Service Requirements - Suppliers Frequently Asked Questions

Union Pacific's contracts are structured to define various conditions for the protection of the railroad and our suppliers. These include, but are not limited to:

• Nature and location of the work or services
• Timeline for performance of the work
• Submission of a "Statement of Business and Legal Relationships"
• Indemnification and liability protection
• Compensation provisions
• Expenditure limitations
• Railroad's right to audit the records of the service provider
• Right to recover overbillings
• Expiration date and/or termination clause
• Special provisions (i.e., nondisclosure of information and/or ownership and use of the work product)
• Insurance requirements
• Lien obligations and release of liens
• Payment of wages and payroll taxes; compliance with laws
• Permits
• Right to stop work; extra work
• Assignment and subcontracting
• Patent, copyright and other infringements
• Waiver of default
• Modification of the entire agreement
• Controlled Access Policy

Most service contracts with Union Pacific call for the following minimum insurance:

• General Public Liability: $500,000 per occurrence, with a $1,000,000 aggregate limit.
• Automobile Public Liability: $500,000 per occurrence.
• Workers' Compensation insurance, as required by law.

Construction contracts with Union Pacific call for the following minimum insurance requirements:

• General Public Liability: $1,000,000 per occurrence, with a $2,000,000 aggregate limit.
• Products Completed Operations: $1,000,000 aggregate minimum.
• All-Risk Builder's Risk: coverage equal to the projected value of the completed structure(s).
• Automobile Public Liability: $1,000,000 per occurrence.
• Workers' Compensation insurance, as required by law.

Contractors are required to keep the necessary insurance in force for the entire term of the agreement and furnish UPRR a Certificate of Insurance which names the railroad as an additional insured. Contracts for other services may have minimum requirements which vary from the above.

Safety is Union Pacific’s number one priority. Depending on the type of work and the work location, there are many specific OSHA and FRA safety regulations that Union Pacific requires its contractors to follow. These requirements may be specifically identified in various forms of contract.

Essentially, UP requires that its contractors follow the same basic safety rules that govern Union Pacific employees. These may include, but are not limited to, wearing appropriate clothing, hard hats, safety glasses, safety shoes, fall protection devices, and other safety equipment, as conditions warrant. Contractor Safety identifies key information.

Compliance with Laws/Environmental Compliance - Contractor shall comply with all applicable federal, state and local laws, regulations and enactments affecting the work including all applicable environmental laws and regulations and air emission standards. The contractor shall use only such methods as are consistent with safety, both as concerns the Contractor, the Contractor's agents and employees, the officers, agents, employees and property of the Railroad and the public in general. The Contractor shall comply with all applicable local, state and federal environmental and occupational safety and health acts and regulations. All Federal Railroad Administration regulations shall be followed when work is performed on the Railroad's premises.

Occupational Safety and Health Administration (OSHA) Hazard Communication Standard - In accordance with the provisions of the United Nations Globally Harmonized System of Classification and Labeling of Chemicals (GHS) requirements incorporated into the Hazard Communication Standards (HCS) issued by OSHA (29 CFR Part 1910.1200), the Railroad has developed and implemented its Hazard Communication Program. At the specific Railroad facilities where potentially hazardous chemicals may be present, the Railroad maintains a copy of its Hazard Communication Written Plan which, among other things includes a list of hazardous chemicals that may be present at the facility involved and the availability of Safety Data Sheets (SDS). The Written Plan is available for review by the contractor and any of its officers, employees and agents.

The HCS also requires that parties exchange SDS, as well as any additional information about precautionary measures necessary to protect both parties' employees where exposure may occur. The Contractor shall provide such information to the Railroad, its officers, employees and agent before Contractor uses any hazardous chemicals (as defined in the HCS) in, on or about any premises or facility of the Railroad.

Transportation of Hazardous Waste - Before any transportation and disposal activity requiring manifesting of hazardous waste is performed by a Contractor, the following requirements will be met. A representative manifest will be provided by the Contractor to the Railroad's representative prior to any transportation and disposal activity to allow the opportunity for the Railroad to check the manifest for accuracy.

The Contractor shall at a minimum at all times comply with all health and safety requirements, including Railroad's Minimum Safety Requirements for UPRR Contractors, and all health and safety requirements provided under applicable law.

The Railroad and Contractor have a mutual interest in providing a safe workplace for existing employees of both parties and in maintaining the integrity and security of Railroad's facilities. To ensure this goal, the Railroad has instituted a Controlled Access Policy. Prior to any new or existing employee of the Contractor working at or regularly visiting any Railroad facility, the Contractor will be required to register with an approved risk assessment company to secure a photo ID and pass a contractor safety orientation course.

You may become aware of projects for which you were not solicited to bid. If you are interested in submitting a bid for such a project, you should contact the project manager or Supply representative as soon as possible to secure a bid package. Depending on the timing of the project, Supply may be able to accommodate your request.

After the deadline for submission of bids has passed, all bids for a given project are opened and reviewed. After necessary approval is secured, generally a Supply representative will notify (where practical) the unsuccessful bidders, while completing applicable contracts with successful bidders. Only after receiving a signed contract and, where applicable, a notice-to-proceed or purchase order, should the supplier expect to be allowed onto railroad property to begin the work.

Incomplete bids are the most common reason for disqualification of bids. Bids that do not contain costs for all identified bid items (or bids that contain costs for additional items not specified) are difficult, if not impossible, to compare to other bids. Other causes for disqualification include, but are not limited to, a lack of adequate insurance coverage and exceptions to the form of contract. Union Pacific reserves the right to accept or reject any or all bids at its discretion.

The general rule is that bid results are not published. However, the railroad reserves the right to publish certain bid results.

Specific technical questions about the specifications of a project are best answered by the project manager. Questions regarding bidding or contracting procedures should be addressed to the Supply representative identified in the bidding documents.