). Enter the cut-off time for transactions to be received (column a), the associated day on which the transactions will be processed (column b), the time and day by which funds will be deposited using an ACH transaction (column c), and the time and day by which funds will be deposited using a Fedwire transaction (column d). Note: for On-Line Debit cards, provide the timeframe between submitting transactions to each network and receiving the funds from each network in Table VII – Debit Card Network Fees.

Table XI – Funds Availability On-Line Debit Cards(a) (b) (c) (d) (e)

Transactions received before

Will be submitted to network by

Funds received from network on:

Will be deposited via ACH no later than

Will be deposited via Fedwire no later than

1 (EST) on: (EST) on: (EST) on: (EST) on: (EST) on:2 Monday Monday3 Tuesday Tuesday4 Wednesday Wednesday5 Thursday Thursday6 Friday Friday7 Saturday Saturday8 Sunday Sunday

Table XI – Funds Availability ACH Debit Transactions(a) (b) (c) (d) (e)

Transactions received before

Will be submitted to network by

Funds received from ACH Network on:



1 (EST) on: (EST) on: (EST) on: (EST) on: (EST) on:2 Monday Monday3 Tuesday Tuesday4 Wednesday Wednesday5 Thursday Thursday6 Friday Friday7 Saturday Saturday8 Sunday Sunday

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Complete the following tables for ACH Credit, Fedwire and similar type transactions identifying the time and day funds would be deposited via ACH Credit, and the time and day funds would be deposited via Fedwire transactions upon receipt of the funds if the EVT Contractor is to serve as an intermediary for Authorized Users (i.e., funds are initially deposited into an account managed by the EVT Contractor prior to being deposited into the Authorized User’s state account). Enter the cut-off time for funds to be received (column a), the time and day by which funds will be deposited using an ACH transaction (column b), and the time and day by which funds will be deposited using a Fedwire transaction (column d).

Table XI – Funds Availability ACH Credit Transactions(a) (b) (c)

Funds received from ACH Network by:




Table XI – Funds Availability Fedwire & Other Transactions

(a) (b) (c)

Funds received by: Will be deposited via ACH no later than



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Table XII – Pre-Funding Receipt of Funds

If the Bidder is proposing pre-funding services, complete the following table to provide the method for computing the interest charges and other fees for this service.

Table XII – Pre-Funding Receipt of Funds (Accelerated Deposit Transfers)Credit/Charge Cards and Off-Line Debit Cards. Identify the methods for computing the additional interest charges and service fees associated with receiving funds sooner. (e.g., 24, or 48 hours).

On-Line Debit Cards. Identify the methods for computing the additional interest charges and service fees associated with receiving funds sooner. (e.g., 24, or 48 hours).

ACH Debit Transactions. Identify the methods for computing the additional interest charges and service fees associated with receiving funds sooner. (e.g., 24, or 48 hours).

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Table XIII – Transaction Interface Hardware Fees

Enter the Purchase, Lease and Rental fees and the associated warranty and maintenance fees for the following hardware items (i.e., point-of-sale terminals, peripheral devices and supplies.) The model number for the interfaces being proposed should be identified in the Interface Make & Model box. If the Bidder provides volume discounts, the associated qualifying volume should be entered in the Minimum Order Quantity and the Discounted Price boxes. Indicate if any of the hardware devices are “split dial” to support direct authorization of American Express cards by inserting “Split Dial Capable” in the Interface Make & Model description. Enter “NA” in all entries where a cell is Not Applicable, enter a zero”0” in all entries where the cell is applicable but the Authorized User will not be charged.

Table XIII – Transaction Interface Hardware Fees1 Type I POS Terminal

(with nothing integrated)

See Section IV.2.B.1.a for Type I POS Terminal.

Interface Make & Model:Purchase Option: Per Unit Price: Minimum Order Quantity Discounted Price

Maintenance Fee: (a) (a)

Warranty (in years): (b) (b)

Extended Warranty (fee): (c) (c)

Extended Term (in years): (d) (d)

Lease Option:(express lease fees on

monthly basis, assuming one year commitment)

Per Unit Lease Fee: Minimum Order Quantity Discounted Fee(a) (a)(b) (b)(c) (c)(d) (d)

Rental Option:(express rental fees on

monthly basis)

Per Unit Rental Fee: Minimum Order Quantity Discounted Fee(a) (a)(b) (b)(c) (c)(d) (d)

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(with integrated printer)

See Section IV.2.B.1.a for Type I POS Terminal with additional requirements




Extended Warranty (fee): (c) (c)






monthly basis)

Per Unit Rental Fee : Minimum Order Quantity Discounted Fee (a) (a)(b) (b)(c) (c)(d) (d)

3 Type I POS Terminal(with integrated PIN Pad)



Maintenance Fee: (a) (a)Warranty (in years): (b) (b)

Extended Warranty (fee): (c) (c)Extended Term (in years): (d) (d)





monthly basis)


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(with integrated Signature Capture)

See Section IV.2.B.1.a for Type II POS Terminal with additional requirements.




Extended Warranty (fees): (c) (c)






monthly basis)


5 Type I POS Terminal(with integrated Smart Card Reader/Writer or Smart Card Reader/Writer & contactless payment devise)











monthly basis)


Page 198



(with integrated Contractless Payment Reader)











monthly basis)

Per Unit Rental Fee: Minimum Order Quantity Discounted Fee(a) (a)(b) (b)

(c) (c)(d) (d)

7 Type I POS Terminal(with integrated PIN Pad and integrated printer)











monthly basis)


Page 199



(with integrated PIN Pad, and Signature Capture)

See Section IV.2.B.1.a for Type I POS Terminal with additional requirements.










monthly basis)


9 Type I POS Terminal(with integrated PIN Pad, Smart Card reader/writer, and integrated printer)

See Section IV.2.B.1.a for Type I POS Terminal with additional requirements.










monthly basis)


Page 200



(with integrated PIN Pad and Signature Capture)









Per Unit Lease Fee: Minimum Order Quantity Discounted Price(a) (a)(b) (b)(c) (c)(d) (d)


monthly basis)

Per Unit Rental Fee: Minimum Order Quantity Discounted Price(a) (a)(b) (b)(c) (c)(d) (d)

11 Type I POS Terminal(with integrated printer, PIN Pad, Signature Capture and Smart Card reader/writer)


Interface Make & Model:Purchase Option: Per Unit Fee: Minimum Order Quantity Discounted Price









monthly basis)


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(with integrated printer, PIN Pad, Signature Capture, Smart Card reader/writer, and Contactless Payment Capture)











monthly basis)


13 Type I POS Terminal(with integrated printer, PIN Pad, Signature Capture, Smart Card reader/writer, Contactless Payment Capture and Check Reader)Desirable











monthly basis)


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Table XIII – Transaction Interface Hardware Fees14 Type II POS Terminal

(with nothing integrated)

See Section IV.2.B.1.b for Type II POS Terminal.










monthly basis)


15 Type II POS Terminal(with integrated printer)

See Section IV.2.B.1.b for Type II POS Terminal with additional requirements










monthly basis)


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(with integrated PIN Pad)











monthly basis)


17 Type II POS Terminal(with integrated Signature Capture)











monthly basis)


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(with Smart Card reader/writer, or Smart Card reader/writer & Contactless Payment Devise)











monthly basis)


19 Type II POS Terminal(with integrated Contactless Payment Devise)











monthly basis)


Page 205



(with integrated PIN Pad and integrated printer)









Per Unit Lease Fee: Minimum Order Quantity Discounted Price(a)(b)(c)(d)


monthly basis)

Per Unit Rental Fee: Minimum Order Quantity Discounted Price(a)(b)(c)(d)

21 Type II POS Terminal(with integrated printer and Signature Capture











monthly basis)


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(with integrated printer, PIN pad and Signature Capture











monthly basis)


23 Type II POS Terminal(with integrated PIN pad and Signature Capture











monthly basis)


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(with integrated printer, PIN pad, Signature Capture and Smart Card reader/writer











monthly basis)


25 Type II POS Terminal(with integrated printer, PIN pad, Signature Capture, Smart Card reader/writer and Contactless Payment Devise











monthly basis)


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(with integrated printer, PIN pad, Signature Capture, Smart Card reader/writer, Contactless Payment Devise and Check Reader)Desirable











monthly basis)


27 Type III POS Terminal (with nothing integrated)

See Section IV.2.B.1.c for Type III POS Terminal with additional requirements










monthly basis)


Page 209


Table XIII – Transaction Interface Hardware Fees28 Type III POS

Terminal(with integrated printer)











monthly basis)


29 Type III POS Terminal(with integrated PIN pad)











monthly basis)


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Terminal (with integrated Signature Capture)











monthly basis)


31 Type III POS Terminal(with integrated Smart Card reader/writer or integrated Smart Card reader/writer and Contactless Payment devise)

See Section IV.2.B.1.b for Type III POS Terminal with additional requirements










monthly basis)


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Terminal (with integrated Contactless Payment device)











monthly basis)


33 Type III POS Terminal(with integrated printer and PIN pad)











monthly basis)


Page 212



Terminal(with integrated printer and Signature Capture)











monthly basis)


35 Type III POS Terminal(with integrated printer, PIN pad and Signature Capture)











monthly basis)


Page 213



Terminal(with integrated PIN pad and Signature Capture)











monthly basis)


37 Type III POS Terminal(with integrated printer, PIN pad, Signature Capture and Smart Card reader/writer)











monthly basis)


Page 214



Terminal(with integrated printer, PIN pad, Signature Capture, Smart Card reader/writer and Contactless Payment device)











monthly basis)


39 Type III POS Terminal(with integrated printer, PIN pad, Signature Capture, Smart Card reader/writer, Contactless Payment device and Check Reader) Desirable











monthly basis)


Page 215


Table XIII – Transaction Interface Hardware Fees40 Type IV POS

Terminal(other 1)

Bidder should provide a description in response to Section IV.2.B.1.b.iv








Per Unit Lease Fee: Minimum Order Quantity Discounted Fee (a) (a)(b) (b)(c) (c)(d) (d)


monthly basis)

Per Unit Rental Fee: Minimum Order Quantity Discounted Fee (a) (a)(b) (b)(c) (c)(d) (d)

41 Type IV POS Terminal(other 2)

Bidder should provide a description in response to Section IV.2.B.1.b.iv








Per Unit Lease Fees: Minimum Order Quantity Discounted Fee(a) (a)(b) (b)(c) (c)(d) (d)


monthly basis)

Per Unit Rental Fees: Minimum Order Quantity Discounted Fee (a) (a)(b) (b)(c) (c)(d) (d)

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Table XIII – Transaction Interface Hardware Fees42 Peripheral Device I,

Roll Printers

See Section IV.2.B.1.c for Device Type I, roll printers requirements










monthly basis)


43 Peripheral Device I, Sprocket Printers

See Section IV.2.B.1.c for Device Type I, sprocket printers requirements










monthly basis)


Page 217


Table XIII – Transaction Interface Hardware Fees44 Peripheral Device I,

Thermal Printers

See Section IV.2.B.1.c for Device Type I, thermal printers requirements










monthly basis)


45 Peripheral Device II, Countertop PIN Pad

See Section IV.2.B.1.c for Device Type II, countertop PIN Pad requirements










monthly basis)


Page 218


Table XIII – Transaction Interface Hardware Fees46 Peripheral Device III,

Handheld PIN Pad

See Section IV.2.B.1.c for Device Type III, handheld PIN Pad requirements










monthly basis)


47 Peripheral Device IV,Check Reader

See Section IV.2.B.1.c for Device Type IV, check reader requirements







monthly basis)



monthly basis)


Page 219


Table XIII – Transaction Interface Hardware Fees48 Peripheral Device V,

Miscellaneous – magnetic stripe reader

See Section IV.2.B.1.c for Device Type V, magnetic stripe reader requirements









Rental Option:(express rentals fees on

monthly basis)


49 Peripheral Device V,Miscellaneous – card imprinter

See Section IV.2.B.1.c for Device Type V, card imprinter requirements








Per Unit Lease Fee: Minimum Order Quantity Discounted Fee(a) (a)(b) (b)(c) (c)


monthly basis)


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Table XIII – Transaction Interface Hardware Fees50 Peripheral Device V,

Miscellaneous – card reader

See Section IV.2.B.1.c for Device Type V, card reader requirements










monthly basis)


51 Peripheral Device VI, Smart Card Reader/Writer

See Section IV.2.B.1.d for Device Type VI, smart card reader/writer requirements










monthly basis)


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Table XIII – Transaction Interface Hardware Fees52 Peripheral Device VII,

Other 1

Bidder should provide a description in response to Section IV.2.B.1.d.vii










monthly basis)


53 Peripheral Device VII, Other 2

Bidder should provide a description in response to Section IV.2.B.1.d.vii










monthly basis)


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Table XIII – Transaction Interface Hardware Fees54 Supplies

Bidder should provide a description of Supplies in response to Section IV.2.B.1.e

Supply Item(Identify Associated Hardware)

Per Unit Price (When Hardware Purchased)

Per Unit Price (When Hardware Leased)

Per Unit Price (When Hardware Rented)

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Table XIV - Hardware Catalog Discounts

Bidder providing catalog discounts should identify the manufacturer(s) and the associated catalog discount that Authorized Users can use for each manufacturer throughout the term of the EVT Contract. The Bidder may also identify additional discounts for quantity purchases identifying the Minimum Order Quantity and the Associated Total Percent Discounted. Enter “NA” in all entries where a cell is Not Applicable, enter a zero”0” in all entries where the cell is applicable but the Authorized User will not be charged.

Table XIV – Hardware Catalog Discounts Hardware Manufacturer Name - I Single Unit Purchase - Percent Discounted

Catalog Discounts Based on Quantity PurchasesMinimum Order Quantity Total Percent Discounted

(a) (a)(b) (b)(c) (c)(d) (d)

Hardware Manufacturer Name- II Single Unit Purchase - Percent Discounted


(e) (e)(f) (f)(g) (g)(h) (h)

Hardware Manufacturer Name- III Single Unit Purchase - Percent Discounted


(i) (i)(j) (j)(k) (k)(l) (l)

Hardware Manufacturer Name- IV Single Unit Purchase - Percent Discounted


(m) (m)(n) (n)(o) (o)(p) (p)

July 2006


Table XV – Transaction Interface Software Fees

Provide pricing for software product to be made available by the Bidder. The bidder should indicate the fees for each licensing type being proposed for each software product. Provide a proposed support/maintenance fee, exclusive of travel expenses for the first year and provide a formula used to arrive at this fee for subsequent years. If applicable, provide any quantity discounts, including number of units and discounted fee, offered for any of the license types. The EVT Contractor will be reimbursed for travel expenses at the prevailing New York State Management/Confidential rate. Enter “NA” in all entries where a cell is Not Applicable, enter a zero”0” in all entries where the cell is applicable but the Authorized User will not be charged.

Table XV – Transaction Interface Software Fees1 Product 1 Name:2 Product Description:

Provide detailed de-scription in re-

sponse to Part I.3 Functionality: __ Authorization __ Online Inquiry __ Reporting __ Other describe: ____________________4 Platform: __ PC Based __ Server Based __ Network __ Other describe: ____________________5 Operating Systems:

License Fee First Year Support/ Maintenance Fee

Support/Maintenance Fee Formula

(for subsequent years)6 Single Unit License7 Site License8 Other License 1 (Describe Below)9 Other License 2 (Describe Below)

10 Other License 3 (Describe Below)11 Other License 1 Description:12 Other License 2 Description:13 Other License 3 Description:14 Quantity Discounts:

1 Product 2 Name:2 Product Description:


sponse to Part I.3 Functionality: __ Authorization __ Inquiry __ Reporting __ Other describe: ____________________4 Platform: __ PC Based __ Server Based __ Network __ Other describe: ____________________5 Operating Systems:





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10 Other License 3 (Describe Below)

11 Other License 1 Description:12 Other License 2 Description:13 Other License 3 Description:14 Quantity Discounts:














(for subsequent years)

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Table XV – Transaction Interface Software Fees6 Single Unit License7 Site License8 Other License 1 (Describe Below)9 Other License 2 (Describe Below)








(for subsequent years)6 Single Unit License7 Site License8 Other License 1 (Describe Below)

9 Other License 2 (Describe Below)10 Other License 3 (Describe Below)










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Provide detailed de-scription in response

to Part I.3 Functionality: __ Authorization __ Inquiry __ Reporting __ Other describe: ____________________4 Platform: __ PC Based __ Server Based __ Network __ Other describe: ____________________5 Operating Systems:






Software Maintenance FormulaThe Bidder must also provide their software maintenance formula for each license type proposed.

Page 229


Table XVI – Incidental Consulting Services

Enter the rates for providing Authorized Users with Incidental Consulting Services under the EVT Contract for each Job Classification proposed in Section IV.2.B.3, expressed as an hourly rate, inclusive of all costs/profit, but exclusive of any expense for travel, meals and lodging, for each of the Consulting and Systems Integration Services Job Classifications. Enter “NA” in all entries where a cell is Not Applicable, enter a zero”0” in all entries where the cell is applicable but the Authorized User will not be charged.

Table XVI – Incidental Consulting ServicesJob Classification Brief Description (provide full description in Section IV.2.B.3 Hourly Rate

Classification 1

Classification 2

Classification 3

Classification 4

Classification 5

END OF RFP

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