 was adapted as its theme. Bernard Herrmann, CBS resident melodian, was assigned the score, and Dan Seymour was announcer. Houseman became the show's editor, and Paul Stewart was associate producer. Davidson Taylor was sent in to supervise for CBS.

It was a concentrated shot of talent for a 60-minute dramatic series. *The Mercury Theatre on the Air* opened July 11 with Bram Stoker's *Dracula*. Welles played two roles, Dr. Seward and Count Dracula; Gabel was Dr. Van Helsing, Coulouris was Jonathan Harker,

With the new fall season, The Mercury Theatre became a regular, moving on September 11 into an unenviable Sunday-night time slot opposite Edgar Bergen’s Chase & Sanborn Hour. Bergen then had America’s top-rated show, pulling in a Crossley-estimated 34.7 percent of the total audience. After seven broadcasts in its new Sunday slot, The Mercury Theatre was rated at 3.6 percent. But on Hallow-e’en eve, Welles and his group staged the ultimate in radio thrillers, a science fiction fantasy that sent people running into the streets in terror. That night a series of disjointed events went into motion that would make The War of the Worlds the most famous single radio show ever broadcast.

First came basic dissatisfaction of the Mercury staff with the story. H. G. Wells’ fantasy about invaders from Mars who landed in England with their terrible mechanical fighting machines seemed highly futuristic when it was published in 1898. Forty years later, the Mercury staff fretted over its credibility. Writer Howard Koch phoned Houseman the Tuesday before the broadcast, distraught over the assignment. There was no way this ancient epic could be adapted effectively for modern radio.

Houseman considered changing plays. Lorna Doone was available, but coming on the heels of several traditional classics, it seemed a dull alternative. Houseman phoned Welles, who was deep in rehearsal for the Mercury play, Danton’s Death. Welles wouldn’t come to the phone, so Houseman told Koch to go ahead with the script, and he—Houseman—would come over and help.

By the time Houseman had arrived, Koch had gotten his Martians down to earth and was spreading poisonous black smoke across the marshlands of New Jersey. The two men hammered at the script for almost 36 hours, finally wrapping it up on Wednesday night, four days before the broadcast.

On Thursday morning, the cast was assembled for the first rough rehearsal. The rehearsal was recorded and played back that night in Welles’ office. Everyone was despondent. As written and rehearsed, The War of the Worlds just didn’t make it. Somehow it had to be modernized, its newscast simulations heightened and intensified. Real names and details had to be added, to give the illusion of up-to-the-minute reality. Already the London setting of the novel had
become Grover's Mill, New Jersey. Now narrative became news bulletin as the staff worked over the script through the night. Horrid present-tense reports of thousands killed, of poison gas spreading westward, of route instructions for getting out of town, were written in. More bulletins were added, of fires and of people crushed in the mad stampede away from the scene. "Seven thousand armed men, pitted against the single fighting machine of the invaders from Mars—120 known survivors..."

Friday afternoon, the revised script was passed by the CBS censors, with few alterations. The Hotel Biltmore was changed to the Park Plaza; President Roosevelt was changed to the nameless "secretary of the interior;" a few other actual names were deleted. Welles still hadn't come to the studio by Saturday, so the afternoon rehearsal was done without him. Frank Readick, who played newsman-in-the-field Carl Phillips, had dug out the transcriptions of Herb Morrison's on-the-scene report of the Hindenburg crash at Lakehurst, New Jersey. Morrison's emotional broadcast, filled with weeping as scores of people died before him, became Readick's model in describing the horrors of the Martian heat ray.

For all purposes, The War of the Worlds was ready to air. Then Welles began to add his magic touches. Early news bulletins were dragged out and lengthened, over the objections of staff. The first orchestra number—"La Cumparsita" by the fictional Ramon Raquello and his Orchestra—was beefed up; a later number by "Bobby Milette" was also lengthened. Welles' theory was simple: "The War of the Worlds" would work by contrast. The slow passage of time early in the show would contribute to the illusion of reality; then the tempo would pick up dramatically, with the opening of the Martian cylinder, and would rush to climax with express-train speed.

They were exactly 12 minutes into the broadcast when things began happening. Precisely at that minute, Edgar Bergen brought out a singer on NBC, and an estimated 3 to 6 million listeners went dial-twisting. Most of them froze when they heard shrill news bulletins about something happening on Mars. Hitler's antics had the nation jumpy anyway; when reports of a warlike confrontation in eastern New Jersey began shaping up, few listeners changed the station.

As a result, they missed the full opening signature, which made clear that the Columbia Broadcasting System and its affiliated stations were presenting Orson Welles and The Mercury Theatre on the Air in The War of the Worlds, by H. G. Wells. What they did hear was "Carl Phillips," giving an on-the-scene report of a cylinder of unknown origin hitting earth "with almost earthquake force" near Grover's Mill, New Jersey.
Ladies and gentlemen, this is the most terrifying thing I have ever witnessed—wait a minute! Someone's crawling out of the hollow top—someone or . . . something. I can see peering out of that black hole two luminous discs. Maybe eyes, might be a face . . . Good heavens, something's wriggling out of the shadow like a gray snake. Now it's another one . . . They look like tentacles . . . I can see the thing's body now—it's large as a bear. It glistens like wet leather. But that face, it's . . . it's . . . ladies and gentlemen, it's indescribable; I can hardly force myself to keep looking at it, it's so awful. The eyes are black and gleam like a serpent; the mouth is . . . kind of V-shaped, with saliva dripping from its rimless lips that seem to quiver and pulsate. The monster or whatever it is can hardly move; it seems weighted down possibly by gravity or something. . . .

Things happened fast from there. The monster rigged its fighting machine, with Phillips giving a running account, and the war of the worlds began. The heat ray turned soldiers to screaming flames; fires spread everywhere, and suddenly Phillips was cut off the air. A piano interlude, another Welles innovation, heightened the horror with its soft touches. Then the bulletins began pouring in.

Red Cross emergency workers dispatched to the scene . . . bridges hopelessly clogged with frantic human traffic. . . .

Finally came the announcement that capped it:

Ladies and gentlemen, as incredible as it may seem, both the observations of science and the evidence of our eyes lead to the inescapable assumption that those strange beings who landed in the Jersey farmlands tonight are the vanguard of an invading army from the planet Mars . . . The monster is now in control of the middle section of New Jersey and has effectively cut the state through its center. Communication lines are down from Pennsylvania to the Atlantic Ocean. Railroad service from New York to Philadelphia discontinued, except routing some of the trains through Allentown and Phoenixville. Highways to the north, south, and west are clogged with frantic human traffic. Police and Army reserves are unable to control the mad flight. By morning the fugitives will have swollen Philadelphia, Camden and Trenton, to twice their normal populations. Martial law prevails throughout New Jersey and eastern Pennsylvania. . . .
Bulletins too numerous to read are piling up in the studio here. The central portion of New Jersey is blacked out from radio communication due to the effect of the heat ray upon power lines and electrical equipment.

The panic began in New Jersey and spread north and west. Men staggered into bars, babbling about the end of the world, and bartenders tuned in just in time to hear Kenny Delmar's icy message as "the Secretary of the Interior." Honoring the censors' ultimatum not to use the President's name, Delmar nevertheless put on his best Roosevelt voice. Word spread that Roosevelt was on the air, giving the public emergency instructions. Martian cylinders were falling all over the country now—in Newark, people wrapped their faces in wet towels and took to the streets in flight. A hospital there treated more than twenty people for shock. At a college campus in North Carolina, students fought over the few available telephones. The editor of the Memphis Press-Scimitar called his staff back to work for an extra edition on "the bombing of Chicago." A woman in Pittsburgh was saved by her husband in an attempt to swallow poison. A power shortage in a small Midwestern town at the height of the show sent people screaming into the streets. In Boston, families gathered on rooftops and imagined that they could see the glow of red against the night sky as New York burned.

The panic spread into the South—there were wild rumors that New York had been hit by a planetoid, with casualties running into millions. People gathered in churches from Richmond to Birmingham, praying to their Maker, and from towns near the Rockies people scattered into the hills, losing themselves so thoroughly that sheriffs' posses ultimately had to track


, Deputy Head of Press & PR
Emma.hewitt@bfi.org.uk
020 7173 3264 / 07584 264 618

Tina McFarling, Media Advisor, Corporate, Partnerships & Industry
Tina.McFarling@bfi.org.uk
020 7957 4797 / 07879 421 578

Judy Wells, Head of Press and PR, BFI
Judy.Wells@bfi.org.uk
020 957 8919 / 07984 180 501

NOTES TO EDITORS

About the BFI
The BFI is the lead organisation for film in the UK with the ambition to create a flourishing film environment in which innovation, opportunity and creativity can thrive by:

- Connecting audiences to the widest choice of British and World cinema
- Preserving and restoring the most significant film collection in the world for today and future generations
- Championing emerging and world class film makers in the UK - investing in creative, distinctive and entertaining work
- Promoting British film and talent to the world
- Growing the next generation of film makers and audiences

The BFI is a Government arm’s-length body and distributor of Lottery funds for film. The BFI serves a public role which covers the cultural, creative and economic aspects of film in the UK. It delivers this role:

- As the UK-wide organisation for film, a charity core funded by Government
- By providing Lottery and Government funds for film across the UK
- By working with partners to advance the position of film in the UK.

Founded in 1933, the BFI is a registered charity governed by Royal Charter. The BFI Board of Governors is chaired by Josh Berger CBE.

The BFI London Film Festival
BFI London Film Festival is Britain’s leading film event and one of the world’s best film festivals. It introduces the finest new British and international films to an expanding London and UK-wide audience and attracts significant international film industry participation. LFF is a compelling combination of diverse films, red carpet
glamour, friendly audiences and vibrant exchange. LFF provides an essential profiling opportunity for films seeking global success; promotes the careers of British and international filmmakers through its industry and awards programmes and positions London as the world’s leading creative city.

**About American Express**
American Express is a diversified worldwide travel, financial and network services company founded in 1850. It is a leader in charge and credit cards, Travellers Cheques, travel and insurance products.

Through American Express Invites®, Cardmembers have access to enriched experiences at some of the UK’s most sought after entertainment events, including best seats, exclusive offers and early-on-sale tickets. The company has multi-year partnerships with a range of entertainment institutions including AEG, Live Nation, Ticketmaster, Somerset House, The British Film Institute and National Theatre.

For more detail on the enriched service American Express offers its Cardmembers, please visit [americanexpress.co.uk/whyamex](http://americanexpress.co.uk/whyamex) or connect with AmericanExpressUK on Facebook or Twitter @AmexUK<|endoftext|>Liverpool Film Seminar

2013 – 2014 series

Every year, Liverpool Film Seminar invites six experts to deliver a series of talks. Topics vary greatly and the series does not focus on a specific aspect of film. Instead, a range of genres and approaches are celebrated, from historical reach to the internet’s impact on cinematic material.

Professor Laura Mulvey (Birkbeck College, University of London)

Hitchcock’s Blondes and Feminist Film Theory: a Cinema of Voyeurism or a Cinema of Self-reflexivity?

The ‘Hitchcock blonde’ has become an established cliché image within popular culture today, recognised, recounted and discussed beyond film theory circles. In this lecture Laura Mulvey returns to significance of Hitchcock’s blonde heroines and his voyeuristic cinema for the development her feminist and psychoanalytic approach to film in the 1970s. Recently, after a gap of 40 years, she has returned to the ‘Hitchcock blonde’ to reflect on his cinema as, perhaps, revealing and self-reflexive rather than simply misogynistic.

Biography:

In 1994, she co-directed with artist/filmmaker Mark Lewis *Disgraced Monuments* (Channel 4) with whom she has also made 23 August 2008 (2013). She is Professor of Film and Media Studies at Birkbeck College, University of London and Director of the Birkbeck Institute for the Moving Image.
Professor Jane Feuer (University of Pittsburgh, USA)

Theatricality and Quality Drama: a Neglected Connection

Although HBO-style "not TV" dramas may be considered an offshoot of indie cinema, and although some HBO auteurs such as David Chase consider themselves to be filmmakers, the debt quality drama owes to a theatrical playwrighting tradition may be even greater than the influence of cinema. A newspaper article referred to Aaron Sorkin as "the playwright, television writer and Oscar-winning screenwriter of The Social Network" in that order. Writers on In Treatment and Six Feet Under have been cited for their backgrounds as playwrights, not as filmmakers. Network television, picking up on the quality TV style for the 2012 drama SMASH not only set the show in the theater, but also hired playwright Theresa Rebeck as the first season showrunner. HBO has awarded grants to develop playwrights. Writers and producers originating in theater dominated television drama in the 1950s and they dominate quality drama today to a much greater extent than has been recognized by academic TV scholars coming from cinema studies. Theater people can also be found in quality dramas of the 1980s that seem to have been eclipsed by post-HBO dramas. Theatricality is also a sensibility and a mode of scene construction; these too can be shown to be a major influence on television drama. Theater as an origin relates to the demographics of quality drama. This audience appreciates the higher cultural capital theater has over film, and HBO has not hesitated to publicize its link to the theater. The paper will argue about the importance of playwrights in US TV and the impact of theatricality on contemporary TV dramas.

Biography:

Jane Feuer is Professor of English at the University of Pittsburgh where she teaches in the Film Studies Program. She has lectured internationally on Hollywood musicals and television. Her current work involves "quality drama" as it has evolved on U.S. television since the 1990s. Previously she wrote about earlier quality dramas in Seeing through the Eighties. She was one of the founders of Television Studies as it emerged out of film studies from the 1980s to the present.<|endoftext|>PRIZES AND AWARDS

- Best Chopin Piano Concerto: $8,000
- Non-prize Semifinalists: $1,000 (for the 10 best)
- 1st Prize Winners: $15,000
- 2nd Prize Winners: $10,000
- 3rd Prize Winners: $5,000
- 4th Prize Winners: $4,000
- Audience Award: Certificate

REGULATIONS

ELIGIBILITY

- Applicants who have won the first and second prizes in any major international piano competitions, which should be announced before July 1, 2021.
- They must confirm their acceptance in the competition form before 23:59(GMT) September 15, 2021. All important documents and materials should be sent in before 23:59(GMT) September 15, 2021.
- Applicants born on or after November 7, 1990 may apply for the competition.

ARTISTIC DIRECTOR

Fu Renchang
Associate Head of Conducting Department, Shanghai Philharmonic Orchestra

THE PURPOSE

The China Shenzhen International Piano Concerto Competition (CSIPCC) is a pan-national public piano competition. It aims to promote international exchange and collaborations in this field and discover outstanding young pianists of the new era with Chinese characteristics. It further serves to promote the development of the cultural exchange and cultural cooperation between China and Shenzhen, and to promote the cultural development of Shenzhen.

REGULATIONS

- The 1st Prize Winners will receive a contract with Shenzhen Symphony Orchestra.
- Rehearsals for Semifinals will be held on 30 October - 1 November, 2021. The 1st Prize Winners will be announced on 2 November, 2021.
- After each round of the competition, the Organizing Committee will number the audition form and pass them on to the Screening Jury. The Jury will decide the top 70 candidates to advance to the Preliminaries.
- The length of performance should not be longer than 30 minutes. One piece of own choice from any period (about 8-10 minutes).
- From the Semifinal round, the Organizing Committee will provide practice rooms with time and a practising room for the contestants who prefer to stay with host families.
- Host families will provide daily practicing pianos.
- The Organizing Committee will provide standard accommodation and personal belongings insurance.
- Organizers are not responsible for loss or damage to personal belongings during the competition.

REPERTOIRE

- 30 minutes performance without interval. Any one of the following concertos:
  - Tchaikovsky Piano Concerto No.1 in B-flat minor, Op.23
  - Brahms Piano Concerto No.2


 standards apply. Copies of current Occupational Safety and Health Standards are available from regional and/or area offices of the U.S. Department of Labor, Occupational Safety and Health Administration.

c. If this contract or order contains a Postal Service standard and an OSHA standard covering the same general area of applicability, the Postal Service standard governs and takes precedence, unless the OSHA standard contains more rigorous or stringent safety requirements, in which case the OSHA standard governs and takes precedence.

d. Upon delivery of the first article under the contract or order, or if none, upon delivery of the first production quantity, the supplier must execute a certification in a form acceptable to the contracting officer, attesting to the conformance of the delivered items to the requirements of this clause.

Clause B-29: (Reserved) (March 2006)

Clause B-30: Permits and Responsibilities (March 2006)

The supplier is responsible, without additional expense to the Postal Service, for obtaining any necessary licenses and permits, and for complying with any applicable federal, state, and municipal laws, codes, and regulations in connection with the performance of the contract. The supplier is responsible for all damage to persons or property, including environmental damage, that occurs as a result of its omission(s) or negligence. The supplier must take proper safety and health precautions to protect the work, the workers, the public, the environment, and the property of others.

Clause B-31: (Reserved) (March 2006)

Clause B-32: Differing Site Conditions (March 2006)

a. The supplier must promptly, and before such conditions are disturbed, notify the contracting officer in writing of:

   (1) Subsurface or latent physical conditions at the site differing materially from those indicated in this contract; or

   (2) Unknown physical conditions at the site, of an unusual nature, differing materially from those ordinarily encountered and
generally recognized as inherent in work of the character provided for in this contract.

b. The contracting officer shall promptly investigate the conditions, and if such conditions do materially so differ and will cause an increase or decrease in the supplier's cost of, or the time required for, performance of any part of the work under this contract whether or not changed as a result of such conditions, an equitable adjustment shall be made and the contract modified in writing accordingly.

c. No claim of the supplier under this clause shall be allowed unless the supplier has given the notice required in a. above; provided however, the time prescribed thereof may be extended by the Postal Service.

d. No claim by the supplier for an equitable adjustment under this clause will be allowed if asserted after final payment under this contract.

Clause B-33: Inspection and Acceptance (Construction) (March 2006)

a. Except as otherwise provided in this contract, inspection and testing by the Postal Service of materials and workmanship shall be made at reasonable times and at the site of the work, unless the contracting officer determines that it shall be made at the place of production, manufacture, or shipment of such material. The contracting officer's decision shall be conclusive as to whether the material involved conforms to the contract requirements. Such off-site inspection or test shall not relieve the supplier of responsibility for damage to or loss of the material prior to acceptance, nor in any way affect the continuing rights of the Postal Service after acceptance of the completed work under the terms of paragraph f. of this section.

b. The supplier shall without charge, replace any material or correct any workmanship found by the Postal Service not to conform to the contract requirements, unless the Postal Service consents to accept such material or workmanship with an appropriate adjustment in contract price. The supplier shall promptly segregate and remove rejected material from the premises.

c. If the supplier does not promptly replace rejected material or correct rejected workmanship, the Postal Service may, by contract or otherwise, replace or correct it and charge the cost to the supplier.

d. The supplier must furnish (without charge) all facilities, labor, and materials needed to conduct inspections and tests as required by the contracting officer. The supplier will be charged any additional costs of inspection if material and workmanship are not ready at the time specified by the supplier for inspection.

e. The Postal Service may examine completed work by removing or tearing it out. The supplier must replace or correct any work found not to conform to contract requirements. If work is torn out and found to comply with contract requirements, the contracting officer must make an equitable adjustment for the services provided for the inspection and replacement of the work.
f. The Postal Service will inspect the work as soon as practicable after completion. Acceptance by an authorized Postal Service representative is conclusive except in the case of latent defects, fraud, gross mistakes amounting to fraud, or Postal Service rights under any warranty or guarantee.

Clause B-34: Notice to Proceed and Commencement, Prosecution and Completion of Work (March 2006)

No work will be performed except pursuant to a Notice to Proceed issued by the contracting officer.

The supplier will be required to:

a. Commence work under this contract within 10 calendar days after the date the supplier receives the Notice to Proceed,

b. Prosecute the work diligently, and

c. Complete the entire work, ready for use not later than ___________ calendar days from the date of receipt of the Notice to Proceed. The time stated for completion includes final cleanup of the premises.

Clause B-35: Specifications and Drawings (March 2006)

a. The supplier must keep at the site, copies of the drawings and specifications and must at all times give the contracting officer access to them. Anything mentioned in the specifications and not shown on the drawings, or shown on the drawings and not mentioned in the specifications, is of like effect as if shown or mentioned in both. In case of discrepancy or conflicts between drawings and specifications, the specifications will govern.

b. In case of difference between small and large-scale drawings, the large-scale drawings will govern. Schedules on any contract drawing will take precedence over conflicting information on that or any other contract drawing. On any of the drawings in which a portion of the work is detailed or drawn out and the remainder is shown in outline, the parts detailed or drawn out will apply also to all other like portions of the work.

c. When the word “similar” appears on the drawings, it has a general meaning and must not be interpreted as meaning identical, and all details must be worked out in relation to their location and connection with other parts of the work.

d. In case of discrepancy either in figures, drawings, or specifications, the matter must be promptly submitted to the contracting officer, who will promptly make determination in writing. Any adjustment by the supplier without such a determination will be at the supplier’s own risk and expense. The contracting officer must furnish from time to time such detailed drawings and other information as may be necessary.

e. The supplier must verify all dimensions shown of existing work, and all dimensions required for work that is to connect with work now in place,
by actual measurement of the existing work. Any discrepancies between the contract requirements and the existing conditions must be referred to the contracting officer before the supplier performs any work affected by these discrepancies.

Clause B-36 Postal Service Partial Occupancy (March 2006)

a. The contracting officer reserves the right of partial occupancy or use of facilities, services, and utilities, before final acceptance, without implying completion or acceptance of any part of the project by the Postal Service. Before such occupancy or use, the contracting officer must furnish the supplier an itemized list of work remaining to be performed or corrected. Failure to list an item will not relieve the supplier of the responsibility for complying with the terms of the contract.

b. Costs incurred as a result of such partial occupancy or use of facilities, services, and utilities are subject to equitable adjustment under the Changes clause.

Clause B-37: Changes (Construction) (March 2006)

a. The contracting officer may at any time, without notice to any sureties, by written order designated or indicated to be a change order, make changes in the work within the general scope of the contract, including changes:
   (1) In the specifications (including drawings and designs);
   (2) In the method or manner of performance of the work;
   (3) In the Postal Service-furnished facilities, equipment, materials, services, or site; or
   (4) Directing acceleration in the performance of the work.

b. Any other written or oral order (which, as used in this paragraph b., includes direction, instruction, interpretation, or determination) from the contracting officer that causes a change will be treated as a change order only if the supplier gives the contracting officer written notice stating:
   (1) The date, circumstances, and source of the order, and
   (2) That the supplier regards the order as a change order.

   This notification must be delivered to the contracting officer within 30 days of receipt of the change order.

   If any change under this clause causes an increase or decrease in the supplier’s cost of, or the time required for, the performance of any part of the work under this contract, whether or not changed by any order, the contracting officer will make an equitable adjustment and modify the contract in writing. However, except for claims based on defective specifications, no claim for any change under paragraph b. above will be allowed for any costs incurred more than 20 days before the
supplier gives written notice as required. In the case of defective specifications for which the Postal Service is responsible, the equitable adjustment will include any increased cost reasonably incurred by the supplier in attempting to comply with the defective specifications.

d. No claim by the supplier for an equitable adjustment will be allowed if asserted after final payment under this contract.

e. See also Clause B-10: Pricing of Adjustments.

Clause B-38


. Purchasing opportunities are publicized to create, promote, and ensure adequate competition. In addition, publicizing purchase opportunities is an effective way of communicating Postal Service requirements to SMWOBs.

2-27.1 **Publicizing Requirements**
The purchase/SCM team should use market knowledge to determine whether purchase, subcontracting, and prequalification opportunities should be publicized and, if so, by what means and to what extent. If there is any doubt that an identified pool of sources for any proposal represents the most capable suppliers in the marketplace or will lead to adequate competition, the purchase/SCM team should publicize. Although publicizing requirements is a matter of judgment, purchase opportunities should be publicized if:

- Best value could be realized from candidates not previously identified as potential suppliers.
- Competitive or noncompetitive awards offer significant subcontracting opportunities.
- Publicizing will further the Postal Service's supplier diversity objectives.
- The announcement of such an award may enhance future competition.
- Publicizing will further the business and competitive interests of the Postal Service.
The CO is responsible for publicizing requirements. Methods for publicizing include:

- Announcement in the GPE.
- Announcement in other media.
- Presolicitation notices.

2-27.2 **Availability of the RFPs**

When the competitive purchase method will be used, enough suppliers should be solicited to ensure adequate competition. In addition, the CO should make a reasonable effort to provide copies of the RFP to any supplier requesting one. If the requirement is being competed among prequalified suppliers, suppliers not on the prequalification list may be provided a copy of the RFP, but they must be told that the Postal Service plans to award the resulting contract to a supplier on the prequalification list. Requests for copies may be denied once a reasonable number of copies have been distributed to the solicited suppliers and others who have requested them. The CO should fully explain to suppliers the unavailability of RFPs.

Alternatively, the CO may make available through FedBizOpps (www.fedbizopps.gov), the GPE, RFPs publicized through the GPE, including specifications and other pertinent information determined necessary by the CO. When practicable and cost-effective, the CO may make additional solicitation-related information accessible through the GPE.

When an RFP or solicitation package is so voluminous that it is impracticable to reproduce a reasonable number of copies for those requesting them, a limited number of copies should be made available for sale; the cost should include the cost of reproduction and postage.

2-27.3 **Government Point of Entry**

The GPE will be used when publicizing requirements because it is recognized by the supplier community as an excellent source for information regarding purchase opportunities and RFPs. The CO will publicize requirements by posting the finalized RFP to the GPE, known as FedBizOpps, at www.fedbizopps.gov. The GPE can also be accessed electronically by the public. If using the GPE, publicizing must not occur later than issue of the RFP.

2-27.4 **Other Media**

In situations where the GPE does not provide the most effective communications channel, requirements may also be publicized via other media, including newspapers, trade journals, and electronic media. The CO, in conjunction with the purchase/SCM team, must consider:

- Conditions of the current marketplace.
- Postal Service business needs.
- Postal Service competitive needs.
- Subcontracting opportunities that would follow contract award.
As another premier business publication regarding solicitation announcements, the *Journal of Commerce* allows the Postal Service a media venue that can be accessed by any supplier. Available online, the *Journal of Commerce* can be viewed at [www.joc.com/](http://www.joc.com/).

Announcements of RFPs made available to newspapers, other news media, and trade journals may be made when there is no cost to the Postal Service. However, paid commercial announcements or advertisements may also be used when doing so is determined to be appropriate to stimulate supplier competition. In addition, purchase/SCM teams should consider the use of media to further the Postal Service’s supplier diversity objectives in relation to prime or subcontracting opportunities. The CO must choose the most cost-effective method and which newspapers, trade journals, or other news media will promote the Postal Service’s interests.

### 2-27.5 Presolicitation Notices

If the purchase/SCM team wishes to identify suppliers, it may do so by issuing a presolicitation notice (also called a "sources sought" notice) before issuing the RFP. The notice should:

- Describe the upcoming Postal Service requirement and any applicable qualification requirements.
- Announce any planned presolicitation conferences.
- Specify a date by which the supplier must respond to the notice to ensure inclusion on the RFP mailing list.

### 2-27.6 Preproposal Conference

Whenever circumstances suggest that it would add to the success of the purchase, such as when a solicitation contains complicated specifications or SOW, a preproposal conference may be held to brief suppliers. Notice of the preproposal conference should be contained in the solicitation. If time allows, suppliers should be allowed to submit written questions in advance, so that prepared answers may be distributed at the conference.

The entire purchase/SCM team should attend the conference. The CO or a designated representative must conduct the conference, with the assistance of the purchase/SCM team and assigned counsel, as appropriate.

A record of the conference must be furnished to all of the suppliers who received the solicitation. Because the role of that record is to ensure that all prospective suppliers fully understand the Postal Service’s intent with respect to the purchase, and not necessarily to provide a verbatim reconstruction of the conference, the record may be edited for clarity and brevity and corrected where necessary.

### 2-27.7 Other Topics Considered

Section 2-21, Define Supplier Diversity Objectives.

Section 2-24, Review and Finalize Request for Proposals (RFP).
2-28 Conduct Reverse Auctions Where Appropriate

Whether to conduct a reverse auction for the purchase of goods or services was determined during the Consider Auctions topic of USPS Supplying Practices Process Step 2: Evaluate Sources. If determined appropriate, a reverse auction is conducted between a buying organization and a group of suppliers who compete against each other to supply goods or services. Such goods and services must have clearly defined specifications for design, quantity, quality, delivery, and related terms and conditions.

Reverse auctions rely on competition driving prices down, which means a greater likelihood of success when purchasing less complex or specialized goods or services. Simple commodity items or services, which can be clearly defined and often have a wide range of potential suppliers, will be best suited to the auction process. Although, in some circumstances, there may be only a few eligible suppliers, their market share tends to be great enough to make an auction a viable purchasing option.

In a reverse auction, participating suppliers bid against each other, via specialized Internet software, by submitting successively lower prices during a scheduled time period. Typically, the lowest bid wins in a reverse auction; however, some full-service auction providers can support very complex auctions to better align the auction with an organization’s business practices. Bidders are able to introduce new or improved values to their bids in a visible and competitive environment. The procedure and duration of the event will be defined before the reverse auction commences, and a starting value that suppliers will bid against until the competition closes will be determined in advance. When used, the auction will be a key stage of the purchasing process.

The five steps involved in conducting a reverse auction are illustrated in Figure 2.12.

**Figure 2.12**
Reverse Auction Process

![Reverse Auction Process Diagram]

**Plan and Define Auction Requirements**

Having a clear purchase specification is critical, and should be evident in all sourcing decisions. The better the purchasing description (e.g., consisting of clear specifications for products or SOW for services), the better the sourcing results. A well-planned buy will always provide better sourcing results.

Generally, in a reverse auction, the buying organization should set a dollar amount higher than the desired final cost for the initial bid. A high dollar amount usually leads to a more favorable outcome for the buying organization in a reverse auction because suppliers bid against each other and drive the price of the product or service down. If the item manager(s) decide to source enough of the organization’s requirements to attract
suppliers, the requirements must be robust enough so that the volume can be managed and leveraged by the supply base to drive savings and efficiencies. However, the dollar amount should not be so high as to create potential risks for the organization. The key deciding principle for the appropriate level of a starting bid is the ROI, and it is easier to gain a larger ROI on a larger purchase. In some cases, the suppliers may provide something innovative; therefore, they may have some input into setting the preliminary price.

2-28.2 Determine Software Platform/Service Provider

The second step in the reverse auction process is to determine the software platform or reverse auction service provider to run the auction. As mentioned earlier in Section 2-15, Consider Auctions, the three levels of auction technology available are:

- Full-Service — a full-service provider hosts the auction process from start to finish.
- Hosted — the technology is hosted by a third party, but the auctions are organized and run by the buying organization.
- Self-Service — buying organization oversees all aspects of the auction, including implementing the auction technology internally.

Many companies specialize in reverse auctions. It is critical to choose a Reverse Auction Service Provider with a good reputation and experience in the business. Item managers should examine each firm’s functionality by mandating demonstrations of past auctions run for other companies over a wide range of goods and services.

Once selected, the Reverse Auction Service Provider should also aid the client and purchase/SCM team in


. 221). Rueda, Peris and Gil (2012) support the idea that the combination of these factors is sufficient to provide a broad, yet satisfactory definition of economic entrepreneurship.

This small company has forged a business relationship with the government and occasionally sells chocolate to the Haitian government. The company’s product has been served during government functions. It is through this association that the owners’ voices and those of the farmers are being heard. The government is more aware of the plight of the farmers’ challenges in earning a living in rural areas. Because of this business opportunity, the government understands the company’s desire to improve the quality of life for farmers in Haiti and sees the impact it has on its own citizens.

Dylick and Hockerts (2002) agree that to grow the three pillars of sustainability, entrepreneurs must pursue this effort through the political domain. The relationship between the company and the government helps guide and promote economic actions. Linnanen (2002) claims that most of the ecopreneurs that he has met run their businesses not only to make money, but to also make the world a better place. He notes that this personal commitment enhances marketing credibility and trustworthiness as business partners. The company has a steady presence in governmental relations, which is invaluable to the farmers in that the company provides end- to-end support to ensure the success and sustainability of the business in the long-term.

In summary, economic entrepreneurship is important to the economy as the entrepreneur and those invested in the company can provide the knowledge, skills, and ability to create a product or service. If the company manages itself in a way that turns a profit, it can also add jobs and create opportunities for employees to make money as well. In turn, employees have an improved opportunity to spend at least a portion of that money in their local economy and use it to improve their well-being and standard of living.

Link to Environmental Entrepreneurship

Eco-efficiency

The earth provides finite resources, and how we choose to use and replenish those resources affects the efficiency and effectiveness of ecological sustainability (Lovins, Lovins, & Hawken, 1999). Eco-efficiency is described by Dylick and Hockerts (2002) as the value that a business includes related to its cumulative ecological impact. Another definition of eco-efficiency is “the delivery of competitively-priced goods and services that satisfy human needs and bring quality of life, while progressively reducing ecological impact and resource intensity throughout the life-cycle to a level at least in line with the earth’s carrying capacity” (DeSimone & Popoff, 1997, p. 47). Humans, animals, and plants rely on the earth for resources. If these resources are not taken care of properly, we will not be able to take care of ourselves. Therefore, eco-efficiency is a valuable part of many corporate strategies, and it directly relates to the efficiency of the environment (Dylick & Hockerts, 2002).

As economic growth relates to cacao production, the cacao tree needs little attention or time from the farmer. The output is restricted due to not using or not knowing about effective farming techniques. With cacao profits dropping in the 1970s, many cacao farms were abandoned and the farming techniques have not been needed for the last 40 years (Wegbert, 2015). It would take a specialist to determine if the abandoned cacao farms are worth the effort to rehabilitate as the cacao trees reach their peak production by the 20th year and then begin to decline (2015). However, improving the condition of and the care for
the trees can lead to five to eight times more cacao (Taylor, 2015). This increase in output leads to eco-
efficiency. Replanting is also an opportunity despite having to wait for the cacao tree to mature.

Since maintenance of cacao trees is minimal, some farmers are not concerned with improving output. Many older farmers plan to rely on cacao production for passive income in their retirement (Wegbert, 2015). The farmers have an opportunity to earn more income if they are given the right tools to increase output. Eco-efficiency is concerned with “doing more with using less, thus improving the relative performance on indicators such as decreasing harmful emission/economic output or increasing the value of economic output/natural resource input” (Csutora, 2011). By using sustainable crop production techniques, output increases, and farmers earn more money to improve their standard of living.

In connecting environmental entrepreneurship with economic entrepreneurship, Keijzers (2002) suggests that in creating new technologies, new coalitions should be formed, maybe in the form of a new company, to overcome the obstacles of competitive rivalry. In this particular case, the small company recently created a new joint venture with the largest coffee producer in Haiti to increase scale and move rapidly toward creating more production opportunities. One benefit of this alliance is the entrepreneurs can use the size and brand equity of the larger company to increase market reach and grow market share. Although the smaller company is not organically or fair trade certified, the larger company is. Because of this the smaller company can become certified through the joint venture and use the technologies from the larger company to create such products as organic chocolate.

*Eco-effectiveness*

Although eco-efficiency and eco-effectiveness are needed for ecological sustainability, the focus should be on producing a greater environmental good (Dyllick & Hockerts, 2002). Eco-effectiveness should be the main goal of environmental sustainability to ensure positive environmental impacts through reforestation, soil improvement, cacao tree growth, and chocolate production. Dedicating certain land to organic farming could assist in this movement. The owners want to ensure the land will not only produce, but also create a place where the trees are taken care of in a way that produces the most output without harming future crops. The owners do not want to stretch beyond the environment’s capacity; however, this does not appear to be an issue as the company looks to use this as an opportunity to assist in reforestation efforts in the country.

As advocates for the farmers, the friends hope to improve their chances for success on a global scale. Sustainable cocoa production in Haiti hinges on the following factors: farm gate price, farm size, property ownership, land configuration and rural infrastructures, networking, and animal feeding practices (Wegbert, 2015). Haiti’s natural resources are limited and ownership of property is important for farmers as they are not well motivated to take care of other people’s property if they are only partially benefitting financially from the harvest. If the farmers are not working on other people’s land, then most of the remainder of the farmers own very small plots of land. In addition, threats to the farm include diseased pods, climate change/drought, low producer prices and corruption with farmer co-ops (Wegbert, 2015). For example, domestic animals run free on land and eat tree seedlings, which reduces output. Farm ownership and effective farm management are important for continued success.

**Link to Social Entrepreneurship**

*Socio-efficiency*

One of the world’s largest issues is how to alleviate poverty, and a step in the right direction involves improving the economic conditions of the poor. The Schwab Foundation for Social Entrepreneurship (n.d.) states that social entrepreneurs pursue the eradication of poverty, while maintaining a focus on producing social and ecological value, and while also improving financial value. Social entrepreneurs can create a stable approach for individuals and communities to improve social and economic conditions. In the case of the Haitian farmers, it is not just an economics issue; it is also an environmental issue.

Socio-efficiency is associated with economics. From the Dyllick and Hockerts (2002) sustainability model discussed in Young and Tilley’s 2006 article, socio-efficiency is “the relation between a firm’s value added and its social impact” (2002, p. 134). Dyllick and Hockerts add to the discussion by stating:
“Socially sustainable companies add value to the communities within which they operate by increasing the human capital of individual partners as well as furthering the societal capital of these communities. They manage social capital in such a way that stakeholders can understand its motivations and can broadly agree with the company’s value system” (Dyllick & Hockerts, 2002, p. 134).

One of the pillars of sustainability entrepreneurship is social entrepreneurship, and sustainability is about efficiency and effectiveness. To improve economic conditions, social and environmental issues must be addressed (Dyllick & Hockerts, 2002). The owners must be careful to balance efficiencies without negatively affecting the environment in the long run. Reforestation is helpful, but to stay balanced, the value added must be more than the cost to the environment, economy, and farmers. The owners of the company were most concerned about improving the lives of the Haitian farmers by creating a business that could provide an atmosphere of economic opportunity and hope for the future. They realized it was about the social benefit as well as the economic benefit. It is important that someone serve as the advocate for the farmers with the government and bring attention to their efforts. The government is an important constituent as the company can lobby for improved regulations and policies on behalf of the farmers.

**Socio-effectiveness**

Socio-effectiveness refers to the valuation of a firm’s social performance (Dyllick & Hockerts, 2002). A question to consider is if the products are accessible and if the benefits are for all or for just a few people (2002). The Haitian farmers can make a chocolate product, but the owners need to ensure that the market is aware


function with habit formation; refer to Appendix 2 for details.

**Appendix 4:** The partial derivatives of dividends with respect to explanatory variables

Consider the optimal aggregated dividend as a linear function of underlying variables:

$$ d = a_0 + a_1 k + a_2 c + a_3 l + a_4 q + a_5 z $$

To derive the partial derivative of dividends with respect to each variable, we first construct a 5-vector of the covariance of each explanatory variable with $d$: $Y = Cov(d, x)$. We also construct a variance-covariance matrix of all explanatory variables, $X$, with the $i$th row given by $Cov(x^T, x_i)$, and a 5-vector, $a$, with elements $a_i$ that denote the partial derivatives:

$$ Cov(d, x_i) = Cov(a_0 + a_1 k + a_2 c + a_3 l + a_4 q + a_5 z, x_i) $$

$$ \Rightarrow Cov(d, x_i) = \sum_{j=1}^{5} a_j Cov(x_j, x_i) $$

$$ \Rightarrow Y = Xa $$

$$ \Rightarrow a = X^{-1}Y $$

We calculate the partial derivative of the optimal aggregated dividends with respect to capital input ($k$), consumption ($c$), labor ($l$), equity price ($q$) and technology shock ($z$) for the VM model and the RA model in the case of habit persistence of 0.8:

Model
VM
RA

$\frac{\partial d}{\partial k}$
-0.212
0.002

$\frac{\partial d}{\partial c}$
-1.796
0.144

$\frac{\partial d}{\partial l}$
-9.600
0.102

$\frac{\partial d}{\partial q}$
0.436
0.002

$\frac{\partial d}{\partial z}$
1.132
-0.082

Fig. 1. Sensitivity of aggregate dividends and consumption to the habit motive
Fig. 2. The impulse responses of optimal aggregate dividends ($d$), consumption ($c$), debt ($b$), and investment ($i$) in the case without habit persistence for the VM model ($\xi = 0$)

Fig. 3. The impulse responses of optimal aggregate dividends ($d$), consumption ($c$), debt ($b$), and investment ($i$) in the case with habit persistence for the VM model ($\xi = 0.8$)
Fig. 4. The impulse responses of optimal aggregate dividends ($d$), consumption ($c$), debt ($b$), and investment ($i$) in the case without habit persistence for the RA model ($\xi = 0$).

Fig. 5. The impulse responses of optimal aggregate dividends ($d$), consumption ($c$), debt ($b$), and investment ($i$) in the case with habit persistence for the RA model ($\xi = 0.8$).
Table 1. Calibration values for the models’ parameters

Parameters
Notation
Value

Capital share to output
$\alpha$
0.35

Depreciation ratio
$\eta$
0.019

Subjective time discount factor
$\beta$
0.99

Persistence of the technology shock
$\psi$
0.95

Standard deviation of the technology shock
$\sigma_{\varepsilon}$
0.00712

Recovery rate
$\theta$
0.92

Tax rate
$\tau$
0.06

Time allocated to market activities
$\rho$
0.36

Coefficient of relative risk aversion of the household
$\gamma$
2

Upper bound
$U$
1.225

Lower bound
$L$
0.475

Habit persistence
$\xi$
Given

This table displays a summary of parameter values. Rows 1-7 are taken from Alessandrini (2003). Row 8 is taken from Campbell (1994). Rows 9 - 11 are values commonly used in literature. Habit persistence is allowed to take a range of different values from 0 to 0.8 with an interval of 10%.
Table 2. Mean and relative standard deviation (RSD in %) for the VM model and the US economy

0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8

$\xi$

$d$
0.09
0.09
0.09
0.09
0.09
0.09
0.09
0.09
0.09

$c$
0.91
0.91
0.92
0.92
0.92
0.92
0.93
0.94
1.91

$y$
1.19
1.19
1.19
1.20
1.20
1.20
1.21
1.22
3.06

$l$
0.32
0.32
0.32
0.32
0.32
0.33
0.33
0.33
2.39

$i$
0.26
0.26
0.26
0.26
0.26
0.26
0.26
0.26
9.05

$b$
5.40
5.40
5.41
5.41
5.42
5.43
5.45
5.48
5.54

$w$
27.38
27.36
<td


 by rule shall adopt minimum rating standards for for-profit nursing homes and for-profit assisted living facilities that must be met before a for-profit nursing home or for-profit assisted living facility may obtain insurance coverage through the association. The standards must promote the highest practical level of care for residents of the nursing homes and assisted living facilities.

Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April
Sec. 2203.1021. VOLUNTEER HEALTH CARE PROVIDERS. (a) In this section:

(1) "Charitable organization" has the meaning assigned by Section 84.003, Civil Practice and Remedies Code.

(2) "Volunteer health care provider" has the meaning assigned by Section 84.003, Civil Practice and Remedies Code.

(b) The association shall make available medical liability insurance or appropriate health care liability insurance covering a volunteer health care provider for the legal liability of the person against any loss, damage, or expense incident to a claim arising out of the death or injury of any person as the result of negligence in rendering or the failure to render professional service while acting in the course and scope of the person's duties as a volunteer health care provider as described by Chapter 84, Civil Practice and Remedies Code.

(c) A volunteer health care provider who is serving as a direct service volunteer of a charitable organization is eligible to obtain from the association the liability insurance made available under this section. A volunteer health care provider who obtains coverage under this section is subject to Section 2203.302 and the other provisions of this chapter in the same manner as physicians who are eligible to obtain medical liability insurance from the association.

(d) This section does not affect the liability of a volunteer health care provider who is serving as a direct service volunteer of a charitable organization. Section 84.004(c), Civil Practice and Remedies Code, applies to the volunteer health care provider without regard to whether the volunteer health care provider obtains liability insurance under this section.

Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.060(a), eff. September 1, 2007.
Added by Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.060(a), eff. September 1, 2007.

Sec. 2203.103. ELIGIBILITY OF OTHER HEALTH CARE PRACTITIONERS AND FACILITIES. (a) In this section:
(1) "Health care" includes a medical or health care service, including an examination, treatment, medical diagnosis, or evaluation, and care provided in an inpatient, outpatient, or residential setting.

(2) "Health care facility" means a facility providing health care, other than a facility described by Section 2203.002(4).

(3) "Health care practitioner" means an individual, other than an individual described by Section 2203.002(4), who:

(A) is licensed to provide health care; or

(B) is not licensed to provide health care but provides health care under the direction or supervision of a licensed individual.

(b) After notice and opportunity for hearing, the commissioner may:

(1) determine that appropriate liability insurance coverage written by insurers authorized to engage in business in this state is not reasonably available to a type of health care practitioner or health care facility; and

(2) by order designate that type of health care practitioner or health care facility to be included as a health care provider eligible to receive coverage under this chapter.

(c) A health care practitioner or facility designated under Subsection (b) is entitled to receive insurance coverage under this chapter in accordance with Chapter 1901 in the same manner as other health care providers described by Section 2203.002 and Section 1901.001.

(d) The commissioner's order may indicate whether a health care practitioner or facility designated under Subsection (b) is included under the policyholder's stabilization reserve fund established under Section 2203.301 or 2203.303 or whether a separate policyholder's stabilization reserve fund is created. A separate policyholder's stabilization reserve fund established under this subsection operates in the same manner as a policyholder's stabilization reserve fund created under Section 2203.303.

Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.

Sec. 2203.104. APPLICATION FOR COVERAGE. (a) A health care

Statute text rendered on: 10/6/2023
provider or physician included in a category eligible for insurance coverage by the association is entitled to apply to the association for the coverage. An agent authorized under Chapter 4051 may apply on behalf of an applicant.

(b) The association shall issue a medical liability insurance policy to an applicant:

(1) if the association determines that:
   (A) the applicant meets the underwriting standards of the association prescribed by the plan of operation; and
   (B) there is no unpaid and uncontested premium, policyholder's stabilization reserve fund charge, or assessment due from the applicant for prior insurance, as shown by the insured's failure to pay or to object in writing to the charges on or before the 30th day after the date of the billing; and

(2) on receipt of the premium and the policyholder's stabilization reserve fund charge, or the portion of the premium and charge prescribed by the plan of operation.

Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.

SUBCHAPTER D. ASSOCIATION COVERAGE

Sec. 2203.151. POWERS RELATING TO MEDICAL LIABILITY INSURANCE COVERAGE. (a) Under this chapter and the plan of operation, the association, on behalf of the association members, may:

(1) issue, or cause to be issued, medical liability insurance policies to applicants, including primary, excess, and incidental coverages, subject to the limits specified in the plan of operation and Section 2203.152;

(2) underwrite medical liability insurance and adjust and pay losses related to that insurance, or appoint servicing insurers to perform those functions;

(3) either or both accept and refuse the assumption of reinsurance from association members; and

(4) cede and purchase reinsurance.

(b) The association may provide general liability insurance coverage to be issued in connection with medical liability insurance issued by the association.

Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April
Sec. 2203.152. POLICY LIMITS. The association may not issue one or more policies insuring an individual or organization for an amount exceeding $1 million for each occurrence and $3 million in the aggregate for a year.

Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.

Sec. 2203.153. FOLLOWING FORM EXCESS LIABILITY COVERAGE. Excess liability insurance coverage written for a physician or health care provider by the association under this chapter must be written as following form excess liability insurance to the physician's or provider's primary insurance coverage.

Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.

Sec. 2203.154. PUNITIVE DAMAGES EXCLUDED. The association may not issue or renew a medical liability insurance policy for a physician or health care provider under this chapter that includes coverage for punitive damages assessed against the physician or health care provider.

Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.

Sec. 2203.155. INSTALLMENT PLAN. The association may offer an installment payment plan for insurance coverage obtained through the association.

Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 2, eff. April 1, 2007.

Sec. 2203.156. TERM OF POLICY; NOTICE OF CERTAIN CHANGES. (a)
A policy issued by the association must be for a term of one year or less, as determined by the association.

(b) Section 1901.253 does not apply to a medical liability insurance policy issued by the association for a term of less than one year.

(c) The association shall ensure that appropriate written notice is provided to the insured for a policy described by Subsection (b) if the association intends


is not obligated to, contact any organization or institution as a reference.

E. Conditional proposals will not be considered.
F. Please note that we will only accept electronic bid submissions in the form of a USB or CD format via mail or submission through email. **Electronic submission is the official submission of the University and will be treated as such.**

G. **Post Award:** Following the notification of award, Vendor(s) may receive a contract along with a request to review terms, deliverables, costs and the University’s expectations in general. You will be able to address any post award questions or concerns at this time. *If you do not receive a contract within seven days of award, please contact contracts@rowan.edu.*
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NOTE: THE UNIVERSITY IS NOW ACCEPTING ELECTRONIC BID SUBMISSIONS. ELECTRONIC SUBMISSIONS WILL BE CONSIDERED AS ORIGINALS AND WILL BE UTILIZED AS THE OFFICIAL DOCUMENTATION FOR EVALUATION AND CONSIDERATION BY THE UNIVERSITY. EVERY REASONABLE EFFORT SHOULD BE MADE SO THEY ARE COHERENT AND EASILY VIEWABLE. ALL REQUIRED DOCUMENTS PERTAINING TO THIS OFFERING MUST BE INCLUDED IN THE ELECTRONIC SUBMISSION.

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Respondents are cautioned that reliance on the US Postal Service, other mail delivery, and/or courier service for timely delivery of submissions is at their own risk. Mailing submissions should allow for normal mail delivery time and internal circulation within the University to ensure the timely receipt of their submissions by the Purchasing Office. The University will not be responsible for submissions which do not meet the RFP deadline.
Evaluation and Selection Criteria

- An initial screening of all submissions will be conducted to determine overall responsiveness. *Submissions determined to be incomplete or non-responsive may be disqualified.*
- Selection of the awarded vendor(s) shall be based solely on the Review Committee’s evaluation of the submissions and the criteria set forth above.
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Requests for Clarification by the University: The University may request that any vendor clarify or supplement any information contained in any Proposal. Vendors are required to provide a written response within two (2) business days of receipt of any request for clarification by the University.

The award of this RFP will be based upon a review and analysis of all proposals to determine which proposal(s) best meet the University’s needs. The contract award will be based on a points-earned matrix derived from the evaluation criteria listed below.

Vendors will be awarded points in the following categories:

Scoring Criteria
Weight

Questionnaire

• Functionality
0-30

• Workflow/Routing/Administration

• Reporting

• Account Management

• Implementation

• Pricing

Pricing Sheet

• Expense Management or
0-30

• Full Service Agent / Booking Tool

References
0-20

Qualifications & Experience
0-20

Note: Vendors submitting for Expense Management *only* will not be scored against vendors submitting against Travel Agent Services and Booking Tools.

Presentations: Following the initial evaluation, qualifying vendors may be asked to provide a presentation to the University’s scoring committee. More information will be available upon selection.
## Pricing Sheet

*If you cannot provide some of the services listed, please respond as not applicable.*

Description
Fees

Expense Management:

Lump Sum Fee

Additional Cost per Transaction

Full Service Agent Assist Transactions:

Domestic airline ticket

Domestic airline ticket refunded

Domestic airline ticket exchanged

International airline ticket

International airline ticket refunded

International airline ticket exchanged

Airline ticket that is part of a group-domestic

Group airline ticket refunded-domestic

Group airline ticket exchanged-domestic

Airline ticket that is part of a group-international

Group airline ticket refunded-international

Group airline ticket exchanged-international

Consolidator airline ticket-international

After-hours emergency phone call

Car reservation only

Hotel reservation only

Rail ticket - domestic and international

Car service reservation

Online Booking Tool Transactions:

Domestic airline ticket

Domestic airline ticket refunded

Domestic airline ticket exchanged

International airline ticket

International airline ticket refunded

International airline ticket exchanged

Change or cancellation with travel agent to an airline ticket, hotel, and/or car reservation purchased through the OBT

Assistance with purchase of airline ticket, hotel reservation, car reservation begun in the OBT, but completed with a travel agent

Car reservation only

Hotel reservation only

Applying a ticket credit to an airline reservation

Miscellaneous Services:

Miscellaneous Services: Auxiliary reservation tool (Booking Builder, etc.)

Customized reports not listed in scope of work (per hour fee)

Call to the OBT Help Desk

Reporting tool

Non-standard reports as requested

The proposer states that he/she has carefully examined the specifications of having carefully examined the proposal documents and being familiar with the requirements therein, hereby submits their proposal to provide such services meeting the requirements outlined in this RFP.

Name

Title


. The second set imposes only the restrictions used for the shocks of interest, i.e., the stock market shock and the monetary policy shock. Finally, R3 represents the full set of restrictions from Bjørnland-Leitemo except for the long-run restriction. Thus, imposing only those restrictions does not fully identify the shocks of interest. All these sets of restrictions are either under-identifying or just-identifying.
in a conventional framework. Hence, testing them requires additional identifying restrictions that we get from the changes in volatility in the variables.

4.2 The Volatility Model

We estimate the standard VAR and three (conditional) heteroskedastic VARs with different assumptions on the evolution of volatility. The VAR order is chosen to be three as suggested by the Akaike information criterion (AIC) in a conventional model that does not allow for heteroskedasticity. Bjørnland and Leitemo (2009) use four lags based on lag reduction tests for their shorter data range.

In practice, if changes in volatility are suspected, it is useful to think about the most suitable volatility model for a particular application. For the system of interest here, volatility changes are likely, for example, because a financial variable such as $\Delta sp_t$ is included. It is not easy to link the volatility changes to specific exogenous events and, hence, to specific parts of the sample period. Therefore a model that assigns the volatility states endogenously makes more sense than a model with exogenous volatility changes. Given the stock returns in the system one may think of a GARCH model. However, also the MS model can capture similar conditional heteroskedastic structures. Therefore it is a priori equally suitable if enough volatility states are allowed for. If the volatility change is sufficiently smooth, also the ST model is a possibility. It is used, in fact, by Lütkepohl and Netšunajev (2014b) for the presently considered system and we draw on the results from that study for the ST-SVAR model in the following. In deciding on the volatility model it may be useful to inspect the residuals from a standard VAR analysis. They are presented in Figure 5 and show that there are indeed considerable changes in volatility throughout the sample and capturing them with a model with exogenously assigned volatility regimes may not be easy. Therefore we consider all three models with endogenous assignment of volatility states in the following.

Clearly, a visual inspection of the residuals is not enough for making a good decision on the most suitable volatility model. Such visual tools have to be complemented with statistical criteria such as information criteria. Therefore we show values of the Akaike information criterion and the Schwarz criterion (SC) for different models in Table 1. Notice that in all the volatility models a state-invariant initial effects matrix $B$ is assumed and the VAR order is 3 for all models. The GARCH model is estimated with 5 univariate GARCH(1,1) components. It turns out that all (conditionally) heteroskedastic SVARs perform much better than the standard VAR according to AIC and SC. In fact, both criteria are minimized for the MS-SVAR
model with 3 volatility states. We did not try to estimate MS models with more volatility states because for a 5-dimensional model that would have been a major computational challenge and the estimates cannot be expected to be reliable.

The ultimate objective is, of course, to capture the volatility well with our models. Therefore it is instructive to look at the standardized residuals

\[ \hat{u}_{kt}/\hat{\sigma}_{kk,t} \]

obtained for the different models. Here \( \hat{\sigma}_{kk,t}^2 \) is the \( k \)th diagonal element of the estimated residual covariance matrix or conditional covariance matrix for period \( t \), depending on the model considered. These quantities are plotted in Figure 2 for the models with time-varying volatility. Notice that these are not the structural residuals obtained from these models but reduced-form residuals. The graphs are just meant to give a visual impression of possible remaining volatility changes or the ability of the different models to actually capture the volatility changes in the reduced-form residuals.

Comparing to the residuals in Figure 5, all models appear to improve on a model without allowance for volatility changes. However, the volatility models differ in their ability to capture the volatility in the data well. The visual impression is that the ST-SVAR model leaves quite some unexplained volatility in the residuals. Also, the MS(2) model appears to be inferior to the MS(3) model. For example, it leaves more heterogeneity in the commodity price residual series than the MS(3) model. Moreover, the GARCH residuals are somewhat disappointing and clearly inferior to the MS(3) residuals. Note, for example, large outliers in the \( u_t^x \) series that are not captured by the GARCH model. Also some of the other residual series leave room for improvement relative to the corresponding quantities from the MS(3) model. For example, the volatility changes in the residuals of the output equation, \( u_t^q \), are not well captured by the GARCH model. Thus, it is no accident that the AIC and SC criteria prefer the MS(3) model as well.

These results are perhaps better understood when looking at the transition function of the ST-SVAR model and the smoothed state probabilities of the MS(2)-SVAR and MS(3)-SVAR models in Figure 3. The MS models indicate that the change in volatility is more complex than what is captured by the ST-SVAR model. There does not appear to be a smooth transition from one volatility regime to another if the data are allowed to assign different regimes in a different way as in the MS models. Also allowing for a third state leads to a quite different separation of the sample period than a two state model. This explains why the MS(3) model is preferred over the ST and the MS(2) models. Despite the fact that we favor the MS(3)-SVAR for the
present dataset, we continue looking also at the other models for illustrative purposes.

4.3 Identification Analysis

The first question we have to address is the identification issue. For all three models statistical identification conditions are linked to the changes in volatility. For the ST and MS models they are linked to the relative variances. Estimates of these quantities are shown in Table 2. For the ST and MS(2) models the relative variances in the second state are all less than one. Hence, the ST model moves the volatility from a high volatility state to a lower volatility state. This corresponds well to the fact that the MS(2) model assigns the second, hence, lower volatility state to the latter part of the sample (see Figure 3). In contrast, the first state dominates the second half of the sample in the MS(3) model. Therefore it is plausible that the relative variances of the second and third states assigned by the MS(3) model are all larger than one, that is, the variances are larger than in the first state.

Recall that we have a fully identified ST-SVAR model if all the relative variances are distinct. Taking into account also the standard errors in Table 2, the estimates suggest that at least the first four relative variances are distinct. Formal tests that they are all distinct are presented in Table 3. Note that we have to test $K(K - 1)/2 = 10$ pairs for a system of dimension $K = 5$. For the smooth transition model, the null hypotheses of pairwise equality is rejected at a 10% significance level for all pairs but the last. Thus, we conclude that we have some statistically identified shocks but perhaps not a fully identified ST-SVAR model. In particular, the first three shocks are identified via heteroskedasticity. For a fully identified set of structural shocks we need additional restrictions such as those or some of those used by Bjørnland and Leitemo (2009).

The standard errors of the estimated relative variances for the MS models in Table 2 tend to be larger than for the ST model and also the estimated relative variances are not clearly distinct in a number of cases. Therefore it is not surprising that the corresponding tests for full identification shown in Tables 3 and 4 do not reject some of the relevant hypotheses. However, they do indicate that the volatility models contain at least some additional identifying information because some of the relevant hypotheses are clearly rejected with $p$-values much smaller than 5% or even 1%. Interestingly, in the MS(2)-SVAR model the tests indicate that the first relative variance is clearly distinct from the others and, hence, the first shock is identified while in the MS(3)-SVAR model the last shock is identified. Note, however, that we are using Wald tests for checking the identification restrictions and these
tests may not be very reliable (see Lütkepohl and Netšumajev (2014a)). Thus, there may be more identified shocks. Our current statistical procedures do not provide much evidence for them, however.

The identification issue in the context of the SVAR-GARCH model is a somewhat different one. We have to check the number of univariate GARCH components underlying the GARCH structure. Ignoring the problem and estimating a model with five GARCH components as we have done in the foregoing, some of the GARCH parameters may actually not be identified. Thus, the analysis of the SVAR-GARCH model should ideally start with a thorough investigation of the number of underlying univariate GARCH components. This is of particular importance in analyses such as the present one where it is not clear whether the GARCH structure captures changes in volatility well enough in all variables. Notably variables such as industrial production are not necessarily well modelled by


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 of revenues generated locally may alternatively be determined as the average share of local revenues determined across all those companies NH from country H in the data sample that directly report their local revenues, as was described above.

The portion of revenues generated in the “rest of the world” V is calculated as:

$$S_{L,V} = S_{i,W} - S_{L,H}.$$

Finally, the remaining country revenues may be determined as follows:

$$S_{L,V} = \frac{\text{EXP}_{H, V}}{\sum_{V} \text{EXP}_{H, V}} S_{i,V}$$

With the corresponding revenue shares being:

$$x_{L,V} = \frac{S_{L,V}}{TR_i}.$$
17.3. STOXX EMERGING MARKETS EXPOSED INDICES

17.3.1. OVERVIEW
The STOXX Emerging Markets Exposed (EM Exposed) indices are a subset of the STOXX Global 1800. Constituents are selected and weighted based on their exposure towards emerging markets.

Universe:
The index universe is based on the STOXX Global 1800 and the following regions as defined in section 4.3 are calculated: Global (developed) and Europe.

Weighting scheme: The index is weighted according to free-float market capitalization.

Index types and currencies: EUR, USD as Price, Net, and Gross Return.

17.3.2. INDEX REVIEW
Selection list
» All companies within the universe are screened for their exposure to the emerging markets (as defined in chapter 4.3)
» The exposure is calculated using the same formulas as described in chapter 17.1.4
» Red Chips as well as Chinese companies listed in Hong Kong, but operating in Mainland China are excluded from the universe

Composition list
» The composition is determined based on the exposure to emerging markets
» All companies on the selection list with an exposure towards emerging markets higher than 33% are selected

Weighting Scheme:
The weight of each component is calculated using the company’s free-float market capitalization and the exposure to emerging markets as following:

$$\text{Weight}_i = \frac{\text{EM Exposure}_i \times \text{Free Float Market Capitalization}_i}{\sum_{i=1}^{n} (\text{EM Exposure}_i \times \text{Free Float Market Capitalization}_i)}$$

Review frequency: The index is reviewed annually in September.

Weighting cap factors: The components are capped based on the exposure factor.

17.3.3. ONGOING MAINTENANCE
Replacements: No replacements.
Fast Exit: Not applicable.
Fast entry: Not applicable.
Spin-Offs: Spin-Offs are not added permanently.
18. STOXX THEMATIC INDICES

18.1. STOXX GLOBAL ARTIFICIAL INTELLIGENCE INDEX

18.1.1. OVERVIEW
Derived from the STOXX® Developed & Emerging Markets Total Market Index, the STOXX® Global Artificial Intelligence Index is comprised of companies that are positively exposed to artificial intelligence (AI). AI is the science of creating computing programs that mimic – as closely as possible – the patterns of learning, growth and mastery exhibited in human intelligence. As AI develops, these companies are positioned to take advantage of the long-term trend towards automation, which may have a substantial impact on their revenue in the future. Revere (RBICS) data allow a detailed breakdown of the revenue sources of the eligible companies, helping this index to select companies with substantial positive AI exposure.

**Universe:** The index universe is defined as all stocks from the STOXX Developed and Emerging Total Market index.

**Weighting scheme:** The indices are weighted proportionally to the free-float market cap of selected stocks multiplied by the aggregate revenue exposure of each stock to the Sectors listed below.

**Base values and dates:** 100 on 18 June 2012.

**Index types and currencies:** Price, net return, gross return in EUR and USD.

18.1.2. INDEX REVIEW

For each STOXX Global Artificial Intelligence Index the companies in the index universe are screened for all of the following criteria (applied in the order in which they are listed):

- **Minimum liquidity:** 3-month median daily trading value (MDTV) greater than one million EUR
- **Revenues:** more than 50% of revenues over the past year generated within the aggregate of the RBICS sectors associated with AI (see table below)
- **Multiple share lines:** in case a company is present with multiple listings in an index, only the most liquid share line will be kept

**List of RBICS sectors associated with AI for the purposes of constituent selection:**
- Programmable Logic Device Semiconductors (551020351510)
- Video Multimedia Semiconductors (551020401525)
- Other Programmable Logic and ASIC Semiconductors (551020351010)
- Microprocessor (MPU) Semiconductors (551020302510)
- Imaging Laboratories (351515151510)
- Communication and Collaboration Content Sites (552010351015)
- Web Search Sites and Software (552010351520)
- Web Navigation Sites and Software (552010351510)
- Business Intelligence Software (552015151510)
- Machine Vision and Quality Control Manufacturing (401020202010)
- Data Storage Drives and Peripherals (551520201010)
- Data Storage Media (551520201510)
- Multi-Type Data Storage Hardware Makers (551520202510)
- Colocation and Data Center Services (552010201010)
Review frequency: The index composition is reviewed annually in June. The review cut-off date is the last trading day of the preceding May. The index Weighting Cap Factors are recalculated quarterly in March, June, September and December.

Weighting cap factors:
Index weighting cap factors are recalculated quarterly in March, June, September and December. They are published on the second Friday of each of those months and based on the stocks’ prices of the preceding Thursday.

Initial weight calculation:

\[ w_i = \frac{ae_i \cdot ff_i}{\sum_j ae_j \cdot ff_j} \]

\( ae_i \) is the sum of all exposures of company \( i \) to the sectors that are included in the index;
\( ff_i \) is the free float market capitalization of company \( i \)

Capped weight calculation
The capped weights (\( cw_i \)) are derived from the initial weights via an iterative process that seeks to maintain the following conditions:
- The sum of all weights above 4.5% should not exceed 35%
- No single weight should exceed 8%

To that end, any excess weight is redistributed from a company to the rest of the components of the index that are not already subject to capping under the above rules, proportionally to their current weight in the index.

In the event that 19 or fewer securities are included in the index, the capped weights for all securities will be equal to 1/n where n is the number of securities included in the index.

Weight factor calculation

\[ wcf_i = \frac{cw_i}{p_i} \times 10,000,000,000 \]

rounded to the closest integer and where:
\( cw_i \) is the capped weight of company \( i \) as described above
\( p_i \) = close price in EUR of company \( i \) on the Thursday preceding the second Friday of the review month
\( wcf_i \) = weighting cap factor of company \( i \)

18.1.3. ONGOING MAINTENANCE
**STOXX THEMATIC INDICES**

**Replacements**: Stocks deleted from the STOXX Developed & Emerging TMI are not replaced.

**Fast exit**: Not applicable.

**Fast entry**: Not applicable.

**Spin-offs**: Spin-offs are not added permanently.

**Mergers and takeovers**: The original stock is replaced by the surviving stock.
18.2. STOXX GLOBAL DIGITAL SECURITY INDEX

18.2.1. OVERVIEW

The STOXX Global Digital Security Index is comprised of companies from selected countries exposed to a defined theme: Digital Security. This includes firms which are involved in the transmission, safeguarding and/or handling of sensitive data and/or access control of secure locations (e.g. data centers). These companies, or components of their business lines, are positioned to benefit from long-term structural trends driving economic change and which, in the future, may have a substantial impact on their performance.

**Universe**: The index universe is defined as all stocks from the STOXX Global Total Market index.

**Base values and dates**: 1000 on 18 June 2012

For a complete list, please consult the data vendor code sheet on the website. Customized solutions can be provided upon request.

**Index types and currencies**: Price, net return, gross return in EUR and USD.

**Dissemination calendar**: STOXX Europe calendar.

18.2.2. INDEX REVIEW

In order to be included in the ST


2000 Ridge Road, Middletown, CA 95461, when requested by the Agency. Supplier shall be responsible at its sole expense for delivering the Goods to Agency's Project Site and title shall not pass until the Agency accepts delivery at this Site. In the event of a conflict or inconsistency between the terms of this Agreement and Exhibit A, this Agreement shall prevail.

Section 2. TERM OF AGREEMENT. This Agreement shall begin upon Effective Date and shall end on the earlier of five (5) years after the Effective Date or when Supplier has provided to Agency the Goods described in Exhibit A.

Section 3. REQUEST FOR GOODS. At such time that Agency determines to have Supplier provide Goods under this Agreement, Agency shall issue a Purchase Order. The Purchase Order shall identify the specific Goods to be provided ("Requested Goods"), may include a not-to-exceed cap or monetary cap on the Requested Goods and all related expenditures authorized by that Purchase Order, and shall include a time by which the Requested Goods shall be delivered.

Section 4. COMPENSATION. Agency hereby agrees to pay Supplier for the Goods an amount not to exceed two hundred fifty thousand dollars ($250,000) as total compensation under this Agreement, which includes all shipping, insurance, delivery charges, and any other fees, costs or charges. Any taxes applicable to Agency for the purchase of the Goods shall be to the account of Agency and invoiced as a separate line item on the invoice.

4.1 Invoices. Supplier shall have ninety (90) days after the delivery of Goods to invoice Agency for all amounts due and outstanding under this Agreement. Supplier shall include the number of the Purchase Order which authorized the Goods for which Supplier is seeking payment. In the event Supplier fails to invoice Agency for all amounts due within such ninety (90) day period, Supplier waives its right to collect payment from Agency for such amounts. All invoices shall be submitted to:

Northern California Power Agency
651 Commerce Drive
Roseville, California 95678
Attn: Accounts Payable

4.2 Payment. Agency shall pay all invoices within thirty (30) days of the receipt of any invoice for Goods satisfactorily received.

4.3 Timing for Submittal of Final Invoice. Supplier shall have ninety (90) days after delivery of the Requested Goods to submit its final invoice for the Requested Goods. In the event Supplier fails to submit an invoice to Agency for any amounts due within the ninety (90) day period, Supplier is deemed to have waived its right to collect its final payment for the Requested Goods from Agency.

4.4 Price Changes. Supplier’s pricing is subject to change over the term of the Agreement. Any change in pricing will be based on the normal fluctuation of costs of the Goods, transportation or taxes in the market. Supplier shall provide Agency with thirty (30) days prior written notice of any pricing changes.

Section 5. INSURANCE REQUIREMENTS. Before beginning any work under this Agreement, Supplier, at its own cost and expense, shall procure the types and amounts of insurance listed below for the period covered by the Agreement.

5.1 Workers’ Compensation. If Supplier employs any person, Supplier shall maintain Statutory Workers’ Compensation Insurance and Employer’s Liability Insurance for any and all persons employed directly or indirectly by Supplier with limits of not less than one million dollars ($1,000,000.00) per accident.

5.2 Automobile Liability. Supplier shall maintain automobile liability insurance for the term of this Agreement covering any loss or liability, including the cost of defense of any action, arising from the operation, maintenance or use of any vehicle, whether or not owned by the Supplier, on or off Agency premises. The policy shall provide a minimum limit of $1,000,000 per each accident, with $2,000,000 aggregate. This insurance shall provide contractual liability covering all motor vehicles and mobile equipment utilized in the transport of the Goods to the Agency’s Project Site.

5.3 Commercial General Liability (CGL). Supplier shall maintain commercial general liability coverage covering Goods, including product liability, covering any loss or liability, including the cost of defense of any action, for bodily injury, death, personal injury and broad form property damage which may arise out of the negligence of Supplier in regard to this Agreement with not less than $1,000,000/$2,000,000 aggregate for bodily injury and property damage, on an occurrence basis. No endorsement shall be attached limiting the coverage.

5.4 General Liability/Umbrella Insurance. The coverage amounts set forth above may be met by a combination of underlying and umbrella policies as long as in combination the limits equal or exceed those stated.

5.5 All Policies Requirements.
5.5.1 **Verification of Coverage.** Prior to beginning any work under this Agreement, Supplier shall, at the sole option of the Agency, provide Agency with (1) a Certificate of Insurance that demonstrates compliance with all applicable insurance provisions contained herein and (2) policy endorsements to the automobile liability policy and the CGL policy adding the Northern California Power Agency as an Additional Insured and declaring such insurance primary in regard to work performed pursuant to this Agreement and that Agency's insurance is excess and non-contributing.

5.5.2 **Notice of Reduction in or Cancellation of Coverage.** Supplier agrees to provide at least thirty (30) days prior written notice of any cancellation or reduction in scope or amount of the insurance required under this Agreement.

5.5.3 **Self-Insured Retention.** Supplier shall declare the amount of the self-insured retention to the Agency; the amount shall be not more than $100,000.

Section 6. **WARRANTY.** Supplier warrants that all Goods are free from defects in design and workmanship; comply with applicable federal, state and local laws and regulations; are new, of good quality and workmanship, and free from defects; are suitably safe and sufficient for the purpose for which they are normally used; and are not subject to any liens or encumbrances. Supplier shall provide all Goods in accordance with all applicable engineering, construction and other codes and standards, in accordance with prudent electrical utility standards, and in accordance with the terms of this Agreement applicable to such Goods, all with the degree of quality and workmanship expected from purveyors engaged in the practice of providing materials and supplies of a similar nature. Moreover, if, during the term of this Agreement (or during the ninety (90) day period following the term hereof, unless manufacturer's warranty is for greater than ninety (90) days, in which case manufacturer's warranty shall be applied), the Goods provided by Supplier under this Agreement fail due to defects in material and/or workmanship or other breach of this Agreement, Supplier shall, upon any reasonable written notice from Agency, replace or repair the same to Agency's satisfaction. **SUPPLIER MAKES NO OTHER WARRANTY, EXPRESS OR IMPLIED.**

Section 7. **INDEMNIFICATION AND SUPPLIER'S RESPONSIBILITIES.**

7.1 **Effect of Insurance.** Agency's acceptance of insurance certificates and endorsements required under this Agreement does not relieve Supplier from liability under this indemnification and hold harmless clause. This indemnification and hold harmless clause shall apply to any damages or claims for damages whether or not such insurance policies shall have been determined to apply. By execution of this Agreement, Supplier acknowledges and agrees to the provisions of this section and that it is a material element of consideration.

7.2 **Scope.** Supplier shall indemnify, defend with counsel reasonably acceptable to the Agency, and hold harmless the Agency, and its officials, commissioners, officers, employees, agents and volunteers from and against all losses, liabilities, claims, demands, suits, actions, damages, expenses, penalties, fines, costs (including without limitation costs and fees of litigation), judgments and causes of action for bodily injury or real property damage arising out of or in connection with any negligent acts or omissions by
Supplier, its officers, officials, agents, and employees, except as caused by the negligence of Agency. Notwithstanding, should this Agreement be construed as a construction agreement under Civil Code section 2783, then the exception referenced above shall also be for the active negligence of Agency.

7.3 **Transfer of Title.** Supplier shall be deemed to be in exclusive possession and control of the Goods and shall be responsible for any damages or injury caused thereby, including without limitation any spills, leaks, discharges or releases of any Goods, until Agency accepts delivery at its Site. For the purposes of this Agreement, such acceptance shall occur after Supplier or its agents complete transfer of the Goods into appropriate containers, machinery, storage tanks or other storage apparatus identified by NCPA. In the event a spill, leak, discharge or release caused by Supplier's negligence requires notification to a federal, state or local regulatory agency, Supplier shall be responsible for all such notifications. Should Supplier be required to remedy or remove Goods as a result of a leak, spill, release or discharge of Goods due to Supplier's negligence into the environment at Agency's Site or elsewhere, Supplier agrees to remediate, remove or cleanup Agency's Site to a level sufficient to receive a "No Further Action Required" or "Closure Letter" from the appropriate regulatory authority.

7.4 **Limitation of Liability.** Neither Supplier nor Agency is liable for special, incidental or consequential damages. Except to the extent that Supplier's negligence or willful misconduct results in a breach of its obligations under Section 7.3 of this Agreement, Supplier's liability is exclusively limited to the greater of the purchase price of the Goods that are the subject of Agency's claim or the limits of the insurance coverage carried by Supplier in accordance with Section 5 of this Agreement.

**Section 8. MISCELLANEOUS PROVISIONS.**