Common use of Performance Guarantees Clause in Contracts

Performance Guarantees. 1. Contractor shall offer competitive and aggregate Performance Service Guarantees values in which its organization takes full financial risk for unsatisfied guarantees. 2. Contractor shall place annual penalties at risk for successfully maintaining Service Performance Guarantees as set forth in Attachment D. The County reserves the right to allocate the percent of the penalties at risk for each performance guarantee with no more than 20% allocated to any one performance standard. Additionally, the County requires the ability to re-allocate the amount at risk for each performance standard on an annual basis, with 30 days notification prior to the measurement period start date. 3. Guarantees shall be reported according to the appropriate measurement either the County-specific or BOB. Reports shall show actual results for the current period versus: (a) prior periods and (b) the guaranteed standard. The County shall not be responsible for requesting reports. 4. Contractor agrees that member satisfaction, account satisfaction, network access and system availability shall be measured and reported to the County within 60 days of each calendar year. All other service performance guarantees shall be measured and reported directly to the County within 60 days from the close of each quarter. 5. When performance issues are identified, Contractor will agree to provide a corrective action plan within 72 hours of identification of the issue. Once agreed to by the County, the actions and timelines will be adhered to. 6. Penalties associated with Performance Guarantees shall be reported and reconciled 60 days from the end of the Contract year and penalties, if any, shall be based on annual aggregate results and paid within 90 days after the end of the Contract year, and the County will not be required to request payment. 7. Penalties, if any, shall be paid annually based upon annual aggregated results no later than 90 days after the end of the Contract year Annually, County will select a sampling of performance guarantees and request detailed back-up documentation to validate results. If Contractor failed to make timely penalties payment, than all monies due to County for Contractor’s failure to meet a Performance Standard set forth below shall be automatically deducted from any monies due or owing to Contractor from County. 8. The service performance standards indicating Book of Business (BOB) shall be measured by the Contractor for all Contractor customers utilizing the same process platform. 9. Contractor agrees that all reporting provided to the County will include the County's aggregated plan experience unless the County requests reporting to be segregated by business unit or plan. 10. Annually, County will select a sampling of performance guarantee results for validation, and Contractor shall provide detailed back-up documentation to County within sixty (60) days of County’s request.

Performance Guarantees. Contractor shall: 1. Contractor shall offer Offer competitive and aggregate Performance Service Standard Guarantees values in which its it's organization takes full financial risk for unsatisfied guarantees. 2. Contractor Agree that all performance guarantees, except system availability, shall place annual penalties at risk for successfully maintaining Service Performance Guarantees as set forth in Attachment D. The County reserves be measured and reported based on the right to allocate the percent of the penalties at risk for each performance guarantee with no more than 20% allocated to any one performance standard. AdditionallyCounty’s specific data, the County requires the ability to re-allocate the amount at risk for each performance standard on an annual basis, with 30 days notification prior to the measurement period start dateunless otherwise noted. 3. Guarantees shall be reported Report guarantees according to the appropriate measurement either the County-specific or BOBbook- of-business, as agreed to by the County. Reports shall show actual results for the current period versus: (a) prior periods and (b) the guaranteed standard. The County shall not be responsible for requesting reports. 4. Contractor agrees Place annual penalties at risk for successfully maintaining Service Performance Guarantees as set forth in Bid Form 6. The County reserves the right to allocate the total amount at risk among the various performance categories, with no more than 20% of the total amount allocated to any one guarantee. The County is not obligated to allocate an amount at risk for each and every performance metric; some may have $0 at risk. 5. Be required to allow the County the flexibility to allocate the total amount at risk among the various performance categories outlined in this RFP at least 30 days prior to the start of each contract year. 6. Agree that member satisfaction, account satisfaction, network access and system availability shall be measured and reported to the County within 60 45 days of each calendar year. All other service performance guarantees shall be measured and reported directly to the County within 60 45 days from the close of each quarter. 57. When Provide a response that discloses any/all proposed nuances to the proposed performance issues are identified, guarantees and Contractor will agree pay/credit the specified penalty amount to provide a corrective action plan within 72 hours of identification the County if the stated performance guarantee is not met. 8. Pay penalties, if any, annually based upon annual aggregated results no later than 90 days after the end of the issueContract year. Once agreed Annually, County will select a sampling of performance guarantees and request detailed back-up documentation to by validate results. If Contractor failed to make timely penalties payment, then all monies due to County for Contractor’s failure to meet a Performance Standard set forth below shall be automatically deducted from any monies due or owing to Contractor from County. 9. Agree that the County will select, annually, a sampling of performance guarantee results for validation, and Contractor shall provide detailed back-up documentation to County within sixty (60) days of County's request. 10. Agree that all reporting provided to the County will include the County, 's aggregated plan experience unless the actions and timelines will County requesting reporting to be adhered tosegregated by business unit or plan. 611. Penalties Shall report and reconcile penalties associated with Performance Guarantees shall be reported and reconciled performance guarantees 60 days from the end of the Contract year and penalties, if any, shall be based on annual aggregate results and paid within 90 days after the end of the Contract year, and the County will not be required to request payment. 712. Penalties, if any, shall be paid annually based upon annual aggregated results no later than 90 days after the end Contractor will agree to provide a corrective action plan within 72 hours of identification of the Contract year Annuallyissue, County when performance issues are identified. Once agreed to by the County, the actions and timelines will select a sampling of performance guarantees be adhered to. 13. Agree that payments for Missed Guideline represent County's sole and request detailed back-up documentation to validate results. If Contractor failed to make timely penalties payment, than all monies due to County exclusive remedy for Contractor’s failure to meet a Performance Standard any Guideline set forth below shall herein. Any such performance failure will not be automatically deducted from any monies due or owing deemed a material breach that gives County right to Contractor from Countyterminate under the breach of contract article of this Contract. 814. The service performance standards indicating Book of Business (BOB) shall be measured by the Contractor for all Contractor customers utilizing the same process platform. 9. Contractor agrees that all reporting provided Agree to the County will include use the County's aggregated plan experience unless ’s provided scorecard (see Attachment E) to rate the County requests reporting to be segregated by business unit or planperformance of the account management team on a quarterly basis. 10. Annually, County will select a sampling of performance guarantee results for validation, and Contractor shall provide detailed back-up documentation to County within sixty (60) days of County’s request.

Performance Guarantees. A. County shall require performance guarantees and penalties, as specified in this Paragraph V, from Contractor to ensure minimum standards are met during the term of this Contract. 1. County’s MSI or BHS Program Managers shall provide Contractor written notice of Contractor’s failure or inability to meet the specific standard(s) as set forth in this Performance Guarantee paragraph, with a copy to the HCA Administrator. a. County must report any potential errors or discrepancies it identifies for the applicable Measurement Period, including those not included in the performance guarantee report package, to Contractor within thirty (30) days from date Contractor delivers the fourth quarter report package to County. b. Any errors or discrepancies reported outside this thirty (30) day reporting period will be excluded from all performance guarantee determinations for the applicable Measurement Period. 2. Unless otherwise directed by the MSI Program Manager or the BHS Program Manager, penalty amounts deemed shall be shown as credits on the applicable invoice(s) for the MSI Program and/or the BHS Program. 3. The total amount at risk for Contractor for performance guarantees is limited to 50% of each Program’s total annual claims administration fees, per calendar year. a. Contractor shall provide County a quarterly performance guarantee report of Contractor’s performance on the Performance Standards. Calculations that result in non-whole number values (i.e. ending 0.01 – 0.99) will be rounded to the nearest whole number using traditional rounding logic (0.00 – 0.49 round down and 0.5 - .0.99 round up). b. Notwithstanding any other provision of this Contract, the parties acknowledge and agree County’s remedy for Contractor’s failure to meet its Performance Standards is limited to the payment amounts listed below. Any Claim eligible for payment under one Performance Standard is not under any circumstance eligible for a payment under any other Performance Standard or otherwise eligible for a remedy under any other provisions of this Contract. c. Amounts at risk for Contractor shall not exceed 20% for any one performance category as identified below. d. Should the performance guarantee be met for either the MSI or BHS Program following any calendar year, additional penalties shall not be taken against any balance remaining for the other Program. 4. Performance guarantees shall be subject to Paragraph T of this Contract. B. The performance guarantees shall each be measured monthly and reported quarterly for the purpose of Contractor taking corrective action, and reconciled annually by the Parties on a calendar year basis, with the first period commencing from October 1, 2012. 1. Contractor shall offer competitive and aggregate Performance Service Guarantees values in which its organization takes full financial risk for unsatisfied guaranteessubmit the quarterly reports to the HCA Administrator no later than sixty (60) days following the end of the quarter with corresponding copies to each Program Manager. 2. Contractor shall place submit the annual penalties at risk for successfully maintaining Service Performance Guarantees as set forth in Attachment D. The County reserves the right to allocate the percent of the penalties at risk for each performance guarantee with no more than 20% allocated to any one performance standard. Additionally, the County requires the ability to re-allocate the amount at risk for each performance standard on an annual basis, with 30 days notification prior reports to the measurement period start date. 3. Guarantees shall be reported according to the appropriate measurement either the County-specific or BOB. Reports shall show actual results for the current period versus: HCA Administrator no later than ninety (a90) prior periods and (b) the guaranteed standard. The County shall not be responsible for requesting reports. 4. Contractor agrees that member satisfaction, account satisfaction, network access and system availability shall be measured and reported to the County within 60 days of each calendar year. All other service performance guarantees shall be measured and reported directly to the County within 60 days from the close of each quarter. 5. When performance issues are identified, Contractor will agree to provide a corrective action plan within 72 hours of identification of the issue. Once agreed to by the County, the actions and timelines will be adhered to. 6. Penalties associated with Performance Guarantees shall be reported and reconciled 60 days from following the end of the Contract calendar year and penalties, if any, with corresponding copies to each Program Manager. a. With the exception of the first calendar year period which shall be from October 1, 2012 through December 31, 2012, the annual performance level shall be calculated based on annual the twelve (12) month aggregate, or portion thereof as adjusted for the commencement and termination of this Contract, each calendar year this Contract is in effect. b. The Parties agree that the aggregate results guarantees will be calculated and paid within 90 days after separately for the end MSI Program and the BHS Program. c. If the performance guarantees are effective for less than a full calendar year, the payment amounts will be prorated for the portion of the Contract year, and the County will not be required to request paymentMeasurement Period. 7. Penalties, if any, shall be paid annually based upon annual aggregated results no later than 90 days after the end of the Contract year Annually, County will select a sampling of performance guarantees and request detailed back-up documentation to validate results. If Contractor failed to make timely penalties payment, than all monies due to County for Contractor’s failure to meet a Performance Standard set forth below shall be automatically deducted from any monies due or owing to Contractor from County. 8. The service performance standards indicating Book of Business (BOBd. No claim(s) shall be measured by the Contractor eligible for all Contractor customers utilizing the same process platformpayment in more than one Measurement Period. 9. Contractor agrees that all reporting provided to the County will include the County's aggregated plan experience unless the County requests reporting to be segregated by business unit or plan. 10. Annually, County will select a sampling of performance guarantee results for validation, and Contractor shall provide detailed back-up documentation to County within sixty (60) days of County’s request.