WASHINGTON METROPOLITAN AREA TRANIST AUTHORITY

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2 WASHINGTON METROPOLITAN AREA TRANIST AUTHORITY Amendment of Solicitation RFP CQ13055R/RAM B. SP Article 16, General Insurance Requirements is amended to clarify that the Railroad Protective Liability Insurance is not required for picking up and delivering railcars, but is required for work activities on WMATA railroad premises. Also, the Business Automobile Liability Insurance is raised from $2,000,000 to $5,000,000. II. Technical Specifications, Section 100, Article 1.3 Submittals is amended to provide submittal time frames. Also, a Project Specific Quality Assurance Program Plan will be required. III. Questions & Answers No. 01 attached. End Amendment No. 02 Page 2 of 2

railcars, but is required for work activities on WMATA railroad premises. Also, the Business Automobile Liability Insurance is raised from $2,000,000 to $5,000,000. II.

3 WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY SUPPLY AND SERVICE CONTRACT RFP-CQ13055R/RAM 14. WARRANTY a. The Contractor warrants the railcars, components, parts and equipment furnished under this Contract against defects or failures, as defined herein, for the specific periods stated in this Article. Any defect or failure occurring prior to commencement of the warranty period shall be covered under the INSPECTION Article of the General Provisions, any provision of that Article to the contrary notwithstanding. b. For purposes of this Article, defect or failure shall mean any condition, whatsoever the cause, whereby a railcar, component, part or equipment shall require maintenance, repair or replacement or otherwise fail to conform to the Specification other than: 1. Scheduled maintenance recommended by the Contractor and accepted by the Authority, including repair or replacement of consumable items where the item has met the minimum life expectancy generally recognized in the industry for such item; and 2. Maintenance, repair or replacement resulting solely from causes beyond the control and without the fault or negligence of the Contractor, his employees, agents, subcontractors or suppliers, including failure of the Authority to perform scheduled maintenance recommended by the Contractor. c. The Authority reserves the right to perform normal, routine maintenance and periodic inspections without voiding the warranty. d. The warranty period(s) shall commence, for each individual car, when said car is preliminarily/conditionally accepted and shall run for: One (1) year for repaired carbody and carbody structures; One (1) year for all remaining elements, components, parts and equipment furnished by the contractor; One (1) year for the workmanship of the railcars. 1. The warranty period(s) shall not run while the car is out of service for warranty work, field modifications, or modifications necessary to correct defective design, material or workmanship and shall be extended a day for each day that a railcar is not available for service. 2. The Authority shall be responsible for the warranty of all parts and materials supplied by the Authority unless the part or material was damaged by the Contractor during its functions. 78

Any defect or failure occurring prior to commencement of the warranty period shall be covered under the INSPECTION Article of the General Provisions, any provision of that Article to the contrary

4 WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY SUPPLY AND SERVICE CONTRACT RFP-CQ13055R/RAM 3. Business Automobile Liability Insurance, with minimum combined single limits of $5,000,000 per occurrence, covering contractor against claims for bodily injury and property damage arising out of the ownership, maintenance or use of any owned, hired, or non-owned motor vehicle. WMATA shall be added as an additional insured on the policy. 4. Not Used 5. Property Insurance (including flood, quake, if warranted) in WMATA s name covering WMATA s railcars while in the Contractor s care, custody and control, providing all-risk coverage (including terrorism) for physical damage or destruction to property with limits of not less than the full replacement cost of railcars to be transported. WMATA s Property Insurance schedule carries a replacement cost value of $3.5 million per railcar. (per s.o.w. - railcars 5056 & 5057) 6. To the extent any of the railcars being refurbished under this contract are moved off of WMATA s premises by Contractor for any of the work, Inland Marine insurance (or an Inland Marine endorsement to the required Property insurance noted in #5 above) providing all-risk coverage (including terrorism) covering transit risk, including loading and unloading. To the extent that the Contractor performs any work activities on WMATA s railroad premises, other than the loading and off-loading of railcars onto Contractor s trailers, the Contractor shall be required to procure and at all times maintain Railroad Protective Liability Insurance (RRP) issued to WMATA as the Named Insured with minimum limits of $5,000,000 per occurrence/$10,000,000 aggregate and covering the liability of the Authority arising from all Contracting Parties work to be performed within fifty (50) feet (on, above, adjacent to or underneath) of the Authority 's railroad tracks or within Authority rail stations for any personal injuries or deaths or any damage to the property, equipment and facilities caused by the activities of any Contractor or Subcontractor resulting from performance of this contract work. THE ORIGINAL POLICY SHOULD BE FORWARDED TO WMATA. WMATA Blanket RRP Program Option The Authority may offer to waive the requirement for the Contractor to procure RRP if 1) the work can be covered under the Authority s blanket RRP program, and 2) the Contractor prepays the premium which shall be determined by the rate schedule promulgated by the insurer in effect as of the effective date of this Contract. Contractor shall be advised of and pay the applicable premium, or procure a standalone RRP policy on the Authority s behalf. 17. BOND REQUIREMENTS a. Within 10 calendar days after the prescribed forms are presented for signature to the proposer to whom award is made, a written Contract and Attachments on the forms provided in this solicitation shall be executed and delivered to the Contracting Officer or other delegated Authority Representative, together with a performance bond and payment bond if applicable if the Contract price is $100,000 or more, each with good and sufficient surety or sureties acceptable to the Authority. Corporations executing the bonds as sureties must be among those appearing on the Treasury Department's list of approved sureties and must be acting within the limitations set forth therein. The penal sums of such bonds shall be as follows: 82

ownership, maintenance or use of any owned, hired, or non-owned motor vehicle. WMATA shall be added as an additional insured on the policy. 4. Not Used 5.

5 WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY Supply and Service Contract RFP CQ13055R/RAM 1.3 SUBMITTALS The Contractor shall submit to the Authority for review and approval, in both electronic and hard copy, all relevant technical documentation related to the repairs of the railcars as defined in these technical specifications and per relevant exhibits, including, but not limited to: A. Within 60 calendar days after contract award: 1. A copy of Contractor s current ISO 9001:2008 (or latest) certification. 2. Project Specific Quality Assurance Program Plan. 3. Plan to dismantle and analyze damaged areas for review and approval. B. Within 180 calendar days after contract award: 1. Factory Procedure for the structural repairs to the railcars for review and approval. 2. Factory Procedures for all other repairs to the railcars for review and approval. C. Factory Test Procedures for review and approval at least 90 cds before scheduled test. D. Prior to Authority approval for shipment of the railcars to the Authority: 1. Factory Inspection Reports for review and approval. 2. All Factory Test Reports to the Authority for review and approval. 3. Railcar final acceptance test procedures for review and approval. E. Any recommended updates for the operation and maintenance of the railcars before contract completion. * * * Section 100 Page 2 of 2

defined in these technical specifications and per relevant exhibits, including, but not limited to: A. Within 60 calendar days after contract award: 1.

6 CQ13055R/RAM, Repair of Railcars 5056 & 5057 Questions and Answers No. 1 November 26, 2013 No. Reference Question Answer 01 SP Section 14, Warranty Paragraph D requires a five (5) year warranty for repaired carbody and carbody structures. *** will only offer a one (1) year warranty for the repaired carbody. An amendment is being issued to change the warranty to one year. 02 SP Section 16, "General Insurance Requirements" With regards to the requirement for railroad protective liability insurance and in consideration that the repairs to the carbodies will be performed at *** company's facility. *** will not provide such coverage. Special Provisions Article 16, General Insurance Requirements is being amended to clarify that railroad protective liability insurance (RRP) will not be required for picking up and delivering railcars. RRP will still be required for work activities on WMATA railroad premises. 03 SP Section 28, "Liquidated Damages" As with any severely damaged transit car, it is extremely difficult to determine the repair cycle until the car is substantially stripped of the damages and the appropriate analysis, engineering and repair methods are developed and approved. This process is required for every section of the carboy's structure that has been damaged. The length of time that this process requires will vary dependent on the damages uncovered and the complexity of the appropriate repairs. For the above reasoning, *** cannot agree to liquidated damages for the structural repairs. The Authority is aware of the significant risks associated with the repairs to the railcars. However, in a competitive procurement environment the repairs cannot be open ended. The LDs are not a penalty and only cover the Authority s administrative costs past the contract period of performance which may be extended for circumstances beyond a contractor s control. For this Request for Proposal process, the Authority intends to negotiate with offerors for the best value which may include schedule, and exceptions to the terms and conditions. Page 1 of 1

*** will only offer a one (1) year warranty for the repaired carbody. An amendment is being issued to change the warranty to one year.

INSURANCE REQUIREMENTS FOR CONSTRUCTION CONTRACTS ABOVE $25,000

Page 1 of 9 DOCUMENT 00850 INDEMNIFICATION AND INSURANCE REQUIREMENTS EXHIBIT B-1 INSURANCE REQUIREMENTS FOR CONSTRUCTION CONTRACTS ABOVE $25,000 Indemnity The Contractor shall indemnify, defend, and hold