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Page 5 of 13 <br />that all such amendments must be in writing. After a period of no less than 30 days subsequent to written <br />notice, unless sooner implementation is required by law, such amendments shall have the effect of <br />qualifying the terms of this Master Agreement and shall be binding upon the parties as if written herein. <br /> <br />C. Customers have the right to issue a change order to any purchase orders issued to the Contractor for the <br />purposes of clarification or inclusion of additional specifications, qualifications, conditions, etc. The <br />change order must be in writing and agreed upon by Contractor and the Customer agency prior to issuance <br />of any Change Order. A copy of the Change Order must be provided by the Contractor to, and <br />acknowledged by, H-GAC. <br /> <br />ARTICLE 22: CONTRACT ITEM CHANGES <br />A. If a manufacturer discontinues a contracted item, that item will automatically be considered deleted from <br />the contract with no penalty to Contractor. However, H-GAC may at its sole discretion elect to make a <br />contract award to the next lowest Respondent for the item, or take any other action deemed by H-GAC, at <br />its sole discretion, to be in the best interests of its Customers. <br /> <br />B. If a manufacturer makes any kind of change in a contracted item which affects the contract price, <br />Contractor must advise H-GAC of the details. H-GAC may allow or reject the change at its sole discretion. <br />If the change is rejected, H-GAC will remove the item from its program and there will be no penalty to <br />Contractor. However, H-GAC may at its sole discretion elect to make a contract award to the next lowest <br />Respondent for the item, or take any other action deemed by H-GAC, at its sole discretion, to be in the best <br />interests of its Customers. <br /> <br />C. If a manufacturer makes any change in a contracted item which does not affect the contract price, <br />Contractor shall advise H-GAC of the details. If the 'new' item is equal to or better than the originally <br />contracted item, the 'new' item shall be approved as a replacement. If the change is rejected H-GAC will <br />remove the item from its program and there will be no penalty to Contractor. However, H-GAC may at its <br />sole discretion elect to make a contract award to the next lowest Respondent for the item or may take any <br />other action deemed by H-GAC at its sole discretion, to be in the best interests of its Customers. <br /> <br />D. In the case of specifically identified catalogs or price sheets which have been contracted as base bid items <br />or as published options, routine published changes to products and pricing will be automatically <br />incorporated into the contract. However, Contractor must still provide thirty (30) calendar days written <br />notice and an explanation of the changes to products and pricing. H-GAC will respond with written <br />approval. <br /> <br />ARTICLE 23: CONTRACT PRICE ADJUSTMENTS <br />Price Decreases <br />If Contractor’s Direct Cost decreases at any time during the full term of this award, Contractor must immediately <br />pass the decrease on to H-GAC and lower its prices by the amount of the decrease in Direct Cost. (Direct Cost <br />means Contractor’s cost from the manufacturer of any item or if Contractor is the manufacturer, the cost of raw <br />materials required to manufacture the item, plus costs of transportation from manufacturer to Contractor and <br />Contractor to H-GAC. Contractor must notify H-GAC of price decreases in the same way as for price increases set <br />out below. The price decrease shall become effective upon H-GAC’s receipt of Contractor’s notice. If Contractor <br />routinely offers discounted contract pricing, H-GAC may request Contractor accept amended contract pricing <br />equivalent to the routinely discounted pricing <br /> <br />Price Increases <br />Contractors may request a price increase for items priced as Base Bid items and Published Options after twelve <br />(12) months from the bid opening date of the bid received by H-GAC. The amount of any increase will not exceed <br />actual documented increase in Contractor’s Direct Cost and will not exceed 10% of the previous bid price. <br />Considerations on the percentage limit will be given if the price increase is the result of increased tariff charges, or <br />other economic factors. <br /> <br />Price Changes <br />DocuSign Envelope ID: 477C45AE-B489-46C6-84F5-C1CB6A598105DocuSign Envelope ID: 7E694176-9E31-49DB-A1E4-AFB129905EB1