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DocuSign Envelope ID: ClAD950E-9B4C-4DE5-98D5-725EBB24CD9D <br />SECTION 11. CONTRACT MONITORING. <br />11.1 Performance Standards. <br />The Contractor agrees to perform all tasks and provide deliverables as set forth in the <br />Contract. The Department and the Customer will be entitled at all times, upon request, to <br />be advised as to the status of work being done by the Contractor and of the details <br />thereof. <br />11.2 Performance Deficiencies and Financial Consequences of Non -Performance <br />11.2.1 Proposal of Corrective Action Plana <br />In addition to the processes set forth in the Contract (e.g., service level agreements), if <br />the Department or Customer determines that there is a performance deficiency that <br />requires correction by the Contractor, then the Department or Customer will notify the <br />Contractor. The correction must be made within a time -frame specified by the <br />Department or Customer. The Contractor must provide the Department or Customer with <br />a corrective action plan describing how the Contractor will address all performance <br />deficiencies identified by the Department or Customer. <br />11.2.2 Retainage for Unacceptable Corrective Action Plan or Plan Failure. <br />If the corrective action plan is unacceptable to the Department or Customer, or <br />implementation of the plan fails to remedy the performance deficiencies, the Department <br />or Customer will retain ten percent (10%) of the total invoice amount. The retainage will <br />be withheld until the Contractor resolves the performance deficiencies. If the <br />performance deficiencies are resolved, the Contractor may invoice the Department or <br />Customer for the retained amount. If the Contractor fails to resolve the performance <br />deficiencies, the retained amount will be forfeited to compensate the Department or <br />Customer for the performance deficiencies. <br />11.3 Performance Delay. <br />11.3.1 Notification. <br />The Contractor will promptly notify the Department or Customer upon becoming aware <br />of any circumstances that may reasonably be expected to jeopardize the timely and <br />successful completion (or delivery) of any commodity or contractual service. The <br />Contractor will use commercially reasonable efforts to avoid or minimize any delays in <br />performance and will inform the Department or the Customer of the steps the Contractor <br />is taking or will take to do so, and the projected actual completion (or delivery) time. If <br />the Contractor believes a delay in performance by the Department or the Customer has <br />caused or will cause the Contractor to be unable to perform its obligations on time, the <br />Contractor will promptly so notify the Department and use commercially reasonable <br />efforts to perform its obligations on time notwithstanding the Department's delay. <br />11.3.2 Liquidated Damages. <br />The Contractor acknowledges that delayed performance will damage the <br />DepartmentCustomer, but by their nature such damages are difficult to ascertain. <br />Accordingly, the liquidated damages provisions stated in the Contract documents will <br />apply. Liquidated damages are not intended to be a penalty and are solely intended to <br />compensate for damages. <br />11.4 Force Majeure, Notice of Delay, and No Damages for Delay. <br />SP approved version 7-1-2019 14 <br />