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DocuSign Envelope ID:7E694176-9E31-49DB-A1E4-AFB129905EB1 <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 /> 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 /> 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 /> 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 /> 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 /> 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 /> 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 /> 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 /> Price Changes <br /> Page 5 of 13 <br />