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Home My WebLink About2008 Abstract - Purchasing Courier Mail Services Through Orange Enterprise Inc ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: December 11, 2008 Action Agenda Item No. SUBJECT: Contract Renewal: Courier/Mail Services through OE Enterprises, Inc. DEPARTMENT: Purchasing and Central Srvcs. PUBLIC HEARING: (Y/N) No ATTACHMENT(S): Contract INFORMATION CONTACT: Pam Jones (919) 245-2652 PURPOSE: To consider renewing a contract with OE Enterprises, Inc. (OE) for courier and mail processing services effective December 1, 2008 through November 30, 2011. BACKGROUND: The County historically provided courier and mail processing services through the Central Services Department. Earlier this.decade courier services were provided only to the County offices located in Hillsborough, who would then make arrangements for the courier/mail delivery to satellite offices in Chapel Hill where applicable (e.g. Health and DSS to Southern Human Services Center). As the number of departments without a Hillsborough location increased, the courier/mail services were extended to some locations in Chapel Hill (e.g. Solid Waste, Human Rights and Relations). The increasing level of service would have necessitated the addition of staff to provide the service and backup. Rather than continuing to add County staff, a contracting arrangement with OE was established in 2005. The contractual arrangement continues to allow the County to maintain a reasonable fiscal commitment while maintaining an excellent level of service and is therefore recommended for a three year renewal through November 30, 2011. FINANCIAL IMPACT: The County courier/mail process services will be provided by OE at its location for a total of $4,300 per month, $51,600 per year. The agreement allows the negotiation of annual increases, not to exceed the Consumer Price Index increase. OE will bill the County for metered postage monthly at actual cost. Funds to support this agreement are included in the FY2008-2009 Central Services operating budget. RECOMMENDATION(S): The Manager recommends the Board approve the contract for courier/mail processing services with OE fora period from December 1, 2008 through November 30, 2011; and authorize the Chair to sign on behalf of the Board. BOCC OE Enterprises, Inc. Purchasing STATE OF NORTH CAROLINA CONTRACT ORANGE COUNTY WHEREAS, this the 11th day of December 2008, the County of Orange North Carolina, hereinafter referred to as "County", and OE Enterprises, Inc., hereinafter referred to as "OE" desire to enter into an agreement for daily courier and mail processing services for County offices and mutually agree as follows: A. Responsibilities of OE Enterprises, Inc. 1. OE will perform the duties as outlined in Attachment A, "Policies and Procedures for Courier and Mail Processing Services", which may be amended from time to time. 2. OE shall provide all equipment and personnel necessary to carry out the requirements of this agreement. 3. OE staff and OE consumers shall conduct themselves in a professional manner when in County offices and will not engage in lengthy conversations with County staff or clients in County buildings regarding non-business matters. OE staff and OE consumers will refrain from entering areas within a department unless necessary to carry out the scope of work contained in this agreement. 4. OE will promptly report specific issues related to the performance of this agreement to the contact person for the County as named herein. 5. OE shall provide business insurance necessary to cover exposures created by this agreement. Orange County shall be named as an additional insured as their interests may appear. OE agrees to hold the County harmless from any and all claims against the County, its elected officials, employees, or volunteers, for injury or loss resulting from the services provided to the County pursuant to this agreement. Proof of insurance including proof of Worker's Compensation coverage will be presented to the County on or before the effective date of this agreement and with each renewal thereafter. Insurance coverages provided by OE shall include all persons engaged in the pertormance of this agreement. Coverages shall include, but shall not necessarily be limited to the following: • General liability insurance in an amount no less than $1 million • Automobile liability insurance in an amount no less than $100,000 per accident, $500,000 combined single limit per accident • Workers compensation insurance covering any person engaged in the performance of this agreement. B. County Responsibilities: 1. The County shall provide OE with schedules necessary to carry out the work in this agreement, examples of which include: schedule of stops for courier services and mail pick up and schedule of holidays observed by the County each year. 2. The County shall pay the invoices submitted by OE within 30 days of receipt of accurate invoice; ,~ 3 3. The County shall provide instruction to County departments regarding specific processes required for the successful execution of the work contained in this agreement, an example of which is the appropriate manner for departments to identify mail for billing purposes. 4. The County will promptly report specific issues related to the performance of this agreement to the contact person for OE as named herein. 5. The County will convene semi-annual meetings between OE and the County to assess the effectiveness of the contract and discuss procedural changes that may be in order. Meetings will be held during the months of March and September each year of the contract period. C. Term of Agreement This agreement shall commence on December 1, 2008 and expire at.12:00 midnight on November 30, 2011. D. Payment Terms OE shall submit for payment monthly invoices to the County in the amount of $4,300 for services provided by this agreement. OE shall submit monthly invoices for actual postage used by departments, itemized by departmental billing codes, as provided by County. OE acknowledges and agrees that a strict accounting must be maintained for the postage used by the County and any misrepresentation or inaccurate billing may have negative consequences, including, but not limited to finding OE in breach of contract, which may provide grounds for contract termination. Invoices should be addressed to the contact person listed herein. The County shall pay invoices submitted by OE within 30 days of receipt of accurate invoice. E. Annual Increases Increases in contract cost shall be negotiated annually, with increases not to exceed the annual Consumer Price Index (CPI) for the previous year. Annual increases, if any, will be discussed during the semi-annual meeting in March so that agreement may be reached prior to inclusion in the County's annual budget request. F. Termination Either party may terminate this agreement by giving 120-days notice to the other, or as otherwise provided in this agreement. OE acknowledges the importance of this service to County Departments and agrees that accurate delivery of mail and courier to the departments is critical to their efficient and effective daily operation. OE and the County will develop a mutually acceptable performance standard within the first month of this agreement, an articulation of which shall be attached to this agreement. Failure to meet the performance standard for a period of three consecutive months may result in the termination of this agreement. G. Quality Assurance Either party shall notify the other immediately of any issues related to the performance of this agreement in order to assure on-going pertormance standards are met. 4`. OE and County shall conduct semi-annual meetings in March and September each year to discuss overall contract performance. Issues raised during these meetings shall be cured by the responsible party within a time agreed to by the parties. Failure to do so may be considered breach of contract and the agreement may be terminated without further notice or as otherwise provided in this agreement. H. Independent Contractor OE shall for the purposes of this agreement be an independent contractor and as such shall not be eligible for any County benefits, including workers' compensation. I. Contact Information For the purposes of this agreement the following persons shall be the primary point of contact regarding issues related to this agreement: For County: Pam Jones Orange County Director of Purchasing and Central Services 129 East King Street PO Box 8181 Hillsborough, NC .27278 For OE Enterprises, Inc.: Ken Miller, Production Manager OE Enterprises, Inc. 348 Elizabeth Brady Road Hillsborough, NC 27278 In witness whereof, the parties hereunto cause this agreement to be executed in their respective names. This the day of , 2008. Contractor: Executive Director County: Chair Witness: Secretary Attest: Donna S. Baker, Clerk