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<br />85 SECTION 6: ATTACHMENTS | 2014_0122
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<br />of the agency entering into the Contract and the head of the agency has certified that the Contract Vendor has
<br />satisfactorily fulfilled the terms of the Contract.
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<br />18. SUBCONTRACTOR PAYMENT (When Applicable). In accordance with Minn. Stat. § 16A.1245, the
<br />Contract Vendor shall, within 10 days of receipt of payment from the State, pay all subcontractors and
<br />suppliers having an interest in the Contract their share of the payment for undisputed services provided by the
<br />subcontractors or suppliers. The Contract Vendor is required to pay interest of 1-1/2 percent per month or any
<br />part of a month to the subcontractor on any undisputed amount not paid on time to the subcontractor. The
<br />minimum monthly interest penalty payment for an unpaid, undisputed balance of $100 or more will be $10. For
<br />an unpaid balance of less than $100, the amount will be the actual penalty due. A subcontractor that takes civil
<br />action against the Contract Vendor to collect interest penalties and prevails will be entitled to its costs and
<br />disbursements, including attorney’s fees that were incurred in bringing the action.
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<br />The Contract Vendor agrees to take all steps necessary to comply with said statute. A consultant is a
<br />subcontractor under the Contract. In the event the Contract Vendor fails to make timely payments to a
<br />subcontractor or supplier, the State may, at its sole option and discretion, pay a subcontractor or supplier any
<br />amounts due from the Contract Vendor and deduct said payment from any remaining amounts due the Contract
<br />Vendor. Before any such payment is made to a subcontractor or supplier, the State shall provide the Contract
<br />Vendor written notice that payment will be made directly to a subcontractor or supplier for undisputed services. If
<br />there are no remaining outstanding payments to the Contract Vendor, the State shall have no obligation to pay or
<br />to see to the payment of money to a subcontractor except as may otherwise be required by law.
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<br />19. SUPPLY CHAIN SECURITY. The Contract Vendor must ensure that the Contract Vendor and any
<br />subcontractors or third parties involved in assembling, manufacturing, packaging, distributing, handling,
<br />warehousing, transporting or shipping State of Minnesota goods, including goods intended to be but not yet
<br />delivered to the State of Minnesota, meet all applicable security standards and all applicable local, state, federal,
<br />and international laws, rules and regulations (hereinafter “supply chain security”).
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<br />Contract Vendor must maintain certification in an official supply chain security program (ISO 28000, Customs-
<br />Trade Partnership Against Terrorism (C-TPAT), Authorized Economic Operator (AEO), or other program accepted
<br />in writing by the State of Minnesota, Office of Enterprise Technology (OET d/b/a MN.IT Services or MN.IT and the
<br />State of Minnesota, Department of Administration’s Materials Management Division (MMD)) and comply with the
<br />program’s security standards for all orders sourced from the Contract/Agreement. To demonstrate certification,
<br />Contract Vendor must provide to MMD and OET within one month following the effective date of this
<br />Contract/Agreement or amendment adding this Section, whichever is later, a letter verifying its certification status
<br />in an official supply chain security program and, if available, supporting documentation of its certification.
<br />Contract Vendor must immediately notify MMD and OET of any change to its certification status.
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<br />Alternatively, if Contract Vendor is not certified or loses certification, Contract Vendor must complete an OET
<br />security form to confirm that it complies with supply chain security. The form will require supporting
<br />documentation of any responses and must be completed to OET’s satisfaction.
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<br />Notification of Supply Chain Security Breach. Contract Vendor and its subcontractors must immediately notify
<br />MMD, OET, and the Purchasing Entity, if different from OET, of any breach of supply chain security involving
<br />State of Minnesota goods, including goods intended to be but not yet delivered to the State of Minnesota. Breach
<br />of supply chain security includes, but is not limited to, cargo theft, tampering, unauthorized access, or other
<br />activities that involve suspicious actions or circumstances. Goods received with viruses, malware or similar
<br />security deficiencies constitute breach of supply chain security.
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<br />Return/Rejection of Goods. If a breach of supply chain security has occurred or the State of Minnesota in good faith
<br />suspects a breach may have occurred, including evidence that packaging or goods were tampered with or damaged,
<br />the State may reject delivery of those goods and/or return any goods already delivered. Breach of supply chain
<br />security has the meaning described in the preceding Subsection “Notification of Supply Chain Security Breach.”
<br />Rejection of delivery or return of goods shall be solely at the expense and responsibility of the Contract Vendor.
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<br />The State of Minnesota may instruct Contract Vendor, at Contract Vendor’s expense, to sanitize or destroy
<br />returned goods and, upon completing sanitization or destruction, Contract Vendor must provide a Certificate
<br />of Data Destruction that meets the requirements of the then current version of NIST Special Publication 800-
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