Common use of Reduction Clause Clause in Contracts

Reduction Clause. In the event of a product cost increase an escalation request will be reviewed by the State Purchasing Division on an individual basis. Please be aware this measure is not intended to allow any increase in profit margin, only to compensate for an actual cost increase. Price increases will only be considered concurrently with the Annual Extension of the Price Agreement and when the contractor provides proof from the manufacturer of the increase. Vendor must supply documentation from the Manufacture addressed to the vendor. The documentation must state that they are increasing the price from the factory to the vendor, as well as the reason for the increase. Price decreases as well shall apply. If the vendor’s prices are reduced for any reason, users shall receive the benefit of such reductions. Price increases and/or decreases will not be retroactive to orders already in-house or back-ordered. Orders will be filled at the price in effect of the date of the receipt of the order by the vendor. Increases due to bidding errors will be considered on a case-by-case basis. All requests for price increases must include the following information from the vendor: 1) Contract Item Number 2) Current Item Price 3) Proposed New Price and/or Percentage of Increase 4) Manufacturer/Supplier Notification of price increase indicating percentage of increase including reason for increase. Extension requests must be received at least 15 days prior to the expiration date of the Price Agreement. Any letters received after that will not be accepted. Postmarks do not count. Awarded vendor(s), upon request, shall furnish the User Agencies with a copy of the price schedule(s) and flat rate manuals, or relevant parts thereof, at no additional cost. Furthermore, the awarded vendor(s) shall insure that all work will be professionally diagnosed, and that maintenance repairs and/or adjustments will be performed only by factory trained and certified mechanics and/or ASE certified mechanics. Awarded vendor(s) shall have adequate manufacturers or commercially published repair and specifications manual(s) for all motor vehicles bid. Vendors bidding are cautioned that they must insure the user agencies that they have the capability and facilities to provide the services they are bidding. Vendors lacking the above may have their bid rejected or Statewide Price Agreement cancelled. The user agency reserves the right to inspect the prospective vendor's motor vehicle repair facility prior to and/or after making a recommendation of award, and anytime during the term of the agreement(s). Awarded vendors agree to provide services in accordance with instructions contained in this or any associated/attached documents, and only against specific orders in which the State Centralized Fleet Authority (SCFA) may place with the vendor during the term of this agreement. Cost of repairs and supply of parts, for work other than that authorized by the user agency will not be paid for unless prior approval is granted by the user agency. When applicable, all labor charges on the invoice will be broken down to indicate the number of hours consumed in performing specific tasks. All jobs quoted will be in conformance to national pricing guides such as those provided by All Data and ▇▇▇▇▇▇▇▇. In the event that a prospective vendor is not certified to conduct all automotive repairs or specializes in a particular automotive system, it is necessary that the prospective vendor indicate the maintenance and repair of specific automotive systems on attached list.

Reduction Clause. In Contractor shall keep discount fixed for at least the event first 12 full months of a product cost increase an escalation request will be reviewed by the this Agreement. Thereafter, State Purchasing Division (SPD) and the Contractor may adjust the discount, no more than once annually by via amendment. Contractor shall submit all discount adjustment requests to SPD in writing and provide substantiating evidence that each request is based on an individual basisdemonstrable market changes impacting the cost of food. Please be aware this measure is not intended The request must show all proposed increases by line item and include supporting documentation acceptable to allow SPD. SPD may require Contractor to provide U.S. Bureau of Labor Statistics Producer Price Index or Consumer Price Index data or any increase in profit margin, only to compensate for an actual cost increase. Price increases will only be considered concurrently with the Annual Extension of the Price Agreement and when the contractor provides proof from the other relevant manufacturer of or industry data substantiating the increase. Vendor must supply documentation from However, any adjusted percentage(s) may not produce a higher profit margin for Contractor than at the Manufacture addressed to beginning of the vendorinitial term of this Agreement. The documentation must state that they are increasing change in discount may not exceed 2% of the price from the factory to the vendor, as well as the reason for immediately before the increase. Price decreases as well shall applyChanges will apply to Contracts and amendments to Contracts entered on and after the effective date of the change. If the vendor’s 's prices are reduced for any reason, users shall receive the benefit of such reductions. Price increases and/or decreases Percentage adjustments will not be retroactive to orders already in-in house or back-orderedbackorders. Orders will be filled at the price and discount in effect of on the date of the receipt of the order by the vendor. Increases due to bidding errors will be considered on a case-by-case basis. All requests for price increases Local governments utilizing this Price Agreement must include the following information confirm pricing and availability from the vendor: 1) Contract Item Number 2) Current Item Price 3) Proposed New Price and/or Percentage of Increase 4) Manufacturer/Supplier Notification of price increase indicating percentage of increase including reason for increase. Extension requests must be received at least 15 days vendor prior to ordering. This Price Agreement may be utilized by all New Mexico state agencies, commissions, political subdivisions and local public bodies. Awarded vendors shall submit the expiration date name(s) of the their authorized contact person(s), in connection with placing orders. Each institution will place their own orders; and invoicing and payments are to be handled by each institution. Agencies and/or institutions shall provide awarded vendors with name(s) of contact personnel authorized to act as representative of their agencies, for of this Price Agreement. Any letters received after that will Deliveries are F.O.B.: destination, at times requested by using institutions. Pricing is based on current market list price less percentage discount offered from vendor’s established price list. Vendors are to indicate a discount percentage. If discount is 0%, then 0% must be indicated. This State Purchasing Division cannot assume a blank space is 0% discount. If your bid contains a blank space it may be accepteddeemed non-responsive and may be disqualified. Postmarks do not count. Awarded vendor(s), upon Upon request, shall furnish the User Agencies with a copy of the price schedule(s) and flat rate manuals, or relevant parts thereof, at no additional cost. Furthermore, the awarded vendor(s) shall insure that all work vendors will be professionally diagnosed, and that maintenance repairs and/or adjustments required to furnish facilities with the most recently published price list as a basis for ordering their requirements for their next delivery(ies). Vendors will be performed only by factory trained and certified mechanics and/or ASE certified mechanics. Awarded vendor(s) shall have adequate manufacturers or commercially published repair and specifications manual(s) for all motor vehicles bid. Vendors bidding are cautioned that they must insure the user agencies that they have the capability and facilities required to provide the services they are bidding. Vendors lacking the above may have their bid rejected or Statewide submit annual reports on quantity usage under this Price Agreement cancelled. The user agency reserves the right to inspect the prospective vendor's motor vehicle repair facility prior to and/or after making a recommendation of award, and anytime during the term of the agreement(s). Awarded vendors agree to provide services in accordance with instructions contained in this or any associated/attached documents, and only against specific orders in which the State Centralized Fleet Authority (SCFA) may place with the vendor during the term of this agreement. Cost of repairs and supply of parts, for work other than that authorized by the user agency will not be paid for unless prior approval is granted by the user agency. When applicable, all labor charges on the invoice will be broken down to indicate the number of hours consumed in performing specific tasks. All jobs quoted will be in conformance to national pricing guides such as those provided by All Data and ▇▇▇▇▇▇▇▇. In the event that a prospective vendor is not certified to conduct all automotive repairs or specializes in a particular automotive system, it is necessary that the prospective vendor indicate the maintenance and repair of specific automotive systems on attached listAgreement.