R2019-43 Resolution Authorizing Approval of Master Contract, Participating Addendum to the Master Contract Between the Commonwealth of Virginia and Gillig, LLC

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!f 4 f i€ f t � , i 3 I 9. RENEWA�.OF CqNTRACT ' The Commo�wealth may renew this Contract at its sole discretion, upon the written mutual agreement of both parties for three (3)additional,one-year successive periods, under the terms of the current Contract,The Commonweaith will ' provide the Contractor with its notice to renew the Contract at a reasonable time(approximately 90 days)prior to the ' expiration of the initial term,or of any subsequent renewa!term period. ' If all renewals are exercised,the final term of the contract wili be June 1,2020 th�ough May 31,2021. ; 6. PRICING Prices for base Buses with standard features and additional optionstupgrades are listed herein as Attachment A entitled"Products and Pricing Schedule"As new fechnology uMolds,optrons/upgrades will be updated on Attachment A. 7. PRICE ESCAI.ATION/DE-ESCALATION Prices for base Buses with standard features and additlonal options/upgrades are listed he�ein as Attachment A, entitled"Products and Pricing Schedule"As new technology unfolds,options/upgrades will be updated on Attachment i A.Users should review all optionslupgrades and pricing before starting"pre build°discussions with Contractors. , Discounts are to be considered the minimum for the entire term of the Contract. Base Bus prices may be negotiated . on an annual basis. Price adjustments and/or discount adjustments may be permitted for changes in fhe Contracfor's cost of materials or services. Ttie Produce� Price Index of the United States pepartment of Labor, Bureau of Labor i Statistics wilf be used by the Commonweafth as a guide in reviewing any Rate/Price increase requests. Price ; escalation may be authorized at the end of the initial(one year)term and 4n1�whe��verified i'o�f�e sati�Factian afi the Contracf Manacter. However,"across fhe board"p�ice decreases are subject to implementation at any time and shall be immediately conveyed to the Commanwealth. The Contractor shall document the amount of any general change in the price of materials. Documentation shall be supplied with the Contractor's request for increase which must: (1}verify that the requested price increase is general in scope and not applicable just to the Commonwealth of Virginfa;and(2)verify the amount or percentage of increase which is being passed on to the Contractor by the ContractoPs suppliers. All changes in the prices and/or discounts applicable to the Commornvealth must be approved i� writing by the Division of Purchases and 5upply prior to implementation by the Contractor. The DGS/DPS Contract Manager will notify the Authorized Users and Contracto�in writing of ihe etfective date of any - approved increase. However, the Cantractor shall fill all orders received prior to the effective date of.the price adjustment at the old Contract prices. The Contractor is further advised that decreases that affect the cost of materials are required to be communicated immediateiy to the Contract Manager. Base Bus prices may be negotiated on an annual basis �nly at the time af renewal, At its sole discretion, the Cammonweaifh may permit such price adjustments only at the time of Contract renewal, and only where verified to the satisfaction of the Cantract Manager,The Con�ct,pric�nu fdr anv reaewal rserfod shall,�a��x�$ed the lesser of:al fpur �eroent (4°�) of the Contract pricing for the prior term, or, b) the Contract p�icing for the prior period, increasedldec�eased by no more than the percentage increase/decrease for the previous twelve (12) month period, under the United States (US} Department of Labor'� (DOLj Bureau of Labor StatisC�cs' (BLS) Producer Price Index (PPI) category series identification "WPU1413" "Tiuck and Bus 8odies" for the latest tweive (12) month period far whieh statistics are availab(e. (•hltrsJ/daia.bls,gav/timesefiesNVPf�14�3�. Pcice adjusiments are at the sole discretion of the Commonwealth, onty permitted annually at the Ume of Contract renewal a�d only where verifled to the satisfaction of the DGS/DPS Contract Managar. Contractor shall give not less than thirty(30)days advance notice of any price increase request,with documentation, to the Cont�act Manager. The Contract Manager will notify the Contractor in writing of any appfoved increase. Price inerease would take effect on the first day of the�enewal pricing period. However,the Contractor shall fill all purchase orders received prior to the effective date of the price adjustment at the old Contract prices. "Across the board"price decreases are subject to implementation at any fime and shall be immediately conveyed ta the Commonweafth and reflected in subsequent invoices. Gllllg Buses E19475548 MA2274 (Page 3 ot 23J