INVITATION TO BID RETURN THIS BID TO: INVITATION NUMBER

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INVITATION TO BID ITB 2008-1200-7619

Department of Public Safety
Supply Section
524 East 48th Avenue
Anchorage, Alaska 99503-7315

RETURN THIS BID TO THE ISSUING OFFICE AT:

THIS IS NOT AN ORDER DATE ITB ISSUED: December 21, 2007

ITB TITLE: Long Term Lease for One (1) Housing Unit for the Alaska State
Troopers, Dutch Harbor, Alaska,
Sealed Bids must be submitted to the DEPARTMENT OF PUBLIC SAFETY,
SUPPLY SECTION OFFICE from which they were issued and must be time and
date stamped prior to 1:30 PM on January 4, 2008 at which time they will be publicly
opened.
IMPORTANT NOTICE: If you received this solicitation from the State’s “Online Public Notice” web site,
you must register with the Procurement Officer listed on this document to receive subsequent
amendments. Failure to contact the Procurement Officer may result in the rejection of your offer.

BIDDER'S NOTICE: By signature on this form, the bidder certifies that:
(1) the bidder has a valid Alaska business license and has written the license number below or has submitted one of the following
forms of evidence of an Alaska business license with the bid:
 a canceled check for the business license fee;
 a copy of the business license application with a receipt date stamp from the State's business license office;
 a receipt from the State’s business license office for the license fee;
 a copy of the bidder’s valid business license;
 a sworn notarized affidavit that the bidder has applied and paid for a business license;
(2) the price(s) submitted was arrived at independently and without collusion and that the bidder is complying with:
 the laws of the State of Alaska;
 the applicable portion of the Federal Civil Rights Act of 1964;
 the Equal Employment Opportunity Act and the regulations issued thereunder by the State and Federal Government; and
 all terms and conditions set out in this Invitation to Bid (ITB).
If any bidder fails to comply with (1) or (2) of this paragraph, the State may reject the bid, terminate the contract, or consider the
contractor in default.

DOES YOUR BUSINESS QUALIFY
FOR THE ALASKA BIDDER’S
Louis Butler COMPANY SUBMITTING BID PREFERENCE?
DPS Contracting Officer [ ] YES [ ] NO

TELEPHONE NUMBER: AUTHORIZED SIGNATURE SEE ITB FOR EXPLANATION OF
907-561-1092, ext. 222 CRITERIA FOR QUALIFICATION.

FAX NUMBER:
907-561-9178 PRINTED NAME VENDOR TAX ID NUMBER

E-Mail: louis.butler@alaska.gov
DATE TELEPHONE NUMBER
1 of17
___________________________________ _________________________________
ALASKA BUSINESS LICENSE NUMBER FAX NUMBER
ITB 2008-1200-7619
Long Term Housing Lease – Dutch Harbor, Alaska

NOTE: This Invitation to Bid consists of:

 Standard Terms and Conditions
 Special Conditions
 General Conditions
 Sample DPS employee housing lease (Attachment #1)

STANDARD TERMS AND CONDITIONS:

1. INVITATION TO BID (ITB) REVIEW: Bidders shall carefully review this ITB for defects and
questionable or objectionable material. Bidder’s comments concerning defects and questionable or
objectionable material in the ITB must be in writing and received by the purchasing authority at least
five (5) days before the bid opening date. This will allow time for an amendment to be issued, if one is
required. It will also help prevent the opening of a defective bid, upon which award cannot be made,
and the resultant exposure of bidders’ prices. Bidders’ original comments should be sent to the
purchasing authority listed on the front of this ITB. A copy of the bidders’ comments should be
th
forwarded to Chief Procurement Officer, Department of Public Safety, 524 East 48 Ave, Anchorage,
AK 99503.

2. BID FORMS: Bidders shall use this and attached forms in submitting bid. A photocopied bid may be
submitted. Bids submitted by fax are acceptable with original signature documents to follow by mail
within five (5) business days.

3. SUBMITTING BIDS: Envelopes containing bids must be sealed, marked, and addressed as shown in
the example below. Do not put the bid number and opening date on the envelope of a request for bid
information. Envelopes with bid numbers annotated on the outside will not be opened until the
scheduled date and time.

SAMPLE RETURN ENVELOPE:

Bidder’s Return Address

Department of Public Safety
Supply Section
th
524 East 48 Avenue
Anchorage, AK 99503
ITB 2008-1200-7619
Attn: Lou Butler
Opening Date: January 4, 2008 at 1:30 PM

4. PRICES: The bidder shall state prices in the units on this ITB. Prices quoted for commodities must
be in U.S. funds and include applicable federal duty, brokerage fees, packaging, and transportation
cost to the FOB point so that upon transfer of title the commodity can be utilized without further cost.
Prices quoted for services must be quoted in U.S. funds and include applicable federal duty,
brokerage fees, packaging, and transportation cost so that the services can be provided without
further cost. Prices quoted in bids must be exclusive of federal, state, and local taxes. If the bidder
believes that certain taxes are payable by the state, the bidder may list such taxes separately, directly
below the bid price for the affected item. The state is exempt from Federal Excise Tax under
Registration No. 92-73-0006-K.

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Long Term Housing Lease – Dutch Harbor, Alaska

5. VENDOR TAX ID NUMBER: If goods or services procured through this ITB are of a type that is
required to be included on a Miscellaneous Tax Statement, as described in the Internal Revenue
Code, a valid tax identification number must be provided to the State of Alaska before payment will be
made.

6. FILING PROTEST: A bidder may protest the award of a contract or the proposed award of a contract
for supplies, services, or professional services. The protest must be filed in writing and include the
following information: (1) the name, address, and telephone number of the protester: (2) the
signature of the protester or the protester’s representative; (3) identification of the contracting agency
and the solicitation or contract at issue; (4) a detailed statement of the legal and factual grounds of
the protest, including copies of relevant documents; and (5) the form of relief requested. Protests
will be treated in accordance with Alaska Statutes (AS) 36.30.560-36.30.610.

7. CONTRACT ADMINISTRATION: The administration of this lease contract the responsibility of the
Department of Public Safety, Chief Procurement Officer.

8. AUTHORITY: This ITB is written in accordance with AS 36.30, State of Alaska Procurement Code
and 2 AAC 12, State of Alaska Procurement Regulations.

9. COMPLIANCE: In the performance of a contract that results from this ITB, the contractor must
comply with all applicable federal, state, and borough regulations, codes, and laws; and be liable for
all required insurance, licenses, permits, and bonds; and pay all applicable federal, state, and borough
taxes.

10. SUITABLE MATERIAL, ETC.: Unless otherwise specified, all materials, supplies or equipment
offered by a bidder shall be new, unused, and of the latest edition, version, model or crop and of
recent manufacture.

11. SPECIFICATIONS: Unless otherwise specified in the ITB, product brand names or model numbers
specified in this ITB are examples of the type and quality of product required, and are not statements
of preference. If the specifications describing an item conflict with a brand name or model number
describing the item, the specifications govern. Reference to brand name or number does not
preclude an offer of a comparable or better product, if full specifications and descriptive literature are
provided for the product. Failure to provide such specifications and descriptive literature may be
cause for rejection of the offer.

12. FIRM OFFER: For the purpose of aware, offers made in accordance with this ITB must be good and
firm for a period of ninety (90) days from the date of bid opening.

13. EXTENSION OF PRICES: In the case of error in the extension of prices in the bid, the unit prices will
govern; in a lot bid, the lot prices will govern.

14. BID PREPARATION COSTS: The state is not liable for any costs incurred by the bidder in the bid
preparation.

15. CONSOLIDATION OF AWARDS: Due to high administrative costs associated with processing of
purchase orders, a single low bid of $50 or less may, at the discretion of the state, be awarded to the
next low bidder receiving other awards for consolidation purposes. This paragraph is not subject to
the protest terms enumerated in “INSTRUCTION” above.

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Long Term Housing Lease – Dutch Harbor, Alaska

16. CONTRACT FUNDING: Bidders are advised that funds are available for the initial purchase and/or
the first term of the contract. Payment and performance obligations for succeeding purchases and/or
additional terms of the contract are subject to the availability and appropriation of funds.

17. CONFLICT OF INTEREST: An officer or employee of the State of Alaska may not seek to acquire,
be a party to, or possess a financial interest in, this contract if:

1) the officer or employee is an employee of the administrative unit that supervises the
the award of this contract; or
2) the officer or employee has the power to take or withhold official action so as to
affect the award or execution of the contract.

17. ASSIGNMENT(S): Assignment of rights and duties under a contract resulting from this ITB is not
permitted unless authorized in writing by the State of Alaska, Department of Administration, Division of
General Services.

18. SUBCONTRACTOR (S): Within five (5) working days of notice, the apparent low bidder must submit
a list of the subcontractors that will be used in the performance of the contract. The list must include
the name of each subcontractor and the location of the place of business for each subcontractor and
evidence of each subcontractor’s valid Alaska business license. Subcontractors can only be changed
per AS 36.30.115 (b).

19. FORCE MAJEURE: (Impossibility to perform) The contractor is not liable for the consequences of
any failure to perform, or default in performing, and of it’s obligations under this agreement, if that
failure or default is caused by any unforeseeable Force Majeure, beyond the control of and without the
fault of negligence of the contractor. For the purposes of this agreement, Force Majeure will mean
war (whether declared or not); revolution; invasion; insurrection; riot; civil commotion; sabotage;
military or usurped power; lightening; explosion; fire; storm; drought; flood; earthquake; epidemic;
quarantine; strikes; acts or restraints of governmental authorities affecting the project of directly or
indirectly prohibiting or restricting the furnishing or use of materials or labor required; inability to
secure materials, machinery, equipment or labor because of priority, allocation or other regulations of
any governmental authorities.

20. LATE BIDS: Late bids are bids received after the time and date set for receipt of bids. Late bids will
not be accepted.

21. CONTRACT EXTENSION: Unless otherwise provided in the ITB, the state and the successful
bidder/contractor agree: (1) that any holding over of the contract excluding any exercised renewal
options, will be considered as a month-to-month extension, and all other terms and conditions shall
remain in full force and effect and (2) to provide written notice to the other party of the intent to
cancel such month-to-month extension at least thirty (30) days before the desired date of cancellation.

22. DEFAULT: In case of default by the contractor, for any reason whatsoever, the State of Alaska may
procure the goods or services from another source and hold the contractor responsible for any
resulting excess cost and may seek other remedies under law or equity.

23. DISPUTES: Any dispute arising out of this agreement shall be resolved under the laws of Alaska.
Any appeal of an administrative order and any original action to enforce any provision of this
agreement or to obtain any relief from or remedy in connection with this agreement may be brought
only in the Superior Court of Alaska.

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Long Term Housing Lease – Dutch Harbor, Alaska

24. CONSUMER ELECTRICAL PRODUCT: AS 45.45.910 requires that “a person may not sell, offer to
sell, or otherwise transfer in the course of the person’s business a consumer electrical product that is
manufactured after August 14, 1990, unless the product is clearly marked as being listed by an
approved third party certification program.” Electrical consumer products manufactured before August
14, 1990 must either be clearly marked as being third party certified or be marked with a warning label
that complies with AS 45.45.910 (e). Even exempted electrical products must be marked with the
warning label. By signature on this bid the bidder certifies that the product offered is in compliance
with the law. A list of approved third party certifiers, warning labels and additional information is
available from: Department of Labor, Labor Standards & Safety Division, Mechanical Inspection
Section, P.O. Box 107020, Anchorage, Alaska 99510, (907) 264-2447.

SPECIAL CONDITIONS:

1. ORDER DOCUMENTS: Except as specifically allowed under this ITB, an ordering agency will not sign
any vendor contract. The state is not bound by a vendor contract signed by a person who is not
specifically authorized to sign for the state under this ITB. The State of Alaska Purchase Order,
Contract Award and Delivery Order are the only order documents that may be used to place orders
against the contract(s) resulting from this ITB.

2. BILLING INSTRUCTIONS: Invoices must be billed to the ordering agency’s address shown on the
individual Purchase Order, Contract Award or Delivery Order, not to the Division of General Services.
The ordering agency will make payment after it receives the merchandise or service and the invoice.
Questions concerning payment must be addressed to the ordering agency.

3. CONTINUING OBLIGATION OF CONTRACTOR: Notwithstanding the expiration date of a contract
resulting from this ITB, the contractor is obligated to fulfill its responsibilities until warranty, guarantee,
maintenance and parts availability requirements have completely expired.

ALASKA VENDOR AND PRODUCT PREFERENCES:

1. ALASKA BIDDERS PREFERENCE: Award will be made to the lowest responsive and responsible
bidder after an Alaskan bidder’s preference of five percent (5%) has been applied. The preference
will be given to a person who:

(1) holds a current Alaska business license;
(2) submits a bid for goods and services under the name on the Alaska business license;
(3) has maintained a place of business within the state staffed by the bidder, or an employee of the
bidder, for a period of six months immediately preceding the date of the bid;
(4) is incorporated or qualified to do business under the laws of the state, is a sole proprietor, and
the proprietor is a resident of the state or is a partnership, and all partners are residents of the
State
(5) if a joint venture, is composed entirely of venturers that qualify under (1) -(4) of the subsection.

2. USE OF LOCAL FOREST PRODUCTS: In a project financed by state money in which the use of
timber, lumber and manufactured lumber is required, only timber, lumber and manufactured lumber
products originating in this state shall be used unless the use of those products has been determined
to be impractical, in accordance with AS 36.15.010.

3. LOCAL AGRICULTURAL AND FISHERIES PRODUCTS: When agricultural, dairy, timber, lumber, or
fisheries products are purchased using state money, only those products harvested in Alaska, or in

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ITB 2008-1200-7619
Long Term Housing Lease – Dutch Harbor, Alaska

the case of fisheries products harvested or processed within the jurisdiction of Alaska, will be
purchased, provided they are available, of comparable quality, and priced no more than 7% higher
than products harvested outside the state, or in the case of fisheries products harvested or processed
outside the jurisdiction of the state, in accordance with AS 36.15.050.

4. ALASKA PRODUCT PREFERENCE: A bidder that designates the use of an Alaska Product which
meets the requirements of the ITB specifications and is designated as a Class I, Class II, or Class III
Alaska Product by the Department of Commerce & Economic Development shall receive a preference
in the bid evaluation in accordance with AS 36.30.332 and 3 AAC 92.010.

5. EMPLOYMENT PROGRAM PREFERENCE: If a bidder qualifies for the Alaskan bidder preference,
under AS 36.30.170 (b), and is offering goods or service through and employment program, as
defined under AS 36.30.990 (10), and is the lowest responsive and responsible bidder with a bid that
is no more than 15 percent higher than the lowest bid, the procurement officer will make award to that
bidder, in accordance with AS 36.30.170 (c) and 2 AAC 12.050.

6. ALASKANS WITH DISABILITIES PREFERENCE: If a bidder qualifies for the Alaskan bidder’s
preference, under AS 36.30.170 (b), and is a sole proprietorship owned by a person with a disability,
as defined in AS 36.30.170 (j), and is the lowest responsive and responsible bidder with a bid that is
no more than 10 percent higher than the lowest bid, the procurement officer will make the award to
that bidder, in accordance with AS 36.30.170 (e).

7. EMPLOYERS OF PEOPLE WITH DISABILITIES PREFERENCE: If a bidder qualifies for the Alaskan
bidder’s preference, under AS 36.30.170 (b), and, at the time the bid is submitted, employs a staff that
is made up of 50 percent or more peoples with disabilities, as defined in AS 36.30.170 (j), and submits
a responsive and responsible bid that is no more than 10 percent higher than the lowest responsive
and responsible bid, the procurement officer will make the award to that bidder, in accordance with AS
36.30(f).

8. PREFERENCE QUALIFICATION LETTER: Regarding preference 5,6, and 7, above, the Division of
Vocational Rehabilitation in the Department of Education maintains the list of Alaskan; (1)
employment programs that qualify for preference, (2) individuals who qualify for preference as
Alaskans with disabilities, and (3) employers who qualify for preference as employers of people with
disabilities.

As evidence of an individual’s or a business’ right to certain preference, the Division of Vocational
Rehabilitation will issued a certification letter. To take advantage of the preferences 5, 6, or 7, above,
an individual or business must be on the appropriate Division of Vocational Rehabilitation list, at the
time the bid is opened, and must provide the procurement officer a copy of their certification letter to
their bid. Bidders must attach a copy of their certification letter to their bid. The bidders’ failure to
provide the certification letter mentioned above, with their bid, will cause the state to disallow the
preference.

GENERAL CONDITIONS:

1. DEFINITION OF BIDDER: Bidder, as referenced under AS 36.30.110 (b) or AS 36.30.170(b), is the
entity who will be bound to perform under lease that results from this Invitation to Bid. An agent who is
authorized by the bidder to act on their behalf may submit a bid for the bidder, but cannot be
considered as the bidder. If an agent is submitting a bid on behalf of a bidder, evidence must be
provided upon request that that agent’s authority is in effect at the time of bid opening. Acceptable

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Long Term Housing Lease – Dutch Harbor, Alaska

evidence includes notarized letter signed by the owner or a principal of the owner authorizing the
agent to bind the owner to the offer made in the bid.

2. VALID ALASKA BUSINESS LICENSE: Per AS 36.30.110 (b), each bidder must have a valid Alaska
business license at the time designated in the Invitation to Bid for opening. A business license is
defined, for the purposes of the Procurement Code, in 2 AAC 12.990.

3. LOCATION: Dutch Harbor, Alaska.

4. TYPE AND AMOUNT OF SPACE: The total square footage required include all areas defined in the
General Building Requirements.

5. “CONTIGUOUS” DEFINED: Contiguous space shall be leased space in one (1) building or multiple
buildings uninterrupted by uses other than those of the State. Space offered shall be configured to
accommodate residential use by employees of the State of Alaska.

6. HINDRANCE TO PUBLIC MISSION: The State reserves the right to reject any bid offering a building
which by virtue of its location, close environs or any other factors, could in the State’s reasonable
judgment be predicted to create a substantial hindrance to a tenant.

7. DATE OF OCCUPANCY: Occupancy is required no later than February 1, 2008. Exact
occupancy date to be agreed to between Lessor and Lessee after lease contract award and mutual
determination of facility acceptability. If new construction is offered, incremental completion,
inspection and occupancy of individual units may be considered by the State with a commensurate
adjustment to the lease.

8. INITIAL TERM OF LEASE: Firm five (5) years.

9. RENEWALS: The State shall have the sole option to renew this lease for five (5) additional one
(1) year periods. These renewal options may be exercised solely by the State giving the Lessor
written notice prior to the expiration of each term.

Total length of this lease contract, if all option periods are exercised, is ten (10)
years.

10. LEASE RATE ADJUSTMENTS: Adjustments in the lease rate may be made if requested in writing by
the lessor at least thirty (30) days prior to the effective date of the adjustment. Such adjustments may
be made at time of lease renewal to reflect the changes in the lessor’s variable costs, and defined as
all operational cost other than debt service and profit is expressed as: thirty-five percent (35%) of the
base monthly lease cost.

The monthly lease cost may first be adjusted effective July 1, 2008 and will be made in
accordance with the percentage change in the U.S. Department of Labor Consumer Price Index (CPI-
W), for the Urban Wage Earners and Clerical Workers, All Items, Anchorage, Area, in effect for each
January through June six (6) month average of the lease term. The percentage difference between
the CPI in effect for the base year six month average January through June 2005; and each January
through June six month average thereafter will determine the maximum allowable adjustment of the
variable costs over the base monthly lease cost.

The Base Monthly Lease Cost is the total monthly lease cost offered in this ITB. The formula is expressed
as:

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Long Term Housing Lease – Dutch Harbor, Alaska

[(35% x Base Monthly Lease Cost) x % change in CPI] + Base Monthly Lease Cost = Adjusted Monthly
Lease Cost.

Example: If the base monthly lease cost was $1,000.00 per month, with a 35% variable factor and a 10%
change in the CPI, the adjusted lease cost would be computed as follows:

A. [ (35% x $1,000.00) x 10% ] + $1,000.00 = Adjusted Lease Cost

B. [ 350.00 x 10% ] + $1,000.00 = Adjusted Lease Cost

C. $35.00 + $1,000.00 = $1035.00 (new monthly lease cost)

RETROACTIVE ADJUSTMENTS WILL NOT BE ALLOWED.

11. UTILITIES AND SERVICES: The State will pay all utility costs for the offered housing unit once
occupied.

SPECIAL BUILDING REQUIREMENTS

SPECIAL BUILDING REQUIREMENTS: These special requirements modify the
GENERAL BUILDING REQUIREMENTS as follows:

1. PARKING AREA:

A. OFF STREET PARKING FOR THE EXCLUSIVE USE OF THE STATE:

 Off-street parking for the exclusive use of the State shall be provided
at no additional cost to the State for two (2) vehicles per unit.

 This parking shall be located within 100 feet walking distance of the
main entrance of the building offered utilizing main pedestrian routes
such as sidewalks. Routes using alleyways and/or other private
property are not acceptable nor are routes that could pose a danger to
pedestrians.

 All parking shall be of sufficient size to allow proper and easy parking
of the required number of cars and shall have a well drained surface
(gravel or equivalent surface is acceptable).

2. NOISE:

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Long Term Housing Lease – Dutch Harbor, Alaska

 A location having a low level of external noise is desired. The building
shall be so located a reasonable distance from commercial
enterprises.

3. GARAGE:

 A preference for at least a one-car garage; either attached or
detached; suitable to accommodate a full size vehicle.

 NOTE: Prevailing conditions of the community will supersede the
above requirement and the State will waive this garage
requirement if it increases the lease cost.

4. BARRIER:

 There is a need of a visual barrier for the Trooper Housing Unit from
any primary road.

 NOTE: Prevailing conditions of the community will supersede the
above requirement and the State will waive this garage
requirement if it increases the lease cost.

5. STORAGE:

 A preference for individual bulk, dry storage capability for each
housing unit approximately 10’ x 10’ x 8’. Bidder may offer separate or
collocated storage units at no additional lease cost.

GENERAL BUILDING REQUIREMENTS

GENERAL: The following paragraphs describe the minimum acceptable requirements
which shall govern unless specifically modified by the Special Building Requirements.

1. TYPE OF BUILDING HOUSING UNITS:

The space offered shall be a conventional frame building with each housing unit not
less than 1000 sq. feet in size; of sound and substantial construction, and shall meet all
applicable building codes, life safety codes, regulations and standard building practices
of the City, Borough and State in which located. The building shall be protected against
fire and other hazards and shall be provided with ventilation. The building and the area
in which it is located shall be clean and free from objectionable tenancy, odors, vermin,
rodents, or other conditions which, in the opinion of the State, will be detrimental to
residential occupancy.

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2. TYPE AND ARRANGEMENT OF SPACE, HOUSING UNITS:

Modern residential space with ventilation, electrical outlets, heating, lighting, floor
coverings, kitchen, three (3) bedrooms, utility room, arctic entrance, closets, and
bathroom facilities as more particularly set forth herein, is required. Space is to be in
the confines of one (1) building (preferred) or multiple buildings in a contiguous area,
and to have furnished all major appliances consisting of kitchen range, refrigerator, dish
washer, garbage disposal, clothes washer, water filtration/purification system and
clothes dryer. The exclusive right of the State to the entire building or buildings is not
mandatory but is preferred. However, the building shall be so arranged as to permit
exclusive right and entry to the leased area by the occupants. The State shall have full
access to and use of all common areas of the building.

3. INGRESS AND EGRESS, HOUSING UNITS:

All space shall be available on a 24 hour day, seven (7) days a week basis.

4. COMPLIANCE WITH LAWS:

All improvements to existing structures or new construction and all appurtenances
thereto shall conform to all applicable State, Federal and local laws, ordinances, codes
and regulations pertaining thereto. In the absence of local regulations, State codes
shall apply. Minimum requirements established herein shall not be construed as
lowering the standard established by local regulations and when local regulations and
codes contain more stringent provisions, they shall govern. The successful bidder shall
be responsible for obtaining all required permits.

5. ELECTRICAL:

A. ELECTRICAL WIRING STANDARDS: All electrical systems shall comply
with the current applicable editions of:

(1) The National Electric Code of National Board of Fire Underwriters.

(2) The rules, regulations, and codes of the State, City, or other local entity.

(3) The standardized rules of the National Electrical Manufacturer’s Associations.

The above minimum requirements shall not preclude the use of higher-grade
materials or workmanship.

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B. MAIN SERVICE FACILITIES:

 The main service facilities and meter panel shall be adequate to provide the
electrical load that will be required. This service shall be readily accessible
for inspection. Each unit to have separate utility meters if the State pays for
electricity service.

6. PLUMBING:

A. DRINKING WATER:

 Provide “running” potable water, and modern sanitary facilities, to include
sewage disposal. Each unit to have water filtration/purification system.

B. BATHROOMS:

 Not less than one complete bathroom facility in compliance with applicable
codes. Each bathroom shall have shower/tub combination unit, hot and cold
running water, mirrors, lighting, tissue dispensers, flush toilet and appropriate
ventilation to minimize condensation and possible mold/mildew development.

7. HEATING:

 A heating system shall be provided, capable of maintaining a temperature of
70 degrees in all habitable rooms at a point (3) feet above the floor. Solid
fuel heating units, or electric heating, whether primary or secondary, will not
be acceptable to meet this requirement.

 If the temperature is not maintained within the 70 degree for a period of more
than one (1) working day, the lessor shall, up receipt of a written complaint
from the State, provide suitable temporary auxiliary heating equipment, as
appropriate, to maintain the temperature in the specified range.

 If such temporary auxiliary equipment is necessary to meet normal weather
conditions for more than ten (10) consecutive working days, the lessor will not
later than the eleventh (11th) working day, initiate a continuing and diligently
applied effort to rectify the deficiency causing the failure to uniformly maintain
the temperature range required.

8. VENTILATION: Screens are to be furnished for opening windows; electrically
powered ventilation system to be furnished for the bathroom.

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9. WINDOW COVERING: All outside windows shall be equipped with drapes, blinds, or
other approved material and shall be installed, ready for use with all necessary
hardware. Window covering shall have of good quality and adequately reduce
incoming light to a comfortable level and furnish privacy.

10. FLOOR COVERING: Floors shall be covered with carpet or resilient flooring. Carpet
shall be new residential quality; if used, shall be free of holes, defects, stains and
excessive wear. Acceptance of used carpet shall be at the State’s discretion.

11. DOOR HARDWARE: All exterior doors shall be equipped complete with all
necessary lock hardware, including deadbolts.

12. RENOVATION: At least every five (5) years of occupancy or at the reasonable
request of the occupying State agency, the successful bidder shall renovate the
space covered in this Invitation to Bid by refinishing, or replacing all damaged or
worn wall, ceiling, floor coverings, window covering or built in building fixtures.

13. TELEPHONES: Adequate telephone service is required in the space offered. All
wiring and jacks necessary to support one (1) telephone service and one (1)
personal computer in each housing unit must be provided.

ADDITIONAL GENERAL CONDITIONS:

1. GENERAL: These conditions shall govern unless specifically modified by the Special Conditions.

2. LEASE AGREEMENT: The lease agreement resulting from the award of this Invitation to Bid will be
prepared by the State and will include all the terms and conditions of the Invitation to Bid.

3. DELIVERY AND CONDITIONS OF PREMISES: The space shall be delivered ready for occupancy on
the date required under the award of this lease. The term “ready for occupancy” requires the space to
meet all the requirements of the bid document and receive and receive a Certificate of Occupancy
(where applicable) from an appropriate building official. If the jurisdiction in which the premises are
located does not provide a Certificate of Occupancy, the state may at its own discretion require an

occupancy inspection in lieu of the Certificate of Occupancy. The state reserves the right to
determine when the space is ready for occupancy. If new construction is offered, incremental
completion, inspection and occupancy of individual units may be considered by the State with a
commensurate adjustment to the lease.

4. RESTORATION LIABILITIES: The State is not liable for restoration of improvements required to
meet the specification requirements set forth by this Invitation to Bid and those made prior to final
acceptance for occupancy.

5. CHANGES: Changes in the space proposed either by the successful bidder or by the State after
acceptance of the offer, shall be mutually agreed upon by both parties in writing before such changes
are actually accomplished.

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6. FIRE PREVENTION: The successful bidder shall maintain the premises in keeping with good fire
prevention practices. The State reserves the right at reasonable times to enter and make fire
prevention and fire protection inspections of the building and space occupied. If any fire hazard is
detected through inspection of the building, it shall be promptly corrected by the successful bidder.
Smoke and Carbon Monoxide detectors are required in each housing unit.

7. ACCIDENT HAZARD: The successful bidder shall maintain the building free of structural or
mechanical hazards. If any accident hazards relative to the structure or building operating equipment
are detected through inspections of the space, they shall be promptly corrected by the successful
bidder.

8. INTERRUPTION OF UTILITIES AND SERVICES: In the even that, in the reasonable judgment of the
Lessee the lawful enjoyment of the demised premised is threatened by the interruption or severance
of utilities and services provided hereunder the Lessor, and when such interruption or severance is
due to deliberate, or negligent, or tacitly negligent act of the Lessor, the Lessee shall have the right to
bind such utilities and services as are threatened, in the name of the Lessee. The Lessee shall be
free to deduct from the lease payments and costs of such utilities and services, together with all
necessary deposits and the Lessee’s actual administrative costs necessary to procure the utilities and
services.

9. MAINTENANCE AND REPAIR: The successful bidder shall assume sole
responsibility for the maintenance of the demised premises. This responsibility
encompasses keeping the premises in good repair and tenantable condition. The term “repair”
includes repairs of any type including but not limited to exterior and interior, structural and
nonstructural, routine or periodic, except as in case of damage arising from the negligence of the
State’s agents or employees. The successful bidder agrees that after reasonable notice in writing by
the State to the effect that the repair, maintenance, or service obligations as specified herein for the
demised premises have not been satisfactorily fulfilled, the State can then obtain competent workers
to correct the deficiencies. All related costs shall be paid for by the successful bidder either by direct
payment or by the State making the payment to the workers and reducing the rent accordingly.
Lessor shall provide name and phone number of local point of contact for maintenance service
requests.

10. TENANTABILITY: Facilities provided must be tenantable and comply with all laws pertaining to
tenantability and the performance of this provision. The Lessor agrees to pay the cost of any building
alterations which may be needed for purposes of correcting any casualty damage or any violation of a
law cited by a regulatory agency. If the premises or any part thereof are rendered untenantable by
casualty or public authority, a proportionate part of the rent, according to the extent of such
untenantability, will be abated and suspended until the premises are again made tenantable and
restored to their former condition.

If the premises or a substantial part thereof are rendered untenantable and so remain for a period of
ten (10) days, the Lessee may, at it’s option, terminate the lease by written notice to the Lessor. This
ten (10) day period shall not be so restrictively construed that the Lessee is bound to remain in the
leased facility if the Lessee’s business cannot be safely executed. The Lessee’s determination shall
be controlling regarding tenantability. If untenantable conditions are determined to exist, the Lessee
has the right to move else where.

If the premises are made tenantable again within the ten (10) day period the Lessee will return to the
facility. The Lessee has the right to recover any excess costs, over the abated lease payments,
occasioned by relocation due to such untenantable conditions.

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In the event the Lessor fails to correct damage or violation(s) within the ten (10) day period the Lessee
will have the right to terminate the lease, or will have the option of hiring competent workers to correct
the damage or violation(s). The Lessor will bear the cost of all such labor and materials. The Lessor
agrees that damage or violations corrections performed by the Lessee will not be construed to
constitute a breach of the terms of this Invitation to Bid and the subsequent lease.

11. PEACEFUL OCCUPANCY: If the State shall pay the rent as provided by the lease issued as a result
of this Invitation to Bid and shall keep, observe and perform all of the other covenants of the lease by
it to be kept, performed and observed, the State shall and may peaceably and quietly have, hold, and
enjoy the premises for the term of such lease.

12. PAYMENT DEFAULT: If the State shall at any time be in default in the payment of rent, or in the
performance of any of the terms of the lease issued as a resulted of this Invitation to Bid and shall fail
to remedy such default within sixty (60) days after written notice thereof from the successful bidder. It
shall be lawful for the successful bidder to enter upon the premises and repossess and enjoy the
same as if the lease and everything therein contained on the part of the successful bidder to be done
and performed shall cease and terminate without prejudice, however, to the right of the successful
bidder to recover from the State all rent due up to the time of such entry. In case of any default and
any entry by the successful bidder, the successful bidder may relet the premises for the remainder of
the term for the highest rent obtainable and may recover from the State any deficiency between the
amount so obtained and rent specified by the lease.

13. EXTENSION: Any holding over after the expiration date of the lease issued as a result of this
Invitation to Bid or any extension of rent thereof, shall be construed to be a tenancy from month-month
at the same monthly rental and on the terms and conditions as specified by the lease.

14. TERMINATION: The payments of rent by the State are subject to appropriation of funds by the
Legislature of the State of Alaska and the lease issued as a result of this Invitation to Bid may be
terminated due to lack of such appropriations.

15. DELAYS: Time is of the essence. Delays in completing the building or in installation of the
equipment and furnishings by the successful bidder due to unforeseeable causes beyond the control
and without fault or neglect of the successful bidder may be excused. Unforeseeable causes may
include but are not limited to: (1) act of God, (2) public enemy, (3) act of the Government or State in
either its sovereign or contractual capacity, (4) acts of another contractor in the performance or a
contract with the Government or State, (5) fires, (6) floods, (7) epidemics quarantine restrictions, (8)
strikes, (9) freight embargoes, (10) unusual severe weather conditions, and (11) delays by
subcontractors or suppliers unusual in nature. Notification of such delays must be made to the State’s
Contracting Officer in writing within ten (10) days of the commencement of the unforeseeable cause.
The State’s Contracting Officer shall ascertain the facts and the extent of delay and the extent of the
time for completing the project. The State’s Contracting Officer may approve an extension when, in
his/her judgment, the findings of fact justify an extension. This finding of fact thereon shall be final
and conclusive, unless the successful bidder shall appeal to the Commissioner of Administration
pursuant to AS 36.30.620. If no such appeal to the Commissioner of Administration is taken, the
decision of the Contracting Officer shall be final and conclusive.

Pending final decision on an extension of time hereunder, the successful bidder shall proceed
diligently with the performance of the contract. Inability to comply with State, City, or local construction
or zoning laws or ordinances or restrictive covenants shall not be regarded as unforeseeable cause.
However, if the successful bidder shall acquire the property and interest therein through assignment
from the State and the course of such acquisition the successful bidder is unable to comply with such
laws or ordinances or restrictive covenants, then the agreement shall become terminated with no

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further liability on the part of either party unless such laws, ordinances or restrictive covenants are
suitably changed or removed.

16. STATE’S RESPONSIBILITIES: The State will: (1) Pay said rent at the times and place to the
successful bidder in advance on the first day of each and every month of said term of lease. (2) Pay
all utilities (3) Use and occupy the premises in a careful and proper manner. (4) Not use or occupy
the premises for any unlawful purposes. (5) Not use or occupy the premises or permit the same to be
occupied for any purpose deemed extra-hazardous on account of fire or otherwise. (6) Make no
alterations or additions in or to the premises without the written consent of the successful bidder. (7)
Permit the successful bidder to enter upon the premises at all reasonable times to examine the
conditions of same.

17. HOLD HARMLESS: The Lessor shall indemnify, save harmless, and defend the State, its officers,
agents, and employees, from liability of any nature of kind, including costs and expenses for or on
account of any and all suits or damages of any character whatsoever resulting from injuries or
damages sustained by any person or persons or property by virtue of any act performed by the Lessor
or the Lessor’s agents and employees pursuant to this lease; the Lessor shall also assume all
insurable risks and bear any loss or injury to property or persons occasioned by neglect or accident
during the tenure of this lease, excepting only sole negligence of the Lessee.

18. INSURANCE: Without limiting contractor’s indemnification, it is agreed that the contractor will
purchase at its own expense and maintain in force at all times during the performance of services
under this agreement the following policies of insurance. Where specific limits are shown, it is
understood that they shall be the minimum acceptable limits. If the Contractor’s policy contains higher
limits, the State will be entitled to coverage to the extent of such higher limits. Certificates of Insurance
must be furnished to the contracting officer, which must provide for a 30-day prior notice of
cancellation, nonrenewal or material change.

Proof of insurance is required prior to award for the following:

A. WORKER’S COMPENSATION INSURANCE: The contractor shall
provide and maintain, for all employees for the contractor engaged in work
under this contract, Worker’s Compensation Insurance as required by AS
23.30.045. The contractor will be responsible for Worker’s Compensation
Insurance for any Subcontractor who directly or indirectly provides
services under this contract. This coverage must include statutory
coverage for states in which employees are engaging in work and
employer’s liability protection not less than $100,00 per person, $100,00
per occurrence. Where applicable, coverage for all federal acts (i.e.
U.S.L. & H. and Jones Acts) must also be included.

Failure to supply satisfactory proof of insurance within the time required will
cause the State to declare the bidder nonresponsible and to reject the bid.

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ITB 2008-1200-7619

BID SCHEDULE - RESPONSE SHEET

1. Is the owner a Sole Proprietorship? Corporation
Partnership _________________ Joint Venture or other ? If “Other”,
list what type:

2. If owned by a party other than the bidder, list that party’s name and address:

__________________________
______________________________________________________________________________

3. If owned by a party other than the bidder, list bidder’s relationship to the owner:

________________

If bidder has some type of agent relationship with the owner, please attach a copy of
the owner’s authorization.

4. Bidder’s Business Information:

NAME: ______________________________________________________

ADDRESS: ___________________________________________________

___________________________________________________

PHONE: ____________________________________________________

FAX: _____________________________________________________

E-MAIL: _____________________________________________________

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METHOD OF AWARD: Award will be made to a responsive and responsible bidder
offering the lowest total rental price over the five (5) year initial term lease.
*************************************************************************************************************************
BIDDER’S CAUTION

FAILURE TO INDICATE A NUMBER ON THE LINES OF THE BID SCHEDULE BELOW FOR
“MONTHLY PRICE”, “TOTAL RENTAL PRICE” AND “APPROXIMATE NUMBER TOTAL NET
USABLE SQ. FT.” SHALL BE CAUSE FOR THE STATE TO REJECT THE BID AS NONRESPONSIVE.

THE NUMBER OF TOTAL NET USABLE SQ. FT. OF RESIDENTIAL SPACE OFFERED PER UNIT, AS
SHOWN IN THE BID SCHEDULE BELOW, SHALL EQUAL NOT LESS THAN 1,500.
*************************************************************************************************************************

BID SCHEDULE

$ X one (1) unit = $
UNIT PRICE MONTHLY PRICE

$ _______________X 60 months = $
MONTHLY PRICE TOTAL RENTAL PRICE

****************************************************************************************************
APPROXIMATE NUMBER OF TOTAL NET USABLE SQUARE FEET PER UNIT OF
RESIDENTIAL SPACE OFFERED FOR LEASE TO THE STATE:

IF OFFERED UNITS ARE NEW CONSTRUCTION, EXPECTED ENERGY
EFFICIENCY IMPROVEMENT (EXPRESSED AS A PERCENTAGE) AS COMPARED
TO EXISTING HOUSING CONSTRUCTION IN THE IMMEDIATE GEOGRAPHIC
AREA: _______________________________________________________________

IDENTIFY TYPE OF HEATING AND LIGHTING SYSTEMS EXPECTED TO BE USED
TO RESULT IN THE PROPOSED ENERGY EFFICIENCY IMPROVEMENT:
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

 ATTACH PROPOSED CONFIGURATION / FLOOR PLAN TO YOUR BID (AND
PHOTOS, IF AVAILABLE) TO FACILITATE PROPERTY EVALUATION

Recordable legal description (include lot, block, townsite, plat and /or U.S. Survey
number and recording district):

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END OF BID SCHEDULE

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