Program 249-S (R-1)
Specifications by MRN
Reviewed by JH
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U.S. GOVERNMENT PUBLISHING OFFICE
GENERAL TERMS, CONDITIONS, AND SPECIFICATION
For the Procurement of
U.S. Treasury Checks
as requisitioned from the U.S. Government Publishing Office (GPO) by the
U.S. Department of the Treasury
TERM OF CONTRACT: The term of this contract is for the period beginning January 1, 2021 and ending
December 31, 2021, plus up to four (4) optional 12-month extension period(s) that may be added in accordance
with the “OPTION TO EXTEND THE TERM OF THE CONTRACT” clause in SECTION 1 of this contract.
NOTE: Contractor interfacing with Treasury for the electronic transmission of files from Treasury to the
contractor’s facility will take place from January 1, 2021 through March 31, 2021. Live production will commence
on April 1, 2021.
BID OPENING: Bids shall be opened at 11:00 a.m., prevailing Washington, DC Time, on July 16, 2020, at the
Government Publishing Office, Washington, DC. (Due to the COVID-19 pandemic, this will NOT be a public bid
BID SUBMISSION: Due to the COVID-19 pandemic, the physical office will NOT be open. Based on this, bidders
must submit email bids to email@example.com for this solicitation. No other method of bid submission will be
accepted at this time. The program number and bid opening date must be specified in the subject line of the emailed
bid submission. Bids received after 11:00 a.m. on the bid opening date specified above will not be considered for
RESTRICTION ON LOCATION OF PRODUCTION FACILITIES: Due to the security requirements set forth
in these specifications, all U.S. Treasury checks and all blank check paper must be produced in the United States.
The U.S. Department of the Treasury would not be able to oversee and enforce these security requirements outside of
the jurisdiction of the United States.
BIDDERS, PLEASE NOTE: These specifications have been EXTENSIVELY revised; therefore, all bidders are
cautioned to familiarize themselves with all provisions of these specifications before bidding. For the purpose of
this contract, the U.S. Department of the Treasury will also be referred to as the Treasury Department or Treasury
throughout these specifications.
Abstracts of contract prices are available at: https://www.gpo.gov/how-to-work-with-us/vendors/contract-pricing.
For information of a technical nature prior to award, contact Rebecca Swan at firstname.lastname@example.org or (202) 512-0307.
After award, contact Cecilia Dominguez Castro at email@example.com or (202) 512-0307.
U.S. Treasury Checks
249-S (R-1) (12/21)
Page 2 of 36
SECTION 1. - GENERAL TERMS AND CONDITIONS
GPO CONTRACT TERMS: Any contract which results from this Invitation for Bid will be subject to the
applicable provisions, clauses, and supplemental specifications of GPO Contract Terms (GPO Publication 310.2,
effective December 1, 1987 (Rev. 01-18)) and GPO Contract Terms, Quality Assurance through Attributes
Program for Printing and Binding (GPO Publication 310.1, effective May 1979 (Rev. 09-19).
GPO Contract Terms (GPO Publication 310.2) –
GPO QATAP (GPO Publication 310.1) –
SUBCONTRACTING: No subcontracting is allowed.
QUALITY ASSURANCE LEVELS AND STANDARDS: The following levels and standards shall apply to
Product Quality Levels:
(a) Printing (page related) Attributes – Level II.
(b) Finishing (item related) Attributes – Level II.
Inspection Levels (from ANSI/ASQC Z1.4):
(a) Non-destructive Tests – General Inspection Level I.
(b) Destructive Tests – Special Inspection Level S-2.
Specified Standards: The specified standards for the attributes requiring them shall be:
P-7. Type Quality and Uniformity
O.K. Press Sheet
P-9. Solid and Screen Tint Color Match
O.K. Press Sheet
Special Instructions: In the event that inspection of press sheets is waived by the Government, the following listed
alternate standards (in order of precedence) shall become the Specified Standards:
P-7. O.K. Proofs/Electronic media/Furnished copy/Government furnished sample.
P-9. Pantone Matching System.
OPTION TO EXTEND THE TERM OF THE CONTRACT: The Government has the option to extend the
term of this contract for a period of 12 months by written notice to the contractor not later than 30 days before the
contract expires. If the Government exercises this option, the extended contract shall be considered to include this
clause, except, the total duration of the contract may not exceed five (5) years as a result of, and including, any
extension(s) added under this clause. Further extension may be negotiated under the “EXTENSION OF
CONTRACT TERM” clause. See also “ECONOMIC PRICE ADJUSTMENT” for authorized pricing
U.S. Treasury Checks
249-S (R-1) (12/21)
Page 3 of 36
EXTENSION OF CONTRACT TERM: At the request of the Government, the term of any contract resulting
from this solicitation may be extended for such period of time as may be mutually agreeable to the GPO and the
ECONOMIC PRICE ADJUSTMENT: The pricing under this contract shall be adjusted in accordance with this
clause, provided that in no event will any pricing adjustment be made that would exceed the maximum permissible
under any law in effect at the time of the adjustment. There will be no adjustment for orders placed during the first
period specified below. Pricing will thereafter be eligible for adjustment during the second and any succeeding
performance period(s). For each performance period after the first, a percentage figure will be calculated as
described below and that figure will be the economic price adjustment for that entire next period. Pricing
adjustments under this clause are not applicable to reimbursable postage or transportation costs, or to paper, if paper
prices are subject to adjustment by separate clause elsewhere in this contract.
For the purpose of this clause, performance under this contract will be divided into successive periods. The first
period will extend from January 1, 2021 to December 31, 2021, and the second and any succeeding period(s) will
extend for 12 months from the end of the last preceding period, except that the length of the final period may vary.
The first day of the second and any succeeding period(s) will be the effective date of the economic price adjustment
for that period.
Pricing adjustments in accordance with this clause will be based on changes in the “Consumer Price Index -
Commodities Less Food in U.S. City Average, All Urban Consumers, Seasonally Adjusted” Index published
monthly by the U.S. Department of Labor, Bureau of Labor Statistics.
The economic price adjustment will be the percentage difference between Index averages as specified in this
paragraph. An index called the variable index will be calculated by averaging the monthly Indexes from the 12-
month interval ending three (3) months prior to the beginning of the period being considered for adjustment. This
average is then compared to the average of the monthly Indexes for the 12-month interval ending September 30,
2020, called the base index. The percentage change (plus or minus) of the variable index from the base index will
be the economic price adjustment for the period being considered for adjustment.
The Government will notify the contractor by contract modification specifying the percentage increase or decrease
to be applied to invoices for orders placed during the period indicated. The contractor shall apply the percentage
increase or decrease against the total price of the invoice less reimbursable postage or transportation costs and
separately adjusted paper prices. Payment discounts shall be applied after the invoice price is adjusted.
PAPER PRICE ADJUSTMENT: Paper prices charged under this contract will be adjusted in accordance with
“Table 9 - Producer Price Indexes and Percent Changes for Commodity Groupings and Individual Items” in
Producer Price Indexes report, published by the Bureau of Labor Statistics (BLS), as follows:
NOTE: For the purpose of this contract, the Paper Price Adjustment will be based on the date of live production.
Live production will commence on April 1, 2021.
1. BLS code 0913-01 for “Offset and Text” will apply to all paper required under this contract.
2. The applicable index figures for the month of March 2021 will establish the Base Index.
3. There shall be no price adjustment for the first three production months of the contract.
4. Price adjustments may be monthly thereafter, but only if the index varies by an amount (plus or minus)
exceeding 5% by comparing the Base Index to the index for that month, which is two months prior to the
month being considered for adjustment.
U.S. Treasury Checks
249-S (R-1) (12/21)
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5. Beginning with order placement in the fourth month, index variances will be calculated in accordance with
the following formula:
X - Base Index
x 100 = ___ %
Where X = the index for that month which is two months prior to the month being considered for adjustment.
6. The contract adjustment amount, if any, will be the percentage calculated in 5 above less 5%.
7. Adjustments under this clause will be applied to the contractor’s bid price(s) for Item III., “PAPER” in the
“SCHEDULE OF PRICES” and will be effective on the first day of any month for which prices are to be
The Contracting Officer will give written notice to the contractor of any adjustments to be applied to invoices for
orders placed during months affected by this clause. In no event, however, will any price adjustment be made which
would exceed the maximum permissible under any law in effect at the time of the adjustment. The adjustment, if
any, shall not be based upon the actual change in cost to the contractor, but shall be computed as provided above.
The contractor warrants that the paper prices set forth in this contract do not include any allowance for any
contingency to cover anticipated increased costs of paper to the extent such increases are covered by this price
All requirements, starting with Security Requirements below, through page 13 must be completed and approved at
time of solicitation of this contract, if not the bidder will be declared non-responsive.
DATA RIGHTS: All data and materials furnished and/or produced in the performance of this contract shall be the
sole property of the Government. The contractor agrees not to assert rights or to establish any claim to such
data/materials in whole or in part in any manner or form, or to authorize others to do so, without prior written
consent of the Contracting Officer.
Contractor’s Responsibility: In accordance with Contract Terms (Rev. 01-18), the contractor shall be responsible
for all blank paper, U.S. Treasury checks, plates, negatives, electronic media, proofs, or photocopies thereof, all
data rights, and all other materials either Government-furnished or contractor-produced necessary to produce this
product, while in their custody and control. The contractor agrees to pay the Government the amount of any loss or
losses, not in excess of $1,000,000.00 sustained by misappropriation or improper use of blank paper, checks, plates,
negatives, electronic media, or proofs in the custody and control of the contractor. The $1,000,000.00 limit applies to
each occurrence during the term of the contract.
The contractor shall be responsible for adherence to Check 21 Law. All banks are affected by this law even if they
do nothing to change their current check processing operations. All customers (consumers and businesses) are
affected by the Check 21 Act in that they have the potential to receive a substitute check. The Accredited Standards
Committee X9B (www.x9.org) focused on the development of industry standards for the financial services industry
and developed the technical specification for substitute checks (DSTU X9.90-2003) in support of Check 21. (DSTU
is an acronym for Draft Standard for Trial Use.) All checks, except foreign checks, are eligible to become substitute
checks, including U.S. Treasury checks.
U.S. Treasury Checks
249-S (R-1) (12/21)
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A Substitute Check is a paper reproduction of the original check that: contains an image of the front and back of the
original check; except as provided under generally applicable industry standards for substitute checks to facilitate
the processing of substitute checks (regulations may contain exceptions). The contractor will conform, in paper stock,
dimension, and otherwise, with generally applicable industry standards for substitute checks; and is suitable for
automated processing in the same manner as the original check. There are no special exceptions for U.S. Treasury
The contractor’s responsibility for finished U.S. Treasury Checks shall continue until distribution is made in
accordance with “DISTRIBUTION,” as specified herein. The contractor’s responsibility for imperfect checks, blank
paper, plates, negatives, electronic media, and proofs shall continue until other disposition is accomplished in
accordance with these specifications.
Reimbursement for Defective Checks: The contractor shall reimburse the Government for any costs incurred, not
in excess of $250,000.00 per incident, from the use of checks furnished by the contractor which do not conform to
the specifications or to checks rendered defective or damaged due to spillage during shipment. Reimbursement shall
cover such additional costs, as determined by the Contracting Officer in coordination with the contractor, in excess of
costs normally incurred for machine rental, the services of personnel, supplies, and replacement of checks.
Indemnity Bond: The contractor will be required to execute an indemnity bond with a company holding a
Department of the Treasury certificate of authority as an acceptable surety on Federal bonds, to cover any losses
sustained by the Government by reason of the loss, misappropriation, or improper use of any of the items specified
in the paragraph above, which are in the custody of the contractor. A $500,000.00 indemnity bond will be required.
Within five (5) workdays of notification of award, the contractor will be required to show proof of the indemnity
Performance Bond: The contractor will be required to execute a performance bond on Standard Form 25, with
a company holding a Department of the Treasury certificate of authority as an acceptable surety on Federal bonds,
for the faithful performance of this contract, including adherence to all applicable conditions and requirements
contained herein. The amount of the bond will be one-half the estimated amount of the contract as shown for the
items therein and awarded, but rounded to the nearest thousand, provided that such bond amount for the contract is
not to exceed $500,000.00.
Within five (5) workdays of notification of award, the contractor will be required to show proof of the performance
Plant Capacity Requirements: All manufacturing, production, and waste destruction of the products covered
under these specifications must be accomplished at the same facility. The contractor must be able to manufacture
and deliver, in any one calendar month, at least 20,000,000 total checks for both formats.
Prohibition Against Similar Printing: The contractor shall not make or sell to any person other than the U.S.
Government Publishing Office, any products that resemble the general appearance and/or contain a similar
combination of design and material features as the U.S. Treasury Checks.
NOTE: The contractor shall not change, enhance, or modify any of the offered products, raw materials,
manufacturing processes (including equipment) and/or suppliers (paper manufacturer, etc.) without written
approval of the Government.
Moderate Risk Background Investigation: All personnel performing on this contract must pass a Moderate Risk
Background Investigation to be conducted by the contractor at their own expense. The background investigation
must align with the Moderate Risk Background Investigations (Tier 2) guidelines published by the Office of