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include copies of the invoices in the random sample that were not in compliance with <br /> the contract terms. <br /> 4.0 SUMMARY OF PEANALTY FOR FAILURE OF CONTRACTOR TO MEET <br /> DELIVERALBES <br /> The Contractor is required to meet the performance standards as described in Section 3.0 above. <br /> Contractor is required to meet performance standards for Delivery Timing, Order Accuracy, <br /> Order Completeness/Fill and Price Accuracy on standard contract orders only, special/custom <br /> orders can be excluded from the calculations of these performance standards. Failure to meet the <br /> performance standards specified will result in the specified damages to the State as shown in the <br /> chart below. On the 15th of the month following the month being reported, the Contractor shall <br /> submit a report to the Contract Administrator containing the information required in Section 3.0 <br /> above. Performance Assurances, if applicable, will be paid via check or money order made out to <br /> the Department of Management Services in US Dollars within 30 days after report submission. <br /> These damages are assessed for failures over each 12 month period beginning with the first full <br /> month of contract performance and every 12 months thereafter. <br /> Item First Second Third Fourth Fifth Each <br /> Failure Failure Failure Failure Failure* Additional <br /> Failure <br /> Submit Report $0 $500 $500 $1,000 $2,000 $3,000 <br /> Delivery $0 $0 $1,000 $1,000 $2,000 $3,000 <br /> Timing — less <br /> than 95% on <br /> time <br /> Order $0 $0 $1,000 $1,000 $2,000 $3,000 <br /> Accuracy — <br /> less than 98% <br /> of items <br /> delivered are <br /> accurate <br /> Order $0 $0 $1,000 $1,000 $2,000 $3,000 <br /> Completeness/ <br /> Fill — less than <br /> 95% <br /> Price Accuracy $0 $0 $2,000 $3,000 $4,000 $5,000 <br /> — less than <br /> 99.5% <br /> *Note: If respondent fails to meet the performance standards 5 or more times in a 12 month contract <br /> period,the State shall have grounds to initiate contract breach and termination proceedings. <br /> 5.0 EFFECTIVE DATE <br /> This Contract shall begin on October 18, 2010, or on the last date in which it is signed by all <br /> parties, whichever is later. <br /> 6.0 EXPIRATION DATE <br /> This Contract shall expire three years from the effective date of the Contract, unless cancelled <br /> earlier in accordance with its terms. <br /> 7.0 RENEWAL <br /> Office and Educational Consumables 10 <br /> State Term Contract 618-000-11-1 <br />