2004/03/10 Council Agenda Packet

5 III SPECIAL TERMS AND CONDITIONS. During the contract period, any price declines at the manufacturer's level or cost reductions to Contractor shall be reflected in a reduction of the contract price retroactive to Contractor's effective date. During the term of this contract, should the contractor enter into pricing agreements with other customers providing greater benefits or lower pricing, contractor shall immediately extend such pricing to the users of this contract. Contractor shall immediately notify the state of any such contracts entered If, after award,pricing in place is found to have risen in relation to the benchmark agreed to at Award, and defined by the Contract Administrator, the Contractor will be required to adjust pricing to return it to Award criteria. In such cases, the contractor will be directed to provide a report of sales falling outside Award criteria. Following an evaluation of this report, and a meeting with the Contractor, the Contract Administrator will determine and direct the Contractor in the fashion and degree of compensation or adjustment. If a request is made for an increase in markup or other pricing criteria, the request must be accompanied by evidence of underlying increases in costs, or factors new to the activity since the bid was performed. Establishing, and documenting such increases will be the sole responsibility of the Contractor. Responses to such requests will be at the sole discretion of the Contract Administrator. 8 PROMOTIONAL ITEM LIST The Contractor will develop a file of up to 250 promotional items to be used to take advantage of market promotions. This may be either a list of up to 250 items developed and maintained in coordination between the Contractor and the Contract Administrator, or chosen by the Contract Administrator. Four times a year the state will review, revise and refresh this list. 9 BULK BUY The state seeks the ability to buy large quantities of some items occasionally, for immediate or delayed distribution. The state may seek additional discount in Bulk Buy cases. When Bulk Buy inquiries are made by a client, the Contractor may extend lower pricing based on economy of scale factors. The state, or client,will test the marketplace to establish prevailing costs. If lower costs can be found elsewhere, the state reserves the right for clients to place orders with the market to satisfy needs. 10 WEB-SITE Corporate Express will provide a free standing Web site,with search engine and a favorite market basket. The site has a secure user log-on and client recognition module, displays pricing, and product selection appropriate to the user's product qualification profile, on-line order placement, billing, receiving and payment. It also provides on-line order status look-up, and payable status look-up. 39 C:\Documents and Settings\DBryant\Local Settings\Temporary Internet Files\OLK3 8\2004OfficeSupplies.doc