Common use of Order Accuracy Clause in Contracts

Order Accuracy. The Contractor shall maintain an order accuracy rate of 98% or greater. The order accuracy rate is calculated as 1 minus the sum of mishipped Products divided by the total sum of Products ordered. The Contractor shall submit to the Department the monthly report in Microsoft Excel that details the order accuracy rate. Example: 1 minus 6 mishipped products divided by 600 products orders = 99%. Financial Consequences The Contractor is required to meet the deliverables listed in Section 4.3. The Contractor is required to meet minimum service levels on standard contract orders only, special/custom orders are excluded. Failure to meet the specified deliverables will result in the financial consequences to the State as shown in the chart below. Deliverable First Failure Second Failure Third Failure Fourth Failure Fifth Failure* Each Additional Failure Submission of required reports $0 $500 $500 $1,000 $2,000 $3,000 Delivery Timing Less than 95% on time $0 $500 $1,000 $1,000 $2,000 $3,000 Order Filled and Delivered Less than 98% filled and delivered $0 $500 $1,000 $1,000 $2,000 $3,000 Order Accuracy Less than 98% accurate $0 $500 $1,000 $1,000 $2,000 $3,000 *If the Contractor fails to meet the deliverables five or more times in a 12 month contract period, the State shall have grounds to initiate contract breach and termination proceedings. The financial consequences will be paid via check or money order and made out to the Department of Management Services in US Dollars within 30 calendar days after the required report submission date. These consequences are individually assessed for failures over each 12 month period beginning with the first full month of contract performance and every 12 months thereafter.