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IT General Provisions 03-27-06

1. DEFINITIONS: Unless otherwise specified in the Statement of Work the following terms shall be given the meaning shown, unless context requires otherwise.
 
 "Acceptance  Tests"  means  those  tests  performed  during  the  Performance  Period  which  are  intended  to  determine  compliance  of  Equipment  and  Software  with  the  specifications  and  all  other  Attachments  incorporated  herein  by  reference  and  to  determine  the  reliability  of  the  Equipment. 
 "Application  Program"  means  a  computer  program  which  is  intended  to  be  executed  for  the  purpose  of  performing  useful  work  for  the  user  of  the  information  being  processed.    Application  programs  are  developed  or  otherwise  acquired  by  the  user  of  the  Hardware/Software  system,  but  they  may  be  supplied  by  the  Contractor. 
 "Attachment"  means  a  mechanical,  electrical,  or  electronic  interconnection  to  the  Contractor-supplied  Machine  or  System  of  Equipment,  manufactured  by  other  than  the  original  Equipment  manufacturer,  that  is  not  connected  by  the  Contractor. 
 "Business entity" means any individual, business, partnership, joint venture, corporation, S-corporation, limited liability corporation, limited liability partnership, sole proprietorship, joint stock company, consortium, or other private legal entity recognized by statute.
 "Buyer" means the State's authorized contracting official.
 "Commercial Software" means Software developed or regularly used that: (i) has been sold, leased, or licensed to the general public; (ii) has been offered for sale, lease, or license to the general public; (iii) has not been offered, sold, leased, or licensed to the public but will be available for commercial sale, lease, or license in time to satisfy the delivery requirements of this Contract; or (iv) satisfies a criterion expressed in (i), (ii), or (iii) above and would require only minor modifications to meet the requirements of this Contract. 
 "Contract"  means  this  Contract  or  agreement  (including  any  purchase  order),  by  whatever  name  known  or  in  whatever  format  used.   
 "Custom  Software"  means  Software  that  does  not  meet  the  definition  of  Commercial  Software. 
 "Contractor"  means  the  Business  Entity  with  whom  the  State  enters  into  this  Contract.    Contractor  shall  be  synonymous  with  "supplier",  "vendor"  or  other  similar  term. 
 "Data  Processing  Subsystem"  means  a  complement  of  Contractor-furnished  individual  Machines,  including  the  necessary  controlling  elements  (or  the  functional  equivalent)  and  Operating  Software,  if  any,  which  are  acquired  to  operate  as  an  integrated  group,  and  which  are  interconnected  entirely  by  Contractor-supplied  power  and/or  signal  cables;  e.g.,  direct  access  controller  and  drives,  a  cluster  of  terminals  with  their  controller,  etc. 
 "Data  Processing  System  (System)"  means  the  total  complement  of  Contractor-furnished  Machines,  including  one  or  more  central  processors  (or  instruction  processors)  and  Operating  Software,  which  are  acquired  to  operate  as  an  integrated  group. 
 "Deliverables"  means  Goods,  Software,  Information  Technology,  telecommunications  technology,  and  other  items  (e.g.  reports)  to  be  delivered  pursuant  to  this  Contract,  including  any  such  items  furnished  incident  to  the  provision  of  services.     
 "Designated  CPU(s)"  means  for  each  product,  if  applicable,    the  central  processing  unit  of  the  computers  or  the  server  unit,  including  any  associated  peripheral  units.    If  no  specific  "Designated  CPU(s)"  are  specified  on  the  Contract,  the  term  shall  mean  any  and  all  CPUs  located  at  the  site  specified  therein. 
 "Documentation"  means  nonproprietary  manuals  and  other  printed  materials  necessary  or  useful  to  the  State  in  its  use  or  maintenance  of  the  Equipment  or  Software  provided  hereunder.    Manuals  and  other  printed  materials  customized  for  the  State  hereunder  constitute  Documentation  only  to  the  extent  that  such  materials  are  described  in  or  required  by  the  Statement  of  Work. 
 "Equipment"is  an  all-inclusive  term  which  refers  either  to  individual  Machines  or  to  a  complete  Data  Processing  System  or  subsystem,  including  its  Hardware  and  Operating  Software  (if  any). 
 "Equipment  Failure"  is  a  malfunction  in  the  Equipment,  excluding  all  external  factors,  which  prevents  the  accomplishment  of  the  Equipment's  intended  function(s).    If  microcode  or  Operating  Software  residing  in  the  Equipment  is  necessary  for  the  proper  operation  of  the  Equipment,  a  failure  of  such  microcode  or  Operating  Software  which  prevents  the  accomplishment  of  the  Equipment's  intended  functions  shall  be  deemed  to  be  an  Equipment  Failure. 
 "Facility  Readiness  Date"  means  the  date  specified  in  the  Statement  of  Work  by  which  the  State  must  have  the  site  prepared  and  available  for  Equipment  delivery  and  installation. 
 "Goods"  means  all  types  of  tangible  personal  property,  including  but  not  limited  to  materials,  supplies,  and  Equipment  (including  computer  and  telecommunications  Equipment). 
 "Hardware"  usually  refers  to  computer  Equipment  and  is  contrasted  with  Software.    See  also  Equipment. 
 "Installation  Date"  means  the  date  specified  in  the  Statement  of  Work  by  which  the  Contractor  must  have  the  ordered  Equipment  ready  (certified)  for  use  by  the  State. 
 "Information  Technology"    includes,  but  is  not  limited  to,  all  electronic  technology  systems  and  services,  automated  information  handling,  System  design  and  analysis,  conversion  of  data,  computer  programming,  information  storage  and  retrieval,  telecommunications  which  include  voice,  video,  and  data  communications,  requisite  System  controls,  simulation,  electronic  commerce,  and  all  related  interactions  between  people  and  Machines. 
 "Machine"  means  an  individual  unit  of  a  Data  Processing  System  or  subsystem,  separately  identified  by  a  type  and/or  model  number,  comprised  of  but  not  limited  to  mechanical,  electro-mechanical,  and  electronic  parts,  microcode,  and  special  features  installed  thereon  and  including  any  necessary  Software,  e.g.,  central  processing  unit,  memory  module,  tape  unit,  card  reader,  etc. 
 "Machine  Alteration"  means  any  change  to  a  Contractor-supplied  Machine  which  is  not  made  by  the  Contractor,  and  which  results  in  the  Machine  deviating  from  its  physical,  mechanical,  electrical,  or  electronic  (including  microcode)  design,  whether  or  not  additional  devices  or  parts  are  employed  in  making  such  change. 
 "Maintenance  Diagnostic  Routines"  means  the  diagnostic  programs  customarily  used  by  the  Contractor  to  test  Equipment  for  proper  functioning  and  reliability. 
 "Manufacturing  Materials"  means  parts,  tools,  dies,  jigs,  fixtures,  plans,  drawings,  and  information  produced  or  acquired,  or  rights  acquired,  specifically  to  fulfill  obligations  set  forth  herein. 
 "Mean Time Between Failure (MTBF)" means the average expected or observed time between consecutive failures in a System or component.
 "Mean Time to Repair (MTTR)" means the average expected or observed time required to repair a System or component and return it to normal operation.
 "Operating  Software"  means  those  routines,  whether  or  not  identified  as  Program  Products,  that  reside  in  the  Equipment  and  are  required  for  the  Equipment  to  perform  its  intended  function(s),  and  which  interface  the  operator,  other  Contractor-suplied  programs,  and  user  programs  to  the  Equipment. 
 "Operational  Use  Time"  means  for  performance  measurement  purposes,  that  time  during  which  Equipment  is  in  actual  operation  by  the  State.    For    maintenance  Operational  Use  Time  purposes,  that  time  during  which  Equipment  is  in  actual  operation  and  is  not  synonymous  with  power  on  time. 
 "Performance  Testing  Period"  means  a  period  of  time  during  which  the  State,  by  appropriate  tests  and  production  runs,  evaluates  the  performance  of  newly  installed  Equipment  and  Software  prior  to  its  acceptance  by  the  State. 
 "Period  of  Maintenance  Coverage"  means  the  period  of  time,  as  selected  by  the  State,  during  which  maintenance  services  are  provided  by  the  Contractor  for  a  fixed  monthly  charge,  as  opposed  to  an  hourly  charge  for  services  rendered.    The  Period  of  Maintenance  Coverage  consists  of  the  Principal  Period  of  Maintenance  and  any  additional  hours  of  coverage  per  day,  and/or  increased  coverage  for  weekends  and  holidays. 
 "Preventive  Maintenance"  means  that  maintenance,  performed  on  a  scheduled  basis  by  the  Contractor,  which  is  designed  to  keep  the  Equipment  in  proper  operating  condition. 
 "Principal  Period  of  Maintenance"  means  any  nine  consecutive  hours  per  day  (usually  between  the  hours  of  7:00  a.m.  and  6:00  p.m.)  as  selected  by  the  State,  including  an  official  meal  period  not  to  exceed  one  hour,  Monday  through  Friday,  excluding  holidays  observed  at  the  installation. 
 "Programming  Aids"  means  Contractor-supplied  programs  and  routines  executable  on  the  Contractor's  Equipment  which  assists  a  programmer  in  the  development  of  applications  including  language  processors,  sorts,  communications  modules,  data  base  management  systems,  and  utility  routines,  (tape-to-disk  routines,  disk-to-print  routines,  etc.). 
 "Program  Product"  means  programs,  routines,  subroutines,  and  related  items  which  are  proprietary  to  the  Contractor  and  which  are  licensed  to  the  State  for  its  use,  usually  on  the  basis  of  separately  stated  charges  and  appropriate  contractual  provisions. 
 "Remedial  Maintenance"  means  that  maintenance  performed  by  the  Contractor  which  results  from  Equipment  (including  Operating  Software)  failure,  and  which  is  performed  as  required,  i.e.,  on  an  unscheduled  basis. 
 "Site  License"  means  for  each  product,  the  term  "Site  License"  shall  mean  the  license  established  upon  acquisition  of  the  applicable  number  of  copies  of  such  product  and  payment  of  the  applicable  license  fees  as  set  forth  in  the  Statement  of  Work. 
 "Software"  means  an  all-inclusive  term  which  refers  to  any  computer  programs,  routines,  or  subroutines  supplied  by  the  Contractor,  including  Operating  Software,  Programming  Aids,  Application  Programs,  and  Program  Products. 
 "Software  Failure"means  a  malfunction  in  the  Contractor-supplied  Software,  other  than  Operating  Software,  which  prevents  the  accomplishment  of  work,  even  though  the  Equipment  (including  its  Operating  Software)  may  still  be  capable  of  operating  properly.    For  Operating  Software  failure,  see  definition  of  Equipment  Failure. 
 "State"  means  the  government  of  the  State  of  California,  its  employees  and  authorized  representatives,  including  without  limitation  any  department,  agency,  or  other  unit  of  the  government  of  the  State  of  California. 
 "System"  means  the  complete  collection  of  Hardware,  Software  and  services  as  described  in  this  Contract,  integrated  and  functioning  together,  and  performing  in  accordance  with  this  Contract. 
 "U.S. Intellectual Property Rights" means intellectual property rights enforceable in the United States of America, including without limitation rights in trade secrets, copyrights, and U.S. patents.

2. CONTRACT FORMATION:
a) If this Contract results from a sealed bid offered in response to a solicitation conducted pursuant to Chapters 2 (commencing with Section 10290), 3 (commencing with Section 12100), and 3.6 (commencing with Section 12125) of Part 2 of Division 2 of the Public Contract Code (PCC), then Contractor's bid is a firm offer to the State which is accepted by the issuance of this Contract and no further action is required by either party.
 b) If this Contract results from a solicitation other than described in paragraph a), above, Contractor's quotation or proposal is deemed a firm offer and this Contract document is the State's acceptance of that offer. 
 c) If this Contract resulted from a joint bid, it shall be deemed one indivisible Contract.  Each such joint Contractor will be jointly and severally liable for the performance of the entire Contract.  The State assumes no responsibility or obligation for the division of orders or purchases among joint Contractors.  

3. COMPLETE INTEGRATION: This Contract, including any documents incorporated herein by express reference, is intended to be a complete integration and there are no prior or contemporaneous different or additional agreements pertaining to the subject matter of the Contract.
 
4. SEVERABILITY:  The Contractor and the State agree that if any provision of this Contract is found to be illegal or unenforceable, such term or provision shall be deemed stricken and the remainder of the Contract shall remain in full force and effect.  Either party having knowledge of such term or provision shall promptly inform the other of the presumed non-applicability of such provision.  
 
5. INDEPENDENT CONTRACTOR:  Contractor and the agents and employees of Contractor, in the performance of this Contract, shall act in an independent capacity and not as officers or employees or agents of the State.
 
6. APPLICABLE LAW:  This Contract shall be governed by and shall be interpreted in accordance with the laws of the State of California; venue of any action brought with regard to this Contract shall be in Sacramento County, Sacramento, California.  The United Nations Convention on Contracts for the International Sale of Goods shall not apply to this Contract.
 
 7. COMPLIANCE WITH STATUTES AND REGULATIONS:  
 a)  Contractor  warrants  and  certifies  that  in  the  performance  of  this  Contract,  it  will  comply  with  all  applicable  statutes,  rules,  regulations  and  orders  of  the  United  States  and  the  State  of  California  and  agrees  to  indemnify  the  State  against  any  loss,  cost,  damage  or  liability  by  reason  of  the  Contractor's  violation  of  this  provision. 
 b)  The  State  will  notify  Contractor  of  any  such  claim  in  writing  and  tender  the  defense  thereof  within  a  reasonable  time;  and 
 c)  Contractor  will  have  sole  control  of  the  defense  of  any  action  on  such  claim  and  all  negotiations  for  its  settlement  or  compromise;  provided  that  (i)  when  substantial  principles  of  government  or  public  law  are  involved,  when  litigation  might  create  precedent  affecting  future  State  operations  or  liability,  or  when  involvement  of  the  State  is  otherwise  mandated  by  law,  the  State  may  participate  in  such  action  at  its  own  expense  with  respect  to  attorneys'  fees  and  costs  (but  not  liability);  (ii)  the  State  will  have  the  right  to  approve  or  disapprove  any  settlement  or  compromise,  which  approval  will  not  unreasonably  be  withheld  or  delayed;  and  (iii)  the  State  will  reasonably  cooperate  in  the  defense  and  in  any  related  settlement  negotiations. 

 d)  If  this  Contract  is  in  excess  of  $500,000,  it  is  subject  to  the  requirements  of  the  World  Trade  Organization  (WTO)  Government  Procurement  Agreement  (GPA). 
 e)  To  the  extent  that  this  contract  falls  within  the  scope  of  Government  Code  Section  11135,  Contractor  hereby  agrees  to  respond  to  and  resolve  any  complaint  brought  to  its  attention,  regarding  accessibility  of  its  products  or  services. 

8. CONTRACTOR'S POWER AND AUTHORITY:  The Contractor warrants that it has full power and authority to grant the rights herein granted and will hold the State harmless from and against any loss, cost, liability, and expense (including reasonable attorney fees) arising out of any breach of this warranty.  Further, Contractor avers that it will not enter into any arrangement with any third party which might abridge any rights of the State under this Contract.
 The  State  will  notify  Contractor  of  any  such  claim  in  writing  and  tender  the  defense  thereof  within  a  reasonable  time;  and 
 Contractor  will  have  sole  control  of  the  defense  of  any  action  on  such  claim  and  all  negotiations  for  its  settlement  or  compromise;  provided  that  (i)  when  substantial  principles  of  government  or  public  law  are  involved,  when  litigation  might  create  precedent  affecting  future  State  operations  or  liability,  or  when  involvement  of  the  State  is  otherwise  mandated  by  law,  the  State  may  participate  in  such  action  at  its  own  expense  with  respect  to  attorneys'  fees  and  costs  (but  not  liability);  (ii)  the  State  will  have  the  right  to  approve  or  disapprove  any  settlement  or  compromise,  which  approval  will  not  unreasonably  be  withheld  or  delayed;  and  (iii)  the  State  will  reasonably  cooperate  in  the  defense  and  in  any  related  settlement  negotiations. 

 
9. ASSIGNMENT:  This Contract shall not be assignable by the Contractor in whole or in part without the written consent of the State.  For the purpose of this paragraph, State will not unreasonably prohibit Contractor from freely assigning its right to payment, provided that Contractor remains responsible for its obligations hereunder.
 
10. WAIVER OF RIGHTS:  Any action or inaction by the State or the failure of the State on any occasion, to enforce any right or provision of the Contract, shall not be construed to be a waiver by the State of its rights hereunder and shall not prevent the State from enforcing such provision or right on any future occasion.    The rights and remedies of the State herein are cumulative and are in addition to any other rights or remedies that the State may have at law or in equity.
 
11. ORDER OF PRECEDENCE: In the event of any inconsistency between the articles, attachments, specifications or provisions which constitute this Contract, the following order of precedence shall apply:  
a) these General Provisions - Information Technology (In the instances provided herein where the paragraph begins: "Unless otherwise specified in the Statement of Work" provisions specified in the Statement of Work replacing these pargaraphs shall take precedence over  the paragraph referenced in these General Provisions) ; 
b) contract form, i.e., Purchase Order STD 65, Standard Agreement STD 213, etc., and any amendments thereto;
c) information technology special provisions;
d) statement of work, including any specifications incorporated by reference herein; and
e) all other attachments incorporated in the contract  by reference.  
 
12. PACKING AND SHIPMENT:  
a) All Goods are to be packed in suitable containers for protection in shipment and storage, and in accordance with applicable specifications.  Each container of a multiple container shipment shall be identified to:
i) show the number of the container and the total number of containers in the shipment; and
ii) the number of the container in which the packing sheet has been enclosed.
b) All shipments by Contractor or its subcontractors must include packing sheets identifying: the State's Contract number; item number; quantity and unit of measure; part number and description of the Goods shipped; and appropriate evidence of inspection, if required.  Goods for different Contracts shall be listed on separate packing sheets.
c) Shipments must be made as specified in this Contract, as it may be amended, or otherwise directed in writing by the State's Transportation Management Unit within the Department of General Services, Procurement Division.
 
13. TRANSPORTATION COSTS AND OTHER FEES OR EXPENSES:  No charge for delivery, drayage, express, parcel post, packing, cartage, insurance, license fees, permits, cost of bonds, or for any other purpose will be paid by the State unless expressly included and itemized in the Contract.
a) Contractor must strictly follow Contract requirements regarding Free on Board (F.O.B.), freight terms and routing instructions.  The State may permit use of an alternate carrier at no additional cost to the State with advance written authorization of the Buyer. 
b) If "prepay and add" is selected, supporting freight bills are required when over $50, unless an exact freight charge is approved by the Transportation Management Unit within the Department of General Services Procurement Division and a waiver is granted.
c) On "F.O.B. Shipping Point" transactions, should any shipments under the Contract be received by the State in a damaged condition and any related freight loss and damage claims filed against the carrier or carriers be wholly or partially declined by the carrier or carriers with the inference that damage was the result of the act of the shipper such as inadequate packaging or loading or some inherent defect in the Equipment and/or material, Contractor, on request of the State, shall at Contractor's own expense assist the State in establishing carrier liability by supplying evidence that the Equipment and/or material was properly constructed, manufactured, packaged, and secured to withstand normal transportation conditions.
 
14. DELIVERY: Contractor shall strictly adhere to the delivery and completion schedules specified in this Contract. Time, if stated as a number of days, shall mean calendar days unless otherwise specified. The quantities specified herein are the only quantities required.  If Contractor delivers in excess of the quantities specified herein, the State shall not be required to make any payment for the excess Deliverables, and may return them to Contractor at Contractor's expense or utilize any other rights available to the State at law or in equity.
 
15. SUBSTITUTIONS: Substitution of Deliverables may not be tendered without advance written consent of the Buyer.  Contractor shall not use any specification in lieu of those contained in the Contract without written consent of the Buyer.
 
 16.  INSPECTION, ACCEPTANCE AND REJECTION:    Unless  otherwise  specified  in  the  Statement  of  Work: 
 a)  Contractor  and  its  subcontractors  will  provide  and  maintain  a  quality  assurance  system  acceptable  to  the  State  covering  Deliverables  and  services  under  this  Contract  and  will  tender  to  the  State  only  those  Deliverables  that  have  been  inspected  and  found  to  conform  to  this  Contract's  requirements.    Contractor  will  keep  records  evidencing  inspections  and  their  result,  and  will  make  these  records  available  to  the  State  during  Contract  performance  and  for  three  years  after  final  payment.    Contractor  shall  permit  the  State  to  review  procedures,  practices,  processes,  and  related  documents  to  determine  the  acceptability  of  Contractor's  quality  assurance  System  or  other  similar  business  practices  related  to  performance  of  the  Contract. 
 b)  All  Deliverables  may  be  subject  to  inspection  and  test  by  the  State  or  its  authorized  representatives. 
 c) Contractor and its subcontractors shall provide all reasonable facilities for the safety and convenience of inspectors at no additional cost to the State.  Contractor shall furnish to inspectors all information and data as may be reasonably required to perform their inspection.
 d) All Deliverables may be subject to final inspection, test and acceptance by the State at destination, notwithstanding any payment or inspection at source.
 e) The State shall give written notice of rejection of Deliverables delivered or services performed hereunder within a reasonable time after receipt of such Deliverables or performance of such services.  Such notice of rejection will state the respects in which the Deliverables do not substantially conform to their specifications.  If the State does not provide such notice of rejection within thirty (30) days of delivery, such Deliverables and services will be deemed to have been accepted.  Acceptance by the State will be final and irreversible, except as it relates to latent defects, fraud, and gross mistakes amounting to fraud.  Acceptance shall not be construed to waive any warranty rights that the State might have at law or by express reservation in this Contract with respect to any nonconformity.
 
17. SAMPLES:
a) Samples of items may be required by the State for inspection and specification testing and must be furnished free of expense to the State.  The samples furnished must be identical in all respects to the products bid and/or specified in the Contract.
b) Samples, if not destroyed by tests, may, upon request made at the time the sample is furnished, be returned at Contractor's expense.
 
18.  WARRANTY:  
 a)  Unless  otherwise  specified  in  the  Statement  of  Work,  the  warranties  in  this  subsection  a)  begin  on  the  date  of  delivery  upon  acceptance  of  the  Deliverable  or  service  in  question  and  end  one  (1)  year  thereafter.    Contractor  warrants  that  (i)  Deliverables  and  services  furnished  hereunder  will  substantially  conform  to  the  requirements  of  this  Contract  (including  without  limitation  all  descriptions,  specifications,  and  drawings  identified  in  the  Statement  of  Work),  and  (ii)  the  Deliverables  will  be  free  from  material  defects  in  materials  and  workmanship.    Where  the  parties  have  agreed  to  design  specifications  (such  as  a  Detailed  Design  Document)  and  incorporated  the  same  or  equivalent  in  the  Statement  of  Work  directly  or  by  reference,  Contractor  will  warrant  that  its  Deliverables  provide  all  material  functionality  required  thereby.    In  addition  to  the  other  warranties  set  forth  herein,  where  the  Contract  calls  for  delivery  of  Commercial  Software,  Contractor  warrants  that  such  Software  will  perform  in  accordance  with  its  license  and  accompanying  Documentation.    The  State's  approval  of  designs  or  specifications  furnished  by  Contractor  shall  not  relieve  the  Contractor  of  its  obligations  under  this  warranty. 
 Contractor  warrants  that  Deliverables  furnished  hereunder  (i)  will  be  free,  at  the  time  of  delivery,  of  harmful  code  (i.e.  computer  viruses,  worms,  trap  doors,  time  bombs,  disabling  code,  or  any  similar  malicious  mechanism  designed  to  interfere  with  the  intended  operation  of,  or  cause  damage  to,  computers,  data,  or  Software);  and  (ii)  will  not  infringe  or  violate  any  U.S.  Intellectual  Property  Right.    Without  limiting  the  generality  of  the  foregoing,  if  the  State  believes  that  harmful  code  may  be  present  in  any  Commercial  Software  delivered  hereunder,  Contractor  will,  upon  the  State's  request,  provide  a  master  copy  of  the  Software  for  comparison  and  correction. 
 Unless  otherwise  specified  in  the  Statement  of  Work:     
 (i)  Contractor  does  not  warrant  that  any  Software  provided  hereunder  is  error-free  or  that  it  will  run  without  immaterial  interruption.     
 (ii)  Contractor  does  not  warrant  and  will  have  no  responsibility  for  a  claim  to  the  extent  that  it  arises  directly  from  (A)  a  modification  made  by  the  State,  unless  such  modification  is  approved  or  directed  by  Contractor,  (B)  use  of  Software  in  combination  with  or  on  products  other  than  as  specified  by  Contractor,  or  (C)  misuse  by  the  State.     
 (iii)  Where  Contractor  resells  Hardware  or  Software  it  purchased  from  a  third  party,  and  such  third  party  offers  additional  or  more  advantageous  warranties  than  those  set  forth  herein,  Contractor  will  pass  through  any  such  warranties  to  the  State  and  will  reasonably  cooperate  in  enforcing  them.    Such  warranty  pass-through  will  be  supplemental  to,  and  not  relieve  Contractor  from,  Contractor's  warranty  obligations  set  forth  above. 
 All  warranties,  including  special  warranties  specified  elsewhere  herein,  shall  inure  to  the  State,  its  successors,  assigns,  customer  agencies,  and  governmental  users  of  the  Deliverables  or  services. 
 e)  Except  as  may  be  specifically  provided  in  the  Statement  of  Work  or  elsewhere  in  this  Contract,  for  any  breach  of  the  warranties  provided  in  this  Section,  the  State's  exclusive  remedy  and  Contractor's  sole  obligation  will  be  limited  to:   
 (i)  re-performance,  repair,  or  replacement  of  the  nonconforming  Deliverable  (including  without  limitation  an  infringing  Deliverable)  or  service;  or   
 (ii)  should  the  State  in  its  sole  discretion  consent,  refund  of  all  amounts  paid  by  the  State  for  the  nonconforming  Deliverable  or  service  and  payment  to  the  State  of  any  additional  amounts  necessary  to  equal  the  State's  Cost  to  Cover.    "Cost  to  Cover"  means  the  cost,  properly  mitigated,  of  procuring  Deliverables  or  services  of  equivalent  capability,  function,  and  performance.    The  payment  obligation  in  subsection  (e)(ii)  above  will  not  exceed  the  limits  on  Contractor's  liability  set  forth  in  the  Section  entitled  "Limitation  of  Liability." 
 f)  EXCEPT  FOR  THE  EXPRESS  WARRANTIES  SPECIFIED  IN  THIS  SECTION,  CONTRACTOR  MAKES  NO  WARRANTIES  EITHER  EXPRESS  OR  IMPLIED,  INCLUDING  WITHOUT  LIMITATION  ANY  IMPLIED  WARRANTIES  OF  MERCHANTABILITY  OR  FITNESS  FOR  A  PARTICULAR  PURPOSE. 

19. SAFETY AND ACCIDENT PREVENTION:  In performing work under this Contract on State premises, Contractor shall conform to any specific safety requirements contained in the Contract or as required by law or regulation.  Contractor shall take any additional precautions as the State may reasonably require for safety and accident prevention purposes.  Any violation of such rules and requirements, unless promptly corrected, shall be grounds for termination of this Contract in accordance with the default provisions hereof.  
 
20. INSURANCE:  When performing work on property in the care, custody or control of the State, Contractor shall maintain all commercial general liability insurance, workers' compensation insurance and any other insurance the State deems appropriate under the Contract.  Contractor shall furnish an insurance certificate evidencing required insurance coverage acceptable to the State.  Upon request by the Buyer, the Contractor may be required to have the State shown as an "additional insured" on selected policies.
 
21.TERMINATION FOR NON-APPROPRIATION OF FUNDS:
a) If the term of this Contract extends into fiscal years subsequent to that in which it is approved, such continuation of the Contract is contingent on the appropriation of funds for such purpose by the Legislature.  If funds to effect such continued payment are not appropriated, Contractor agrees to take back any affected Deliverables furnished under this Contract, terminate any services supplied to the State under this Contract, and relieve the State of any further obligation therefor.
b) STATE AGREES THAT IF PARAGRAPH a) ABOVE IS INVOKED, DELIVERABLES SHALL BE RETURNED TO THE CONTRACTOR IN SUBSTANTIALLY THE SAME CONDITION IN WHICH DELIVERED TO THE STATE, SUBJECT TO NORMAL WEAR AND TEAR.  STATE FURTHER AGREES TO PAY FOR PACKING, CRATING, TRANSPORTATION TO CONTRACTOR'S NEAREST FACILITY AND FOR REIMBURSEMENT TO THE CONTRACTOR FOR EXPENSES INCURRED FOR THEIR ASSISTANCE IN SUCH PACKING AND CRATING.
 
22. TERMINATION FOR THE CONVENIENCE OF THE STATE:
 a)  The  State  may  terminate  performance  of  work  under  this  Contract  for  its  convenience  in  whole  or,  from  time  to  time,  in  part,  if  the  Department  of  General  Services,  Deputy  Director  Procurement  Division,  or  designee,  determines  that  a  termination  is  in  the  State's  interest.    The  Department  of  General  Services,  Deputy  Director,  Procurement  Division,  or  designee,  shall  terminate  by  delivering  to  the  Contractor  a  Notice  of  Termination  specifying  the  extent  of  termination  and  the  effective  date  thereof.     
 b)  After  receipt  of  a  Notice  of  Termination,  and  except  as  directed  by  the  State,  the  Contractor  shall  immediately  proceed  with  the  following  obligations,  as  applicable,  regardless  of  any  delay  in  determining  or  adjusting  any  amounts  due  under  this  clause.    The  Contractor  shall: 
 (i)  Stop  work  as  specified  in  the  Notice  of  Termination. 
 (ii)  Place  no  further  subcontracts  for  materials,  services,  or  facilities,  except  as  necessary  to  complete  the  continuing  portion  of  the  Contract. 
(iii)  Terminate  all  subContracts  to  the  extent  they  relate  to  the  work  terminated. 
(iv)  Settle  all  outstanding  liabilities  and  termination  settlement  proposals  arising  from  the  termination  of  subcontracts; 
Unless  otherwise  set  forth  in  the  Statement  of  Work,  if  the  Contractor  and  the  State  fail  to  agree  on  the  amount  to  be  paid  because  of  the  termination  for  convenience,  the  State  will  pay  the  Contractor  the  following  amounts;  provided  that  in  no  event  will  total  payments  exceed  the  amount  payable  to  the  Contractor  if  the  Contract  had  been  fully  performed: 
 The  Contract  price  for  Deliverables  or  services  accepted  by  the  State  and  not  previously  paid  for,  adjusted  for  any  savings  on  freight  and  other  charges;  and 
 The  total  of: 
 A)  The  reasonable  costs  incurred  in  the  performance  of  the  work  terminated,  including  initial  costs  and  preparatory  expenses  allocable  thereto,  but  excluding  any  cost  attributable  to  Deliverables  or  services  paid  or  to  be  paid; 
 B)  The  reasonable  cost  of  settling  and  paying  termination  settlement  proposals  under  terminated  subcontracts  that  are  properly  chargeable  to  the  terminated  portion  of  the  Contract;  and 
 C)  Reasonable  storage,  transportation,  demobilization,  unamortized  overhead  and  capital  costs,  and  other  costs  reasonably  incurred  by  the  Contractor  in  winding  down  and  terminating  its  work. 
 The  Contractor  will  use  generally  accepted  accounting  principles,  or  accounting  principles  otherwise  agreed  to  in  writing  by  the  parties,  and  sound  business  practices  in  determining  all  costs  claimed,  agreed  to,  or  determined  under  this  clause. 

23. TERMINATION FOR DEFAULT:  
 a)  The  State  may,  subject  to  the  clause  titled  "Force  Majeure"  and  to  sub-section  d)  below,  by  written  notice  of  default  to  the  Contractor,  terminate  this  Contract  in  whole  or  in  part  if  the  Contractor  fails  to: 
 i)  Deliver  the  Deliverables  or  perform  the  services  within  the  time  specified  in  the  Contract  or  any  amendment  thereto; 
 ii)  Make  progress,  so  that  the  lack  of  progress  endangers  performance  of  this  Contract;  or 
 iii)  Perform  any  of  the  other  provisions  of  this  Contract. 
 b)  The  State's  right  to  terminate  this  Contract  under  sub-section  a)  above,  may  be  exercised  if  the  failure  constitutes  a  material  breach  of  this  Contract  and  if  the  Contractor  does  not  cure  such  failure  within  the  time  frame  stated  in  the  State's  cure  notice,  which  in  no  event  will  be  less  than  fifteen  (15)  days,  unless  the  Statement  of  Work  calls  for  a  shorter  period. 
 c)  If  the  State  terminates  this  Contract  in  whole  or  in  part  pursuant  to  this  Section,  it  may  acquire,  under  terms  and  in  the  manner  the  Buyer  considers  appropriate,  Deliverables  or  services  similar  to  those  terminated,  and  the  Contractor  will  be  liable  to  the  State  for  any  excess  costs  for  those  Deliverables  and  services,  including  without  limitation  costs  third  party  vendors  charge  for  Manufacturing  Materials  (but  subject  to  the  clause  entitled  "Limitation  of  Liability").    However,  the  Contractor  shall  continue  the  work  not  terminated. 
 d)  If  the  Contract  is  terminated  for  default,  the  State  may  require  the  Contractor  to  transfer  title,  or  in  the  case  of  licensed  Software,  license,  and  deliver  to  the  State,  as  directed  by  the  Buyer,  any:   
 (i)  completed  Deliverables,   
 (ii)  partially  completed  Deliverables,  and,   
 (iii)  subject  to  provisions  of  sub-section  e)  below,  Manufacturing  Materials  related  to  the  terminated  portion  of  this  Contract.    Nothing  in  this  sub-section  d)  will  be  construed  to  grant  the  State  rights  to  Deliverables  that  it  would  not  have  received  had  this  Contract  been  fully  performed.    Upon  direction  of  the  Buyer,  the  Contractor  shall  also  protect  and  preserve  property  in  its  possession  in  which  the  State  has  an  interest. 
 e)  The  State  shall  pay  Contract  price  for  completed  Deliverables  delivered  and  accepted.  Unless  the  Statement  of  Work  calls  for  different  procedures  or  requires  no-charge  delivery  of  materials,  the  Contractor  and  Buyer  shall  attempt  to  agree  on  the  amount  of  payment  for  Manufacturing  Materials  and  other  materials  delivered  and  accepted  by  the  State  for  the  protection  and  preservation  of  the  property;provided  that  where  the  Contractor  has  billed  the  State  for  any  such  materials,  no  additional  charge  will  apply  .    Failure  to  agree  will  constitute  a  dispute  under  the  Disputes  clause.    The  State  may  withhold  from  these  amounts  any  sum  it  determines  to  be  necessary  to  protect  the  State  against  loss  because  of  outstanding  liens  or  claims  of  former  lien  holders. 
 f)  If,  after  termination,  it  is  determined  by  a  final  ruling  in  accordance  with  the  Disputes  Clause  that  the  Contractor  was  not  in  default,  the  rights  and  obligations  of  the  parties  shall  be  the  same  as  if  the  termination  had  been  issued  for  the  convenience  of  the  State. 
 g)  The  rights  and  remedies  of  the  State  in  this  clause  are  in  addition  to  any  other  rights  and  remedies  provided  by  law  or  under  this  Contract,  and  are  subject  to  the  clause  titled  "Limitation  of  Liability." 

24.  FORCE MAJEURE
Except for defaults of subcontractors at any tier, the Contractor shall not be liable for any excess costs if the failure to perform the Contract arises from causes beyond the control and without the fault or negligence of the Contractor.  Examples of such causes include, but are not limited to:
a) Acts of God or of the public enemy, and
b) Acts of the federal or State government in either its sovereign or contractual capacity.
If the failure to perform is caused by the default of a subcontractor at any tier, and if the cause of the default is beyond the control of both the Contractor and subcontractor, and without the fault or negligence of either, the Contractor shall not be liable for any excess costs for failure to perform, unless the subcontracted Deliverables or services were obtainable from other sources in sufficient time for the Contractor to meet the required delivery schedule.
 
 
 
25. RIGHTS AND REMEDIES OF STATE FOR DEFAULT:
a) In the event any Deliverables furnished or services provided by the Contractor in the performance of the Contract should fail to conform to the requirements herein, or to the sample submitted by the Contractor, the State may reject the same, and it shall become the duty of the Contractor to reclaim and remove the item promptly or to correct the performance of services, without expense to the State, and immediately  replace all such rejected items with others conforming to the Contract.
b) In addition to any other rights and remedies the State may have, the State may require Contractor, at Contractor's expense, to ship Deliverables via air freight or expedited routing to avoid or minimize actual or potential delay if the delay is the fault of the Contractor.
c) In the event of the termination of the Contract, either in whole or in part, by reason of default or breach by the Contractor, any loss or damage sustained by the State in procuring any items which the Contractor agreed to supply shall be borne and paid for by the Contractor (but subject to the clause entitled "Limitation of Liability").
 d) The State reserves the right to offset the reasonable cost of all damages caused to the State against any outstanding invoices or amounts owed to Contractor or to make a claim against the Contractor therefore.

26. LIMITATION OF LIABILITY:
 a)  Contractor's  liability  for  damages  to  the  State  for  any  cause  whatsoever,  and  regardless  of  the  form  of  action,  whether  in  Contract  or  in  tort,  shall  be  limited  to  two  times  the  Purchase  Price.      For  purposes  of  this  sub-section  a),  "Purchase  Price"  will  mean  the  aggregate  Contract  price;  except  that,  with  respect  to  a  Contract  under  which  multiple  purchase  orders  will  be  issued  (e.g.,  a  Master  Agreement  or  Multiple  Award  Schedule  contract),  "Purchase  Price"  will  mean  the  total  price  of  the  purchase  order  for  the  Deliverable(s)  or  service(s)  that  gave  rise  to  the  loss,  such  that  Contractor  will  have  a  separate  limitation  of  liability  for  each  purchase  order. 
 b)  The  foregoing  limitation  of  liability  shall  not  apply  (i)  to  liability  under  the  General  Provisions,  entitled  "Patent,  Copyright,  and  Trade  Secret  Protection"  or  to  any  other  liability  (including  without  limitation  indemnification  obligations)  for  infringement  of  third  party  intellectual  property  rights;  (ii)  to  claims  covered  by  any  specific  provision  herein  calling  for  liquidated  damages;  (iii)  to  claims  arising  under  provisions  herein  calling  for  indemnification  for  third  party  claims  against  the  State  for  bodily  injury  to  persons  or  damage  to  real  or  tangible  personal  property  caused  by  Contractor's  negligence  or  willful  misconduct;  or  (iv)  to  costs  or  attorney's  fees  that  the  State  becomes  entitled  to  recover  as  a  prevailing  party  in  any  action. 
 c)  The  State's  liability  for  damages  for  any  cause  whatsoever,  and  regardless  of  the  form  of  action,  whether  in  Contract  or  in  tort,  shall  be  limited  to  the  Purchase  Price,  as  that  term  is  defined  in  subsection  a)  above.    Nothing  herein  shall  be  construed  to  waive  or  limit  the  State's  sovereign  immunity  or  any  other  immunity  from  suit  provided  by  law. 
 d)  In  no  event  will  either  the  Contractor  or  the  State  be  liable  for  consequential,  incidental,  indirect,  special,  or  punitive  damages,  even  if  notification  has  been  given  as  to  the  possibility  of  such  damages,  except  (i)  to  the  extent  that  Contractor's  liability  for  such  damages  is  specifically  set  forth  in  the  Statement  of  Work  or  (ii)  to  the  extent  that  Contractor's  liability  for  such  damages  arises  out  of  sub-section  b)(i),  b)(ii),  or  b)(iv)  above. 

27. CONTRACTOR'S LIABILITY FOR INJURY TO PERSONS OR DAMAGE TO PROPERTY:
a) The Contractor shall be liable for damages arising out of injury to the person and/or damage to the property of the State, employees of the State, persons designated by the State for training, or any other person(s) other than agents or employees of the Contractor, designated by the State for any purpose, prior to, during, or subsequent to delivery, installation, acceptance, and use of the Deliverables either at the Contractor's site or at the State's place of business, provided that the injury or damage was caused by the fault or negligence of the Contractor.
b) Contractor shall not be liable for damages arising out of or caused by an alteration or an Attachment not made or installed by the Contractor, or for damage to alterations or Attachments that may result from the normal operation and maintenance of the Deliverables provided by the Contractor during the Contract.
 
28. INDEMNIFICATION:   Contractor  agrees  to  indemnify,  defend  and  save  harmless  the  State,  its  officers,  agents  and  employees  from  any  and  all  third  party  claims,  costs  (including  without  limitation  reasonable  atorneys'  fees),  and  losses  due  to  the  injury  or  death  of  any  individual,  or  the  loss  or  damage  to  any  real  or  tangible  personal  property,  resulting  from  the  willful  misconduct  or  negligent  acts  or  omissions  of  Contractor  or  any  of  its  agents,  subcontractors,  employees,  suppliers,  laborers,  or  any  other  person,  firm,  or  corporation  furnishing  or  supplying  work,  services,  materials,  or  supplies  in  connection  with  the  performance  of  this  Contract.    Such  defense  and  payment  will  be  conditional  upon  the  following:
a)  The  State  will  notify  Contractor  of  any  such  claim  in  writing  and  tender  the  defense  thereof  within  a  reasonable  time;  and
b)  Contractor  will  have  sole  control  of  the  defense  of  any  action  on  such  claim  and  all  negotiations  for  its  settlement  or  compromise;  provided  that  (i)  when  substantial  principles  of  government  or  public  law  are  involved,  when  litigation  might  create  precedent  affecting  future  State  operations  or  liability,  or  when  involvement  of  the  State  is  otherwise  mandated  by  law,  the  State  may  participate  in  such  action  at  its  own  expense  with  respect  to  attorneys'  fees  and  costs  (but  not  liability);  (ii)  the  State  will  have  the  right  to  approve  or  disapprove  any  settlement  or  compromise,  which  approval  will  not  unreasonably  be  withheld  or  delayed;  and  (iii)  the  State  will  reasonably  cooperate  in  the  defense  and  in  any  related  settlement  negotiations.
 
 29. INVOICES:  Unless otherwise specified, invoices shall be sent to the address set forth herein.  Invoices shall be submitted in triplicate and shall include the Contract number; release order number (if applicable); item number; unit price, extended item price and invoice total amount.  State sales tax and/or use tax shall be itemized separately and added to each invoice as applicable.

30. REQUIRED PAYMENT DATE: Payment will be made in accordance with the provisions of the California Prompt Payment Act, Government Code Section 927 et. seq.  Unless expressly exempted by statute, the Act requires State agencies to pay properly submitted, undisputed invoices not more than 45 days after (i) the date of acceptance of Deliverables or performance of services; or (ii) receipt of an undisputed invoice, whichever is later.
 
31. TAXES:  Unless otherwise required by law, the State of California is exempt from Federal excise taxes.  The State will only pay for any State or local sales or use taxes on the services rendered or Goods supplied to the State pursuant to this Contract.
 
32. NEWLY MANUFACTURED GOODS:  All Goods furnished under this Contract shall be newly manufactured Goods; used or reconditioned Goods are prohibited, unless otherwise specified.
 
33. CONTRACT MODIFICATION:  No amendment or variation of the terms of this Contract shall be valid unless made in writing, signed by the parties and approved as required.  No oral understanding or agreement not incorporated in the Contract is binding on any of the parties.
 
34. CONFIDENTIALITY OF DATA:  All financial, statistical, personal, technical and other data and information relating to the State's operation which are designated confidential by the State and made available to the Contractor in order to carry out this Contract, or which become available to the Contractor in carrying out this Contract, shall be protected by the Contractor from unauthorized use and disclosure through the observance of the same or more effective procedural requirements as are applicable to the State.  The identification of all such confidential data and information as well as the State's procedural requirements for protection of such data and information from unauthorized use and disclosure shall be provided by the State in writing to the Contractor.  If the methods and procedures employed by the Contractor for the protection of the Contractor's data and information are deemed by the State to be adequate for the protection of the State's confidential information, such methods and procedures may be used, with the written consent of the State, to carry out the intent of this paragraph. The Contractor shall not be required under the provisions of this paragraph to keep confidential any data or information which is or becomes publicly available, is already rightfully in the Contractor's possession, is independently developed by the Contractor outside the scope of this Contract, or is rightfully obtained from third parties.
 
 35. NEWS RELEASES:  Unless otherwise exempted, news releases pertaining to this Contract shall not be made without prior written approval of the Department of General Services.

36.  DOCUMENTATION 
a)  The  Contractor  agrees  to  provide  to  the  State,  at  no  charge,  a  number  of  all  nonproprietary  manuals  and  other  printed  materials,  as  described  within  the  Statement  of  Work,  and  updated  versions  thereof,  which  are  necessary  or  useful  to  the  State  in  its  use  of  the  Equipment  or  Software  provided  hereunder.    The  Contractor  agrees  to  provide  additional  Documentation  at  prices  not  in  excess  of  charges  made  by  the  Contractor  to  its  other  customers  for  similar  Documentation.     
b)  If  the  Contractor  is  unable  to  perform  maintenance  or  the  State  desires  to  perform  its  own  maintenance  on  Equipment  purchased  under  this  Contract  then  upon  written  notice  by  the  State  the  Contractor  will  provide  at  Contractor's  then  current  rates  and  fees  adequate  and  reasonable  assistance  including  relevant  Documentation  to  allow  the  State  to  maintain  the  Equipment  based  on  Contractor's  methodology.    The  Contractor  agrees  that  the  State  may  reproduce  such  Documentation  for  its  own  use  in  maintaining  the  Equipment.    If  the  Contractor  is  unable  to  perform  maintenance,  the  Contractor  agrees  to  license  any  other  Contractor  that  the  State  may  have  hired  to  maintain  the  Equipment  to  use  the  above  noted  Documentation.    The  State  agrees  to  include  the  Contractor's  copyright  notice  on  any  such  Documentation  reproduced,  in  accordance  with  copyright  instructions  to  be  provided  by  the  Contractor. 
 
 37.  RIGHTS  IN  WORK  PRODUCT: 
 a)  All  inventions,  discoveries,  intellectual  property,  technical  communications  and  records  originated  or  prepared  by  the  Contractor  pursuant  to  this  Contract  including  papers,  reports,  charts,  computer  programs,  and  other  Documentation  or  improvements  thereto,  and  including  Contractor's  administrative  communications  and  records  relating  to  this  Contract  (collectively,  the  "Work  Product"),  shall  be  Contractor's  exclusive  property.    The  provisions  of  this  sub-section  a)  may  be  revised  in  a  Statement  of  Work. 
 b)  Software  and  other  materials  developed  or  otherwise  obtained  by  or  for  Contractor  or  its  affiliates  independently  of  this  Contract  or  applicable  purchase  order  ("Pre-Existing  Materials")  do  not  constitute  Work  Product.    If  Contractor  creates  derivative  works  of  Pre-Existing  Materials,  the  elements  of  such  derivative  works  created  pursuant  to  this  Contract  constitute  Work  Product,  but  other  elements  do  not.    Nothing  in  this  Section  37  will  be  construed  to  interfere  with  Contractor's  or  its  affiliates'  ownership  of  Pre-Existing  Materials. 
 The  State  will  have  Government  Purpose  Rights  to  the  Work  Product  as  Deliverable  or  delivered  to  the  State  hereunder.    "Government  Purpose  Rights"  are  the  unlimited,  irrevocable,  worldwide,  perpetual,  royalty-free,  non-exclusive  rights  and  licenses  to  use,  modify,  reproduce,  perform,  release,  display,  create  derivative  works  from,  and  disclose  the  Work  Product.    "Government  Purpose  Rights"  also  include  the  right  to  release  or  disclose  the  Work  Product  outside  the  State  for  any  State  government  purpose  and  to  authorize  recipients  to  use,  modify,  reproduce,  perform,  release,  display,  create  derivative  works  from,  and  disclose  the  Work  Product  for  any  State  government  purpose.    Such  recipients  of  the  Work  Product  may  include,  without  limitation,  State  Contractors,  California  local  governments,  the  U.S.  federal  government,  and  the  State  and  local  governments  of  other  states.    "Government  Purpose  Rights"  do  not  include  any  rights  to  use,  modify,  reproduce,  perform,  release,  display,  create  derivative  works  from,  or  disclose  the  Work  Product  for  any  commercial  purpose. 
 The  ideas,  concepts,  know-how,  or  techniques  relating  to  data  processing,  developed  during  the  course  of  this  Contract  by  the  Contractor  or  jointly  by  the  Contractor  and  the  State  may  be  used  by  either  party  without  obligation  of  notice  or  accounting. 
 This  Contract  shall  not  preclude  the  Contractor  from  developing  materials  outside  this  Contract  that  are  competitive,  irrespective  of  their  similarity  to  materials  which  might  be  delivered  to  the  State  pursuant  to  this  Contract. 

 38.  PROTECTION  OF  PROPRIETARY  SOFTWARE  AND  OTHER  PROPRIETARY  DATA 
 a)  State  agrees  that  all  material  appropriately  marked  or  identified  in  writing  as  proprietary,  and  furnished  hereunder  are  provided  for  State's  exclusive  use  for  the  purposes  of  this  Contract  only.    All  such  proprietary  data  shall  remain  the  property  of  the  Contractor.    State  agrees  to  take  all  reasonable  steps  to  insure  that  such  proprietary  data  are  not  disclosed  to  others,  without  prior  written  consent  of  the  Contractor,  subject  to  the  California  Public  Records  Act. 
 b)  The  State  will  insure,  prior  to  disposing  of  any  media,  that  any  licensed  materials  contained  thereon  have  been  erased  or  otherwise  destroyed. 
 c) The  State  agrees  that  it  will  take  appropriate  action  by  instruction,  agreement  or  otherwise  with  its  employees  or  other  persons  permitted  access  to  licensed  software  and  other  proprietary  data  to  satisfy  its  obligations  under  this  Contract  with  respect  to  use,  copying,  modification,  protection  and  security  of  proprietary  software  and  other  proprietary  data..

 39. PATENT, COPYRIGHT AND TRADE SECRET INDEMNITY:  
a)  Contractor  will  indemnify,  defend,  and  save  harmless  the  State,  its  officers,  agents,  and  employees,  from  any  and  all  third  party  claims,  costs  (including  without  limitation  reasonable  attorneys'  fees),  and  losses  for  infringement  or  violation  of  any  U.S.  Intellectual  Property  Right  by  any  product  or  service  provided  hereunder.    With  respect  to  claims  arising  from  computer  Hardware  or  Software  manufactured  by  a  third  party  and  sold  by  Contractor  as  a  reseller,  Contractor  will  pass  through  to  the  State  such  indemnity  rights  as  it  receives  from  such  third  party  ("Third  Party  Obligation")  and  will  cooperate  in  enforcing  them;  provided  that  if  the  third  party  manufacturer  fails  to  honor  the  Third  Party  Obligation,  Contractor  will  provide  the  State  with  indemnity  protection  equal  to  that  called  for  by  the  Third  Party  Obligation,  but  in  no  event  greater  than  that  called  for  in  the  first  sentence  of  this  Section  39a).    The  provisions  of  the  preceding  sentence  apply  only  to  third  party  computer  Hardware  or  Software  sold  as  a  distinct  unit  and  accepted  by  the  State. 
 
Unless  a  Third  Party  Obligation  provides  otherwise,  the  defense  and  payment  obligations  set  forth  in  this  Section  39a)  will  be  conditional  upon  the  following:
 The  State  will  notify  Contractor  of  any  such  claim  in  writing  and  tender  the  defense  thereof  within  a  reasonable  time;  and 
 Contractor  will  have  sole  control  of  the  defense  of  any  action  on  such  claim  and  all  negotiations  for  its  settlement  or  compromise;  provided  that  (i)  when  substantial  principles  of  government  or  public  law  are  involved,  when  litigation  might  create  precedent  affecting  future  State  operations  or  liability,  or  when  involvement  of  the  State  is  otherwise  mandated  by  law,  the  State  may  participate  in  such  action  at  its  own  expense  with  respect  to  attorneys'  fees  and  costs  (but  not  liability);  (ii)  the  State  will  have  the  right  to  approve  or  disapprove  any  settlement  or  compromise,  which  approval  will  not  unreasonably  be  withheld  or  delayed;  and  (iii)  the  State  will  reasonably  cooperate  in  the  defense  and  in  any  related  settlement  negotiations. 
 b) Contractor may be required to furnish a bond to the State against any and all loss, damage, costs, expenses, claims and liability for patent, copyright and trade secret infringement.
c) Should the Deliverables or Software, or the operation thereof, become, or in the Contractor's opinion are likely to become, the subject of a claim of infringement or violation of a U.S. Intellectual Property Right, the State shall permit the Contractor at its option and expense either to procure for the State the right to continue using the Deliverables or Software, or to replace or modify the same so that they become non-infringing.  If none of these options can reasonably be taken, or if the use of such Deliverables or Software by the State shall be prevented by injunction, the Contractor agrees to take back such Deliverables or Software and make every reasonable effort to assist the State in procuring substitute Deliverables or Software.  If, in the sole opinion of the State, the return of such infringing Deliverables or Software makes the retention of other Deliverables or Software acquired from the Contractor under this Contract impractical, the State shall then have the option of terminating such Contracts, or applicable portions thereof, without penalty or termination charge. The Contractor agrees to take back such Deliverables or Software and refund any sums the State has paid Contractor less any reasonable amount for use or damage.
d) The Contractor shall have no liability to the State under any provision of this clause with respect to any claim of patent, copyright or trade secret infringement which is based upon:
(i) The combination or utilization of Deliverables furnished hereunder with Equipment or devices not made or furnished by the Contractor; or, 
(ii) The operation of Equipment furnished by the Contractor under the control of any Operating Software other than, or in addition to, the current version of Contractor-supplied Operating Software; or
(iii) The modification by the State of the Equipment furnished hereunder or of the Software; or
(iv) The combination or utilization of Software furnished hereunder with non-contractor supplied Software.
e) Contractor certifies that it has appropriate systems and controls in place to ensure that State funds will not be used in the performance of this Contract for the acquisition, operation or maintenance of computer Software in violation of copyright laws.

40. EXAMINATION AND AUDIT:  Contractor agrees that the State, or its designated representative shall have the right to review and copy any records and supporting Documentation pertaining to performance of this Contract. Contractor agrees to maintain such records for possible audit for a minimum of three (3) years after final payment, unless a longer period of records retention is stipulated.  Contractor agrees to allow the auditor(s) access to such records during normal business hours and to allow interviews of any employees or others who might reasonably have information related to such records.  Further, Contractor agrees to include a similar right of the State to audit records and interview staff in any subcontract related to performance of this Contract.
 
41.  DISPUTES: 
a) The parties shall deal in good faith and attempt to resolve potential disputes informally.  If the dispute persists,  Contractor shall submit to the Department Director or designee a written demand for a final decision regarding the disposition of any dispute between the parties arising under, related to or involving this Contract, unless the State, on its own initiative, has already rendered such a final decision.  Contractor's written demand shall be fully supported by factual information, and if such demand involves a cost adjustment to the Contract, Contractor shall include with the demand a written statement signed by an authorized person indicating that the demand is made in good faith, that the supporting data are accurate and complete and that the amount requested accurately reflects the Contract adjustment for which Contractor believes the State is liable. If the Contractor is not satisfied with the decision of the Department Director or designee, the Contractor may appeal the decision to the Department of General Services, Deputy Director, Procurement Division.  In the event that this Contract is for Information Technology Goods and/or services, the decision may be appealed to an Executive Committee of State and Contractor personnel.
b) Pending the final resolution of any dispute arising under, related to or involving this Contract, Contractor agrees to diligently proceed with the performance of this Contract, including the delivery of Goods or providing of services in accordance with the State's instructions.  Contractor's failure to diligently proceed in accordance with the State's instructions shall be considered a material breach of this Contract.
c) Any final decision of the State shall be expressly identified as such, shall be in writing, and shall be signed by the Department Director or designee or Deputy Director, Procurement Division if an appeal was made.   If the State fails to render a final decision within 90 days after receipt of Contractor's demand, it shall be deemed a final decision adverse to Contractor's contentions.  The State's final decision shall be conclusive and binding regarding the dispute unless Contractor commences an action in a court of competent jurisdiction to contest such decision within 90 days following the date of the final decision or one (1) year following the accrual of the cause of action, whichever is later.
 
42. STOP WORK:  
a) The State may, at any time, by written Stop Work Order to the Contractor, require the Contractor to stop all, or any part, of the work called for by this Contract for a period up to 90 days after the Stop Work Order is delivered to the Contractor, and for any further period to which the parties may agree.  The Stop Work Order shall be specifically identified as such and shall indicate it is issued under this clause.  Upon receipt of the Stop Work Order, the Contractor shall immediately comply with its terms and take all reasonable steps to minimize the incurrence of costs allocable to the work covered by the Stop Work Order during the period of work stoppage.  Within a period of 90 days after a Stop Work Order is delivered to the Contractor, or within any extension of that period to which the parties shall have agreed, the State shall either:
(i) Cancel the Stop Work Order; or
(ii) Terminate the work covered by the Stop Work Order as provided for in the termination for default or the termination for convenience clause of this Contract.
b) If a Stop Work Order issued under this clause is canceled or the period of the Stop Work Order or any extension thereof expires, the Contractor shall resume work.  The State shall make an equitable adjustment in the delivery schedule, the Contract price, or both, and the Contract shall be modified, in writing, accordingly, if: 
(i) The Stop Work 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 Contract; and
 (ii) The Contractor asserts its right to an equitable adjustment within 30 days after the end of the period of work stoppage; provided, that if the State decides the facts justify the action, the State may receive and act upon a proposal submitted at any time before final payment under this Contract. 
c) If a Stop Work Order is not canceled and the work covered by the Stop Work Order is terminated in accordance with the provision entitled Termination for the Convenience of the State, the State shall allow reasonable costs resulting from the Stop Work Order in arriving at the termination settlement.
d) The State shall not be liable to the Contractor for loss of profits because of a Stop Work Order issued under this clause.
 
 43.  FOLLOW-ON  CONTRACTS: 
 If  the  Contractor  or  its  affiliates  provides  Technical  Consulting  and  Direction  (as  defined  below),  the  Contractor  and  its  affiliates: 
 (i)  will  not  be  awarded  a  subsequent  Contract  to  supply  the  service  or  system,  or  any  significant  component  thereof,  that  is  used  for  or  in  connection  with  any  subject  of  such  Technical  Consulting  and  Direction;  and   
 (ii)  will  not  act  as  consultant  to  any  person  or  entity  that  does  receive  a  Contract  described  in  sub-section  (i).    This  prohibition  will  continue  for  one  (1)  year  after  termination  of  this  Contract  or  completion  of  the  Technical  Consulting  and  Direction,  whichever  comes  later. 
 "Technical  Consulting  and  Direction"  means  services  for  which  the  Contractor  received  compensation  from  the  State  and  includes: 
 (i)  development  of  or  assistance  in  the  development  of  work  statements,  specifications,  solicitations,  or  feasibility  studies;   
 (ii)  development  or  design  of  test  requirements;   
 (iii)  evaluation  of  test  data;   
 (iv)  direction  of  or  evaluation  of  another  Contractor;   
 (v)  provision  of  formal  recommendations  regarding  the  acquisition  of  Information  Technology  products  or  services;  or   
 (vi)  provisions  of  formal  recommendations  regarding  any  of  the  above.    For  purposes  of  this  Section,  "affiliates"  are  employees,  directors,  partners,  joint  venture  participants,  parent  corporations,  subsidiaries,  or  any  other  entity  controlled  by,  controlling,  or  under  common  control  with  the  Contractor.    Control  exists  when  an  entity  owns  or  directs  more  than  fifty  percent  (50%)  of  the  outstanding  shares  or  securities  representing  the  right  to  vote  for  the  election  of  directors  or  other  managing  authority. 
 To  the  extent  permissible  by  law,  the  Director  of  the  Department  of  General  Services,  or  designee,  may  waive  the  restrictions  set  forth  in  this  Section  by  written  notice  to  the  Contractor  if  the  Director  determines  their  application  would  not  be  in  the  State's  best  interest.    Except  as  prohibited  by  law,  the  restrictions  of  this  Section  will  not  apply:   
   to  follow-on  advice  given  by  vendors  of  commercial  off-the-shelf  products,  including  Software  and  Hardware,  on  the  operation,  integration,  repair,  or  maintenance  of  such  products  after  sale;  or   
 where  the  State  has  entered  into  a  master  agreement  for  Software  or  services  and  the  scope  of  work  at  the  time  of  Contract  execution  expressly  calls  for  future  recommendations  among  the  Contractor's  own  products.     
 The  restrictions  set  forth  in  this  Section  are  in  addition  to  conflict  of  interest  restrictions  imposed  on  public  Contractors  by  California  law  ("Conflict  Laws").    In  the  event  of  any  inconsistency,  such  Conflict  Laws  override  the  provisions  of  this  Section,  even  if  enacted  after  execution  of  this  Contract.   

44. PRIORITY HIRING CONSIDERATIONS:  If this Contract includes services in excess of $200,000, the Contractor shall give priority consideration in filling vacancies in positions funded by the Contract to qualified recipients of aid under Welfare and Institutions Code Section 11200 in accordance with PCC Section 10353.  
 
45. COVENANT AGAINST GRATUITIES:  The Contractor warrants that no gratuities (in the form of entertainment, gifts, or otherwise) were offered or given by the Contractor, or any agent or representative of the Contractor, to any officer or employee of the State with a view toward securing the Contract or securing favorable treatment with respect to any determinations concerning the performance of the Contract.  For breach or violation of this warranty, the State shall have the right to terminate the Contract, either in whole or in part, and any loss or damage sustained by the State in procuring on the open market any items which Contractor agreed to supply shall be borne and paid for by the Contractor.  The rights and remedies of the State provided in this clause shall not be exclusive and are in addition to any other rights and remedies provided by law or in equity.
 
46. NONDISCRIMINATION CLAUSE:
a) During the performance of this Contract,  Contractor and its subcontractors shall not unlawfully discriminate, harass or allow harassment, against any employee or applicant for employment because of sex, sexual orientation, race, color, ancestry, religious creed, national origin, disability (including HIV and AIDS), medical condition (cancer), age, marital status, and denial of family care leave. Contractor and subcontractors shall insure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment. Contractor and subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Government Code, Section 12990 et seq.) and the applicable regulations promulgated thereunder (California Code of Regulations, Title 2, Section 7285.0 et seq.).  The applicable regulations of the Fair Employment and Housing Commission implementing Government Code Section 12990 (a-f), set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations are incorporated into this Contract by reference and made a part hereof as if set forth in full. Contractor and its subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement.
b) The Contractor shall include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under the Contract.
 
47. NATIONAL LABOR RELATIONS BOARD CERTIFICATION:  Contractor swears under penalty of perjury that no more than one final, unappealable finding of contempt of court by a federal court has been issued against the Contractor within the immediately preceding two-year period because of the Contractor's failure to comply with an order of the National Labor Relations Board.  This provision is required by, and shall be construed in accordance with, PCC Section 10296.
 
48. ASSIGNMENT OF ANTITRUST ACTIONS:  Pursuant to Government Code Sections 4552, 4553, and 4554, the following provisions are incorporated herein:
a) In submitting a bid to the State, the supplier offers and agrees that if the bid is accepted, it will assign to the State all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. 15) or under the Cartwright Act (Chapter 2, commencing with Section 16700, of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of Goods, material or other items, or services by the supplier for sale to the State pursuant to the solicitation.  Such assignment shall be made and become effective at the time the State tenders final payment to the supplier.
b) If the State receives, either through judgment or settlement, a monetary recovery for a cause of action assigned under this chapter, the assignor shall be entitled to receive reimbursement for actual legal costs incurred and may, upon demand, recover from the State any portion of the recovery, including treble damages, attributable to overcharges that were paid by the assignor but were not paid by the State as part of the bid price, less the expenses incurred in obtaining that portion of the recovery.
c) Upon demand in writing by the assignor, the assignee shall, within one year from such demand, reassign the cause of action assigned under this part if the assignor has been or may have been injured by the violation of law for which the cause of action arose and 
(i) the assignee has not been injured thereby, or 
(ii) the assignee declines to file a court action for the cause of action.
 
49. DRUG-FREE WORKPLACE CERTIFICATION:  The Contractor certifies under penalty of perjury under the laws of the State of California that the Contractor will comply with the requirements of the Drug-Free Workplace Act of 1990 (Government Code Section 8350 et seq.) and will provide a drug-free workplace by taking the following actions:
a) Publish a statement notifying employees that unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited and specifying actions to be taken against employees for violations, as required by Government Code Section 8355(a).
b) Establish a Drug-Free Awareness Program as required by Government Code Section 8355(b) to inform employees about all of the following:
(i) the dangers of drug abuse in the workplace;
(ii) the person's or organization's policy of maintaining a drug-free workplace;
(iii) any available counseling, rehabilitation and employee assistance programs; and,
(iv) penalties that may be imposed upon employees for drug abuse violations.
c) Provide, as required by Government Code Section 8355(c), that every employee who works on the proposed or resulting Contract:
(i) will receive a copy of the company's drug-free policy statement; and,
(ii) will agree to abide by the terms of the company's statement as a condition of employment on the Contract.
 
 50.  FOUR-DIGIT  DATE  COMPLIANCE:  Contractor  warrants  that  it  will  provide  only  Four-Digit  Date  Compliant  (as  defined  below)  Deliverables  and/or  services  to  the  State.    "Four  Digit  Date  Compliant"  Deliverables  and  services  can  accurately  process,  calculate,  compare,  and  sequence  date  data,  including  without  limitation  date  data  arising  out  of  or  relating  to  leap  years  and  changes  in  centuries.    This  warranty  and  representation  is  subject  to  the  warranty  terms  and  conditions  of  this  Contract  and  does  not  limit  the  generality  of  warranty  obligations  set  forth  elsewhere  herein. 

51. SWEATFREE CODE OF CONDUCT:  
a) Contractor declares under penalty of perjury that no equipment, materials, or supplies furnished to the State pursuant to the contract have been produced in whole or in part by sweatshop labor, forced labor, convict labor, indentured labor under penal sanction, abusive forms of child labor or exploitation of children in sweatshop labor, or with the benefit of sweatshop labor, forced labor, convict labor, indentured labor under penal sanction, abusive forms of child labor or exploitation of children in sweatshop labor.  Contractor further declares under penalty of perjury that they adhere to the Sweatfree Code of Conduct as set forth on the California Department of Industrial Relations website located at http://www.dir.ca.gov/, and Public Contract Code Section 6108.
b) Contractor agrees to cooperate fully in providing reasonable access to its records, documents, agents or employees, or premises if reasonably required by authorized officials of the State, the Department of Industrial Relations, or the Department of Justice to determine Contractor's compliance with the requirements under paragraph (a).
 
52. RECYCLING:  The Contractor shall certify in writing under penalty of perjury, the minimum, if not exact, percentage of post consumer material as defined in the Public Contract Code Section 12200, in products, materials, goods, or supplies offered or sold to the State regardless of whether the product meets the requirements of Section 12209.  With respect to printer or duplication cartridges that comply with the requirements of Section 12156(e), the certification required by this subdivision shall specify that the cartridges so comply (PCC 12205).
 
53. CHILD SUPPORT COMPLIANCE ACT:  For any Contract in excess of $100,000, the Contractor acknowledges in accordance with PCC Section 7110, that:
a) The Contractor recognizes the importance of child and family support obligations and shall fully comply with all applicable State and federal laws relating to child and family support enforcement, including, but not limited to, disclosure of information and compliance with earnings assignment orders, as provided in Chapter 8 (commencing with Section 5200) of Part 5 of Division 9 of the Family Code; and
b) The Contractor, to the best of its knowledge is fully complying with the earnings assignment orders of all employees and is providing the names of all new employees to the New Hire Registry maintained by the California Employment Development Department.
 
 54.  AMERICANS WITH DISABILITIES ACT: Contractor  assures  the  State  that  Contractor  complies  with  the  Americans  with  Disabilities  Act  of  1990  (42  U.S.C.  12101  et  seq). 
 
55. ELECTRONIC WASTE RECYCLING ACT OF 2003:  The Contractor certifies that it complies with the requirements of the Electronic Waste Recycling Act of 2003, Chapter 8.5, Part 3 of Division 30, commencing with Section 42460 of the Public Resources Code, relating to hazardous and solid waste.  Contractor shall maintain documentation and provide reasonable access to its records and documents that evidence compliance.

 56. USE TAX COLLECTION:  In accordance with PCC Section 10295.1, Contractor certifies that it complies with the requirements of Section 7101 of the Revenue and Taxation Code.  Contractor further certifies that it will immediately advise State of any change in its retailer's seller's permit or certification of registration or applicable affiliate's seller's permit or certificate of registration as described in subdivision (a) of PCC Section 10295.1.

 57. EXPATRIATE CORPORATIONS:  Contractor hereby declares that it is not an expatriate corporation or subsidiary of an expatriate corporation within the meaning of PCC Sections 10286 and 10286.1, and is eligible to contract with the State.

 58. DOMESTIC PARTNERS:  For contracts executed or amended after July 1, 2004, the contractor may elect to offer domestic partner benefits to the contractor's employees in accordance with Public Contract Code section 10295.3.  However, the contractor cannot require an employee to cover the costs of providing any benefits, which have otherwise been provided to all employees regardless of marital or domestic partner status.

 
 
 
Updated : 7/31/2007