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CC - Item 4I - Adopt Resolution No. 2025-17, Authorization to Acquire a New Caterpillar Inc. 420 Backhoe LeaderROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: BEN KIM, CITY MANAGER & DATE: MARCH 25, 2025 SUBJECT: ADOPT RESOLUTION NO.2025-17, AUTHORIZATION TO ACQUIRE A NEW CATERPILLAR INC. 420 BACKHOE LOADER SUMMARY The City is seeking to acquire a new Caterpillar Inc. 420 Backhoe Loader from Quinn Cat, for routine maintenance and events. The procurement of the 420 Backhoe Loader is available through Sourcewell purchasing cooperative Contract No. 011723-CAT (Attachment A) awarded to Caterpillar Inc. The total cost of the vehicle, including aftermarket equipment, is $ 209,071.25. Additionally, this report requests consideration and approval of Resolution No. 2025-17 Attachment B), to appropriate additional funds in the amount of $100,000.00 to address the funding shortfall associated with the procurement of the equipment. DISCUSSION The Public Works Department is currently using a 2009 JCB tractor for various maintenance tasks within the City and for events. The tractor has been in service for nearly fourteen years and requires extensive repairs and service to operate. Additionally, the smaller size of the current unit limits operational efficiency and the Department's ability to respond effectively in emergencies. Investing in a new backhoe will enable more efficient use of time while also enhancing worker safety and improving emergency response efforts. The recommended Backhoe Loader is custom built by Quinn Cat, through Caterpillar Inc. Caterpillar Inc. secured Sourcewell Contract No. 011723-CAT through a competitive bid effective May 24, 2023. All Sourcewell cooperative agreements are competitively bid on a nationwide basis. Some of the benefits of using a cooperative purchasing contract include reduction of the administrative costs associated with issuing a competitive solicitation and product cost savings based on economies of scale. Rosemead Municipal Code allows the use of "Competitive Bidding Already Completed" according to section 3.24.090.D. The custom equipment is a Caterpillar Inc. 420 Backhoe Loader equipped with standard equipment as well as additional digging buckets, a concreate breaker, a forklift attachment, and 60- month/4000 Hour Premier warranty (Attachment C). AGENDA ITEM 4.I City Council Meeting March 25, 2025 Page 2 of 3 Additional Funding Appropriation The total cost of procuring the new equipment with the aftermarket parts is $209,071.25. There is an available capital equipment budget of $110,000.00 in Gas Tax funds. To acquire this vehicle, staff is recommending an additional $100,000.00 in Street Light District funds to increase the total available capital equipment budget to $210,000.00. The additional cost is due to staff determining that a Backhoe would be more beneficial to areas of responsibility than a stump grinder. This equipment will be assigned to the Public Services Division. STAFF RECOMMENDATION Staff recommends that the City Council: 1.Authorize the procurement of a new Caterpillar Inc. Backhoe Loader model 420 through Sourcewell (Contract No. 011723-CAT) in the amount of $209,071.25. 2.Adopt Resolution No. 2025-17 to appropriate $100,000.00 in Street Light District funding to cover the shortfall for the procurement of the new Backhoe Loader. FISCAL IMPACT Funding for the procurement of the Caterpillar Inc. 420 Backhoe Loader is included in the adopted Fiscal Year 2024-25 Budget in the amount of $110,000.00 in Gas Tax Funds. An additional appropriation in the amount of $100,000.00, outlined in Resolution 2025-17, is required to complete the purchase as follows: Description Account No. Amount Approved in FY 2024-25 Budget 201-3010-5980 $110,000.00 Additional allocation per Resolution No. 2025-17 245-3010-5980 $100,000.00 Total Amount $210,000.00 ENVIRONMENTA REVIEW Pursuant to CEQA, a "project" is defined as a "whole action" subject to a public agency's discretionary funding or approval that has the potential to either (1) cause a direct physical change in the environment or (2) cause a reasonably foreseeable indirect physical change in the environment. "Projects" include discretionary activity by a public agency, a private activity that receives any public funding, or activities that involve the public agency's issuance of a discretionary approval and are not statutorily or categorically exempt from CEQA. (Pub. Res. Code§ 21065.) To the extent that it matters the action considered has been determined not to constitute a “project” under CEQA. City Council Meeting March 25, 2025 Page 3 of3 STRATEGIC PLAN IMPACT The procurement of a new Backhoe loader is consistent with the City of Rosemead' s Strategic Plan Goal C -Infrastructure and Facilities, which is to enhance streets, sidewalks, and public infrastructure; coordinate with relevant utility agencies regarding safety and enhancements; and modernize facilities by expanding the use of wireless network technology and renewable energy. PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Prepared by: istopher Camacho Public Works Manager Attachment A: Sourcewell Contract No. 011723-CAT Attachment B: Resolution No. 2025-17 Attachment C: Quote from Quinn CAT Attachment A Sourcewell Contract No. 011723-CAT DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 011723- CAT Sourcewell a Solicitation Number: RFP # 011723 C L I :7_« This Contract is between Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 (Sourcewell) and Caterpillar Inc., 100 NE Adams Street, Peoria, IL 61629 (Supplier). Sourcewell is a State of Minnesota local government unit and service cooperative created under the laws of the State of Minnesota (Minnesota Statutes Section 123A.21) that offers cooperative procurement solutions to government entities. Participation is open to eligible federal, state/province, and municipal governmental entities, higher education, K-12 education, nonprofit, tribal government, and other public entities located in the United States and Canada. Sourcewell issued a public solicitation for Heavy Construction Equipment with Related Attachments and Technology from which Supplier was awarded a contract. Supplier desires to contract with Sourcewell to provide equipment, products, or services to Sourcewell and the entities that access Sourcewell's cooperative purchasing contracts Participating Entities). 1. TERM OF CONTRACT A. EFFECTIVE DATE. This Contract is effective upon the date of the final signature below. B. EXPIRATION DATE AND EXTENSION. This Contract expires April 14, 2027, unless it is cancelled sooner pursuant to Article 22. This Contract may be extended one additional year upon the request of Sourcewell and written agreement by Supplier. C. SURVIVAL OF TERMS. Notwithstanding any expiration or termination of this Contract, all payment obligations incurred prior to expiration or termination will survive, as will the following: Articles 11 through 14 survive the expiration or cancellation of this Contract. All other rights will cease upon expiration or termination of this Contract. 2. EQUIPMENT, PRODUCTS, OR SERVICES A. EQUIPMENT, PRODUCTS, OR SERVICES. Supplier will provide the Equipment, Products, or Services as stated in its Proposal submitted under the Solicitation Number listed above. Supplier's Equipment, Products, or Services Proposal (Proposal) is attached and incorporated into this Contract. Rev. 3/2022 Caterpillar: Confidential Green DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 011723- CAT Pursuant to Section 10(b), Supplier will subcontract certain obligations under this Contract to its dealers. Only those dealers that sign a Participation Agreement with Supplier obligating them to comply with the terms of this Contract will be eligible to provide Equipment, Products, or Services as a subcontractor under this Contract. In the event there is no dealer who has entered into a Participation Agreement available to provide Equipment, Products, or Services to a Participating Entity, Supplier will be under no obligation to provide Equipment, Products, or Services to such Participating Entity under this Contract. Supplier will provide a copy of this Contract to its dealers that would normally service Participating Entities and invite such dealers to enter into a Participation Agreement as a subcontractor of Supplier under the terms of this Contract. All Equipment and Products provided under this Contract must be new and the current model. Supplier may offer close-out or refurbished Equipment or Products if they are clearly indicated in Supplier's product and pricing list. Unless agreed to by the Participating Entities in advance, Equipment or Products must be delivered as operational to the Participating Entity's site. This Contract offers an indefinite quantity of sales, and while substantial volume is anticipated, sales and sales volume are not guaranteed. B. WARRANTY. Supplier warrants that all Equipment, Products, and Services furnished are free from liens and encumbrances, and are free from defects in design, materials, and workmanship. In addition, Supplier warrants the Equipment, Products, and Services are suitable for and will perform in accordance with the ordinary use for which they are intended. Supplier's dealers and distributors must agree to assist the Participating Entity in reaching a resolution in any dispute over warranty terms with the manufacturer. Any manufacturer's warranty that extends beyond the expiration of the Supplier's warranty will be passed on to the Participating Entity. C. DEALERS, DISTRIBUTORS, AND/OR RESELLERS. Upon Contract execution and throughout the Contract term, Supplier must provide to Sourcewell a current means to validate or authenticate Supplier's authorized dealers, distributors, or resellers relative to the Equipment, Products, and Services offered under this Contract, which will be incorporated into this Contract by reference. It is the Supplier's responsibility to ensure Sourcewell receives the most current information. 3. PRICING All Equipment, Products, or Services under this Contract will be priced at or below the percentage list discount stated in the supplier's proposal. Upon request made to a participating CAT dealer, from a Participating Entity identifying themselves as a Sourcewell member by providing their Sourcewell member number and contract number; formal quotes will list all costs, including all delivery expenses, such as freight and permits (when required). Rev. 3/2022 Caterpillar: Confidential Green DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 011723- CAT Alternatively, Participating Entities may choose to make their own transportation arrangements. In such case, there would be no delivery charges from the local participating Cat dealer. Regardless of the payment method chosen by the Participating Entity, the total cost associated with any purchase option of the Equipment, Products, or Services must always be disclosed in the pricing quote to the applicable Participating Entity at the time of purchase. A. SHIPPING AND SHIPPING COSTS. All delivered Equipment and Products must be properly packaged. Damaged Equipment and Products may be rejected. If the damage is not readily apparent at the time of delivery, Supplier must permit the Equipment and Products to be returned within a reasonable time at no cost to Sourcewell or its Participating Entities. Participating Entities reserve the right to inspect the Equipment and Products at a reasonable time after delivery where circumstances or conditions prevent effective inspection of the Equipment and Products at the time of delivery. In the event of the delivery of nonconforming Equipment and Products, the Participating Entity will notify the Supplier as soon as possible and the Supplier will replace nonconforming Equipment and Products with conforming Equipment and Products that are acceptable to the Participating Entity. Supplier must arrange for and pay for the return shipment on Equipment and Products that arrive in a defective or inoperable condition. Sourcewell may declare the Supplier in breach of this Contract if the Supplier intentionally delivers substandard or inferior Equipment or Products. B. SALES TAX. Each Participating Entity is responsible for supplying the Supplier with valid tax - exemption certification(s). When ordering, a Participating Entity must indicate if it is a tax- exempt entity. C. HOT LIST PRICING. At anytime during this Contract, Supplier may offer a specific selection of Equipment, Products, or Services at discounts greater than those listed in the Contract. When Supplier determines it will offer Hot List Pricing, it must be submitted electronically to Sourcewell in a line -item format. Equipment, Products, or Services may be added or removed from the Hot List at any time through a Sourcewell Price and Product Change Form as defined in Article 4 below. Hot List program and pricing may also be used to discount and liquidate close-out and discontinued Equipment and Products as long as those close-out and discontinued items are clearly identified as such. Current ordering process and administrative fees apply. Hot List Pricing must be published and made available to all Participating Entities. Rev. 3/2022 Caterpillar: Confidential Green DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 011723- CAT 4. PRODUCT AND PRICING CHANGE REQUESTS Supplier may request Equipment, Product, or Service changes, additions, or deletions at any time. All requests must be made in writing by submitting a signed Sourcewell Price and Product Change Request Form to the assigned Sourcewell Supplier Development Administrator. This approved form is available from the assigned Sourcewell Supplier Development Administrator. At a minimum, the request must: Identify the applicable Sourcewell contract number; Clearly specify the requested change; Provide sufficient detail to justify the requested change; Individually list all Equipment, Products, or Services affected by the requested change, along with the requested change (e.g., addition, deletion, price change); and Include a complete restatement of pricing documentation in Microsoft Excel with the effective date of the modified pricing, or product addition or deletion. The new pricing restatement must include all Equipment, Products, and Services offered, even for those items where pricing remains unchanged. A fully executed Sourcewell Price and Product Request Form will become an amendment to this Contract and will be incorporated by reference. 5. PARTICIPATION, CONTRACT ACCESS, AND PARTICIPATING ENTITY REQUIREMENTS A. PARTICIPATION. Sourcewell's cooperative contracts are available and open to public and nonprofit entities across the United States and Canada; such as federal, state/province, municipal, K-12 and higher education, tribal government, and other public entities. Supplier may not enter into a contract with a U.S. Federal Government entity prior to obtaining necessary internal approvals and shall not be obligated to provide Equipment, Products or Services to any U.S. Federal Government entity under this Contract unless separately agreed in writing. Caterpillar may work with such parties and may agree to provide equipment or services under the Contract on a case -by -case basis. The benefits of this Contract should be available to all Participating Entities that can legally access the Equipment, Products, or Services under this Contract. A Participating Entity's authority to access this Contract is determined through its cooperative purchasing, interlocal, or joint powers laws. Any entity accessing benefits of this Contract will be considered a Service Member of Sourcewell during such time of access. Supplier understands that a Participating Entity's use of this Contract is at the Participating Entity's sole convenience and Participating Entities reserve the right to obtain like Equipment, Products, or Services from any other source. Supplier is responsible for familiarizing its sales and service forces with Sourcewell contract use eligibility requirements and documentation and will encourage potential participating entities Rev. 3/2022 4 Caterpillar: Confidential Green DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 011723- CAT to join Sourcewell. Sourcewell reserves the right to add and remove Participating Entities to its roster during the term of this Contract. B. PUBLIC FACILITIES. Supplier's employees maybe required to perform work at government - owned facilities, including schools. Supplier's employees and agents must conduct themselves in a professional manner while on the premises, and in accordance with Participating Entity policies and procedures, and all applicable laws. 6. PARTICIPATING ENTITY USE AND PURCHASING A. ORDERS AND PAYMENT. To access the contracted Equipment, Products, or Services under this Contract, a Participating Entity must clearly indicate to Supplier that it intends to access this Contract; however, order flow and procedure will be developed jointly between Sourcewell and Supplier. Typically, a Participating Entity will issue an order directly to Participating Dealers with payments made to the Participating Dealers. If a Participating Entity issues a purchase order, it may use its own forms, but the purchase order should clearly note the applicable Sourcewell contract number. All Participating Entity orders under this Contract must be issued prior to expiration or cancellation of this Contract; however, Supplier performance, Participating Entity payment obligations, and any applicable warranty periods or other Supplier or Participating Entity obligations may extend beyond the term of this Contract. Supplier's acceptable forms of payment are included in its attached Proposal. Participating Entities will be solely responsible for payment and Sourcewell will have no liability for any unpaid invoice of any Participating Entity. B. ADDITIONAL TERMS AND CONDITIONS/PARTICIPATING ADDENDUM. Additional terms and conditions to a purchase order, or other required transaction documentation, may be negotiated between a Participating Entity and Supplier's Participating Dealer, such as job or industry -specific requirements, legal requirements (e.g., affirmative action or immigration status requirements), or specific local policy requirements. Some Participating Entities may require the use of a Participating Addendum, the terms of which will be negotiated directly between the Participating Entity and Supplier's Participating Dealer or its authorized dealers, distributors, or resellers, as applicable. Any negotiated additional terms and conditions must never be less favorable to the Participating Entity than what is contained in this Contract. C. SPECIALIZED SERVICE REQUIREMENTS. In the event that the Participating Entity requires service or specialized performance requirements not addressed in this Contract (such as e- commerce specifications, specialized delivery requirements, or other specifications and requirements), the Participating Entity and the Supplier may enter into a separate, standalone agreement, apart from this Contract. Sourcewell, including its agents and employees, will not be made a party to a claim for breach of such agreement. Rev. 3/2022 Caterpillar: Confidential Green DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 011723- CAT D. TERMINATION OF ORDERS. Participating Entities may terminate an order, in whole or in part, immediately upon notice to Supplier in the event of any of the following events: 1. The Participating Entity fails to receive funding or appropriation from its governing body at levels sufficient to pay for the equipment, products, or services to be purchased; or 2. Federal, state, or provincial laws or regulations prohibit the purchase or change the Participating Entity's requirements. E. GOVERNING LAW AND VENUE. The governing law and venue for any action related to a Participating Entity's order will be determined by the Participating Entity making the purchase. 7. CUSTOMER SERVICE A. PRIMARY ACCOUNT REPRESENTATIVE. Supplier will assign an Account Representative to Sourcewell for this Contract and must provide prompt notice to Sourcewell if that person is changed. The Account Representative will be responsible for: Maintenance and management of this Contract; Timely response to all Sourcewell and Participating Entity inquiries; and Business reviews to Sourcewell and Participating Entities, if applicable. B. BUSINESS REVIEWS. Supplier must perform a minimum of one business review with Sourcewell per contract year. The business review will cover sales to Participating Entities, pricing and contract terms, administrative fees, sales data reports, performance issues, supply issues, customer issues, and any other necessary information. 8. REPORT ON CONTRACT SALES ACTIVITY AND ADMINISTRATIVE FEE PAYMENT A. CONTRACT SALES ACTIVITY REPORT. Each calendar quarter, Supplier must provide a contract sales activity report (Report) to the Sourcewell Supplier Development Administrator assigned to this Contract. Reports are due no later than 45 days after the end of each calendar quarter. A Report must be provided regardless of the number or amount of sales during that quarter (i.e., if there are no sales, Supplier must submit a report indicating no sales were made). The Report must contain the following fields: Participating Entity Name (e.g., City of Staples Highway Department); Participating Entity Physical Street Address; Participating Entity City; Participating Entity State/Province; Participating Entity Zip/Postal Code; Rev. 3/2022 Caterpillar: Confidential Green DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 011723- CAT Participating Entity Contact Name; Participating Entity Contact Email Address; Participating Entity Contact Telephone Number; Sourcewell Assigned Entity/Participating Entity Number; Item Purchased Description; Item Purchased Price; Sourcewell Administrative Fee Applied; and Date Purchase was invoiced/sale was recognized as revenue by Supplier. B. ADMINISTRATIVE FEE. In consideration for the support and services provided by Sourcewell, the Supplier will pay an administrative fee to Sourcewell on all Equipment, Products, and Services provided to Participating Entities. The Administrative Fee must be included in, and not added to, the pricing. Supplier may not charge Participating Entities more than the contracted price to offset the Administrative Fee. The Supplier will submit payment to Sourcewell for the percentage of administrative fee stated in the Proposal multiplied by the total sales of all Equipment, Products, and Services purchased by Participating Entities under this Contract during each calendar quarter. Payments should note the Supplier's name and Sourcewell-assigned contract number in the memo; and must be mailed to the address above "Attn: Accounts Receivable" or remitted electronically to Sourcewell's banking institution per Sourcewell's Finance department instructions. Payments must be received no later than 45 calendar days after the end of each calendar quarter. Supplier agrees to cooperate with Sourcewell in auditing transactions under this Contract to ensure that the administrative fee is paid on all items purchased under this Contract. In the event the Supplier is delinquent in any undisputed administrative fees, Sourcewell reserves the right to cancel this Contract and reject any proposal submitted by the Supplier in any subsequent solicitation. In the event this Contract is cancelled by either party prior to the Contract's expiration date, the administrative fee payment will be due no more than 30 days from the cancellation date. 9. AUTHORIZED REPRESENTATIVE Sourcewell's Authorized Representative is its Chief Procurement Officer. Supplier's Authorized Representative is the person named in the Supplier's Proposal. If Supplier's Authorized Representative changes at any time during this Contract, Supplier must promptly notify Sourcewell in writing. Rev. 3/2022 Caterpillar: Confidential Green DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 011723- CAT 10. AUDIT, ASSIGNMENT, AMENDMENTS, WAIVER, AND CONTRACT COMPLETE A. AUDIT. Pursuant to Minnesota Statutes Section 16C.05, subdivision 5, the books, records, documents, and accounting procedures and practices relevant to this Contract are subject to examination by Sourcewell or the Minnesota State Auditor for a minimum of six years from the end of this Contract. This clause extends to Participating Entities as it relates to business conducted by that Participating Entity under this Contract. B. ASSIGNMENT. Neither party may assign or otherwise transfer its rights or obligations under this Contract without the prior written consent of the other party and a fully executed assignment agreement. Such consent will not be unreasonably withheld. Any prohibited assignment will be invalid. Provided, however, that Supplier is permitted to subcontract certain of its rights and obligations to Supplier Participating Dealers for performance without Sourcewell's prior written consent. C. AMENDMENTS. Any amendment to this Contract must be in writing and will not be effective until it has been duly executed by the parties. D. WAIVER. Failure by either party to take action or assert any right under this Contract will not be deemed a waiver of such right in the event of the continuation or repetition of the circumstances giving rise to such right. Any such waiver must be in writing and signed by the parties. E. CONTRACT COMPLETE. This Contract represents the complete agreement between the parties. No other understanding regarding this Contract, whether written or oral, may be used to bind either party. For any conflict between the attached Proposal and the terms set out in Articles 1-22 of this Contract, the terms of Articles 1-22 will govern. F. RELATIONSHIP OF THE PARTIES. The relationship of the parties is one of independent contractors, each free to exercise judgment and discretion with regard to the conduct of their respective businesses. This Contract does not create a partnership, joint venture, or any other relationship such as master -servant, or principal -agent. Intentionally omitted. 11. INDEMNITY AND HOLD HARMLESS 12. GOVERNMENT DATA PRACTICES Supplier and Sourcewell must comply with the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, as it applies to all data provided by or provided to Sourcewell Rev.3/2022 Caterpillar: Confidential Green DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 011723- CAT under this Contract and as it applies to all data created, collected, received, maintained, or disseminated by the Supplier under this Contract. 13. INTELLECTUAL PROPERTY, PUBLICITY, MARKETING, AND ENDORSEMENT A. Intentionally Deleted. B. PUBLICITY. Any publicity regarding the subject matter of this Contract must not be released without prior written approval from the Authorized Representatives. Publicity includes notices, informational pamphlets, press releases, research, reports, signs, and similar public notices prepared by or for the Supplier individually or jointly with others, or any subcontractors, with respect to the program, publications, or services provided resulting from this Contract. C. MARKETING. Any direct advertising, marketing, or offers with Participating Entities must be approved by Sourcewell. Send all approval requests to the Sourcewell Supplier Development Administrator assigned to this Contract. D. ENDORSEMENT. The Supplier must not claim that Sourcewell endorses its Equipment, Products, or Services. 14. GOVERNING LAW, JURISDICTION, AND VENUE The substantive and procedural laws of the State of Minnesota will govern this Contract. Venue for all legal proceedings arising out of this Contract, or its breach, must be in the appropriate state court in Todd County, Minnesota or federal court in Fergus Falls, Minnesota. 15. FORCE MAJEURE Neither party to this Contract will be held responsible for delay or default caused by acts of God or other conditions that are beyond that party's reasonable control. A party defaulting under this provision must provide the other party prompt written notice of the default. 16. SEVERABILITY If any provision of this Contract is found by a court of competent jurisdiction to be illegal, unenforceable, or void then both parties will be relieved from all obligations arising from that provision. If the remainder of this Contract is capable of being performed, it will not be affected by such determination or finding and must be fully performed. 17. PERFORMANCE, DEFAULT, AND REMEDIES A. PERFORMANCE. During the term of this Contract, the parties will monitor performance and address unresolved contract issues as follows: Rev. 3/2022 Caterpillar: Confidential Green DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 011723- CAT 1. Notification. The parties must promptly notify each other of any known dispute and work in good faith to resolve such dispute within a reasonable period of time. If necessary, Sourcewell and the Supplier will jointly develop a short briefing document that describes the issue(s), relevant impact, and positions of both parties. 2. Escalation. If parties are unable to resolve the issue in a timely manner, as specified above, either Sourcewell or Supplier may escalate the resolution of the issue to a higher level of management. The Supplier will have 30 calendar days to cure an outstanding issue. 3. Performance while Dispute is Pending. Notwithstanding the existence of a dispute, the Supplier must continue without delay to carry out all of its responsibilities under the Contract that are not affected by the dispute. If the Supplier fails to continue without delay to perform its responsibilities under the Contract, in the accomplishment of all undisputed work, the Supplier will bear any additional costs incurred by Sourcewell and/or its Participating Entities as a result of such failure to proceed. B. DEFAULT AND REMEDIES. Either of the following constitutes cause to declare this Contract, or any Participating Entity order under this Contract, in default: 1. Nonperformance of contractual requirements, or 2. A material breach of any term or condition of this Contract. The party claiming default must provide written notice of the default, with 30 calendar days to cure the default. Time allowed for cure will not diminish or eliminate any liability for liquidated or other damages. If the default remains after the opportunity for cure, the non -defaulting party may: Exercise any remedy provided by law or equity, or Terminate the Contract or any portion thereof, including any orders issued against the Contract. 18. INSURANCE A. REQUIREMENTS. At its own expense, Supplier must maintain insurance policy(ies) in effect at all times during the performance of this Contract with insurance company(ies) licensed or authorized to do business in the State of Minnesota having an "AM BEST" rating of A- or better, with coverage and limits of insurance not less than the following: 1. Workers' Compensation and Employer's Liability. Workers' Compensation: As required by any applicable law or regulation. Employer's Liability Insurance: must be provided in amounts not less than listed below: Minimum limits: 500,000 each accident for bodily injury by accident 500,000 policy limit for bodily injury by disease 500,000 each employee for bodily injury by disease Rev. 3/2022 10 Caterpillar: Confidential Green DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 011723- CAT 2. Commercial General Liability Insurance. Supplier will maintain insurance covering its operations, with coverage on an occurrence basis, and must be subject to terms no less broad than the Insurance Services Office ("ISO") Commercial General Liability Form CG0001 (2001 or newer edition), or equivalent. At a minimum, coverage must include liability arising from premises, operations, bodily injury and property damage, independent contractors, products -completed operations including construction defect, contractual liability, blanket contractual liability, and personal injury and advertising injury. All required limits, terms and conditions of coverage must be maintained during the term of this Contract. Minimum Limits: 1,000,000 each occurrence Bodily Injury and Property Damage 1,000,000 Personal and Advertising Injury 2,000,000 aggregate for products liability -completed operations 2,000,000 general aggregate 3. Commercial Automobile Liability Insurance. During the term of this Contract, Supplier will maintain insurance covering all owned, hired, and non -owned automobiles in limits of liability not less than indicated below. The coverage must be subject to terms no less broad than ISO Business Auto Coverage Form CA 0001 (2010 edition or newer), or equivalent. Minimum Limits: 1,000,000 each accident, combined single limit 4. Umbrella Insurance. During the term of this Contract, Supplier will maintain umbrella coverage over Employer's Liability, Commercial General Liability, and Commercial Automobile. Minimum Limits: 2,000,000 Failure of Supplier to maintain the required insurance will constitute a material breach entitling Sourcewell to immediately terminate this Contract for default. B. CERTIFICATES OF INSURANCE. Prior to commencing under this Contract, Supplier must furnish to Sourcewell a certificate of insurance, as evidence of the insurance required under this Contract. Prior to expiration of the policy(ies), renewal certificates must be mailed to Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 or sent to the Sourcewell Supplier Development Administrator assigned to this Contract. The certificates must be signed by a person authorized by the insurer(s) to bind coverage on their behalf. Failure to request certificates of insurance by Sourcewell, or failure of Supplier to provide certificates of insurance, in no way limits or relieves Supplier of its duties and responsibilities in this Contract. Rev. 3/2022 11 Caterpillar: Confidential Green DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 011723- CAT C. ADDITIONAL INSURED ENDORSEMENT AND PRIMARY AND NON-CONTRIBUTORY INSURANCE CLAUSE. Supplier agrees to list Sourcewell and its Participating Entities, including their officers, agents, and employees, as an additional insured under the Supplier's commercial general liability insurance policy with respect to liability arising out of activities, "operations," or work" performed by or on behalf of Supplier, and products and completed operations of Supplier. The policy provision(s) or endorsement(s) must further provide that coverage is primary and not excess over or contributory with any other valid, applicable, and collectible insurance or self-insurance in force for the additional insureds. A Participating Dealer may name a Participating Entity as an additional insured on a case -by -case basis. WAIVER OF SUBROGATION. Supplier waives and must require (by endorsement or otherwise) all its insurers to waive subrogation rights against Sourcewell and other additional insureds for losses paid under the insurance policies required by this Contract or other insurance applicable to the Supplier or its subcontractors. The waiver must apply to all deductibles and/or self - insured retentions applicable to the required or any other insurance maintained by the Supplier or its subcontractors. D. UMBRELLA/EXCESS LIABILITY/SELF-INSURED RETENTION. The limits required by this Contract can be met by either providing a primary policy or in combination with umbrella/excess liability policy(ies), or self -insured retention. 19. COMPLIANCE A. LAWS AND REGULATIONS. All Equipment, Products, or Services provided under this Contract must comply fully with applicable federal laws and regulations, and with the laws in the states and provinces in which the Equipment, Products, or Services are sold. B. LICENSES. Supplier's Participating Dealers must maintain a valid and current status on all required federal, state/provincial, and local licenses, bonds, and permits required for the operation of the business that the Participating Dealer conducts with Sourcewell and Participating Entities. 20. BANKRUPTCY, DEBARMENT, OR SUSPENSION CERTIFICATION Supplier certifies and warrants that it is not in bankruptcy or that it has previously disclosed in writing certain information to Sourcewell related to bankruptcy actions. If at any time during this Contract Supplier declares bankruptcy, Supplier must immediately notify Sourcewell in writing. Rev. 3/2022 12 Caterpillar: Confidential Green DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 011723-CAT Supplier certifies and warrants that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from programs operated by the State of Minnesota; the United States federal government or the Canadian government, as applicable; or any Participating Entity. Supplier certifies and warrants that neither it nor its principals have been convicted of a criminal offense related to the subject matter of this Contract. Supplier further warrants that it will provide immediate written notice to Sourcewell if this certification changes at any time. 21. PROVISIONS FOR NON -UNITED STATES FEDERAL ENTITY PROCUREMENTS UNDER UNITED STATES FEDERAL AWARDS OR OTHER AWARDS Intentionally omitted. 22. CANCELLATION Sourcewell or Supplier may cancel this Contract at any time, with or without cause, upon 60 days' written notice to the other party. However, Sourcewell may cancel this Contract immediately upon discovery of a material defect in any certification made in Supplier's Proposal. Cancellation of this Contract does not relieve either party of financial, product, or service obligations incurred or accrued prior to cancellation. Sourcewell Docuftned by:: I,' s"A6 By.0 COFD2A139DO6489... Jeremy Schwartz Title: Chief Procurement Officer 5/5/2023 1 9:41 AM CDT Date: Approved: Docu,S/ Iigneed/,b y, . yC. 1NlMM1R.I l v By 7E42B8F817A64CC... Chad Coauette Title: Executive Director/CEO 5/24/2023 1 12:16 PM CDT Date: Rev.3/2022 By: Caterpillar Inc. EDocuSIgned by: 68A87926721 B4E0... Patrick Kearns Title: Vice President Sales & Marketing, Construction Industries Date: 5/24/2023 1 9:13 AM PDT 13 Caterpillar: Confidential Green DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 RFP 011723 - Heavy Construction Equipment with Related Attachments and Technology Vendor Details Company Name Address Contact: Email: Phone: HST#: Submission Details Created On: Submitted On: Submitted By: Email: Transaction #: Submitter's IP Address: Caterpillar Inc 100 NE Adams St Peoria, IL 61629 Sean Egel egel_seanJ@cat.com 309-675-1399 Tuesday November 15, 2022 14:22:18 Tuesday January 17, 2023 16:10:22 Sean Egel egel_seanJ@cat.com aeaa61ae-003-4610-8208-b80e2e0b4448 192.189.129.23 Bid Number: RFP 011723 Vendor Name: Caterpillar Inc DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Specifications Table 1: Proposer Identity & Authorized Representatives General Instructions (applies to all Tables) Sourcewell prefers a brief but thorough response to each question. Do not merely attach additional documents to your response without also providing a substantive response. Do not leave answers blank; respond "N/A" if the question does not apply to you (preferably with an explanation). Line Item Question Response* 1 Proposer Legal Name (one legal entity only): Caterpillar Inc. In the event of award, will execute the resulting contract as "Supplier") 2 Identify all subsidiary entities of the Proposer N/A whose equipment, products, or services are included in the Proposal. 3 Identify all applicable assumed names or DBA N/A names of the Proposer or Proposer's subsidiaries in Line 1 or Line 2 above. 4 Provide your CAGE code or Unique Entity 11083 Identifier (SAM): 5 Proposer Physical Address: 5212 N O'Connor Blvd Ste. 1100, Irving, TX 75039 6 Proposer website address (or addresses): https://vww.caterpillar.com/, https:/Auww.cat.com/en US.html 7 Proposer's Authorized Representative (name, Primary Contact: Patrick Kearns title, address, email address & phone) (The Title: Vice President Sales & Marketing representative must have authority to sign Address: 100 NE Adams St, Peoria, IL 61629 the "Proposer's Assurance of Compliance" on Email: Kea rns_Patrick@Cat.Com behalf of the Proposer and, in the event of Phone: (309) 675-5181 award, will be expected to execute the resulting contract): 8 Proposer's primary contact for this proposal Primary Contact: Sean Egel name, title, address, email address & phone): Title: Governmental Sales Consultant Address: 100 NE Adams St, Peoria, IL 61629 Email: Egel_Sean_J@Cat.Com Phone: (309) 675-1399 9 Proposer's other contacts for this proposal, if Primary Contact: Marta Sevilla any (name, title, address, email address & Title: Governmental Marketing Manager phone): Address: 100 NE Adams St, Peoria, IL 61629 Email: Sevilla_Marta_E@Cat.com Phone: (309) 578-1150 Table 2: Company Information and Financial Strength Line Item Question Response* Bid Number: RFP 011723 Vendor Name: Caterpillar Inc DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 10 Provide a brief history of your company, The history of Caterpillar is all about doing: creating, building, problem solving, including your company's core values, innovating, testing, servicing and improving. We're proud of the ingenious machines business philosophy, and industry longevity that are part of our rich heritage. More importantly, we are proud of the people who related to the requested equipment, products founded and built the company one breakthrough at a time. Beginning with Benjamin or services. Holt and C. L. Best, the people of Caterpillar have always been - and continue to be - extraordinary. In 1925, when Holt and Best merged to form their new tractor company, they used the name so familiar to people around the world: Caterpillar. The Caterpillar Tractor Company is today known as Caterpillar Inc. With 2021 sales and revenues of $51.0 billion, Caterpillar Inc. is the world's leading manufacturer of construction and mining equipment, off -highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. For nearly 100 years, we've been helping customers build a better, more sustainable world and are committed and contributing to a reduced -carbon future. Our innovative products and services, backed by our global dealer network, provide exceptional value that helps customers succeed. Caterpillar does business on every continent, principally operating through three primary segments — Construction Industries, Resource Industries and Energy & Transportation — and providing financing and related services through our Financial Products segment. Our Worldwide Code of Conduct, first published in 1974, defines what we stand for and believe in, documenting the uncompromisingly high ethical standards our company has upheld since its founding in 1925. The Code helps Caterpillar employees put our values and principles into action every day by providing detailed guidance on the behaviors and actions that support our values of Integrity, Excellence, Teamwork, Commitment and Sustainability. Caterpillar's Code of Conduct that can be found at hftps:/AwAv.caterpiIlar.com/en/company/code-of-conduct.htmI 11 What are your company's expectations in the Caterpillar is honored to have served Sourcewell and its members who have event of an award? purchased Cat® construction equipment, attachments (work tools), and electrical power generation products through Sourcewell since 2008. Furthermore, we are proud to have earned the Sourcewell Legacy Award in 2019, and have recently been awarded contracts 060122-CAT and 092222-CAT. Caterpillar's expectations in the event of an award would be to focus on customer needs and continued growth across all governmental segments. Sourcewell has built a strong reputation within the industry that has shown the importance of how this cooperative contract delivers upon customer needs. This contract will be a top factor in our go to market strategy within our strong Cat dealer network. If awarded, we will send out an email to our entire sales force, applicable to governmental, introducing the contract along with ways to train our salesforce, market, and grow the contract. We look forward to the opportunity to further grow business and serve member needs together in this new Heavy Construction Equipment RFP opportunity. 12 Demonstrate your financial strength and Caterpillar Inc. is a publicly traded company, and as such, its financial information is stability with meaningful data. This could updated quarterly and available at: https://investors.caterpillar.com/overview/default.aspx include such items as financial statements, SEC filings, credit and bond ratings, letters Caterpillar's 2021 Annual Report provides details about our of credit, and detailed reference letters. financial position. Our SEC filing documents can be found at: Upload supporting documents (as applicable) hftps://investors.caterpillar.com/financials/sec-filings/default.aspx. Both documents are in the document upload section of your included as attachments in our Financial Strength and Stability Documents. response. As 2022 results are yet to be released, below you can find a summary of our full year 2021 financials. In 2021 full year sales and revenues were $51B of which, North American sales were $22B. Operating profit was $6.913 with a profit per share of USD $11.83. Dividends paid per share of USD $4.28. 13 What is your US market share for the Caterpillar is a significant contributor to the overall Heavy Equipment sector within solutions that you are proposing? the US and Canada. Market share information beyond what is made publicly available through our annual reports is considered confidential. 14 What is your Canadian market share for the Caterpillar is a significant contributor to the overall Heavy Equipment sector within solutions that you are proposing? the US and Canada. Market share information beyond what is made publicly available through our annual reports is considered confidential. 15 Has your business ever petitioned for No. bankruptcy protection? If so, explain in detail. Bid Number: RFP 011723 Vendor Name: Caterpillar Inc DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 16 How is your organization best described: is Caterpillar is a world class manufacturer which distributes products through a vast it a manufacturer, a distributor/dealer/reseller, and capable independent dealer network. Our dealers are strong independently or a service provider? Answer whichever owned companies and in North America alone our 47 dealers have a combined net question (either a) or b) just below) best worth of billions of dollars. Their large valuation is a competitive advantage because applies to your organization. it allows them to have the infrastructure to support customers regardless of location, a) If your company is best described as industry, fleet size, or application. a distributor/dealer/reseller (or similar entity), provide your written authorization to act as a Another advantage of independently owned dealers is that they know their customers distributor/dealer/reseller for the manufacturer and market well. They tailor their services specifically to their customers' needs. of the products proposed in this RFP. If applicable, is your dealer network Although we will sign this contract as a manufacturer, our Cat dealers will be given independent or company owned? the b) If your company is best described as opportunity to avail themselves of the opportunity presented by the contract and will a manufacturer or service provider, describe execute all the transactions with governmental customers as they do today. This your relationship with your sales and service includes but is not limited to consultation, quoting, accepting payment, delivery, force and with your dealer network in warranty support, parts sales, and service. delivering the products and services proposed in this RFP. Are these individuals Caterpillar dealers heartily embrace the other Sourcewell contracts currently available your employees, or the employees of a third to them (032119-CAT, 092222-CAT, 062320-CAT, 060122-CAT). They have all been party? trained on contract usage. In fact, the current Heavy Equipment contract is leveraged by 95% of our dealers in North America. Caterpillar offers specific discounts to Sourcewell members. By using any Sourcewell Contract, our dealers agree to honor those discounts. 17 If applicable, provide a detailed explanation Caterpillar and its subsidiaries operate across the globe in a variety of markets that outlining the licenses and certifications that require Caterpillar to adhere to all locally mandated laws and regulations in order to are both required to be held, and actually do business. With regards to the territories covered by this RFP, Caterpillar will held, by your organization (including third comply with applicable laws in order to do business in the territories described parties and subcontractors that you use) in herein. pursuit of the business contemplated by this RFP. As an equipment manufacturer focused on quality, Caterpillar created the Caterpillar Quality Management System, which is a process -based, ISO 9001:2015 compliant quality management system used throughout Caterpillar to continually improve the quality of our products and services to meet customer, statutory, and regulatory requirements. It is registered with IRCA (International Register of Certificated Auditors) as Caterpillar Quality Management System CAT791A. 18 Provide all "Suspension or Debarment" N/A information that has applied to your organization during the past ten years. Table 3: Industry Recognition & Marketplace Success Item Question Response* Bid Number: RFP 011723 Vendor Name: Caterpillar Inc DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 19 Describe any relevant industry awards or Please note: To list all the awards received in the past 5 years would unnecessarily recognition that your company has received lengthen our response. For brevity, we are highlighting some recognition received in in the past five years 2020, 2021 and 2022. Also note there are many global awards. Fortune Magazine #78 on the Fortune 500 2021 Fortune Magazine World's Most Admired Companies World & North America Dow Jones Sustainability Index Forbes Best Employers for diversity 2020 and 2021 82 Best Global Brands- Interbrand 2021 The Wall Street Journal Best Managed Companies in 2020 and 2021 The Wall Street Journal World's Most Sustainably Managed Companies Human Rights Campaign Foundation Corporate Equality Index Dow Jones Sustainability Index (World and North America) 21 years World's Most Sustainably Managed Companies — The Wall Street Journal United Way World Wide's Global Corporate Leadership Program U.S. President's Volunteer Service Award from Junior Achievement Corporate Equality Index — Human Rights Campaign Foundation CSR China Top 100 — the 4th CSR China Education Award (China) China CSR Excellence Award — China Philanthropy Times (China) Corporate Social Responsibility Research Center of Southern Weekly (China) Outstanding Contribution to Poverty Alleviation — China Foundation for Poverty Alleviation (China) 2020 Global 500 — Fortune Magazine America's Most Responsible Companies 2020, 2021 & 2022 — Newsweek Best -Managed Companies of 2020 & 2021 — The Wall Street Journal Top Companies for Customer Satisfaction — The Wall Street Journal The CEO Leaderboard: COVID-19 Reputation Rankings — SJR All -America Executive Team — Institutional Investor Top 150 Global Licensors — Global License Best Global Brands Top 100 — Interbrand World's Most Valuable Brands 2020 — Forbes 2020 Best Places to Work for Disability Inclusion — Disability Equality Index World's Best Employers 2020 — Forbes Best Employers for Women 2020 — Forbes America's Best Employers by State 2020 — Forbes America's Best Employers for Diversity 2020 — Forbes Best Employers for New Grads 2020 — Forbes Global 2000 — Forbes 2020, 2021 & 2022 Best Employers for Veterans 2020 and 2021— Forbes Top Veteran -Friendly Company — U.S. Veterans Magazine 1 Great Place to Work — Great Place to Work Institute (Brazil) 1 Great Place to Work in the Ag Business - Great Place to Work Institute (Brazil) Chile's 20 Best Places in 2020 to Work for LGBTQ Equality, pwc Human Rights Campaign Top of Mind Company "Industry category" (Piracicaba, Brazil) Certification on Promoting Work -Life Balance in Hyogo Prefecture — Hyogo Work and Life Center (Japan) Hyogo's Women's Success in Business Promotion Company — Hyogo Women Empowerment & Promotion Center (Japan) Hanada Award for WIN Akashi — Hyogo Women and Future Association (Japan) Hyogo Childcare Supporting Company Award (Japan) Science & Technology Industry Summit: Outstanding Contribution — The Economic Observer (China) 20 What percentage of your sales are to the The governmental and educational sector is extremely important to Caterpillar. We governmental sector in the past three years have a dedicated team to support governmental customers and their specific needs. However, percentage of sales to governmental is considered confidential. 21 What percentage of your sales are to the The governmental and educational sector is extremely important to Caterpillar. We education sector in the past three years have a dedicated team to support governmental customers, including the education sector, and their specific needs. However, percentage of sales to education is considered confidential. 22 List any state, provincial, or cooperative While Cat dealers would typically hold contracts with states and provinces, as an purchasing contracts that you hold. What is exception Caterpillar holds the state contract with Ohio and NY. the annual sales volume for each of these Additionally, we are contract holders with OMNIA and NASPO ValuePoint. contracts over the past three years? Just as we would never share Sourcewell sales information with other cooperatives, we also keep the sales volumes from other cooperatives confidential. Bid Number: RFP 011723 Vendor Name: Caterpillar Inc DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 23 List any GSA contracts or Standing Offers Listed below are the current GSA contracts that Caterpillar holds: and Supply Arrangements (SOSA) that you SIN 333924 Utility Trucks and Tractors: 2020=$6,857,211 2021=$14,071,364 hold. What is the annual sales volume for SIN 333120 Street Repair and Cleaning Equipment and Attachments: each of these contracts over the past three 2020=$0 / 2021=$143,837 years? SIN 335999 Power Distribution Equipment: 2020=$151,267.70 / 2021=$9,473.07 These contracts are used by Caterpillar, but we do not allow our dealers to use GSA contracts. Final sales for the vear 2022 have vet to be Table 4: References/Testimonials Line Item 24. Supply reference information from three customers who are eligible to be Sourcewell participating entities. Entity Name * Contact Name * Phone Number* Baltimore County, MD Jamie Donahue 410-952-6981 Washington DC Fleet Greg Harrelson 202-437-3799 Town of Scituate Mass. Kevin Cafferty 781-545-8732 Table 5: Top Five Government or Education Customers Line Item 25. Provide a list of your top five government, education, or non-profit customers (entity name is optional), including entity type, the state or province the entity is located in, scope of the project(s), size of transaction(s), and dollar volumes from the past three years. Entity Name Entity Type * State / * Province Scope of Work * Size of Transactions * Dollar Volume Past Three Years Virginia Government Virginia - VA State Department of Purchased 41 units. 12,321,972 Department of Transportation for Virginia. Transportation - Caterpillar requests that Central Sourcewell treat the information in this table as confidential. State of Idaho Government Idaho - ID State of Idaho. Purchased 39 units. 10,304,218 Caterpillar requests that Sourcewell treat the information in this table as confidential. Alaska Government Alaska - AK State Department of Purchased 37 units. 12,176,875 Department of Transportation for Alaska. Transportation Caterpillar requests that Sourcewell treat the information in this table as confidential. Arkansas State Government Arkansas - AR State of Arkansas. Purchased 28 units. 10,053,000 Caterpillar requests that Sourcewell treat the information in this table as confidential. Suwannee Government Florida - FL A county local to Florida. Purchased 26 units. 6,567,420 County Caterpillar requests that Sourcewell treat the information in this table as confidential. Table 6: Ability to Sell and Deliver Service Describe your company's capability to meet the needs of Sourcewell participating entities across the US and Canada, as applicable. Your response should address in detail at least the following areas: locations of your network of sales and service providers, the number of workers (full-time equivalents) involved in each sector, whether these workers are your direct employees (or employees of a third party), and any overlap between the sales and service functions. Line Question Response* Item Bid Number: RFP 011723 Vendor Name: Caterpillar Inc DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 26 Sales force. The Cat dealer salesforce is highly capable and trained in the construction industry. The Cat dealer salespeople are consultants to their customers and advise their customers on the best solutions for their application and job. As a manufacturer we request our dealers to follow strict training protocols to ensure our sales force remains current on all product updates. Specifically, as it relates to governmental sales, each dealer has one or more people named to be a key liaison between us as manufacturer and their dealer sales team. They're offered additional in depth traininq on Sourcewell and ensures that all contract terms are followed. 27 Dealer network or other distribution methods. Caterpillar has Operational Excellence Programs that recognize dealers' excellence in marketing and sales processes and operations, among other areas of the business. In North America, our dealers employ more than 53,000 people across the machine, energy, parts and service divisions. The dealer sales teams are supported by a network of Caterpillar professionals. Each dealer has in territory support of 5 to 8 Caterpillar sales/marketing employees. It is the responsibility of these people to ensure that the dealer and Caterpillar are working well together to constantly improve and to adapt to marketplace changes. Beyond the territory experts, the sales and marketing department at Caterpillar is staffed by more than 600 people whose mission is to focus on customer satisfaction. Even more are employed "behind -the scenes" to ensure industry leading product design, up to date product information, and maintaining the ease of doing business in an increasingly connected marketplace. The Cat dealer network is key to the success of our company. Boasting over 160 dealers throughout 193 countries worldwide, the Cat dealer network is widely considered to be the best in industry. Within Canada and the United States, we have 47 dealers and more than 800 dealer owned locations that sell and rent equipment. Please refer to our directory listing of Cat dealer locations and our easy to view locations map in the attached "Additional Documents" zip file. Cat dealers are independently -owned. Each dealer has multiple branches and a mobile service fleet than can serve customers regardless of location. These are full physical locations our governmental customers can use. Because of the size of Cat dealers, they are exceptionally capable to serve governmental customers. Dealers have trained specialists that cover many industries including heavy equipment. Collectively, Cat dealers' large net worth permits them to stock a high volume of replacement parts - allowing governmental customers the fastest turnaround on parts availability and repair time. Cat dealers recognize the importance of governmental business to their overall success and they each have one or more governmental specialists whose job it is to serve governmental agencies well. Please refer to the Cat dealer locations map included in "Additional Documents". Additionally, you can leverage https://www.cat.com/en_US/support/dealer- locator.html to locate dealers by location. Bid Number: RFP 011723 Vendor Name: Caterpillar Inc DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 28 Service force. At Caterpillar we are very proud of the saying "The sales department sells the first machine; the service department sells every one after that." The Cat dealer network in North America collectively employs more than 20,000 factory trained technicians, parts experts, product support managers and other service -oriented staff. These subject matter experts are supported by the best repair shop equipment and materials. As machines and engines are constantly updated, so too are our service experts. We conduct product -specific training every week of the year. Technician shortage is an industry -wide concern, but because Cat dealers are large, long established companies, they can offer strong compensation and benefit packages that encourage the best people to seek employment and to retain them once hired. Caterpillar works very closely with dealers and through a program called "ThinkBlG", we are able to keep the pipeline of high quality employees full. ThinkBlG is a Caterpillar -specific instructional program that pays the student while they train to become a technician. It is a 2-year program with lab and classroom work, and a paid internship at a sponsoring Cat Dealer. As a result, the student will graduate with an accredited degree backed with over 2,000 hours of work experience. In addition to the technicians and mechanics that work on the machines directly, each # dealer has a service support staff that includes customer -facing consultants who are responsible for working with customers to set up maintenance and repair schedules to ensure the best possible up -time. Collectively, service support staff makes up the bulk of each dealers' staff. Roughly half of their personnel investment goes to ensuring customer success via product support. 29 Describe the ordering process. If orders will be handled by distributors, dealers or others, explain the respective roles of the Proposer and others. The dealer service teams are supported by a network of Caterpillar professionals. Each dealer has in territory support of 5 to 8 Caterpillar parts/service employees. It is the responsibility of these specialists to ensure that the dealer and Caterpillar are working well together to constantly improve and to adapt to marketplace changes. Beyond the territory experts, the service and support groups at Caterpillar are staffed by thousands of people whose mission is to focus on post -sale customer satisfaction. Even more are employed "behind -the -scenes" to ensure technical literature is up to date, service standards are adhere to and repair questions are answered quickly. We exceed our 95% 2-hour response rate target in responding to dealer service inquiries. Our simple order process has been and will continue to be well appreciated by Sourcewell and Sourcewell members: 1) When a member decides to purchase a new Cat machine, they simply include their Sourcewell member number on the Purchase Order they issue to the Cat dealer. 2) The Cat dealer then accepts the PO, issues the invoice, accepts payment and delivers the machine. 3) After the machine has been delivered, the dealer, as part of their normal process, includes the member number when filing their sales claims with Caterpillar. 4) At month's end, Caterpillar aggregates these reports and sends the sales information quarterly to Sourcewell along with the administrative fee. IMPORTANT NOTE: Should a member wish to include additional terms and conditions to this contract, or to otherwise request a Participating Addendum, that agreement / PA should be executed between the member and Cat dealer directly. Bid Number: RFP 011723 Vendor Name: Caterpillar Inc DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 30 Describe in detail the process and procedure of your customer service program, if applicable. Include your response -time capabilities and commitments, as well as any incentives that help your providers meet your stated service goals or promises. Ca Describe your ability and willingness to provide your products and services to Sourcewell participating entities in the United States. We are proud that our reputation stands on having the best customer support in the industry. In fact, our capabilities are industry leading. In the event a customer ever has a problem or issue with a machine, their Cat dealer is empowered to resolve that issue locally. If the problem is a result of a defect in material or workmanship, within the standard warranty period, the local Cat dealer will work with Caterpillar to apply the appropriate warranty, and keep the customer informed. Every Cat dealer has a common detailed service process in place. Caterpillar supports and verifies that all the dealer service technicians are supplied with the tools and equipment needed to repair all Cat products. Technicians have access to an electronic library of technical information including Service Letters, Technical Information Bulletins, System Operations, Troubleshooting and Disassembly and Assembly manuals. These manuals are provided for every Cat product. Each dealer also has one or more "Technical Communicators" who are dedicated to supporting the service technicians by acting as a liaison between the shop personnel and Caterpillar. The service technicians also have a dealer support network (DSN) system with direct access to Caterpillar's Service Engineers. Caterpillar responds to more than 95% of all high priority tickets within one hour. Caterpillar is got everything customers need to keep their Cat machines in top shape. Whether they want Genuine Cat parts, manuals and resources to do maintenance and repairs themselves, or prefer to have one of our expert dealer technicians do the work. We make it easy to keep their Cat equipment running. Some of our service solutions include: Cat Fleet Management (Condition Monitoring) - Lowers the total cost of ownership of machine. By connecting your fleet, you will be able to: track the location of your assets, monitor & manage the fuel consumption, identify the operators who would need extra training, and plan & schedule your maintenance. All of which will maximize your uptime. Customer Value Agreements (CVA) - Customizable plans for your equipment new or used - to do more work with lower, more predictable costs. It's a convenient plan to get the most from your equipment throughout its life. Examples of CVAs may include but are not limited to: Maintenance CVAs, Component CVAs, and Machine CVAs. S SM Services - A fluid analysis program that provides results that you can including trend analysis that provides benefit to your machine and fleet. Cat Inspect - A digital way to perform checklists, pre -work inspections, annual inspections and PM checklists. All of which can be captured in the easy to use app. We are proud to serve all geographic areas and all Sourcewell member sectors within the United States to offer our complete products and services. Caterpillar has successfully and proudly utilized Sourcewell to sell machines in all 50 states. Caterpillar's global reach and presence is unmatched in the industry, and we serve customers around the globe. Our manufacturing, marketing, logistics, services, research and development and related facilities, along with our dealer locations, total more than 500 locations worldwide. North America specifically is home to 47 factories and 10 parts distribution centers, which make up 40% of our global footprint! The Caterpillar parts network delivers 98% of the parts orders within 24 hours. In addition to our facilities listed above, Cat Parts are available through the Cat dealer network in at different price points, including: Cat New, Cat General Duty and Cat Reman. The Cat dealer network also have the capability to provide dealer exchange components, dealer rebuilt components and used parts when available. Each dealer can match the appropriate parts offering to match the customers application and productivity. For example, Cat dealers offer Cat factory remanufactured parts (Cat reman) to follow the same quality, performance, and reliability as Cat new parts. This product line provides the same as new parts warranty, includes critical engineering changes, reduces waste, and protects the environment and saves critical repair time on machines. Cat reman also uses 100% Cat parts in the remanufacture process. Our 1.4 million parts are available to order 24/7 on Parts.Cat.Com. Bid Number: RFP 011723 Vendor Name: Caterpillar Inc DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 32 Describe your ability and willingness to We are serve all geographic areas and all Canoe member sectors within Canada provide your products and services to with our complete product and service offerings. In fact, we see the Sourcewell participating entities in Canada. Canadian market as a significant growth opportunity for Canoe through Sourcewell contract usage. We have gained momentum with our current contract 032119-CAT in Canada. Caterpillar's global reach and presence is unmatched in the industry, and we serve customers around the globe. Our manufacturing, marketing, logistics, services, research and development and related facilities, along with our dealer locations, total more than 500 locations worldwide. North America specifically is home to 47 factories and 10 parts distribution centers, which make up 40% of our global footprint! The Caterpillar parts network delivers 98% of the parts orders within 24 hours. In addition to our facilities listed above, Cat Parts are available through the Cat dealer network in at different price points, including: Cat New, Cat General Duty and Cat Reman. The Cat dealer network also have the capability to provide dealer exchange components, dealer rebuilt components and used parts when available. Each dealer can match the appropriate parts offering to match the customers application and productivity. For example, Cat® dealers offer Cat® factory remanufactured parts (Cat reman) to follow the same quality, performance, and reliability as Cat new parts. This product line provides the same as new parts warranty, includes critical engineering changes, reduces waste, and protects the environment and saves critical repair time on machines. Cat reman also uses 100% Cat parts in the remanufacture process. Our 1.4 million parts are available to order 2417 on Parts.Cat.Com. 33 Identify any geographic areas of the United We are proud to serve all geographic areas of the United States and Canada. States or Canada that you will NOT be fully serving through the proposed contract. 34 Identify any Sourcewell participating entity We are proud to serve all Sourcewell Member sectors within the United States and sectors (i.e., government, education, not -for- Canada with our complete product and service offering through Sourcewell. profit) that you will NOT be fully serving through the proposed contract. Explain in Caterpillar's cooperative purchasing contracts are non-exclusive; i.e. none of them detail. For example, does your company restrict Caterpillar from promoting our Sourcewell contracts. have only a regional presence, or do other cooperative purchasing contracts limit your ability to promote another contract? 35 Define any specific contract requirements There are no restrictions or limitations for sales to members in Hawaii, Alaska or or restrictions that would apply to our U.S. Territories. participating entities in Hawaii and Alaska and in US Territories. Bid Number: RFP 011723 Vendor Name: Caterpillar Inc DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Table 7: Marketing Plan Line Item Question Response* 36 Describe your marketing strategy for Our current marketing strategy with Sourcewell contract 032119-CAT proves to be effective promoting this contract opportunity. with year over year sales growth. Our primary strategy to promote this contract with Upload representative samples of your participating entities is through our Cat dealers' sales force. We provide group and marketing materials (if applicable) in individual training to our dealer sales reps, focusing on benefits from selling through the document upload section of your cooperative contracts vs bids. We proudly announce the award publicly through our response. multiple customer facing touchpoints which may include: 1) Press Release 2) Government Solutions Magazine (Caterpillar produced magazine distributed to governmental customers in the US and Canada) 3) Government Training & Safety Days (Government customer training events at Caterpillar facilities) 4) Announcement in our governmental customer e-newsletter 5) Feature on our governmental focused website: www.cat.com/governmental 6) Announcement on our social media channels (FB, Instagram, Linkedln) 7) Display mentions at all governmental tradeshows we attend. (NACE Annual Conference, APWA Snow Show, Waste EXPO, GFX, NIGP Annual Forum & Products Expo, and APWA PWX & Annual Roadeo) 8) Update literature with the new contact information. (An updated version can be found within our attached marketing plan attachment.) 37 Describe your use of technology and Caterpillar and the Cat dealer network are leaders in using technologies to digital data (e.g., social media, reach our customers. metadata usage) to enhance marketing effectiveness. Focus on organic search and Search Engine Optimization (SEO) to help our customers digitally find our products and the information they need. Leverage Caterpillar's social media platforms (YouTube, Facebook, Linkedln, Instagram, etc) and ability to target governmental segments. Leverage predictive data analytics (past purchase history and financing information) to recognize in advance when customers may be considering replacing machines they currently own. Leverage Deltek's GovWIN data in the US and Canada for governmental lead generation. Caterpillar has a Customer Interaction Center available 24/7 who handles digital leads received from cat.com, social media, etc. Our team qualifies those leads and passes them on to our Cat Dealer network using the Salesforce platform (Customer Relationship Management system). We have processes that allows us to confirm our Cat dealers have reached out to those customers. 38 In your view, what is Sourcewell's role Sourcewell is a well -respected contracting agency within the public procurement industry. It in promoting contracts arising out of is important, in the event of an award, that our products and logos be included in this RFP? How will you integrate a Sourcewell marketing and website. We believe that the most important role that Sourcewell Sourcewell-awarded contract into your can play in marketing our contract and products, is to market themselves and promote sales process? contract purchasing across the industry. In the event of an award, Caterpillar will put high priority in building awareness and enthusiasm within our dealer network and customer base to leverage the Sourcewell contract as our go to market strategy. 39 Are your products or services We do offer a e-procurement ordering process for parts via parts.cat.com. We can also available through an e-procurement integrate into a variety of procurement systems for high volume customers. ordering process? If so, describe your e-procurement system and how Our wide machine portfolio and multiple configurations per machine model allows us to governmental and educational provide the best machine for the customer need. Our Cat dealers are trained to configure customers have used it. our equipment and advise the customer on the best machine and configuration for their application. Therefore, a consultative salesperson is integral in this process, and we do not use an e-procurement machine ordering process. Table 8: Value -Added Attributes Line Question Response* Item Bid Number: RFP 011723 Vendor Name: Caterpillar Inc DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Describe any product, equipment, maintenance, or operator training programs that you offer to Sourcewell participating entities. Include details, such as whether training is standard or optional, who provides training, and any costs that apply. All dealers offer basic operation, safety, and maintenance training with every sale. Should a customer desire more advanced training, such as productivity improvement or advanced repairs, each of our dealers can supply that training. Often there is a cost associated with that specific training and it would be negotiated between the dealer and the customer. Caterpillar also offers training programs directly to customers in three areas: operation, safety and service. Members may access courses online, via CD's, or through instructor -led classes leading to operator certifications. The fees for these services vary depending on the depth of training desired. These high-level instruct -led courses can be conducted at one of our dedicated training facilities in the US or on a customer's local site using their own equipment. Caterpillar also has a licensed supplier that offers Cat Simulators to teach operational techniques from real job sites. For more information visit: https://catsimulators.com/ Bid Number: RFP 011723 Vendor Name: Caterpillar Inc DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Describe any technological advances that your proposed products or services offer. Cat technology gives you the power to track, monitor, automate and manage all types of assets- from a single machine, engine, to an entire fleet. We even offer technologies that protect your people. Listed below are a few technology offerings (standard and optional) that are used throughout the world in our Cat equipment. Next Generation Excavators: Cat Vision Link - Delivering valuable data with connected machine. Cat Payload - Precisely load targets every time for faster cycle times. Cat Skid Steer and Compact Track Loaders: Electronic Torque Management System - Helps maximize performance, minimize fuel consumption. Sealed and Pressurized Cabs - Provides a cleaner, quieter work environment. Cat Backhoe Loaders: Selectable Power Management Modes - Saves fuel while maintaining machine performance. Load -Sensing Hydraulic System - Provides excellent response for improved hoe and loader productivity and greater bucket breakout force. Cat Tractors: Stable Blade - Produces a smoother surface finish. Autocarry - Automatic raising and lowering of blade to maximize pushing capacity and prevent excessive track slippage. Cat Wheel Loaders: Operator Assist - Helps the operator reduce tire slippage, automatic rimpull management and provides up to 10% better cycle time resulting in higher productivity. Autodig - consistent high bucket fill factors delivers up to 10% more productivity. Cat Off Highway Trucks: Adaptive Economy Mode - Automatically optimizes fuel consumption without affecting productivity just pressing a button. Truck Production Management System (TPMS) - Weighting system with side indicator lights showing the operator when they are on last pass and when the truck is fully loaded. Cat Articulated Trucks: Advanced Automatic Traction Control (AATC) - Technology that proactively applies inter- and cross -axle differential locks 'on -the -go' when needed without assistance from operator's interaction. Cat Detect with Stability Assist - Warns the operator if machine is approaching a pre-set angle during operation, when driving and tipping. Machine/Operator Safety Technology: Machine Security System - Gives you control over who can operate your machines and when. Prevents theft. Seat Belt Reminder - Cost effective safety upgrade that significantly improves operator safety. Cat Detect for Personnel - Alert ground crews in close proximity to mobile equipment. Cat® Detect for Personnel sounds an immediate, unique alert that cuts through the white noise of engines, generators, cell phones and job site chatter to protect ground workers from equipment backing incidents. Cat Command - Remote control in operations where an operator could be at safety risk. Whether you're looking to add technology to your current machine, or want new ways to get more value out of the technology on your equipment, we have options for you. Bid Number: RFP 011723 Vendor Name: Caterpillar Inc DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Describe any "green" initiatives that relate to your company or to your products or services, and include a list of the certifying agency for each. 43 Identify any third -party issued eco- labels, ratings or certifications that your company has received for the equipment or products included in your Proposal related to energy efficiency or conservation, life -cycle design cradle -to -cradle), or other green/sustainability factors. Caterpillar shares the concerns of governments and the public about the risks of climate change and supports global efforts to mitigate its impact. We are committed to contributing to a reduced -carbon future. We demonstrate this in many ways including through our significant progress in reducing greenhouse gas (GHG) emissions from our operations and our continued investment in new products, technologies and services. Caterpillar is engineering a brighter future through: Product innovations Advanced technologies leveraging know-how and R&D Usage of renewable fuels and fluids Solutions to improve jobsite efficiency Maintenance solutions Manufacturing operations' carbon efficiency Caterpillar's long-standing commitment to sustainability inspires us to set and achieve meaningful environmental, social and governance (ESG) goals and develop innovative products, technologies and services to support our customers on their sustainability journey Caterpillar is fully committed to our customers' success by not only the design and manufacture of durable, reliable, innovative and rebuildable construction equipment, but also through our extensive and unmatched dealer network that provides you the best service and support to keep your equipment running, regardless of the environment or challenges. We consider this as we work toward a vision of a world in which people's basic needs - such as shelter, clean water, education, and reliable energy - are fulfilled. We provide work environments, products, services, and solutions that make productive and efficient use of resources as we strive to achieve our vision. We believe this commitment supports the enduring success of our customers, stockholders, dealers, and our people. Caterpillar is a proud 20-year member of the Dow Jones Sustainability Indices, including both the World and North America Indices. The annuals DJSI process follows a best -in -class approach, evaluating numerous corporate economic, environmental, and social performance factors. For more on sustainability please visit our full report attached in the Financial and Stability attachment section. Plants certified with [DO 14001:2004 Environmental Management System include: 1) Anchor Coupling - Goldsboro NC, ISO 14001:2004- Sept 2018 2) Anchor Coupling - Menominee - ISO 14001: 2015 - Jan. 2021 3) Gen Sets - Newberry 0 ISO 14001:2004 - Nov. 2017 4) Mapleton - 14001:2004 self -certification issued Jan 2013 5) Reman Services - Corinth MS - ISO 14001-2015- Sept. 2021 6) Reman Services - Franklin - ISO 14001:2004-May 2017 Bid Number: RFP 011723 Vendor Name: Caterpillar Inc DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Describe any Women or Minority Business Entity (WMBE), Small Business Entity (SBE), or veteran owned business certifications that your company or hub partners have obtained. Upload documentation of certification (as applicable) in the document upload section of your response. Caterpillar has long drawn on the diversity of its people as a source of innovation and competitive advantage. We are proud that our people come from across the globe, with diverse backgrounds, experiences and perspectives. Despite our differences — in geography, culture, language and business — we are one Caterpillar, one company united by these common principles with a shared commitment to the highest standards of conduct. For example: Foley Equipment, a Cat® dealer, with territory primarily in Kansas and Missouri, is woman owned. In addition to Foley equipment, there are 31 other women in our North American dealer network who hold the titles of President, Vice President or Director. One of the more recognized initiatives within Caterpillar's Global Supply Network Division is the Caterpillar Inc. Proprietary Information Supplier Diversity Program which spurs economic growth by increasing business opportunities to minority -owned, women -owned, veteran and service disabled veteran -owned, small disadvantaged businesses and those certified in HUBZones, all while ensuring expectations are met with regards to quality, velocity, capacity, and cost. Currently more than 37% of our direct and indirect purchasing is conducted with suppliers in these categories. Caterpillar is a proud member of the National Minority Supplier Development Council NMSDC). We also use the System for Aware Management (SAM), SBA, and NMSDC databases to locate SDB, VOSB, SDVOSB and HUBZone suppliers. Supplier Diversity is discussed with Global Supply Network Division leadership during the Monthly Operating Results Review meetings. This in turn forces accountability for supplier inclusion by measuring drivers, such as the number of sourcing projects, which include Divers Suppliers and the values of the projects in which they participate. The goal is to create greater transparency to determine which teams are creating inclusive environments and which are not. For more detail, please see our attached 2021 Global Diversity & Inclusion Report in the Additional Documents folder. Bid Number: RFP 011723 Vendor Name: Caterpillar Inc DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 45 What unique attributes does your BEST OVERALL VALUE / LOWEST LIFE CYCLE COST: company, your products, or your Cat products deliver the best value for the money. While we rarely have the lowest initial services offer to Sourcewell purchase price, we are happy to demonstrate to customers that our machines offer the participating entities? What makes lowest overall owning and operating costs when factors such as fuel efficiency, repair your proposed solutions unique in frequency, productivity, and resale value are factored in. We believe that government your industry as it applies to agencies are tasked to be the best stewards of taxpayer funds and our products can prove Sourcewell participating entities? that they are the best solution. Sourcewell members are in the best position to allow these discussions to take place in contrast to a local bid situation where the focus is often only on initial price. CAT SAFETY SERVICES / SAFETY FEATURES: In addition to the tangible, measurable aspects of the life cycle cost equation, we also bring our focus on safety to every product that we manufacture. Quantifying a human life or debilitating injury is impossible, but each machine has industry -leading features that strive to minimize the possibility for accidents. In addition to built-in safety features, we also offer products and services that are unique in the industry. Cat Safety Services include, but are not limited to, the following: Safety Perception Survey - Used to establish a baseline safety -culture assessment by measuring employee perceptions and gaps in beliefs between management and employees on the front line across 20 Safety Culture Indicators. Safety Leadership Assessment - Used to measure individual safety leadership capability around four domains of safety leadership. Worksite Assessment - Compares onsite observations of safety practices and employee interview data to the documented processes and procedures. Continuous Improvement Process - Involving all levels of the organization to generate engagement, involvement, and ownership in the safety improvement process. Training - can be conducted with e-learning courses on http://safelyhome.cat.com, instructor - led training products or as Supplier -facilitated workshops. Topics available include, but are not limited to, safety culture, effective communication, supervisor safety training, recognition, etc. Fleet Management & Services through Caterpillar Job Site Solutions: We leverage the power of Caterpillar and our dealers by designing innovative solutions that solve customer problems and that have a positive impact on their bottom line. We approach each site differently, striving to deliver exactly what's needed — no more, no less. Every solution includes a unique mix of Caterpillar and dealer capabilities using industry best products, technology, services and expertise necessary to meet the customer's definition of success. The goal is to leave customers better off tomorrow than they are today. Details on products and services are available at www.cat.com/safety. More information can be found in the additional document section. Pricing can be found in the pricing document Bid Number: RFP 011723 Vendor Name: Caterpillar Inc DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Table 9: Warranty Describe in detail your manufacturer warranty program, including conditions and requirements to qualify, claims procedure, and overall structure. You may upload representative samples of your warranty materials (if applicable) in the document upload section of your response in addition to responding to the questions below. Line Item Question Response 46 Do your warranties cover all products, parts, and Caterpillar has extensive warranty coverage. Please see our warranty labor? statements attached in the warranty information documents. 47 Do your warranties impose usage restrictions or Please see applicable warranty statements in the attached documents. other limitations that adversely affect coverage? 48 Do your warranties cover the expense of Caterpillar does not cover travel time and mileage. Dealer territories vary technicians' travel time and mileage to perform considerably from state to state as do their policies about travel time and warranty repairs? mileage during the warranty period. 49 Are there any geographic regions of the United One of our key differentiating strengths is our ability to service equipment States or Canada (as applicable) for which you regardless of where it is located. Please see applicable warranty statements cannot provide a certified technician to perform in the attached documents. warranty repairs? How will Sourcewell participating entities in these regions be provided service for warranty repair? 50 Will you cover warranty service for items made by Warranty service for machines ordered from a Caterpillar facility are other manufacturers that are part of your proposal, generally provided by Caterpillar and performed by Cat dealers. Some or are these warranties issues typically passed on items, such as tires, are covered under their manufacturers' warranties. Ito the original equipment manufacturer? 51 What are your proposed exchange and return Please see applicable warranty statements in the attached documents. programs and policies? 52 Describe any service contract options for the We have a large variety of service contract options which can all be items included in your proposal, customized according to customer needs. Below are just two examples. More solutions are available and we encourage members and dealers to explore all options. 1) Equipment Protection Plans (EPP): After the initial warranty period ends, members may choose to purchase additional protection plans to reduce their exposure to unplanned costs. These policies are written based on months and hours of operation. There are four standard levels of coverage: 1) Powertrain 2) Powertrain + Hydraulics 3) Powertrain + Hydraulics + Technology 4) Premier A description of all these options is included in the attached Equipment Protection Plans document. EPP can be purchased at the same time as the machine purchase, or anytime before the standard warranty expires. 2) Customer Value Agreements (CVA's): A member may choose to enter into an agreement with their Cat dealer to perform routine maintenance and/or repairs. These contracts are customizable based on member needs. The selling Cat dealer can take responsibility for some or all the required service and maintenance needs to allow the agency to gain efficiency by focusing on the performance demands more than maintenance. CVA's are a useful tool to manage expenses. CVAs can be purchased at the same time as the machine purchase, or anytime after. Cat Financial also offers CVAs, which can be performed by Cat dealers in the United States, and are particularly helpful for customers who move their machine fleet to multiple locations which may have different servicing Cat dealers. Bid Number: RFP 011723 Vendor Name: Caterpillar Inc DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Table 10: Payment Terms and Financing Options Line Item Question Response* 53 Describe your payment terms and accepted payment Cat dealers are independently owned businesses. As such their methods. payment terms and accepted payment methods vary, but all will be stated on individual invoices. The most common terms are net 30. 54 Describe any leasing or financing options available for use We offer both leasing and financing options to governmental by educational or governmental entities. members of Sourcewell at rates lower than available to the general public. Caterpillar has its own financing arm, Cat Financial. Cat Financial was founded in 1981 and serves Cat customers and dealers. With over 1,900 employees, Cat Financial is active in more than 40 countries covering more than 148,000 customers worldwide. Cat Financial offers you a complete solution for your acquisition needs: Equipment & Attachments Parts Service Rebuilds Financial products are aligned and customized with the project and work site requirements such as operating lease, loan or finance lease. Find more information from Cat Financial here: https://www.cat.com/en_US/support/financing-protection.htmi 55 Describe any standard transaction documents that you Cat dealers are independently owned businesses. As such their propose to use in connection with an awarded contract standard transaction documents will vary. order forms, terms and conditions, service level agreements, etc.). Upload a sample of each (as applicable) in the document upload section of your response. 56 Do you accept the P-card procurement and payment Because Cat dealers will be receiving payments directly from process? If so, is there any additional cost to Sourcewell members, accepting P-card procurement will be at their discretion. participating entities for using this process? Many dealers do accept this method without additional fees. Some have limitations on the amount that can be processed. Bid Number: RFP 011723 Vendor Name: Caterpillar Inc DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Table 11: Pricing and Delivery Provide detailed pricing information in the questions that follow below. Keep in mind that reasonable price and product adjustments can be made during the term of an awarded Contract as described in the RFP, the template Contract, and the Sourcewell Price and Product Change Request Form. Line Item question Response* 57 Describe your pricing model (e.g., line -item discounts or We offer a deep list discount off the current Caterpillar machine product -category discounts). Provide detailed pricing data and work tool list prices to all Sourcewell members. We have including standard or list pricing and the Sourcewell provided base machine list pricing in the document pricing section. discounted price) on all of the items that you want Base machines must be properly configured with other mandatory Sourcewell to consider as part of your RFP response. If and optional items from the price list before they are considered applicable, provide a SKU for each item in your proposal. operational. For the execution of the agreement we will ask our Cat Upload your pricing materials (if applicable) in the dealer and Sourcewell member to use the Caterpillar price list that document upload section of your response. is current at the time of the quote. Dealers, in consultation with the member, will configure the machine to the desired specifications and apply the stated list discount to that configured list price amount. Dealer and members should remember to factor in any expected price increases if a machine will be built to order. The pricing document, in the applicable pricing document attachment section, shows the list discount offered for each new machine. Additionally, we are pleased to offer a list discount of 15% off all products and consulting services under Cat Safety Services. 58 Quantify the pricing discount represented by the pricing Pricing in this proposal is a percentage discount from list on proposal in this response. For example, if the pricing in current machine and work tools list prices. Our discount range your response represents a percentage discount from varies between 3 - 34% off of the list price depending on the MSRP or list, state the percentage or percentage range. product family or model. 59 Describe any quantity or volume discounts or rebate Our dealers are empowered to consider purchase order volume, programs that you offer. repeat purchases, etc. They may offer members additional discounts and /or services at their discretion. 60 Propose a method of facilitating "sourced" products or Sourced goods / Open Market Items are available to members from related services, which may be referred to as "open Cat dealers. The prices for these good or services will represent market" items or "nonstandard options". For example, you fair marketing value and will be determined between the member may supply such items "at cost" or "at cost plus a and the selling dealer. We encourage our dealers and members to percentage," or you may supply a quote for each such use these options as it facilitates complimentary products and request. streamlines the procurement process. Customers and dealers are responsible for including their Sourcewell member numbers on all documentation related to these purchases. Caterpillar Inc. is not a party to these sales and is exempted from including them in quarterly reports. For audits, inclusion of a customer's Sourcewell member number on the PO and /or invoice shall be deemed sufficient. 61 Identify any element of the total cost of acquisition that is Machines are unique in their requirements for preparation prior to NOT included in the pricing submitted with your response. use. Some may require local final assembly due to their large size This includes all additional charges associated with a others may have locally installed options (fire suppression, beacons, purchase that are not directly identified as freight or auto lube systems for example). When a dealer issues a quote for shipping charges. For example, list costs for items like pre- a machine, any dealer costs (like pre -delivery inspection, installation, delivery inspection, installation, set up, mandatory training, set up, training, etc.) will be itemized separately and are not subject or initial inspection. Identify any parties that impose such to the Caterpillar list discount for Sourcewell members. costs and their relationship to the Proposer. 62 If freight, delivery, or shipping is an additional cost to the There is no additional cost to members who choose to pick up Sourcewell participating entity, describe in detail the their machines from the Cat dealer. Dealers may charge fees for complete freight, shipping, and delivery program. delivery to the Sourcewell member's location. 63 Specifically describe freight, shipping, and delivery terms or Just as for members in the 48 contiguous states, there is no programs available for Alaska, Hawaii, Canada, or any additional cost to members who choose to pick up their machine offshore delivery. from their Cat dealer. Dealers may charge fees for delivery to the Sourcewell members' location. 64 Describe any unique distribution and/or delivery methods or Machines are large purchases and if there are unique Sourcewell options offered in your proposal. member requirements our dealers will be happy to discuss on a case by case basis. Bid Number: RFP 011723 Vendor Name: Caterpillar Inc DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Table 12: Pricing Offered Line Item The Pricing Offered in this Proposal is: * Comments 65 b. the same as the Proposer typically offers to GPOs, cooperative procurement organizations, or state purchasing Caterpillar wants to provide departments. the governmental customer the best list discount possible to allow them to be good stewards of tax -payers funds. We want our governmental customers to have the ability to choose which cooperative contract better fits their needs. Table 13: Audit and Administrative Fee Line Item Question Response* 66 Specifically describe any self -audit process or program that you We plan to continue our very robust process to ensure plan to employ to verify compliance with your proposed Contract reporting speed, accuracy, and contract compliance. with Sourcewell. This process includes ensuring that Sourcewell Caterpillar and our Cat dealers have very close and trusting participating entities obtain the proper pricing, that the Vendor relationships. Our dealers are long-established, and the reports all sales under the Contract each quarter, and that the current process (under contract #032119-CAT) is working well. Vendor remits the proper administrative fee to Sourcewell. Provide 1) To ensure pricing accuracy, we maintain our current sufficient detail to support your ability to report quarterly sales to Sourcewell customer discount sheet on our dealer facing Sourcewell as described in the Contract template. pricing pages. Dealers integrate these numbers automatically in their quoting software. 2) To ensure new machines and work tool sales are recorded properly, we use our post -sale credit system. In a nutshell, this means that we corporately support the pricing offered in this contract at a level below what's available to other customers. To receive this additional monetary support after the machine is delivered, dealers must supply the member's name, address, and member number. There is no additional burden or cost to our dealers to use the Sourcewell contract and this is part of the reason for their high engagement and our high reporting accuracy. 3) At month end, we gather the new machine and work tool sales data attributed to Sourcewell and aggregate it for our reporting. 4) After quarter end, we will send the quarterly sales report and administration fee payment to Sourcewell for all items that are subject to the administrative fee. 67 If you are awarded a contract, provide a few examples of internal We regularly track the % of sales that are sold using a metrics that will be tracked to measure whether you are having cooperative contract. We will continue this practice if we are success with the contract. awarded a contract for RFP 011723. 68 Identify a proposed administrative fee that you will pay to Per amendment #1 to Contract #032119-CAT, we will be Sourcewell for facilitating, managing, and promoting the Sourcewell pleased to offer an administrative fee of 0.33% of Contract in the event that you are awarded a Contract. This fee Caterpillars list price for each piece of new equipment and is typically calculated as a percentage of Vendors sales under the serialized work Contract or as a per -unit fee; it is not a line -item addition to the tools purchased by Sourcewell's Participating Entities. Member's cost of goods. (See the RFP and template Contract for Caterpillar will pay this fee and will not ask dealers or additional details.) members to pay the fee. Bid Number: RFP 011723 Vendor Name: Caterpillar Inc DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Table 14A: Depth and Breadth of Offered Equipment Products and Services tm Question Response* 69 Provide a detailed description of the The Cat equipment product line, consisting of more than 300 machines, sets the equipment, products, and services that you standard for our industry. We plan to help you meet your needs with our equipment, are offering in your proposal. with our distribution and product support system, and the continual introduction and updating of products. Caterpillar is pleased to offer a wide variety of products for Sourcewell members. Excluding paving products, equipment and services awarded on 060122-CAT these include: Cat Backhoe Loaders (9 models offered) Cat Compact Track Loader/Skid Steer Loader (14 models offered) Cat Track/Wheel Hydraulic Excavators (41 models offered) Cat Motor Graders (7 models offered) Cat Telehandlers (8 models offered) Cat Track Loaders (3 models offered) Cat Track/Wheel Dozers (15 models offered) Cat Wheel Loaders (19 models offered) Cat Wheel Tractor Scrapers (7 models offered) Cat Articulated Trucks (5 models offered) Cat Rigid Frame Trucks (2 models offered) Cat Material Handlers (3 models offered) Cat Landfill Compactors (3 models offered) Product offerings by model and discount can be found in the pricing attachment within the applicable proposal pricing section. Services and support include: Cat Attachments (Worktools) Cat Technology Cat Safety Services Cat Job Site Solutions Product offerings by model and discount can be found in the pricing attachment within the applicable proposal pricing section. Services and support brochures can be found in the additional documents section by name of offering. For more detailed information on each of these products/offerings see the following website: https:/Aivww.cat.com/en—US.html 70 Within this RFP category there may be N/A subcategories of solutions. List subcategory titles that best describe your products and services. Bid Number: RFP 011723 Vendor Name: Caterpillar Inc DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Table 148: Depth and 8readth of Offered Equipment Products and Services Indicate below if the listed types or classes of equipment, products, and services are offered within your proposal. Provide additional comments in the text box provided, as necessary. Line Item Categorl or Tlpe Offered Comments 71 Wheeled, tracked, and backhoe loaders r Yes Manufactured by Caterpillar. Offerings No listed in applicable pricing attachment section. 7 Motor Graders r Yes Manufactured by Caterpillar. Offerings No listed in applicable pricing attachment section. 73 Wheeled and tracked excavators r Yes Manufactured by Caterpillar. Offerings r No listed in applicable pricing attachment section. 74 Bulldozers, compactors, scapers, articulated and r Yes Manufactured by Caterpillar. Offerings rigid haulers r No listed in applicable pricing attachment section. 75 Cranes r Yes NIA G. No 76 Accessories or attachments for the offering in #71- r Yes Manufactured by Caterpillar. Offerings 75 above r No listed in applicable pricing attachment section. 77 Technology or services for the offering in #71-75 Yes Manufactured or offered by Caterpillar. above r No Offerings listed in applicable pricing attachment section. Table 14C: Required Offering of Equipment Indicate below if the proposer's proposal includes at least one (1) of the following listed types or classes of equipment. Provide additional comments in the text box provided, as necessary. Line Item Categorl or Rpe Offered Comments 78 Wheel loader with published net horsepower (HP) r Yes Manufactured by Caterpillar. Offerings of at least 300 HP r No listed in applicable pricing attachment section. 79 Wheeled or tracked excavator with a published net r Yes Manufactured by Caterpillar. Offerings horsepower (HP) of at least 150 HP r No listed in applicable pricing attachment section. 80 Motor Grader with a published maximum operating r Yes Manufactured by Caterpillar. Offerings weight of at least 30,000 lbs. r No listed in applicable pricing attachment section. 81 Rough terrain, all terrain, crawler, floating, lattice, or r Yes NIA telescopic crane with a published maximum lifting r No capacity of at least 300 tons and a published maximum boom length of at least 150 feet Exceptions to Terms, Conditions, or Specifications Form Only those Proposer Exceptions to Terms, Conditions, or Specifications that have been accepted by Sourcewell have been incorporated into the contract text. Bid Number: RFP 011723 Vendor Name: Caterpillar Inc DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Documents Ensure your submission documents) conforms to the following: 1. Documents in PDF format are preferred. Documents in Word, Excel, or compatible formats may also be provided. 2. Documents should NOT have a security password, as Sourcewell may not be able to open the file. It is your sole responsibility to ensure that the uploaded document(s) are not either defective, corrupted or blank and that the documents can be opened and viewed by Sourcewell. 3. Sourcewell may reject any response where any document(s) cannot be opened and viewed by Sourcewell. 4. If you need to upload more than one (1) document for a single item, you should combine the documents into one zipped file. If the zipped file contains more than one (1) document, ensure each document is named, in relation to the submission format item responding to. For example, if responding to the Marketing Plan category save the document as "Marketing Plan." Pricing - Machine Pricing.zip - Tuesday January 17, 2023 15:29:45 Financial Strength and Stability - Fin Strength and Stability.zip - Tuesday January 17, 2023 10:31:16 Marketing PlanlSamples - Marketing Plan.pdf - Tuesday January 17, 2023 14:53:49 WMBEIMBEISBE or Related Certificates (optional) Warranty Information - Warranty Combined.pdf - Monday January 16, 2023 10:36:31 Standard Transaction Document Samples (optional) Upload Additional Document - Additional Documents.zip - Tuesday January 17, 2023 16:05:29 Bid Number: RFP 011723 Vendor Name: Caterpillar Inc DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 Addenda, Terms and Conditions PROPOSER AFFIDAVIT AND ASSURANCE OF COMPLIANCE I certify that I am the authorized representative of the Proposer submitting the foregoing Proposal with the legal authority to bind the Proposer to this Affidavit and Assurance of Compliance: 1. The Proposer is submitting this Proposal under its full and complete legal name, and the Proposer legally exists in good standing in the jurisdiction of its residence. 2. The Proposer warrants that the information provided in this Proposal is true, correct, and reliable for purposes of evaluation for contract award. The Proposer, including any person assisting with the creation of this Proposal, has arrived at this Proposal independently and the Proposal has been created without colluding with any other person, company, or parties that have or will submit a proposal under this solicitation; and the Proposal has in all respects been created fairly without any fraud or dishonesty. The Proposer has not directly or indirectly entered into any agreement or arrangement with any person or business in an effort to influence any part of this solicitation or operations of a resulting contract; and the Proposer has not taken any action in restraint of free trade or competitiveness in connection with this solicitation. Additionally, if Proposer has worked with a consultant on the Proposal, the consultant (an individual or a company) has not assisted any other entity that has submitted or will submit a proposal for this solicitation. 4. To the best of its knowledge and belief, and except as otherwise disclosed in the Proposal, there are no relevant facts or circumstances which could give rise to an organizational conflict of interest. An organizational conflict of interest exists when a vendor has an unfair competitive advantage or the vendor's objectivity in performing the contract is, or might be, impaired. 5. The contents of the Proposal have not been communicated by the Proposer or its employees or agents to any person not an employee or legally authorized agent of the Proposer and will not be communicated to any such persons prior to Due Date of this solicitation. 6. If awarded a contract, the Proposer will provide to Sourcewell Participating Entities the equipment, products, and services in accordance with the terms, conditions, and scope of a resulting contract. 7. The Proposer possesses, or will possess before delivering any equipment, products, or services, all applicable licenses or certifications necessary to deliver such equipment, products, or services under any resulting contract. 8. The Proposer agrees to deliver equipment, products, and services through valid contracts, purchase orders, or means that are acceptable to Sourcewell Members. Unless otherwise agreed to, the Proposer must provide only new and first -quality products and related services to Sourcewell Members under an awarded Contract. 9. The Proposer will comply with all applicable provisions of federal, state, and local laws, regulations, rules, and orders. 10. The Proposer understands that Sourcewell will reject RFP proposals that are marked "confidential" (or "nonpublic," etc.), either substantially or in their entirety. Under Minnesota Statutes Section 13.591, subdivision 4, all proposals are considered nonpublic data until the evaluation is complete and a Contract is awarded. At that point, proposals become public data. Minnesota Statutes Section 13.37 permits only certain narrowly defined data to be considered a "trade secret," and thus nonpublic data under Minnesota's Data Practices Act. 11. Proposer its employees, agents, and subcontractors are not: 1. Included on the "Specially Designated Nationals and Blocked Persons" list maintained by the Office of Foreign Assets Control of the United States Department of the Treasury found at: https://www.treasu[y_aov/ofac/downloads/sdnlist.df; 2. Included on the government -wide exclusions lists in the United States System for Award Management found at: https:Hsam.gov/SAM/; or 3. Presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from programs operated Bid Number: RFP 011723 Vendor Name: Caterpillar Inc DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 by the State of Minnesota; the United States federal government or the Canadian government, as applicable; or any Participating Entity. Vendor certifies and warrants that neither it nor its principals have been convicted of a criminal offense related to the subject matter of this solicitation. W By checking this box I acknowledge that I am bound by the terms of the Proposer's Affidavit, have the legal authority to submit this Proposal on behalf of the Proposer, and that this electronic acknowledgment has the same legal effect, validity, and enforceability as if I had hand signed the Proposal. This signature will not be denied such legal effect, validity, or enforceability solely because an electronic signature or electronic record was used in its formation. - Sean Egel, Sales Support Consultant, Caterpillar Inc. The Proposer declares that there is an actual or potential Conflict of Interest relating to the preparation of its submission, and/or the Proposer foresees an actual or potential Conflict of Interest in performing the contractual obligations contemplated in the bid. r Yes r. No The Bidder acknowledges and agrees that the addendum/addenda below form part of the Bid Document. Check the box in the column "I have reviewed this addendum" below to acknowledge each of the addenda. I have reviewed the File Name below addendum and pages attachments (if applicable) Addendum_5_Heavy_Construction_Equipment_RFP_011723 1 Tue January 10 2023 08:47 AM Addend um_4_Heavy_Construction_Equi pment_RFP_011723 F7 2 Fri January 6 2023 09:51 AM Addend um_3_Heavy_Construction_Eq ui pment_RFP_011723 p 2 Thu December 29 2022 12:33 PM Addendum_2_Heavy_Construction_Equipment_RFP_011723 F7 1 Wed December 21 2022 01:49 PM Addend um_1_Heavy_Construction_Equipment_RFP 011723 7 1 Thu December 15 2022 09:27 AM Bid Number: RFP 011723 Vendor Name: Caterpillar Inc DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 SOURCEWELL TRADEMARK LICENSE ADDENDUM This Addendum is by and between SOURCEWELL, 202 —12th Street NE, PO Box 219, Staples, Minnesota 56479 ("Sourcewell") and Caterpillar Inc., having its principal place of business at 5212 N. O'Connor Blvd., Suite 1100, Irving, TX 75039, and offices at 100 NE Adams Street, Peoria, Illinois, 61629 Caterpillar" or "Vendor"). Sourcewell and Caterpillar may be referred to in this Agreement as a Party" and collectively as the "Parties." The Parties maintain a contractual relationship for Vendor to provide equipment, products, or services to Sourcewell's cooperative purchasing contracts as follows: Sourcewell Contract 011723 — CAT (Solicitation Number: 011723) Sourcewell and Vendor each own all right, title, and interest in their respective names, trademarks, service marks, related logos, and all other rights in the names, designs, likenesses and visual representations thereof ("Licensed Trademarks"), and desire to grant each other a royalty -free license to use certain Licensed Trademarks owned by the other Party under the terms and conditions set forth herein. ARTICLE I: GRANT OF LICENSE A. GRANT OF LICENSE. During the term of the Contract: 1. Sourcewell grants to Vendor a royalty -free, worldwide, non-exclusive right and license to use Sourcewell's Licensed Trademarks provided to Vendor by Sourcewell in advertising and promotional materials for the purpose of marketing Sourcewell's relationship with Vendor. 2. Vendor grants to Sourcewell a royalty -free, worldwide (except for those jurisdictions that are prohibited by applicable Anti -Corruption and International Trade Laws), non-exclusive right and license to use Vendor's Licensed Trademarks provided to Sourcewell by Vendor in advertising and promotional materials for the purpose of marketing Vendor's relationship with Sourcewell. Anti -Corruption and International Trade Laws" means all statutes, regulations, rules, executive orders, supervisory requirements, directives, ordinances, circulars, opinions, interpretive letters, and official releases of or by any government, or any authority, department or agency thereof or self - regulatory organization related to bribery, fraud, corruption, or international trade. 3. The Parties agree that each is the owner of all rights, including without limitation common law rights and goodwill, in relation to their respective Licensed Trademarks, and that any goodwill derived from the use of Licensed Trademarks by the other Party shall inure to the owner of the respective Licensed Trademarks. B. LIMITED RIGHT OF SUBLICENSE. The rights and licenses granted herein includes a limited right of each Party to grant sublicenses to its and their respective distributors, marketing representatives, and agents (collectively "Permitted Sublicensees") in advertising and promotional materials for the purpose of marketing the Contract. Any sublicense granted will be subject to the terms and conditions of this Addendum. Each Party will be responsible for any breach of this Article by any of their respective Sublicensees. TM-20-01077 DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 C. USE; QUALITY CONTROL. 1. Neither Party may alter the other Party's Licensed Trademarks from the form provided by the other Party and must comply with the other Party's removal requests as to specific uses of its Licensed Trademarks. 2. Each Party agrees to use, and to cause its Permitted Sublicensees to use, the other Party's Licensed Trademarks only in good faith and in a dignified manner consistent with such Party's use of the Licensed Trademarks. Upon written notice to the breaching Party, the breaching Party or their Permitted Sublicensees have thirty (30) days of the date of the written notice to cure the breach or the license will be terminated. 3. Beyond what is permitted in this Addendum, neither Party will: a. attempt to register, or register any trademark, service mark, symbol, logo, get-up or device which is confusingly similar to any of the other Party's Licensed Trademarks in any jurisdiction; b. represent that it has any rights of any nature in the Licensed Trademarks other than those enjoyed under the terms of this Agreement; c. use the other Party's trademarks, service marks or copyrights, translations thereof or marks similar thereto, as part of its corporate name, trade name or a d/b/a name, favicons, social media names/handles, email addresses, email extensions, or domain names without prior written approval from the other Party; or d. use the other Party's trade names, trademarks, or service marks on any collateral business materials (e.g., business cards, letterhead, invoices, pens, notepads, fax cover sheets, etc.), unless otherwise approved in writing by the other Party. ARTICLE II: TERM, TERMINATION, AND MISCELLANEOUS. A. EFFECTIVE DATE. This Addendum is effective upon the date of the final signature below. B. TERMINATION. Unless earlier terminated in accordance with this Article, this Addendum expires immediately upon the expiration or termination of the Contract. 1. Termination for Convenience. This Addendum may be terminated by either Party at any time upon ninety (90) days' prior written notice to the other Party. 2. Termination for Breach. This Addendum may be terminated by either Party upon a breach of the terms of this Addendum by the other Party, upon written notice of breach to the breaching Party, and only if such breach is not cured within thirty (30) days of the date of the written notice. 3. Effect of Termination. Upon the termination of this Addendum for any reason, each Party will have thirty (30) days to, and require its Permitted Sublicensees to, remove all Licensed Trademarks from signage, websites, and the like bearing the other Party's name or logo TM-20-01077 DocuSign Envelope ID: 9AA872AA-9802-4A6D-8065-BECD9EB74C88 excepting Sourcewell's pre-printed catalog of vendors which may be used until the next printing). Vendor must return all marketing and promotional materials, including signage, provided by Sourcewell, or dispose of it according to Sourcewell's written directions. 4. Miscellaneous. The terms and conditions of this Addendum shall have no effect on the terms and conditions of any other trademark licenses signed by the Parties. All other terms of the Contract remain in full force and effect, unless otherwise terminated. Docuftnedby: ErOINA87.2,72,UEO Docuftneldby:''__ SOUIRC 5c6 CatIWA c, aWBy. cOFD2A,3so0848s... By.... Name: Jeremy Schwartz Name: Patrick Kearns Title: Director of operations and Procurementr4ggo Vice President sales & marketing - North America Date: Date: PM PDT TM-20-01077 Attachment B Resolution No. 2025-17 RESOLUTION NO.2025-17 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA, TO AMEND THE FISCAL YEAR 2024-25 OPERATING BUDGET AND APPROPRIATE ADDITIONAL FUNDS FOR THE ACQUISITION OF A NEW CATERPILLAR 420 BACKHOE LOADER WHEREAS, the City Council adopted the Fiscal Year 2024-25 Operating and Capital Improvement Program budgets on June 27, 2024; and WHEREAS, amendments must periodically be made to the budget to conform to changed circumstances following adoption of the budget; and WHEREAS, the Fiscal Year 2024-25 budget included funding for capital equipment in the amount of $110,000; and WHEREAS, funding was not fully allocated in the City's approved 2024-25 Budget thus requiring a revision to add $100,000 in Street Light District Funds to cover the remaining cost of the acquisition; and WHEREAS, the revised appropriation constitutes an update to the 2024-25 Budget approved pursuant to Resolution No. 2024-30. THE ROSEMEAD CITY COUNCIL HEREBY RESOLVES AS FOLLOWS: SECTION 1: The City Council hereby approves an appropriation in the amount of One Hundred Thousand Dollars ($100,000) in Street Light District Funds (Fund 245) to increase funding for the purchase. SECTION 2: The City Clerk shall certify the adoption of this Resolution. PASSED, APPROVED AND ADOPTED this 25"' day of March, 2025. ATTEST: Margaret Clark, Mayor APPROVED AS TO FORM: Rachel H. Richman, City Attorney Ericka Hernandez, City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES) § CITY OF ROSEMEAD ) I, Ericka Hernandez, City Clerk of the City Council of the City of Rosemead, California, do hereby certify that the foregoing City Council Resolution No. 2025-17 was duly adopted by the City Council of the City of Rosemead, California, at a regular meeting thereof held on the 251h day of March, 2025, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: Ericka Hernandez, City Clerk Attachment C Quote from Quinn CAT Quote 182440-01 QUINN 182440-01 Mar 19, 2025 CITY OF ROSEMEAD ATTN ACCOUNTS PAYABLE 8838 VALLEY BLVD ROSEMEAD, California 91770 Attention: CHRISTOPHER CAMACHO Dear Sir, We would like to thank you for your interest in our company and our products, and are pleased to quote the following for your consideration. One (1) New Caterpillar Inc. Model: 420 Backhoe Loader including standard and optional equipment as listed below. Sourcewell #011723 - CAT We wish to thank you for the opportunity of quoting on your equipment needs. This quotation is valid for 30 days, after which time we reserve the right to re -quote. If there are any questions, please do not hesitate to contact me. Sincerely, Leo Jasso Machine Sales Representative Page 1 of 5 Quote 182440-01 One (1) New Caterpillar Inc. Model: 420 Backhoe Loader including standard and optional equipment as listed below. STANDARD EQUIPMENT BOOMS, STICKS, AND LINKAGES -BACKHOE -- 14'4" Center pivot backhoe -4.3 Meters -- Boom and swing transport locks -- Pilot operated backhoe and -electro hydraulic stabilizer controls -- Street type stabilizer shoes -- Anti -drift hydraulics (boom, stick, -and E-stick) -- Cat Cushion Swing(tm) system -LOADER -- Single Tilt Loader -- Lift cylinder brace -- Self -leveling loader with single -lever control -- Return -to -dig -(automatic bucket positioner) -- Transmission neutralizer switch -- Bucket level indicator - POWERTRAIN -- Water separator -- Thermal starting aid system -- Dry type axial seal air cleaner with -integral precleaner -- Automatic dust ejection system -- Filter condition indicator -- Hydraulically boosted multi -plate -wet disk brake with dual pedals & interlock -- Differential lock -- Torque converter -- Transmission -four speed manual shift -- Neutral safety switch -- Spin -on filters for Fuel -Engine oil -Transmission oil -- Outboard Planetary Rear Axles -- Diesel particulate filter -- Hydrostatic power steering HYDRAULICS -- Pilot hoe and mechanical loader -controls -- Load sensing, variable flow system -with 43 gpm (162 Umin) axial piston pump -- 6 micron hydraulic filter -- Caterpillar XT-3 hose -- Hydraulic oil cooler -- Pilot control shutoff switch -- Flow -sharing hydraulic valves -- Hydraulic suction strainer - ELECTRICAL --12 volt electrical start -- Horn, front and rear -- Backup alarm -- Hazard flashers/turn signals -- Halogen head lights (2) Halogen rear flood lights (2) -- Stop and tail lights -- Audible system fault alarm -- Key start/stop system -- 850 CCA maintenance free battery -- Battery disconnect switch -- External Power Receptacle (12v) -- Diagnostic ports for engine and -machine Electronic Control Modules OPERATOR ENVIRONMENT -- Interior rearview mirror -- ROPS canopy, Rear Fenders -- 2-inch (50mm) retractable seat belt -- Tilt steering column -- Steering knob -- Hand and foot throttle -- Automatic Engine Speed Control -- One Touch Low Idle -- Floor mat and Coat Strap -- Lockable storage area -- Air suspension seat - FLUIDS -- Antifreeze - Extended Life Coolant --20F (-30C) OTHER STANDARD EQUIPMENT -- Standard Storage Box -- Transport tie -down points -- Ground line fill fuel tank with -42.3 gal 160L) capacity & 5 gal (19L) -diesel exhaust fluid -- Rubber impact strips on radiator -guard -- CD-ROM Parts Manual -- Safety Manual Operations and Maintenance Manual -- Lockable hood -- Tire Valve Stem Protection Page 2 of 5 Quote 182440-01 MACHINE SPECIFICATIONS 420 07A BHL CFG2 542-7992 LANE 3 ORDER OP-9003 TRIM PACKAGE 4 642-9589 STICK, EXT, 14' 543-4284 PT, 2WS, ASHF 544-0930 ENG, 74.5KW, C3.6, T4F 541-9540 HYD, MP, 6FCN, QC 554-4188 BUCKET -MP, 1.4 YD3, IT 216-8840 CUTTING EDGE, TWO PIECE,WIDE 9R-5320 BUCKET -SOIL, 24", 8.5 FT3 254-8941 COUPLER, PG, HYDR.D.LOCK, BHL 485-5303 CAB, DLX 544-0883 DISPLAY, TOUCH SCREEN 545-5048 WORKLIGHTS (8) LED LAMPS 491-6736 SEAT, DLX FABRIC, HEATED 611-0345 BELT, SEAT, 3" SUSPENSION 206-1748 AIR CONDITIONER, T4F 542-7810 TIRES, 12.5 80/19.5L-24, GY 379-2161 STABILIZER PADS, FLIP -OVER 9R-6007 CTWT, 1015 LBS 337-9696 INSTRUCTIONS, ANSI 559-0872 SERIALIZED TECHNICAL MEDIA KIT 421-8926 RIDE CONTROL 551-6453 LINES, AUX COMBO, E-STICK 548-1231 STD RADIO (12V) 540-2298 BEACON, AMBER LED 634-6334 PRODUCT LINK, CELLULAR, PLE643 639-4880 COLD WEATHER PACKAGE, 120V 551-6940 AUTO -UP STABILIZERS 567-5090 GUARD, STABILIZER 353-1389 PLATE GROUP, BOOM WEAR 423-7607 MIRRORS, EXTERNAL, BOTH SIDES 382-2499 FENDERS, FRONT 563-6098 LINES, CPLR, 14' EXT PILOT 555-2396 HAMMER, 68S, BHL 532-9300 PINS, SPARE 318-9902 CARRIAGE, PAL CL3, 61", IT 6W-8832 FORK TINE, 2" X 5" X 48" 195-6935 SHIPPING/STORAGE PROTECTION 461-6839 RUST PREVENTATIVE APPLICATOR 462-1033 WACO DEALER PDI+FUEL 621-7419 PACK, DOMESTIC TRUCK OP-0210 BUCKET -HD, 12", 2.8 FT3 219-3411 BUCKET -HD, 36", 10.3 FT3 219-3389 PINS, BUCKET, BHL-F, 45MM-50MM 178-3593 Page 3 of 5 Quote 182440-01 Sub Total, Machine Min Member Disc Machine / Option Price Work Tools / Attachments BUCKET -HD, 12", 2.8 FT3 BUCKET -HD, 36", 10.3 FT3 PINS, BUCKET, BHL-F, 45MM-50MM Sub Total Member Disc Work Tool / Attachments Price Customer Invoice Machine / Option Price Work Tool / Attachments Price Pre -Tax Total Pre -Prep Total Nondiscountable Items 5 year 4000 Hour Warranty Delivery PDI Machine Prep Manuals, (1) set CD/DVD Total 229,820.00 22.0% 50,560.40) 1790259.60 22.0% 1,764.00 2,347.00 500.00 4,611.00 1,014.42) 3,596.58 179,259.60 3,596.58 182,856.18 182,856.18 4,576.47 500.00 500.00 1,300.00 1,200.00 190,932.65 Page 4 of 5 Quote 182440-01 WARRANTY & COVERAGE Standard Warranty: 12 MONTHS FULL MACHINE Extended Coverage: 420-60 MO/4000 HR PREMIER SELL PRICE 190,932.65 EXT WARRANTY Included NET BALANCE DUE 190,932.65 SALES TAX (9.5%) 18,138.60 AFTER TAX BALANCE 209,071.25 F.O.B/TERMS: Accepted by. on Signature Page 5 of 5