6.7.4_Liquidated_Damages.docx

This is a Liquidated Damages schedule document for the Tennessee Department of Correction (TDOC) Evidence-Based Programming contract. The document outlines financial penalties imposed on contractors for non-compliance across six operational categories: Program Delivery, Reporting & Documentation, Training & Staff Qualifications, Staffing & Personnel, Technology Requirements, and Security & Data Protection. Program delivery violations include failures to utilize approved curricula ($200 per incident), facilitate scheduled classes ($700 per class), enroll referred individuals within two business days ($200 per individual), maintain proper session lengths ($200 per occurrence), and open closed cohorts timely ($200 per delay). Reporting penalties range from $200 to $500 depending on the deliverable type, with additional daily charges for submissions exceeding 30 days late. Training and staffing qualifications violations carry penalties of $200 to $500 for facilitator certification issues, quality assurance plan submissions, and background check documentation failures. Technology and security violations incur the highest penalties, including $500 for delayed security incident notifications, $1,000 for failure to encrypt state data per FIPS requirements, and $1,000 for incomplete annual penetration testing.

The liquidated damages structure establishes clear financial accountability mechanisms aligned with the contract's operational requirements under the Evidence-Based Programming procurement. Penalties are calibrated to reflect the severity and operational impact of non-compliance, with security and data protection violations commanding the highest financial consequences at $1,000 per occurrence, underscoring TDOC's prioritization of cybersecurity and criminal justice information protection. The schedule applies to all contractors regardless of size, organization type, or incumbent status, with no exemptions or set-asides identified. Monthly operational summaries, weekly attendance rosters, annual reports, and facilitator documentation constitute the primary reporting obligations subject to liquidated damages, while adherence to Evidence-Based Programming curriculum standards and timely class delivery represent core program performance requirements. The damages function as pre-established remedies rather than penalties, protecting the State's interests in contract performance quality and compliance with FBI Criminal Justice Information Services (CJIS) Security Policy standards and related cybersecurity protocols throughout the five-year contract term.