04 IFB_Presort Svcs_Exhibit B_SLAs.xlsx

This Service Level Agreements (SLAs) document outlines performance metrics and liquidated damages for Presort Mail Processing Services contracted with Commonwealth Executive Agencies in Pennsylvania. The contractor must process First-Class Letters, Post Cards, Flats, and Standard Presort Mail for delivery to the United States Postal Service (USPS). The SLAs establish specific performance targets reviewed on monthly and quarterly bases, including same-day delivery requirements (no more than one instance of non-compliance per quarter), next-day delivery requirements (no more than one instance per quarter), and postage rate processing targets. The contractor must process 90% of permitted mail at the 5-digit postage rate for letters and standard mail, 75% of permitted mail at the 3-digit rate for flats, and 100% of metered mail at applicable rates, while minimizing residual mail with no discount qualification.

Liquidated damages and financial penalties are assessed for non-compliance, with first failures resulting in written notice and subsequent failures triggering 2% deductions to handling fees. For postage rate shortfalls on permitted mail, the contractor must reimburse 100% of excess postage costs and document all volumes and costs. For metered mail processing failures, the contractor is not reimbursed for excess postage but must provide documentation. Residual mail processing without discount justification results in no handling fee reimbursement, with agencies covering excess postage only when documented and justified. Monthly and quarterly reviews ensure ongoing contractor compliance with all performance metrics.