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HomeMy WebLinkAbout7 FTTU System Agenda Item # ��uii� Diu w , Memorandum To: Board of Directors From: Alan Harry, Dir. Telecommunications Services Date: August 13, 2003 Subject: Authorization to request bids for the Broadband Equipment& Design for Fiber To The User(FTTU) System. 1. WHY THIS MATTER IS BEFORE THE BOARD Board authorization is required to advertise for, accept and open bids for the Broadband Equipment& Design for Fiber To The User (FTTU) System. 2. HISTORY For over three years, the District has evaluated the provision of competitive Broadband services, Data, Video and Telephone, to its customers. With the engagement of Aggregate Networks, the District began the process of implementing the Board approved Business Plan. As part of this continuing effort, Staff, with the help of the consulting firm Financial Strategy Group (FSG), has prepared the bid documents for the Broadband Equipment & Design for Fiber To The User(FTTU) System. 3. NEW INFORMATION The specifications, and contract documents for the biding of the Broadband Equipment & Design for Fiber To The User (FTTU) System are complete. We are now asking authorization to advertise for, accept, and open bids for the Broadband Equipment& Design for Fiber To The User(FTTU) System with a bid opening date of September 5, 2003. 4. RECOMMENDATION I recommend that the Board authorize staff to advertise for, accept, and open bids for the Broadband Equipment & Design for Fiber To The User (FTTU) System Project with a bid opening date of September 5, 2003. 0 Page 1 o Specifications And Contract Documents Broadband Equipment & Design for Fiber To The User (FTTU) System BID OPENING — 2 PM, 09/05/2003 Contact person: Alan Harry, (530) 587-3896 INDEX 1 . NOTICE AND INSTRUCTIONS TO BIDDERS ............................I.............................. 1 2. PROJECT SCOPE............................................................................I.........I............. 1 2.1 . General System Details .................................................................................. 2 2.2. Estimated System Subscribers....................................................................... 2 2.3, System Subscriber Requirements .................................................................. 3 3. PROPOSAL REQUIREMENTS.................................................................................. 3 3.1 . Company and Solution Information Requirements: ........................... ........... 4 3.2. Equipment Specifications and Details............................................................ 5 3.3. Equipment Reliability and Maintainability...................................................... 6 3.4. End-user Bandwidth Considerations............................................................... 6 3.5. Bandwidth Allocation Considerations ............................................................ 7 3.6. Video System Operation ................................................................................. 7 3.7. Telephony - POTS.......................... ........ ...................................__............._ 8 3.8. Telephony —Voice over IP............................................................................... 8 3.9. Training and Support....................................................................................... 8 3.10. Other Key Information................................................................................. 9 4. DESIGN PRICING................... ........................... ....... ................. .......................... 9 5. EQUIPMENT PRICING........................................................................................... 10 6. PAYMENT SCHEDULE .......................................................................................... 11 7. SURETY REQUIREMENTS .................................................................................... 11 8. WARNING TO BIDDERS ...... ..............._........_...._................... ......................... 11 9. MANNER OF SUBMITTING BIDS _.... ......... ................._...................................... 11 9.1 . Inquiries: ...... ........_........_............. ........._....... ...... ........._.......... ............. 12 9.2. Submission details........................................................................................ 12 10. EXAMINATION OF CONDITIONS....................................................................... 12 11 . BID EVALUATION PROCESS............................................................................. 13 12. DISTRICT'S RIGHT TO REJECT BIDS ............................................................... 13 13. CONTRACT ....................................................................................................... 13 14. PROPOSAL MODIFICATIONS __...................................................................... 13 15. PROPOSAL WITHDRAWAL _... ........... .................... ..............._......... ............. 13 16. POSTPONEMENT OF OPENING......................................................................... 14 17. INTERPRETATION OR CORRECTION OF CONTRACT....................................... 14 18. SOURCE OF FUNDS AND LIMITATION OF DAMAGES....................................... 14 19. LIQUIDATED DAMAGES/CONTRACT CANCELLATION...................................... 14 BIDBOND .................................................................................................................... 15 AGREEMENT................ .......... .........._........._................. ......... ............................... 16 NON-COLLUSION AFFIDAVIT TO BE EXECUTED BY BIDDER..................................... 20 Error! Bookmark not defined. TRUCKEE E1 NNER PUBLIC UTILITY DISTRICT Page 2 June 24, 2003 TRUCKEE DONNER PUBLIC UTILITY DISTRICT 11570 DONNER PASS ROAD - POST OFFICE BOX 309 TRUCKEE, CALIFORNIA 96160 (530) 587-3896 1. NOTICE AND INSTRUCTIONS TO BIDDERS Notice is hereby given that the Board of Directors of the Truckee Donner Public Utility District, Nevada County, California, herein referred to as"Owner"or"TDPUD"will receive sealed proposals at the TDPUD office, 11570 Donner Pass Road (Post Office Box 309), Truckee, California 96160 until 2 PM, September 5, 2003, at which time they shall be opened and publicly read for provision of: BROADBAND EQUIPMENT & DESIGN FOR FTTU SYSTEM REQUEST FOR BID No bid will be considered unless it is made on the form provided and accompanied by a certified or cashier's check payable to the order of the Truckee Donner Public Utility District,for a sum not less than 10% of the amount of the bid, or accompanied by a bid bond on the form attached or other acceptable form in an amount not less than 10% of the amount of the bid provided by a surety licensed to do business in the State, conditioned that the bidder will pay the District as liquidated damages the amount specified in the bond unless bidder enters into a contract in accordance with its bid within 15 days from the date at which bidder is notified that they are the successful bidder. The Truckee Donner Public Utility District specifically reserves the right to reject any and all bids, waive irregularities or informalities in any or all bids, be the sole judge of the suitability of the items offered, and to accept any bid that it determines to be in its best interest. 2. PROJECT SCOPE Truckee-Donner Public Utility District (TDPUD) is considering deployment of a FTTU network throughout the TDPUD electric service territory. FSG Consulting & Engineering, of Moraga, California, is assisting TDPUD with the recommendation of architectures, design parameters, equipment vendors, pricing, and solutions for the proposed project. The project would include TRUCKEE DONNER PUBLIC UTILITY DISTRICT Page 1 June 24, 2003 approximately 165 miles of fiber plant, passing approximately 11,500 residential, commercial, institutional, and governmental customers in the area. The TDPUD FTTU network will be capable of providing voice, video, data services, security and broadband to TDPUD's customer base. The result desired for this project is a fiber-to-the-user (FTTU) system that makes available advanced broadband services to all the residential and commercial customers of TDPUD, including, but not limited to: • 80 Channel Analog CATV • 150 Channel Digital CATV • 250 Channel IP Video • Pay-per-view • Digital Music Channels • Video on Demand • High Speed Internet • Voice over IP • TDM Telephone service— POTS, PRI, T1, etc. • Residential and Commercial Security Services TDPUD is seeking proposals from qualified vendors that will provide the necessary electronics equipment for the construction of this type of system. 2.1. General System Details Number of homes and businesses passed: • Number of residential customers passed: 10,300 (assume it is all single family housing) • Number of commercial/governmental customers passed: 1,200 • Small businesses (similar requirements to residential): 1,150 • Medium/large businesses 50 Miles of electric distribution system: 165 • Overhead 89% • Underground 11% 2.2. Estimated System Subscribers The FTTU system should include provisions to serve all potential customers regardless of the actual penetration achieved. The equipment proposed should have the capacity to serve the entire customer base without having to replace major system components as customers are added. The initial anticipated customer base is listed below. These penetration rates will be used in the evaluation of the system cost component of the proposals. Please note that TDPUD may well achieve higher penetration rates than these and therefore, it is imperative that Vendor present a clear picture of the incremental costs of adding new subscribers (note: all TDPUD customers will have a minimum of video service): TRU KEE DONNER PUBLIC UTILITY DISTRICT Page 2 June 24, 2003 Estimated total residential video customers 4,000 Estimated residential telephone customers: 1,600 Estimated residential data customers: 2,400 Estimated commercial video customers 60 Estimated commercial telephone customers: 240 Estimated commercial data customers: 360 2.3. System Subscriber Requirements Analog & Digital Video 54 —870 MHz spectrum RF or IP set-to box return Telephone POTS Voice over IP DS1 / PRI /T1 Data Data rates: 15 Mbps downstream 4 Mbps upstream Guaranteed minimum levels; multiple levels of �4 yyp�y p µyy}a{hh yy Ya1yy�� Am J11.L'#J'3tQTl4✓)� ,# aiA� 9; ,' � 5!bYsv .,.r.:'.:.. .'..'?� mrr�W ;,�«` Residential POTS lines: 2 Ethernet 10/100 ports 3 MAC addresses er ort 5 CATV Rf outlet 1 Multiple Dwelling Units (MDU) POTS lines 4 Ethernet 10/100 ports 4 CATV Rf outlet 4 Commercial POTS lines 4 1 Ethernet 10/100 ports 4 CATV Rf outlet 2 DS1, PRI, T1 ports 12 3. PROPOSAL REQUIREMENTS TDPUD is an over builder of existing networks operated by both the existing Incumbent Local Exchange Carrier (SBC/Pacific Bell) and Incumbent Cable Television Provider(USA Media). There is a potential for multiple retail vendors on this network. As such, Vendor should point out technical issues associated with having multiple vendors, particularly voice and data, delivering services on the network. While TDPUD has a close relationship with its customers and an impeccable reputation for service, it is imperative that TDPUD offer all the services of our competitors and that the TDPUD system exceed, or at minimum equal, their functionality. To that end, answers to this RFP should take care to point out opportunities for TDPUD to offer superior voice, data, or video services, and should especially point out any real or potential deficiencies that may arise in a competitive environment, either for residential or commercial TRU KEE DONNER PUBLIC UTILITY DISTRICT Page 3 June 24, 2003 customers, when using the proposed system architecture and equipment. 3.1. Company and Solution Information Requirements: 3.1.1. Company information: location(s), number of years in business as a broadband equipment vendor, number of employees with a breakdown by job function, and a statement of services offered. Company information should also include disclosures of any bankruptcy or liens placed against the respondents within the last five years. Additionally, information should be included on whether the company is Cash Flow Positive and, if not, a brief discussion on the adequacy of existing funding to reach positive cash flow should be included. 3.1.2. Biographical information on the principals of the company, including related work experience. 3.1.3. Comprehensive list of references of related work, indicating a brief project scope, date completed and contacts (including whether it is field trial or live deployment). 3.1.4. Provide a high level diagram of the overall system that identifies all the Network Elements, Protocols, Interfaces, and Cable Plant necessary to provide complete solution. This "solution" should include complete voice, data, and video services for both residential and commercial applications. Indicate the optimal network location of each network element (i.e. outside home, at head end, etc.). For each network element not provided by the respondent (i.e. Voice gateway, routers, etc.), please identify the recommended source. 3.1.5. Provide a high level discussion of the system architecture including the underlying transport protocol (i.e. ATM, Ethernet), network topology (fiber count and layout), network architecture (i.e. PON, switched, point to point), bandwidth, standards adhered to, and suggested or preferred means or methods for handling video, telephone, and data applications. Describe the benefits and superiorities as well as the drawbacks of this architectural approach. 3.1.6. Provide a high level discussion of security level issues associated with the system architecture. Please discuss, in general terms, how ensuring these security levels will be done. 3.1.7. MINIMUM SYSTEM REQUIREMENTS 3.1.7.1. Single fiber solution for voice, data, and video. The ONU/ONT should be a single fiber, triple-play device that does not have separate, non- integrated RF video receivers and external W DM devices (i.e., it should be a truly integrated single fiber, triple play device). 3.1.7.2. IP-based optical Ethernet solution. 11.7.3. Capable of delivering symmetrical bandwidth (at least 500 Mb/s symmetrical)to the ONUS / ONTs with a guarantee of greater than 30 Mb/s of continuous bandwidth per customer. TRUCKEE Q NNER PUBLIC UTILITY DISTRICT Page 4 June 24, 2003 3.1.7.4. Single FTTX access platform that serves SFUs, MDUs, and small-to- medium businesses (with integrated T1 s)from the same OLT. 3.1.7.5. Ability to remotely provision and activate/ deactivate all ONU ports on a per customer basis for all services. 3.1.7.6. Ability to increase the bandwidth to the OLT on as customer demands dictate. 3.1.7.7. True plug-and-play ONTs / ONUS with auto discovery, pre and post- provisioning options, and integrated Automatic Gain Control. 3.2. Equipment Specifications and Details For the network elements shown in the high level diagram above, including the head-end equipment, commercial and residential CPE, and active and/or passive intermediate network elements, please provide a detailed description. Include the following details as applicable: 3.2.1. Optimal location (e.g. outside home, at head end, etc.) and alternatives. 3.2.2. Distance limitations. Describe the maximum distances that an element may be located from the head end and/or next upstream element as well as any distance related performance degradations. 3.2.3. FCC and NRTL/UL certification requirements and approvals. 3.2.4. NEBS and OSMINE compliance. 3.2.5. Dimensions. 3.2.6. Typical installation interval. 3.2.7. Operating temperature range(s). Describe if an element is suitable for outside use. 3.2.8. Power requirements including voltage input and wattage. 3.2.9. Power back-up options including availability of line powering and/or local powering for CPE and the availability of hardened and non-hardened power supply and battery backup. Please include a discussion of battery life in various failure and temperature conditions of the proposed battery. 3.2.10. Interface types, quantities, and protocols. Include a description of all card or module types. 3.2.11. Specifically for the CPE, describe which interfaces are customer accessible and which are accessible only by the carrier. 3.2.12. Configuration options including any trade-offs. TRU KEE DONNER PUBLIC UTILITY DISTRICT Page 5 June 24, 2003 3.2.12.1. Relative to feature/function. 3.2.12.2. Relative to the number of customers supported 3.3. Equipment Reliability and Maintainability 3.3.1. Describe the experienced and calculated MTBF. 3.3.2. Describe the number of customers that are affected by an element failure and/or partial failure. Include a discussion of the maximum number of customers that can be affected by any single failure in the system. 3.3.3. Describe the ability of cards, components, or whole network elements to be hot swapped. 3.3.4. For elements with software, describe the software upgrade process and estimated 'but-of-service" times. 3.3.5. Describe all situations in which network elements must be taken off-line for service. 3.3.6. Describe the redundancy architecture, including all standard and optional redundancies as well as fail over procedures. 3.3.7. Describe all single points of failure in the various network elements as well as the system as a whole. 3.3.8. Describe the fault management architecture. 3.3.9. Describe the alarms generated. 3.3.10. Describe the dry contact relays for critical alarm monitoring and control during critical failure conditions. 3.3.11. Describe in detail the craft interface and the capabilities thereof. 3.3.12. Describe in detail the OAM&P functions of the each element including all operations that can be performed. 3.3.13. Describe network maintenance and management interfaces including compatible industry standard software packages. (1) Describe how local fiber loops are tested and monitored. (2) Describe how mass provisioning can be performed and describe how element configurations can be audited. (3) Describe the Accounting Management Architecture of the system. (for billing) 3.4. End-user Bandwidth Considerations 3.4.1. Please describe the bandwidth availabilities of the system proposed. TRU KEE Q NNER PUBLIC UTILITY DISTRICT Page 6 June 24. 2003 3.4.2. Specifically describe the maximum bandwidth that can be guaranteed to each subscriber, in each direction, in a system that is configured to serve its maximum subscriber population. 3.4.3. Describe how changes to the configuration or subscriber count can increase the bandwidth guaranteed per subscriber. 3.4.4. Describe all congestion points in a system where bandwidth is shared between subscribers. 3.4.5. Describe in detail how bandwidth is guaranteed and how QOS is maintained at each of these congestion points. Include a specific discussion of voice and video traffic. 3.4.6. Describe how your system will migrate to support higher bandwidths in the future. 3.4.7. Describe what changes will be required to the current hardware and software platforms to perform such upgrades. 3.5. Bandwidth Allocation Considerations 3.5.1. Information on the range at which data rates can be scaled for the customer with service level agreements. 3.5.2. Information on how service level agreements are managed with regard to data rates guaranteed and allowed in burst mode. 3.5.3. Information on how data rates and bandwidth are allocated to customers, including detailed recommendations on traffic engineering if any is required. 3.5A4 Information on egress ports requirements to router. 3.6. Video System Operation 3.6.1. Information on how the system transports analog, digital (QAM)video signals, and IP video signals. 3.6.2. Information on what frequency range is supported for transport of video signals. 3.6.3. Information on how video return is accomplished; whether an RF return is utilized; what frequency range would be used for return signals. 3.6.4. Information regarding IP return, if used, including a list of vendors whose set-top converters are compatible with the system. 3.6.5. Information regarding whether the customer premise equipment can accommodate a ten-pole negative trap within the customer restricted area of the TRUCKEE D NNER PUBLIC UTILITY DISTRICT Page 7 June 24, 2003 equipment. 3.6.6. Information on how the customer premise equipment can be secured to prevent unauthorized removal of the negative trap. 3.6.7. Information on the need and location of EDFA amplifiers. 3.6.8. Information on deploying IP video signals, which gear has been tested for inoperability with system, etc. 3.7. Telephony - POTS 3.7.1. Informational list of all carrier class telephone Class 5 switches that have been certified to be compatible with system to be provided. 3.7.2. Informational list of all carrier class softswitches and gateways that are certified as compatible with system to be provided. 3.7.3. Details on the subscriber side telephone interfaces. 3.7A. Details on the ringing source. 3.7.5. Details on the network side telephone interfaces including the ability to support GR-303 and/or any standard softswitch interfaces. 3.8. Telephony —Voice over IP 3.8.1. Details on the subscriber side telephone interfaces. 3.8.2. Ability to transport GR-303 from customer premise to central office and convert to VOIP at central office (i.e. if POTS is available on CPE, how can we use it to avoid converting customer to IP telephones). 3.8.3. Details on your proposed "end-to-end"VOIP solution (i.e. what other gear is required in order to provide retail VOIP residential and commercial services) 3.9. Training and Support 3.9.1. Number of training seats included with initial purchase. 3.9.2. Information on or samples of training manuals included with the initial purchase and number to be provided. 3.9.3. Information on training requirements for TDPUD employees (on-site in Truckee, off-site at vendor location, or combination of both). 3.9.4. Length of training classes to be provided to achieve proficiency in operation and maintenance of equipment and software. TRU KEE D NNER PUBLIC UTILITY DISTRICT Page 8 June 24, 2003 3.9.5. Cost for additional training and periodic re-training, if required. 3.10. Other Key Information 3.10.1. Describe the expandability of system to accommodate extension of services to other communities within a 70 mile radius of TDPUD central-office facility. 3.10.2. Describe in detail how data security is maintained between applications and between different customers when that data has common transport. 3.10.3. Provide a timetable of delivery schedules following award of contract of components for system construction. 3.10.4. Describe stock availability of components of FTTU system and delivery times. Statement that all components of the proposed system will be operational and in production as of July 1, 2003. 3.10.5. Warranty information on hardware, equipment, and software, detailed for each showing what is covered, at what level and for how long following placement in service. 3.10.6. Describe your post sales support structure, to include TAC, maintenance software releases, patch releases, and feature requests. 3.10.7. Describe your repair and return policy including costs and the availability of in place replacements. 3.10.8. Please describe the "roadmap" for the future development of your system and network elements. 4. DESIGN PRICING TDPUD desires to have the network design for electronics and outside plant primarily performed by the equipment vendor. The reasoning behind this decision is to ensure that the final network is compatible with all the technical specifications of the equipment vendor. Prior to making the decision to build a FTTU network, TDPUD completed an HFC network design. As such, all the strand mapping and house/business counts are essentially complete. This original HFC design was done in 2001, so the selected vendor will be responsible for verifying the accuracy of the strand maps and house/business counts. System maps are available in ESRI (Arclnfo) and/or AutoCad format. One of the great advantages of an FTTU network is that it allows TDPUD to defer significant CPE and system electronics costs until there is a revenue paying customer. As such, the final design product should minimize "upfront' electronics, in an attempt to allow as much incremental cost as reasonable as we add customers. TRU KEE D NNER PUBLIC UTILITY DISTRICT Page 9 June 24, 2003 Pricing for the network design should be given for the following network elements (assume 165 miles of plant): Strand Mapping Review $/Mile House/Business Count Review $/Mile Outside Plant Fiber Design $/Mile Central Office/Electronics Design Lump Sum Although the design is largely unit based pricing, and understanding the final pricing may be less, TDPUD requires a definitive statement of a "Not to Exceed" price for the design portion of this RFP response. Final design will allow the construction vendor to completely build the outside plant network. It will include detailed fiber splicing diagrams and construction bill of materials. The outside plant design will allow for service to 100% of the homes and businesses passed. Final design must be reviewed and stamped by a California Professional Engineer. If respondent to the RFP intends to subcontract any or all of this design work, please include a resume on subcontractor, along with their experience in FTTU design. 5. EQUIPMENT PRICING Please provide pricing for all components and elements required to provide the services described above to the following number of customers: 1. Residential "Video Only" customers: 1,000 2. Residential "Video and Data" customers: 1,400 3. Residential "Video and Telephone" customers: 600 4. Residential "Video, Data, and Telephone" customers: 1,000 5. Small Commercial "Data Only" customers: 120 6. Small Commercial "Data and Telephone" customers: 160 7. Small Commercial "Video, Data, and Telephone" customers: 60 8. Medium/Large Commercial "Data Only" customers: 10 9. Medium/Large Commercial "Data and Telephone" customers: 10 If partnerships or joint ventures exist between companies for the "total' solution (e.g. one company provides FTTU product, another company provides optical components, another company provides voice gateway, etc.), please provide seperate pricing for all elements included in the partnership/joint venture. TDPUD requires a definitive statement of a "Not to Exceed" price for the vendor(or partner) supplied electronics portion of this RFP response. The "Not to Exceed" pricing will assume the above penetration rates, as well as the necessary central office and intermediate electronics in the outside plant. For the purposes of this "Not to Exceed" pricing, assume that these penetrations will happen in a linear fashion over 24 months, beginning in November 2003. TRU KEE D NNER PUBLIC UTILITY DISTRICT Page 10 June 24, 2003 6. PAYMENT SCHEDULE Payment for the various items of the Bid Schedule, as further specified herein, shall include all compensation to be received by the VENDOR for furnishing all tools, equipment, supplies, and manufactured articles, and for all labor, operations, and incidentals appurtenant to the items of work being described,as necessary to complete the various items of the WORK all in accordance with the requirements of the Contract Documents, including all appurtenances thereto,and including all costs of permits and cost of compliance with the regulations of public agencies having jurisdiction, including Safety and Health Requirements of the California Division of Industrial Safety and the Occupational Safety and Health Administration of the U.S. Department of Labor(OSHA). No separate payment will be made for any item that is not specifically set forth in the Bid Schedule, and all costs therefore shall be included in the prices named in the Bid Schedule for the various appurtenant items of work. The payments schedule shall be half('/z)of the total vendor bid schedule thirty(30)days after receipt of all the required network, headend,and outside equipment and the final half('/2)upon successful turn up, test and acceptance of the system and the delivery of 1000 units of subscriber premises equipment. 7. SURETY REQUIREMENTS TDPUD realizes that the FTTU equipment vendor market is young and not fully matured. As such, the selection of the FTTU equipment vendor represents the single highest risk exposure in the deployment of this network. This project will be funded with public bonds that will require Surety instruments. TDPUD is well aware of the difficulty of Vendor obtaining these Surety instruments in an immature market. However, where public funds are financing a project, this requirement cannot be avoided. Thus, the surety requirement can be met by either a cashier's check in the amount of 10% of the bid amount or through a bid bond on the form attached or other acceptable form in an amount not less than 10% of the amount of the bid provided by a licensed surety. The bid bond is put here in anticipation of a supply bond being put in place by the winning bidder. 8. WARNING TO BIDDERS The response to this request for bid must be enclosed in a sealed envelope when the bid is deposited with the District. The successful bidder will be required to enter into the contract attached to the proposal for the items covered by the award. 9. MANNER OF SUBMITTING BIDS Prior to submitting bids make sure that: a) Each schedule's inquiry/bid sheet is complete and totals are correct. b) The bid bond, in the proper amount, is attached to the bid package. c) Non-collusion affidavit, filled out and signed by bidder, is attached to the bid package TRU KEE DONNER PUBLIC UTILITY DISTRICT Page 11 June 24, 2003 d) The Bidder has acknowledged the receipt of any Addenda. 9.1. Inquiries: Direct any questions regarding the Bid Request in writing by mail, fax, or email to: Jim Meadows FSG Consulting & Engineering 329 Rheem Blvd Suite 201 Moraga, California 94556 Fax: 925-377-1554 Email:jmeadows@fsgp.com 9.2. Submission details • Submit 1 signed master paper copy • Submit 5 additional plastic spiral-bound copies • 2 CDs containing the entire proposal and all associated attachments When submitting a bid, place the complete bid document in an opaque sealed envelope and either mail to: Request for Bid for FTTU System— Alan Harry, Director of Telecommunications, Truckee Donner PUD, P. O. Box 309, Truckee, CA 96160; or Hand deliver the bid to 11570 Donner Pass Road, Truckee, CA. Bids transmitted via facsimile will not be accepted. 10.EXAMINATION OF CONDITIONS Filing of a bid shall constitute affirmation by the bidder that he has complied with the following: a) Carefully examined the contract documents. b) Included in the proposal sum amounts sufficient to cover all items required by the contract documents. The failure or omission of any bidder to receive or examine any form, instrument, addendum, or other documents shall in no way relieve any bidder from any obligation with respect to his proposal of the contract. TRUCKEE D NNER PUBLIC UTILITY DISTRICT Page 12 June 24, 2003 11.BID EVALUATION PROCESS The contract will be tentatively awarded to the lowest responsive bidder, defined as the lowest bidder whose bid contains all the requested information, as well as equipment and design features consistent with the specifications listed in the TDPUD bid specifications. The proposal received from the apparent low bidder will be used to evaluate the bidders responsibility. If the apparent low bidder appears to lack sufficient experience, skill, and financial wherewithal to furnish the equipment and services contained in its bid, TDPUD may hold a hearing to discuss whether the apparent low bidder is a responsible bidder. Brochures and other printed materials may be used in the responses to the requests for items of information as support information only, not in lieu of a detailed response. In the event that the apparent low bidder is deemed irresponsible, the contract will be tentatively awarded to the next lowest bidder and the process will be repeated until the lowest responsible bidder is identified. The contract will be awarded to the lowest responsible bidder. 12.DISTRICT'S RIGHT TO REJECT BIDS The District reserves the unqualified right in its sole and absolute discretion to reject any and all bids, and to accept the bid or bids which in its sole and absolute judgment, will, under all circumstances best serve the interest of the District. Each bid shall be deemed a firm offer continuing for one hundred eighty (180)days after the date set for the opening of the bids. 11 CONTRACT The contract includes all advertisements for bids, notice and instructions to bidders, form of proposal, bid bond, agreement and specifications. The contract, when executed, shall be deemed to include the entire agreement between the parties thereto, and the successful bidder shall not claim any modification thereof resulting from any representation or promise made at any time by any officer, agent or employee of the District or by any other person. 14.PROPOSAL MODIFICATIONS Proposals may be modified up until the time of bid opening. Modifications must be in writing. No telegraphic or telephone modifications will be allowed. 15.PROPOSAL WITHDRAWAL Proposal may be withdrawn any time prior to the time set for bid opening. Once proposals are opened, they may not be withdrawn for one hundred eighty(180) days. TRU KEE D NNER PUBLIC UTILITY DISTRICT Page 13 June 24, 2003 16.POSTPONEMENT OF OPENING The District reserves the right to postpone the time and date of bid opening as the District deems necessary. Such postponement will be conveyed to all bidders by written or telegraphic notice which will state the new opening time and date. 17.INTERPRETATION OR CORRECTION OF CONTRACT The bidder shall promptly notify the District of any ambiguity, inconsistency, or error which he may discover in the contract or, if applicable, the site or local conditions. If the bidder requires clarification or interpretation of the contract, he shall make a written request to reach the District seven days prior to the scheduled bid opening. Any interpretations, corrections, or changes to the contract prior to the bid opening shall be made by addenda issued to all bidders. Each bidder shall acknowledge receipt of each addendum by signing in the space provided and attaching each addendum to the bidder's proposal. Interpretations, corrections, or changes of the contract prior to bid opening made in any other manner than as described above will not be binding and bidders shall not rely upon such interpretations, corrections and changes. 18.SOURCE OF FUNDS AND LIMITATION OF DAMAGES Bidder is hereby informed that funds for these materials are limited and are public funds derived through revenues appropriated through the budgetary process. The District's decision to award a contract to the successful bidder is dependent upon the bidder's agreement to limit all claims for payments by the District to the unit prices or lump sum bids proposed herein. Further, in the event the bidder is awarded the contract for the system stated herein and a dispute arises between the bidder and the District regarding unreasonable delays, claims for extra compensation, or any of the provisions of the contract, the bidder agrees to limit the total of all claims against the District for this contract, including any damages, to the total funds appropriated by the District for this contract. 19.LIQUIDATED DAMAGES/CONTRACT CANCELLATION In addition to any other remedies provided by law, the Truckee Donner Public Utility District reserves the right, in its sole discretion, to levy liquidated damages in the amount of 2% of the bid price per day subject to a maximum amount of 30% of the bid price for failure to deliver within fourteen (14) days after the quoted delivery date for whatever reason. Any liquidated damages levied will be deducted from any amounts owed to the supplier. If delivery is not made within thirty(30) days of scheduled delivery date, the District has, at its sole discretion, the right to terminate this contract and purchase from other sources. TRU KEE © NNER PUBLIC UTILITY DISTRICT Page 14 June 24, 2003 BID BOND MATERIAL PURCHASE CONTRACT KNOW ALL MEN BY THESE PRESENTS,that we,the undersigned, as Principal,and as Surety,are hereby held and firmly bound unto as OWNER in the penal sum of for payment of which,well and truly to be made, we hereby jointly and severally bind ourselves, successors and assigns. Signed this_day of 2003. The condition of the above obligation is such that whereas the Principal has submitted to a certain BID, attached hereto and hereby made a part hereof to enter into a contract in writing, for the NOW, THEREFORE: a) If said BID shall be rejected, or b) If said BID shall be accepted and the Principal shall execute and deliver a contract in the form of contract attachment hereto (properly completed in accordance with said BID)and shall in all other respects perform the agreement created by the acceptance of said BID,then this obligation shall be void,otherwise the same shall remain in force and effect; it being expressly understood and agreed that the liability of the Surety for any and all claims hereunder shall, in no event, exceed the penal amount of this obligation as herein stated. The Surety, for value received, hereby stipulates and agrees that the obligations of said Surety and its BOND shall be in no way impaired or affected by any extension of the time within which the OWNER may accept such BID; and said Surety does herebywaive notice of any such extension. IN WITNESS WHEREOF, the Principal and the Surety have hereunto set their hands and seals, and such of them as are corporations have caused their corporate seals to be hereto affixed and these presents to be signed by their proper officers, the day and year first set forth above. Principal Surety By *IMPORTANT: Surety companies executing BONDS must appear on the Treasury Department's most current list(Circular 570 as amended)and be authorized to transact business in the State of California where the project is located. TRU KEE © NNER PUBLIC UTILITY DISTRICT Page 15 June 24, 2003 AGREEMENT This agreement is entered into as of the day of 2003, by and between the Truckee Donner Public Utility District, a local agency of the State of California (the"District"and/or "Owner")and ("Bidder", "Vendor", "Supplier" and/or"Seller"). The parties hereto agree as follows: 1. DESCRIPTION OF WORK Successful bidder agrees,for the consideration and under the terms and conditions hereinafter set forth, to furnish the materials which are described on the Notice and Instructions to Bidders, Bid Bond, Specifications and Agreement, all of which are attached hereto and incorporated herein by reference. 2. CONTRACT PRICE The District shall pay the successful bidder the price set forth in the bid, hereinafter called"Contract Price." 3. INDEMNITY AGREEMENT will defend, indemnify and hold Truckee Donner Public Utility District harmless against any loss,damage, liability, claim or cause of action on account of personal injury, death or property damage, whether sustained by Truckee Donner Public Utility District, its employees or any third party, to the extent caused by the act or omission of , or its subcontractors, agents, or employees in performing this Agreement or by the defective condition of the goods supplied by underthis Agreement. will not be required to indemnify Truckee Donner Public Utility District against any loss,damage, liability, claim or cause of action to the extent caused bythe act or omission, negligent or otherwise, of Truckee Donner Public Utility District, its agents,employees,or subcontractors. 4. LIQUIDATED DAMAGES/CONTRACT CANCELLATION In addition to any other remedies provided by law,the Truckee Donner Public Utility District reserves the right, in its sole discretion,to levy liquidated damages in the amount of 2%of the net unit price or lump sum price for a given Bid Schedule item per day subject to a maximum amount of 30%of the net unit price or lump sum price per , for failure to deliver a given Bid Schedule item within fourteen (14) days after the quoted delivery date for whatever reason.Any liquidated damages levied will be deducted from any amounts owed to the Supplier. The failure of the Supplier to meet a delivery date for a given Bid Schedule item and the levying of liquidated damages shall not relieve the Supplier from its responsibilities in regards to other Bid Schedule items and shall not prevent the District from levying liquidated damages related to failures to deliver other Bid Schedule items. If delivery is not made within thirty(30) days of scheduled delivery date, the District has, at its sole discretion, the right to terminate this contract and purchase from other sources. Contractor agrees that, should the District exercise the option to terminate the contract and purchase elsewhere, the contractor shall pay the District, within thirty (30) days of receipt of an invoice, the difference between the contractor's per unit bid price and the actual price per unit paid by the District plus any TRU KEE C} NNER PUBLIC UTILITY DISTRICT Page 16 June 24, 2003 additional related costs. 5. GUARANTEE The bidder guarantees that the materials furnished under the contract meets all the requirements of the specifications. 6. SHIPPING AND DELIVERY The vendor shall prepare the materials for shipment in such a manner as to protect them from damage in transit and shall be responsible for and make good any and all damage incurred while loading, unloading or in transit. If the materials are excessively damaged in shipment, they will be refused on delivery and it will be the vendor's responsibility to arrange for prompt inspection, repair or replacement of the materials. The Supplier has referred to the Specifications for additional requirements regarding shipping and delivery. 7. NOTICES Any and all notices or other matters required or permitted by this agreement or by law to be served on,given to,or delivered to either party hereto by the other party to this agreement shall be in writing and shall be deemed duly served, given, or delivered when personally delivered to the party to whom it is addressed or in lieu of such personal service, five days after deposited in the United States mail, first-class postage paid, addressed to the District at Post Office Box 309, Truckee, California 96160, or to successful bidder at Either party may change its address for the purpose of this section by giving written notice of such change to the other party in the manner provided in this section. 8. ATTORNEYS' EXPERTS' AND CONSULTANTS' FEES In the event of any litigation concerning any controversy, claim or dispute between the parties hereto, arising out of or relating to this agreement or the breach hereof, or the interpretation hereof, the prevailing party shall be entitled to recoverfrom the losing party reasonable expenses,attorneys' fees, experts' fees, and consultants' fees, and costs incurred therein or in the enforcement or collection of any judgment or award rendered therein. 9. CAPTIONS The captions and headings of the different sections of this agreement are inserted for convenience of reference only, and are not to be taken as part of this agreement or to control or affect the meaning, construction, or effect of the same. TRU KEE D NNER PUBLIC UTILITY DISTRICT Page 17 June 24, 2003 10. NECESSARY ACTS Each party to this agreement agrees to perform any further acts and execute and deliver any further documents that may be reasonably necessary to carry out the provisions of this agreement. 11. ASSIGNMENT Neither party may assign this agreement,or payments due under the agreement without the written consent of the other party. 12. GOVERNING LAW This agreement shall be construed in accordance with, and governed by, the laws of the State of California. 13. FORUM Any litigation to enforce or interpret the provisions of this agreement or the parties' rights and liabilities arising out of this agreement or the performance hereunder shall be maintained only in the courts in the County of Nevada, State of California. 14. SOLE AND ONLY AGREEMENT This agreement, including any exhibits attached hereto,constitutes the sole and only agreement of the parties hereto relating to the project and correctly sets forth the rights, duties and obligations of each to the other as of its date. Any prior agreements, promises, negotiations, or representations not expressly set forth in this agreement are of no force and effect. 15. DISTRICT POWERS Nothing herein contained shall be deemed to limit, restrict or modify any right, duty or obligation given, granted, or imposed upon the District by the laws of the State of California now in effect, or hereafter adopted, nor to limit or restrict the power or authority of the District. 18. TIME OF ESSENCE Time is of the essence of this agreement. 17. SEVERABILITY In the event that any part or provision of this agreement is found to be illegal or unconstitutional by a court of competent jurisdiction, such findings shall not affect the remaining parts, portions, or provisions of this agreement. 18. ASSIGNMENT OF RIGHTS Successful bidder agrees to assign to the District all rights, title, and interest in and to all causes of action it may have under the Cartwright Act(Chapter 2, commending with Section 16700, of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services, or materials pursuant to the agreement and that such assignment shall be made and become effective TRU KEE D NNER PUBLIC UTILITY DISTRICT Page 18 June 24, 2003 at the time the District tenders final payment to successful bidder, without further acknowledgment by the parties. 19. FORCE MAJEURE Neither party shall be liable to the other for failure to perform its obligations under this agreement if the affected party has been prevented from performing by an event beyond its reasonable control, including but not limited to acts of God, acts of government, strikes, casualties, or delays in transportation. 20. LIMITED WARRANTY Seller warrants to Buyer only, that the goods delivered hereunder at the time of delivery will be free from defects in material or workmanship. Seller shall correct by repair or prompt replacement at seller's option, FOB a field location designated by Buyer, any defect which shall appear under normal and proper use of the equipment purchased within one (1)year after date of shipment or within one (1)year after installation of the equipment, whichever is longer, but not exceeding eighteen (18) months from date of shipment. The furnishing of warranty services hereunder shall not extend the warranty period on the goods furnished hereunder. Seller shall be liable for costs of (a) equipment removal, (b) costs of transporting equipment to be repaired or replaced to Seller, or repaired equipment or replaced equipment to Buyer (c) re-installing replacement equipment, and (d) any other cost incidental to the foregoing. For purposes of this section "Limited Warranty", "suitable replacement equipment" shall mean new or refurbished equipment originally manufactured by Seller and functionally equivalent to or better than the replaced equipment, and "prompt replacement' shall mean shipping replacement equipment within five (5) business days after receipt of notice from Buyer that such equipment is needed. TRUCKEE DONNER PUBLIC UTILITY DISTRICT Date Peter L. Holzmeister, General Manager Date Distributing Company Printed Name and Title TRU KEE D NNER PUBLIC UTILITY DISTRICT Page 19 June 24, 2003 NON-COLLUSION AFFIDAVIT TO BE EXECUTED BY BIDDER AND SUBMITTED WITH BID State of County of being first duly sworn,deposes and says that he or she is of ,the party making the foregoing bid that the bid is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation; that the bid is genuine and not collusive or sham;that the bidder has not directly or indirectly induced or solicited any other bidder to put in a false or sham bid, and has not directly or indirectly colluded, conspired,connived,or agreed with any bidder or anyone else to put in a sham bid or that anyone shall refrain from bidding;that the bidder has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the bid price of the bidder or any other bidder, or to fix any overhead, profit, or cost element of the bid price, or of that of any other bidder, or to secure any advantage against the public body awarding the contract of anyone interested in the proposed contract;that all statements contained in the bid are true; and, further, that the bidder has not, directly or indirectly, submitted his or her bid price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto,or paid, and will not pay,any fee to any corporation, partnership, company, association, organization, bid depository, or to any member or agent thereof to effectuate a collusive or sham bid. In witness whereof this instrument is executed by the duly authorized officials on the date first above written. BIDDER Signature of Authorized Official Printed Name and Title TRU KEE D NNER PUBLIC UTILITY DISTRICT Page 20 June 24, 2003