INFORMATION TECHNOLOGY AGREEMENT NEW MEXICO

This document is intended for informational purposes and to illustrate the diversity of written agreements only. Agreement Sample Project assumes no liability for the content of this document or for any action or inaction taken as a result of it. It should not be used or relied upon for any purpose, does not represent a recommendation or endorsement and is not a substitute for professional legal advice. No professional relationship is implied or otherwise established by reading this document. You should always seek the advice of your legal professional before taking any action or inaction.

 

Source: http://dot.state.nm.us/content/dam/nmdot/Procurement/Price_Agreements/20-0001.pdf

 

 

application,   but  does  not  constitute   solely  an  Error  Correction.     After  conferring   with

Procuring Agency, an Enhancement may be identified as minor or major.

 

I.   "Executive  Level Representative" shall mean the individual  empowered  with the authority to represent  and  make  decisions on  behalf  of  the  Procuring  Agency's  executives. Under  the terms  of  this  AGREEMENT,  the  Executive   Level   Representative  shall   be  Johnny   E. Martinez or designated representative.

 

J.    "Know  How"  shall  mean  all  technical  information, data  and  knowledge  including,  but not limited to, all documents, computer  storage  devices, drawings,  flow charts, plans, proposals, records, notes, memoranda, manuals  and other tangible  items containing, relating or causing the enablement  of any Intellectual  Property developed  under this AGREEMENT.

 

K.  "Intellectual  Property" shall mean any and all proprietary  information developed  pursuant to

the terms ofthis AGREEMENT.

 

L.  "Independent Verification and Validation  ("IV&V")" shall mean the process of evaluating  a Project   and the Project's product  to determine  compliance with specified  requirements and the process of determining whether the products of a given development phase fulfill the requirements  established during the previous stage, both of which are performed  by an entity independent of the Procuring  Agency.

 

M. "Payment   Invoice"  shall  mean  a  detailed,   certified   and  written  request  for  payment  of

services  rendered  from  the Contractor  to the Procuring  Agency.    Payment  Invoice(s)  must contain the fixed price Deliverable  cost and identify the Deliverable  for which the invoice is submitted.

 

N.  "Performance Bond" shall mean a surety bond which guarantees  that the contractor  will fully perform the contract and guarantees against breach of contract.

 

0.  "Project" shall  mean   a  temporary   process   undertaken   to  solve   a  well-defined   goal  or objective  with clearly defined  start al'ld end times, a set of clearly defined tasks, and a budget. The Project  terminates  once  the Project's scope  is achieved  and Project's approval  is given by the  Executive  Level  Representative and  verified  by  the  agency  CIO  to  the  DolT.    If applicable,  under the terms of this AGREEMENT the Project  is Client  Version  of the New Mexico State Transit Accounting and Ridership System (NMSTARS).

 

P.   "Program Manager" shall  mean  a qualified  person  from  the  New  Mexico  Department  of Transportation's Transit  and Rail Division  responsible  for all aspects  of the Programs or the administration of this AGREEMENT.  Under the terms of this AGREEMENT, the Program Manager shall be David Harris or designated  representative.

 

Q.   "Quality  Assurance" shall  mean a planned and systematic  pattern of all actions  necessary to provide  adequate   confidence  that  a  Deliverable   conforms   to  established   requirements, customer needs, and user expectations.

 

R.  "State  Purchasing  Agent  (SPA)"  - shall  mean  the State  Purchasing  Agent  for  the State  of

New Mexico or designated  representative.

 

S.  "State  Purchasing  Division  (SPD)"- shall mean the State Purchasing  Division of the General

Services Department  for the State ofNew Mexico.

 

T.  "Subgrantees" -  shall   mean  any  Transit   Organizations  receiving   federal  funds  through NMDOT  and  who  utilizes  the  NMSTARS   System  for  financial   invoicing  and  ridership reporting.

 

 

 

ARTICLE 2- SCOPE OF WORK

 

A.   Scope of Work.   The Contractor  shall perform  the work as outlined  in Exhibit  A, attached hereto and incotporated herein by reference.

 

B.  Performance  Measures.   Contractor  shall substantially  perform the Performance Measures set forth in Exhibit A.  In the event the Contractor  fails to obtain the results described  in Exhibit A, the Procuring  Agency may provide  written notice to the Contractor  of the default  and specify a reasonable period of time in which the Contractor  shall advise the Procuring  Agency of specific steps  it  will  take  to  achieve   these  results  and  the  proposed   timetable   for  implementation. Nothing  in this Section  shall  be construed  to prevent the Procuring  Agency  from exercising  its rights pursuant to Article 6.

 

C.   Schedule.   The due dates,  as set forth  in Exhibit  A, shall  not  be altered  or waived  by the Procuring  Agency  without  prior written approval,  through the Change  Management process, as defined in Article 14.

 

D.  License.  Contractor  hereby grants Procuring  Agency a non-exclusive, irrevocable, perpetual license to use, modify, and copy the Client Version ofNMSTARS software  as defined in Article

2 and Exhibit A.

 

The right to copy the software is limited to the following purposes: archival, backup and training. All   archival   and   backup   copies   of   the   software   are   subject   to   the   provisions    of   this AGREEMENT, and all titles,  patent  numbers,  trademarks,  copyright  and other  restricted  rights notices shall be reproduced  on any such copies.

 

1)  Contractor  agrees  to maintain,  at contractor's own  expense,  a copy  of the software source  code  to  be  kept  by  an  escrow  agent  and  to  list  the  Procuring   Agency  as  an authorized  recipient  of this source code.   The source code shall  be in magnetic  form on media  specified  by the  Procuring  Agency.    The  escrow  agent  shall  be responsible  for storage  and safekeeping  of the magnetic  media.   Contractor  shall  replace  the magnetic media no less frequently  than every six (6) months to ensure  readability  and to preserve the software at the current  revision level.  Included with the media shall be all associated documentation which will allow the Procuring Agency to top load, compile and maintain the software in the event of a breach.

 

2)     If  the  Contractor  ceases   to  do  business  or  ceases   to  support   this  Project   or AGREEMENT and  it does  not  make  adequate  provision  for  continued  support  of  the licensed  software  it provided  the Agency; or, if this AGREEMENT is terminated,  or if the Contractor  breaches  this AGREEMENT, the Contractor  shall  make available  to the Procuring  Agency:  1)    the latest available  licensed  software  program  source  code  and related documentation meant for the licensed software  provided  or developed  under this AGREEMENT by the Contractor  and listed as part of the purchase  system; 2) the source code   and   compiler/utilities  necessary   to   maintain   the   system;   and,      3)   related documentation for software  developed  by third parties to the extent that the Contractor  is authorized  to disclose  such  software. In such  circumstances, Procuring  Agency  shall have an unlimited  right to use, modify and copy the source code and documentation.

 

 

 

ARTICLE  3 - COMPENSATION

 

A.  Compensation Schedule.  The Procuring  Agency shall pay to the Contractor  based upon fixed prices for each Deliverable, per the schedule outlined in Exhibit A.

 

B.  Payment.  The  total  compensation  under  this  AGREEMENT shall  not  exceed  $45,000.00 excluding  New  Mexico  gross  receipts  taxes.  Contractor  hereby  agrees  to  perform  work  at or below the published maximum  rates of the price AGREEMENT as follows:

 

Category 2 -Computer Programming Services @ $57.30 per Hour

 

Payment   shall   be  made   upon   Acceptance  of  each   Deliverable   and   upon   the  receipt  and acceptance of a detailed,  certified  Payment  Invoice.   Payment  will  be made to the Contractor's designated  mailing  address.    In accordance with Section  13-1-158  NMSA  1978, payment  shall be  tendered  to  the  Contractor within  thirty  (30)  days  of  the  date  of  written  certification   of Acceptance.    All Payment  Invoices  MUST  BE received  by the Procuring  Agency  no later than fifteen  (15) days after the termination of this AGREEMENT.  Payment  Invoices  received  after such date WILL NOT BE PAID.

 

C.  Taxes.

 

The Contractor  shall not be reimbursed  by the Procuring  Agency  for applicable  New  Mexico gross  receipts  taxes, nor interest  or penalties  assessed  on the Contractor by any authority".  The payment of taxes for any money received  under this AGREEMENT shall be the Contractor's  sole responsibility and should  be reported  under the Contractor's  Federal and State tax identification number(s).

 

Contractor and any and all subcontractors shall pay all Federal, state and local taxes applicable to its  operation   and  any  persons   employed   by  the  Contractor.      Contractor  shall   require  all subcontractors  to  hold   the  Procuring   Agency   harmless   from   any  responsibility  for  taxes, damages  and interest,  if applicable, contributions required  under Federal  and/or  state and local laws and regulations and  any  other  costs,  including  transaction  privilege  taxes,  unemployment compensation insurance,  Social Security,  and Worker's Compensation.

 

D.  Retainage.   N/A

 

E.  Performance Bond. N/A

 

 

 

ARTICLE 4- ACCEPTANCE

 

A.   Submission.    Upon  completion of agreed  upon  Deliverables as set  forth  in Article  2 and Exhibit A, Contractor  shall submit  a Payment Invoice with the Deliverable, or description of the Deliverable,  to the Program  Manager.  Each Payment  Invoice  shall  be for  the fixed  Deliverable price as set forth in Article 2 and Exhibit  A.

 

B.   Acceptance.       In   accord   with   Section    13-1-158   NMSA    1978,   the   Executive    Level Representative shall  determine if  the  Deliverable  provided  meets  specifications. No  payment shall  be  made  for  any  Deliverable   until  the  individual  Deliverable   that  is  the  subject  of  the Payment Invoice  has been APPROVED, in writing, by the Executive  Level  Representative.  In order  to Accept  the  Deliverable, the  Executive  Level  Representative, in  conjunction with  the Program Manager,  will assess the Quality  Assurance  level of the Deliverable and determine,  at a minimum,  that the Deliverable:

 

1.)  Complies  with the Deliverable requirements as defined  in Article 2 and Exhibit  A;

2.)  Complies with the terms and conditions of the Price AGREEMENT;

3.)  Meets the performance measures for the Deliverable(s) and this AGREEMENT;

4.)   Meets or exceeds  the generally  accepted  industry  standards and  procedures for the

Deliverable(s); and

5.)  Complies with all the requirements ofthis AGREEMENT.

 

If the Deliverable is deemed Acceptable under Quality Assurance by the Executive  Level Representative or designee, the  Executive  Level  Representative   will  notify  the  Contractor of Acceptance, in writing, within fifteen (15) business days from the date the Executive Level Representative  receives the Deliverable(s) and accompanying Payment  Invoice.

 

C.     Rejection.   Unless  the Executive  Level  Representative gives  notice  of rejection  within  the fifteen  (15) day  business  day Acceptance period,  the Deliverable  will  be deemed  to have  been accepted.   If the Deliverable is deemed  unacceptable  under Quality  Assurance, fifteen  (15) days from the date the Executive  Level Representative receives the Deliverable(s) and accompanying Payment  Invoice, the Executive  Level  Representative  will send a consolidated set of comments indicating  issues,  unacceptable items,  and/or  requested  revisions  accompanying the  rejection. Upon  rejection  and  receipt  of  comments, the  Contractor  will  have  ten  (10)  business  days  to resubmit  the Deliverable  to the Executive Level Representative  with all appropriate corrections or  modifications   made   and/or   addressed.       The  Executive   Level  Representative  will  again determine  whether  the  Deliverable(s) is  Acceptable   under  Quality   Assurance   and  provide  a written  determination   within  fifteen  (15)  business  days  of  receipt  of  the  revised  or  amended Deliverable.   Ifthe Deliverable  is once again deemed  unacceptable under Quality  Assurance  and thus rejected,  the Contractor will be required  to provide a remediation  plan  that shall  include  a timeline  for corrective  action  acceptable  to the Executive  Level Representative.  The Contractor shall  also  be  subject   to  all  damages   and  remedies  attributable  to  the  late  delivery   of  the Deliverable  under the terms of this AGREEMENT and available  at law or equity.   In the event that a Deliverable  must be resubmitted  more than twice for Acceptance, the Contractor  shall  be deemed  as  in  breach  of  this  AGREEMENT.                    The  Procuring  Agency   may  seek  any  and  all damages  and remedies  available  under the terms of this AGREEMENT and available  at law or equity.  Additionally, the Procuring  Agency may terminate this AGREEMENT.

 

 

 

 

ARTICLE 5- TERM

 

THIS  AGREEMENT  SHALL  NEITHER   BE  EFFECTIVE  NOR  BINDING  UNTIL APPROVED  BY THE NMDOT  CABINET SECRETARY.  This AGREEMENT shall terminate on December 31, 2011  unless terminated  pursuant to Article 6.  The term of this AGREEMENT including all extensions  shall not exceed one calendar year.

 

 

 

ARTICLE  6- TERMINATION

 

This AGREEMENT may be terminated  as follows:

 

A.   General.   By the either  Party  upon written  notice to be delivered  to the other party not less than ten (10) business days prior to the intended date of termination.

 

B.  Appropriations.  By the Procuring  Agency, if required  by changes  in State or federal law, or because of court  order,  or  because  of insufficient  appropriations made  available  by the United States   Congress   and/or   the   New   Mexico   State   Legislature   for   the  performance   of   this AGREEMENT.   The  Procuring  Agency's decision  as to whether  sufficient  appropriations  are available  shall  be  accepted   by  the  Contractor  and  shall  be  final.    If  the  Procuring  Agency terminates  this AGREEMENT pursuant  to this subsection,  the Procuring  Agency  shall provide the Contractor  written  notice  of such termination  at least fifteen  (15)  business days prior to the effective date ofthe termination.

 

C.  Obligations and Waiver.  By termination pursuant to this Article, neither party may nullify obligations   already   incurred   for   performance   or  failure   to  perform   prior   to  the  date  of termination.   THIS  ARTICLE   IS  NOT  EXCLUSIVE   AND  DOES   NOT  CONSTITUTE   A WAIVER  OF ANY  OTHER  LEGAL  RIGHTS  AND  REMEDIES  AFFORDED  THE PROCURING AGENCY AND THE STATE OF NEW MEXICO CAUSED BY THE CONTRACTOR'S DEFAULT OR BREACH  OF THIS AGREEMENT.

 

 

ARTICLE 7- TERMINATION MANAGEMENT

 

A.  Contractor.   In the event this AGREEMENT is terminated for any reason, or upon expiration, and in addition  to all other  rights  to property  set  forth  in this  AGREEMENT, the Contractor shall:

 

1.)   Transfer,  deliver,  and/or make readily available  to the Procuring  Agency property in which the Procuring  Agency has a financial interest and any and all data, Know How, Intellectual  Property,  inventions  or property of the Procuring Agency;

2.)   Incur no further  financial  obligations  for materials,  services,  or facilities  under the

AGREEMENT without prior written approval of the Procuring Agency;

3.)  Terminate  all purchase  orders or procurements  and any subcontractors and cease all work,  except   as  the  Procuring   Agency   may  direct,  for  orderly   completion   and transition;

4.)  Take  such  action  as  the  Procuring   Agency   may  direct,   for  the  protection   and

preservation   of   all   property   and   all   records   related   to   and   required   by  this

AGREEMENT;

5.)  Agree that the Procuring Agency is not liable for any costs arising out of termination and that the Procuring  Agency is liable only for costs of Deliverables Accepted  prior to the termination  of the AGREEMENT;

6.) Cooperate  fully in the closeout  or transition  of any activities  to permit  continuity  in the administration  of Procuring Agency programs;

7.) In the event  that this AGREEMENT is terminated  due to the Contractor's course of performance,  negligence or willful misconduct and that course of performance, negligence,  or  willful  misconduct  results  in  reductions  in  the  Procuring  Agency's receipt of program funds from any governmental  agency, the Contractor  shall remit to the Procuring Agency the full amount of the reduction;

8.) Should  this AGREEMENT terminate  due to the Contractor's  default,  the Contractor

shall   reimburse   the   Procuring   Agency   for   all   costs   arising   from   hiring   new contractor/subcontractors at potentially higher rates and for other costs incurred;

9.) In the event  this AGREEMENT is terminated  for any reason, or upon its expiration, the Contractor  shall  assist  and cooperate  with  the Procuring  Agency  in the orderly and timely transfer of files, computer software, documentation, system  turnover  plan, Know  How,  Intellectual   Property  and  other  materials,   whether   provided   by  the Procuring  Agency  or  created  by  the  Contractor  under  this  AGREEMENT, to  the Procuring Agency, including but not limited to, user manuals with complete documentation, functional   technical  descriptions   of  each  program   and  data  flow diagrams.  At the request of the Program Manager, the Contractor  shall provide to the Procuring  Agency  a copy  of  the most  recent  versions  of all  files,  software,  Know How,  Intellectual  Property  and  documentation, whether  provided  by the  Procuring Agency or created by the Contractor under this AGREEMENT.

 

B.  Procuring Agency.   In the event  this AGREEMENT  is terminated  for any reason,  or upon expiration,  and in addition  to all other  rights  to property  set forth  in this  AGREEMENT,  the Procuring  Agency  shall  1) Retain  ownership  of all work  products  and  documentation  created pursuant to this AGREEMENT; and 2) Pay the Contractor all amounts due for services Accepted prior to the effective date of such termination or expiration.

 

 

 

ARTICLE 8 -INDEMNIFICATION

 

A.   General.   The Contractor  shall defend, indemnifY and hold harmless  the Procuring  Agency, the State of  New  Mexico  and  its employees  from  all  actions,  proceedings, claims,  demands, costs, damages, attorneys' fees and all other liabilities and expenses of any kind from any source which may arise out of the performance  of this AGREEMENT,  caused  by the negligent  act or failure to act of the Contractor,  its officers, employees,  servants,  subcontractors or agents, or if caused by the actions of any client of the Contractor resulting in injury or damage to persons or property  during  the  time  when  the  Contractor   or  any  officer,  agent,  employee,   servant  or subcontractor thereof has or is performing services pursuant to this AGREEMENT.

 

In the event that any action, suit or proceeding  related to the services performed  by the Contractor or any officer, agent, employee, servant or subcontractor  under this AGREEMENT  is brought against the Contractor, the Contractor shall, as soon as practicable, but no later than two (2) days after it receives notice thereof, notify, by certified mail, the legal counsel of the Procuring Agency, the Risk Management Division of the New Mexico General Services Department, and the DolT.

 

B.  Neither party shall be responsible for liability incurred as a result of the other party's acts or omissions in connection with this AGREEMENT.  Any liability incurred in connection with this AGREEMENT is subject to the immunities and limitations of the New Mexico Tort Claims Act.

 

 

 

ARTICLE 9- INTELLECTUAL PROPERTY

 

A.  Ownership.

 

Any and all Intellectual Property, including but not limited to copyright, patentable inventions, patents,  trademarks,  trade  names,  service  marks,  and/or  trade  secrets  created  or  conceived pursuant to, or as a result of, performance of this AGREEMENT, shall be work made for hire and  the  Procuring  Agency  shall  be  considered  the  creator  and  owner  of  such  Intellectual Property.    Any  and  all  Know  How  created  or  conceived  pursuant  to,  or  as  a  result  of, performance of this AGREEMENT shall be work made for hire and the Procuring Agency shall be considered the creator and owner of such Know How.  The Procuring Agency shall own the entire right, title and interest to the Intellectual Property and Know How worldwide, and, other than in the performance ofthis AGREEMENT, the Contractor, subcontractor(s), officers, agents and assigns shall not make use of, or disclose the Intellectual Property and Know How to any entity or person outside of the Procuring Ageny  without the express written authorization of the Procuring Agency. Contractor  shall notify the Procuring Agency, within fifteen (15)  business days, of the creation of any Intellectual  Property by it or its subcontractor(s).   Contractor, on behalf of itself and any subcontractor(s), agrees to execute any and all document(s) necessary to assure that ownership of the Intellectual Property vests in the Procuring Agency and shall take no affirmative actions that might have the effect of vesting all or part of the Intellectual Property in any entity other than the Procuring Agency.  If, by judgment of a court of competent jurisdiction, Intellectual Property, Know How, or Know How Rights are not deemed to be created or owned by the Procuring Agency, Contractor hereby acknowledges and agrees to grant to the Procuring Agency  and  the  State  of  New  Mexico,  a  perpetual,  non-exclusive,  royalty  free  license  to reproduce, publish, use, copy and modify the Intellectual Property and Know How.

 

 

 

ARTICLE 10- INTELLECTUAL PROPERTY INDEMNIFICATION

 

A.  Intellectual Property Indemnification.   The Contractor shall defend, at its own expense, the Procuring Agency, the State of New Mexico and/or any other State of New Mexico body against any claim that any product or service provided under this AGREEMENT infringes any patent, copyright or trademark, and shall pay all costs, damages and attorneys fees that may be awarded as a result of such claim.  In addition, if any third party obtains a judgment against the Procuring Agency based upon Contractor's  trade secret infringement relating to any product or services provided under this AGREEMENT, the Contractor agrees to reimburse the Procuring Agency for all costs, attorneys' fees  and  the amount  of the judgment.    To qualify  for  such  defense  and/or payment, the Procuring Agency shall:

 

1.)  Give the Contractor written notice, within forty-eight  (48) hours,  of its notification  of any claim; and

2.)  Work  with  the  Contractor   to  control  the  defense  and  settlement of  the  claim,  as

allowed under the law; and

3.) Cooperate with the Contractor,  in a reasonable  manner, to facilitate the defense or settlement  of the claim.

 

B.  Procuring  Agency Rights.   If any product or service  becomes, or in the Contractor's opinion is  likely  to  become,  the  subject  of  a claim  of  infringement,   the  Contractor shall,  at  its  sole expense:

1.)   Provide  the Procuring  Agency  the right to continue  using the product  or service  and

fully  indemnify  the  Procuring  Agency  against  all  claims  that  may  arise  out  of  the

Procuring Agency's use of the product or service; or

2.)  Replace or modify the product or service so that it becomes non-infringing; or

3.)  Accept the return of the product or service and refund an amount equal to the value of the returned product  or service, less the unpaid portion of the purchase  price and any other amounts,  which are due to the Contractor.   The Contractor's obligation  will be void as to any product or service modified by the Procuring  Agency to the extent such modification is the cause of the claim.

 

 

 

ARTICLE 11- WARRANTIES

 

A.   General.   The Contractor  hereby  expressly  warrants  the Deliverables as  being correct  and compliant with the terms of this AGREEMENT, Contractor's official published  specification and technical  specifications of  this  AGREEMENT and  all  generally  accepted   industry  standards. This  warranty  encompasses correction  of defective  Deliverables and  revision  of  the  same,  as necessary,  including  deficiencies found  during  testing, implementation, or post-implementation phases.

 

B.   Software.  The Contractor warrants  that any software  or other  products  delivered  under this AGREEMENT  shall   comply   with   the  terms   of  this  AGREEMENT,  Contractor's   official published  specification(s) and  technical  specifications of this  AGREEMENT and all generally accepted  industry  standards.   The  Contractor  further  warrants  that the software  provided  under this AGREEMENT will meet  the applicable  specifications for  1 year  after  Acceptance by the Executive  Level Representative and implementation by the Procuring  Agency.    If the software fails to meet the applicable  specifications during the warranty period,  the Contractor will correct the deficiencies, at no additional  cost  to the Procuring  Agency,  so  that the software  meets  the applicable specifications.

 

 

 

ARTICLE 12- CONTRACTOR PERSONNEL

 

A.   Key Personnel.   Contractor's key personnel  shall not be diverted  from  this AGREEMENT

without the prior written approval  of the Procuring Agency.  Key personnel  are those individuals  considered by the Procuring  Agency to be mandatory to the work to be performed  under this

AGREEMENT.  Key personnel shall be:

 

_______________________

____________________

 

 

B.  Personnel Changes.   Replacement  of any personnel shall be made with personnel of equal ability, experience, and qualification  and shall be approved  by the Procuring  Agency.   For all personnel, the Procuring Agency reserves the right to require submission of their resumes prior to approval.   If the number of Contractor's personnel assigned to the Project is reduced for any reason, Contractor shall, within ten (I0) business days of the reduction, replace with the same or greater  number  of  personnel   with  equal  ability,  experience,   and  qualifications,  subject  to Procuring  Agency  approval.     The  Procuring  Agency,  in  its  sole  discretion,  may  approve additional time beyond the ten (10) business days for replacement of personnel.  The Contractor shall include status reports of its efforts and progress in finding replacements and the effect of the absence of the personnel  on the progress of the Project.   The Contractor  shall also make interim arrangements to assure that the Project progress is not affected by the loss of personnel. The Procuring Agency reserves the right to require a change in Contractor's personnel if the assigned personnel are not, in the sole opinion of the Procuring Agency, meeting the Procuring Agency's expectations.

 

 

 

ARTICLE 13- STATUS  OF CONTRACTOR

 

A.    Independent  Contractor.    The  Contractor  and  its agents  and  employees  are  independent contractors performing professional  services for the Agency and are not employees of the State ofNew Mexico. The Contractor and its agents and employees shall not accrue leave, retirement, insurance, bonding, use of state vehicles, or any other benefits afforded to employees of the State of New Mexico as a result of this AGREEMENT.   The Contractor acknowledges  that all sums received hereunder are personally reportable by it for income tax purposes as self-employment or business income and are reportable for self-employment tax.

 

B.  Subject of Proceedings.  Contractor warrants that neither the Contractor nor any officer, stockholder, director or employee of the Contractor, is presently subject to any litigation or administrative proceeding before any court or administrative body which would have an adverse effect  on  the  Contractor's   ability  to  perform  under  this  AGREEMENT;   nor,  to  the  best knowledge of the Contractor, is any such litigation or proceeding presently threatened against it or any of its officers, stockholders, directors or employees.  If any such proceeding is initiated or threatened during the term of this AGREEMENT, the Contractor shall immediately disclose such fact to the Procuring Agency.

 

 

 

ARTICLE 14-  CHANGE  MANAGEMENT

 

A.   Changes.   Contractor  may only make changes or revisions  within the Scope of Work as defined by Article 2 and Exhibit A after receipt of written approval by the Executive Level Representative.  Such change may only be made to Tasks or Sub-Task as defined in the Exhibit A.  Under no circumstance shall such change affect the:

 

I) Deliverable requirements;

2) Compensation due under the terms of this AGREEMENT; or

3) Due Date of any Deliverable, as outlined in Exhibit A.

 

B.  Change Request  Process.   In the event that circumstances warrant a change  to accomplish the Scope  of  Work  as  described  above,  a  Change   Request   shall   be  submitted  that  meets  the following  criteria:  I) The Program  Manager shall draft a written Change  Request  for Executive Level  Representative review  and  approval  to include:    the  name  of  the  person  requesting  the change, a summary  of the required  change,  the start date for the change,  the reason and necessity for change, the urgency level for the change,  the elements  to be altered, the impact of the change, the staffing  plan  associated  with  the change,  the impact  on the  schedule  for  implementing the change, the cost impact,  the risk assessment and a recommended approach  to the change,  and 2) The Executive  Level Representative shall  provide  a written  decision  on the Change  Request  to the Contractor  within  a maximum  of ten (10) working  days  of receipt  of the Change  Request. All  decisions  made  by the  Executive  Level  Representative are  final.    Change  requests,  once approved,  become a part of the contract and become binding as a part of the original  contract.

 

 

 

ARTICLE 15- INDEPENDENT VERIFICATION AND VALIDATION

 

If Independent  Validation  and Verification  ("IV&V")  services  are used or required  to be used for the Project associated  with  this AGREEMENT, the Contractor  hereby  agrees  to cooperate with the IV&V  vendor.   Such  cooperation shall  include,  but is not limited  to:   I) Providing  Project documentation; 2) Allowing the IV&V vendor to sit in on Project meetings; and 3) Supplying the IV&V vendor with any other material as directed  by the Program  Manager.

 

 

 

ARTICLE 16 -DEFAULT/BREACH

 

In  case  of default  and/or  breach  by  the Contractor,  for  any  reason  whatsoever, the  Procuring Agency and the State of New Mexico may procure the goods or services  from another source and hold the Contractor  responsible for any resulting  excess costs and/or  damages, including  but not limited  to, direct  damages, indirect  damages,  consequential damages, special  damages  and  the Agency and the State of New Mexico may also seek all other remedies under the terms of this AGREEMENT and under law or equity.

 

ARTICLE 17 -EQUITABLE REMEDIES

 

Contractor  acknowledges that  its failure  to comply  with any  provision  of  this  AGREEMENT will cause the Procuring  Agency  irrevocable harm and  that a remedy  at law  for such  a failure would  be an inadequate remedy  for  the Procuring  Agency,  and  the Contractor consents  to the Procuring  Agency's obtaining  from  a court of competent  jurisdiction, specific  performance, or injunction,   or  any  other   equitable   relief  in  order   to  enforce   such   compliance.    Procuring Agency's rights to obtain  equitable  relief pursuant  to this AGREEMENT shall  be in addition  to, and  not  in lieu  of, any  other  remedy  that  Procuring  Agency  may  have  under  applicable law, including,  but not limited to, monetary damages.

 

 

 

ARTICLE 18- LIABILITY

 

Contractor shall be liable for damages arising out of injury to persons and/or damage to real or tangible personal property before or after Acceptance, delivery, installation and use of the equipment, either at the Contractor's  site or the Procuring Agency's  place of business, provided that the injury or damage was caused by the fault or negligence of the Contractor or defect of the equipment or installation.  Contractor shall not be liable for damages arising out of, or caused by, alterations to the equipment (other than alterations performed or caused by Contractor's  officers, employees or agents) made by the Procuring Agency or for losses occasioned  by the Procuring Agency's  fault  or  negligence.    Nothing  in  this  AGREEMENT  shall  limit  the  Contractor's liability, if any, to third parties and employees  of the Procuring  Agency or the State of New Mexico,  or  any  remedy  that  may  exist  under  law  or  equity  in  the  event  a  defect  in  the manufacture of the equipment, or the negligent acts or omissions of the Contractor, its officers, employees, or agents, is the cause of injury to such person.

 

ARTICLE 19- ASSIGNMENT

 

The Contractor shall  not assign or transfer  any  interest in this  AGREEMENT  or assign any claims for money due or to become due  under this AGREEMENT  without  the prior written approval of this Agreement's approval authorities.

 

ARTICLE 20- SUBCONTRACTING

 

The Contractor shall not subcontract any portion of this AGREEMENT without the prior written approval of the Procuring Agency.  No such subcontracting shall relieve the Contractor from its obligations  and  liabilities  under  this  AGREEMENT,  nor  shall  any  subcontracting  obligate payment from the Procuring Agency.

 

ARTICLE 21 - RELEASE

 

The Contractor's acceptance of final payment of the amount due under this AGREEMENT shall operate as a release of the Procuring Agency, its officers and employees, and the State of New Mexico from all liabilities, claims and obligations whatsoever arising from or under this AGREEMENT. The Contractor agrees not to purport to bind the State of New Mexico unless the Contractor has express written authority to do so, and then only within the strict limits of that authority.

 

ARTICLE 22 -CONFIDENTIALITY

 

Any confidential information provided to the contractor by the agency or, developed by the Contractor   based   on   information   provided   by   the   agency   in   the   performance   of   this AGREEMENT shall be kept confidential and shall not be made available  to any individual or organization  by the Contractor  without  the  prior  written  approval  of  the Procuring  Agency.

 

Upon termination  of this AGREEMENT, Contractor  shall deliver  all confidential material  in its possession   to  the  Procuring   Agency   within  thirty  (30)   business   days  of  such  termination. Contractor  acknowledges that  failure  to deliver  such confidential   information to the Procuring Agency will result in direct, special and incidental  damages.

 

ARTICLE 23 -CONFLICT OF INTEREST

 

The Contractor  warrants  that it presently  has no interest and shall not acquire  any interest, direct or  indirect,  which  would  conflict  in  any  manner  or  degree  with  the  performance or  services required   under   the  AGREEMENT.  The  Contractor   certifies   that   the   requirements  of  the Governmental   Conduct   Act,   Sections   I O-I6-1  through   I O-I6-18,  NMSA    I978,   regarding contracting  with a public officer, state employee  or former state employee have been followed.

 

ARTICLE 24- RECORDS  AND AUDIT

 

The Contractor  shall maintain  detailed  time and expenditure  records  that indicate  the date, time, nature and cost of services  rendered  during this AGREEMENT's term and effect and retain them for a period  of three  (3)  years  from  the date of final payment  under  this  AGREEMENT. The records  shall  be subject  to  inspection   by  the  Procuring  Agency,  CIO,  SPA,  and  DFA.  The Procuring  Agency shall  have the right to audit  billings both before and after  payment.  Payment for services  under this AGREEMENT shall not foreclose  the right of the Procuring  Agency  to recover excessive or illegal payments.

 

ARTICLE  25-  AMENDMENT

 

This AGREEMENT shall not be altered, changed, or amended except  by an instrument  in writing executed by the Parties hereto.  No amendment  shall be effective  or binding unless approved  by all of the approval  authorities.

 

ARTICLE 26- NEW MEXICO  EMPLOYEES HEALTH  COVERAGE

 

A.  If Contractor  has, or grows  to, six (6) or more employees  who work, or who are expected  to work, an average of at least 20 hours per week over a six (6) month period during the term of the contract, Contractor certifies,  by signing this AGREEMENT, to:

 

(1) have in place, and agree  to maintain for the term of the contract,  health insurance  for those employees  and offer that health insurance  to those employees no later than July 1,

2008  if  the expected  annual  value  in  the aggregate  of  any  and  all  contracts  between

Contractor and the State exceed one million dollars or;

 

(2) have in place, and agree to maintain  for the term of the contract,  health insurance  for those employees  and offer  that health insurance  to those employees no later than July  I,

2009  if  the expected  annual  value  in  the aggregate  of  any  and  all  contracts  between

Contractor and the State exceed $500,000  dollars or;

 

 (3) have in place, and agree to maintain  for the term of the contract,  health insurance for those employees  and offer  that health insurance  to those employees no later than July  I,

2010  if the  expected  annual  value  in  the aggregate  of  any  and  all  contracts  between

Contractor and the State exceed $250,000  dollars.

 

B.  Contractor  agrees to maintain  a record of the number  of employees who have (a) accepted health insurance; (b) declined  health  insurance  due to other health insurance  coverage  already in place; or (c) declined  health  insurance  for other reasons. These records are subject to review and audit by a representative of the state.

 

C.  Contractor  agrees to advise all employees of the availability of State publicly financed health care coverage  programs by providing  each employee  with, as a minimum,  the following  web site link to additional information:  http://insurenewmexico.state.nm.us/.

 

D.     For  Indefinite   Quantity,  Indefinite   Delivery   contracts   (price   AGREEMENT's   without specific limitations  on quantity  and providing for an indeterminate number of orders to be placed against  it); Contractor  agrees  these  requirements shall  apply  the first  day  of the second  month after the offeror reports combined  sales (from state and, if applicable, from local public bodies if from a state price AGREEMENT) of$250,000, $500,000  or $I,OOO,OOO, depending  on the dollar value threshold  in effect at that time.

 

ARTICLE 27- EMPLOYEE PAY EQUITY  REPORTING

 

A.   Contractor  agrees if it has ten (IO) or more New Mexico  employees OR eight (8) or more employees in the same job classification, at any time during the term of this contract, to complete and  submit  the  PE10-249  form  on  the  annual  anniversary   of  the  initial  report  submittal  for contracts  up to one (1)  year in duration.  If contractor  has (250)  or more employees, contractor must  complete  and  submit   the  PE250  form  on  the  annual  anniversary   of  the  initial  report submittal  for contracts  up to one (I) year in duration.  For contracts  that extend  beyond one (I) calendar  year, or are extended  beyond one (I) calendar  year, contractor  also agrees to complete and submit the PE I 0-249 or PE250 form, whichever  is applicable,  within thirty (30) days of the annual  contract  anniversary   date  of  the  initial  submittal  date  or,  if  more  than  180  days  has elapsed  since  submittal  of  the  last  report, at the completion of the contract,  whichever  comes first.  Should  contractor   not  meet  the  size  requirement   for  reporting   at  contract  award  but subsequently grows such that they meet or exceed  the size requirement  for reporting,  contractor agrees to provide the required report within ninety (90 days) of meeting or exceeding the size requirement.  That submittal  date shall serve as the basis for submittals  required thereafter.

 

B.  Contractor  also agrees to levy this requirement  on any subcontractor(s) performing  more than

10%  of the dollar  value  of  this  contract  if said  subcontractor(s) meets,  or grows  to meet,  the stated employee  size thresholds  during  the term of the contract.  Contractor further agrees  that, should one or more subcontractor not meet the size requirement  for reporting  at contract award but  subsequently   grows  such  that  they  meet  or  exceed   the  size  requirement   for  reporting, contractor  will submit the required  report, for each such subcontractor, within ninety (90 days) of that subcontractor  meeting  or exceeding  the size requirement. Subsequent  report submittals,  on behalf of each  such subcontractor, shall  be due on the annual  anniversary  of the initial report

 

submittal.  Contractor  shall  submit  the required  form(s)  to the State  Purchasing Division  of the General  Services  Department, and  other  departments  as  may  be determined, on  behalf  of  the applicable   subcontractor(s)  in  accordance  with   the  schedule   contained  in  this   paragraph. Contractor  acknowledges that  this  subcontractor requirement   applies  even  though  contractor itself may not meet the size requirement  for reporting and be required  to report itself.

 

C.  Notwithstanding the foregoing,  if this Contract  was procured  pursuant  to a solicitation, and if Contractor   has  already   submitted   the  requird   report  accompanying  their  response   to  such solicitation, the report does not need to be re-submitted with this AGREEMENT.

 

ARTICLE  28- MERGER, SCOPE, ORDER  OF PRECEDENCE

 

A.   Severable.    The  provisions of  this AGREEMENT are  severable, and  if for  any  reason,  a clause,  sentence  or paragraph  of  this AGREEMENT is determined to be invalid  by a court  or agency  or commission having  jurisdiction over  the subject  matter  hereof,  such  invalidity  shall not affect other provisions  of this AGREEMENT, which can be given effect  without  the invalid prOVISlOn.

 

B.     Merger/Scope/Order.     This   AGREEMENT  incorporates   any   and   all  AGREEMENTS covenants  and understandings between  the Parties concerning the subject  matter  hereof,  and all such AGREEMENT's covenants and understanding have been merged  into this AGREEMENT. No prior AGREEMENT or understanding, verbal or otherwise, of the Parties or their  agents  or assignees shall be valid or enforceable unless embodied  in this AGREEMENT.

 

ARTICLE 29- NOTICES

 

 

All deliveries,  notices,  requests,  demands  or other  communications provided  for or required  by this AGREEMENT shall  be in writing  and shall  be deemed  to have  been given  when  sent  by registered  or certified  mail  (return  receipt  requested),  when  sent  by overnight  carrier,  or  upon telephone  confirmation by Contractor to the sender of receipt of a facsimile  communication that is followed  by a mailed hard copy from the sender.   Notices shall be addressed  as follows:

 

For PROCURING AGENCY

___________________________

For CONTRACTOR

___________________________

 

Any change to the Notice individual  or the address, shall be effective only in writing.

 

ARTICLE  30- GENERAL  PROVISIONS

 

A.   Civil and Criminal  Penalties.    The Procurement  Code,  Sections  13-1-28  through  13-1-199

NMSA 1978, imposes civil and criminal  penalties for its violation.  In addition,  the New Mexico criminal statutes impose felony penalties for illegal bribes, gratuities, and kickbacks.

 

B.   Equal Opportunity Compliance.  The Contractor  agrees to abide by all federal and state laws and rules and regulations,  and executive  orders  of the Governor  of the State  of New  Mexico, pertaining  to equal employment  opportunity.    In accordance  with all such  laws of the State of New Mexico,  the Contractor  agrees  to assure  that  no person  in the United  States shall, on the grounds of race, religion, color, national origin, ancestry,  sex, age, physical  or mental handicap, serious medical condition,  spousal  affiliation,  sexual orientation  or gender  identity, be excluded from employment  with or participation in, be denied the benefits of, or be otherwise subjected to discrimination  under any program or activity performed under this AGREEMENT. If Contractor is found not to be in compliance with these requirements  during  the life of this AGREEMENT, Contractor agrees to take appropriate  steps to correct these deficiencies.

 

C.    Workers  Compensation.    The  Contractor   agrees  to  comply   with  state  laws  and  rules applicable to workers compensation benefits for its employees.  If the Contractor  fails to comply with  the  Workers   Compensation  Act  and   applicable   rules   when   required   to  do  so,  this AGREEMENT may be terminated  by the Procuring Agency.

 

D.   Applicable  Law.   The laws  of the State of New Mexico  shall  govern  this AGREEMENT. Venue shall be proper only in a New Mexico court of competent  jurisdiction  in the county where the Procuring Agency's main office is located.   By execution  of this AGREEMENT, Contractor acknowledges  and agrees  to the jurisdiction  of the courts of the State of New Mexico over any and all such lawsuits.                                  ·

 

E.     Waiver.     A  party's   failure   to  require   strict   performance   of   any   provision   of   this AGREEMENT  shall   not  waive  or  diminish   that  party's  right   thereafter   to  demand   strict compliance  with that or any other provision.  No waiver by a party of any of its rights under this AGREEMENT shall be effective  unless expressed  and in writing, and no effective  waiver by a party of any of its rights shall be effective to waive any other rights.

 

F.    Headings.    Any  and  all  headings  herein  are  inserted  only  for  convenience   and  ease  of reference and are not to be considered  in the construction  or interpretation  of any provision  of this AGREEMENT.  Numbered  or lettered provisions, sections and subsections  contained herein, refer  only  to  provisions,   sections   and  subsections   of  this  AGREEMENT  unless  otherwise expressly stated.

 

 

ARTICLE 31 -SURVIVAL

 

The Articles entitled Intellectual  Property,  Intellectual  Property Ownership, Confidentiality, and Warranties shall survive  the expiration  or termination  of this AGREEMENT.  Software  License and Software Escrow AGREEMENTS and other unexpired AGREEMENTS entered into in conjunction  with this AGREEMENT shall survive the expiration  or termination  of this AGREEMENT.

 

ARTICLE 32- TIME

 

Calculation  of Time.  Any time period  herein calculated  by reference  to "days"  means calendar days;  provided, however,  that if the last  day for a given  act falls on a Saturday,  Sunday,  or a holiday  as observed  by the State  of  New  Mexico,  the day  for  such  act  shall  be the first  day following that is not a Saturday, Sunday, or such observed holiday.

 

ARTICLE  33- FORCE MAJEURE

 

Neither  party shall be liable  in damages  or have any right to terminate  this  AGREEMENT for any delay or default  in performing  hereunder  if such delay or default  is caused  by conditions beyond its control including,  but not limited to Acts of God, Government restrictions  (including the denial or cancellation  of any  export  or other  necessary  license),  wars,  insurrections and/or any other cause beyond the reasonable control of the party who performance is affected.

 

IN WITNESS WHEREOF, the Parties have executed this AGREEMENT as of the date of the signature by the required approval authorities  below.