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monthly report in Microsoft Excel that details the order accuracy rate. Example: 1 <br />minus 6 mishipped products divided by 600 products orders = 99%. <br />XVIII. Financial Consequences <br />The Contractor is required to meet the deliverables listed in the Contract. The Contractor is <br />required to meet minimum service levels on standard contract orders only, special/custom <br />orders (furniture and oversized items, custom printing orders and certain technology items). <br />Failure to meet the specified deliverables will result in the financial consequences to the <br />State as shown in the chart below. <br />Deliverable*Additional <br />First <br />Second <br />Third ' <br />Fourth <br />Fifth <br />Each <br />Failure <br />Failure <br />Failure <br />Failure <br />Failure <br />Failure <br />Submission of required <br />reports <br />$0 <br />$500 <br />$500 <br />$1,000 <br />$2,000 <br />$3,000 <br />Delivery Timing <br />$0 <br />$500 <br />$1,000 <br />$1,000 <br />$2,000 <br />$3,000 <br />Less than 95% on time <br />Order Filled and Delivered <br />Less than 98% filled and <br />$0 <br />$500 <br />$1,000 <br />$1,000 <br />$2,000 <br />$3,000 <br />delivered <br />Order Accuracy <br />$0 <br />$500 <br />$1,000 <br />$1,000 <br />$2,000 <br />$3,000 <br />Less than 98% accurate <br />*If the Contractor fails to meet the deliverables five or more times in a 12 month contract <br />period, the State shall have grounds to initiate contract breach and termination proceedings. <br />The financial consequences will be paid via check or money order and made out to the <br />Department of Management Services in US Dollars within 30 calendar days after the <br />required report submission date. These consequences are individually assessed for failures <br />over each 12 month period beginning with the first full month of contract performance and <br />every 12 months thereafter. <br />XIX. Business Review Meetings <br />In order to maintain the partnership between the Department and the Contractor, each <br />quarter the Department may request a business review meeting. The business review <br />meeting may include, but is not limited to, the following: <br />• Successful completion of deliverables <br />• Review of Contractor's performance <br />• Review of minimum required reports <br />• Addressing of any elevated Customer issues <br />Page 10 of 15 <br />Contract No. 44111513-17-01 <br />Office Supplies <br />