Amendment to State Information Technology Contract Services
Letter of Understanding
Computer Hardware, Network, and Peripheral Repair and Maintenance
This Agreement is made between the State of Wisconsin (the State) as represented by the
_________________________ (Contracting Agency) and _____________________________(Contractor)
commencing on the date this Agreement is signed by the Contracting Agency.
This Agreement shall become effective commencing on the date this Agreement is signed by the Contracting
Agency and shall remain in effect for one (1) year from that date.
The State agrees to acquire from Contractor and Contractor agrees to furnish Computer Hardware,
Network, and Peripheral Repair and Maintenance as identified specifically in accordance with the
requirements, terms and conditions specified herein.
This Agreement with attachments and purchase orders issued hereunder constitutes the entire agreement of
the parties in relation to the subject matter hereof, and no other agreements or understandings, verbal or
otherwise, exist between the parties except as herein expressly set forth.
CONTRACTOR CONTRACTING AGENCY
For: For: ________________________
Delete Items in red in final copy of the Amendment
1.0 SCOPE OF MAINTENANCE:
1.1 PROBLEM IDENTIFICATION: Contractor will exert best efforts to perform all fault
isolation and problem determination including hardware, software and network problem
diagnosis for the equipment covered by this of this Amendment. The vendor is responsible
for the identification of a problem, even if the source of the problem is different than that
originally suspected or reported by the State.
1.2 MAINTAIN GOOD WORKING CONDITION: Contractor will render maintenance
service to keep equipment in, or restore equipment to good working order. This
maintenance service includes preventive maintenance service, lubrication, adjustments,
installation of safety changes, and installation of engineering changes based upon the
specific needs of the individual item of equipment. This service shall include the repair
and replacement of maintenance parts that Contractor deems necessary to restore the
equipment to good working order. For purposes of this Agreement, equipment restored to
good working condition shall be defined as equipment that will perform all functions as
prescribed in the manufacturer's published specifications for such equipment as originally
1.3 REPAIRS NOT INCLUDED: The following services are outside the scope of this
Agreement. Upon request of the State, these services may be performed at the discretion
of Contractor and, if performed, will be at the applicable per call rates and terms.
1.3.1. Repair of damage resulting from use of supplies (e.g. paper, ink cartridges, etc.)
not recommended by the original manufacturer.
1.3.2. Repair of damage resulting from the State or an authorized agent of the State
making changes, adding or removing accessories, attachments or other devices
not in accordance with the manufacturer's specifications and/or
1.3.3. Service to bring any equipment into compliance with any law, rule or regulation
of any government authority having jurisdiction or any provision of any
applicable insurance policy, or service to correct any health hazard.
1.3.4. Repair of damage due to neglect or use of equipment for purposes other than that
for which it is designed.
2.0 MAINTENANCE TYPES AND SERVICE LEVELS (delete any types that do not apply to
Notwithstanding events caused by Force Majeure, the service levels set forth below must be met and
maintained by Contractor. Failure of Contractor to meet or maintain these service levels provides the State
the options of collecting liquidated damages or of terminating either all or part of this Agreement.
2.1 STATE DEPOT MAINTENANCE: Maintenance repair will be performed at State depot
location(s) (WHERE ?). This maintenance plan involves the temporary replacement by
the State of faulty equipment with spare or float equipment until the faulty equipment can
be repaired and returned to service.
2.1.1. Contractor maintenance personnel will visit the State depot location at least
_______(monthly, weekly, daily) or as the State agency reports the number of
failed units to be _______ or greater.
2.1.2. Contractor will dispatch repair personnel to the designated depot location within
two (2) hours of notification of service call. The equipment will be repaired and
ready for production within forty-eight (48) hours of notification.
2.1.3. Contractor will provide Problem Description Cards for the State agency to attach
to the failing units. These cards will identify the nature of the failure on units to
2.1.4. Upon completion of the repair, Contractor's maintenance personnel will sign off
on the Problem Description Card, stating the nature of the repair, date, contact
person, and contact phone number.
2.2 CONTRACTOR REPAIR CENTER MAINTENANCE: : Maintenance repair will be
performed at Contractor's repair center location(s) (WHERE?). This maintenance plan
involves the temporary replacement by the Contractor of faulty equipment with spare or
float equipment until the faulty equipment can be repaired and returned to service.
2.2.1. Contractor will provide Problem Description Cards for the State agency to attach
to the failing units. These cards will identify the nature of the failure on units to
2.2.2. Maximum repair time for equipment received at the Contractor's repair center is
forty-eight (48) hours after receipt of the equipment excluding Saturdays,
Sundays, and State recognized holidays.
2.2.3. Upon completion of the repair, Contractor's maintenance personnel will sign off
on the Problem Description Card, stating the nature of the repair, date, contact
person, contact phone number, and return the card with the repaired equipment
to the State site.
2.2.4. All equipment returned to Contractor's repair centers shall be shipped freight
prepaid and packed utilizing the original manufacturer's container and packing
material or its equivalent. Contractor shall bear the expense of shipment of
repaired equipment to State sites.
2.3 ON-SITE MAINTENANCE: Maintenance repair will be performed at the State
location(s) where the equipment normally resides.(Specify locations, or say that it may
be anywhere in the State). If equipment cannot be repaired or replaced on-site, it may be
removed by the vendor, with the Agency's approval, and returned to the site for re-
installation by the vendor after repair. Equipment shall be given a priority of 1, 2, or 3.
Table A and the definitions below specify the service level that Contractor agrees to
provide for any equipment with a particular priority.
2.3.1. "Availability" - Vendor shall provide a toll-free number, available during these
hours that the State can use to notify the Vendor that a problem exists.
2.3.2. "Callback Time" - Vendor shall respond with a telephone call back to the State
within of receiving the notification of a problem.
2.3.3. "Problem Investigation" - Vendor shall be actively taking measures addressing
the problem within this time after notification of a problem.
2.3.4. "Escalation" - Contractor agrees that Contractor's will escalate problems reported
by the State every (or less) of down time if no resolution of the problem is
eminent. If the State notifies Contractor that a problem has recurred, Contractor
agrees that it will escalate the problem to the next level above the highest level
reached during the previous event.
2.3.5. "Onsite Response" - Contractor shall provide within this time all personnel and
equipment necessary to resolve the problems at the location of the equipment
2.3.6. "Maximum Repair" - Maximum repair time for on-site maintenance will be this
time after notification by the State that remedial maintenance is required
excluding Saturdays, Sundays, and State recognized holidays.
2.3.7. "Resolution Notification" - Vendor shall notify the State within this time of final
resolution of the problem
PRIORITY 1 PRIORITY 2 PRIORITY 3
Call Back Time
3.1 QUALITY: Maintenance parts may or may not be manufactured by the original
equipment manufacturer, may be altered by Contractor to enhance maintainability and
may be new or reconditioned to perform as new but will be acceptable to the original
3.2 PURCHASING: Contractor agrees to furnish to the State price lists and instructions for
ordering spare parts for all items proposed in the Contractor's response to the State's
solicitation document. Contractor agrees that these spare parts will be available, either to
the State or to a third-party maintenance contractor for a minimum of seven (7) years from
the date of purchase by the State. Contractor agrees to let the State acquire parts from
other State contracts if better pricing is available than to the Contractor.
3.3 AVAILABILITY/PARTS STORAGE: Parts shall be delivered to the State within
________ hours/business days. Contractor agrees to store _________(sufficient, the
following list of) parts at __________(Contractor's, State's, Depot). Contractor agrees
to subcontract the maintenance of the equipment to the OEM if that is the only way of
obtaining parts within the agreed upon timeframe.
3.4 SHIPPING: Contractor agrees to utilize the most effective method necessary to obtain
parts within the agreed upon timeframe. Costs for shipping parts shall be the
responsibility of the __________(State, Contractor).
3.5 REPLACEMENT SYSTEM: Contractor agrees to provide an entire replacement system,
including but not limited to all hardware, software, and interfaces required, if a repair to
equipment designated as _____________ (critical, important, Priority 1, etc.) can not
be repaired within ________ (24, 48) hours.
4.0 COSTS (remember to get a discount for annual prepayment, and having a Help Desk).
4.1 COST SCHEDULE: The State shall pay Contractor a __________(annual, hourly,
monthly) sum of $__________ in exchange for Services as stated in Section X. of this
Amendment. Except for the following, there shall be no additional charges for
maintenance of the systems covered by this Amendment. (use the table to explain the
costs agreed upon):
Parts and Materials ___% above Contractor's cost
Labor $____ per hour
Travel $_____ per (hour, mile, trip)
Overtime Normal Charge x 1.5
4.2 CHANGES : Any price stated as a minimum guaranteed percent discount off of
manufacturer's list price shall not change over the entire term of the contract. A vendor
may offer an Agency a more favorable discount at any time. All other prices shall be
fixed for one (1) year from the beginning date of the contract and may not increase by
more than five percent (5%) per year thereafter. The maximum increase shall be
calculated by multiplying the current price, stated either as a percent of equipment cost or
a per hour rate, by 1.05.
4.3 OVERTIME: Normal charges apply 7:00 am to 6:00 p.m. Monday through Friday with
the exception of the following State holidays:
January 1 New Year's Day
Third Monday in January Martin Luther King Jr. Day
Last Monday in May Memorial Day
July 4th Independence Day
First Monday in September Labor Day
Fourth Thursday in November Thanksgiving
December 25 Christmas
If the vendor's holidays are not the same as the State's, the vendor still must provide
maintenance on their holidays at normal rates and response times.
4.4 TRAVEL EXPENSES: Contractor shall not charge the State for any travel expense
without State's prior written approval. Upon obtaining the State's written approval,
Contractor shall be authorized to incur travel expenses payable by the State only to the
extent provided for in the State employees Pay Plan by Wisconsin Statutes and
Administrative Rules. Time spent after arrival at the site awaiting the arrival of additional
personnel or parts shall result in no additional costs to the State. Transportation involved
in removing and returning equipment that should have been repaired at the State's location
is not billable.
4.5 AUTHORIZED CHARGES: The State shall not be responsible for charges not
authorized by the State. The State shall not be responsible for charges due to faulty
diagnosis. The Contractor is responsible for the correct diagnosis and resolution of a
problem, even if it is found to be different than what was originally reported or suspected
by the State or Contractor.
4.6 FINAL PROBLEM RESOLUTION: The State shall only pay for the final resolution of a
problem. The Contractor shall warrant all repairs for ninety (90) days and the State shall
not pay any charges if the problem needs to be resolved again within the warranty period
or for any problems created by the original problem resolution. For per call maintenance
services, the State shall pay only the cost of parts that directly resolved the original
problem reported. Contractor shall be responsible for any parts that did not have a direct
effect on the resolution of the problem or parts damaged by the attempts to resolve the
original problem. Contractor shall be responsible for loss or damage of any of spare parts
and/or equipment while in the possession of Contractor.
5.0 ADDITIONAL TERMS AND CONDITIONS
5.1 GEOGRAPHIC LOCATION: Vendor must be able to deliver products and services
everywhere in the State of Wisconsin in the timeframes and manner specified in this RFB.
Vendors may use subcontractors but are responsible for the performance of the
subcontractor (see Attachment G, Sections 22.0 and 23.0
5.2 CHANGE OF VENDOR: The State reserves the right of an Agency to change vendors
at any time and for any reason. Vendor must agree to continue providing acceptable
service during any transition period. Vendor must agree to assist an Agency with the
transition planning to a different vendor. Vendor must agree to make available at no
additional cost, all software, software applications, file formats, and documentation
necessary for the State to easily transition to a different vendor.
5.3 CHANGES AND/OR MODIFICATIONS: Contractor sponsored modifications and/or
engineering changes shall be made at no additional charge. Contractor must obtain
written permission from the State prior to any change or modification. The State reserves
the right at all times to schedule these Contractor sponsored modifications and/or
engineering changes to minimize the impact on the daily operations of the State.
Contractor warrants that, to their knowledge, installation of such engineering changes
and/or field modifications as are required or recommended from time to time, shall not
cause the performance of the products(s) modified to degrade below the standard of
performance established for acceptance of the products(s) or as described in Contractor's
technical specifications and accepted by the State. The State may invoke the Liquidated
Damages clause of this Agreement if engineering changes and/or field modifications result
in an unacceptable performance level of the products(s).
5.4 MAINTENANCE START-UP: Maintenance service shall begin upon expiration of the
original manufacturer's warranty period. The State will provide Contractor with an order
to start service at least thirty (30) days prior to warranty expiration or to the date the State
intends to commence receiving maintenance service.
Contractor may inspect any item(s) prior to commencing maintenance services. If an item
is found to not be in good working condition, Contractor will notify the State at least
fifteen (15) days prior to the date the State intends to commence receiving maintenance
service for that item.
In the absence of notification to the State that an item of equipment is not in good
operating condition, Contractor shall be deemed to have accepted the equipment for
maintenance service on the date specified in the State's order.
5.5 DISCONTINUATION OF MAINTENANCE: The State may, at its sole option,
withdraw any item of equipment from maintenance service by Contractor at any time upon
thirty (30) calendar days notice without any liability. Contractor agrees to refund ninety
percent (90%) of the prorated unused portion of any prepaid amount paid by the State.
Upon the decision to discontinue maintenance of an item under this Agreement,
Contractor agrees to assure that the items are in operable condition before terminating
maintenance. If repairs are necessary, Contractor will repair the item at no charge to the
5.6 MAINTENANCE CONTINUITY: Contractor agrees to make maintenance services
available to meet the State's ongoing performance requirements for the entire term of this
Agreement. If Contractor is unable to provide adequate maintenance services or upon
expiration or termination of this Agreement, Contractor or its receiver or trustee shall
provide the following items to the State:
5.6.1. All information necessary for the State to perform or to have such maintenance
service performed including, but not limited to, logic diagrams maintenance
manuals, system and unit schematics.
5.6.2. A listing of suppliers capable of supplying necessary spare parts and equipment
5.6.3. Available information adequate to permit the State to have spare parts
5.6.4. A listing of spare parts and their frequency of use to enable the State to create a
centralized inventory of spare parts.
5.6.5. Any information that is identified by Contractor as proprietary information shall
be maintained in confidence by the State except where disclosure to a third party
is necessary in order for the State to continue the maintenance service.
TYPE (workstation, server, printer, etc.)
Define what is included in a workstation, server, etc (keyboard, monitor, mouse ,???)