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2.13 Terms and Conditions <br />All invoices to the Santa Ana Police Department will be N-45 DOI (payment due forty-five (45) days from <br />date of invoice). <br />Payment of the deposit will be necessary prior to procurement of equipment as established in the Con act <br />and will not be N-45 DOI due to the serious shortage of allotted time to complete the project. <br />Linear is not offering a pre -payment or prompt payment discount option. <br />The prices and amounts shown on the PO will be the maximum billable amount, including shipping. <br />Prices may be lower when the solution is delivered and Santa Ana Police Department will be billed <br />accordingly or given a credit toward future purchases, depending on the customer's preference. <br />Product will be shipped F.O.B. Destination. <br />Linear Systems is a Certified Small Business with the Department of General Services Ref #0020657. <br />This requires all customers and agencies to be in compliance with prompt payment terms. <br />Past due invoices from the date of invoice can be charged .25% interest per day as per Department of <br />General Services Prompt Payment Act. <br />This proposal shall be valid for one hundred eighty (180) days after submission on June 6, 2005. <br />2.13 Bid/Performance Bond <br />Since this is a simple purchase and installation Contract, not a construction project, it is requested that Bid <br />and/or Performance Bond requirement(s) be dropped from the Contract. In order to remain compliant with <br />the Terms and Conditions stated in this RFP, Linear Systems has included an amendment to the Cost <br />Proposal that includes the cost of the system if the requirement for a Bid Bond and/or Performance Bond is <br />enforced by the City of Santa Ana. <br />See: 2.15.1 Bid Bond and 2.15.2 Performance Bond <br />2.13 Termination Clause <br />Since this agreement is to provide computer hardware, software, and services to the City of Santa Ana and <br />since both Linear Systems and the City of Santa Ana will commit significant investments of both time and <br />money, it is highly desirable that nothing should cause termination of the said agreement and/or Contract. <br />2.13.1 Declaration of Capability: <br />2.13.1 Statement of Proiect Understanding <br />Over the last several months, Linear Systems has been working with Santa Ana Police Department on <br />general specifications and requirements for a digital imaging project. Linear has prepared the following <br />documents for internal use; Needs Analysis, Cost Justification Analysis, Two Year Plan, Site Survey, <br />Utilization Analysis, Workflow Analysis, and Backup Contingency Plan, for Santa Ana Police Department, <br />Linear Systems has a very precise understanding of the current and future needs and requirements of the <br />Santa Ana Police Department and has the capability to fulfill those requirements and exceed the <br />expectations of the Department. Additionally, Linear Systems has a proven record of providing solutions <br />to other agencies with similar requirements. <br />Linear Systems Confidential Page #4 of 66 <br />Santa Ana PD P Np O60405.doc <br />