Agency/Vendor: MDOC/TBD

Contract #: TBD – Kitchen Chemicals

Effective Date: *Contract Start Date*

The State’s preferred 30 business days is reflected below as an example. The timeframes will be updated according to the mutually negotiated contract.

Metric 1: Delivery Time Frame

Definition and Purpose:

1. The State requires that deliveries be made within 30 business days from receipt of order. Deliveries after 30 business days are considered late. The receipt of order date is pursuant to Section 2, Service Levels, of the Standard Terms and Conditions.

1. The Contractor must submit its Delivery Date, via email, within two business days of receipt of the order to the Program Manager and Contract Monitor.

Data Sources:

1. Monthly Order and Delivery Reports provided by the Contractor (format to be agreed upon with the Contract Manager).

1. Internal MDOC data from SIGMA (The State of Michigan’s accounting application).

1. Internal MDOC data from Global Shop Solutions (Michigan State Industries’ Enterprise Resource Planning application)

1. Correspondence with Michigan State Industries staff.

1. Delivery correspondence from Contractor.

1. Written pre-approval correspondence of a late delivery from MDOC Program Manager.

Methodology:

Reconcile and review Data Sources 1-6 as needed.

Acceptable Standard:

The Acceptable Standard is 100% compliance.

Amount for Failing to Meet Service Level Agreement:

1% of the Delivery Order total will be assessed on day 31 and every business day thereafter, until the delivery is completed up to 95%. If the MDOC Program Manager provides a written pre-approval of a late delivery, the service credit may not apply.

Extenuating circumstances will be reviewed by the MDOC Contract Manager before any Service Credits are assessed. At the discretion of the State, these credits may be applied toward any payable due to the Contractor or be payable directly to the State of Michigan. Payments made directly to the State of Michigan shall be completed within 10 calendar days upon demand.

Metric 2: Reporting

Definition and Purpose:

The Contractor must ensure an accurate Monthly Order and Delivery Report is delivered via email to the MDOC within 15 calendar days from the close of the previous month.

Data Sources:

1. Required Monthly Order and Delivery Report correspondence (format to be agreed upon with the Contract Manager).

1. Correspondence with Michigan State Industries staff.

Methodology:

Reconcile data sources 1 and 2 as needed.

Acceptable Standard:

The Acceptable Standard is 100% compliance.

Amount for Failing to Meet Service Level Agreement:

$100.00 will be assessed on the 16th calendar day from the close of the previous month and every 7 calendar days thereafter until the reports are received by the MDOC.

Extenuating circumstances will be reviewed by the MDOC Contract Manager before any Service Credits are assessed. At the discretion of the State, these credits may be applied toward any payable due to the Contractor or be payable directly to the State of Michigan. Payments made directly to the State of Michigan shall be completed within 10 calendar days upon demand.

Metric 3: Shortages

Definition and Purpose

The Contractor must ensure every delivery is within an acceptable range (at least 95% of the quantity ordered) to be considered complete. Shortages of 5% or less will be accepted.

The Contractor may split orders as long as 95% of the MDOC Delivery Order is received within the delivery time frame.

Data Sources:

1. Required Monthly Order and Delivery Report correspondence (format to be agreed upon with the Contract Manager).

2. Correspondence with Michigan State Industries staff.

3. Written pre-approval correspondence of a delivery exception (approval of the shortages) from MDOC Program Manager

Methodology:

Reconcile Data Sources 1, 2 and 3 as needed.

Acceptable Standard:

The Acceptable Standard is 100% compliance.

Amount for Failing to Meet Service Level Agreement:

If the deliveries are not 95% complete, the MDOC will pay for the amount received after deducting 2% of the total Delivery Order amount. If the MDOC Program Manager provides a written pre-approval of the shortages, the service credit may not apply.

Extenuating circumstances will be reviewed by the MDOC Contract Manager before any Service Credits are assessed. At the discretion of the State, these credits may be applied toward any payable due to the Contractor or be payable directly to the State of Michigan. Payments made directly to the State of Michigan shall be completed within 10 calendar days upon demand.

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