EXHIBIT C - WORK-COMPLETIONDELIVERABLE.docx

EXHIBIT C - WORK-COMPLETION/DELIVERABLE

MOBILITY WALLET PHASE 3 – LIQUIDATED DAMAGES FRAMEWORK

LA Metro and the contractor agree that actual damages from failure to perform certain requirements in any contract executed pursuant to this RFP are difficult to accurately estimate, there has been a reasonable effort by parties to fix the amount of compensation that is due under the contract, and that it is possible to identify an amount of liquidated damages for the failure to perform those requirements that is proportionate to the actual damages that LA Metro would anticipate as a result of the failure. In lieu of actual damages, LA Metro and the contractor shall agree to a schedule of fees for failure to fulfil certain requirements in any contract executed pursuant to this RFP. The following is the required schedule of liquated damages in the form of fees for failure to meet individual milestones and/or complete the Services by the deadlines in the Exhibit C (Work-Completion/Deliverable Schedule)

Pursuant to the Mobility Wallet Phase 3 – Liquidated Damages Framework, the Parties acknowledge the following fee categories as benchmarks**:

· Standard $ 1,000 per 24 hours

· High $ 2,500 per 24 hours

· Critical $ 5,000 per 24 hours

Liquidated Damages shall apply to each applicable milestone and/or deliverable as specified in this Agreement and matrix below. The total aggregate amount of Liquidated Damages assessed across all milestones and deliverables shall not exceed 15% of the total contract value, unless Metro exercises additional remedies under the Agreement.

Nothing herein shall preclude the Parties from negotiating the standard fees or rate schedule in good faith during contract negotiations or through subsequent modifications. The fee structure may be adjusted by mutual written agreement between the Parties, provided any adjustments remain consistent with Metro’s procurement policies and applicable law.

Formula:

Total LD cap = 0.15 × Total contract value not including pass through subsidy funds to recipients.

Unresolved Requirements:

a) All Standard and High category requirements will move to Critical level of liquidated damages if not resolved within 48 hours after notification to the contractor.

b) All Critical category requirements will double in liquidated damages payment if not resolved within 24 hours after notification to the contractor.

File Transmission:

A file for batch enrollment is typically returned to the sender between 30 and 90 minutes of receipt of the file. The file will include identical information that was sent by the LA Metro, a card enrollment report, and a rejected card report. Upon being notified by the Program Lead that a file has not been received within two hours of transmission of the file, contractor will resolve the situation within one business day by transmitting the file or pay liquidated damages to the affected programs.

· Category: Standard

Monthly/Annual Reporting Within three business days of contractor being notified by the LA Metro that a monthly/annual report has not been provided as required under Business Requirements of the RFP, contractor will resolve the situation by providing the required reporting or pay the liquidated damages to LA Metro.

· Category: Standard

Go Live” Date:

Contractor will be ready to issue cards on behalf of LA Metro by the close of the business day mutually agreed upon as the go live date of services under this RFP, unless either party provides at least a three working day notice that “go live” date shall be delayed. For existing card programs, outlined in this RFP, the contractor will implement the card programs and deliver services at transition time on or before the “go live” date or pay liquidated damages to the program(s). For new programs implemented under this RFP, the contractor will only be entitled to one extension per program before liquidated damages may be imposed. If LA Metro requests any changes to the scope of work, service offering, or functionality of the card program during the implementation process, contractor will notify the program lead if the requested changes will delay the “go live” date.

· Category: Critical

Card Issuance:

Upon being notified by the Program Lead that a card or batch of cards was not issued within two business days of the program submitting an enrollment file to the contractor no later than 5:00 PM prevailing Pacific Time, contractor will pay to have the affected cards expedited to the cardholders. If the cards are not expedited to the cardholders within two business days after the initial notice by LA Metro that the cards were not issued, contractor will pay liquidated damages for each day one or more cards remain unissued to the affected program(s).

· Category: Standard

Customer Service – Availability:

Customer service availability will be 99% each month as measured by a mutually agreed upon Contractor Performance Monitoring Tool. Availability is defined as the network infrastructure at the Contractor Data Center for ARU and IVR services. Monthly availability is calculated for 24x7 x the number of days in the month less scheduled hours of maintenance.

Scheduled hours of availability shall exclude (1) scheduled outages for which the Contractor needs to perform, regular technical maintenance, other planned outages up to one (1) per month, or if equipment maintenance meets pre-arranged agreement or during upgrades.

In the event the Contractor provides customer service under the contract through a different provide, comparable availability will be maintained. Any change in the scheduled hours of availability needs to be approved by LA Metro, approval will not be unreasonably withheld. Contractor will pay liquidated damages to LA Metro for each month that the monthly Customer Service availability (with exceptions provided above) was not met.

· Category: High

Turnover File:

A file of active cardholders for each program will be made available to LA Metro by a secure website, in Microsoft Excel spreadsheet format by the close of the fifteenth business day after the contractor receives a written request from LA Metro to provide the report to the agency. Information to be included in the file includes cardholder name, relevant know your customer information,, address, unique cardholder identifier and current card status. If a file is not provided to LA metro within 15 business days of written request from LA Metro, and provided LA Metro notified contractor of intent to terminate the contract in accordance with language in the Agreement between the parties, contractor will pay liquidated damages.

· Category: Critical

Required Milestone To ensure timely delivery, transparency, and operational readiness for Mobility Wallet Phase 3, the Contractor shall meet all milestones listed below. Each milestone represents a required project checkpoint supporting program design, testing, launch, and reporting activities These milestones form the foundation of Metro’s performance management framework and are directly linked to the Fee Category schedule defined above: Standard, High, and Critical.

Dates are subject to change. Contractor may propose alternative milestones and deliverables schedules in the proposal.