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HomeMy WebLinkAbout98-04 RESOLUTIONRESOLUTION NO, 98-04, A RESOLUTION TO APPROVE A TEN YEAR LEASE OF A PORTION OF THE TERMINAL BUILDING TO THE UNITED STATES POSTAL SERVICE FOR A BEGINNING ANNUAL RENT OF $19,200.00 WITH TWO 5 YEAR OPTIONS TO RENEW BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves the lease (attached as Exhibit "A") of 2,100 square feet of the terminal at the Fayetteville Municipal Airport to be used as the Greenland Post Office and 12 parking spaces for a beginning annual rent of $19,200.00 for the first five years, and $23,040.00 for the next five years with two 5 year options to renew at $27,648.00 and then $33,177.60 annual rental. The City Council authorizes Mayor Coody to execute this lease. PASSED and APPROVED this the 6th day of July, 2004. ATTEST: S. (.1% • S, _�� 01•••••"-(5).% • • ip= :FAYETTEVILLE: kJ :9s•9190NSp:.' JtS .S,'G .roN.... By: 6)014,01.44.)&ate-) SONDRA SMITH, City Clerk By: APPROVED: DAN COODY, Mayor • P. • SOUTHWEST FACILITIES SERVICE OFFICE July 22, 2004 CERTIFIED MAIL 7000 0520 0021 8276 8028 RETURN RECEIPT REQUESTED RAY BOUDREAUX FAYETTEVILLE MUNICIPAL AIRPORT 4500 S SCHOOL AVE SUITE F FAYETTEVILLE AR 72701-8016 RE• Greenland, AR 72737 Acceptance of Altemate Quarters R ECFJVED JUL 2 6 2004 Alkruelf We have accepted your proposal wherein you offered to lease existing space located in the former Fayetteville Municipal Airport to be utilized as a new Main Post Office for Greenland, AR. The primary lease term will be for a period of ten (10) years at a rental of $19,200 per annum. The agreement also includes two, five-year renewal options. We are anticipating construction for the finish -out to begin the first week of September. The lease effective date will commence at the completion and acceptance by the Postal Service of the interior renovation. The effective date of the lease will be inserted on Page 1 and a copy provided to you at that time. An accepted copy of the proposal is enclosed. Should you have any questions, please contact Mr. Larry Brooks at 214.819.7271. Sincerel arry L. Andrews Contracting Officer Enclosures PO Box 667180 DALLAS TX 75266-7180 TELE: (214) 819-7201 FAX: (214) 819-7280 7-a4tit - • LISPS Se 4 C xfaAticice h an fri2471,,aiL .K. ire IttA cio SPs atarcut 4 54) Aztt 44ta tArtti • • UNITED STATES POSTAL SERVICE. pF Fin/En J U L 2 6 2004 Lease Facility Name/Location GREENLAND - MAIN POST OFFICE (043663-002) *** GREENLAND, AR 72737-9998 ANr U S Washington COUNTY Project: G05686 This LEASE, made and entered into by and between CITY OF FAYETTEVILLE hereinafter called the Lessor, and the United States Postal Service, hereinafter called the Postal Service: In consideration of the mutual promises set forth and for other good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties covenant and agree as follows: 1. The Lessor hereby leases to the Postal Service and the Postal Service leases from the Lessor the following premises, hereinafter legally described in paragraph 8, in accordance with the terms and conditions described herein and contained in the 'General Conditions to U.S. Postal Service Lease,' Section Al attached hereto and made a part hereof. Upon which is a one story rock and masonry building and which property contains areas, spaces, improvements, and appurtenances as follows: AREA Net Floor Space Platform Parking and Maneuvering Other: Driveway Landscaping Sidewalks SQ. FEET 2,100 70 AREA Joint Use/Common Areas: Parking and Maneuver Entrance, ext. walks Joint/Common Use parking areas are an estimate for space and drives that will normally be used by the joint use parking lot in front of the building. Total Site Area: 2,100 SQ. FEET 5,000 500 11 parking spaces + 1 handicap post office out of the large 2. RENTAL: The Postal Service will pay the Lessor an annual rental of: $19,200.00 ***Nineteen Thousand Two Hundred and 00/100 Dollars*** payable in equal installments at the end of each calendar month. Rent for a part of a month will be prorated. Rent checks shall be disbursed as follows: payable to: CITY OF FAYETTEVILLE C/O AVIATION & ECONOMIC DEV 4500 S School Ave Suite F Fayetteville.AR 72701-8016 unless the Contracting Officer is notified, in writing by Lessor, of any change in payee or address at least sixty (60) days before the effective date of the change. 3. TO HAVE AND TO HOLD the said premises with their appurtenances: FIXED TERM: The term beginning and ending for a total of 10 years. RELEASE1 (May 1999, v2.2) 1 • GG --CA UNITED STATES POSTAL SERVICE. • • Lease 4. RENEWAL OPTIONS: The Lease may be renewed at the option of the Postal Service, for the following separate and consecutive terms and at the following annual rentals: RENEWAL EFFECTIVE EXPIRATION PER ANNUM OPTION DATE DATE RENTAL 1 /1/2014 /31/2019 $27,648.00 2 /1/2019 /31/2024 $33,177.60 provided that notice is sent, in writing, to the Lessor at least 30 days before the end of the original lease term and each renewal term. All other terms and conditions of this Lease will remain the same during any renewal term unless stated otherwise herein. 5. UTILITIES, SERVICES, AND EQUIPMENT: Lessor, as part of the rental consideration, shall furnish the following utilities, services and equipment: (See Lessor Obligations of General Conditions (A.24) and/or attached addendum for definitions.) Heating System & Fuel, Air Conditioning Equipment & Power, Light Fixtures & Power, Sewerage System and Service, Electrical System & Electricity, Water System and Service, Trash Removal, Snow Removal, Lessor will provide daily janitor service to all areas where access is available. 6. OTHER PROVISIONS: The following additional provisions, modifications, riders, layouts and/or forms were agreed upon prior to execution and made a part hereof: Maintenance Rider - Lessor (M-1), UST Maintenance Rider - Lessor (U-1), The Postal Service shall accept the space in "as is" condition and shall provide the interior construction and finish out of the space at its own expense. Lessor shall not provide adjacent space to entities majoring in the on-site consumption or direct sales of alcoholic beverages, i. e., liquor store, bar, adult entertainment, etc. A restaurant serving beer and/or alcohol containing drinks associated with meals is acceptable. See Attached Addendum. *Rent shall increase to $23,040.00 per annum beginning the first month of the second 5 -year period of the base term of the lease (approx. 2010 - 2014). 7. The undersigned has completed the 'Representations and Certifications.' (See Section B). 8. LEGAL DESCRIPTION: The northern portion of the Fayetteville Municipal Airport Terminal Building, Drake Field, Highway 71 South, Fayetteville, AR, as illustrated in the attached Page 2 (a). RELEASEI (May 1999, v2.2) 2 r • f an a -a qr N 9-4I f2�--.0 b--/ II . II 7 L .2/1 1-.111.2/1 01-5+--.' .2/1 0- ti—• �I f CO W • .2/1 o -.t1 AI 2! it -.B Y d r- 6 n N .9- n • Y Y F 4 bti bN 6- M a W M Y P 4 YN OC w M a CO M 1—,L Oma tl_.4 OP N 6 w N a N N L or L i • • Al -.a2 a Jr- se. 1' 0 t n id 4 - re LNamp a i ey ci- s 4m • Q_ T C. - amu baa mu 1 per 1/ N 1 T 1f 111 GREENLAND, AR, POST OFFICE 72737 LEASED AREA - FAYETTEVILLE MUNICIPAL AIRPORT TERMINAL i (HEAVILY OUTLINED AREA) Page 2 (a) g+++ UNITED STITES POSTAL SERVICE Addendum FacilityName/Location GREENLAND - MAIN POST OFFICE (043663-002) County: Washington *** GREENLAND, AR 72737-9998 Project: G05686 RENT: Rent shall increase to $23,040.00 per annum beginning the first month of the second 5 -year period of the base term of the lease (approx. 2010 - 2014). *See Paragraph 6, Page 2 MAINTENANCE: The Postal Service shall maintain the interior of the leased space and the Lessor shall be responsible for maintainance of the exterior of the space. RELEASEAD (Sept. 96, v1.16, P) Page 1 of 1 UNITED STATES POSTAL SERVICE Maintenance Rider USPS Responsibility (Partial) a. If the Postal Service is assuming maintenance responsibility for the demised premises for the first time, the Lessor must correct all maintenance deficiencies and obtain a written certification from a professional HVAC firm that the heating, ventilating and air conditioning systems have been maintained and are in proper working condition. The Lessor will remain responsible until all deferred maintenance work has been completed to the satisfaction of the Postal Service and Postal Service is in receipt of and accepts the aforementioned written certification. b. The term "demised premises" as used in this rider includes the premises described in the Lease, the improvements and appurtenances to such premises and all equipment and fixtures furnished, or to be furnished, by the Lessor under this Lease. c. The Postal Service is responsible for ordinary repairs to, and maintenance of the demised premises except for those repairs that are specifically made the responsibility of the Lessor in this Lease. The responsibility of the Postal Service as stated herein will be fulfilled at such time and in such manner as the Postal Service considers necessary to keep the demised premises in proper condition. d. The Lessor is responsible for: (1) Repairs to all common or joint use areas common or joint use equipment and fixtures that may be included as part of this Lease. (2) All repairs to structural elements and all parts of the roof system. The term "structural elements" as used in this clause is limited to the foundation, bearing walls, floors (not including floor covering), and column supports. The roof system includes, but is not limited to, the roof covering, flashing and insulation, and roof beams, joists, and deck. (3) Repairs resulting from Acts of God, of a public enemy, riot or insurrection. (4) Inspection, prevention and eradication of termites and any other wood eating insects and for repairs of any damage resulting therefrom. (5) Repairs resulting from defects in building construction or installation of equipment, fixtures, or appurtenances fumished by the Lessor. (6) Repairs resulting from fire or other casualties, unless such casualties were caused by the negligence of employees or agents of the Postal Service. (7) Any ordinary repairs by the Postal Service which were made necessary by the failure of any element for which the Lessor is responsible. e. When the need arises for repairs which are the responsibility of the Lessor, including any repairs or actions for which the Lessor is responsible under paragraph a. hereof, the Postal Service will (except in emergencies) give the Lessor written notice of the needed repairs and will specify a reasonable deadline for completion of the work. A copy of such notice will be sent by certified or registered mail to the Lessor's mortgagee and assignee of monies due or to become due pursuant to this Lease whose names and addresses have been fumished to the Postal Service by the Lessor. If none of these parties (lessor, mortgagee or assignee) proceed with the work with such diligence so as to ensure completion within the time specified in the notice (or any extension thereof granted at the sole discretion of the Postal Service) or actually fails to complete the work within said time, the Postal Service has the right to perform the work, by contract or otherwise, and withhold the cost of such work (which may include administrative cost and/or interest) from payments due under this Lease. In addition, the Postal Service may proportionally abate the rent for any period the demised premises, or any part thereof, are determined by the Postal Service to have been rendered unavailable to it by reason of such condition. Alternatively, the Postal Service may, if the demised premises are determined to be unfit for occupancy, at its sole discretion, cancel this Lease without liability. REMAINU (v2.2, June 1999) M-1 UNITED STATES POSTAL SERVICE. • • Lease EXECUTED BY LESSOR this day of July 2004 OTHER GOVERNMENT AGENCY Print Name & Title Signature Print Name & Title Signature Print Name & Title Signature Print Name & Title Signature Print Name & Title Signature Print Name & Title Print Name & Title Print Name & Title Lessor, Address CITY OF FAYETTEVILLE Signature Signature Signature CIO AVIATION & ECONOMIC DEV 4500 S School Ave Suite F Fayetteville AR 72701-8016 Telephone No: (479) 718-7642 Taxpayer ID: 71-6018462 witness Sondra Smith, City Clerk Date: 7/6/4e/ LARRY L ANDREWS Wine Da,p, Coady ACCEPTANCE BY THE POSTAL SERVICE Contracting Officer PO BOX 667180 DALLAS TX 75266-7180 Signature of ont ch�r 9 � 9 yar Address of Contracting Officer RELEASE1 (May 1999, v2.2) 3 aUNITED STATES POSTAL SERVICE • • Form of Acknowledgment for Corporations STATE OF Arkansas COUNTY OF Washington Personally appeared before me, a Notary Public in and for the County and State aforesaid, Dan Coody and Sondra Smith (Name of authorized officer(s) signing lease) Mayor City Clerk/Treasurer who is/are known to me to be the and (Titles of officer(s) signing lease) City of Fayetteville, Arkansas and of the (Name of Corporation) to be the same person(s) who executed the foregoing lease, who depose(s) and say that said person(s) know(s) the seal of the said corporation, that the seal affixed to the above instrument is the seal of said corporation, and that it was affixed, and that said person(s) signed this lease by the authority of the said corporation, for the purposes set forth, and as said person(s) own free and voluntary act. Done at in the County and State aforesaid, this day of July , 2004 . NOTARIAL SEAL s NOTARY .V1 -.;...0.„ PUBLIC 2j i4•.. •..•% :. Notary Public My commission expires o oto NOTE: If the corporation is without a seal, that portion of the acknowledgment referring to a seal should be stricken out, and on the blank line following this statement should be made: "and that the said corporation has no corporate seal." REACKC (Nov 97, v2.0, P) UNITED STATES POSTAL SERVICE. • • Form of Acknowledgment for Contracting Officer STATE OF SS: COUNTY OF Ilam Personally appeared before me, a Notublic in and for the County and State aforesaid, (r known to be the LARRY L ANDREWS PO BOX 66718000 DALLAS, TX 752667180 iIdentify individual party to the lease) L • Nevi (e,35 and to be the same person who executed the foregoing Lease, who deposes and says that he signed his name thereto by authority of said Postal Service, for the purposes set forth, and as his own free and voluntary act. Witness my hand and notarial seal, in the County and State aforesaid, this 1Q day of J to Ei �'cLy�. NOTARIAL SEAL BEATRICE M. TROTMAN MY COMMISSION EXPIRES February 13, 2006 1 GL) I V 1. vhr Notary Public My commission expires a ) i3' a6ay, REACKCO (Nov 97, v.2.0, P) UNITED STATES POSTAL SERVICE. • GeneralConditions to USPS Lease SECTION A A.1 CHOICE OF LAW This Lease shall be govemed by federal taw. A.2 DEFINITIONS As used in this contract, the following terms have the following meanings: a. "Contracting officer' means the person executing this contract on behalf of the Postal Service, and any other employee who is a properly authorized contracting officer; the term includes, except as otherwise provided in the contract, the authorized representative of a contracting officer acting within the limits of the authority conferred upon that person. b. "Successful offeror," "offeror", "owner, "contractor," or "Lessor" are interchangeable and refer to the party whose proposal is accepted by the Postal Service. c. "Lease" and "agreement" are interchangeable and refer to this document, including all riders and attachments thereto. k3 EXECUTION REQUIREMENTS a. All co-owners and all other persons having or to have a legal interest in the property must execute the Lease. If the offeror is married, the husband or wife of the offeror must also execute the Lease. The offeror must submit adequate evidence of title. b. If the offeror is a general partnership, each member must sign. c. If the offeror is a limited partnership, all general partners must sign. d. Where the offeror is an administrator or an executor of an estate, there must be fumished a certificate of the clerk of the court or certified copy of the court order showing the appointment of the administrator or executor, together with a certified copy of the will of the deceased. If there is no will, or in the event the will of the deceased does not specifically authorize the administrator or the executor to enter into a contract to lease the proposed quarters, it will generally be necessary to furnish, in addition to the above named items, a certified copy of the court order authorizing such administrator or executor to enter into a lease with the Postal Service. e. Where the offeror is a trustee, a certified copy of the instrument creating the trust must be furnished together with any other evidence necessary to establish the trustee's authority to lease. f. Where the offeror is a corporation, leases and lease agreements entered into must have the corporate seal affixed or in place thereof the statement that the corporation has no seal. g. Where the offeror is a corporation, municipal corporation, fratemal order or society, the Lease must be accompanied by documentary evidence affirming the authority of the agent, or agents, to execute the Lease to bind the municipal corporation, fratemal order or society for which he (or they) purports to act. The usual evidence required to establish such authority is In the form of extracts from the articles of incorporation, or bylaws, or the minutes of the board of directors duly certified by the custodian of such records, under the corporate seal. Such resolutions, when required, must contain the essential stipulations embodied In the Lease. The names and official tides of the officers who are authorized to sign the Lease must appear in the document. h. Notices. Any notice to Lessor provided under this Lease or under any law or regulation must be in writing and may be hand delivered or mailed to Lessor at the address specified on page 3 of the Lease, or at an address that Lessor has otherwise appropriately directed in writing. Any notice to the Postal Service provided under this Lease or under any law or regulation must be in writing and may be hand delivered or mailed, addressed to "Contracting Officer, U.S. Postal Service" at the address specified on page 3 of the Lease, or at an address that the Postal Service has otherwise directed in writing. A.4 MORTGAGEE'S AGREEMENT If there is now or will be a mortgage on the property which is or will be recorded prior to the recording of the Lease, the offeror must notify the contracting officer of the facts concerning such mortgage arid, unless in his sole discretion the contracting officer waives the requirement, the offeror must furnish a Mortgagee's Agreement, which will consent to this Lease and shall provide that, in the event of foreclosure, mortgagee, successors, and assigns shall cause such foreclosures to be subject to the Lease. A.5 EQUAL OPPORTUNITY a. The contractor may not discriminate against employees or applicants because of race, color, religion, sex, or national origin. The contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to race, color, religion, sex, or national origin. This action must include, but not be limited to, employment, upgrading, demotion, or transfer; recruitment or recruitment advertising: layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The contractor agrees to post in conspicuous places, available to employees and applicants, notices provided by the contracting officer setting forth the provisions of this clause. b. The contractor must, in all solicitations or advertisements for employees placed by it or on its behalf, state that all qualified applicants will be considered for employment without regard to race, color, religion, sex, or national origin. c. The contractor must send to each union or workers' representative with which the contractor has a collective bargaining agreement or other understanding, a notice, provided by the contracting officer, advising the union or workers' representative of the contractors commitments under this clause, and must post copies of the notice in conspicuous places available to employees and applicants. d. The contractor must comply with all provisions of Executive Order (EO) 11246 of September 24, 1965, as amended, and of the rules, regulations, and relevant orders of the Secretary of Labor. e. The contractor must furnish all information and reports required by the Executive order, and by the rules, regulations, and orders of the Secretary, and must permit access to the contractors books, records, and accounts by the Postal Service and the Secretary for purposes of investigation to ascertain compliance with these rules, regulations, and orders. f. If the contractor fails to comply with this clause or with any of the said rules, regulations, or orders, this contract may be canceled, terminated, or suspended, in whole or in part; the contractor may be declared ineligible for further contracts in accordance with the Executive order; and other sanctions may be imposed and remedies invoked under the Executive order, or by rule, regulation, or order of the Secretary, or as otherwise provided by law. g. The contractor must insert this clause, including this paragraph g, in all subcontracts or purchase orders under this contract unless exempted by Secretary of Labor rules, regulations, or orders issued under the Executive order. The contractor must take such action with respect to any such subcontract or purchase order as the Postal Service may direct as a means of enforcing the terms and conditions of this clause (including sanctions for noncompliance), provided, however, that if the contractor becomes involved in, or is threatened with, litigation as a RETERMSS (v2.2, June 1999) A-1 UNITED STATES POSTAL SERVICE • • General Conditions to USPS Lease result, the contractor may request the Postal Service to enter into the litigation to protect the interests of the Postal Service. h. Disputes under this clause wi0 be govemed by the procedures in 41 CFR 60-1.1. A.6 FACILITIES NONDISCRIMINATION a. As used in this clause, the tens "facility" means stores, shops, 'restaurants, cafeterias, restrooms, and any other facility of a public nature in the building in which the space covered by this Lease is located. b. The Lessor agrees that he will not discriminate by segregation or otherwise against any person or persons because of race, religion, color, -age, sex, or national origin in furnishing, or by refusing to fumish, to such person or persons the use of any facility including any and all services, privileges, accommodations, and activities provided thereby. c. It is agreed that the Lessor's noncompliance with the provisions of this clause shall constitute a material breach of this Lease. In the event of such noncompliance, the Postal Service may take appropriate action to enforce compliance, may terminate this lease, or may pursue such other remedies as may be provided by law. In the event of termination, the Lessor shall be liable for all excess costs of the Postal Service in -acquiring substitute space, including but not limited to the cost of moving to such space. d. The Lessor agrees to include, or to require the inclusion of the foregoing provisions of this clause (with the terms "Lessor" and "Lease" appropriately modified) in every agreement or concession pursuant to which any person other than the Lessor operates or has the right to operate any facility. The Lessor also agrees that it will take such action with respect to any such agreement as the Postal Service may direct as a means of enforcing this clause, including but not limited to termination of the agreement or concession. A.7 RESERVED A.8 CONTINGENT FEES a. The contractor warrants that no person or selling agency has been employed or retained to solicit or obtain this contract for a commission, percentage, brokerage, or contingent fee, except bona fide employees or bona fide, established commercial or selling agencies employed by the contractor for the purpose of obtaining business. b. For breach or violation of this warranty, the Postal Service has the right to annul this contract without liability or to deduct from the contract price or otherwise recover the full amount of the commission, percentage, brokerage fee, or contingent fee. c. Licensed real estate agents or brokers having listings on property for rent, in accordance with general business practice, and who have not obtained such licenses for the sole purpose of effecting this lease, may be considered as bona fide employees or agencies within the exception contained in this clause. A.9 ASSIGNMENT OF CLAIMS a. If this contract provides for payments aggregating $10,000 or more, claims for moneys due or to become due from the Postal Service under it may be assigned to a bank, trust company, or other financing institution, Including any federal lending agency and may thereafter be further assigned and reassigned to any such institution. Any assignment or reassignment must cover all amounts payable and must not be made to more than one party, except that assignment or reassignment may be made to one party as agent or trustee for two or more parties participating In fnancing this contract. No assignment or reassignment will be recognized as valid and binding upon the Postal Service unless a written notice of the assignment or reassignment, together with a true copy of the instrument of assignment, is filed with: 1. The contracting officer; 2. The surety or sureties upon any bond; and 3. The office, if any, designated to make payment, and the contracting officer has acknowledged the assignment in writing. b. Assignment of this contract or any interest in this contract other than In accordance with the provisions of this clause will be grounds for termination of the contract for default at the option of the Postal Service. c. Nothing contained herein shall be construed so as to prohibit transfer of ownership of the demised premises, provided that: 1. such transfer is subject to this agreement; and 2. both the original lessor and the successor lessor execute the standard Lease Assignment and Assumption fore to be provided by the USPS Contracting Officer. A.10 COMPLIANCE WITH OSHA STANDARDS The Lessor must (t) comply with applicable Occupational Safety and Health Standards, title 29 Code of Federal Regulations, Part 1910, promulgated pursuant to the authority of the Occupational Safety and Health Act of 1970; (ii) comply with any other applicable federal, state, or local regulation governing workplace safety to the extent they are not in conflict with (i); and (iii) take all other proper precautions to protect the health and safety of (a) any laborer or mechanic employed by the Lessor in performance of this agreement, (b) Postal Service employees, and (c) the public. The Lessor must include this clause in all subcontracts hereunder and to require its inclusion in all subcontracts of a lower tier. The tens "Lessor" as used in this clause in any subcontract must be deemed to refer to the subcontractor. A.11 EXAMINATION OF RECORDS a. The Postal Service and its authorized representatives will, until three years after final payment under this contract, or for any shorter period specified for particular records, have access to and the right to examine any directly pertinent books, documents, papers, or other records of the contractor involving transactions related to this contract. b. The contractor agrees to include in all subcontracts under this contract a provision to the effect that the Postal Service and its authorized representatives will, until three years after final payment under the subcontract, or for any shorter specified period for particular records, have access to and the right to examine any directly pertinent books, documents, papers, or other records of the subcontractor involving transactions related to the subcontract. The term "subcontract" as used in this clause excludes: 1. Purchase orders; and 2. Subcontracts for public utility services at rates established for uniform applicability to the general public. A.12 YEAR 2000 WARRANTY (REAL PROPERTY CONTRACTS) The contractor warrants that all building systems required under this contract (including; but not limited to, HVAC, electrical, lighting, elevator, or securityfalarm systems) which contain or are managed, govemed, or regulated in any manner by date -sensitive computer hardware or software, will suffer no failure, irregularity, or interruption of service based on failure accurately to process date data from, Into, and between the twentieth and twenty-first centuries, including recognizing the year 2000 as a leap year. For breach of this warranty, the Postal Service may require the contractor to repair or replace those portions of any building system not performing as stated above. The Postal Service may enforce this clause prior to January 1, 2000, if testing of any system before that date results in a failure, irregularity, or RETERMSS (v2.2, June 1999) A-2 UNITED STATES POSTAL SERVICE.. • General Conditions to USPS Lease interruption of service as described above. Accordingly, systems must 'permit user -programmed date changes sufficient to simulate time periods beginning with any future date, Including without limitation December 31, 1999. Nothing in this warranty may be construed to limit any rights or remedies the Postal Service may otherwise have under this •contract with regard to Year 2000 compliance or any other defects or failures. -A.13 CLAIMS AND DISPUTES a. This contract is subject to the Contract Disputes Act of 1978 (41 U.S.C. 601-613) ('the Art'). b. Except as provided in the Ad, all disputes arising under or relating to this contract must be resolved under this clause. c. "Claim; as used in this clause, means a written demand or written assertion by one of the contracting parties seeking, as a matter of right, the payment of money in a sum certain, the adjustment or interpretation of contract terms, or other relief arising under or relating to this contract. However, a written demand or written assertion by the contractor seeking the payment of money exceeding $100,000 is not a claim under the Act until certified as required by subparagraph d.2 below. A voucher, invoice, or other routine request for payment that is not in dispute when submitted is not a claim under the Act. The submission may be converted to a claim under the Act by complying with the submission and certification requirements of this clause, if it is disputed either as to liability or amount or is not acted upon in a reasonable time. d. 1. A claim by the contractor must be made in writing and submitted to the contracting officer for a written decision. A claim by the Postal Service against the contractor is subject to a written decision by the nontrading officer. 2. For contractor claims exceeding 5100,000, the contractor must submit with the claim the following certification: 1 certify that the claim is made in good faith, that the supporting data are accurate and complete to the best of my knowledge and belief, that the amount requested accurately reflects the contract adjustment for which the contractor believes the Postal Service is liable, and that I am duly authorized to certify the claim on behalf of the contractor.' 3. The certification may be executed by any person duly authorized to bind the contractor with respect to the claim. e. For contractor claims of $100,000 or less, the contracting officer must, if requested in writing by the contractor, render a decision within 60 days of the request. For contractor -certified claims over $100,000, the nontrading officer must, within 60 days, decide the claim or notify the contractor of the date by which the decision will be made. f. The contracting officer's decision is final unless the contractor appeals or files a suit as provided in the Act. g. When a claim is submitted by or against a contractor, the parties by mutual consent may agree to use an altemative dispute resolufon (ADR) • process to assist in resolving the claim. A certification as described in d(2) of this clause must be provided for any claim, regardless of dollar amount, before ADR is used. h.. The Postal Service will pay interest on the amount found due and unpaid from: 1. The date the contracting officer receives the claim (properly certified if required); or 2. The date payment otherwise would be due, if that date is later, until the date of payment. Simple interest on claims will be paid at a rate determined in accordance with the Interest clause. j. The contractor must proceed diligently with performance of this contract, pending final resolution of any request for relief, claim, appeal, or action arising under the contract, and comply with any decision of the contracting officer. A.14 AFFIRMATIVE ACTION FOR HANDICAPPED WORKERS The following clause is applicable if this contract provides for payments aggregating $2,500 or more. a. The contractor may not discriminate against any employee or applicant because of physical or mental handicap, in regard to any position for which the employee or applicant is qualified. The contractor agrees to take affirmative action to employ, advance in employment, and otherwise treat qualified handicapped individuals without discrimination in all employment practices, such as employment, upgrading, demotion or transfer, recruitment, advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training (including apprenticeship). b. The contractor agrees to comply with the rules, regulations, and relevant orders of the Secretary of Labor issued pursuant to the Rehabilitation Act of 1973, as amended. c. In the event of the contractors noncompliance with this clause, action may be taken in accordance with the rules and regulations and relevant orders of the Secretary of Labor. d. The contractor agrees to post in conspicuous places, available to employees and applicants, notices in a font to be prescribed by the Director, Office of Federal Contract Compliance Programs, provided by or through the contracting officer. These notices state the contractors obligation under the law to take affimtative action to employ and advance in employment qualified handicapped employees and applicants, and the rights of applicants and employees. e. The contractor must notify each union or worker's representative with which it has a collective bargaining agreement or other understanding that the contractor is bound by the terms of section 503 of the Act and is committed to taking affirmative action to employ, and advance in employment, handicapped individuals. f. The contractor must include this clause in every subcontract or purchase order over $2,500 under this contract unless exempted by rules, regulations, or orders of the Secretary issued pursuant to section 503 of the Act, so its provisions will be binding upon each subcontractor or vendor. The contractor must take such action with respect to any subcontract or purchase order as the Director of the Office of Federal Contract Compliance Programs may direct to enforce in these provisions, including action for noncompliance. A.15 AFFIRMATIVE ACTION FOR DISABLED VETERANS AND VETERANS OF THE VIETNAM ERA If this contract provides for payments aggregating $10,000 or more, the following clause is applicable. a. The contractor may not discriminate against any employee or applicant because that employee or applicant is a disabled veteran or veteran of the Vietnam era, in regard to any position for which the employee or applicant is qualified. The contractor agrees to take affirmative action to employ, advance in employment, and otherwise treat qualified disabled veterans and veterans of the Vietnam era without discrimination in all employment practices, such as employment, upgrading, demotion or transfer, recruitment, advertising, layoff or RETERMSS (v2.2, June 1999) A-3 UNITED STATES POSTAL SERVICE • • General Conditions to USPS Lease termination, rates of pay or other forms of compensation, and selection for training (including apprenticeship). b. The contractor agrees to list all employment openings which exist at the time of the execution of this contract and those which occur during the performance of this contract, including those not generated by this contract and including those occurring at an establishment of the contractor other than the one where the contract is being performed, but excluding those of independently operated corporate affiliates, at an appropriate local office of the state employment service where the opening occurs. State and local govemment agencies holding Postal Service contracts of $10,000 or more will also list their openings with the appropriate office of the state employment service. c. Listing of employment openings with the employment service system will be made at least concurrently with the use of any other recruitment source or effort and will involve the normal obligations attaching to the placing of a bona fide job order, including the acceptance of referrals of veterans and non -veterans. The listing of employment openings does not require the hiring of any particular applicant or hiring from any particular group of applicants, and nothing herein is intended to relieve the contractor from any other requirements regarding nondiscrimination in employment. -d. Whenever the contractor becomes contractually bound to the listing provisions of this clause, it must advise the employment service system in each State where it has establishments of the name and location of each hiring location in the State. The contractor may advise the State system when It is no longer bound by this clause. e. Paragraphs b, c, and d above do not apply to openings the contractor proposes to fill from within its own organization or under a customary and traditional employer/union hiring arrangement. But this exclusion does not apply to a particular opening once the contractor decides to consider applicants outside its own organization or employer/union arrangements for that opening. f. Definitions 1. All Employment Openings. This includes all positions except executive and top management, those positions that will be filled from within the contractors organization, and positions lasting three days or I ss. This also includes full-time employment, temporary employment of more than three days duration, and part-time employment. Under the most compelling circumstances, an employment opening may not be suitable for listing, including situations in which the needs of the Postal Service cannot reasonably be otherwise supplied, when listing would be contrary to national security, or when listing would not be in the best interest of the Postal Service. 2. Appropriate Office of the State Employment Service. This means the local office of the federal/state national system of public employment offices with assigned responsibility for serving the area where the employment opening is to be filled, including the District of Columbia, Guam, the Commonwealth of Puerto Rico, and the Virgin Islands. 3. Positions That Will be Filled From Within the Contractors Own Organization. This means employment openings for which no consideration will be given to persons outside the contractor's organization (including any affiliates, subsidiaries and parent companies) and includes any openings which the contractor proposes to fill from regularly established recall lists. 4. Openings the Contractor Proposes to Fill Under a Customary and Traditional Employer/Union Hiring Arrangement. Employment openings the contractor proposes to fill from union halls as part of the customary and tradit onal hiring relationship existing between It and representatives of its employees. g. The contractor agrees to comply with the rules, regulations, and relevant orders of the Secretary of Labor issued pursuant to the Vietnam Era Veterans Readjustment Assistance Act of 1972, as amended. h. In the event of the contractor's noncompliance with this clause, action may be taken in accordance with the rules, regulations, and relevant orders of the Secretary. i. The contractor agrees to post in conspicuous places, available to employees and applicants, notices in a form to be prescribed by the Director, Office of Federal Contract Compliance Programs, provided by or through the contracting officer. These notices state the contractor's obligation under the law to take affirmative action to employ and advance in employment qualified disabled veterans and veterans of the Vietnam era, and the rights of applicants and employees. j. The contractor must notify each union or workers' representative with which it has a collective bargaining agreement or other understanding that the contractor is bound by the terms of the Act and is committed to taking affirmative action to employ, and advance in employment, qualified disabled veterans and veterans of the Vietnam era. k. The contractor must include this clause in every subcontract or purchase order of $10,000 or more under this contract unless exempted by rules, regulations, or orders of the Secretary issued pursuant to the Act, so its provisions will be binding upon each subcontractor or vendor. The contractor must take such action with respect to any subcontract or purchase order as the Director of the Office of Federal Contract Compliance Programs may direct to enforce in these provisions, including action for noncompliance. A.16 GRATUITIES OR GIFTS a. The Postal Service may terminate this contract for default if, after notice and a hearing, the Postal Service Board of Contract Appeals determines that the contractor or the contractors agent or other representative: 1. Offered or gave a gratuity or gift (as defined in 5 CFR 2635) to an officer or employee of the Postal Service; and 2. Intended by the gratuity to obtain a contract or favorable treatment under a contract. b. The rights and remedies of the Postal Service provided in this clause are in addition to any other rights and remedies provided by law or under this contract. A.17 HAZARDOUS/TOXIC CONDITIONS CLAUSE "Asbestos containing building material" (ACBM) means any material containing more than 1% asbestos as determined by using the method specified in 40 CFR Part 763, Subpart E, Appendix E. "Friable asbestos material" means any ACBM that when dry, can be crumbled, pulverized, or reduced to powder by hand pressure. The Lessor must identify and disclose the presence, location and quantity of all ACBM or presumed asbestos containing material (PACM) which includes all therrnal system insulation, sprayed on and troweled on surfacing materials, and asphalt and vinyl Flooring material unless such material has been tested and identified as non-ACBM. The Lessor agrees to disclose any information concerning the presence of lead- based paint, radon above 4 pCUL, and lead piping or solder in drinking water systems in the building, to the Postal Service. Sites cannot have any contaminated soil or water above applicable federal, state or local action levels or undisclosed underground storage tanks. Unless due to the act or negligence of the Postal Service if contaminated soil, water, underground storage tanks or piping or friable asbestos material or any other hazardous/toxic materials or substances as defined by applicable Local, State or Federal law is subsequently RETERMSS (v2.2, June 1999) A-4 UNITED STATES POSTAL SERVICE • General Conditions to USPS Lease identified on the premises, the Lessor agrees to remove such materials -or substances upon notification by the U. S. Postal Service at Lessor's sole cost and expense in accordance with EPA and/or State guidelines. If ACBM is subsequently found in the building which reasonably should have been determined, identified, or known to the Lessor, the Lessor •agrees to conduct, at Lessor's sole expense, an asbestos survey pursuant to the standards of the Asbestos Hazard Emergency Response Act (AHERA), establish an Operations and Maintenance (O&M) plan for asbestos management, and provide the survey report and plan to the Postal Service. If the Lessor fails to remove any friable asbestos or hazardous/toxic materials or substances, or complete an AHERA asbestos survey and O&M plan, the Postal Service has the right to accomplish the work and deduct the cost plus administrative costs, from future rent payments or recover these costs from Lessor by other means, or may, at its sole option, cancel this Lease. In addition, the Postal Service may proportionally abate the rent for any period the premises, or any part thereof, are determined by the Postal Service to have been rendered unavailable to it by reason of such condition. The remainder of this clause applies if this Lease is for premises not previously occupied by the Postal Service. By execution of this Lease the Lessor certifies: 1. the property and improvements are free of all contamination from petroleum products or any hazardous/toxic or unhealthy materials or substances, including friable asbestos materials, as defined by applicable State or Federal law; 2. there are no undisclosed underground storage tanks or associated piping, ACBM, radon, lead-based paint, or lead piping or solder in drinking water systems, on the property; and 3. it has not received, nor is it aware of, any notification or other communication from any govemmental or regulatory entity conceming any environmental condition, or violation or potential violation of any local, state, or federal environmental statute or regulation, existing at or adjacent to the property. The Lessor hereby indemnities and holds harmless the Postal Service and its officers, agents, representatives, and employees from all claims, loss, damage, actions, causes of action, expense, fees and/or liability resulting from, brought for, or on account of any violation of this clause. A.18 ADVERTISING OF CONTRACT AWARDS Except with the contracting officer's prior approval, the contractor agrees -not to refer in its commercial advertising to the fad that it was awarded a Postal Service contract or to imply in any manner that the Postal Service endorses its products. A.19 RECORDING Recording Not Required A.20 SUBLEASE The Postal Service may sublet all or any part of the premises or assign this lease but shall not be relieved from any obligation under this lease by reason of any subletting or assignment. A.21 ALTERATIONS The Postal Service shall have the right to make alterations, attach fixtures and erect additions, structures or signs in or upon the premises hereby leased (provided such alterations, additions, structures, or signs shall not be detrimental to or inconsistent with the rights granted to other tenants on the property or in the building in which said premises are located); which fixtures, additions or structures so placed in, upon or attached to the said premises shall be and remain the property of the Postal Service and may be removed or otherwise disposed of by the Postal Service Prior to expiration or termination of this lease the Postal Service may remove such alterations and improvements and restore the premises to as good condition as that existing at the time of entering upon the same under the lease, reasonable and ordinary wear and tear and damages by the elements or by circumstances over which the Postal Service has no control, excepted. If however, at the expiration or termination of the lease or any renewal or extension thereof, the Postal Service elects not to remove such alterations and/or improvements, said alterations and/or improvements shall become the property of the Lessor and any rights of restoration are waived. A.22 APPLICABLE CODES AND ORDINANCES The Lessor, as part of the rental consideration, agrees to comply with all codes and ordinances applicable to the ownership and operation of the building in which the rented space is situated and to obtain all necessary permits and related items at no cost to the Postal Service. A.23 DAMAGE OR DESTRUCTION OF PREMISES If the demised premises or any portion thereof are damaged or destroyed by fire or other casualty, Acts of God, of a public enemy, riot or insurrection or are otherwise determined by the Postal Service to be unfit for use and occupancy, the Postal Service may: a. terminate this lease as of the date the premises become unfit for use and occupancy, or b. require the Lessor to repair or rebuild the premises as necessary to restore them to tenantable condition to the satisfaction of the Postal Service. For any period the premises, or any part thereof, are unfit for use and occupancy, the rent will be abated in proportion to the area determined by the Postal Service to be untenantable. Unfitness for use does not include unsuitability arising from such causes as design, size, or location of the premises, or c. accomplish all repair necessary for postal occupancy and deduct all such costs, plus administrative burden from future rents. A.24 LESSOR OBLIGATIONS The Lessor's obligations regarding the services to be provided are further defined as follows: a. If heating system and fuel are fumished - Lessor must fumish heating system together with all fuel required for proper operation of the system during the continuance of the Lease. The system must be in good working order and, if maintained by the Lessor, will be maintained in accordance with the Maintenance Rider attached hereto. Any Investigative or remediation cost associated with a release of fuel from the system, including any fuel tank, shall be the responsibility of the Lessor, unless the release is cause by the act or negligence of the Postal Service. b. If heat is furnished - Lessor must maintain a uniform heating temperature of 65 degrees F. in all enclosed portions of the demised premises during the continuance of the Lease. c. If heating system is furnished - Lessor must furnish heating system in good working order and, if maintained by Lessor, will be maintained in accordance with the Maintenance Rider attached hereto. Any Investigative or remediation cost associated with a release of fuel from the system, including any fuel tank, shall be the responsibility of the Lessor, unless the release is cause by the act or negligence of the Postal Service. d. If lighting fixtures and power are fumished - Lessor must provide light fixtures in good working order as well as pay all recurring electric bills. RETERMSS (v2.2, June 1999) A-5 UNITED STATES POSTAL SERVICE - • • General Conditions to USPS Lease e. If light fixtures are furnished - Lessor must provide light fixtures in good working order. f. If electricity is fumished - Lessor must pay for all recurring electric bills and furnish the electrical system during the continuance of the Lease. g. If electrical system is furnished - Lessor must furnish an electrical system in good working order having a separate electrical meter. h. If water system and water service are fumished - Lessor must fumish a water system in good working order and pay for all recurring water bills during the continuance of the Lease. i. If water system is fumished - Lessor must furnish a water system in good working order with separate water meter. j. if sewerage system and sewerage service is fumished - Lessor agrees to fumish sewerage systems including all equipment, piping, plumbing, lines, connections, septic tanks, field lines and related •devices, as necessary and to pay all charges, fees and other costs for such system and services during the continuance of the Lease. k. If sewerage system is furnished - Lessor agrees to furnish sewerage systems including all equipment, piping, plumbing, lines, connections, septic tanks, field lines, and related devices, as necessary during the continuance of the Lease. I. Future Availability of Public Water and/or Sewerage Services - Regardless of Lessors responsibility for water and/or sewerage under this Lease, if public water and/or sewerage services are not currently available, but become available in the future, the Lessor agrees to accomplish connection, maintain, and pay all fees and costs involved in connecting the building system to the public water and/or sewerage systems. After connection, the Postal Service agrees to pay recurring charges for water consumption and use of sewerage services. If connection of such services is optional, the Postal Service will determine if the connection is to be made by the Lessor. m. If air-conditioning equipment and operating power are provided - Lessor must furnish air-conditioning equipment together with all power required for proper operation of the equipment during the continuance of the Lease. The equipment must be in good working order and, if maintained by the Lessor, will be maintained in accordance with the Maintenance Rider attached hereto. n. If air-conditioning equipment is fumished - Lessor must furnish air conditioning equipment in the demised premises in good working order and, if maintained by Lessor, will be maintained in accordance with the Maintenance Rider included attached hereto. o. If air-conditioning is furnished - Lessor must maintain a uniform temperature of no greater than 78 degrees F. in all enclosed portions of 'the demised premises and be responsible for servicing of the air conditioning equipment including, but not limited to, the replacement of necessary filters and refrigerant as required for proper operation of the equipment together with power, water and other services for its operation. A.25 LESSOR'S SUCCESSORS The terms and provisions of this Lease and the conditions herein are binding on the Lessor, and all heirs, executors, administrators, successors, and assigns. k26 RESERVED A27 DAVIS-BACON ACT The following is applicable if this agreement covers premises of net interior space in excess of 6,500 square feet and involves construction work over $2,000.00. a. Minimum Wages 1. All mechanics and laborers employed in the contract work (other than maintenance work of a recurring, routine nature necessary to keep the building or space in condition to be continuously used at an established capacity and efficiency for its intended purpose) must be paid unconditionally, and not less than once a week, without deduction or rebate (except for deductions permitted by the Copeland Regulations (29 CFR Part 3)), the amounts due at the time of payment computed at rates not less than the aggregate of the basic hourly rates and rates of payments, contributions, or costs for any fringe benefits contained in the wage -determination decision of the Secretary of Labor, attached hereto, regardless of any contractual relationship alleged to exist between the Lessor, or subcontractor and these laborers and mechanics. A copy of the wage -determination decision must be kept posted by the Lessor at the site of the work in a prominent place where it can easily be seen by the workers. 2. The Lessor may discharge its obligation under this clause to workers in any classification for which the wage -determination decision contains: (a) Only a basic hourly rate of pay, by making payment at not less than that rate, except as otherwise provided in the Copeland Regulations (29 CFR Part 3); or (b) Both a basic hourly rate of pay and fringe -benefit payments, by paying in cash, by irrevocably contributing to a fund, plan, or program for, or by assuming an enforceable commitment to bear the cost of, bona fide fringe benefits contemplated by 40 U.S.C. 276a, or by a combination of these. 3. Contributions made, or costs assumed, on other than a weekly basis (but not less often than quarterly) are considered as having been constructively made for a weekly period. When a fringe benefit is expressed in a wage determination in any manner other than as an hourly rate and the Lessor pays a cash equivalent or provides an alternative fringe benefit, the Lessor must furnish infomration with the Lessor's payrolls showing how the Lessor determined that the cost incurred to make the cash payment or to provide the alternative fringe benefit is equal to the cost of the wage -determination fringe benefits. When the Lessor provides a fringe benefit different from that contained in the wage determination, the Lessor must show how the hourly rate was arived at. In the event of disagreement as to an equivalent of any fringe benefit, the contracting officer must submit the question, together with the contracting officer's recommendation, to the Secretary of Labor for final determination. 4. If the contractor does not make payments to a trustee or other third person, the contractor may consider as payment of wages the costs reasonably anticipated in providing bona fide fringe benefits, but only with the approval of the Secretary of Labor pursuant to a written request by the Lessor. The Secretary of Labor may require the Lessor to set aside assets in a separate account, to meet the Lessor's obligations under any unfunded plan or program. 5. The contracting officer will require that any class of laborers or mechanics not listed in the wage -determination but to be employed under the contract will be classified in conformance with the wage - determination and report the action taken to the Administrator of the Wage and Hour Division, Employment Standards Administration, RETERMSS (v2.2, June 1999) A-6 aUNITED STATES POSTAL SERVICE. • • General Conditions to USPS Lease U.S. Department of Labor, Washington, D.C. 20210-0001 for approval. The contracting officer will approve an additional classification and wage rate and fringe benefits therefor only if. (a) The work to be performed by the classification requested is not performed by a classification in the wage -determination; (b) The classification is utilized in the area by the construction industry; and (c) The proposed wage rate, including any bona fide fringe benefits, bears a reasonable relationship to the wage rates contained in the wage determination. 6. If the Lessor, the laborers or mechanics to be employed in the classification or their representatives, and the contracting officer do not agree on the proposed classification and wage rate and fringe benefits therefor, the contracting officer must submit he question, together with the views of the interested parties and the contracting officer's recommendation, to the Wage and Hour Administrator for final determination. The Administrator or authorized representative will, within 30 days of receipt, approve, modify, or disapprove every proposed additional classification action, or issue a final determination if the parties disagree, and so advise the contracting officer or advise that additional time is necessary. The final approved wage rate (and fringe benefits if appropriate) must be paid to all workers performing work in the classification under the contract from the first day work is performed in the classification. The Lessor will post a copy of the final determination of the conformance action with the wage -determination determination at the site of the work. (The Department of Labor information collection and reporting requirements contained in subparagraph a.5 above and in this subparagraph a.6 have been approved by the Office of Management and Budget under OMB control number 1215-0140.) b. Apprentices and Trainees 1. Apprentices may be permitted to work only when (a) registered, individually, under a bona fide apprenticeship program registered with a State apprenticeship agency recognized by the Bureau of Apprenticeship and Training, U.S. Department of Labor, or, if no such recognized agency exists in a state, under a program registered with the Bureau of Apprenticeship and Training; or (b) if not individually registered in the program, certified by the Bureau of Apprenticeship and Training or state agency (as appropriate) to be eligible for probationary employment as an apprentice. Trainees may be permitted to work only if individually registered in a program approved by the Employment and Training Administration, U.S. Department of Labor. 2. The ratio of apprentices to joumeymen or trainees to joumeymen in any craft classification must not be greater than that permitted for the Lessor's entire work force under the registered apprenticeship or trainee program. Apprentices and trainees must be paid at least the applicable wage rates and fringe benefits specified in the approved apprenticeship or trainee program for the particular apprentice's or trainee's level of progress, expressed as a percentage of the journeyman hourly rate specified in the applicable wage - determination. If the apprenfceship or trainee program does not specify fringe benefits, apprentices or trainees must be paid in the full amount of fringe benefits listed on the wage -determination for the applicable classification unless the Administrator of Wage and Hour Division determines that a different practice prevails. Any employee listed on a payroll at an apprentice or trainee wage rate not registered, or performing work on the job site in excess of the ratio permitted under the registered program, must be paid the wage rate c. d. on the wage determination for the classification of work actually performed. 3. If the Bureau of Apprenticeship and Training or State agency recognized by the Bureau (as appropriate) withdraws approval of an apprenticeship program, or if the Employment and Training Administration withdraws approval of a trainee program, the contractor will no longer be permitted to utilize apprentices or trainees (as appropriate) at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (See 29 CFR 5.16 for special provisions that apply to training plans approved or recognized by the Department of Labor prior to August 20, 1975.) 4. The utilization of apprentices, trainees, and journeymen must be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR Part 30. Overtime Compensation 1. The Lessor may not require or permit any laborer or mechanic employed on any work under this contract to work more than 40 hours in any workweek on work subject to the provisions of the Contract Work Hours and Safety Standards Act (40 U.S.C. 327-333), unless the laborer or mechanic receives compensation at a rate not less than one -and -one-half times the laborer's or mechanic's basic rate of pay for all such hours worked in excess of 40 hours. 2. For violations of subparagraph c.1 above the Lessor is liable for liquidated damages, which will be computed for each laborer or mechanic at $10 for each day on which the employee was required or permitted to work in violation of subparagraph c.1 above. 3. The contracting officer may withhold from the Lessor sums as may administratively be determined necessary to satisfy any liabilities of the Lessor for unpaid wages and liquidated damages pursuant to subparagraph c.2 above. Payroll and Other Records 1. For all laborers and mechanics employed in the work covered by this clause, the Lessor must maintain payrolls and related basic records and preserve them for a period of three years after contract completion. The records must contain the name, address, and social security number of each employee, the employee's correct classification, rate of pay (including rates of contributions for, or costs assumed to provide, fringe benefits), the daily and weekly number of hours worked, deductions made, and actual wages paid. Whenever the Lessor has obtained approval from the Secretary of Labor to assume a commitment to bear the cost of fringe benefits under subparagraph a.4 above, the Lessor must maintain records showing the commitment and its approval, communication of the plan or program to the employees affected, and the costs anticipated or incurred under the plan or program. Lessors employing apprentices or trainees under approved programs must maintain written evidence of the registration of apprenticeship programs and certification of trainee programs, the registration of the apprentices and trainees, and the ratios and wage rates prescribed in the applicable programs. (The Department of Labor information collection and record keeping requirements in this subparagraph d.1 have been approved by the Office of Management and Budget under OMB control numbers 1215-0140 and 1215-0017). 2. The Lessor must submit weekly, for each week in which any work covered by this clause is performed, a copy of all payrolls to the contracting officer. The Lessor is responsible for the submission of copies of payrolls of all subcontractors. The copy must be accompanied by a statement signed by the Lessor indicating that the payrolls are correct and complete, that the wage rates contained in them are not less than those determined by the Secretary of Labor, RETERMSS (v2.2, June 1999) A-7 • 5 ��� UNITED STATES POSTAL SERVICE. • General Conditions to USPS Lease and that the classifications set forth for each laborer or mechanic conform with the work the laborer or mechanic performed. Submission of the Weekly Statement of Compliance (see 29 CFR 5.5(a)(3)(ii)) required under this agreement satisfies this requirement. As required by this clause, the Lessor must submit a copy of any approval by the Secretary of Labor. (The Department of Labor information collection and reporting requirements in this subparagraph d.2 have been approved by the Office of Management and Budget under OMB control number 1215-0149.) 3. The Lessor's records required under this clause must be available for inspection by authorized representatives of the contracting officer and the Department of Labor, and the Lessor must permit the representative to interview employees during working hours on the job. 4. The Lessor must comply with the Copeland Regulations of the Secretary of Labor (29 CFR Part 3), which are hereby incorporated in this contract by reference. e. Withholding of Funds. The contracting officer may withhold from the Lessor under this or any other contract with the Lessor so much of the accrued payments or advances as is considered necessary to pay all laborers and mechanics the full amount of wages required by this contract or any other contract subject to the Davis -Bacon prevailing wage requirements that is held by the Lessor. f. Subcontracts 1. If the Lessor or any subcontractor fails to pay any laborer or mechanic employed on the site of the work any of the wages required by the contract, the contracting officer may, after written notice to the lessor, suspend further payments or advances to the lessor until violations have ceased. 2. The lessor agrees to insert this clause, including this paragraph f, in all subcontracts hereunder. The term "lessor" as used in this clause in any subcontract, is deemed to refer to the lower - tier subcontractor. g. Compliance with Davis -Bacon and Related Acts Requirements. All rulings and interpretations of the Davis -Bacon Act and related acts contained in 29 CFR Parts 1, 3, and 5 are hereby incorporated by reference in this contract. h. Certification of Eligibility 1. By entering into this contract, the lessor certifies that neither it or any person or firm having an interest in the lessor is ineligible to be awarded contracts by virtue of section 3(a) of the Davis - Bacon Act or 29 CFR 5.12(a)(1). 2. No part of this contract will be subcontracted to any person or firm ineligible for contract award by virtue of section 3(a) of the Davis -Bacon Act or 29 CFR 5.12(a)(1). 3. The penalty for making false statements is prescribed in the U.S. Criminal Code, 18 U.S.C. 1001. i. Contract Termination and Debarment. A breach of this Davis - Bacon Act clause may be grounds for termination of the contract and debarment as a contractor and subcontractor as provided in 29 CFR 5.12. j. Disputes Concerning Labor Standards. Disputes arising out of the labor standards provisions of this contract are not subject to the Claims and Disputes clause. They will be resolved in accordance with the procedures of the Department of Labor set forth in 29 CFR Parts 5, 6, and 7. Disputes within the meaning of this clause include disputes between the lessor (or any of its subcontractors) and the Postal Service, the U.S. Department of Labor, or the employees or their representatives. A.28 BANKRUPTCY In the event the Lessor enters into proceedings relating to bankruptcy, whether voluntary or involuntary, the Lessor will furnish, by certified mail, written notification of the bankruptcy to the contracting officer responsible for administering the contract. The notification must be furnished within five days of the initiation of the bankruptcy proceedings. The notification must include the date on which the bankruptcy petition was filed, the court in which the petition was filed, and a list of Postal Service contracts and contracting officers for all Postal Service contracts for which final payment has not yet been made. This obligation remains in effect until final payment under this contract. RETERMSS (v2.2, June 1999) A-8 • rr'SI UNITED STATES POSTAL SERVICE. • • Representationsand Certifications SECTION B B.1 TYPE OF BUSINESS ORGANIZATION The offeror, by checking the applicable blocks, represents that it: a. Operates as ® a corporation incorporated under the laws of the State of Ar kan s a s 0 an individual, ❑ a partnership, 0 a joint venture, 0 a non-profit organization, or 0 an educational institution; and b. Is a 0 small business concern, 0 minority-owned business, 0 woman -owned business, ❑ labor surplus area concern, ❑ educational or other non-profit organization or 0 none of the above entities. c. SMALL BUSINESS CONCERN. A small business concern for the purposes of Postal Service procurement is a concern, including its affiliates, which is independently owned and operated, is not dominant in the field of operations in which it is submitting an offer, and is of a size consistent with the standards set forth by SBA in CFR Part 121, or if no standard has been established, then of a size employing not more than 500 employees. (Also see USPS Procurement Manual, Chapter 10, Section 1.) d. MINORITY-OWNED BUSINESS. A minority-owned business is a concern that is at least 51 percent owned by, and whose management and daily business operations are controlled by, one or more members of a socially and economically disadvantaged minority group, namely U.S. citizens who are black Americans, Hispanic Americans, Native Americans, Asian -Pacific Americans, or Asian -Indian Americans. ("Native Americans" means American Indians, Eskimos, Aleuts, and native Hawaiians. "Asian -Pacific Americans" means those whose origins are in Japan, China, the Philippines, Vietnam, Korea, Samoa, Guam, the U S Trust Territories of the Pacific Islands, the Northern Marianas Islands, Laos, Kampuchea, or Taiwan. "Asian -Indian Americans" means those whose origins are in India, Pakistan, or Bangladesh.) e. WOMAN -OWNED BUSINESS. A woman -owned business is a business which is at least 51 percent owned, controlled, and operated by a woman or women. Controlled is defined as exercising the power to make policy decisions. Operated is defined as actively involved in the day-to-day management. 1. LABOR SURPLUS AREA. A geographical area which at the time of award is either a section of concentrated unemployment or underemployment, a persistent labor surplus area, or a substantial labor surplus area, as defined in this paragraph. 1. Section of concentrated unemployment or underemployment means appropriate sections of States or labor areas so classified by the Secretary of Labor. 2. Persistent labor surplus area means an area which is classified by the Department of Labor as an area of substantial and persistent labor surplus (also called Area of Substantial and Persistent Unemployment) and is listed as such by that Department in conjunction with its publication, Area Trends in Employment and Unemployment. 3. Substantial labor surplus area means an area which is classified by the Department of Labor as an area of substantial labor surplus (also called Area of Substantial Unemployment) and which is listed as such by that Department in conjunction with its publication, Area Trends in Employment and Unemployment. g. LABOR SURPLUS AREA CONCERN. A firm which will perform or cause to be performed a substantial proportion of a contract in a labor surplus area. h. EDUCATIONAL OR OTHER NON-PROFIT ORGANIZATION. Any corporation, foundation, trust, or other institution operated for scientific or educational purposes, not organized for profit, no part of the net earnings of which inures to the profits of any private shareholder or individual. B.2 PARENT COMPANY AND TAXPAYER IDENTIFICATION NUMBER a. A parent company is one that owns or controls the basic business policies of an offeror. To own means to own more than 50 percent of the voting rights in the offeror. To control means to be able to formulate, determine, or veto basic business policy decisions of the offeror. A parent company need not own the offeror to control it; it may exercise control through the use of dominant minority voting rights, proxy voting, contractual arrangements, or otherwise. b. Enter the offeror's Taxpayer Identification Number (TIN) in the space provided. The TIN is the offeror's Social Security Number or other Employee Identification Number used on the offeror's Quarterly Federal Tax Retum, U.S. Treasury Form 941. Offerors TIN: c. 0 Check this block if the offeror is owned or controlled by a parent company. REREPS (v2.2, June 1999) 6-1