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HomeMy WebLinkAboutCOM 0059.000 1998-2000 OJNVV OF N~fi ,1 Stephen K. Yamashiro f \~W~i; Harry A. Takahashi Mayor Director m•. ~ S. K. Schutte 17TE OF+N'' Deputy ~Couutp of ~abuaii ~ c DEPARTMENT OF FINANCE r 25 Aupuni Slreet, Room 118 Hilo, Hawaii 9b720-4252 (808)961-6234 Fax (808)961-8298 December 18, 1998 Honorable James Arakaki, Chairperson and Members of the County Council Hawaii County Council 25 Aupuni Street Hilo, Hawaii 96720 Re: Amendment to Operating Budget Enclosed is a bill for an ordinance to appropriate $13,565 to conduct DARE Leadership Institutes, Parents Program and DARE day activities. Funding also includes sending officers for training and provides instructional supplies and materials for classrooms. A resolution authorizing the Mayor to enter into an agreement for this grant is also enclosed. If there are any questions, please do not hesitate to call the Police Department. ~~G~~~~~~,(`ti Harry A. Takahashi Director of Finance APPROVED: ~r u,,, ~.1L._ t phen ~amashiro Mayor Encs. (311 Ib r° i ~ - F7I~ No. FND/aPR, Aet. Ta F C. + R.i. D.rs OEC 9 R 14oa Form B-52 7/18/91 DEPARTMENT OF FINANCE REQUEST FOR COUNCIL ACTION DEPARTMENT: POLICE DATE: 11/13/98 STAFF CONTACT: LAWRENCE K. MAHUNA, MAJOR PHONE: 961-2247. A. REQUEST To appropriate an additional $13,565.00 under the DARE/DOE Grant account number 010-201-5219.49-115. B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED): The State of Hawaii Department of Education is providing funding to conduct the DARE Leadership Institutes, Parents Proyram and DARE day activities. Funding is also included to send officers for training and provide instructional supplies and materials for classrooms. The Hawaii County Police Department is to provide sufficient manpower to teach, implement and provide necessary support the the DARE Program in all public and participating private schools with in the County of Hawaii. SIGNED: G. l~~ll~~U DATE: 1-~=L- YNE G. CARVALHO P LICE CHIEF ~,,,y., c,m, ,e. as se-e.oe purchase Order No. Contract Number MEMORANDUM OF AGREEMENT This AGREEMENT made this 28th day of October ,1998 , by and between the DEPARTMENT OF EDUCATION, STATE OF HAWAII, whose business and mailing address is 1390 Miller Street, Honolulu, Hawaii 96813, hereinaftei'sometimes referred to as "Department", and Count; of Hawaii Police Deo4rt- whose business (or residence) and mailing address is 349 Kapiolani Street ment Numpet and Street Hilo, Hawaii 96770-3998 Ciry and Sute Zip Code hereinafter sometimes referred to as "Contractor", WITNESSETH: For and in consideration of the covenants hereinafter set forth, the parties hereto mutually agree as follows: t. SCOPE OF SERVICES. The Contractor agrees to perform or provide the following described work or work products and to supply at the Contractor's expense all labor, materials, equipment, supplies and other incidentals in connection therewith (Give detailed explanation of work. Attach exhibit, i( necessary): The County of Hawaii Police Department will provide sufficient manpower to teach, implement and provide necessar;~ support for the Druy Abuse Resistance Education (DARE) Program in all public and participating privcte schools within the Count. of Hawaii. 2. TIME OF PERFORMANCE. The term of this Agreement shall be from and to the dates specified below, or, as applicable. The Contractor agrees to complete said work on or before the following date (Attach exhibit, if necessary): Duration of services: From date Gf approval to September 30, 1999. Page 2 3. SPECIAL PROVISIONS. Special Provisions (Attach exhibit, if necessary): For agreements 510,000 or more the following additional General Condition applies: Any agreement arising out of this offer is subject to the approval of the Department of the Attorney General as to form, and to all further approvals, including the approval of the Governor, required by statute, regulation, rule, order, or other directive. The following paragraphs of the General Conditions are not applicable and have no operative effect between the parties: 2b, 2e, 7, 8, 9, 13, 14c, 17c and 17d. 4. CONTRACT FORMS AND ATTACHMENTS. The complete contract includes this Agreement Face Sheet, Standards of Conduct Declaration, the General Conditions, and Exhibits ,all of which are attached hereto and made a part hereof by reference. 5. COMPENSATION AND PAYMENT SCHEDULE. The Department agrees to pay, and the Contractor agrees to accept, in full and complete payment for all work and work products and all labor, equipment, supplies and other costs and expenses incurred by the Contractor in performance of the obligations hereunder the total and complete sum of DOLLARS (5 )which includes the travel and perdiem expenses set forth below, if applicable. a. Professional Fee 5 Per .............................S (HOUr/Oay/Etc.) b. Travel and Per Diem Expenses as follows: Air transportation S Ground transportation S Per Diem (Daily rate: ) 5 TOTAL TRAVEL AND PER DIEM EXPENSES .......................................................5 c. Other Expenses as follows: DARE Leadership Institutes $ R.SOn_nn DARE Day Rallys/Middle School Celeb. 5 5,500.00 DARE for Parents Program $ 2,000.00 DARE Instructional Supplies/Mat. S l~nnn_nn DARE Officer Traininos/Seminars/Conf. 15,565.00 TOTAL OTHER EXPENSES ...................................................................................5 32.565.00 TOTAL COMPENSATION .......................................................................................5 32.565.00 d. Said sum shall be payable in one lump sum upon completion of the work or services, or as work progresses, as follows (Attach exhibit, if necessary): Payment schedule: 516,283.00 upon contract approval $16,282.00 upon contract completion (COntiru=9 GENERAL CONDITIONS Table of Contents paQe(sl 1. ~gordination of Services by the STATE 1 2. Relationship of Parties: Independent Contractor Statue and ReS.ponsibilities. Inclttdin~ Tax Responsibilities 1 3. Personnel Requirements 2 4. Nondiscrimination 2 ~gnflicts of Interest 2 6. Subcontracts and Ass(~Irten[s 3 7. indemnification and Defense 4 8. Cost of Litigation 4 9. Liquidated Damaees 4 10. State's Ri;ht of Offset 4 11. Disputes 5 12. ~cpension of A~eement 5 13. Termination for Default 6 14. Termination for Convenience 8 15. Claims Based on the A~encv Procurement Officer's Actions or Omissions 10 16. Costs and Ex e~ 11 17. Pavment Procedures: Final Pavment:. Clearance 12 18. Federal Funds 12 1 Form AG2-GC(!/9~ 19. i•'rodifications of Agreement 12 20. ~anae Order 14 21. pCice Ad~stment 15 22. Variation in Ouanti(y for Definite Quantity Agreements.. 16 23. hangPS in Cost-Reimbursement Agreement 16 24. Qonfidentiality of Material 17 2~. Pyblicirv 17 26. Ownership Rights and Co~vriQht 17 27. T.iens and Warranties 17 28. Audit of Books and Records of the CONTRACTOR 18 29. Cost or Pricing ata 18 30. Altdit of Cost or Pricing Data 18 31. Records Retention 18 32. Antitrust Claims 18 33. Minimi ingsone se_tion 18 34. overning aw 18 35. Compliance with Laws 19 36. r'^^flict between General Conditions and Procurement Rules 19 37. Entire Agreement . 19 38. Severabilitv 19 39. W fiver 19 11 Form AG2-GC(1/96) GENERAL CONDITIONS 1. Coordination of Services lzy the STATE. The "head of the purchasing agency," (which term includes the designee of the head of the purchasing agency), shall coordinate the services to be provided by the CONTRACTOR in order to complete the performance required in the Agreement. The CONTRACTOR shall maintain communications with the head of the purchasing agency at all stages of the CONTRACTOR'S work, and submit to the head of the purchasing agency for resolution any questions which may arise as to the performance of this Agreement. "Purchasing agency" as used in these General Conditions means and includes any governmental body which is authorized under chapter 103D, HRS, or iu implementing rules and procedures, or by way of delegation, to enter into contracu for the procurement of services. 2. Relationship of Parties• Independent Contractor Statue and Responsibilities Including Tax Re~.ponsibilities. a. In the performance of services required under this Agreement, the CONTRACTOR is an "independent contractor," with the authority and respotuibility to control and direc[ the performance and details of the work and services required under this Agreement; however, the STATE shall have a general right to inspect work in progress to determine whether, in the STATE'S opinion, the services are being performed by the CONTRACTOR in compliance with this Agreement. Unless otherwise provided by special condition, it is understood that the STATE does not agree to use the CONTRACTOR exclusively, and that the CONTRACTOR is free to contract to provide services to other individuals or entities while under contract with the STATE. b. The CONTRACTOR and the CONTRACTOR'S employees and agenu are not by reason of this Agreement, agents or employees of the State for any purpose, and the CONTRACTOR and the CONTRACTOR'S employees and agenu shall not be entitled to claim or receive from the State any vacation, sick leave, retirement, workers' compensation, unemployment insurance, or other benefiu provided to state employees. c. The CONTRACTOR shall be responsible for the accuracy, completeness, and adequacy of the CONTRACTOR'S performance under this Agreement. Furthermore, the CONTRACTOR intentionally, voluntarily, and knowingly assumes the sole and entire liability to the CONTRACTOR'S employees and agenu, and to any individual not a party to this Agreement, for all loss, damage, or injury caused by the CONTRACTOR, or the CONTRACTOR'S employees or agenu in the course of their employment. 1 Form AG2-GC(1/96) d. The CONTRACTOR shall be responsible for payment of all applicable federal, state, and county [axes and fees which may become due and owing by the CONTRACTOR by reason of this Agreement, including but not limited to (i) income taxes, (ii) employment related fees, assessments, and taxes, and (iii) general excise taxes. The CONTRACTOR also is responsible for obtaining all licenses, permits, and certificates that may be required in order to perform this Agreement. e. The CONTRACTOR shall obtain a general excise tax license from the Department of Taxation, State of Hawaii, in accordance with section 237-9, HRS, and shall comply with all requirements thereof. The CONTRACTOR shall obtain a tax clearance certificate from the Director of Taxation, State of Hawaii, showing that all delinquen[ taxes, if any, levied or accrued under state law against the CONTRACTOR have been paid and submit the same to the STATE prior to commencing any performance under this Agreement. The CONTRACTOR shall also be solely responsible for meeting all requirements necessary to obtain the tax clearance certificate required for fatal payment under sections 103-53 and 237-45, HRS, and paragraph 17 of these General Conditions. f. The CONTRACTOR is responsible for securing all employee-related insurance coverage for the CONTRACTOR and the CONTRACTOR's employees and agents that is or may be required by law, and for paymen[ of all premiums, costs, and other liabilities associated with securing the insurance coverage. 3. Personnel Requirements a. The CONTRACTOR shall secure, at the CONTRACTOR'S own expense, all personnel required to perform this Agreement. b. The CONTRACTOR shall ensure that the CONTRACTOR'S employees or agents are experienced and fully qualified to engage in the activities and perform the services required under this Agreement, and that all applicable licensing and operating requirements imposed or required under federal, state, or county taw, and all applicable accreditation and other standards of quality generally accepted in the field of the activities of such employees and agenCS are complied with and satisfied. 4. Nondiscrimination No person performing work under this Agreement, including any subcontractor, employee, or agent of the CONTRACTOR, shall engage in any discrimination that is prohibited by any applicable federal, state, or county law. Conflicts of Interest The CONTRACTOR represents that neither the CONTRACTOR, nor any employee or agent of the CONTRACTOR, presently has any interest, and 2 Forth AG2-GCQ/9~ promises that no such interest, direct or indirect, shall be acquired, that wouid or might conflict in any manner or degree with the CONTRACTOR'S performance under this Agreement. 6. Subcontracu and Assignments. The CONTRACTOR shall not assign or subcontract any of the CONTRACTOR'S duties, obligations, or interesu under this Agreement and no such assignment or subcontract shall be effective unless (i) the CONTRACTOR obtains the prior written consent of the STATE and (ii) the CONTRACTOR'S assignee or subcontractor submits to the STATE a tax clearance certificate from the Director of Taxation, State of Hawaii, showing that all delinquent taxes, if any, levied or accrued under state ]aw against the CONTRACTOR'S assignee or subcontractor have been paid. Additionally, no assigrunent by the CONTRACTOR of the CONTRACTOR'S right to compensation under this Agreemen[ shall be effective unless and until the assignment is approved by the Comptroller of the State of Hawaii, as provided in section 40-58, HRS. a. Recogtition of a cuccesaor in Lnterect When in the best interest of the State, a successor in interest may be recognized in an assigtunent agreement in which the STATE, the CONTRACTOR and the assignee or transferee (hereinafer referred to as the "Assignee") agree that: (1) The Assignee assumes all of the CONTRACTOR'S obligations; (2) The CONTRACTOR remains liable for all obligations under this Agreement but waives all rights under this Agreement as against the STATE; and (3) The CONTRACTOR shall continue to furnish, and the Assignee shall also furnish, all required bonds. b. Chan;e of name. When the CONTRACTOR asks to change the name in which it holds this Agreemen[ with the STATE, the procurement officer of the purchasing agency (hereinafter referred to as the "Agency procurement officer") shall, upon receipt of a document acceptable or satisfactory to the Agency procurement officer indicating such change of name (for example, an amendment to the CONTRACTOR'S articles of incorporation), enter into an amendment to this Agreement with the CONTRACTOR to effect such a change of name. The amendment to this Agreement changing the CONTRACTOR'S name shall specifically indicate that no other terms and conditions of this Agreement are thereby changed. c. AeRorts. All assignment agreements and amendments to this Agreement effecting changes of the CONTRACTOR'S name or novations hereunder shall be reported 3 Form AG2•GC(l/96) to the CPO within thirty days of the date that the assignment agreement or amendment becomes effective. d. Actions affectin; more than one purchasing a; n v Notwithstanding the provisions of subparagraphs 6a through 6c herein, when the CONTRACTOR holds agreements with more than one purchasing agency of the State, the assignment agreements and the novation and change of name amendmenu herein authorized shall be processed only through the CPO's office. 7. Indemnification and Defense. The CONTRACTOR shall defend, indemnify, and hold harmless the State of Hawaii, the contracting agency, and their officers, employees, and agents from and against all liability, loss, damage, cost, and expense, including all attorneys' fees, and all claims, suits, and demands therefor, arising out of or resulting from the acts or omissions of the CONTRACTOR or the CONTRACTOR'S employees, officers, agents, or subcontractors under this Agreement. The provisionu of this pazagraph shall remain in full force and effect notwithstanding the expiration or early termination of this Agreement. 8. Cost of LitVation. In case the STATE shall, without any fault on its part, be made a party to any litigation commenced by or against the CONTRACTOR in connection with this Agreement, the CONTRACTOR shall pay all costs and expenses incurred by or imposed on the STATE, including attorneys' fees. 9. Liquidated Damages. When the CONTRACTOR is given notice of delay or nonperformance as specified in paragraph 13 (Termination for Defaul[) and fails to cure in the time specified, it is agreed the CONTRACTOR shall pay to the STATE the amount, if any, set forth in this Agreement per calendar day from the date set for cure until either (i) the STATE reasonably obtains similar goods or services, or both, if the CONTRACTOR is terminated for default, or (ii) until the CONTRACTOR provides the goods or services, or both, if the CONTRACTOR is not terminated for default. To the extent that the CONTRACTOR'S delay or nonperformance is excused under pazagraph 13d (Excuse for Nonperformance or Delay Performance), liquidated datnages shall not be assessable against the CONTRACTOR. The CONTRACTOR shall remain liable for damages caused other than by delay. 10. State's RiEht of Offset The STATE may offset against any monies or other obligations the STATE owes to the CONTRACTOR under this Agreement, any amounts owed to the State of Hawaii by the CONTRACTOR under this Agreement or any other agreements or pursuant to any law or other obligation owed to the State of Hawaii by the CONTRACTOR, including, without limita[ion, the payment of any taxes or levies of any kind or nature. The STATE will notify the CONTRACTOR in writing of any offset and the nature of such offset. For purposes of this paragraph, amounts owed to the State of Hawaii shall not include debts or obligations which have been liquidated, agreed to by the 4 Form AG2-GC(1/9V7 CONTRACTOR, and are covered by an installment payment or other settlement plan approved by the State of Hawaii, provided, however, that the CONTRACTOR shall be entitled to such exclusion only to the extent that the CONTRACTOR is current with, and not delinquent on, any payments or obligations owed to the State of Hawaii under such payment or other settlement plan. 11. )~.Futes• Disputes shall be resolved in accordance with section 103D-703, HRS, and chapter 126, Procurement Rules, as the same tray be amended from time to time. 12- pension of Agreement. The STATE reserves the right at any time and for any reason to suspend this Agreemen[ for any reasonable period, upon written notice to the CONTRACTOR in accordance with the provisions herein. a. Order to stop performance. The Agency procurement officer, may, by written order to the CONTRACTOR, at any time, and without notice to any surety, require the CONTRACTOR to stop all or any part of the performance called for by this Agreement. This order shall be for a specified period not exceeding sixty (60) days afrer the order is delivered to the CONTRACTOR, unless the parties agree to any further period. Any such order shall be identified specifically as a stop performance order issued pursuant to this section. Upon receipt of such an order, the CONTT2ACTOR shall forthwith comply with its terms and suspend all performance under this Agreement at the time stated, provided, however, the CONTRACTOR shall take all reasonable steps to min;m;~r the occurrence of costs allocable to the performance covered by the order during the period of performance stoppage. Before the stop performance order expires, or within any further period to which the parties shall have agreed, the Agency procurement officer shall either: (1) Cancel the stop performance order; or (2) Terminate the performance covered by such order as provided in the termination for default provision or the termination for convenience provision of this Agreement. b. cancellation or expiation of the order. If a stop performance order issued under this section is cancelled at any time during the period specified in the order, or if the period of the order or any extension thereof expires, the CONTRACTOR shall have the right to resume performance. An appropriate adjustment shall be made in the delivery schedule or Agreement price, or both, and the Agreement shall be modified in writing accordingly, if: (1) The stop performance order results in an increase in the time required for, or in the CONTRACTOR'S cost properly allocable to, the performance of any part of this Agreement; and 5 Fonn AG2-GCQ/96) (2) The CONTRACTOR asserts a claim for such an adjustment within thirty (30) days after the end of the period of performance stoppage; provided that, if the Agency procurement officer decides that the facts justify such action, any such claim asserted tray be received and acted upon at any time prior to final payment under this Agreement. ' c. Termination of stoRpgd performance. If a stop performance order is not cancelled and the performance covered by such order is terminated for default or convenience, the reasonable cosu resulting from the stop performance order shall be allowable by adjustment or otherwise. d. A¢iuctment of pri Any adjustment in contract price made pursuant to this paragraph shall be determined in accordance with the price adjustrnent provision of this Agreement. 13. Termination for Default. a, p~fault. If the CONTRACTOR refuses or fails to perform any of the provisions of this Agreement with such diligence as will ensure its completion within the time specified in this Agreement, or any extension thereof, otherwise fails to timely satisfy the Agreement provisions, or commie any other substantial breach of this Agreement, the Agency procurement officer may notify the CONTRACTOR in writing of the delay or non-performance and if not cured in ten (10) days or any longer time specified in writing by the Agency procurement officer, such officer may terminate the CONTRACTOR'S right to proceed with the Agreement or such part of the Agreement as to which there has been delay or a failure to properly perform. In the event of termination in whole or in part the Agency procurement officer may procure similar goods or services in a manner and upon the terms deemed appropriate by the Agency procurement officer. The CONTRACTOR shall continue performance of the Agreement to the extent it is not terminated and shall be liable for excess costs incurred in procuring similar goods or services. b. ~QNTRACTOR's duties. Notwithstanding termination of the Agreement and subjec[ to any directions from the Agency procurement officer, the CONTRACTOR shall take timely, reasonable, and necessary action to protect and preserve property in the possession of the CONTRACTOR in which the STATE has an interest. c. Compensation. Payment for completed goods and services delivered and accepted by the STATE shall be at the price set forth in the Agreement. Payment for the protection and preservation of property shall be in an amount agreed upon by the CONTRACTOR and the Agency procurement officer. If the parties fail to agree, the Agency procurement officer shall set an amount subject to the b Forth AG2•GC(1/96) CONTRACTOR'S rights under chapter 126, Procurement Rules. The STATE may withhold from amounts due the CONTRACTOR such sums as the Agency procurement officer deems to be necessary to protect the STATE against loss because of outstanding liens or claims and to reimburse the STATE for the excess costs expected to be incurred by the STATE in procuring similar goods and services. d. F_xcuse for nonperformance or delav~performance The CONTRACTOR shall not be in default by reason of any failure in performance of this Agreement in accordance with its terms, including any failure by the CONTRACTOR to make progress in the prosecution of the performance hereunder which endangers such performance, if the CONTRACTOR has notified the Agency procurement officer within fifteen (15) days after the cause of the delay and the failure arises out of causes such as: acts of God; acts of a public enemy; acts of the Stale and any other governmental body in its sovereign or contractual capacity; fires; floods; epidemics; quarantine restrictions; strikes or other labor disputes; freight embargoes; or unusually severe weather. If the failure to perform is caused by the failure of a subcontractor to perform or to make progress, and if such failure arises out of causes similar to those set forth above, the CONTRACTOR shall not be deemed to be in default, unless the goods and services to be furnished by the subcontractor were reasonably obtainable from other sources in sufficient time to permit the CONTRACTOR to meet the requirements of the Agreement. Upon request of the CONTRACTOR, the Agency procurement officer shall ascertain the facts and extent of such failure, and, if such officer determines that any failure to perform was occasioned by any one or more of the excusable causes, and that, but for the excusable cause, the CONTRACTOR'S progress and performance would have met the terms of the Agreement, the delivery schedule shall be revised accordingly, subject to the rights of the STATE under this Agreement. As used in this paragraph, the term "subcontractor" means subcontractor at any tier. e. _F.rroneous termination for default If, after notice of termination of the CONTRACTOR'S right to proceed under this paragraph, it is determined for any reason that the CONTRACTOR was not in default under this paragraph, or that the delay was excusable under the provisions of subparagraph 13d, "Excuse for nonperformance or delayed performance," the rights and obligations of the parties shall be the same as if the notice of termination had been issued pursuant to such provision. f. Additional rights and remedies The rights and remedies provided in this paragraph are in addition to any other rights and remedies provided by law or under this Agreement. ~ Form AGDGG(l/96) 14. Termination for Convenience. a. Termination. The Agency procurement officer may, when the interests of the STATE so require, terminate this Agreement in whole or in part, for the convenience of the STATE. The Agency procurement officer shall give written notice of the termination to the CONTRACTOR specifying the pan of the Agreement terminated and when termination becomes effective. ' b. CONTRACTOR'S obligations. The CONTRACTOR shall incur no further obligations in connection with the terminated performance and on the date(s) set in the notice of termination the CONTRACTOR will stop performance to the extent specified. The CONTRACTOR shall also terminate outstanding orders and subcontracts as they relate to the terminated performance. The CONTRACTOR shall settle the liabilities and claims arising out of the termination of subcontracts and orders connected with the terminated performance. The Agency procurement officer may duect the CONTRACTOR to assign the CONTRACTOR'S right, title, and interest under terminated orders or subcontracts to the STATE. The CONTRACTOR must still complete the performance not terminated by the notice of termination and may incur obligations as necessary to do so. c. $i,ht to roods and work rp oduct• The Agency procurement officer may require the CONTRACTOR to transfer title and deliver to the STATE in the manner and to the extent directed by the Agency procurement officer: (I) Any completed goods or work product; and (2) The partially completed goods and materials, parts, tools, dies, jigs, fixtures, plans, drawings, information, and contract rights (hereinafrer called "manufacturing material") as the CONTRACTOR has specifically produced or specially acquired for the performance of the terminated part of this Agreement. The CONTRACTOR shall, upon direction of the Agency procurement officer, protect and preserve property in the possession of the CONTRACTOR in which the STATE has an interest. If the Agency procurement officer does not exercise this right, the CONTRACTOR shall use best efforts to sell such goods and manufacturing materials. Use of this pazagtaph in no way implies that the STATE has breached the Agreement by exercise of the termination for convenience provision. d. ~4mpensation. 8 Form AG2-GC(I/96) (1) The CONTRACTOR shall submit a termination claim specifying the amounu due because of the termination for convenience together with the cost or pricing data, submitted to the extent required by subchapter 15, chapter 3-122, Procurement Rules, bearing on such claim. If the CONTRACTOR fails to file a termination claim within one year from the effective date of termination, the Agency procurement officer may pay the CONTRACTOR, if at all, an amount set in accordance with subparagraph 14d(3) below. (2) The Agency procurement officer and the CONTRACTOR may agree to a settlement provided the CONTRACTOR has filed a termination claim supported by cost or pricing data submitted as required and that the settlement does not exceed the total Agreement price plus settlement cosu reduced by paymenu previously made by the STATE, the proceeds of any sales of goods and manufacturing materials under subparagraph 14c, and the Agreement price of the performance not terminated. (3) Absent complete agreement under subparagraph 14d(2) the Agency procurement officer shall pay the CONTRACTOR the following amounu, provided paymenu a;reed to under subparagraph 14d(2) shall not duplicate paymenu under this subparagraph for the following: (A) Contract prices for goods or services accepted under the Agreement, (B) Costs incurred in preparing to perform and performing the terminated portion of the performance plus a fair and reasonable profit on such portion of the performance, such profit shall not include anticipatory profit or consequential damages, less amounu paid or to be paid for accepted goods or services; provided, however, [hat if it appears that the CONTRACTOR would have sustained a loss if the entire Agreement would have been completed, no profit shall be allowed or included and the amount of comperuation shall be reduced to reflect the anticipated rate of loss; (C) Cosu of settling and paying claims arising out of the termination of subcontracu or orders pursuant to subparagraph 14b. These costs must not include cosu paid in accordance with subparagraph 14d(3)(B); (D) The reasonable settlement cosu of the CONTRACTOR including accounting, legal, clerical, and other expenses reasonably necessary for the preparation of settlement claims and supposing data with 9 Forth AG2-GC(1/96) respect to the terminated portion of the Agreement and for the termination of subcontracts thereunder, together with reasonable storage, transportation, and other cosu incurred in connection with the protection or disposition of property allocable to the terminated portion of this Agreement. The total sum to be paid the CONTRACTOR under this subparagraph shall not exceed the total Agreement price plus the reasonable settlement costs of the CONTRACTOR reduced by the amount of payments otherwise made, the proceeds of any sales of supplies and manufacturing materials under subparagraph 14d(2), and the Agreement price of performance not terminated. (4) Costs claimed, agreed to, or established under subparagraphs 14d(2) and 14d(3) shall be in accordance with Chapter 3-123 (Cost Principles) of the Procurement Rules. I~. Claims Based on the A~encv Procurement Officer's Ar•rinna nr nmicc~n a. Chanoes in scone If any action or omission on the part of the Agency procurement officer (which term includes the designee of such officer for purposes of this paragraph 15) requiring perfotrrtance changes within the scope of the Agreement constitutes the basis for a claim by the CONTRACTOR for additional compensation, damages, or an extension of time for completion, the CONTRACTOR shall continue with performance of the Agreement in compliance with the directions or orders of such officials, but by so doing, the CONTRACTOR shall not be deemed to have prejudiced any claim for additional compensation, damages, or an extension of time for completion; provided: (1) Written notice required The CONTRACTOR shall give written notice to the Agency procurement officer: (A) Prior to the commencement of the performance involved, if at that time the CONTRACTOR knows of the occurrence of such action or omission; (B) Within thirty (30) days afrer the CONTRACTOR knows of the occurrence of such action or omission, if the CONTRACTOR did not have such knowledge prior to the commencement of the performance; or (C) Within such further time as may be allowed by the Agency procurement officer in writing. 10 Form AG2•GCQ/9~ (2) Notice content. This notice shall state that the CONTRACTOR regards the act or omission as a reason which may entitle the CONTRACTOR to additional compensation, damages, or an extension of time. The Agency procurement officer, upon receipt of such notice, may rescind such action, remedy such omission, or take such other steps as may be deemed advisable in the discretion of the Agency procurement officer; (3) Basis must be explained, The notice required by subparagraph 15a(1) describes as clearly as practicable at the time the reasons why the CONTRACTOR believes that additional compensation, damages, or an extension of time may be remedies to which the CONTRACTOR is entitled; and (4) Maim must be justified. The CONTRACTOR must maintain and, upon request, make available to the Agency procurement officer within a reasonable time, detailed records to the extent practicable, and other documentation and evidence satisfactory to the STATE, justifying the claimed additional costs or an extension of time in connection with such changes. b. CONTRACTOR not excused Nothing herein contained, however, shall excuse the CONTRACTOR from compliance with any rules or laws precluding any state officers and CONTRACTOR from acting in collusion or bad faith in issuing or performing change orders which are clearly not within the scope of the Agreement. c. price adjustment. Any adjustment in the price made pursuant to this paragraph shall be determined in accordance with the price adjustment provision of this Agreement. 16. Costs and Expenses. Any reimbursement due the CONTRACTOR for per diem and transportation expenses under this Agreement shall be subject to chapter 3-123 (Cost Principles) of the Procurement Rules and the following guidelines: a. Reimbursement for air transportation shall be for actual cost or coach class air fare, whichever is less. b. Reimbursement for ground transportation cosu shall not exceed the actual cost of renting an intermediate-sized vehicle. c. Uriless prior written approval of the DIRECTOR is obtained, reimbursement for subsistence allowance (i.e., hotel and meals, etc.) shall not exceed the applicable daily authorized rates for interisland or out-of-state travel that are set forth in the current Governor's Executive Order authorizing adjustments in salaries and 11 Form .~G2-GC(1/96) benefits for state officers and employees in the executive branch who aze excluded from collective bargaining coverage. 17. P~vment Procedures: Final Payment: Tax Clearance a. Ori;'nal ink voices required. All payments under this Agreement shall be made otily upon submission by the CONTRACTOR of original invoices specifying the amount due and certifying that services requested under the Agreement have been performed by the CONTRACTOR according to the Agreement. b. Subject to available funds. Such payments aze subject to availability of funds and allotment by the Director of Finance in accordance with chapter 37, HRS. Further, all payments shall be made in accordance with and subject to chapter 40, HRS. c. Promo[~ymen[. (1) Any money, other than retainage, paid to the CONTRACTOR shall be dispersed to subcontractors within ten days afer receipt of the money in accordance with the terms of the subcontract; provided that the subcontractor has met all the terms and conditions of the subcontract and there are no bona fide disputes; and (2) Upon final payment to the CONTRACTOR, full payment to the subcontractor, including retainage, shall be made within ten days after receipt of the money; provided that there are no bona fide disputes over the subcontractor's performance under the subcontract. d. Final p~~ment. Final payment under this Agreement shall be subject to sections 103-53 and 237115, HRS, which require a tax clearance from the Director of Taxation, State of Hawaii, showing that all delinquent taxes, if any, levied or accrued under state law against the CONTRACTOR have been paid. 18. Federal Funds If this Agreement is payable in whole or in part from federal funds, CONTRACTOR agrees that, as [o the portion of the compensation under this Agreement to be payable from federal funds, the CONTRACTOR shall be paid only from such funds received from the federal government, and shall not be paid from any other funds. 19. Modifcations of Agreement. 12 Form AG2-GC(I/96) a. w ' ' o Any modification, alteration, amendment, change, or extension of any term, provision, or condition of this Agreement permitted by this Agreement shall be made by written amendment to this Agreement, signed by the CONTRACTOR and the STATE, provided that change orders shall be made in accordance with paragraph 20 herein. b. No oral modification. No oral modification, alteration, amendment, change, or extension of any term, provision or condition of this Agreement shall be permitted. c. Aoencv pSOSUrement officer By a written order, at any time, and without notice to any surety, the Agency procurement officer, subject to mutual agreement of the parties to this Agreement and all appropriate adjustments, may make modifications within the general scope of this Agreement to include any one or more of the following: (A) Drawings, designs, or specifications; (B) Method or place of delivery; (C) Descrip[ion of services to be performed; (D) Time of performance (i.e., hours of the day, days of the week, etc.); (E) Place of performance of the services; or Other provisions of the Agreement accomplished by mutual action of the parries to the Agreement. d. Adjustments of price or time for nerforman P If any modification increases or decreases the CONTRACTOR'S cost of, or the time required for, performance of any part of the work under this Agreement, an adjustment shall be made and this Agreement modified in writing accordingly. Any adjustment in Agreement price made pursuant to this clause shall be determined, where applicable, in accordance with the price adjustment clause of this Agreement or as negotiated. e. Claim barred after fina!_pavment No claim by the CONTRACTOR for an adjustment hereunder shall be allowed if written agreement of modification is not made prior to final payment under this Agreement. f. Claims not barred. In the absence of an Agreement modification, nothing in this clause shall be deemed to restrict the CONTRACTOR'S right to pursue a claim under this Agreement or for a breach of contract. 13 Forth AG2-GC(I/96) g. APO ,~proval. If a modification, alteration, amendment, change or extension of any term, provision or condition of this Agreement increases the amount payable to the CONTRACTOR by at least $25,000.00 or ten per cent (10%) of the initial Agreement price, whichever increase is higher, the prior approval of the CPO is required. h. Tax clearance. The STATE may, at its discretion, require the CONTRACTOR to submit to the STATE, prior to the STATE's approval of any modification, alteration, amendment, change, or extension of any term, provision, or condition of this Agreement, a tax clearance from the Duector of Taxation, State of Hawaii, showing that all delinquent taxes, if any, levied or accrued under state law against the CONTRACTOR have been paid. i. $ole source agrgements. Amendmenu to sole source agreements that would change the original scope of the contract may only be made with the approval of the CPO. Annual renewal of a sole source agreement for services should not be submitted as an amendment. 20. ~han;e Order The Agency procurement officer may, by a written order signed otily by the STATE, at any [ime, and without notice to any surety, and subject to all appropriate adjustments, trtake changes within the genera! scope of this Agreement in any one or more of the following: (1) Drawings, designs, or specifications, if the goods or services to be furnished are to be specially provided to the STATE in accordance therewith; (2) Method of delivery; or (3) Place of delivery. a. Adjustments o(_grice or time for performance If any change order increases or decreases the CONTRACTOR's cost of, or the time required for, performance of any part of the work under this Agreement, whether or not changed by the order, an adjustment shall be made and the Agreement modified in writing accordingly. Any adjustment in the Agreement price made pursuant to this provision shall be determined in accordance with the price adjustment provision of this Agreement. Failure of the parties to agree to an adjustment shall not excuse the CONTRACTOR from proceeding with the Agreement as changed, provided that the Agency procurement officer promptly and duly makes the provisional adjustments in payment or time for performance as may be reasonable. By proceeding with the work, the CONTRACTOR shall not be deemed to have 14 Forth AG2-GC(1196~ prejudiced any claim for additional compensation, or any extension of time for completion. b. CPO approval. If a contract change order increases the amount payable to the CONTRACTOR by at least $25,000.00 or ten per cent (10%) of the initial Agreement price, whichever increase is higher, the prior approval of the CPO is required. - c. Tim~eriod for claim. Within thirty (30) days after receipt of a written change order under subpazagraph 20a, unless the period is extended by the Agency procurement officer in writing, the CONTRACTOR shall file notice of intent to assert a claim for an adjustment. Later notification shall not bar the CONTRACTOR'S claim unless the STATE is prejudiced by the delay in notification. d. Claim barred after final payment No claim by the CONTRACTOR for an adjustment hereunder shall be allowed if notice is not given prior to final payment under this Agreement. e. Other claims not barred In the absence of a change order, nothing in this paragraph 20 shalt be deemed to restrict the CONTRACTOR'S right to pursue a claim under the Agreement or for breach of contract. 21. Price Adjustment a. Price adjustment Any adjustment in the Agreement price pursuant to a provision in this Agreement shall be made in one or more of the following ways: (1) By agreement on a fixed price adjustment before cotnmencement of the pertinent performance or as soon thereafter as practicable; (2) By unit prices specified in the Agreement or subsequently agreed upon; (3) By the costs attributable to the event or situation covered by the provision, plus appropriate profit or fee, all as specified in the Agreement or subsequently agreed upon; (4) In such other manner as the parties may mutually agree; or (5) In the absence of agreement between the parties, by a unilateral determination by the Agency procurement officer of the costs attributable to the event or siruation covered by the provision, plus appropriate profit or fee, all as computed by the Agency procurement officer in accordance I $ Form AG2-GC(I /9~ with generally accepted accounting principles and applicable sections of chapters 3-123 and 3-126 of the Procurement Rules. b. Submission of cost or pricin; data. The CONTRACTOR shall provide cost or pricing data for any price adjustments subject to the provisiotu of subchapter 15, chapter 3-122 of the Procurement Rules. 22. Variation in Ouanti for Definite Ouantitv Agreements. Upon the agreement of the STATE and the CONTRACTOR, the quantity of goods or services, or both, if a definite quantity is specified in this Agreement, may be increased by a maximum of ten per cent (10%); provided the unit prices will remain the same except for any price adjustments otherwise applicable; and the CPO [Hakes a written determination that such an increase will either be more economical than awarding another Agreement or that it would not be practical to award another Agreement. 23. hanoes in Cost-Reimbursement A;reement. If this Agreement is acost-reimbursement Agreement, the following provisions shall apply: a. The Agency procurement officer may at any time by written order, and without notice to the sure[ies, if any, make changes within the general scope of the Agreement in any one or more of the following: (1) Description of performance (Attachment 1); (2) Time of performance (i.e., hours of the day, days of the week, etc.); (3) Place of performance of services; (4) Drawings, desigru, or specifications when the supplies to be furnished are to be specially manufactured for the STATE in accordance with the drawings, designs, or specifications; (5) Method of shipment or packing of supplies; or (6) Place of delivery. b. If any change causes an increase or decrease in the estimated cost of, or the time required for performance of, any part of the performance under this Agreement, whether or not changed by the order, or otherwise affects any other terms and conditions of this Agreement, the Agency procurement officer shalt make an equitable adjustment in the (1) estimated cost, delivery or completion schedule, or both; (2) amount of any fixed fee; and (3) other affected terms and shall modify the Agreement accordingly. 16 Forth AG2-GC(U96) c. The CONTRACTOR must assert the CONTRACTOR'S rights to an adjustment under this provision within thirty (30) days from the day of receipt of the written order. However, if the Agency procurement officer decides that the facts justify it, the Agency procurement officer may receive and act upon a proposal submitted before final payment under the Agreement. d. Failure to agree to any adjustment shall be a dispute under paragraph 11 of this Agreement. However, nothing in this provision shall excuse the CONTRACTOR from proceeding with the Agreement as changed. e. Notwithstanding the terms and conditions of subparagraphs 23a and 23b, the estimated cost of this Agreement and, if this Agreement is incrementally funded, the funds allotted for the performance of this Agreement, shall not be increased or considered to be increased except by specific written modification of the Agreement indicating the new Agreement estimated cost and, if this Agreement is incrementally funded, the new amount allotted to the Agreement. 24. C'onfidentialirv_gf Material a. All material given to or made available to the CONTRACTOR by virtue of this Agreement, which is identified as proprietary or confidential information, will be safeguarded by the CONTRACTOR and shall not be disclosed to any individual or organization without the prior written approval of the STATE. b. All information, data, or other material provided by the CONTRACTOR to the STATE shall be subject to the Uniform Information Practices Act, chapter 92F, HRS. 25. Publicity. The CONTRACTOR shall not refer to the STATE, or any office, agency, or officer thereof, or any State employee, including the head of the purchasing agency, the CPO, the DIRECTOR, the Agency procurement officer, or to the services or goods, or both, provided under this Agreement, in any of the CONTRACTOR'S brochures, advertisements, or other publicity of the CONTRACTOR. All media contacts with the CONTRACTOR about the subject matter of this Agreement shall be referred to the Agency procurement officer. 26. Ownership Rights and Coov 'o t The STATE shall have complete ownership of all material, both finished and unfinished, which is developed, prepared, assembled, or conceived by the CONTRACTOR pursuant to this Agreement, and all such material shall be considered "works made for hire." All such material shall be delivered to the STATE upon expiration or termination of this Agreement. The STATE, in its sole discretion, shall have the exclusive right to copyright any product, concept, or material developed, prepared, assembled, or conceived by the CONTRACTOR pursuant to this Agreement. 17 Form AG2-GC(l/9o~ 27. T iens and Warranties. Goods provided under this Agreement shall be provided free of all liens and provided together with all applicable warranties, or with the warranties described in the Agreement documents, whichever are greater. 28. Audit of Books and Records of the CONTRACTOR The STATE may, at reasonable times and places, audit the books and records of the CONTRACTOR, prospective contractor, subcontractor or prospective subcontractor which are related to: a. The cost or pricing data, and b. A State contract, including subcontracts, other than a firm fixed-price contract. 29. Cost or Pricino Data. Cost or pricing data must be submitted to the Agency purchasing officer and timely certified as accurate for contracts over S100,000 unless the contract is for amultiple-term or as otherwise specified by the procurement officer. Unless otherwise required by the Agency procurement officer, cost or pricing data submission is not required for agreements awarded pursuant to competitive sealed bid procedures. If certified cost or pricing data are subsequently found to have been inaccurate, incomplete, or noncurrent as of the date stated in the cenificate, the STATE is entitled to an adjustment of the contract price, including profit or fee, to exclude any significant sum by which the price, including profit or fee, was increased because of the defective data. It is presumed that overstated cos[ or pricing data increased the contract price in the amount of the defect plus related overhead and profit or fee. Therefore, uriless there is a clear indication that the defective data was not used or relied upon, the price will be reduced in such amount. 30. Audit of Cost or Pricing Data When cost or pricing principles are applicable, the STATE may require an audit of cost or pricing data. 31. Records Retention. The CONTRACTOR and any subcontractors shall maintain the books and records that relate to the Agreement and any cost or pricing data for three (3) years from the date of final payment under the Agreement. 32. Antitrust Claims The STATE and the CONTRACTOR recognize that in actual economic practice, overcharges resulting from antitrust violations are in fact usually borne by the purchaser. Therefore, the CONTRACTOR hereby assigns [o STATE any and all claims for overcharges as to goods and materials purchased in connection with this Agreement, except as to overcharges which result from violations commencing after the price is established under this Agreement and which are not passed on to the STATE under an escalation clause. 18 Form AG2-GC(1/96) 33. Minimizing Congestion. The CONTRACTOR shall undertake all necessary precautions to trtinirrtize any adverse impact the performance under this Agreement may have on traffic conges[ion. 34. ov rnin; .aw. The validity of this Agreement and any of its terms or provisions, as well as the rights and duties of the parties to this Agreement, shall be governed by the Taws of the State of Hawaii. Any action at law or in equity to enforce or interpret the provisions of this Agreement shall be brought in a state court of competent jurisdiction in Honolulu, Hawaii. 35. Compliance with Laws. The CONTRACTOR shall comply with all federal, state, and county laws, ordinances, codes, rules, and regulations, as the same may be amended from time to time, that in any way affect the CONTRACTOR'S performance of this Agreement. 36. Conflict between General Conditions and Procurement Rules, In the event of a conflict between the General Conditioru and the Procurement Rules, the Procurement Rules in effect on the date this Agreement became effective shall control and are hereby incorporated by reference. 37. Entire Agreement. This Agreement sets forth all of the agreements, conditions, understandings, promises, warran[ies, and representations between the STATE and the CONTRACTOR relative to this Agreement. This Agreement supersedes all prior agreements, conditions, understandings, promises, warranties, and representations, which shall have no further force or effect. There are no agreements, conditions, understandings, promises, warranties, or representations, oral or written, express or implied, between the STATE and the CONTRACTOR other than as set forth or as referred to herein. 38. Severability. In the event that any provision of this Agreement is declared invalid or unenforceable by a court, such invalidity or unenforceabiliry shall not affect the validity or enforceabi]iry of the remaining terms of this Agreement. 39. Waiver. The failure of the STATE to insist upon the strict compliance with any term, provision, or condition of this Agreement shall not constitute or be deemed to constitute a waiver or relinquishment of the STATE'S right to enforce the same in accordance with this Agreement. The fact that the STATE specifically refers to one provision of the Procurement Rules or one section of the Hawaii Revised Statutes, and does not include other provisions or statutory sections in this Agreement shall not cottitute a waiver or relinquishment of the STATE'S rights or the CONTRACTOR'S obligations under the Procurement Rules or statutes. 19 Form AG2-GCp/9~ Page 3 6. REQUESTING OFFICE. Name the school/district, complex district, or section/branch office. Safe and Drug-Free Schools and Communities Program/Office of Accountabilit~r and School Instructional Support 7. CONTRACTOR. If more than one signature is required, use the space provided. 1Vayne G. Carvalho, Police Chief 11-10-98 Name & Official Title (Typed) Signature Date Name & Official Title (Typed) Signature Date 8. APPROVED AS TO FORM By Deputy Attorney General (Signature) Date 9. DEPARTMENT OF EDUCATION sy Superintendent or Designee (Signature) Date