Agenda 03/10/2009 Item #16C 1
Agenda Item No. 16C1
March 10, 2009
Page 1 of 19
.~
EXECUTIVE SUMMARY
Recommendation to award Agreement #08-5125 to Southwest Direct, to outsource the
printing and mailing of Collier County Water-Sewer District utility bills, at an estimated
annual amount not to exceed $100,000.
OBJECTIVE: Award Agreement #08.5]25 to Southwest Direct (SWD), to outsource the
printing and mailing of Collier County Water.Sewer District water and wastewater utility bills.
CONSIDERATIONS: The Collier County Water.Sewer District (CCWSD) currently prints
customer utility bills in-house utilizing three (3) leased Pitney Bowes Documatch printing,
sorting and mailing machines. The utility bills are printed on pre-printed utility bill forms
purchased from an approved print vendor in large quantities (for volume discounts) and stored
on.site at the Utility Billing and Customer Service Department, or at the vendor's warehouse.
Using pre-printed utility bill forms limits the CCWSD ability to provide informational bills with
pertinent, customer-specific messages included on the bill. The Documatch machines print, fold
and insert all pertinent documents into the outgoing envelopes, including a return payment
envelope. The pre-printed bill forms, return payment envelopes, and any educational outreach
inserts must meet the strict tolerances of the Documatch equipment in terms of paper
specifications as to weight and grain cut. The printing equipment often jams, causing billing
staff to spend time performing non. value added tasks.
.-- Outsourcing this function has many benefits, both tangible and intangible:
. Estimated annual cost savings of $65,000 (as depicted in the Fiscal Impact). The actual
annual cost of the contract will depend on the number of utility bills printed and mailed.
. Provides for business continuity in the event the Mercantile Avenue facility is damaged
or destroyed in a natural disaster.
. Provides for flexible formatting of utility bills to meet customer needs.
. Southwest Direct has the capability to implement additional billing functionality such as
electronic bill presentment (customers will have the option to receive their utility bill via
email), a feature frequently requested by customers who reside out of state/out of
country, as well as the ability to fully view the utility bill on-line.
. Provides the ability to eliminate the return payment envelope for customers who pay via
automatic bank draft, also frequently requested by customers.
There may be opportunities for the CCWSD to realize additional cost savings in the future
through improved cash flow and posta] savings. As more customers opt to receive their bills
electronically, expenditures for postage will decrease. As more customers receive and pay their
bills electronically, the time lapse between the time the bills are issued and the time the payment
is received is reduced, thereby speeding the full cycle of the accounts receivable process.
.---
On October ]8, 2008, the Collier County Utility Billing and Customer Service Department,
through the Collier County Purchasing Department, sent Request For Proposal (RFP) #08.5125
to forty-eight (48) vendors specializing in bulk printing and mailing. Forty-three (43) vendors
requested the package; four (4) proposals were received. The companies who responded, ranked
by the selection committee in order from highest score to lowest score, were:
Agenda Item No. 16C1
March 10, 2009
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1. Southwest Direct - Fort Myers, Florida
2. Infosend Inc. - California
3. Matrix Imaging Solutions - New York
4. InTech - Naples, Florida
The selection committee reviewed all responses per the requirements included in the RFP.
InTech of Naples was awarded 10 points for local vendor preference. The committee selected
the vendor with the highest score to demonstrate the capabilities of their web page. Ultimately,
the selection committee unanimously recommended Southwest Direct to perform the outsourcing
services.
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney's Office
and is legally sufficient for Board Action. Once the standard County Attorney approved contract
is executed by the recipient of the award, it will be reviewed for form and legal sufficiency prior
to presentation to the Chairman of the Board for her signature. This item is not quasi-judicial,
and as such ex parte disclosure is not required. This item requires a majority vote only. JBW
FISCAL IMPACT: The current cost to print and mail approximately 52,500 utility bills is
$355,616. Given the same volume, the estimated cost to print and mail with Southwest Direct is
$86,940 for printing and sorting; Collier County will pay the United States Post Office $204,120
directly for postage, for a total cost of $291,060. The annual operating expense savings in the
Collier County Water-Sewer District Operating Budget is estimated at $64,556. The chart below
summarizes the cost comparison:
Type of Cost
Paper Supplies ~ Utility Bill Forms and Envelopes
Printer Iok and Toner
Pitney Bowes Equipment Rental @ S8,308 per month
Postage@ .324/picce (52,500/rnonth)
Outsourcing with SWD@ .138/piece (estimate 52.500
pieces/month)
Courier to Post Office
Total Cost
In-House
$42.300
$5.500
$99.696
$204,120
$0
Annual Cost
Southwest Direct
Savines
$0
$0
$0
S204.120
S86,940
$4.000
$355,616
$0
$291,060
$64,556
GROWTH MANAGEMENT IMPACT: There is no Growth Management Impact associated
with this Executive Summary.
RECOMMENDATION: That the Board of County Commissioners award Agreement #08-
5125 to Southwest Direct, to outsource the printing and mailing of Collier County Water-Sewer
District utility bills, at an estimated annual amount not to exceed $100,000 and authorize the
Chairman to execute the County Attorney approvcd contract.
PREPARED BY: Teresa Riesen, Manager Utility Billing and Accounting
Agenda Item No. 16C1
March 10, 2009
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A G R E E MEN T 08-5125
for
.. Annual Contract for Direct Mailine: Services Includine: Printine: & Mailine: of Utilitv Bills"
THIS AGREEMENT, made and entered into on this _ day of , 2009, between
Southwest Direct, Inc., authorized to do business in the State of Florida, whose business address is 2129
Andrea Lane, Fort Myers, Florida 33912, hereinafter called the "Vendor", and Collier County, a political
subdivision of the State of Florida, Collier County, Naples, hereinafter called the "County":
WITN E S SET H:
1. COMMENCEMENT. This Agreement shall be for a one (I) year period commencing upon
award by the Board of County Commissioners and after receipt of the Notice to Proceed, in the
form of a letter from the Project Manager.
The County may, at its discretion and with the consent of Vendor, renew the Agreement under all
the terms and conditions contained in this Agreement for three (3) additional one (I) year periods.
The County shall give Vendor written notice of the County's intention to renew the Agreement
term not less than ten (10) days prior to the end of the Agreement term then in effect.
2. STATEMENT OF WORK. The Vendor shall provide direct mailing services to process, print,
and mail the County's customer bills ("Work") in accordance with the terms and conditions of
RFP #08-5125, Exhibit C and the Vendor's proposal referred to herein and made an integral part
of this Agreement. This Agreement contains the entire understanding between the parties and any
modifications to this Agreement shall be mutually agreed upon in writing by the Vendor and the
County project manager or his designee, in compliance with the County Purchasing Policy and
Administrative Procedures in effect at the time such services are authorized.
3. COMPENSATION. The County shall pay the Vendor for the performance ofthis Agreement the
aggregate of the units actually ordered and furnished at the unit price, together with the cost of any
other charges/fees identified in Exhibit B of this Agreement.
Any County agency may purchase services under this Agreement, provided sufficient funds are
included in their budget(s). Payment will be made upon receipt of a proper invoice and upon
approval by the Project Manager or his designee, and in compliance with Section 218.70, Fla.
Stats., otherwise known as the "Local Government Prompt Payment Act".
4. SALES TAX. Vendor shall pay all sales, consumer, use and other similar taxes associated with
the Work or portions thereof, which are applicable during the performance of the Work.
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5. NOTICES. All notices from the County to the Vendor shall be deemed duly served if mailed or
faxed to the Vendor at the following Address:
Southwest Direct, Inc
2129 Andrea Lane
Fort Myers, Florida 33912
Attention: Anthony D. Correnti, President
Telephone: 239-768-9588
Facsimile: 239-768-0408
All Notices from the Vendor to the County shall be deemed duly served if mailed or faxed to the
County to:
Collier County Government Center
Purchasing Department - Purchasing Building
3301 Tamiami Trail, East
Naples, Florida 34112
Attention: Steve Carnell, PurchasinglGS Director
Telephone: 239-252-8407
Facsimile: 239-732-0844
The Vendor and the County may change the above mailing address at any time upon giving the
other party written notification. All notices under this Agreement must be in writing.
6. NO PARTNERSHIP. Nothing herein contained shall create or be construed as creating a
partnership between the County and the Vendor or to constitute the Vendor as an agent of the
County.
7. PERMITS: LICENSES: TAXES. In compliance with Section 218.80, F.S., all permits necessary
for the prosecution of the Work shall be obtained by the Vendor. Payment for all such permits
issued by the County shall be processed internally by the County. All non-County permits
necessary for the prosecution of the Work shall be procured and paid for by the Vendor. The
Vendor shall also be solely responsible for payment of any and all taxes levied on the Vendor. In
addition, the Vendor shall comply with all rules, regulations and laws of Collier County, the State
of Florida, or the U. S. Government now in force or hereafter adopted. The Vendor agrees to
comply with all laws governing the responsibility of an employer with respect to persons
employed by the Vendor.
8. NO IMPROPER USE. The Vendor will not use, nor suffer or permit any person to use in any
manner whatsoever, County facilities for any improper, immoral or offensive purpose, or for any
purpose in violation of any federal, state, county or municipal ordinance, rule, order or regulation,
or of any governmental rule or regulation now in effect or hereafter enacted or adopted. In the
event of such violation by the Vendor or if the County or its authorized representative shall deem
any conduct on the part of the Vendor to be objectionable or improper, the County shall have the
right to suspend the contract of the Vendor. Should the Vendor fail to correct any such violation,
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Agenda Item No. 16C1
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conduct, or practice to the satisfaction of the County within twenty-four (24) hours after receiving
notice of such violation, conduct, or practice, such suspension to continue until the violation is
cured. The Vendor further agrees not to commence operation during the suspension period until
the violation has been corrected to the satisfaction of the County.
9. TERMINATION. Should the Vendor be found to have failed to perform his services in a manner
satisfactory to the County as per this Agreement, the County may terminate this Agreement
immediately for cause; further the County may terminate this Agreement for convenience with a
seven (7) day written notice. The County shall be sole judge of non-performance.
10. NO DISCRIMINATION. The Vendor agrees that there shall be no discrimination as to race, sex,
color, creed or national origin.
11. INSURANCE. The Vendor shall provide insurance as follows:
A. Commercial General Liabilitv: Coverage shall have minimum limits of $1,000,000 Per
Occurrence, Combined Single Limit for Bodily Injury Liability and Property Damage
Liability. This shall include Premises and Operations; Independent Vendors; Products and
Completed Operations and Contractual Liability.
B. Business Auto Liabilitv: Coverage shall have mmlmum limits of $500,000 Per
Occurrence, Combined Single Limit for Bodily Injury Liability and Property Damage
Liability. This shall include: Owned Vehicles, Hired and Non-Owned Vehicles and
Employee Non-Countyship.
C. Workers' Compensation: Insurance covering all employees meeting Statutory Limits in
compliance with the applicable state and federal laws.
The coverage must include Employers' Liability with a minimum limit of $1,000,000 for
each accident.
Special Requirements: Collier County shall be listed as the Certificate Holder and included
as an Additional Insured on the Comprehensive General Liability Policy.
Current, valid insurance policies meeting the requirement herein identified shall be
maintained by Vendor during the duration of this Agreement. Renewal certificates shall be
sent to the County thirty (30) days prior to any expiration date. There shall be a thirty (30)
day notification to the County in the event of cancellation or modification of any stipulated
msurance coverage.
Vendor shall insure that all sub Vendors comply with the same insurance requirements that
he is required to meet. The same Vendor shall provide County with certificates of insurance
meeting the required insurance provisions.
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March 10, 2009
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12. INDEMNIFICATION. To the maximum extent permitted by Florida law, the Vendor shall
indemnify and hold harmless Collier County, its officers and employees from any and all
liabilities, damages, losses and costs, including, but not limited to, reasonable attorneys' fees and
paralegals' fees, to the extent caused by the negligence, recklessness, or intentionally wrongful
conduct of the Vendor or anyone employed or utilized by the Vendor in the performance of this
Agreement. This indemnification obligation shall not be construed to negate, abridge or reduce
any other rights or remedies which otherwise may be available to an indemnified party or person
described in this paragraph.
This section does not pertain to any incident arising from the sole negligence of Collier County.
13. CONTRACT ADMINISTRATION. This Agreement shall be administered on behalf of the
County by the Utility Billing and Customer Service Department.
14. CONFLICT OF INTEREST: Vendor represents that it presently has no interest and shall
acquire no interest, either direct or indirect, which would conflict in any manner with the
performance of services required hereunder. Vendor further represents that no persons having any
such interest shall be employed to perform those services.
15. COMPONENT PARTS OF THIS AGREEMENT. This Agreement consists of the attached
component parts, all of which are as fully a part of the Agreement as if herein set out verbatim:
Vendor's Proposal, Insurance Certificate, RFP#08-5] 25 Specifications/Scope of Services, Exhibit
A Supplemental Terms and Conditions, Exhibit B Quality Assurance, Exhibit C Implementation
Schedule, and Exhibit D Testing and Process Acceptance.
16. SUBJECT TO APPROPRIATION. It is further understood and agreed by and between the
parties herein that this Agreement is subject to appropriation by the Board of County
Commissioners.
17. PROHIBITION OF GIFTS TO COUNTY EMPLOYEES. No organization or individual shall
offer or give, either directly or indirectly, any favor, gift, loan, fee, service or other item of value to
any County employee, as set forth in Chapter 112, Part Ill, Florida Statutes, Collier County Ethics
Ordinance No. 2004-05, and County Administrative Procedure 5311, as may be amended or
otherwise updated. Violation of this provision may result in one or more of the following
consequences: a. Prohibition by the individual, firm, and/or any employee of the firm from contact
with County staff for a specified period of time; b. Prohibition by the individual and/or firm from
doing business with the County for a specified period of time, including but not limited to:
submitting bids, RFP, and/or quotes; and, c. immediate termination of any contract held by the
indi vidual and/or firm for cause.
18. IMMIGRATION LAW COMPLIANCE. By executing and entering into this Agreement, the
Vendor is formally acknowledging without exception or stipulation that it is fully responsible for
complying with the provisions of the Immigration Reform and Control Act of 1986 as located at 8
V.S.C. 1324, et seq. and regulations relating thereto, as either may be amended. Failure by the
Vendor to comply with the laws referenced herein shall constitute a breach of this Agreement and
the County shall have the discretion to unilaterally terminate this Agreement immediately.
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Agenda Item No. 16C1
March 10, 2009
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19. VENUE. Any suit or action brought by either party to this Agreement against the other party
relating to or arising out of this Agreement must be brought in the appropriate federal or state
courts in Collier County, Florida, which courts have sole and exclusive jurisdiction on all such
matters.
20. OFFER EXTENDED TO OTHER GOVERNMENTAL ENTITIES. Collier County
encourages and agrees to the successful proposer extending the pricing, terms and conditions of
this solicitation or resultant contract to other governmental entities at the discretion of the
successful proposer.
21. AGREEMENT TERMS. If any portion of this Agreement is held to be void, invalid, or
otherwise unenforceable, in whole or in part, the remaining portion of this Agreement shall remain
in effect.
22. ADDITIONAL ITEMS/SERVICES. Additional items and/or services may be added to this
contract upon satisfactory negotiation of price by the Contract Manager and Vendor.
23. DISPUTE RESOLUTION. Prior to the initiation of any action or proceeding permitted by this
Agreement to resolve disputes between the parties, the parties shall make a good faith effort to
resolve any such disputes by negotiation. The negotiation shall be attended by representatives of
Vendor with full decision-making authority and by County's staff person who would make the
presentation of any settlement reached during negotiations to the County for approval. Failing
resolution, and prior to the commencement of depositions in any litigation between the parties
arising out of this Agreement, the parties shall attempt to resolve the dispute through mediation
before an agreed-upon Circuit Court Mediator certified by the State of Florida. The mediation
shall be attended by representatives of Vendor with full decision-making authority and by
County's staff person who would make the presentation of any settlement reached at mediation to
County's board for approval. Should either party fail to submit to mediation as required
hereunder, the other party may obtain a court order requiring mediation under Section 44.102, Fla.
Stat.
Any suit or action brought by either party to this Agreement against the other party relating to or
arising out of this Agreement must be brought in the appropriate federal or state courts in Collier
County, Florida, which courts have sole and exclusive jurisdiction on all such matters.
24. KEY PERSONNELIPROJECT STAFFING: The Vendor's personnel and management to be
utilized for this project shall be knowledgeable in their areas of expertise. The County reserves the
right to perform investigations as may be deemed necessary to insure that competent persons will
be utilized in the performance of the contract. Vendor shall assign as many people as necessary to
complete the project on a timely basis, and each person assigned shall be available for an amount
of time adequate to meet the dates set forth in the Project Schedule. Vendor shall not change key
personnel unless the following conditions are met: (I) Proposed replacements have substantially
the same or better qualifications and/or experience. (2) the County is notified in writing as far in
advance as possible. Vendor shall make commercially reasonable efforts to notify the County
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Agenda Item No. 16C1
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within seven (7) days of the change. The County retains final approval of proposed replacement
personnel.
25. ASSIGNMENT: Vendor shall not assign this Agreement or any part thereof, without the prior
consent in writing of County. Any attempt to assign or otherwise transfer this Agreement or any
part herein, without the County's consent, shall be void. If Vendor does, with approval, assign this
Agreement or any part thereof, it shall require that its assignee be bound to it and to assume toward
Vendor all of the obligations and responsibilities that Vendor has assumed toward County.
26. PAYMENTS WITHHELD: County may decline to approve any invoice for payment, or
portions thereof, because of defective or incomplete work, subsequently discovered evidence or
subsequent inspections. The County may nullify the whole or any part of any approval for
payment previously issued and County may withhold any payments otherwise due Vendor under
this Agreement or any other agreement between County and Vendor, to such extent as may be
necessary in the County's opinion to protect it from loss because of: (a) defective Work not
remedied; (b) third party claims failed or reasonable evidence indicating probable filing of such
claims; (c) failure of Vendor to make payment properly to sub Vendors for labor, materials or
equipment; (d) reasonable doubt that the Work can be completed for the unpaid balance of the
contract amount; (e) reasonable indication that the Work will not be completed within the Contract
Time; (t) unsatisfactory prosecution of the Work by the Vendor; or (g) any other material breach
of the Agreement documents.
If any conditions described above are not remedied or removed, County may, after three (3) days
written notice, rectify the same at Vendor's expense. County also may offset against any sums due
Vendor the amount of any liquidated or unliquidated obligations of Vendor to County, whether
relating to or arising out of this Agreement or any other agreement between Vendor and County.
27. SUBSTITUTE PERFORMANCE: In the event the Vendor fails to perform any required service
within the time schedule under the subsequent Agreement, the County reserves the right to obtain
substitute performance. Further, the County reserves the right to deduct the cost of such substitute
performance from the Vendor's payments. The Vendor may be exempt from this provision if such
exemption is granted by the project manager or their designee, in writing, prior to any delays or as
a result of an Act of Nature.
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Agenda Item No. 16C1
March 10, 2009
Page 9 of 19
IN WITNESS WHEREOF, the Vendor and the County, have each, respectively, by an authorized person
or agent, hereunder set their hands and seals on the date and year first above written.
ATTEST:
Dwight E. Brock, Clerk of Courts
BOARD OF COUNTY COMMISSIONERS
COLLIER COUNTY, FLORIDA
By:
Dated:
(SEAL)
By:
Donna Fiala, Chairman
Southwest Direct. Inc
b~'I~
First . ess
h14A,...) Lu'hDEtJ
tType/print witness namet
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Vendor
BY~tI-/<=rt7
Signature
ft,A/?"tlnvy p-6/i'fr!'NrI ,~;b
Typed signature and title
~~ ':RI~.-e.k. VP_
tType/print witness namet
Approved as to form and
legal sufficiency:
Jennifer B. White
Assistant County Attorney
.-
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--
Agenda Item No. 16C 1
March 10, 2009
Page 10 of 19
Exhibit A
Sunnlemental Terms and ConditIons
SECTION I: PROCESSING OF MAILING AND BILLING DATA FILES: Each business day, the
County will send the Vendor files ("Data Files") that contain one, or multiple cycles of customer bill
information. The County may send multiple files to the Vendor per day. The Data Files will be sent to
the Vendor via the Vendor's secure FTP site. Data Files that the County sends to the Vendor's FTP site
by 12:00 noon each business day shall be processed and all customer bills and inserts printed and
mailed, by 5:00 pm the same business day. Data Files that the County sends to the Vendor's FTP site
after 12:00 noon each business day, shall be processed and all customer bills and inserts printed and
mailed by 5:00 pm the next business day. If the County's internal network is not able to send Data Files
to Vendor, the County will contact the Vendor immediately and make arrangements to provide the
Vendor with the Data files. Any travel expenses incurred will be reimbursed as per Section 112.061 of
the Florida Statutes.
SECTION 2: UNAVAILABILITY OF VENDOR'S FTP SITE: The Vendors FTP site shall be
available to the County twenty four (24) hours per day, seven (7) days per week, to accept Data Files. If
the Vendor's FTP site is unavailable to accept Data Files from the County, the County shall notifY the
Vendor's designated contact person immediately and the Vendor shall make the necessary
arrangements, at Vendor's sole expense, to obtain the Data Files from the County within twenty four
(24) hours. If files are obtained before 12:00 noon of the same day of notification, Vendor agrees to
process before 5:00 pm the same day. If data files are obtained after 12:00 noon on the same day of
notification, Vendor agrees to process before 5:00 pm the next business day. If the Vendor does not
process, print and mail all customer bills and inserts as outlined above, the County will assess liquidated
damages as per Section 11 below.
SECTION 3: DATA RECONCILIATION INFORMATION - Upon completion of the processing,
printing, and mailing of all customer bills in a Data File, Vendor shall email the County notifYing them
that the Data File has been successfully processed and the date and time that the customer bills were
mailed. The email will contain a file with any address corrections identified for the customers in the
Data File. An email messages will be sent to a distribution list of the County employees. This list will
be provided to the Vendor by the Utility Billing and Customer Service Department.
SECTION 4: NCOALINKTM - Vendor shall provide mail forwarding via the NCOALink from the
United States Postal Service (USPS) to update the mailing address for customers in the Data Files when
the customer bills are being printed. The customer mailing addresses in the Data Files are electronically
matched to the national database of address changes within the last eighteen (18) months.
SECTION 5: EQUIPMENT, SOFTWARE, AND FACILITIES - It shall be the responsibility of the
Vendor to obtain, and maintain all the equipment, software, services, and facilities required to accurately
print and mail the County's bills within the timeframes defined in this Agreement. The County shall not
be responsible for providing or maintaining any of the equipment, software, or facilities needed to
process, print, and mail the customer bills and inserts.
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Agenda Item No. 16C1
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SECTION 6: SYSTEM IMPLEMENTATION SERVICES - Vendor shall provide all
implementation and system testing services as per Exhibit D and E to the County at no charge. The
implementation will prepare the Vendor system to process, print, and mail the County's customer bills,
including, but not limited to the following:
. Preparing the Vendor secure FTP site for accepting Data Files sent to the Vendor by the County
Training County personnel to access the FTP site to transfer Data Files to the Vendor
. Implementing the County's bill print format into the Vendor system
. Design an interactive web site, which will allow the County's customers to view and print their
bills
. Provide ongoing web site development
SECTION 7: WEB SITE PROVIDED BY VENDOR - Vendor shall make a web site available
twenty-four (24) hours seven (7) days a week to allow the County's customers to access their utility bill
information. A link will be implemented on the County's web site to transfer customers from the
County's web site to the Vendor's web site. A County customer that accesses the Vendor web site will
be required to enter their account number; the Vendor web site must authenticate the account number
before displaying the customer's billing information. When a customer enters a valid account number,
the Vendor's web site will display the customer's bills for the last twelve months. The customer shall
have the ability to print a copy of any of the bills in their account. If the customer elects to print a copy
of a bill, the format of the bill printed will be the same as the format of the bill that is mailed directly to
the customer.
The customer bill information that is displayed on the Vendor web site will be limited to only those
customer bills that have been processed, printed, and mailed by the Vendor. Customer bills that were
not processed, printed, and mailed by the Vendor will not be available on the Vendor web site.
Vendor shall design, and implement the web site at no cost to the County. Additionally, there shall be
no on-going cost to the County for the use or hosting of the Vendor web site.
Prior to the implementation of the web site, the County and the Vendor shall develop a web site design
that is mutually agreed to by both the County and the Vendor.
SECTION 8: UNAVAILABILITY OF VENDOR'S PRIMARY FACILITY - For the duration of
this Agreement, the Vendor shall have an agreement in place with a third party company to perform
processing, printing, and mailing of the County's customer bills in the event that the Vendor's primary
facility is unavailable due to an act of God, or other event that is beyond the reasonable control of the
Vendor. Ifthe Vendor's primary facility is unavailable, the Vendor shall have twenty four (24) hours
from the time the County sends the Data File to the Vendor FTP site to have the third party company
process, print all the customer bills and inserts, and mail the customer bills. Customer bills printed by a
third party will be printed in black and white. If the Vendor FTP site is not available to accept the Data
File, Vendor's responsibility for obtaining and processing the Data Files shall be as defmed in Section 2
of this Exhibit A.
Any and all costs incurred as a result of using the third party company to process, print, and mail the
County's customer bills shall be the responsibility of the Vendor. The County shall not be responsible
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Agenda Item No. 16C1
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for any additional costs beyond the cost of processing, printing, and mailing customer bills as defined in
this Agreement.
SECTION 9: POSTAGE - Postage for the mailing of all customer bills will be charged to the County's
USPS postage permit. The County shall provide Vendor with the required postage permit information,
and it shall be the County's responsibility to ensure sufficient payments are made to the USPS to enable
mailings to be made against the postage permit. Vendor shall be responsible for sorting, grouping,
packaging, and in all other ways preparing the customer bills and inserts for mailing so that the lowest
possible postage fee is charged for the mailings.
SECTION 10: LIQUIDATED DAMAGES - County and Vendor recognize that the turnaround time
for processing the utility bills are critical and time sensitive under this Agreement, County will suffer
financial loss if Vendor fails to achieve daily processing within the time specified above. In such event,
the total amount of County's damages, will be difficult, if not impossible, to definitely ascertain and
quantify. Should Vendor fail to achieve processing, printing, and mailing of customer bills and inserts
within the timeframes established herein, County shall be entitled to assess, as liquidated damages, but
not as a penalty, ($1000.00) for each calendar day thereafter until processing, printing, and mailing of
utility bills and inserts is achieved. Vendor hereby expressly waives and relinquishes any right which it
may have to seek to characterize the above noted liquidated damages as a penalty, which the parties
agree represents a fair and reasonable estimate of the County's actual damages at the time of contracting
if Vendor fails to perform the Work within the required time periods.
SECTION 11: NO WAIVER - The failure of the County to enforce at any time or for any period of
time anyone or more of the provisions of the Agreement shall not be construed to be and shall not be a
waiver of any such provision or provisions or of its rights thereafter to enforce each and every such
provision.
SECTION 12: CONFIDENTIALITY OF THE COUNTY'S INFORMATION _ Vendor
acknowledges that all material and information supplied by the County which has or will come into the
possession or knowledge of Vendor in connection with Vendor's performance is to be considered the
County's confidential and proprietary information, disclosure of which information to or use by third
parties will be damaging or which disclosure may be prohibited by law. Vendor agrees to hold such
material and information in strictest confidence, not to make use of it other than for performance as
defined in this Agreement, to release it only to Vendor employees requiring such information, and not to
release or disclose it to any other party or otherwise violate applicable law with respect to any disclosure
of information.
SECTION 13: LICENSE TO DO BUSINESS IN FLORIDA - For the duration of the Agreement,
Vendor shall be licensed to do business in the State of Florida.
SECTION 14: BILLING AND REPORTING - Vendor will invoice the County on the 15th and last
day of each month for the processing, printing and mailing of customer bills. If the 15th or last day of
the month falls on a weekend or holiday the invoice will be sent to the County on the next business day.
Vendor shall include with each invoice a report ofthe cycles of customer bills processed and the number
of bills processed per cycle reconciling the total number of bills processed to the amount of the Vendor's
invoice.
Page 10 of 15
A prototype of typical
bill with no inserts,
including bill and return
envelope
A prototype of typical
bill with no inserts
assuming bank draft.
A prototype oftypical bill
with inserts and return
envelope.
Printing of 8.5" x II"
60# white offset inserts
Printing of 8.5" x II"
80# gloss inserts
Exhibit B
Payment Schedule
Price, for Design, PrintIDg,3'. ~
. ~ilrtfug, Mail Preparation
>Gilt;:::)'~,;<:;F.:<,> ,:;L,,':' '::",. .,':,"."'., ':<::'"
$
.138
Price per piece
$
.133
Price per piece
$
.138
Price per piece
4/0 no bleeds - $3,152.00
2/2 no bleeds - $3,152.00
4/4 no bleeds - $3,695.00
Above prices are for 60,000
inserts
4/0 no bleeds - $3,893.00
2/2 no bleeds - $4,297.00
4/4 no bleeds - $4,545.00
Above prices are for 60,000
inserts
Page 11 of]5
Agenda Item No. 16C1
March 10, 2009
Page 13 of 19
Domestic
$ .324 EST per piece-
Canada
$ .74 est per piece
International
$ .94 est per piece
Domestic
$ .324 EST per piece-
Canada
$ .74 est per piece
International
$ .94 est per piece
Domestic
$ .324 EST per piece-
Canada
$ .74 est per piece
International
$ .94 est per piece
Agenda Item No. 16C1
March 10, 2009
Page 14 of 19
Exhibit C
Oualitv Assurance
SECTION 1 - OUALITY ASSURANCE - Quality Assurance refers to Vendor's adherence to the
County's required specifications of the fmal output of customer bills and inserts, including but not
limited to, text alignment, color, and clarity. Any changes to Quality Assurance as described above must
be mutually agreed upon between Vendor and the County.
To minimize risk of unacceptable Quality Assurance, Vendor will ensure its bill formatting software
remains compatible with the County's software and Data Files. Vendor will upgrade its software as is
reasonably necessary and as upgrades are available to ensure Quality Assurance.
Vendor will implement quality control standards in the areas of the Data File confirmation and
reporting, address correction and mail forwarding, file processing, and print assurance. County can
verify 100% mail on all customer bill cycles through extensive reporting that will be provided by
Vendor including:
· Transmission Reply - Report to verify the numbers of records received in each Data File, the
number processed for production, and the dollar amount due from the file.
. Address Correction - Vendor will provide address correction via CASS (Coding Accuracy
Support System) Certification, a control of the United States Postal Service. CASS Certification
works by cleaning and standardizing County addresses to ensure they meet USPS specifications.
CASS will standardize the address spelling, add the nine-digit ZIP code (ZIP + 4), assign a
delivery point barcode, report uncertified entries, and provide postal documentation. In addition,
Presort will qualify the mail for the lowest possible postal rate. After County's' file is processed,
a CASS Error Report is supplied in an Excel file format and emailed to a County contact
designated by County.
· NCOALink - Track move eligible to be forwarded addresses, and sort analyze each processing
cycle that is issued at the time of production.
· File Naming Conventions - Tactic used by Vendor to ensure that only the County's data is
processed through the template created for the County's customer bills, thereby avoiding print
errors.
· Prints Assurance Feature - Matches County paper code to the customer code in County's file
to ensure County data is printed on the corresponding paper stock.
· Quality Control Checks - Each Vendor department on the production floor performs a series of
quality checks at every station such as visual inspection, random sampling and hand sorting prior
to machine insertion.
SECTION 2 - SERVICE AVAILABILITY - The Service Availability component encompasses those
systems utilized by Vendor to provide the service to the County under the terms and conditions of this
Agreement. Service Availability includes Technical Error Resolution and Production Issues. Technical
Error Resolution refers to any situation that interferes with the Vendor's ability to conduct the
mechanical process (es) required to provide the data, i.e., Vendor servers being inoperable, and changes
in bill or bill data format. Production Issues refer to any situation, other than Technical issues, that
Page 12 of 15
Agenda Item No. 16C1
March 10, 2009
Page 15 of 19
interfere with the Vendor's ability to process the County's billing data In accordance with the
requirements in this Agreement.
To minimize risk of unacceptable Service Availability, Vendor will ensure its bill formatting software
remains compatible with County's software. Vendor will upgrade its systems and software as is
reasonably necessary and as upgrades are available to ensure Service Availability. Additionally, Vendor
will inspect the County's data transmissions for any physical damage and verify that the record count
agrees with the transmittal. All Data Files will be tested for read errors. County will be notified
immediately if any problems occur with the transmission and a time will be established with County for
retransmissions of the Data File. Vendor will work closely with the County to make sure the Data Files
are formatted correctly, minimizing any chance of error.
SECTION 3 - ERRORS -In the event the Vendor mails bills to customers with errors within any given
cycle, Vendor agrees to bare the total cost and any and all expenses associated to reprint, reprocess and
re-mail bills to customers. These costs include, but are not limited to, postage, data re-processing,
supplying new envelopes and forms, printing, data imaging, inserting and delivery to post office within
24 hours of error occurring. Errors include, but are not limited to, formatting, discoloration, upside down
bills, bills printed on incorrect stock, etc. Errors could range from one error per billing cycle, several
errors per billing cycle, an entire cycle or a series of cycles.
Page 13 of 15
Week I
Week I
Week I
Week I
Week I
Week I
Week I
Week I
Week I
Week I
Week I
Week I
Week I
Week I
Week I
Week 2
Week 2
Week 2
Week 2
Week 2-3
Week 3
Week 3
Week 4
Week 4
Week 4
Week 5
Week 5
provider
Week 5-7
Week 7
Week 8
Agenda Item No. 16C 1
March 10, 2009
Page 16 of 19
Exhibit D
Imnlementation Schedule
Week 1
Site visit of Vendor's Facilities and Operations
Kick off meeting to assign key contacts for the County and Vendor for Paper Statement
Kick off meeting to assign key contact for the County and Vendor for Online View
The County to supply Collier County logo, sizing parameters, and PMS colors to Vendor
The County to supply information for bill backer in word document
The County provides Vendor information for OCR scan line according to Fifth Third Banks
specifications
Vendor provides the County account and instructions for Vendor FTP site
The County to supply Vendor with data file and data map (I cycle minimum)
Vendor to define production, confirmation and billing reports with the County
Vendor provides preliminary layout of utility bill shell front and back
The County review preliminary utility bill shell and sends changes to Vendor
Vendor provides the County with preliminary online view for customers
Vendor provides the County with preliminary online view for customer service
The County provides Vendor changes to online view customers
The County provides changes to layout or search features to Vendor for online view
Week 2
The County approves bill mock up and shell, front and back
Vendor maps and layouts the County data on approved shell.
Vendor provides pdf run samples of the County bills.
Vendor integrates the County data with SQL server
Week 3
Vendor provides review of the County online view changes
Vendor provides sends the County bill Mockup for the County to review
Vendor provides changes to the County bill and reports are produce
Week 4
Remittance testing / OCR scan line
Statement Certification and sign off of the County bill
Print stream sent to Disaster Recovery partner for testing of printing of Utility Bills.
Week5-7
Go Live of the County paper bill
Testing of Vendor online view with the County website and the County online payment
Testing of data sent from Vendor online view to the County online payment provider
Training provide to the County customer service on online view
Go live of the County online view for customers and customer service
Page 140fl5
--.
Agenda Item No. 16C1
March 10, 2009
Page 17 of 19
Exhibit E
TESTING AND PROCESS ACCEPTANCE
During the setup up and implementation process, Vendor will test the County's customer bills and the
web site for the following:
. Test the emergency communications and customer bill output with the third party disaster
recovery vendor (1 full billing cycle). Vendor will send a print stream to test the disaster
recovery plan that includes the third party vendor's ability to print the County's customer bills
from the Data Files.
. Review and verification of the data map of the County's customer bills.
. Verification of the County sending Data Files to the Vendor's FTP site and reports.
. Test the processing, printing, and mailing of cycles of customer bills.
. Test of OCR scan line for lock box processing. Vendor will send one full billing cycle to Fifth
Third bank for testing of OCR scan line.
. Test intelligent inserting and bank draft customers.
. Test and verification of the web site for viewing and printing customer bills
o Logins
o Account Numbers
o Address Lines
o City, State Zip
o Bill Date
o Bill information.
. Test and Verification of web site login.
. Test viewing customer information and bills via the web site.
Final authorization will be required by the County before GO LIVE for the web site and printing and
mailing of customer bills.
Page 15 of 15
Page] of2
Agenda Item No. 16C1
March 10. 2009
Page 18 of 19
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
Item Number:
Item Summary:
16C1
Meeting Date:
Recommendation to award Agreement #08-5125 to Southwest Direct, to outsource the
printing and mailing of Collier County Water-Sewer District utility bills, at an estimated annual
amount not to exceed $100,000
31101200990000 AM
Prepared By
Teresa Riesen
Revenue Manager
Date
Public Utilities
uscs
1/8/2009 10:39:12 AM
A pproved By
Joseph Bellone
Operations Supervisor
Date
Public Utilities
Public Utilities Operations
2/17/20091:22 PM
Approved By
Kelsey Ward
Contract Administration Manager
Date
Administrative Services
Purchasing
2/20/20099:38 AM
Approved By
Jennifer A. Belpedio
Assistant County Attorney
Date
County Attorney
County Attorney Office
2/20/20092:18 PM
Approved By
Thomas Wides
Operations Director
Date
Public Utilities
Public Utilities Operations
2/20/2009 2:26 PM
Approved By
Steve Carnell
Purchasing/General Svcs Director
Date
Administrative Services
Purchasing
2/23/2009 2:34 PM
A pproved By
Dianna Perryman
Contract Specialist
Date
Administrative Services
Purchasing
2/24/2009 11 :57 AM
Approved By
James W. Delany
Public Utilities Administrator
Date
Public Utilities
Public Utilities Administration
2/24/2009 1 :35 PM
Approved By
OMB Coordinator
OMS Coordinator
Date
County Manager's Office
Office of Management & Budget
2t26l2009 10:42 AM
Approved By
Randy Greenwald
ManagemenUBudget Analyst
Date
County Manager's Office
Office of Management & Budget
2/26/20092:15 PM
Approved By
Jeff Klatzkow
Assistant County Attorney
Date
file://C:\AgendaTestIExportl I 25-March%20 I 0, %2020091 16. %20CON SENT%20AGENDA II... 3/4/2009
Page 20f2
Agenda Item No. 16C1
March 10, 2009
Page 19 of 19
County Attorney
County Attorney Office
2f26/2009 4:04 PM
Approved By
James V. Mudd
County Manager
Date
Board of County
Commissioners
County Manager's Office
2/26/20094:28 PM
file:l/C:\AgendaTest\Export\ 125-March%20 1 O. %202009\ 16. %20CONSENT%20AGENDA \ 1... 3/4/2009