6.7.4_Liquidated_Damages.docx

This is a Liquidated Damages schedule for a Tennessee Evidence-Based Programming contract. The document outlines financial penalties imposed on the contractor for failures to meet contractual obligations across six categories: Program Delivery, Reporting & Documentation, Training & Staff Qualifications, Staffing & Personnel, Technology Requirements, and Security & Data Protection. Program delivery violations include failures to utilize mandated curricula ($200 per incident), facilitate scheduled classes ($700 per class), enroll referred individuals within two business days ($200 per individual), and open closed cohorts within five business days ($200 per cohort). Reporting and documentation penalties range from $200 to $500 per occurrence, with additional daily fees for late submissions exceeding 30 days. Training and staffing violations carry penalties of $200 to $500 per occurrence, including failures related to facilitator certification, quality assurance plan submissions, background check documentation, and required training completion.

Technology, security, and data protection violations represent the highest financial penalties, ranging from $200 to $1,000 per occurrence. These include failures to notify the State of security incidents within 24 hours ($500), encrypt state data per FIPS requirements ($1,000), provide SOC 2 Type 2 reports timely ($500), and complete annual penetration testing ($1,000). The liquidated damages structure is designed to ensure contractor compliance with specific contractual requirements referenced throughout the document, with penalties calibrated to reflect the severity and impact of each violation type on program operations and data security.