Liquidated Damages.docx

LIQUIDATED DAMAGES

1. It is the goal of the State to work in partnership with Vendor(s) to provide Medicaid services throughout the state in accordance with CMS requirements. In the event of a contractor’s unsatisfactory performance, default or breach without termination by the State, the State shall continue to work with Vendor(s) using the Contract Administration Plan, and the contractor shall correct such unsatisfactory performance, default or breach as defined by the Plan. The State shall, if it deems such correction unsatisfactory or not made in accordance with the Plan, without waiver of their rights to termination or utilization of other remedies, require the contractor to pay a liquidated damage retroactive to the original notice date under the Plan until it is corrected.

1.1 Liquidated damages may be set-off against consideration due.

1.2 In the event a scheduled deliverable is not received or is reasonably rejected by the State, the State may impose liquidated damages. Damages would accrue from the date of non-receipt or rejection of such deliverable by the State.

1.3 Payment of any liquidated damages specified anywhere within this RFP will not relieve the contractor from its obligation to meet the requirements established by the contractor’s response to this RFP.

2. Liquidated Damages – Generally

2.1 Liquidated damages may be imposed up to $5,000 per calendar day. Liquidated Damages may be imposed if there is substantial documentary evidence that failure to achieve the specified performance requirement is the primary (50% or more) fault of the contractor and/or its subcontractors. The imposition of liquidated damages does not foreclose the State’s ability to additionally seek specific damages if necessary.

2.2 For the purposes of liquidated damages, the number of days that the State causes a deliverable to be late due to a State failure to meet contractual review time deadlines or other contractually required input from the State will be added to the contractor's deliverable due date.

3. Operational Performance Requirements

3.1 The following liquidated damages relate to critical contractor responsibilities throughout the duration of the contract. Damages are defined for the following performance areas and respective RFP requirements:

3.1.1 Timeliness of claims processing and weekly Financial cycles;

3.1.2 System availability and response time;

3.1.3 Minimum file update processing cycles;

3.1.4 Timeliness and accuracy of report production;

3.1.5 MMIS recipient eligibility reporting file update processes;

3.1.6 EVS (voice response and automated) availability;

3.1.7 Timeliness and accuracy of data extracts, e.g., data warehouse, DSS, data transfers, and interface files;

3.1.8 Timely and accurate system maintenance and enhancements;

3.1.9 MMIS operations, including but not limited to operations-related scopes of work within this RFP, specifically those that result in a fiscal impact to the State, and;

3.1.10 Business resumption and periodic testing.