Exhibit_B_-_Budget_Detail_and_Payment_Provisions.docx

EXHIBIT B – BUDGET DETAIL AND PAYMENT PROVISIONS

RATES

A. The maximum rates for services to be provided in the MSA are listed in Exhibit B.1 – Rate Sheet. All prices and fees shall be fixed for the entire MSA term including any optional extension periods unless the State approves a price adjustment in accordance with Section 4, Rate Adjustments.

INVOICES

A. Submission of Invoices

1) Contractor shall submit itemized invoices to the User Agency contact person at the address contained in the User Agency’s User Agreement. The following information should be included:

a) DGS MSA Number

b) User Agency Agreement Number

c) User Agency Name

d) User Agency Address

e) Description of services ordered and provided

f) Pricing information, as specified in Exhibit B.1 – Rate Sheet B. The User Agency contact person will verify and approve, or disapprove, the invoiced items. If the User Agency does not approve the invoiced items, the invoice will be disputed and returned to the Contractor for correction.

PAYMENT

A. Payment for services performed under this MSA will be made upon satisfactory completion of services rendered. Contractor shall invoice User Agencies in arrears upon successful completion of services.

B. Payment shall be made within 45 days in accordance with, and within the time specified in Government Code Chapter 4.5, commencing with Section 927 unless agreed otherwise in the User Agreement.

C. The User Agency shall not reimburse the Contractor or Temporary Healthcare Provider Personnel (THPP) for any equipment or supplies.

D. Holiday Pay

a. THPP may be required to work on California State holidays. THPP that perform work on California State holidays shall be compensated at an Hourly THPP rate of 1.5 times their awarded rate for the duration of their work performed that day. California State holidays identified by the California Department of Human Resources (CalHR) may be subject to change, and are located on the CalHR website, at http://www.calhr.ca.gov/employees/Pages/holidays.aspx E. Overtime

a. THPP may be required to work overtime, and the Contractor shall pay THPP the authorized overtime.

b. Overtime is allowable upon prior approval by the User Agency. THPP shall be compensated at an Hourly THPP rate of 1.5 times their awarded rate for any hours worked beyond their standard work hours, as determined by the User Agency User Agreement.

c. Contractor shall observe all Federal, and State, laws and regulations pertaining to employee wages, benefits, hours, and working conditions.

RATE ADJUSTMENTS

A. All THPP Classification rates shall be firm fixed for the MSA term, including any optional year extensions, unless a rate adjustment is granted. The Hourly Overhead rates are not subject to rate adjustments. The determination of rate adjustments shall be at the sole discretion of the State, and rate adjustments may be requested no more than once annually in accordance with the following guidelines.

1) Rate adjustments shall not be requested or made until one month after the first term of the awarded MSA has ended.

2) Rate adjustments will be based on the rates of the comparable CalHR classification posted on the CalHR Pay Scales / Classification Salary webpage. If the Contractor’s rate(s) fall below the comparable CalHR classification, the maximum rate adjustment allowed will be the minimum salary percentage increase from the previous year.

3) The Contractor is solely responsible for notifying the DGS-PD via email to the DGS Contract Administrator, as specified in the MSA User Instructions, of a rate adjustment request, no earlier than July 1st and no later than July 31st. Requests for rate adjustments will be reviewed in the order they are received. The Contractor shall identify the classification and provide a copy of the Pay Scales / Classification Salary to the Contract Administrator. The subject line of the email request must contain "Request for Rate Adjustment – MSA Number XXX". In the event of a rate increase, should the Contractor fail to make a request and submit supporting documentation to the DGS-PD within the timeframe noted above, the Contractor shall be deemed to have waived its right to any increase in rate for that year.

4) Any rate increase shall not be effective until an MSA amendment is executed. No retroactive rate adjustments will be allowed. Rate increases shall not apply to User Agreements executed prior to rate adjustment.

BUDGET CONTINGENCY

A. It is mutually agreed that if the State Budget Act of the current year and/or any subsequent years does not appropriate sufficient funds for the User Agreement, the User Agreement shall be of no further force and effect. In this event, the State shall have no liability to pay any funds whatsoever to the Contractor or to furnish any other consideration.

DVBE WITHHOLDING

A. Upon completion of a contract for which a commitment to utilize DVBE subcontractors was made, the Contractor shall certify compliance with Military and Veterans Code (MVC) Section 999.5(d) by submitting a complete and accurate Prime Contractor’s Certification – DVBE Subcontracting Report (STD 817). Pursuant to MVC Section 999.7, $10,000 will be withheld from the final payment, or the full final payment if less than $10,000, until the prime contractor complies with the certification requirements of subdivision (d) of MVC Section 999.5. Prime contractor shall be given 30 days’ notice to cure the defect. If, after 30 calendar days from the date of notice, the prime contractor refuses to comply with the certification requirements, DGS shall permanently deduct $10,000 from the final payment, or the full payment if less than $10,000. To ensure accuracy and completeness of Contractor’s certification of payments to DVBE subcontractors, DGS may request proof of payment. All information provided by Contractors and contract records shall be retained for a minimum of 6 years from date of receipt.

Do not submit this attachment with your proposal.