ADMINISTRATIVE FEE / USAGE Clause Samples
The Administrative Fee / Usage clause defines the charges or fees imposed for administrative services or the use of certain resources or facilities. Typically, this clause outlines the specific circumstances under which such fees are assessed, the amount or method of calculation, and the payment terms. For example, it may apply to processing paperwork, accessing shared equipment, or utilizing support services. Its core function is to ensure transparency regarding additional costs and to allocate responsibility for covering administrative expenses, thereby preventing disputes over unexpected charges.
ADMINISTRATIVE FEE / USAGE. 4.1. Contractor shall assess an administrative fee in the amount of one (1%) against all contract sales to members of the State Purchasing Cooperative – including cities, counties, school districts and other qualified members. The administrative fee is calculated against all sales under this contract minus any taxes or regulatory fees, minus any returns or credits, and minus any shipping charges not already included in the unit prices. An updated list of State Purchasing Cooperative members may be found at ▇▇▇▇://▇▇▇.▇▇.▇▇▇/Cooperative_Procurement/SPC/default.asp. At its option, the State may expand the applicability of this fee. The State shall provide thirty (30) written notice prior to exercising or changing this option.
4.2. Contractors shall submit a Quarterly Usage Report documenting all contract sales. For more information on the Quarterly Usage Report or the Administrative Fee, its calculation, submission or use, and the proper Usage Report Forms see the State Procurement Office’s web site at ▇▇▇▇://▇▇▇.▇▇.▇▇▇/Contractor_Resources/Admin_Fee/default.asp. Any alternate Quarterly Usage Report format shall be approved by the Procurement Officer. Any usage report that is submitted to the State for the purpose of satisfying this requirement shall be deemed public record and all information contained in such report shall not be considered confidential, including any supplemental information contained in the submitted report beyond that which is requested in the Sample Forms located at the State Procurement Office Web Site.
4.3. The Administrative Fee shall be submitted, along with a Quarterly Usage Report to the State Procurement Office within thirty (30) days following the end of each calendar quarter. Administrative Fees shall be submitted to the following address: Arizona Department of Administration State Procurement Office Attention: 'Statewide Contract Administrative Fee' ▇▇▇ ▇. ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇ ▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
4.4. The submission schedule for Administrative Fees and Usage reports shall be as follows: July through September (FY Q1) – Due October 31 October through December (FY Q2) – Due January 31 January through March (FY Q3) – Due by April 30 April through June (FY Q4) – Due by July 31
4.5. The Administrative Fee shall be a part of the Contractor’s unit prices and is not to be charged directly to the customer in the form of a separate line item. Statewide contracts shall not have separate prices for State Agency customers and State Purchas...
ADMINISTRATIVE FEE / USAGE. Contractor shall pay an Administrative Fee to the State in the amount of one percent (1%) of the total contract sales. The Administrative Fee is calculated based on all sales transacted under the contract, minus all taxes and any returns or credits. The Administrative Fee shall not be charged directly to the customer, e.g., as a separate line item, a fee or a surcharge, but shall be included in the contract’s unit prices.
ADMINISTRATIVE FEE / USAGE. 3.1 If the Special Terms and Conditions indicate that the Contract is for statewide use, then the following provisions apply:
1. Contractor shall verify if an ordering entity is a bona fide Co-Op Buyer before selling Materials to or providing Services for them under the Contract. The current list of Co-Op Buyers is available on the State Procurement Office website: ▇▇▇▇▇://▇▇▇.▇▇.▇▇▇/procurement-services/cooperative-procurement/state-purchasing-cooperative
2. Contractor shall sell to Co-Op Buyers at the same price and on the same lead times and other terms and conditions under which it sells to Eligible Agencies, with the sole exception of any legitimately additional costs for extraordinary shipping or delivery requirements if the Co-Op Buyer is having Materials delivered or installed or Services performed at locations not contemplated in the contracted pricing (e.g. delivery to a location outside Arizona).
3. Contractor shall pay State an administrative fee against all Contract sales to Co-Op Buyers, as provided for under A.R.S. § 41-2633. The fee rate is specified in the Special Terms and Conditions. Failure to remit the administrative fees is a material breach of contract, and will entitle State to its remedies under Article 8 and its right to terminate for default under Article 9. Method of calculation, payment procedures, and other details are provided on the State Procurement Office website: ▇▇▇▇▇://▇▇▇.▇▇.▇▇▇/contractor-resources/statewide-contracts-administrative-fee
4. Contractor shall submit to State a quarterly usage report documenting all Contract sales to both Eligible Agencies and Co-Op Buyers, itemized separately. Contractor shall further itemize divisions, groups or areas within a given Eligible Agency if they place Orders independently of each other. Failure to submit the report is a material breach of contract, and will entitle State to its remedies under Article 8 and its right to terminate for default under Article 9. Contractor shall submit the report using the forms and following the instructions on the State Procurement Office website:
3.2 Contractor shall acknowledge each Order from Eligible Agencies within 1 (one) business day after receipt by either: