D2. SCOPE OF WORK
D2.1 The Work to be done under the Contract shall consist of the supply and delivery of liquid ferric chloride for the period from January 1, 2023 until December 31, 2023, with the option of four (4) mutually agreed upon one (1) year extensions.
D2.1.1 The City may negotiate the extension option with the Contractor within ninety (90) Calendar Days prior to the expiry date of the Contract. The City shall incur no liability to the Contractor as a result of such negotiations.
D2.1.2 Changes resulting from such negotiations shall become effective on January 1st of the respective year. Changes to the Contract shall not be implemented by the Contractor without written approval by the Contract Administrator.
D2.1.3 Bidders are advised that, in future, the City may be participating in collaborative procurement initiatives with other levels of government. Accordingly, extensions to this Contract may not be exercised.
D.2.2 Price Adjustment
D2.2.1 The Prices for year one (1) of the Contract will be as stated on Form B: Prices and will be in effect until June 30th, 2023.
D2.2.2 Notwithstanding C10, Unit Price of Item #1 shall be negotiated and by mutual agreement of the parties adjusted on July 1st.
D2.2.3 Notwithstanding C10, the prices for the annual extensions will be negotiated considering CPI. The Statistic Consumer Price Index for Manitoba (All Items) will be referenced.
(a) Potential price adjustments will only be made upon mutually agreed upon increase or decrease in excess of three percent (3%).
D2.2.4 The Contractor shall notify the Contract Administrator in writing, of any proposed change in the Unit Price of Item #1 no later than thirty (30) Calendar Days prior to the effective date of the change.
(a) This written notification shall include the submission of evidence, satisfactory to the Contract Administrator, upon which proposed adjustments are based. This evidence may include, but is not limited to, relevant indices and current market pricing.
(b) Should an adjustment to the Unit Price of Item #1 for any applicable period not be agreed to by both parties on the 1st day of each corresponding month (i.e. by July 1st), the price for the applicable period will revert to the previous pricing should an agreement not be mutually reached, with discussions resuming at the Contract extension period.
D2.2.5 Unless otherwise stipulated by the Bidder in his Bid, all calculations shall be rounded to the nearest one hundredth of a dollar per kg ($0.01/kg).
D2.3 The major components of the Work are as follows:
(a) the supply and delivery of 935,000 kg/Fe of liquid ferric chloride to the North End Water Pollution Control Centre (NEWPCC) by rail tank car.
D2.4 The Work shall be done on an "as required" basis during the term of the Contract.
D2.4.1 The type and quantity of Work to be performed under this Contract shall be as authorized from time to time by the Contract Administrator and/or Users.
D2.4.2 Subject to C7, the City shall have no obligation under the Contract to purchase any quantity of any item in excess of its actual operational requirements.
D2.5 Notwithstanding D2.1, in the event that operational changes result in substantial changes to the requirements for Work, the City reserves the right to alter the type or quantity of work performed under this Contract, or to terminate the Contract, upon thirty (30) Calendar Days written notice by the Contract Administrator. In such an event, no claim may be made for damages on the ground of loss of anticipated profit on Work.
