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<br />96 SECTION 6: ATTACHMENTS | 2014_0122
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<br />Massachusetts Statewide Contract Administration Fee
<br />Introduction:
<br />This Statewide Contract is subject to a 1% Contract Administration Fee, which is created pursuant to MGL c. 7, § 3B, 801 CMR 4.02 and the
<br />Transaction Fee section in this solicitation and/or incorporated by reference into Statewide Contracts with the Operational Services Division (OSD).
<br />The price stated in any Bidder’s bid price and any Contractor’s Statewide Contract shall be inclusive of this fee and Contractors shall not reflect this
<br />fee as a separate line item on customer invoices.
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<br />This fee will be based on 1% of the total dollar amounts, adjusted for credits or refunds, paid by Eligible Entities to the Statewide Contractor based
<br />on your statewide contract. Eligible entities include, but are not limited to: a) Cities, towns, districts, counties and other political subdivisions; b)
<br />Executive, Legislative and Judicial Branches, including all departments and elected offices therein; c) Independent public authorities, commissions,
<br />and quasi-public agencies; d) Local public libraries, public school districts, and charter schools; e) Public hospitals owned by the Commonwealth; f)
<br />Public institutions of higher education; g) Public purchasing cooperatives; h) Non-profit, UFR-certified organizations that are doing business with the
<br />Commonwealth; i) Other states and territories with no prior approval by the State Purchasing Agent required; and j) Other entities when designated in
<br />writing by the State Purchasing Agent. For a list of other entities that are eligible to use your specific Statewide Contract, please check the Issuers
<br />Tab for each Solicitation or Contract on Comm-PASS at www.comm-pass.com.
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<br />Note that if the 1% Administration Fee is deductible as a business expense for federal income tax purposes, it is also deductible as an expense for
<br />Massachusetts tax purposes.
<br />Quarterly Fee Payment:
<br />For each Payment Period, Contractor shall pay to OSD a Fee equal to one percent (1%) of the total payments (adjusted for credits or refunds)
<br />received from all Eligible Entities that have purchased from the Contractor pursuant to this Agreement. All payments will be based on full calendar
<br />quarters (Payment Periods) and must be received by OSD on or before 45 days after the last day of the Payment Period (as specified below) or a
<br />contractor will be considered in breach of contract:
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<br />Quarter Payment Period Quarterly Payment Due Date
<br />First Quarter January 1st – March 31st May 15th
<br />Second Quarter April 1st – June 30th August 15th
<br />Third Quarter July 1st – September 30th November 15th
<br />Fourth Quarter October 1 – December 31st February 15th
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<br />Quarterly payment will include any periods less than a full calendar quarter if a contract does not start at the first day of a quarter or end on the last
<br />day of the quarter.
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<br />Payments are to be made by check made payable to the “Operational Services Division, Comm. of Mass.” and mailed to: Operational Services
<br />Division, Attn: Contract Admin. Fee, One Ashburton Place, Room 1017, Boston, MA, 02108. Please include the following information in the memo
<br />field of each check: 1) “Contract Administration Fee”, 2) the Statewide Contract Number and 3) your Commonwealth of Massachusetts Vendor Code
<br />(VC) number. Please do not list social security numbers on the check. If the total Administration Fees due for the Payment and Reporting Period
<br />(see section III below) are less than $50, a Statewide Contractor may carryover that balance to the next Payment and Reporting Period until the
<br />cumulative amount owed is $50 or greater.
<br />Quarterly Reporting:
<br />Contractor shall submit one Statewide Contractor Administration Fee Report for each Statewide Contract for each Payment Period, even if no
<br />payment is due for the Payment Period. The Statewide Contractor Administration Fee Report for the applicable payment period must be completely
<br />filled out and signed by the Statewide Contractor under pains and penalties of perjury.
<br />Audit:
<br />During the term of this Agreement and for a period of six years thereafter, the Operational Services Division, its auditors, the Office of the Inspector
<br />General or other authorized representatives shall be afforded access at reasonable times to Contractor's accounting records, including sales
<br />information on any system, reports or files, in order to audit all records relating to goods sold or services performed pursuant to this Agreement. If
<br />such an audit indicates that Contractor has materially underpaid OSD, then the Contractor shall remit the underpayment and be responsible for
<br />payment of any costs associated with the audit.
<br />Other Terms:
<br />a. Contractors are responsible for compliance with all other contract reporting requirements including, but not limited to, contract detailed spend,
<br />Supplier Diversity Program (SDP) and other contract reports, as required by this contract.
<br />b. All amounts payable by the Contractor to OSD under this Agreement that are late and not received by the due date specified shall bear simple
<br />interest from the date due until paid. The Late Payment Interest Rate is set by the Office of the State Comptroller on an annual basis and can be
<br />found by clicking on the fiscal year in question on the Comptroller’s Fiscal Year Updates webpage.
<br />c. In the event of the Contractor’s breach of this policy including, but not limited to, non-reporting, non-payment, late reporting/payment, under-
<br />reporting/payment, the Commonwealth reserves the right to pursue any and all recourse and penalties available including, but not limited to,
<br />imposing of penalties of up to 10% of the amount in question or $500, whichever is greater, contract suspension, payment intercept and contract
<br />termination. The Commonwealth is allowed to suspend, terminate or debar pursuant to Massachusetts General Laws Chapter 29, Section 29F,
<br />as amended, and pursuant to Section 4 of the Commonwealth Terms and Conditions. In addition, in the event the Contractor fails to make any
<br />payment when due, the Contractor shall be liable to the Commonwealth for all expenses, court costs, and attorneys' fees (including inside
<br />counsel) incurred in enforcing the terms and conditions of this Agreement.
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