Procurement Department
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IT Purchase Special Provisions 01-21-03

STATE MODEL
INFORMATION TECHNOLOGY
PURCHASE SPECIAL PROVISIONS
TO BE USED WITH THE GENERAL PROVISIONS - IT.  DEVELOP AND
INCLUDE A STATEMENT OF WORK
1 Liquidated Damages
a. General
In the event that the Contractor fails to deliver in accordance with the Contract requirements, the parties agree that the delay will interfere with the proper implementation of the State's programs, to the loss and damage of the State.  From the nature of the case, it would be impracticable and extremely difficult to fix the actual damages sustained in the event of any such delay. The State and Contractor, therefore, presume that in the event of any such delay the amount of damage which will be sustained from a delay will be the amounts set forth in the Statement of Work, and the State and the Contractor agree that in the event of any such delay, the Contractor shall pay such amounts as liquidated damages and not as a penalty. Amounts due the State as liquidated damages may be deducted by the State from any money payable to the Contractor. The State shall notify the Contractor in writing of any claim for liquidated damages pursuant to this paragraph on or before the date State deducts such sums from money payable to the Contractor.
b. Timing of Delivery
i) Contractor will be liable for any liquidated damages for late performance (including late delivery) specified in the Statement of Work if Contractor fails to provide any subject service or deliver any subject Deliverable, ready for use in substantial conformance with its specifications, on or before the Delivery Dates in the Statement of Work.  Unless otherwise specified in the Statement of Work:  (A) such liquidated damages will stand in lieu of all other damages for such late performance or nonperformance; and (B) if the Contractor fails to provide a software Deliverable listed in the Statement of Work by the specified Delivery Date, but provides suitable substitution of software acceptable to the State, liquidated damages shall not apply to the listed software Deliverable. 
ii) The State will pay additional monetary compensation for early performance to the extent specifically called for in the Statement of Work.
2 Title to Equipment
Unless otherwise specified in the Statement of Work, title to the Equipment shall remain in the Contractor and assigns, if any, until such time as successful acceptance testing has been achieved. Title to a special feature installed on a Machine and for which only a single installation charge was paid shall pass to the State at no additional charge, together with title to the Machine on which it was installed.
DGS Procurement Division PURCHASE SPECIAL PROVISIONS Page 1 01/21/03
STATE MODEL
INFORMATION TECHNOLOGY
PURCHASE SPECIAL PROVISIONS
3 Price Decline (Applicable to Third Party Contractors)
Prices quoted shall be the maximum for the contract period subject to any price escalation provisions reflected in the Statement of Work. However, should a price decline be announced by the manufacturer after contract award, but prior to a third party contractor taking title to the Equipment, and should the third party contractor be the recipient of this manufacturer's price decline, it shall be passed on in total to the State by the third party contractor.  Any interest, finance, or other charges based on the contract price will be recomputed using the original bid rates and the differences will also be passed to the State in total.
4 Price Decline (Applicable to Manufacturers)
Prices quoted shall be the maximum for the contract period subject to any price escalation provisions reflected in the Statement of Work. However, should a price decline be announced by the manufacturer after contract award, but prior to the State taking title to the Equipment, it shall be passed on in total to the State by the manufacturer.  Any interest, finance, or other charges based on the contract price will be recomputed using the original bid rates and the differences will also be passed to the State in total.
DGS Procurement Division PURCHASE SPECIAL PROVISIONS Page 2 01/21/03
 
 
Updated : 7/31/2007