ࡱ>  %' !"#$ =bjbj΀ ;,11S>S>S>S>S>d>>>g?<A>iSjb4ccc0e6zfL#Zi\i\i\i\i\i\i7mo\iS>Zd@0eZZ\iS>S>ccqiZFS>cS>cZiZZi"c&ic~m> :hvFii0ihv[pp[p&i[pS>&i ZZZZZZZ\i\iZZZiZZZZ[pZZZZZZZZZ1 =: Department of Management ServicesDivision of State Purchasing Phone 850-488-8440 4050 Esplanade Way, Suite 380 Fax: 850-414-6122 Tallahassee, FL 32399 Human Resources, Benefits and Payroll Administration Services Contract By and Between Convergys Customer Management Group Inc. and The Department of Management Services TABLE OF CONTENTS  TOC \h \z \t "Subtitle,2,Chapter Title,1,Endnote Text,1"  HYPERLINK \l "_Toc17347588" Definitions  PAGEREF _Toc17347588 \h 1  HYPERLINK \l "_Toc17347589" 1.1 Definitions.  PAGEREF _Toc17347589 \h 1  HYPERLINK \l "_Toc17347590" 1.2 Rules of Interpretation.  PAGEREF _Toc17347590 \h 3  HYPERLINK \l "_Toc17347591" 1.3 Hierarchy of Documents.  PAGEREF _Toc17347591 \h 3  HYPERLINK \l "_Toc17347592" Scope of Work  PAGEREF _Toc17347592 \h 4  HYPERLINK \l "_Toc17347593" 2.1 General Information  PAGEREF _Toc17347593 \h 4  HYPERLINK \l "_Toc17347594" 2.2 Deliverables.  PAGEREF _Toc17347594 \h 5  HYPERLINK \l "_Toc17347595" 2.3 Services, Activities and Tasks.  PAGEREF _Toc17347595 \h 9  HYPERLINK \l "_Toc17347596" 2.4 State Information and Access.  PAGEREF _Toc17347596 \h 31  HYPERLINK \l "_Toc17347597" 2.5 Failure to Meet Due Dates.  PAGEREF _Toc17347597 \h 31  HYPERLINK \l "_Toc17347598" 2.6 Support Resources.  PAGEREF _Toc17347598 \h 32  HYPERLINK \l "_Toc17347599" 2.7 Systems and Telecommunications.  PAGEREF _Toc17347599 \h 32  HYPERLINK \l "_Toc17347600" 2.8 Performance Metrics.  PAGEREF _Toc17347600 \h 34  HYPERLINK \l "_Toc17347601" 2.9 Hours of Service Provider Operations.  PAGEREF _Toc17347601 \h 43  HYPERLINK \l "_Toc17347602" Contract Administration  PAGEREF _Toc17347602 \h 44  HYPERLINK \l "_Toc17347603" 3.1 Contract Management  PAGEREF _Toc17347603 \h 44  HYPERLINK \l "_Toc17347604" 3.2 Change Orders.  PAGEREF _Toc17347604 \h 45  HYPERLINK \l "_Toc17347605" 3.3 Warranty Disclaimer  PAGEREF _Toc17347605 \h 46  HYPERLINK \l "_Toc17347606" 3.4 Employees.  PAGEREF _Toc17347606 \h 46  HYPERLINK \l "_Toc17347607" 3.5 Acceptance.  PAGEREF _Toc17347607 \h 47  HYPERLINK \l "_Toc17347608" FINANCIAL MANAGEMENT  PAGEREF _Toc17347608 \h 48  HYPERLINK \l "_Toc17347609" 4.1 Price and Payment Stream  PAGEREF _Toc17347609 \h 48  HYPERLINK \l "_Toc17347610" 4.2 Cost Reduction Proposals.  PAGEREF _Toc17347610 \h 48  HYPERLINK \l "_Toc17347611" 4.3 Payment upon Termination.  PAGEREF _Toc17347611 \h 49  HYPERLINK \l "_Toc17347612" 4.4 Audit Rights.  PAGEREF _Toc17347612 \h 49  HYPERLINK \l "_Toc17347613" 4.5 Performance Bond.  PAGEREF _Toc17347613 \h 50  HYPERLINK \l "_Toc17347614" 4.6 Invoicing and Payment.  PAGEREF _Toc17347614 \h 50  HYPERLINK \l "_Toc17347615" One Florida  PAGEREF _Toc17347615 \h 52  HYPERLINK \l "_Toc17347616" 5.1 Utilization of Small Business Concerns.  PAGEREF _Toc17347616 \h 52  HYPERLINK \l "_Toc17347617" 5.2 Service Providers Commitment.  PAGEREF _Toc17347617 \h 52  HYPERLINK \l "_Toc17347618" 5.3 Minorities and Woman-Owned Business Enterprises.  PAGEREF _Toc17347618 \h 52  HYPERLINK \l "_Toc17347619" Insurance  PAGEREF _Toc17347619 \h 53  HYPERLINK \l "_Toc17347620" 6.1 Insurance Coverage.  PAGEREF _Toc17347620 \h 53  HYPERLINK \l "_Toc17347621" 6.2 Subcontractor Provider Insurance Coverage.  PAGEREF _Toc17347621 \h 54  HYPERLINK \l "_Toc17347622" 6.3 Proof of Insurance.  PAGEREF _Toc17347622 \h 54  HYPERLINK \l "_Toc17347623" 6.4 Deductible Amounts.  PAGEREF _Toc17347623 \h 54  HYPERLINK \l "_Toc17347624" 6.5 Self Insurance.  PAGEREF _Toc17347624 \h 54  HYPERLINK \l "_Toc17347625" Term, Termination and Default  PAGEREF _Toc17347625 \h 55  HYPERLINK \l "_Toc17347626" 7.1 Term/Renewal.  PAGEREF _Toc17347626 \h 55  HYPERLINK \l "_Toc17347627" 7.2 Party's Right of Termination.  PAGEREF _Toc17347627 \h 55  HYPERLINK \l "_Toc17347628" 7.3 Right to Equitable Relief  PAGEREF _Toc17347628 \h 55  HYPERLINK \l "_Toc17347629" 7.4 Events of Default  PAGEREF _Toc17347629 \h 56  HYPERLINK \l "_Toc17347630" 7.5 Opportunity to Cure Default  PAGEREF _Toc17347630 \h 57  HYPERLINK \l "_Toc17347631" 7.6 Consequences of Termination in the Event of Service Providers Default:  PAGEREF _Toc17347631 \h 57  HYPERLINK \l "_Toc17347632" 7.7 Consequences in the Event of Termination for Reasons Other Than Service Providers Default or Expiration of the Contract Term  PAGEREF _Toc17347632 \h 58  HYPERLINK \l "_Toc17347633" 7.8 Rights Cumulative, No Waiver.  PAGEREF _Toc17347633 \h 59  HYPERLINK \l "_Toc17347634" 7.9 Department May Cure Service Provider Defaults.  PAGEREF _Toc17347634 \h 59  HYPERLINK \l "_Toc17347635" 7.10 Third Party Satisfaction.  PAGEREF _Toc17347635 \h 59  HYPERLINK \l "_Toc17347636" 7.11 Transfer of Certain Assets.  PAGEREF _Toc17347636 \h 60  HYPERLINK \l "_Toc17347637" Dispute Resolution  PAGEREF _Toc17347637 \h 61  HYPERLINK \l "_Toc17347638" 8.1 Overview.  PAGEREF _Toc17347638 \h 61  HYPERLINK \l "_Toc17347639" 8.2 Executive Level Negotiations.  PAGEREF _Toc17347639 \h 61  HYPERLINK \l "_Toc17347640" 8.3 Informal Negotiations.  PAGEREF _Toc17347640 \h 61  HYPERLINK \l "_Toc17347641" 8.4 Formal Negotiations.  PAGEREF _Toc17347641 \h 61  HYPERLINK \l "_Toc17347642" 8.5 Mediation.  PAGEREF _Toc17347642 \h 62  HYPERLINK \l "_Toc17347643" 8.6 Obligation to Mediate.  PAGEREF _Toc17347643 \h 62  HYPERLINK \l "_Toc17347644" 8.7 Performance To Continue.  PAGEREF _Toc17347644 \h 62  HYPERLINK \l "_Toc17347645" 8.8 Confidentiality.  PAGEREF _Toc17347645 \h 62  HYPERLINK \l "_Toc17347646" 8.9 Payment Of Fees And Costs.  PAGEREF _Toc17347646 \h 63  HYPERLINK \l "_Toc17347647" General Provisions  PAGEREF _Toc17347647 \h 64  HYPERLINK \l "_Toc17347648" 9.1 Taxes.  PAGEREF _Toc17347648 \h 64  HYPERLINK \l "_Toc17347649" 9.2 Annual Appropriations.  PAGEREF _Toc17347649 \h 64  HYPERLINK \l "_Toc17347650" 9.3 Conflict of Interest.  PAGEREF _Toc17347650 \h 64  HYPERLINK \l "_Toc17347651" 9.4 Background Checks  PAGEREF _Toc17347651 \h 64  HYPERLINK \l "_Toc17347652" 9.5 Advertising.  PAGEREF _Toc17347652 \h 65  HYPERLINK \l "_Toc17347653" 9.6 Assignment.  PAGEREF _Toc17347653 \h 65  HYPERLINK \l "_Toc17347654" 9.7 Public Records and Access to Records.  PAGEREF _Toc17347654 \h 65  HYPERLINK \l "_Toc17347655" 9.8 Non-Discrimination and Equal Opportunity.  PAGEREF _Toc17347655 \h 66  HYPERLINK \l "_Toc17347656" 9.9 American with Disabilities Act Requirements/Unauthorized Aliens.  PAGEREF _Toc17347656 \h 66  HYPERLINK \l "_Toc17347657" 9.10 Drug Free Workplace Program.  PAGEREF _Toc17347657 \h 66  HYPERLINK \l "_Toc17347658" 9.11 Public Entity Crime.  PAGEREF _Toc17347658 \h 66  HYPERLINK \l "_Toc17347659" 9.12 Good Standing.  PAGEREF _Toc17347659 \h 66  HYPERLINK \l "_Toc17347660" 9.13 Representation of Ability to Perform.  PAGEREF _Toc17347660 \h 67  HYPERLINK \l "_Toc17347661" 9.14 Indemnity.  PAGEREF _Toc17347661 \h 67  HYPERLINK \l "_Toc17347662" 9.15 Legal Requirements.  PAGEREF _Toc17347662 \h 67  HYPERLINK \l "_Toc17347663" 9.16 Further Assurances.  PAGEREF _Toc17347663 \h 67  HYPERLINK \l "_Toc17347664" 9.17 Notices.  PAGEREF _Toc17347664 \h 68  HYPERLINK \l "_Toc17347665" 9.18 Lobbying.  PAGEREF _Toc17347665 \h 68  HYPERLINK \l "_Toc17347666" 9.19 State Internet Home Page.  PAGEREF _Toc17347666 \h 69  HYPERLINK \l "_Toc17347667" 9.20 Independent Service Provider.  PAGEREF _Toc17347667 \h 69  HYPERLINK \l "_Toc17347668" 9.21 Force Majeure.  PAGEREF _Toc17347668 \h 69  HYPERLINK \l "_Toc17347669" 9.22 Amendments.  PAGEREF _Toc17347669 \h 69  HYPERLINK \l "_Toc17347670" 9.23 Severability Clause.  PAGEREF _Toc17347670 \h 69  HYPERLINK \l "_Toc17347671" 9.24 Reserved.  PAGEREF _Toc17347671 \h 69  HYPERLINK \l "_Toc17347672" 9.25 Waiver.  PAGEREF _Toc17347672 \h 69  HYPERLINK \l "_Toc17347673" 9.26 Contract Administrator.  PAGEREF _Toc17347673 \h 70  HYPERLINK \l "_Toc17347674" 9.27 Project Managers.  PAGEREF _Toc17347674 \h 70  HYPERLINK \l "_Toc17347675" 9.28 Waiver of Jury Trial.  PAGEREF _Toc17347675 \h 70  HYPERLINK \l "_Toc17347676" 9.29 Entire Contract.  PAGEREF _Toc17347676 \h 70  HYPERLINK \l "_Toc17347677" 9.30 Liability.  PAGEREF _Toc17347677 \h 70  HYPERLINK \l "_Toc17347678" 9.31 Subcontractor Liability.  PAGEREF _Toc17347678 \h 70  HYPERLINK \l "_Toc17347679" 9.32 Other Compliances.  PAGEREF _Toc17347679 \h 71  HYPERLINK \l "_Toc17347680" 9.33 Service Providers Property.  PAGEREF _Toc17347680 \h 71  HYPERLINK \l "_Toc17347681" 9.34 Documents and Data.  PAGEREF _Toc17347681 \h 71  HYPERLINK \l "_Toc17347682" 9.35 Favored Customer.  PAGEREF _Toc17347682 \h 72  HYPERLINK \l "_Toc17347683" 9.36 Loss of Data.  PAGEREF _Toc17347683 \h 72  HYPERLINK \l "_Toc17347684" 9.37 Confidentiality Obligations  PAGEREF _Toc17347684 \h 72  HYPERLINK \l "_Toc17347685" 9.38 Departments Responsibilities  PAGEREF _Toc17347685 \h 72  HYPERLINK \l "_Toc17347686" 9.39 Reserved.  PAGEREF _Toc17347686 \h 73  HYPERLINK \l "_Toc17347687" 9.40 Changes In Law.  PAGEREF _Toc17347687 \h 73  HYPERLINK \l "_Toc17347688" EXHIBIT A - COVERED ENTITIES AND COVERED POPULATIONS  PAGEREF _Toc17347688 \h 74  HYPERLINK \l "_Toc17347689" EXHIBIT B - PLANS  PAGEREF _Toc17347689 \h 77  HYPERLINK \l "_Toc17347690" EXHIBIT C - CONTRACT ASSUMPTIONS  PAGEREF _Toc17347690 \h 78  HYPERLINK \l "_Toc17347691" EXHIBIT D - MIGRATION GOODS AND SERVICES  PAGEREF _Toc17347691 \h 79  HYPERLINK \l "_Toc17347692" EXHIBIT E - CHANGE ORDER FORM  PAGEREF _Toc17347692 \h 80  HYPERLINK \l "_Toc17347693" EXHIBIT F - PAYMENT SCHEDULE  PAGEREF _Toc17347693 \h 81  HYPERLINK \l "_Toc17347694" EXHIBIT G - SAMPLE INVOICE  PAGEREF _Toc17347694 \h 82  HYPERLINK \l "_Toc17347695" EXHIBIT H - ITEM FEE LIST  PAGEREF _Toc17347695 \h 83  CONTRACT This Contract (Contract) is entered into as of August 21, 2002 (the Effective Date) by and between Convergys Customer Management Group Inc. (the Service Provider), an Ohio corporation with an office at 8000 Baymeadows Way, Jacksonville, Florida 32256, and the Department of Management Services (the Department), with an office at 4050 Esplanade Way, Tallahassee, Florida 32399-0950 (each, a Party and collectively, the Parties). RECITALS WHEREAS, the Parties have entered into this Contract pursuant to a competitive solicitation process (ITN # 32-973-400-Z) in compliance with Florida Law; and WHEREAS, the Service Provider agrees to provide an enterprise-wide suite of services to manage human capital to include payroll administration, benefits administration, human resource administration and staffing administration through an interactive web-based system, and to provide Service Provider personnel, where necessary, all in accordance with and pursuant to the terms of the Contract; NOW THEREFORE, in consideration of the premises and mutual covenants set forth herein, the Parties agree as follows: SectionDefinitions1 1.1 Definitions. Capitalized terms used in this Contract without definition shall have the meanings ascribed below: a) Acceptance and/or Accepted These terms shall mean, with respect to each Deliverable, that the Deliverable provided by the Service Provider has been formally acknowledged in writing by the Department as meeting, in all material respects, the specified Deliverable requirements established in the Contract. Formal acknowledgement of Acceptance of a Deliverable must be demonstrated in a signed writing by the Department in accordance with or as otherwise provided in Section 3.5. b) Case information recorded about a Covered Populations unresolved question, problem or concern. c) Case Management Tool - A browser-based application supported by an integrated workflow process that routes information about Cases for resolution. d) Cold Transfer - This occurs when a HR Specialist transfers a call directly to a requested number and terminates the call once the connection is complete. e) Confidential Information - shall mean, with respect to a Party hereto, all information or material which (i) gives that party some competitive business advantage, gives that Party the opportunity of obtaining some competitive business advantage, or the disclosure of which could be detrimental to the interests of that Party; and (ii) which is either (A) marked "Confidential," "Restricted," or "Proprietary" or similar marking, or (B) reasonably known by the Parties to be considered confidential or proprietary. Notwithstanding the foregoing, the States Confidential Information shall only be those records that are deemed exempt or "confidential" by the Florida Public Records Law, Chapter 119, Florida Statutes, any other provision of the Florida Statutes, or Section 24, Article I of the Florida Constitution. f) Consolidated Reporting Database (CRDB) - A proprietary central data repository for standard and custom reporting. g) Covered Population shall mean active and retired employees of Covered Entities as identified in Exhibit A. h) Covered Entity shall mean State Agencies, as identified in Exhibit A, as amended from time to time in accordance with Section 9.22. i) Deliverable shall mean the Deliverables listed in Section 2.2. j) Employee Self Service (ESS) The capability of allowing the Covered Population access to their HR information and allowing the Covered Population to perform a number of transactions with an IVR system or Web-based browser tools. k) Forced Disconnect - A call received by the Service Center that is automatically disconnected due to heavy call volume. During periods of heavy call volume, callers will receive a recorded message requesting that they call back at a later time. The system will then disconnect the call. l) Fulfillment Items any written materials Service Provider is obligated to send to the Covered Population pursuant to this Contract. m) Human Resource Specialist (HR Specialist) - A Service Provider employee who handles Covered Population contacts and administers HR Functions through the Service Center. n) Input Data entry for Covered Population that does not have access to self-service tools. o) IVR (Integrated Voice Response) - An automated voice interface into certain Covered Population data accessible through any touch-tone telephone. p)  SEQ CHAPTER \h \r 1ITN shall mean the Invitation to Negotiate for the Human Resources, Benefits, and Payroll Services No.32-973-400-Z issued by the Department on March 22, 2001. q) Knowledge-base Management System (KMS) - A web-based application used by the HR Specialist and Covered Population to access responses to questions or inquiries. This tool is utilized as part of the ESS and MSS help functions. r) Manager Self Service (MSS) - The capability to allow managers of Covered Population to access and process human resource information based on the managers security level for web-based and IVR systems. s) Participants shall mean members of the Covered Population who are eligible to participate in the Plans. t) Plan(s) - shall mean those benefit plans which are noted in Exhibit B, as amended from time to time pursuant to the Section 9.22. u) Project Manager shall mean those persons designated pursuant to Section 9.27 of this Contract. v) Response shall mean the initial document submitted by the Service Provider in response to the ITN on May 31, 2001 (Initial Response) and all best and final pricing documentation dated August 29, 2001. In the event of any conflict with the Initial Response and such subsequent documents, such subsequent documents govern. w) Secretary shall mean the Secretary of the Florida Department of Management Services. x) Service Center (Human Resource Service Center) - The Service Provider location(s) staffed with HR Specialists that provide service support for the Covered Population. y) Services shall mean the services to be provided by Service Provider as described in Section 2 of this Contract pursuant to the terms and conditions of this Contract unless otherwise mutually agreed upon in writing pursuant to this Contract. z) Service Provider shall mean Convergys Customer Management Group Inc. aa) State shall mean the State of Florida. bb) State Agency shall mean an official, officer, commission, authority, council, committee, department, division, bureau, board, section, or another unit, branch or entity of State government. cc) State Comptroller shall mean the Office of the Comptroller, Florida Department of Banking and Finance, or its successor entity, and as of January 07, 2003, the title changes to Chief Financial Officer. dd) User shall mean any member of the Covered Population, State agents, or vendors gaining authorized access to the Service Providers Services. ee) Virtual Center of Excellence The expert human capital consulting available to assist the Department in providing best practices relating to the Services. ff) Warm Transfer - Occurs when a HR Specialist transfers a caller to a third party by introducing the caller or connecting with the third partys IVR and then disconnecting from the call. 1.2 Rules of Interpretation. In this Contract, unless otherwise indicated or otherwise required by the context, the following rules of interpretation shall apply: (a) reference to, and the definition of, any document (including any exhibits) shall be deemed a reference to such document as it may be amended, supplemented, revised or modified in the method prescribed herein; (b) all references to a Section or "Exhibit" are to a Section or Exhibit of this Contract; (c) the table of contents and Section headings and other captions are for the purpose of reference only and do not limit or affect the content, meaning or interpretation of the text; (d) defined terms in the singular shall include the plural and vice versa, and the masculine, feminine, or neuter gender shall include all genders; the words hereof", "herein" and hereunder shall refer to this Contract as a whole and not to any particular provision of this Contract; the words include, includes and "including" are deemed to be followed by the phrase without limitation; any reference to a governmental entity or person shall include the governmental entitys or person's authorized successors and assigns; (h) any Exhibit attached to or referenced by this Contract is made part of this Contract. 1.3 Hierarchy of Documents. In the event of any conflict between the terms of this Contract, the ITN, or the Service Provider's Response to the ITN, this Contract shall govern. End of Page SectionScope of Work2 2.1 General Information The purpose of this Contract is to define the Services to be delivered to the State by the Service Provider, and the terms and conditions under which such Services will be provided. As more particularly described below, the objective of this Contract is to obtain an enterprise-wide suite of Services to support the management of the States workforce through i) Human Resources Administration, ii) Benefits Administration, iii) Payroll Administration, and iv) Staffing Administration functions (Functions). The Service Provider shall begin providing the Services, Activities and Tasks set forth in Section 2.3 according to the following timeline: Function Go-Live Date Staffing Administration May 1, 2003 Payroll Administration June 1, 2003 Human Resources Administration June 1, 2003 Benefits Administration January 1, 2004 The Service Provider shall provide transition operations pursuant to the Transition Plan set forth in Section 2.2 for each Function prior to the performance of the Services of that Function. Upon completion of the transition operations for each Function, the Service Provider shall take over the operations of the Function. The date on which the Service Provider takes over the operations of a Function is the Go-Live Date. Section 2.2 sets forth the Deliverables to be provided to the State by the Service Provider in relation to the Services. State Agencies that are not Covered Entities as of the Effective Date of this Contract may be added to this Contract as recipients of the Services pursuant to Section 9.22. The State retains sole responsibility for establishing policy and promulgating rules concerning all aspects relating to its Covered Population and interpreting and administering those policies, rules, and other procedures or directives. The Department does not delegate any authority or discretion to the Service Provider in regards thereto. The Parties agree that the Service Provider is not the State, or a board or commission of any State Agency, or, a county, district, authority, municipal, officer, department, division, board, bureau, commission, or other separate unit of government created or established by law or an authority of any county, municipal corporation, or political subdivision (collectively, an Agency of Government), nor is the Service Provider an alter ego, agency or instrumentality of any Agency of Government; and nothing contained in the Contract shall be construed as creating in or conferring upon the Service Provider the rights, duties or obligations of an Agency of Government. The Department agrees to cooperate with and offer reasonable assistance to Service Provider in connection with any claim that Service Provider has the rights, duties, or obligations of an Agency of Government; provided, however, that the Service Provider shall comply with the applicable requirements of the Public Records Law, Chapter 119, Florida Statutes. The Parties objectives in entering into the Contract are as follows: No Infrastructure Costs there are no additional infrastructure investments beyond those in Section 2.7, required of the Department in order for Service Provider to provide the Services and the Department shall provide the Service Provider with access to existing State systems as may be needed for Service Providers performance hereunder. Management Program provide a highly innovative, entrepreneurial, and efficient management program that challenges the status-quo and existing cultures in formulating and implementing high quality, timely and cost-effective human resource/personnel services. The program must embody sound financial concepts that result in appropriate costs while continuously focusing on improving customer support. Quality application of quality concepts and performance monitoring through meaningful indicators that leads to continuous process improvement. Cooperative Relationship form a cooperative relationship between the Department and the Service Provider that establishes a mutual understanding of the requirements, and roles and responsibilities of the Parties. Self Service Functions provide the Covered Population with a means of self-service through a web-based approach that is supplemented by additional electronic means, including but not limited to e-mail, facsimile and IVR. Clear Goals and Measures provide for clearly defined goals supported by detailed task requirements. 2.2 Deliverables. In order for the Service Provider to efficiently and successfully provide Services relating to the Functions, the Service Provider shall provide the Department with the following: A. Transition Plan The Service Provider shall provide the Department with a Transition Plan that shall describe the methodology and general timeline for transitioning the States workforce and personnel information system to the Service Provider, and shall outline the activities to be accomplished. The Transition Plan shall address, among other things, project management, structure, and development of the Work Plans for each Function in Section 2.3. The Transition Plan shall include a Communication Plan, which shall serve as a guide for effective communication between the Department and the Service Provider relating to the status of the Work Plans and general information. The Transition Plan shall be delivered by the Service Provider in one or more of the following Microsoft Software products: Word, Excel, or Project, on a 3 inch diskette or CD-ROM, and in hard copy not later than ten (10) business days after Contract execution and delivery to both Parties. The Transition Plan shall be reviewed and approved by the Department in accordance with Section 3.5. B. Work Plans Within ten (10) business days after receipt of the Departments written approval of the Transition Plan, the Service Provider shall provide the Department with four Work Plans, one for each of the Functions. The purpose of the Work Plans is to maintain control over the transition of Services. Each Work Plan shall describe the detailed activities to be performed by the Service Provider and timeframes associated therewith, and shall include the responsibilities of the Department and the Service Provider. Additionally, each Work Plan shall address the Records, Interface and Contingency Operations Services, as set forth in Section 2.3, as they relate to the specific Function. Each Work Plan shall consist of a Business Blueprint Phase, a Realization Phase and a Final Preparation Phase, and shall specify the dates by which each Phase shall be completed. Business Blueprint Phase. The Service Provider shall analyze the current business processes, organizational structure, and technology used by the State in providing the Function and compare them to the Service Providers Best Practice Model. The Blueprint phase shall include a Current State Gap Assessment, which shall identify any gaps between the States current operations and the Service Providers Best Practice Model. Based on the Current State Gap Assessment, the Service Provider shall define the States Best Practice Model to be implemented. The Service Provider shall not be required to begin implementation of the Blueprint until the Department has approved the Blueprint. The Departments approval shall be treated as an Acceptance of the Blueprint and consent to move forward in accordance with the same. During the Blueprint Phase, the Service Provider will validate the Contract assumptions set forth in Exhibit C. If any assumption is no longer valid, causing changes to Section 2.3, (Scope Changes), the Parties will review such Scope Changes, determine whether the prices for the Services will be modified, and amend the Contract accordingly. If it is determined that price modification is necessary, the Department may at its sole option, terminate this Contract, in accordance with the provisions of Section 7. In addition to the foregoing, the Service Provider shall provide the Department with the following during the Blueprint Phase: Change Management Plan which shall identify the management efforts and internal changes required of Covered Entities in order to transition their Functions to the Best Practice Model for the State identified by the Service Provider. The Change Management Plan shall detail the skills required of the Users for deploying the States Best Practice Model relating to the Function. Training Plan - The Service Provider shall describe how the Service Provider will train its staff on the States rules, policies and procedures. The Service Provider will configure a web based Knowledge-base Management (KMS) Tool, the contents of which the Department will review and approve. c. Interface Plan The Interface Plan shall describe the flow of data to and from the State sponsored computer systems and shall identify the business and system requirements for the HR Software (defined in Section 2.7) by Function. Among other things, the Interface Plan shall identify the States existing data feeds, the data feeds required in the Best Practice Model for the State, the file layout for data transmission between the State and the Service Provider, and the valid employee data elements that are required to transition to the Service Providers HR Software. d. Business Continuity Plan The Service Provider shall provide the Department with an outline of the Business Continuity Plan (BCP) which shall detail the methodology and timelines associated with business continuity in the event of a disaster or major system outage. The Department will cooperate with Service Provider and will make available the necessary State resources and system access in order for Service Provider to develop and activate the BCP. At a minimum, the BCP will address: A plan of action for any unexpected interruption of business operations that is beyond the scope of daily operating response procedures. Maintenance of backup systems for all State employment files and employee indicative data maintained on Service Providers system, consistent with this Section 2. A determination of the general nature and potential range of adverse events, so that the plan adequately addresses the risks. Procedures to activate an immediate, orderly response to emergency situations in order to protect and/or recover critical assets and functions. A methodology and identification of current and future critical applications and services. Procedures to obtain critical resources necessary for recovery, including hardware, software, space, files, human resources, power, finances, and attendant considerations. Identification of key team personnel, with established and assigned team responsibilities, and training of each team member to perform specific duties. Procedures for transferring operations to the Jacksonville site in the event the Tallahassee site is not available and to the Tallahassee site in the event that the Jacksonville site is not available, consistent with this Section 2. Procedures to promptly facilitate an orderly restoration of site operations. Service Provider shall maintain the BCP, keep it current and test it annually. 2. Realization Phase - During the Realization Phase, the Service Provider shall implement the business processes and systems identified during the Blueprint Phase for all Functions. Among other things, the Service Provider will establish the Service Center, build and configure the computer systems, compile training material and establish training policies, establish infrastructure, establish and draft policies and procedures, and install and implement the HR Software. 3. Final Preparation - This phase of the Transition Plan includes final systems integration, preparation of a Service Provider workforce, and User training. During the Final Preparation Phase, the Service Provider shall provide the Department with the following: User Acceptance and Parallel Testing. A process for the Department to evaluate simulated test criteria to ensure system functionality. End User Training. The Service Provider shall train Users and Covered Entities management staff on how to use the self-service aspects of the Service Providers system. HR Scorecard. An assessment tool for the Department to manage continuous improvements. The Work Plans shall be delivered by the Service Provider in one or more of the following Microsoft Software products: Word, Excel, or Project, on a 3 inch diskette or CD-ROM, and in hard copy not later than ten (10) business days after Service Providers receipt of the Departments written approval of the Transition Plan. The Work Plans shall be reviewed and approved by the Department in accordance with Section 3.5. Upon receipt of written approval from the Department, the Service Provider shall begin to implement each Work Plan. C. Security Plan - Within ten (10) business days after Contract execution by both Parties, the Service Provider shall provide the Department with a Security Plan, the purpose of which is to describe the procedures for the protection of sensitive User related information that is processed and stored by the Service Provider. The Security Plan shall describe the standards and guidelines that apply to all Covered Population information when providing Services. The Security Plan shall take into account that certain Covered Entities employ persons in sensitive positions and any unauthorized or unintentional disclosure of such employees personal information could have grave repercussions for the employees and the State agency (Sensitive State Agencies). In accordance with the time for Acceptance prescribed for the Security Plan and the Acceptance process, such Sensitive State Agencies shall have the right to independently review the Security Plan, and provide recommendations to the Department to reject any provisions that are not consistent with the States standards as of the Effective Date or industry standards as of the Effective Date. Any recommendation for rejection and the reason(s) therefore, shall be made in writing to the Department and the Service Provider. At the Departments request the Security Plan may include one or more of the following: A list of the HR Specialists (Special HR Specialists) who would handle transactions relating to specifically identified members of the Covered Population (Special Covered Population) pursuant to any confidentiality or public record exemption provision of the Florida Statutes. 2) The Sensitive State Agencies may retain the right to review and obtain copies of the complete background investigation reports of the Special HR Specialists. If, in the discretion of a Sensitive State Agency, further inquiry is warranted and authorized as to any person on the list beyond the "level one" screening described at Section 435.05, Florida Statutes, including a national criminal history records check conducted through the FBI, such Sensitive State Agency may, at its expense, conduct further inquiry before the Department approves access to the personnel records of the Special Covered Population. If in the opinion of a Sensitive State Agency, following a review of such Special HR Specialists complete background investigation report or of such portion of the report as is made available to the Sensitive State Agency, such Special HR Specialists background poses an unacceptable risk of improper handling or dissemination of sensitive personnel information, such Sensitive State Agency may request that the Department refuse or limit such Special HR Specialists access to all or any portion of the Special Covered Populations personnel records. 3) The right of a Sensitive State Agency to conduct all or any portion of the background investigation of any of such Sensitive State Agency's present or prospective employees or volunteers at its own cost, without making the contents or copies of the records generated as a result of the investigation available to the Service Provider if, in the agency's reasonable discretion, such access poses an unacceptable risk of improper handling or dissemination of sensitive personnel information. 4) The right of a Sensitive State Agency to independently investigate, at its own cost, any error attributable to the Service Provider in providing access to or permitting dissemination of the Sensitive Covered Populations personnel records, as well as any instance of lost or missing data affecting the Sensitive Covered Population personnel records and the right to take appropriate action. 5) The right of a Sensitive State Agency to recommend to the Department changes, corrections, or improvements to the Service Provider's Security Plan at any time, which the Service Provider shall be obligated to reasonably consider and to implement, provided no additional costs to Service provider, and if in the sound discretion of the Service Provider, such recommendation is reasonable and will enhance the security of sensitive personnel information. The Security Plan shall be delivered to the Department by the Service Provider in one or more of the following Microsoft Software products: Word, Excel, or Project, on a 3 inch diskette or CD-ROM. The Security Plan shall be reviewed and approved by the Department in accordance with Section 3.5. Upon receipt of written approval from the Department, the Service Provider shall begin to implement the Security Plan. D. Migration and Interim Services Plan - Within one-hundred and eighty (180) days after Contract execution by both Parties, the Parties shall develop a Migration and Interim Services Plan which shall detail the activities that will occur in the event of Contract termination or expiration in order for the Services to be transferred back to the Department (or its alternative service provider). The Migration and Interim Services Plan will, at a minimum, provide for the orderly migration of Services to the Department (or its alternative service provider) in accordance with Section 7. 2.3 Services, Activities and Tasks. The objective of this Section is to describe the management and technical Activities and Tasks to be performed by the Service Provider. The Tasks within each Activity serve to identify the specific requirements associated with each of the Services that are to be performed by the Service Provider and identify some of the specific obligations of the State with respect thereto. While the Tasks are divided into State and Service Provider responsibilities, in addition to the State responsibilities so identified, the Department shall comply with Section 9.38, Department Responsibilities and continue perform all other requirements in connection with the Services. Changes in law that may result in modifications to Section 2 shall be handled in accordance with Section 9.40, Changes in Law. Global Services Description. The objective of the Global Services Section is to provide a descriptive list of Tasks that Service Provider and the State will perform to provide an automated, employee-enabled and integrated service-oriented solution. The Tasks listed in this Section apply to all Functions covered by this Contract, as appropriate. Global ActivitiesService ProviderStateDeploy a Virtual Center of Excellence (i.e. expert human capital knowledge) for a not to exceed total of 8,300 of consulting hours over the Contract to oversee program design and ensure exploration and reasonable consideration of best practices in Service delivery. XEnsure that Covered Population sensitive information maintained within the Service Providers database is password protected through a unique employees identification number and an initial randomly generated personal identification number, which can be changed by the employee through web self-service or IVR. XCollect, scan or image and electronically maintain all documents comprising each active personnel file for Covered Population. XProvide web-based self-service tools for frequently asked questions and HELP messages for Covered Population. XProvide the Users the ability to scroll forward and backward in applications where multi-screen displays are utilized for conveying information. XProvide a restricted access authentication process by user profile to employee records. The user profile should define the levels of access by employee, agency, department or organizational unit and the Users ability to have query or transactional update capabilities. XElectronically maintain active personnel records in accordance with statutory requirements related to record retention schedules for Covered Population beginning with the Go-Live established in Section 2.1. XProvide data file transmissions in a commonly accepted file transfer protocol (FTP) format as identified during the Business Blueprint Phase. Outgoing files will be in predefined file layout of the State. XProvide data file transmissions in a commonly accepted file transfer protocol (FTP) format as identified during the Business Blueprint Phase. Incoming files to the Service Provider will be in the pre-defined file layout. XProcess pre-defined standard file format transmissions to and from the Service Providers systems.XProcess pre-defined standard file format transmissions to and from the States systems. XGenerate and provide standard reports and reports identified during the Business Blueprint Phase in relation to all Activities and Services provided. XMaintain and update a Consolidated Reporting Database (CRDB) which allows the Covered Entities, based on data elements identified during the Business Blueprint Phase, to produce reports. Service Provider shall populate the CRDB with Covered Entities electronic historical records and all future transactions performed after the Go Live Dates as established in Section 2.1. XProvide query capability via a web-browser based on a unique user profile for the States budget and accounting staff as authorized by the Project Manager. XProvide an annual data file, or as requested by the Project Manager, of the Covered Population via FTP in a standard data format to the States budget and accounting staff for them to accomplish administration of rate control, position and pay actions, pay plans, and compensation strategies. XDistribute Fulfillment Items as mutually agreed upon in the Business Blueprinting phase through means of a web-browser, and/or the USPS for the Covered Population. XProvide secure services through User profiles and authentication methods and data transfers from Service Providers site via a dedicated network connection between defined data centers and with encryption software. XProvide Services for the Covered Population through automated self-service tools, supplemented by Service Provider personnel during the hours of operation set forth in Section 2.9 for Covered Population unable to access a web-browser or for transactions and fulfillment of requirements not accomplished via self-service tools. XProvide service indoctrination training, as mutually agreed upon in the Change Management Plan to the Covered Population during the transition to the Service Provider environment. In addition, provide service indoctrination training for enhancements to functionality and service delivery provided such enhancements are mutually agreed upon pursuant to the Change Order process in Section 3.2. XAs directed by the Covered Entities, provide public records request information not exempt and maintained by the Service Provider to the Covered Entities to assist Covered Entities in preparing responses to public records requests. Confidential and sensitive information will be redacted for final Covered Entity review and approval. XProvide to the requester the public information and collect the appropriate administrative fees associated with the request to remit to Service Provider, as provided in Section 9.7. XDevelop and provide alternative solutions to the Covered Population for accessing the Service Providers self-service tools for Users without web-access (e.g. IVR) XMaintain a web based information site where Users can access information, perform transactions, seek help, and access forms in one of the following file formats: HTML, PDF, MS Word or MS Excel. XProvide technical assistance to Covered Population for inquiries, transactions, and appeals related to the Services provided. XResolve questions and situations for Covered Population involving policy exemptions requiring discretion and management decision. XProvide a secured web site that reflects the State image and culture to User(s) who may access the site for information through a web-browser for either employee self-service, applicant self-service, or manager self-service. X Transition Description. The objective of the Transition Services Section is to define the Go-Live Date associated with each Function transitioned. The following table provides the current State system associated with the applicable Function. Exhibit A identifies the Covered Population for each Function. In addition, to the extent that the provision of Services would cause a current State system to be no longer required, State may retire such system. Function Current State SystemGo-Live Date Staffing Administration JobsDIRECTMay 1, 2003Human Resource Administration (except for Training Activities) Payroll Administration COPES HR COPESview COPESDIRECT TimeDIRECT June 1, 2003Human Resource Administration (Training Activities only) TrainingDIRECTSeptember 1, 2003Benefits Administration DSGI SystemsJanuary 1, 2004 Payroll Administration Services Description. The objective of the Payroll Administration Section is to provide a descriptive list of Tasks that Service Provider and the State will perform which are associated with the following activities: Time/Attendance/Leave Processing Payroll Preparation, and Payroll Production Services, as set forth below, may be added as a Service described herein Tasks Time/Attendance/Leave Processing Service ProviderStateInput, calculate, and prepare for payroll processing all hours reported utilizing exception time reported for the Covered Population including Fair Labor Standards Act hours and provide report for certification to the Covered Entities. Other Personal Services staff will be recorded by positive time reporting including Fair Labor Standards Act hours and provide report for certification to the Covered Entities. XCalculate 28-day work cycle for all hours as recorded by exception time reporting for the Covered Population who work within the law enforcement and firefighters occupations and prepare for payroll processing including Fair Labor Standards Act hours. Provide report for certification to the Covered Entities. XProcess Family Medical Leave Act requests and coordinate the receipts of medical documentation, as approved by the Covered Entities. XProvide a web-based reporting tool to Covered Entities for Manager Self-Service in order to track flexible workweek schedules and assist managers in avoiding overtime payments. XProvide a web-based manager self-service tool to track the Covered Populations time to accounting codes (cost accounting) to a hierarchy not to exceed six (6) cost accounting levels. XMaintain web based, integrated voice response (IVR), or other viable solutions as mutually agreed upon in the Business Blueprinting Phase set forth in Section 2.2, for time attendance, and leave system to track and store employee data to include non-standard workweek, regular hours worked, overtime hours worked, compensatory time earned, leave usage and leave balance. XCollect, tabulate, and balance pre-defined leave and attendance codes, and audit time and attendance data as defined in Federal or State statutes or rules. XTrack, adjust, and audit employee leave balances including family medical leave for the Covered Population. XMaintain a sick leave pool indicator as established by the Covered Entities within the time reporting tool for the Covered Population to donate leave time in hours to be used at the direction of the Covered Entities. XTrack, manage and approve usage of hours against the Covered Entities sick leave pool as provided via a unique leave indicator on Covered Populations timesheet and transfer requests to Users as appropriate. XProvide a web-based case management selfservice tool for the sick leave pool. XMaintain record of grandfathered pre-1973 sick leave for the Covered Population impacted. This grandfathered provision will be retired upon usage of all remaining balances. XTransfer the remaining balances of the employees leave information to Covered Entities when Covered Population members transfer between Covered Entities. XDistribute employee leave balances statements at the end of each pay cycle to the Covered Population via a web-based browser and via Fulfillment Item for employees who do not have web access. XTrack the Fair Labor Standards Act and pre-April 1999 State special compensatory leave balances and notify Covered Population and Covered Entities when limits are reached. XAudit, tabulate and prepare calculations of terminal leave payments for payroll processing for the Covered Population affected, which may include pro-rating of leave. XProvide an indicator on the employees file for identifying educational leave. XApproval of educational leave with pay. X Payroll Preparation ActivitiesService ProviderStateInput and prepare for payroll processing Covered Population salary data & adjustments, including performance based compensation increases captured via manager self-service tools or as requested by the Covered Entities. Service Provider will transmit data required for employee record adjustments for Covered Entities as specified during the Business Blueprint Phase. XPrepare for payroll processing all payments for uniform allowances as defined within the job profile of the Covered Population XSupport the States collection effort for over and under payments via a web-based case management tool. XCompile Covered Population salary data processed for bi-weekly monthly, and supplemental payroll runs and produce pay increase analysis report for Covered Entities. Pay data will be provided to Service Provider from the State Comptroller. XPrepare and review benefits reports and notify Plan providers, State Comptroller and Covered Population of deduction errors. XXTrack, verify and process Fair Labor Standards Act accruals and prepare for payroll processing, shift differentials, and on-call payments as defined within the Covered Populations position profile. XTrack, verify and process deferred compensation and garnishments against the Covered Populations salary as paid through the Bureau of State Payrolls. XCalculate leave accruals requiring payment adjustments or leave payments and prepare for payroll processing as captured from the Covered Population through exception reporting into the time reporting system for all leave types as identified during the Business Blueprint Phase. XMaintain the electronic funds transfer routing record and information for the Covered Population as part of the employees indicative data to the extent authorized by law. XMaintain the routing information for electronic funds transfer for payments made to the Covered Population as required by the Bureau of State Payrolls. XProcess the electronic funds transfer of the fiscal funds to the employees bank accounts. XAudit payroll data for accuracy (pre-audit) prior to warrant and EFT distribution by the State Bureau of Payrolls via report. XxCertify payroll/claims/emergency payments (revolving fund warrants). xPerform audits on State activities related to time approval and payroll processing. xInput, calculate hours, and prepare for payroll processing criminal justice incentive pay, firefighter's supplemental pay and secondary law enforcement reimbursement related to basic recruiting. xPrepare for payroll processing settlement agreements related to payroll for the Covered Population such as reinstatement of pay, leave, and other pay related settlements as requested by the Covered Entities. XPerform accounting functions. XPrepare for payroll processing overtime, on-call and extra straight time hours and approved leave without pay hours for the pay period. XProcess travel reimbursements through the Comptroller, Bureau of Auditing. XPrepare for payroll processing, deductions for Covered Population on approved disability leave and arrange for continuation of insurance deductions via COBRA. X Payroll Production: Service Provider is not obligated to provide Payroll Production until and unless the Parties execute a Change Order in accordance with subsection 3.2, including agreeing that the Department will pay additional fees to Service Provider for providing Payroll Production not to exceed amounts quoted in Service Providers response to the Invitation to Negotiate for this Service. Any Change Order to provide Payroll Production services is also contingent on: 1) the written consent of the State Comptroller (which title shall change to Chief Financial Officer on January 07, 2003) and, 2) sufficient appropriations for payment. If the Department determines that it shall seek an outside provider to provide Payroll Production, the Department may award the Payroll Production Administration and calculation of financial data related to wages, salaries, and deductions to Service Provider or may seek a bid for these services. Payroll Production Activities (Optional) Calculate gross pay for Covered Population. Calculate net pay for Covered Population. Provide direct deposit and check production. Disburse payroll and statements. Prepare Federal and State governmental reports for the filing of income tax, social security and Medicare withholding. Provide information return reporting (Forms W-2, 1042S and 1099). Provide duplicate W-2, W-2C and 1042S. Provide agency reports for taxable tuition waivers. Collect and refund Federal Insurance Contribution Act and withholding tax. Withhold non-resident alien tax. Transfer and reconcile retirement program funds. Process debt garnishments, Internal Revenue Service levies, court ordered support and federal student loan collections. Reconcile clearing trust account. Implement federal and state legislative changes. Provide electronic funds transfers. Provide online payroll history. Liaison with Internal Revenue Service and Social Security Administration for tax reporting and remittance. Determine and monitor validity of deductions. Provide earnings statement, employee information statement, W-2, and W-4. Provide customer support. Provide tax research. Audit, review and report on transactions Prepare and maintain the payroll manual. Provide user training. Provide online employee earnings history. Record and report on payroll transactions on fiscal/calendar/federal/project year basis. Attribute, record, and report payroll transactions in the States Accounting System utilizing State codes. Provide payroll modeling for agencies. Provide earnings statements. Distribute and mail warrants to vendors not on electronic fund transfer. Distribute and mail payroll warrants to Covered Population on leave of absence or not on Electronic Fund Transfer. Process settlement agreements. Maintain historical and current payroll records. Provide resource and workload management data.  Benefits Administration Services Description. The objective of the Benefits Administration Services Section is to provide a descriptive list of Tasks that Service Provider and the State will perform which are associated with the administration of the Plans and any specific Covered Entities plans. Benefits Administration ServicesService ProviderStateDevelop and produce the summary plan descriptions for each of the Plans and any specific Covered Entities plans. XDistribute summary plan descriptions for each of the Plans and any specific Covered Entities plans to the Covered Population and all Plan Participants. XProvide the management and selection of States group insurance and benefits related programs. XProvide web-based employee self-service tools, or distribute Fulfillment Items for Covered Population unable to access a web browser, to provide access to Plan Participants. XSupport the States collection effort for over and under payments via a web-based case management tool. XProcess benefit elections and prepare for payroll processing all deductions for Covered Population and all Plan Participants and participants in specific Covered Entities plans that enrolled in, changed, or cancelled benefits during the annual enrollment cycle, new hire enrollments, and life or work event eligibility changes. XCoordinate and administer a passive annual enrollment cycle not to exceed a four (4) week period, with a two (2) week grace period as approved by the Department and process enrollments, changes or cancellations of benefits as elected by the Covered Population. Active enrollment (ex., change in types of plans provided) shall be handled in accordance with the Change Order process. XProvide an electronic file, as changes occur, in the standard file layout specified by the Service Provider of the cost components for each benefit provided to the Covered Population and all Plan Participants and participants in specific Covered Entities plans. XAdminister the election, claims processing and the data feed to States provider of flexible benefit accounts (e.g. medical and child care reimbursement), Covered Entities specific post-tax insurance programs and State endorsed or Covered Entities supplemental insurance plans that provide a valid deduction code through the States financial system. XProvide benefits administration support for the Plans by serving as liaison between Covered Population and all Plan Participants, and Plan providers and pharmacy drug coverage programs. XTrack and notify all Covered Population and Plan Participants of the 60-day new enrollee requirement and 30-day qualifying event enrollee requirement. XGenerate and distribute annual employee benefits statement for each member of Covered Population and all Plan Participants. XAssist Covered Population in obtaining State and Covered Entities benefit- related documents. XAdminister the continuation / suspension of benefits for the Covered Population. XSupport administration of the activities related to the death of a Plan Participant for any benefits as requested by Plan Providers, process and verify beneficiary information (eligibility) for the Covered Population. XNotification to beneficiaries in conjunction with efforts of Plan Providers. XHuman Resource Administration Services Description. The objective of the Human Resource Administration Services Section is to provide a descriptive list of Tasks that Service Provider and the State will perform which are associated with the following Activities: Organizational Structure Position, Classification and Compensation Employee Management Employee Performance Evaluation and Bonus Plans Workforce Education Health and Safety Employee Assistance Program Workers Compensation Employee Relations State Policy and Other Miscellaneous Programs. Organizational Structure Activities Service ProviderStateReview, assist in preparation, and analyze request for organizational changes. XApprove organizational changes. XProvide a web-based tool that allows for Covered Entities to update, maintain and manage the Covered Entities organization charts for the Covered Population and positions. X Position, Classification and Compensation Activities Service ProviderStateProvide manager self-service tools for the Covered Entities to manage Covered Population reclassifications and add/delete actions. XProcess Covered Population reclassification and add/delete actions as directed by the Covered Entities. XEstablish and delete positions as directed by Covered Entities and archive historical information for reporting purposes. XAssist and recommend to Covered Entities the appropriate classification of positions as defined through standard job profiles established by Covered Entities. XMaintain/modify position descriptions as directed by Covered Entities for the Covered Population. XMaintain job profile core competencies and provide a web-based tool to track competencies, Performance Metrics and expectations for the Covered Population. XObtain and maintain available national labor market statistics for the State. XConduct compensation and pay analysis to include market analysis for similar job classes and occupations of the State as represented in local, regional, and national target market models. XConduct workforce analysis; prepare response for Governor, agency head, private citizens, state and federal agencies. XDetermine need for revisions to current class or broadband level specifications and submit request to the Division of Human Resource Management X Employee Management Activities Service ProviderStateMaintain, verify and notify relevant Covered Entity of special licensing, registration, or certification qualifications and renewals as defined within the Covered Populations job profile requirements. XTrack employment status eligibility for all non-resident aliens via a unique indicator on their employee record and notify them via certified mail that documentation is required to maintain their employment status with the State and notify Covered Entity of non-compliance for termination processing. XMaintain within the employee indicative data an indicator that defines the job and task analysis qualifications for sworn positions as defined within the job profile. XDevelop career paths and assist employees in obtaining promotional opportunities. XMaintain an indicator for requests made by Covered Population for reassignments, transfers and promotions (including unique collective bargaining agreements and court settlement agreements) via the web-based case management tool. XProvide annual notification via the web-based employee self-service tool regarding the tracking of annual gift and financial disclosure requirements as provided within defined job profiles and interface with the States Ethics Commission via a standard report. XProcess monthly Other Personal Service extensions as approved by the State. XMaintain officer information in Automated Training and Management System. XTrack and administer the placement of displaced Covered Population, including collective bargaining bumping, recall process for up to a year following lay-off, and retention as required by Collective Bargaining Contracts and State statute. XCalculate retention points for bumping process and preparation of lay-off lists, as required by Collective Bargaining Contracts and State statute. XAs directed by the State, conduct physical desk audits for any Covered Population members identified as potentially working out of their occupation profile. The audit will be conducted against the position description which outlines the responsibilities for which the employee is compensated for or is currently hired to perform. XProvide a report as identified during the Business Blueprint Phase to certify final earnings, dates of service, leave of absence, workers compensation, and prior service. XAccept and forward any application received from the Covered Population for retirement benefits to the States Division of Retirement. XProvide length of service report for Covered Population via an electronic PDF file or web-browser as identified during the Business Blueprint Phase. XConduct efficiency and productivity reviews. XProvide a web-based self-service tool to maintain dual employment information related to Covered Population and agreements related to employment between Covered Entities. XProvide a web-based self-service tool to maintain outside employment information related to Covered Population. XManage dual employment of Covered Population utilizing the Service Providers web-based self-service tools. X Employee Performance Evaluation and Bonus Plan Activities Service ProviderStateProvide a web-based performance appraisal tracking system that captures supervisors evaluations, peer reviews, and 360-degree feedback and calculates a weighted score based on a single Statewide appraisal format and generate electronic notification messages to Covered Population related to the performance evaluation process. XReview evaluations for completeness of required data fields and compliance with statutes and Personnel rules based on States pre-defined appraisal requirements and formats. XScan evaluation information for Covered Population without access to a web browser. XProvide batch load capability for evaluation and bonus distribution information. XProvide information to managers and Covered Population regarding performance evaluations. XResolve questions and situations for managers and Covered Population regarding performance evaluations. XRecommend and assist Covered Entities in developing core competencies to be used for evaluation and developing format to be used for evaluation. X Provide a report to Covered Entities of results of performance evaluations and distribution of bonuses. X Workforce Education, Training and Orientation Activities Service ProviderStateProvide web access to employee handbooks published in one of the following file formats: HTML, PDF, MS Word or MS Excel as provided by State or Covered Entities and document issuance of information and handbooks. XDevelop, administer and maintain annual training plans for the Covered Population. XDevelop and distribute to Covered Entities new hire orientation self paced e-learning tools including electronic media format or other state of the art solutions. Distribute to Covered Population materials as provided by the Covered Entities. XProvide new hire orientation training utilizing the Service Providers e-learning tool solution. Provide Agency unique training and materials. XFor employees without web-based access, classroom training will be provided at a predefined Service Provider and / or Covered Entities locations within the State of Florida for new hire orientation and mandatory State HR sessions.   XMaintain a manager web-based tool to capture Covered Population training requests and developmental records for Covered Population career pathing plans. XDevelop curriculum and provide basic supervisory skills training to Covered Population designated as supervisory, managerial, or confidential to include improving performance of individual and groups of employees, relating the efforts of employees to the goals of the organization, strategic planning, and team leadership training. Delivery will be provided through e-learning and classroom training. Classroom training for each course will be offered one time per month and annually at the Departments Expo event. Course schedules will be published annually.  XProvide a web-based self-service tool for agency managers to capture and report tuition waivers requested by Covered Population. XReview and approve Covered Populations requests for tuition waivers. XProvide refresher mandatory State HR training sessions on Diversity, Americans with Disabilities Act (ADA), Ethics, Safety in the Workplace and Sexual Harassment topics utilizing e-learning tools provided by the Service Provider. XDevelop curriculum and provide Diversity, Americans with Disabilities Act (ADA), Ethics, Safety in the Workplace and Sexual Harassment training utilizing e-learning tools and distribute materials provided by the State or Covered Entities. XDevelop Agency specific training plans to address lawsuit issues, track, and report participation in response to court directives pursuant to settlements. XDevelop, administer, provide, and evaluate agency unique curriculum and needs analysis. XProvide agency unique employee orientation training. X Health and Safety Activities Service ProviderStateUpon Covered Entitys request, coordinate with the Covered Entities sub-contractor for random drug and alcohol testing as required within a defined job profile. XAdminister the Covered Entities contracts (not related to the Service Provider) for drug screening and physical exams. XAt Covered Entities direction, coordinate with the scheduling of physical examinations/fitness for duty as required within a defined job profile with the Covered Entities subcontractors. XConsult with State Agencies on unique health and safety needs. Administer safety plan for agency. XMaintain Blood borne Control Plan, hazardous material control and exposure and administer medical monitoring contract. X Employee Assistance Program Activities Service ProviderStateProvide an employee assistance program (EAP) for services related to counseling, drug testing, fitness for duty, post trauma, domestic violence, and driving under the influence for the Covered Population XMaintain Employee Assistance Program (EAP) documentation for general statistics and individual participation of the Covered Population. XProvide vendor management of Covered Entities sub-contractors for Employee Assistance Programs if assigned to Service Provider by the Covered Entities. XProvide vendor management of States sub-contractors for Employee Assistance Program for contracts existing prior to Contract signing. XConsult with management on supervisory/mandatory referrals for EAP. XMonitor participation if intervention arises in response to disciplinary actions, domestic violence, and drug testing. X For avoidance of doubt, the Parties agree that the handling of workers compensation activities, including contract maintenance, shall be the responsibility of the State and Service Provider will provide reporting assistance to the State as noted below. Workers Compensation Activities Service ProviderStateProvide State policy information as provided by the Division of Risk Management for Covered Population on workers compensation. XUtilize the States Medical Case Management Service Providers claims administration service for trend reports to help identify potential fraud for workers compensation claims. XProcess paperwork and track activities with the States Medical Case Management Service Provider, Risk Management and Medical Office for appointment scheduling and maximum medical improvement status. XMaintain the contract with the States Medical Case Management Service Provider or other provider for administering workers compensation. XAssist and coordinate, as requested by Covered Entities, with the States Medical Case Management Service Provider, Risk Management and medical offices. XConsult with the States Medical Case Management Service Provider, Risk Management and medical offices. XCounsel injured Covered Population and supervisors on work status, reassignment, alternative/light duty, and return to work, monitor documentation, assist Covered Entities in providing reasonable accommodations and track Covered Entities approval of disability leave. XConduct investigation of accident, update web-based case management tool provided by the States Medical Case Management Service Provider and report to the States Risk Management office. Report suspected fraud. XOffer appropriate employment when employee reaches maximum medical improvement. XReceive, track and manage via a web-based case management tool the first report of injury for workers compensation through the claims process and provide to the Division of Risk Management an Occupational Safety and Health Act report. X Employee Relations Activities Service ProviderStateDefine the appropriate questions, testing period and scoring criteria for the law enforcement promotion exam. XAdminister the semi-annual law enforcement promotion exams as defined by the State. XProvide a KMS tool to aid Covered Entities supervisors in issue resolution. XProvide a web-based unemployment compensation tracking and reporting tool. XConduct on-site assessments of work environment for reasonable accommodation in accordance with ADA. XInvestigate and prepare recommended responses to veterans complaints, Americans with Disabilities Act requests, equal employment opportunity complaints, discrimination complaints and negotiate settlements. XContact Risk Management for name and address of attorney; forward relevant documents (equal employment opportunity file, personnel files of plaintiff and defendant, etc.) to attorney. XReview Interrogatories, production request and admissions, in conjunction with legal services (litigation). XPrepare investigative plan, conduct interviews, gather information, forward to attorneys and prepare a written report of findings (litigation). XParticipate in fact-finding conferences, mediations, make court appearances, and/or negotiate a settlement in conjunction with legal services (litigation). XReceive and develop position statements; review complaint for jurisdiction, standing, and timeliness (discrimination). XPrepare investigative plan, investigate allegations, conduct interviews with complainant, witnesses, and subject(s), and prepare a written report of findings (discrimination). XParticipate in fact-finding conferences, mediations, make court appearances, and/or negotiate a settlement in conjunction with legal services (discrimination). XThrough a web-based case management tool, Service Provider will receive and track ADA requests, EEO complaints and discrimination complaints and forward to Covered Entities for processing. XReview all Requests to Campaign and Hold Office for compliance with the federal Hatch Act; forward request to department Secretary for approval; forward request to the Department for approval; notify employee and management if request was approved or denied. XReceive, document and forward to the employees supervisor within one (1) business day any grievances that were received by the Service Provider, for processing. XPrepare agency response to grievances and notify employee of grievance resolution. XReview, approve and consult on disciplinary standards including actions and grievances. XCoordinate predetermination procedures. XConduct disciplinary investigations and prepare documentation and appropriate letters. XRepresent State Agencies at Step 3 grievance meetings and arbitration, conduct consultations with union, and prepare response. XRepresent State interests in appeals to the Public Employee Relations Commission (PERC), administrative hearings, and court actions. XRecommend, monitor, and track temporary re-assignments based on pending disciplinary actions. XProvide collective bargaining agreement technical assistance, interpretation and consultation XGather and compile collective bargaining agreement and Labor Relations technical data. XRespond to requests for information on unemployment compensation; verify and approve quarterly invoice payment; attend and present cases at unemployment compensation hearing and track unemployment compensation. XProvide mediation and conflict resolution services. XProvide to the State, the Covered Population membership data in a MS format or PDF file, only as requested and approved by the Chief Labor Negotiator or the Department. XProvide a web-based tool for managers to assist in tracking and management of grievances and disciplinary actions. X State Policy and Other Miscellaneous Programs Activities Service ProviderStateProvide executive support and consult with managers on strategic plans and agency goals and development. XServe as a member of executive management team in achieving goals as directed by agency head to include but not limited to accreditation and quality management. XRepresent State Agencies in initiatives and external and State matters. XAdminister awards program for State Agencies, including awards criteria. XAccept, evaluate, track, and report nominations and process awards (cash, plaques, certificate, etc.). XAdminister program for length of service awards and track employee recognition. XMaintain contract and solicit community partnerships for mentoring program. XAdminister the Charitable Campaign Fiscal Agent contract. XAssist the Covered Entities in administering home-based work program and provide an indicator of employee participation. XProvide consultation and facilitation services to the agency related to process analysis, performance measures, team facilitation, and meetings. XPerform quality assurance, auditing and certification. XPerform other accounting functions for State Agencies. XProvide a report and assist Covered Entities in developing and administering Annual Affirmative Action Plan and goals for the State, as part of the Virtual Center of Excellence consulting hour maximum. X Staffing Administration Description. The objective of the Staffing Administration Services Section is to provide a descriptive list of Tasks that Service Provider and the State will which are associated with the following activities: Recruitment and Selection Employee In/Out Processing Recruitment and Selection ActivitiesService ProviderStateProvide web-based self-service accessibility to information for Covered Population on applicant, selection, and termination processing.XDevelop and maintain an automated web-based solution to drive recruitment efficiency and effectiveness. XProvide consultation, assistance, and training for Covered Entities managers and liaisons regarding recruiting of highly qualified applicants and assist with the identification of necessary knowledge, skills, and abilities required to perform the mission of the Covered Entities. However, if it is approved by the Project Manager, Service Provider will provide consultation services (Virtual Center of Excellence) counted toward the consulting hour maximum to assist the State in such recruiting.XXManage integrated marketing campaigns to attract and appeal to top candidates.XAssist supervisors in developing sourcing competencies for the recruitment and retention of potential candidates.XAs requested by Covered Entity, advertise vacant positions by function on the web.XAs requested by Covered Entity, advertise vacant positions by other media, if directed and funded by Covered Entity.XAttend and represent agency at job fair for specialized recruiting.XReceive, log, screen for qualifications and track applications for State employment in Covered Entities via web-base self-service tools. Provide capability for applicants without access to a web browser. XForward applications to managers denoting any deficiencies for minimum qualifications and positional requirements or additional attributes as requested by the Covered Entities.XProvide a web-based self-service EEO tracking form for the candidate to self-elect status. Provide capability for applicants without access to a web browser.XMaintain applicant pool of qualified candidates and store for match against future vacancies based on screening and qualification criteria as identified by Covered Entities. XProvide a manager self-service tool for the Covered Entities to maintain information related to agency selection information and evaluation of a candidates qualifications. XAdminister executive recruitment and specialized recruiting programs and develop/approve recruiting materials. XReview selection recommendations for qualifications, equal employment opportunity considerations, veterans preference, salary recommendation and maintain information in accordance with State requirements.XAssist through the Virtual Center of Excellence Covered Entities with development of recruitment strategies to address occupations where the State is experiencing difficulty in attracting and retaining qualified employees. XDevelop agency specific policy, procedure and directives and communicate to Service Provider. X Employee In/Out Processing Activities Service ProviderStatePerform employment verification for new hires of Covered Entities.XPerform reference checks for new hires of Covered Entities.XBased on State provided requirements, verify licensing (e.g. commercial drivers license), certification and educational requirements for new hires within the Covered Population.XBased on State provided requirements, verify, via the web-based case management tool, with each Covered Entitys legal department employment eligibility under the Immigration and Naturalization Act, Selective Service Act, and other relevant employment laws and maintain current documentation electronically.XNotify applicants of their status/result of application with a predefined format letter.XDefend State and agency selection decisions.XPerform internal employment verification and Inspector General reference checks.XProcess fingerprints for all new hires of the State as required within their job profile. XProvide information as received from the applicant during the new hire process to Florida Department of Law Enforcement/Federal Bureau of Investigation or other entities as necessary for criminal background checks and document submission to Florida Department of Law Enforcement/Federal Bureau of Investigation or other entities.XProvide a weekly file of Covered Population, whose job description indicates a Drivers License is a requirement of employment and job responsibilities, to the Department of Highway Safety and Motor Vehicles. Receive report from Department of Highway Safety and Motor Vehicles of employees that resulted in driving offenses, as specified by the State, and notify Covered Entities of employees offenses. Flag the drivers record accordingly. XFCIC/NCIC report on each recommended applicant (law enforcement and sensitive position).XVerify student status when necessary to exceed statutory cap for OPS employment hours as provided in Section 110.131, Florida Statutes.XDistribute new hire materials supplied by State or Covered Entities and provide material from Covered Entities on unique policy, procedure and directives in new hire kit.XProcess, from a pool of pre-screened and qualified candidates, same day hires for declared disasters of the State.XSource and maintain a pool of pre-screened qualified candidates, for seasonal and same day hires required by the Department of Agriculture and Consumer Services.XGenerate a new hire packet and personnel action requests (appointment status, rate of pay, employee data, funding source) as triggered by work or life event changes of the Covered Population.XProvide a web-based tracking tool for the Covered Entities to capture the issuance and collection of State property upon separation of employee to include identification cards, cellular phones, pagers, personal computers, guns, security equipment, security access cards, telephone cards, Diners Club, and other State sponsored cards.XSend electronic notification to Covered Entities named contact for new and separating employees.XEstablish a named contact at each Covered Entity for receipt of new and separating employee information for purposes of processing e-mail accounts, building access and other Covered Entity specific purposes.XIssue employee identification cards, security cards, and other property and designated cards (agency specific).XCoordinate mandatory State training provided by the Service Provider new for hires.X Records Services Description. The objective of the Records Services Section is to provide a descriptive list of Tasks that Service Provider and the State will perform which are associated with providing records management information and reports to the Covered Entities. The Records Activities apply to all Functions covered by this Contract, as appropriate. Records ActivitiesService ProviderStateMaintain electronic and/or imaged documents related to contact information, appointment information, salary and changes to base rate of pay information, performance evaluations, other compensation information, code of conduct forms, W-4s and attendance records and confidential medical related information maintained for Covered Population.XRetain and store all paper records, including personnel files, for all employees who are part of the Covered Population.XMaintain confidential psychological/medical services and evaluation documentation for Covered Population as required by the employee assistance support (EAP) services.XMaintain three (3) calendar years of personnel data on-line for access via self-service for Covered Population. This data will be made available via the Service Providers system for all records from the point of the actual transition of responsibility. Provide capability for managers and Covered Population without access to a web browser.XRetain all COPES view data as provided by the State at Transition. Such data contains all transactional data since inception of COPES. XRetain and store historical records, including personnel files, for all employees who have terminated prior to the transition to the Service Provider and/or are not part of the Covered Population.X Interface Services Description. The objective of the Interface Services Section is to provide a descriptive list of the Tasks Service Provider and the State is to provide associated with the delivery of Interface Services. The Interface Activities apply to all Functions covered by this Contract, as appropriate. The Service Provider shall provide an Interface Plan, in accordance with Section 2. 2. Interface Activities Service ProviderStateProvide a regularly scheduled standard data file feed to the States Bureau of State Payrolls data center in Tallahassee, Florida for payroll processingXProvide regularly scheduled FTP or XML data file feeds, in a standard format, between the State or its designee and the Service Provider for performance of the Functions within this Contract. File feeds will include employee indicative data, raw time data, and reports. XProvide regularly scheduled FTP or XML data file feeds, in a standard format, between the State or its designee and the Service Provider for performance of the Functions within this Contract. File feeds will include employee changes to indicative data for Users of the Services under Benefits Administration and changes to the costing elements of the Plans. XSelf-service tools will be structured in a menu driven format to streamline the navigation process in support of administrative transactions for Covered Population.X Contingency Operations Services Description. The objective of the Contingency Operations Services is to provide a descriptive list of the tasks the Service Provider will perform which are associated with providing continuing operations in the event of a disaster that renders the Service Providers facility inoperable. The Contingency Operations Activities apply to all Functions covered by this Contract, as appropriate. The Service Provider shall provide Business Continuity Plan, in accordance with Section 2.2. Contingency Operations ActivitiesService ProviderStateMaintain a contingency site for business continuity and disaster recovery as defined within the Contingency Plan.XMaintain backup systems for all State and Covered Entities employment files and employee indicative data maintained on Service Providers system as maintained under this Contract by the Service Provider.XTest Contingency initially until successful and once per year thereafter XPursuant to Business Continuity Plan, if disaster does not preclude operations at one or the other of the Service Centers, Service Provider shall provide 25% of then current staff capacity from the impacted center within 72 hours of a disaster. Adjusted Performance Metrics shall be addressed in the Business Continuity Plan. X 2.4 State Information and Access. Upon execution of the Contract, the Department shall, in accordance with this Contract, provide the Service Provider, with timely information and access to the States operating guidelines, policies, procedures, information systems and databases, leadership, management and employees in order for the Service Provider to perform the Services contemplated in this Contract, including providing Deliverables. 2.5 Failure to Meet Due Dates. Both parties acknowledge that time is of the essence. The Service Provider acknowledges the importance of meeting the Go-Live Dates established in Section 2.1. Further, the Service Provider acknowledges that in order to do so, it is imperative that it provide the Deliverables to the Department within the timeframes established in Section 2.2. Accordingly, unless excused by other provisions in this Contract, in the event the Service Provider fails to meet any of the Go-Live Dates or fails to provide any of the Deliverables by the established dates, the Service Provider shall pay the Department as set forth below. In accordance with performance based contracting principles and practices, the Parties agree that this payment is not a penalty but is a stipulated damage by the Parties for the Departments staffing costs associated with Service Providers unexcused delay in implementation of the project. These payments to the Department and the provisions of this paragraph shall not preclude the Department from seeking its actual delay damages regarding matters other than staffing. Due DateStipulated Damages due per day for staffing costs associated with failure to meet Due DateStaffing Administration Go Live5/1/2003$3,848.00Human Resources Administration and Payroll Administration Go Live6/1/2003$12,958.00Benefits Administration1/1/2004$2,653.00Transition PlanWithin 10 days after Contract Execution$2,000.00Work Plans Within 10 days after approval of Transition Plan$2,000.00Security PlanWithin 10 days after Contract Execution$2,000.00Migration and Interim Services PlanWithin 180 days after Contract Execution$2,000.00 2.6 Support Resources. To support the Services specified in this Contract, the Service Provider will make available the following resources: Dedicated Human Resource (HR) Service Center. The Service Provider shall maintain a HR Service Center staffed by Service Provider HR Specialists dedicated solely to providing Services under the Contract. It is expected that the dedicated unit will handle all Services, Activities and Tasks identified in Section 2.3. The HR Service Center may be supported by other non-dedicated units to handle periodic increases in call volumes. The Department will provide to the Service Provider throughout the Term of the Contract any available information, including but not limited to historical contact data concerning volume, call lengths, contact types, nature of contact, contact handling time, which could reasonably be expected to have a material impact on contact volumes, handling and staffing to support the Service Provider in its efforts to staff and effectively perform the Services (Information). The Department makes no representations that such Information exists. The Service Provider will use the Information and historical data (collectively Forecast Data) only for purposes related to Service Providers performance of the Services. The Services under the Contract will be provided from two Service Provider Florida sites Tallahassee and Jacksonville. Staffing. The Service Provider shall provide sufficient staff whose skills and experience match specific job requirements Services, Activities and Tasks identified in Section 2.3 to effectively perform the Services. Training. During the Final Preparation Phase of the Work Plan, the Service Providers staff who perform the Services under the Contract will be oriented and trained and sufficiently knowledgeable about the Services to be provided by the Service Provider. The Service Provider shall monitor its HR Specialists for quality assurance (includes call handling skills, case handling and required follow-up). The Service Provider will include advisory notices pertaining to monitoring calls that are subject to quality assurance monitoring Other Resources. The Service Provider shall maintain other resources sufficient and necessary for it to perform Services to develop, in consultation with the Department, the functional rules and requirements for the Service Providers systems in order for the Service Provider to provide the Services. The functional rules and requirements include system connectivity, interface requirements, Plan rules and procedural requirements. Management Systems. The Service Provider shall maintain an adequate system for data collection and analysis in connection with its provision of the Services. 2.7 Systems and Telecommunications. The systems required to provide support of the Functions are as follows: Network Connectivity: State Access: The Service Provider will allow system access into the Service Provider's local area network for State Human Resources Administration Offices on a read-only basis. Covered Population data will be viewed through a web browser from State desktops. The State shall use its best efforts to ensure its Covered Population has access to the Internet and sufficient computer processing capability for purposes of engaging in employee self-service and manager self-service. Service Provider Access: The State will allow Service Provider system access into the States systems, applications, web sites, time reporting system, and other systems, as needed, to support the Functions as described in Section 2. If the States systems become inaccessible for any reason, the Service Providers technical Help Desk will coordinate with the States technical Help Desk to determine the course for problem identification and resolution. Participant Data Interfaces: The Service Provider will provide a database repository for all personally identifiable information pertaining to the Covered Population and their related benefits under the Plans (Data). The State will provide the initial data load of Data in the Service Provider standard interface structure. Once the initial Data is loaded, the State will supply, each business day, a refresh file with the appropriate new and changed Data. This refresh process will take place until the time that the Service Provider begins the provision of the Services for the Covered Population. HR Service Center Integration: The Service Provider will provide its HR Specialists with the desk top configuration necessary to support the Contract. Service Provider desktops will include a telephone, personal computer, Internet access, and Local Area Network (LAN) connectivity and emulation software for access into the States system. When applicable, the Call Manager, a computer based unit which routes telephone calls to the Service Providers HR Specialist, will accept information through an interface subsystem that will produce a screen pop of the call record displaying Covered Population Data such as social security number, name, address, company, and employee status of the caller. The HR Specialist shall enter information about the Case into the Case Management System for resolution by the Service Provider or State, as applicable. Voice Connectivity: The Service Provider will receive calls in support of the Services on a Service Provider owned toll free line (or TDD) and will provide a front end IVR for the Covered Populations use. The Service Provider shall assign to the State the right to use a certain toll free telephone number, which may be used by the State only through the Service Provider and only during the Term of the Contract. Unless otherwise mutually agreed to by both Parties, upon the expiration or any termination of the Contract, the State shall no longer be authorized nor have any right to use, and shall no longer direct any person or entity to call, such toll free telephone number and the Service Provider may inform any callers on such toll free telephone number that the Service Provider is no longer taking calls for the State. The Service Provider will provide call transfer capabilities to other toll free numbers and a Warm Transfer of callers to the appropriate resource at the State. The Service Providers Call Manager system will manage and route calls from the switch to the appropriate Service Center team. E. SAP HR or Other Software Supporting Services: Service Provider will use SAP R/3 HR (or other comparable commercially available software which the parties mutually agree upon) to provide the foundation functionality required to manage Services covered under the Contract for Covered Population (HR Software). The Service Provider will be responsible for the license, configuration of rules and maintenance of the HR Software application. Further, the Service Provider shall use versions of the components of the HR Software that are currently maintained and supported by their third party vendors. In providing Services under this Contract, Service Provider may configure within the production HR Software certain Parameters, Master Data, File Interfaces and Other Custom Code (Configurations). Provided that such Configurations are done to solely meet States business and functional requirements pursuant to this Contract, such Configurations are deemed HR Configuration. HR Configuration shall only include: Parameters Service Provider will configure HR Software system settings, rules, and standard reports to allow the processing of transactions within the HR Software. Master Data Service Provider will configure a master data file to be used in the processing within the HR Software. File Interfaces Service Provider will develop HR Software file interfaces for the purpose of receiving and transmitting State specific data to medical and insurance carriers, payroll files, States accounting and data warehouse systems, and third party data processing partners. Service Provider will be responsible for modifying the portion of inbound and outbound interfaces created by the Service Provider to be compatible with the Florida Financial Management Information System (FFMIS). Other Custom Code Service Provider will develop HR Software User Exits or other custom code to support State specific requirements, to include source and object code. Reports Any custom reports developed by Service Provider which are not part of the standard reports offered by the HR Software. HR Configuration shall not include any HR Software delivered source code or object code. However, HR Configuration shall include all training manuals, user manuals, specifications, and other materials in written form prepared for the HR Configuration by the Service Provider, including any updates or modifications thereto. F. Knowledge Management System (KMS): A KMS will allow HR Specialists, State managers and the Covered Population to access State defined policies and procedures. The Service Provider will be responsible for the license, authoring, updating, and modifying the content of the KMS tool. The State shall own only Plan and policy information as provided to the Service Provider. The Department shall have the sole responsibility for the final approval of the Plan and policy variable content contained within the KMS tool. With respect to the Service Provider, the above systems, applications and software and any other Service Provider provided software, systems or applications are trade secrets, as defined in Section 812.081, Florida Statutes, and are confidential and exempt from disclosure under Chapter 119, Florida Statutes. 2.8 Performance Metrics. 2.8.1 General The Performance Metrics described herein shall apply to the delivery of Services to State by Service Provider during the term of the Contract. Upon completion of the Blueprint Phase, the Department shall approve methodology and calculation of the Performance Metric definition and shall agree with the Service Provider to a specific standard of performance within the Standard Range (Performance Metric) set forth herein for each Performance Metric, and the Contract shall be amended accordingly. The Service Provider shall comply with the Performance Metric identified during the Blueprint Phase throughout the duration of the Contract. The Parties have classified Performance Metrics into two levels: Critical and Important. This classification is intended to ensure the Service Provider is properly focused on the Performance Metrics most significant to the Department. The Performance Metrics shall be measured each month and reported to the Department by Service Provider in accordance with Section 2.8.3. 2.8.2 Performance Credits Commencing ninety (90) days after transition from the State to the Service Providers workforce, in the event the Service Provider fails to meet the Performance Metrics in accordance with this Section, the Service Provider shall credit the Departments monthly invoice(s) as provided herein. a. If Service Provider fails to meet the same Critical Performance Metric for two consecutive months, Service Provider shall credit the Departments next monthly invoice in the amount of one thousand dollars ($1,000.00). b. If the Service Provider fails to meet the same Critical Performance Metric for a three consecutive months, the Service Provider shall credit the Departments next monthly invoice in the amount of twenty thousand dollars ($20,000.00). For example, if a Performance Metric is not met for each of the months of March, April and May 2004, the Service Provider shall credit the Departments May 2004 invoice in the amount of $1000 and its June 2004 invoice in the amount of $20,000.00. c. If Service Provider fails to meet the same Critical Performance Metric for more than three (3) consecutive months, the Service Provider shall credit the Departments invoice in each subsequent month invoice in the amount of seven thousand dollars ($7,000.00) for each month the Critical Performance Metric in excess of three months is not met. For example, if a Performance Metric is not met for each of the months of March, April, May, June and July 2004, the Service Provider shall credit the Departments May 2004 invoice for $1,000, the June 2004 invoice in the amount of $20,000, the Departments July invoice in the amount of $7,000.00, and the Departments August invoice in the amount of $7,000.00. e. Upon mutual agreement of the Parties, Performance Metrics may be suspended from time to time for certain special circumstances including, but not limited to, annual enrollment in the Plans. Accordingly, upon the resumption of adherence to the Performance Metrics, the suspended or excused months shall not be used for purposes of any calculation of Performance Credits. For example, assume that for the period January through July 2004, Performance Metrics during the months of March and April are suspended or excused. The following chart illustrates the months to be considered when calculating whether a Performance Credit shall be applicable: January - the first consecutive month February - the second consecutive month May - the third consecutive month June - the fourth consecutive month July - the fifth consecutive month Suspension of a Performance Metric for a month shall not excuse Service Provider from accumulating data relevant to that Performance Metric for that month and reporting such data to the Department as part of the management reports delivered pursuant to the Contract. f. Notwithstanding anything to the contrary, the total of any and all Performance Credits paid or to be paid by Service Provider pursuant to this Contract shall not exceed two hundred fifty thousand dollars ($250,000) for any calendar quarter. 2.8.3 Reporting The Service Provider shall provide the Department with a report for each Performance Metric by the 5th day of each month for the previous month. Each report shall indicate whether the Service Provider met the Performance Metric for the Performance Metric and shall include all supporting data. Any Performance Credit due shall be reflected on the Departments invoices in accordance with Section 2.8.2. 2.8.4 Relief from and Adjustment of the Performance Metrics The Parties shall negotiate in good faith to provide prospective relief from or to amend the Performance Metrics in the event that Service Provider is taking all reasonable actions to promptly remedy the cause of the failure to achieve the Performance Metrics. During the period that additional employees are retained to provide Services as a result of a Change Order or mutually agreed upon modifications to the Services the appropriate adjustment shall be made to the Exceptions paragraph of the Performance Metrics to reflect additional capacity based upon per employee capacity. 2.8.5 Performance Metrics 1. The following Performance Metrics apply to all Functions: Performance Metric 1 - Authorized Access Management Percentage Definition: Authorized Access Management Percentage for any month shall mean the number of times Authorized Access Entry into the States database maintained by Service Provider (States DB) divided by number of times the States DB was accessed for the month. Authorized Access Entry shall mean a valid User of the States DB information as defined within an approved User Profile. All unauthorized access will be reported to the Departments Project Manager within one (1) hour of identification by the Service Provider. Priority: Critical Standard Range: Greater than or equal to ninety-nine percent (99%). Performance Metric 2 - Security Profiles Percentage Definition: Security Profiles Percentage for shall mean the number of times Service Provider assigns to a member of the Covered Population a unique security profile, as defined by the Department, within one business day of a status change to such Covered Population members master record divided by the total number of status changes occurring during the month. Priority: Critical Standard Range: Greater than or equal to ninety-nine percent (99%). Performance Metric 3 - Self-Service Availability Percentage. Definition: Self-Service Availability Percentage for shall mean the time that the Web and IVR are available to the Covered Population divided by the sum of the time the Web and IVR are to be available to the Covered Population as provided for in Section 2 during the month. Measure assumes 7 days a week, 24 hours per day of availability. Any downtime related to a major system enhancement will be agreed to in advance by the Parties. Priority: Critical Standard Range: Greater than or equal to ninety-seven percent (97%). Performance Metric 4 --Cycle Time of Fulfillment Percentage Definition: The Cycle Time of Fulfillment Percentage shall mean, the number of times the Service Provider has mailed information requested by a member of the Covered Population within three (3) business days of receipt of the request, divided by the total number of requests for written information submitted by Covered Population. Priority: Important Standard Range: Ninety eight percent (98%). Performance Metric 5 Abandon Rate Percentage Definition: The Abandon Rate Percentage shall mean the number of inbound calls from the Covered Population and Covered Entities that are answered by Service Provider divided by the number of calls offered to Service Providers queue. Service Provider is not accountable for calls received in which a caller hangs up while the call is being routed, prior to being offered to the Service Providers queue or within twenty (20) seconds of entering the queue. Priority: Important Standard Range: Less than or equal to three percent (3%). Performance Metric 6 - Telephone Answer Speed Definition: Telephone Answer Speed Percentage shall mean the number of Covered Population calls (less abandoned calls) which are answered by a HR Specialist within twenty (20) seconds of the first call ring upon exiting the VRU, divided by the total number of Covered Population calls received by the HR Specialists (less abandoned calls) during the month. Priority: Important Standard Range: Greater than or equal to eighty percent (80%). Performance Metric 7 - Forced Disconnect Percentage Definition: The Forced Disconnect Percentage shall mean the number of calls that are prevented from entering the queue to the HR Specialists (Forced Disconnect) divided by the total number of calls received by the HR Specialists during the month. If Forced Disconnects are necessitated due to exceeding queue capacity, the Service Provider shall notify the State within thirty (30) minutes of the queue capacity being exceeded to approve commencement of continued Forced Disconnects or to approve extension of time allowed for calls to reach the Service Providers HR Specialists. Priority: Important Standard Range: Less than or equal to two percent (2%). Performance Metric 8 Service Center Contact Answer Percentage Definition: The Service Center Contact Answer Percentage for any month shall mean the number of email messages, written correspondence, or inquiries received by Service Provider requiring a response, that are answered within two (2) business days of Service Providers receipt divided by the total number of such email messages, written correspondence or inquiries received during the month. Acknowledgement of inquiry or request must take place by the end of the next business day. Priority: Important Standard Range: Greater than or equal to ninety-five percent (95%). Performance Metric 9 - Call and Case Quality Percentage Definition: Call and Case Quality Percentage shall mean the number of contacts that are accurate based on the total number of accurate calls determined through quality monitoring divided by the total number of calls and/or cases monitored for Accuracy by Service Provider in providing the Services during the month. Accuracy means that calls and/or cases monitored shall be accurate and timely based on predefined criteria established by Service Provider and agreed to by the Department . Priority: Critical Standard Range: Greater than or equal to ninety-five percent (95%). Performance Metric 10 - Case Investigation Resolution Percentage Definition: The Case Investigation Resolution Percentage shall mean the number of case investigation requests received by HR Specialists from State that are resolved within two (2) business days divided by the total number of such requests received during the month. For the purpose of this Performance Metric, resolved means: (i) that the case investigation has been closed, or (ii) that the Service Provider has requested (from the Covered Population, or State or other third party Plan service provider) all information or data necessary to resolve the case investigation and is awaiting such information or data. Priority: Important Standard Range: The average of the Case Investigation Resolution Percentage for each month of the measuring period shall be greater than or equal to TBD, provided, however, that in any month in which the number of case investigation requests is less than 100, the standard shall be deemed to be met if the number of Case Investigation Resolutions is equal to the number of case investigation requests received reduced by three. Performance Metric 11 Data Input Accuracy Percentage Definition: Data Input Accuracy Percentage shall mean with regard to information received from the Covered Population, the total number of error free data entries divided by the total number of data entries into the system monitored for Data Accuracy by Service Provider during the month, including the accuracy of maintaining the EEO and Gender Parity information needed for reporting purposes. Priority: Critical Standard Range: Between ninety-five percent (95%) and ninety-nine percent (99%). Performance Metric 12 Customer Satisfaction Rating Definition: Customer Satisfaction shall mean the percentage of employees, managers, supervisors, personnel officers, applicants and retirees who are receiving timely and accurate Services from the Service Provider. For the first year, the Service Provider will utilize the survey format previously administered by the Department indicating performance and quality monitoring of Services provided and customer satisfaction surveys will be conducted to ensure overall satisfaction of service received. During the Business Process Blueprinting, the parties will agree upon any improvements to the customer satisfaction structure and corresponding impact to the Performance Metrics. Priority: Important Standard: The average Customer Satisfaction Rating for the first year period shall be greater than or equal to ninety percent (90%). 2. The following Performance Metrics only apply to Payroll Administration Services Performance Metric 13 Payroll Time and Attendance Data Accuracy Percentage Definition: The number of Covered Population time and attendance data entries processed accurately divided by the total number of Covered Population time and attendance data entries received by Service Provider via a web-based self service tool to process during the month. Priority: Critical Standard Range: between ninety-seven percent (97%) and ninety-nine percent (99%). Performance Metric 14 Post Leave/Attendance Data Percentage Definition: The Post Leave/Attendance Data Percentage for any month shall mean the number of times Service Provider posts leave and attendance data received by Service provider to the web for viewing and printing in PDF format within one (1) business day divided by the total number of times Service Provider receives such data to post during the month. Priority: Important Standard Range: between ninety-seven percent (97%) and ninety-nine percent (99%). Performance Metric 15 Pay Affecting Adjustments Accuracy Percentage Definition: Process the Covered Populations employees compensation data as received from the State within the predefined cut-off dates in accordance with Bureau of State Payrolls annually published deadlines for payroll cycle. Priority: Critical Standard Range: Between ninety-eight percent (98%) and ninety-nine percent (99%). 3. The following Performance Metrics only apply to Benefits Administrative Services: Performance Metric 16 Process Status Change Percentage Definition: The Process Status Percentage for any month shall mean the number of times Service Provider processes the Covered Populations elections related to miscellaneous deductions, benefit enrollments, status changes or terminations within five (5) business days of Service Providers receipt of a status change request or prior to the next scheduled payroll submission schedule as established by the Bureau of State Payrolls, whichever is sooner, divided by the total number of times Service Provider receives such status change request during the month. Priority: Important Standard Range: Between ninety-seven percent (97%) and ninety-nine percent (99%). Performance Metric 17 Process Retiree Status Change Percentage Definition: The Process Retiree Status Percentage shall mean the number of times Service Provider processes the retirees in the Covered Populations benefit elections within three (3) business days of Service Providers receipt of a status change request divided by the total number of times Service Provider receives such status change request received during the month. Applications for Retirement received from Covered Population will be forwarded to the Division of Retirement within three (3) business days. Priority: Important Standard Range: Between ninety-seven percent (97%) and ninety-nine percent (99%). 4. The following Performance Metrics only apply to Human Resource Administration Services: Performance Metric 18 Process Classification and Organizational Changes Percentage Definition: The Process Classification and Organizational Changes Percentage shall mean the number of times Service Provider processes requests for Covered Populations classification changes of the Covered Population to an employees record and changes to the organization structure of the Covered Entities to a Covered Entitys Organization Chart and Structure within five (5) business days of Service Providers receipt of such change request divided by the total number of times Service Provider receives such change requests received during the month. Priority: Important. Standard Range: between ninety-seven percent (97%) and ninety-nine percent (99%). Performance Metric 19 Process Grievance Percentage Definition: The Process Grievance Percentage for any month shall mean the number of times Service Provider forwards grievances received from the Covered Population to the Covered Populations supervisor within one (1) business days of Service Providers receipt divided by the total number of times Service Provider receives such grievances during the month. Priority: Important Standard Range: Between ninety-seven percent (97%) and ninety-nine percent (99%). 6. The following Performance Metrics only apply to Staffing Administration Services: Performance Metric 20 Process Requests for Vacancies Percentage Definition: The Process Requests for Vacancies Percentage shall mean the number of times Service Provider processes a valid request from State to advertise a vacant position on the web within one (1) business day of Service Providers receipt of such request divided by the total number of times Service Provider receives such a request during the month. Priority: Important Standard Range: Between ninety-seven percent (97%) and ninety-nine percent (99%). Performance Metric 21 Process Requests for Applicant Packages Percentage Definition: The Process Requests for Applicant Packages Percentage shall mean the number of times Service Provider provides to the Covered Entities hiring manager an applicant package via the web within three (3) business days of a job advertisements closing divided by the total number of valid applicants received during the month. Priority: Critical Standard Range: Between ninety-seven percent (97%) and ninety-nine percent (99%). 7. The following Performance Metrics only apply to Records Services: Performance Metric 22 Imaging Percentage Definition: The Imaging Percentage shall mean the number of times Service Provider scans and indexes to a Covered Populations record within five (5) business days of Service Providers receipt of documents to be scanned and imaged divided by the total number of times Service Provider receives such imaging requests during the month. Priority: Important Standard Range: Between ninety-seven percent (97%) and ninety-nine percent (99%). The following Performance Metrics only apply to Interface Requirements: Performance Metric 23 Transmission and Processing Interfaces Definition: On a monthly basis, the total number of transmissions and interface files processed within the pre-defined timeframes divided by the total number of files processed during the month. Priority: Critical Standard Range: Greater than or equal to ninety-nine percent (99%). The following Performance Metrics only apply to Contingency Operations Services: Performance Metric 24 Disaster Recovery Percentage Definition: The Disaster Recovery Percentage shall mean the number of times Service Provider restores SAP application and database functionality for key Services provided to the Covered Population within twenty-four (24) hours of disaster affecting the Service Providers data center in Jacksonville, Florida divided by the total number of times Service Provider is to restore such database operations after a disaster during the month. Maximum data to be restored must not exceed one (1) business day of transactions. Priority: Critical Standard Range: Greater than or equal to ninety-nine percent (99%). F. Performance Metric Default The inclusion of Performance Metrics and the related Performance Credits in this Agreement is intended to cite unsatisfactory performance in the context of ongoing operations without resort to the Default Remedies set forth in Section 7 of the Contract. If Service Providers performance falls below the minimum level of performance set forth in this Contract for three (3) consecutive months, and such failure is not otherwise excused, then the Department may follow the process outlined in Section 7.4.3in lieu of any Performance Credits. G. Excused Performance Failures The Service Provider shall be excused for failing to meet any Performance Metric if any one of the following occurs: A. Such failure is caused by the acts or omissions of the Department, any State Agency or Users, or third parties, other than the Service Providers subcontractors providing Services to or for the Department (including telecommunications carriers), including a) The Departments or a third partys system is down; b) The Department or a third partys infrastructure fails; and/or c) The Service Provider is unable to access the Department or a third partys system and/or process transactions because of the Department or third partys systems; In the event any of the foregoing, the Service Provider will make all reasonable efforts to handle the call volume and transaction activity to achieve the Performance Metrics. B. Performance Metrics shall not apply during scheduled system maintenance down times, major system enhancements and during Force Majeure events or occurrences. 2.9 Hours of Service Provider Operations. Service Center The Service Provider shall have and will continue to maintain a toll-free number available to receive calls from the Covered Population. The Service Provider shall answer and respond to calls, Monday through Friday between 8:30 a.m. and 5:30 p.m. Eastern Time excluding Service Provider observed holidays described in Section 2.9(C). Scheduled system maintenance will be performed by the Service Provider on Sundays between the hours of 2:00 a.m. and 6:00 a.m. Eastern Time. For major systems enhancements, the Service Provider will coordinate with the Department the required down time window to minimize the impact in provisioning Services. Integrated Voice Response (IVR), Web Self Service, or Messages - The hours of operation for the IVR and web self-service will be seven (7) days a week, twenty-four (24) hours a day, with the exception of one hour of daily scheduled system maintenance performed between the hours of 2:00 a.m. and 6:00 a.m. Eastern Time. The Service Providers HR Specialists will respond, during normal business hours as defined in Section 2.9.A, to voice mail and E-mail inquiries received from the Covered Population after business hours. C. The Service Providers Holidays - The Service Center will be closed during all State observed holidays as established by Section 110.117, Florida Statutes. In addition to these closings, the Service Center will close at 2:00 p.m. Eastern Time on Christmas Eve and New Years Eve. End of Page SectionContract Administration33.1 Contract Management 3.1.1 Organizational Responsibility Matrix. The Parties agree that in order for efficient and effective communication to occur, clear lines of authority and areas of responsibility need to be identified for each Party. The Parties shall maintain an organizational responsibility matrix that denotes the key personnel and their duties relating to this Contract. Each party shall provide the other party their organizational responsibility matrix no later than the completion of the Business Blueprinting Phase. Each Party agrees to promptly notify the other in the event of any change in personnel, address, or phone number. Service Provider shall not replace or reassign or substitute any key personnel for two (2) years from the Effective Date unless the Department consents in writing to such reassignment or replacement, which written consent shall not be unreasonably withheld or delayed. Such consent is not required if such key personnel (i) resigns from Service Provider or takes a leave of absence; (ii) is dismissed by Service Provider for cause; (iii) fails to perform his or her duties or responsibilities pursuant to the Contract; or (iii) dies or is unable to work due to his or her disability. 3.1.2 Notice and Approval of Major Organizational Changes or Changes in Service Provider's Organization. The Parties recognize and agree that award of the Contract is predicated upon features of the Service Provider's business organization as set forth in this Contract. With the exception of a transfer or sale to a wholly owned subsidiary of Convergys Corporation, during the term of this Contract, Service Provider shall not allow a transfer or sale of more than 49.9% of its equity shareholder interests or allow a sale of substantially all of its assets without the prior written consent of the Department, which consent shall not be unreasonably withheld or delayed. Notwithstanding the foregoing, the Service Provider shall provide a minimum of fifteen (15) business days notice to the Department of a transfer or sale to a wholly owned subsidiary. 3.1.3 Cooperative Relationship. To accomplish this Contract effectively and most beneficially for both Parties, the Department proposes to form a cooperative relationship with the Service Provider. This relationship will strive to draw on the strengths of each Party in an effort to achieve quality Services done right the first time, within budget and on schedule. The cooperative relationship will help prevent disagreements and differences from developing into formidable conflicts and disputes. The cooperative relationship and the other provisions of this Contract will not, however, create any partnership, joint venture or joint ownership between the Parties. Therefore, the Parties agree to the following principles: Promoting the timely transition of Services; Ensuring the Services comply with all applicable laws and regulations; Making timely review and decisions; Effectively communicating and providing information promptly; Maintaining quality control and ensuring quality Services; and, Cooperating and being courteous, respectful, and honest with each other. 3.1.4 Meetings. Within thirty (30) calendar days following the Effective Date, the Parties will mutually determine an appropriate set of periodic meetings to be held between them (Meetings) and calendar those Meetings, when possible, at least thirty (30) days in advance of the date of applicable Meeting. These Meetings will include monthly performance review meetings, a quarterly management meeting to review status of ongoing tasks, schedules, changes, problems and such other matters as appropriate, and an annual account planning meeting. For the monthly and quarterly Meetings, the Service Provider shall provide to the Department an agenda for its approval which will not be unreasonably withheld or delayed, at least five (5) days in advance of the scheduled Meeting date. Service Provider will publish and distribute an agenda within forty-eight (48) hours after receipt of the Departments written approval. 3.1.5 Meeting Minutes. The Service Provider shall provide detailed and well-documented minutes for all Meetings. Draft Meeting minutes will be distributed by the Service Provider to individuals who attended the Meeting on behalf of the Department within five (5) business days after the subject Meeting so that any errors can be corrected and items not included can be added by the Service Provider prior to issuance. Within three (3) business days after receipt of the Departments written approval of the draft Meeting minutes, the Service Provider shall provide the Department with final Meeting minutes. 3.2 Change Orders. It is the Parties intent that this Contract addresses the Services the State seeks to outsource to Service Provider with respect to the Functions. The Parties, therefore, agree that neither will seek any changes (including additions, deletions) to the Services or Deliverables (Changes) except based on the following criteria and prior to any Party proposing a Change, such Party must establish in writing, to the other Party, that the below criteria is met: A substantial change in circumstances (substantial meaning changes that cannot be reasonably accommodated with existing Service Providers staff or infrastructure dedicated to providing Services); The change in circumstances was through no fault of the Party seeking the Change; Justification for the Change; The Change advocated was not one already contemplated or discussed during the ITN, or negotiated for during the Contract process; and Funding availability for the Change. Process. To propose a Change, a Partys Project Manager shall deliver a written proposal (the Change Order Proposal) to the Project Manager of the other Party specifying the proposed Change and, (i) specifically identifying the substantial change in circumstances giving rise to a Change Order, (ii) the objective or purpose of such Change, (iii) the requirements and specifications of the deliverables to be delivered pursuant to such Change, and (iv) the requested prioritization and schedule for such Change. The Parties shall cooperate in discussing the scope and nature of the Change Order Proposal, the availability of Service Provider personnel, expertise and resources to provide such proposed Change, and the time period during which such proposed Change will be implemented. Within ten (10) business days of receipt of the Change Order Proposal, the Service Provider shall, at its expense, prepare a written assessment of the Change Order Proposal (the Change Assessment) (i) describing any changes in products, services, assignment of personnel and other resources that the Service Provider believes will be required, (ii) estimating the increase or decrease in Service Provider charges that would be required due to such proposed Change, (iii) specifying how the proposed Change would be implemented, (iv) describing the effect, if any, such proposed Change would have on the Contract, including time for performance (v) estimating all resources required to implement such Change, (vi) describing the delivery risks and associated risk mitigation plans relating to the proposed Change, and (vii) providing such other information as may be relevant to the proposed Change. To the extent that a proposed Change is of such magnitude or complexity that it is not feasible for the Service Provider to produce a detailed Change Assessment within ten (10) business days, the Service Provider shall prepare a summary Change Assessment outlining such details regarding the proposed Change as the Service Provider can ascertain within ten (10) business days, and the Parties shall agree upon a schedule for the production of a more detailed Change Assessment. The Department will timely provide any information or cooperation reasonably requested by Service Provider that is necessary to prepare a Change Assessment and any delay in providing such information or cooperation may delay the Change Assessment submitted to the Department. With respect to active benefit enrollments, the Parties agree to meet each year prior to the end of the January that immediately precedes the annual enrollment to discuss any planned changes to the Plans. Service Provider agrees to use every reasonable effort to accommodate changes within its existing staff. To the extent such changes cannot be handled by Service Providers existing staff, such changes will be addressed pursuant to Section 3.2. Time for Approval. The Department shall review the Change Assessment and respond within ten (10) business days, indicating whether the Department desires the Service Provider to implement the Change pursuant to the Change Assessment and, if so, the Parties shall execute a Change Order, in the form set forth in Exhibit E attached hereto, based upon the Change Assessment. The Change Order, which describes the Changes to be made to the scope of Services and the manner or method of providing the Services, and shall include the fees associated with the Change, the assumptions upon which the fee was determined, the performance schedule, start and expiration dates, Deliverables, if any, and any other terms and conditions the Parties mutually agree upon, shall be made in writing executed by the Secretary and the Service Providers authorized representative and otherwise in accordance with the terms of the Contract. The Service Provider shall have no obligation or authority to commence work in connection with any Change until the written Change Order is signed by the Parties with the same formality of signing this Contract. 3.3 Warranty Disclaimer 3.3.1 Service Provider warrants that the Services shall be delivered in a professional, workmanlike manner in accordance with the standards and quality prevailing among first-rate nationally recognized firms in the industry and in accordance with this Contract. 3.3.2 Service Provider represents that for a period of 90 days from delivery of the HR Configuration, the HR Configuration will operate in all material respects in the manner in which it operated while the Service Provider performed the Services; provided however, the Department has not modified the HR Configuration as delivered and the Department has properly replicated Service Providers environment to the extent such environment is defined in the Blueprint and is necessary to operate the HR Configuration, for which the Department will be responsible to construct. 3.3.3 EXCEPT AS SPECIFICALLY STATED IN THIS CONTRACT, THERE ARE NO OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ANY WARRANTIES CONCERNING IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. 3.4 Employees. 3.4.1 NonSolicitation. Except as expressly authorized in writing in advance or as provided in Section 3.4.4, no Party shall solicit, offer work to, employ, or contract with, whether as a partner, employee or independent contractor, directly or indirectly, any of the other Partys Personnel during their participation in the Services or during the twelve (12) months thereafter. "Personnel" shall mean any individual or company a Party employs as a partner, employee or independent contractor and with which a Party comes into direct contact in the course of the provision of the Services. 3.4.2 No Joint Employees. Neither Party shall be deemed a joint employer of the others employees, each Party being responsible for any and all claims by its employees. Neither Partys employees shall be deemed leased employees of the other Party for any purpose. 3.4.3 Subcontractors. The Service Provider is responsible for its obligations under this Contract even if Service Provider subcontracts certain portions of the Services to subcontractors. 3.4.4 Displaced State Workers. Notwithstanding the above the Service Provider will make every reasonable attempt to provide qualified State workers displaced by this Contract with employment opportunities in performance of this Contract. 3.5 Acceptance. 3.5.1 Time for Acceptance. The Department shall acknowledge its Acceptance or rejection of a Deliverable, or any portion thereof, in writing within ten (10) business days after delivery of the Deliverable. At its discretion, the Department shall be entitled to an additional pool of 30 days that it may use to acknowledge its Acceptance or rejection of one or more of the Deliverables. The Departments failure to acknowledge its Acceptance or rejection of a Deliverable by the end of this period shall be deemed Acceptance of the Deliverable by the Department . 3.5.2 Acceptance Review Process. The Department will conduct its Acceptance review in a manner so as to identify whether the Deliverable materially fails to conform to the requirements of the Contract. If, after inspection, the Department reasonably determines that the Deliverable materially fails to conform to the requirements of the Contract (a Nonconformity), the Department shall notify the Service Provider in writing within ten (10) business days of the Departments receipt of the Deliverable, of any such Nonconformity, specifying in detail any and all basis for the Nonconformity unless the Department has exercised its option to use some or all of the pool of days set forth above to acknowledge Acceptance or rejection of a Deliverable in which case the period to notify Service Provider of any Nonconformity shall be before the expiration of the elected time extension. The Service Provider shall correct such Nonconformity within thirty (30) business days after notice, or proceed on another mutually acceptable basis as set forth in writing. The Department shall then have an additional ten (10) business days commencing upon Service Providers redelivery of the Deliverable to verify that the previously reported Nonconformity has been corrected and to report any Nonconformity caused by the correction of the previous Nonconformity. The Department will act reasonably in determining if any Deliverable should be Accepted and if any Nonconformity has been corrected. End of Page SectionFINANCIAL MANAGEMENT4 4.1 Price and Payment Stream The price for Services shall be Two Hundred Seventy Eight Million, Six Hundred Thousand Dollars ($278,600,000.00) payable to the Service Provider in accordance with the payment schedule set forth in Exhibit F. 4.2 Cost Reduction Proposals. 4.2.1 General. The Service Provider is encouraged to voluntarily develop and prepare cost reduction proposals. If at Service Providers sole option Service Provider elects to develop and prepare a cost reduction proposal, then this Section 4.2 shall govern such proposal. 4.2.2 Cost Reduction Proposal Preparation. The cost reduction proposal shall include the following: A list of the Contract requirements that must be changed if the cost reduction proposal is accepted, including any suggested revisions in the Contract language. An analysis of the difference between the existing Contract requirement(s) and the proposed requirement(s), the comparative advantages and disadvantages of each, and the effect of the proposed requirement will have on Contract performance. A detailed estimate of the amount of cost reduction that will result from implementing the cost reduction proposal. (4) A statement of the effect the cost reduction proposal will have on the Contract completion time or delivery schedule. (5) A statement of the time by which a Cost Reduction Document, as defined in subsection 4.2.4 must be issued in order to achieve the maximum cost reduction, noting any effect on the Contract completion time or delivery schedule. 4.2.3 Department Action. The Department will analyze cost reduction proposals expeditiously; however, it will not be liable for any delay in acting upon a proposal. The Department shall notify the Service Provider in writing of the status of its review of the cost reduction proposal within forty-five (45) calendar days after receipt. If additional time is required, the Department will notify the Service Provider in writing within the forty-five (45) day period of the expected date of its decision whether to accept or reject the cost reduction proposal. If the cost reduction proposal is not accepted, the Department will notify the Service Provider in writing. If the Department fails to accept or reject the cost reduction proposal within such forty-five (45) day period or such extended period, as applicable, such cost reduction proposal is deemed rejected by the Department. The Service Provider may withdraw any cost reduction proposal, in whole or in part, at any time before the Department accepts it. 4.2.4 Cost Reduction Document. Any cost reduction proposal may be accepted, in whole or in part, in writing by the Department which acceptance shall be memorialized in a Cost Reduction Document mutually agreed upon by the Parties. The Cost Reduction Document shall: Reduce the Contract price by the amount of savings that are agreed upon by the Parties; Specify the changes in service delivery; (3) Specify the amount of any costs to be offset; and, (4) Specify the Service Provider's Savings Sharing Rate. The Service Provider shall perform in accordance with the terms of the existing Contract until such time as the Cost Reduction Document is executed by both Parties. The decision to accept or reject all or part of any cost reduction proposal is a decision made solely at the discretion of the Department. 4.2.5 Savings Sharing Rate. The Service Provider shall be paid a percentage of the savings realized from the implementation of any cost reduction proposal (Savings Sharing Rate). The Savings Sharing Rate shall be set forth in the Cost Reduction Document. 4.2.6 Service Providers Share of Savings. The Service Provider's share of savings is calculated by multiplying the Savings Sharing Rate by the savings realized from the implementation of a cost reduction proposal. The Service Provider's Share of Savings shall be paid to the Service Provider at the time the savings are realized, contingent upon the availability and appropriation of funds. 4.3 Payment upon Termination.  SEQ CHAPTER \h \r 1In the event of termination of this Contract in accordance with the provisions of this Contract, the Department agrees to pay the Service Provider the amounts due and owing to Service Provider for Services rendered pursuant to this Contract. To be eligible for such payment, Service Provider shall submit to the Department, within sixty (60) calendar days of termination, a request for payment of such amounts. However, the Department will immediately pay any amounts previously invoiced and not paid and amounts due and owing pursuant to Section 7. Requests submitted later than sixty (60) calendar days after termination will not be honored and will be returned unpaid. However, payment for Services requested and provided post-termination shall be paid as mutually agreed upon. 4.4 Audit Rights. The State Comptroller, or its successor, the Office of the Auditor General, and the Departments Inspector General have authority to perform audits. All shall have access to electronic and physical records in the possession of the Service Provider related to or created as a result of this Contract to fulfill their audit responsibilities. The following records are specifically excluded from inspection, copying, and audit rights under this Contract, unless those documents would be required to be produced for inspection and copying under the requirements of Chapter 119, Florida Statutes, and any other provision of the Florida Statutes, or Section 24, Article I of the Florida Constitution,: (i) financial and other internal company records of the Service Provider that are not created or received in connection with this Contract, (ii) documents created by and for the State or other communications related thereto that are confidential attorney work product or subject to attorney-client privilege, and (iii) information of the Service Provider that is confidential, proprietary or is a trade secret. The State shall be responsible for the costs associated with the audit review. The State will use reasonable efforts to minimize the number and duration of such audits or inspections conducted and to conduct such audits and inspections in a manner that will minimize the disruption to the Service Provider's business operations. When a substantial function is performed by a third party (sometimes referred to as a service organization in auditing literature), an accepted methodology for understanding and testing controls is the use of the Service Organization Audit, or Statements on Auditing Standards (SAS) 70 audit. The service organizations engage auditors (at their expense) who conduct audits in accordance with AU 324 (AICPA Standards). Such audits specifically address the controls placed in operation and tests of operating effectiveness. The conduct of such audits provide assurances to the agencies that have contracted with the service organizations. In addition, the auditors of the financial statements of the agencies contracting with service organizations can use the SAS 70 reports to limit the amount of work that would have to be conducted both on-site and off-site related to the service organization. Given the complexity and volume of the responsibilities being contracted to the Service Provider, the Auditor General may request that the Service Provider obtain an SAS 70 audit on an annual basis. The Auditor General will be responsible for costs associated therewith, and therefore, the scope of the audit must be approved by the Auditor General. The Service Provider shall file this audit with the Department and the Auditor General within sixty (60) days of the close of its fiscal year. 4.5 Performance Bond. (a) Within thirty (30) days after execution and delivery of this Contract by both Parties, Service Provider shall provide to the Department a Performance Bond in the amount of Thirty Million Dollars ($30,000,000.00), with a good and sufficient surety or sureties licensed to do business in the State of Florida and approved in writing by the Department, payable to, in favor of, and for the protection of the Department, such approval not to be unreasonably withheld or delayed. (b) Department may pursue payment under the Performance Bond and the Performance Bond shall be payable only under the following conditions: Service Provider has failed to perform in accordance with the terms of this Contract such that such failure is a Default (defined in Section 7); The Department has provided to Service Provider written notice of such Default, specifying in reasonable detail the events which are believed to constitute the Default and requesting such Default be cured; and, Service Provider has failed to cure such Default within the time prescribed in Section 7 for Defaults. In the event all conditions as provided in (b) above have occurred, the Department may seek to be compensated from the Performance Bond or its cash equivalent for the Departments actual proven direct damages from the Default. In no event shall the Department be entitled to any lost profits, loss of business, or any consequential or special losses or damages of any kind. 4.6 Invoicing and Payment. 4.6.1 Invoices. Invoices will be submitted to the Department in the format as provided in Exhibit G and will contain reasonably sufficient detail (a) for a proper pre-audit and post-audit thereof in accordance with Section 287.058(1)(a), Florida Statutes; and (2) to enable the Department to confirm that the amounts set forth on each invoice accurately reflect the amounts due and payable under this Contract (Proper Invoice). Service Provider will submit a Proper Invoice on the first day of the month for Services provided during the previous month and the Department will pay the entire amount of such Proper Invoice, excluding only Disputed Amounts (as defined below) within forty (40) days after receipt of a Proper Invoice (the Payment Date), via electronic funds transfer to Service Providers account. If full payment for any non-disputed outstanding amount is not made by the Department on the Payment Date or if any Disputed Amount, as defined in paragraph 4.6.2, agreed to or determined to be owed to Service Provider is not paid within forty (40) days after the date of such agreement or determination an interest penalty will be due at a rate as established pursuant to Section 55.03(1), Florida Statutes, on the unpaid balance from the time such amount was due until such time as Service Provider receives full payment on the unpaid balance. Invoice payment requirements do not start until a Proper Invoice is provided to the Department. A Vendor Ombudsman, whose duties include acting as an advocate for vendors who may be experiencing problems in obtaining payment from a State Agency may be contacted at (850) 488-2974, or by calling the State Comptroller. 4.6.2 Overpayments. If the Department overpays the Service Provider, the Service Provider will immediately credit to the Department such overpayments together with interest calculated at the rate set forth in Section 55.03(1), Florida Statutes. Each Party will provide the other with timely notice of the nature of any error or inaccuracy made relating to an invoice or a payment, as soon as such Party becomes aware of the error or inaccuracy. Performance Credits owed by Service Provider and offset against amounts owed shall not be considered an overpayment. 4.6.3 Disputed Invoices. If the Department reasonably disputes any portion of any amount due claimed by the Service Provider (Disputed Amount), then the Department will timely pay any undisputed portion of the amount and shall provide the Service Provider with written notice of any Disputed Amount and the basis for the dispute in reasonable detail, within twenty (20) days after receipt of the invoice. Disputed Amounts shall be handled in accordance with Section 215.422, Florida Statutes, and the rules promulgated thereunder. End of Page SectionOne Florida55.1 Utilization of Small Business Concerns. It is the policy of the State that Minority and Woman-Owned Business Enterprises (MWBE), as outlined in One Florida, Equity in Contracting, have the maximum practicable opportunity to participate in performing contracts let by any State Agency. The Service Provider hereby agrees to carry out this policy in the awarding of subcontracts to the fullest extent consistent with efficient Contract performance by reasonably considering MWBEs as subcontractors for the Services. The Service Provider further agrees to reasonably cooperate in any studies or surveys as may be conducted by the State of Florida to determine the extent of the Service Provider's compliance with this Section. 5.2 Service Providers Commitment. During the term of this Contract and in providing the Services, at a minimum the Service Provider shall exercise all reasonable efforts to: Comply with One Florida, Equity in Contracting, as set forth in Governor Bush's Executive Order 99-281 as provided in Section 5.1. Identify and report MWBE participation. Provide opportunities for MWBE participation as provided in Section 5.1. 5.3 Minorities and Woman-Owned Business Enterprises. As used in this Contract, minority and woman-owned business enterprise means a business that is at least 51% owned by minority group members or women or, in the case of publicly owned businesses, at least 51% of the stock of which is owned by minority group members or women, or in either case, at least 51% of the employees of which are minority group members or women. Upon request, the Service Provider shall provide verification of the status of its MWBE subcontractors used to provide the Services. End of Page  SEQ CHAPTER \h \r 1 SectionInsurance66.1 Insurance Coverage. Commencing no later than five (5) calendar days after execution of this Contract, the Service Provider shall, at its own expense, secure and continuously maintain the insurance coverage required by law and explicitly required by this Section and shall provide proof of such insurance coverage, in accordance with subsection 6.3, to the Department for approval. Performance may not commence on this Contract until such time as insurance is secured by the Service Provider and is approved by the Department which approval shall not unreasonably be withheld or delayed. 6.1.1 Commercial General Liability. The Service Provider shall secure and continuously maintain commercial general liability insurance (inclusive of any amounts provided by an umbrella or excess policy) in a face amount of Twenty-Five Million Dollars ($25,000,000.00). The Department shall be listed as an additional insured in the commercial general liability coverage policy with respect to its liability for the Service Providers acts. Each policy shall include forty-five (45) calendar days prior written notice to the Department of cancellation for any coverage. 6.1.2 Workers' Compensation Insurance. The Service Provider shall secure and continuously maintain workers' compensation insurance coverage as required under all relevant workers' compensation statutes. Such coverage shall comply fully with all applicable state and federal laws governing workers' compensation. The insurance shall cover all of Service Providers employees connected with the provision of Services under this Contract. Should any work be sublet, the Service Provider shall require the subcontractor similarly to provide workers' compensation coverage for all of the subcontractor's employees unless such employees are covered by the protection afforded by the Service Provider. If any class of employees engaged in hazardous work under this Contract is not protected or otherwise covered under applicable workers' compensation statutes, the Service Provider shall provide, and cause each subcontractor to provide, adequate insurance coverage, satisfactory to the Department, for the protection of employees not otherwise protected. 6.1.3 Automobile Liability Insurance. The Service Provider shall secure and continuously maintain automobile liability insurance, including coverage for liability contractually assumed, which shall cover all owned, non-owned, and hired automobiles used by Service Provider in connection with this Contract. The Department shall be listed as an additional insured only with respect to accidents caused by Service Providers employees. The minimum limits (inclusive of any amounts provided by an umbrella or excess policy) shall be Four Million Dollars ($4,000,000.00) for each occurrencebodily injury and property damage combined. 6.1.4 Professional Indemnity Insurance. The Service Provider shall secure and continuously maintain professional indemnity insurance that shall cover Professional Liability and Error and Omissions in the face amount of Twenty Five Million Dollars ($25,000,000.00). Service Provider shall indemnify, defend and hold harmless the Department and its employees and agents, from and against any third party claims, demands, loss, damage or expense caused by Service Provider in connection with the performance of the Services related to Professional Liability and Error and Omissions. 6.2 Subcontractor Provider Insurance Coverage. Any Subcontractor of the Service Provider shall provide insurance as follows: General Liability coverage- Two Million Dollars ($2,000,000.00); Workers Compensation statutorily required amount; and, Automobile Liability (with umbrella) Two Million Dollars ($2,000,000.00). The Service Provider's major Subcontractor shall provide the following additional insurance: Errors and Omissions Two Million Dollars ($2,000,000.00). 6.3 Proof of Insurance. At the request of the Department, the Service Provider shall provide all relevant certificates as proof of such insurance or proof of its ability to self-insure, including renewal or replacement evidence of insurance at least thirty (30) days prior to the expiration or termination of any insurance. 6.4 Deductible Amounts. The Service Provider shall be responsible for payment of its deductible. 6.5 Self Insurance. For any workers compensation insurance coverage required hereby, the Service Provider may use a self-insurance program approved by the Florida Department of Insurance or if a Force Majeure condition causes Services to be provided by the Service Providers employees located outside of the State, Service Provider may use a self-insurance workers compensation program approved by the state where the Services are performed and the Service Providers employees are located. End of Page SectionTerm, Termination and Default 77.1 Term/Renewal. In accordance with the General Appropriations authority to enter into a contract, together with the authority granted in Chapter 287, Florida Statutes, to the Department to contract for services rendered herein and the business plan dated September 28, 2001, approved by the Florida Legislature setting forth the term and amount of the Contract, the Parties agree that the Term of this Contract shall be for a seven (7) year period commencing upon the execution of this Contract and continuing for seven (7) years unless extended, terminated or renewed as provided herein. In addition, this Contract may be renewed by the mutual agreement of the Parties in accordance with Section 287.058, Florida Statutes. The Department shall provide written notice to the Service Provider regarding the Departments interest to renew the Contract within six (6) months prior to the expiration of the Contract and at such time the Parties will meet to determine if such Contract shall be renewed. Pursuant to Section 287.058(1)(f), Florida Statutes, renewal price for the contractual services shall be agreed upon by the parties. In the event of a renewal, startup costs, remobilization and other similar costs are not permitted to be charged pursuant to Florida Statutes. Renewals shall be contingent upon satisfactory performance evaluations by the Department and subject to the appropriation of funds. 7.2 Party's Right of Termination. 7.2.1 Termination for Cause Either Party shall have the right to terminate the Contract in the event of an uncured Event of Default. 7.2.2 Mutual Consent - Either Party may terminate the Contract at any time by mutual consent in writing. 7.2.3 Termination for States Non-Appropriation of Funds Either Party may, at its option, terminate this Contract by providing sixty (60) days notice to the other Party if the State fails to appropriate for any State fiscal year sufficient funds to perform Departments obligations under this Contract. The Contract shall terminate at the last day of the fiscal year in which the funds were appropriated, subject to the terms in this Contract. 7.3 Right to Equitable Relief In lieu of terminating the Contract upon the occurrence of an Event of Default, the non-defaulting Party may institute legal proceedings to compel performance of any obligation required to be performed by the defaulting Party hereunder including, where appropriate actions for specific performance and/or injunctive relief. In the event the Department chooses to seek equitable relief in accordance with this Section, the remedies set forth in Section 7.6 shall not be available to it. 7.4 Events of Default Each of the following constitutes an Event of Default: 7.4.1 Breach of a material obligation under this Contract, 7.4.2 The occurrence of any one or more of the following events: a Partys admission in writing of its inability to pay its debts generally; a Partys general assignment of its assets for the benefit of creditors; any affirmative act of insolvency by a Party; or the filing by or against a Party of any petition or action under any bankruptcy, reorganization, insolvency, arrangement, liquidation, dissolution or moratorium law, or any other law or laws for the relief of, or relating to, debtors that is not dismissed within ninety (90) days of filing. The Parties agree that in the event either of them becomes a debtor under 11 U.S.C. 101 et seq., the Contract shall automatically terminate on its own terms forty-five (45) days after the commencement of such bankruptcy case and that the Party who becomes such a debtor shall not (i) seek any extension of time to assume or assume and assign this Contract, or (ii) oppose or challenge any motion(s) filed by the other to compel the immediate rejection of the Contract. 7.4.3 Continuous Performance Default - Unless otherwise excused or cured as provided in this Contract, the following shall constitute a Continuous Performance Default: a) Service Providers failure to meet the same Critical Performance Metric, as defined below, for at least three (3) consecutive months, or b) Service Providers failure to meet at least five (5) Critical Performance Metrics six (6) out of twelve (12) months. Critical Performance Metric means i) the Performance Metrics identified as Critical as provided in Section 2 or ii) an Important Performance Metric that is missed two (2) months in a row. Once Service Provider meets an Important Metric that has become a Critical Performance Metric, the Important Metric reverts to its original category (e.g., Important). An Important Metric can only revert to its original category one time. Important Performance Metric means the Performance Metrics identified as Important as provided in Section 2. 7.4.4 States failure to pay undisputed amounts pursuant to Section 4.6. 7.5 Opportunity to Cure Default In the Event of Default, the non-defaulting Party shall give the defaulting party written notice of the Event of Default and request that such default be cured (Cure Notice). If the defaulting fails to cure the specified Event of Default within forty-five (45) days of receipt of the Cure Notice (or such other mutually agreed upon time) and the Parties have completed the dispute resolution process in Section 8 without resolution (Default), then the non-defaulting Party shall have the right to terminate this Contract, effective upon thirty (30) days prior written notice to the defaulting Party (Termination Notice). The non-defaulting Partys right to terminate this Contract shall automatically expire if the defaulting Party has cured the Event of Default prior to the defaulting Partys receipt of the Termination Notice. In the case of a Continuous Performance Default, if the Department fails to issue a Cure Notice to the Service Provider within one hundred thirty (130) days after the Department receives a monthly report indicating Continuous Performance Default, the Department shall expressly waive any right to claim Continuous Performance Default and to terminate the Contract therefor. The Parties right to terminate the Contract under this provision shall be in addition to any other rights and remedies they may have at law or in equity. 7.6 Consequences of Termination in the Event of Service Providers Default: In the event the Department exercises its right to terminate this Contract prior to the expiration of the term of this Contract because of the Service Providers Default, the following shall occur: A. Subject to the limitation of liability in Section 9.30, payment of the Performance Bond in accordance with Section 4.5 or equivalent cash payment by the Service Provider and either: 1. The Department may purchase from the Service Provider the items listed in Exhibit H. If so, the Department shall place the amount set forth on Exhibit H corresponding to the month in which the Contract is terminated, in two equal installments into an interest bearing escrow account (Escrow Account) held by the Treasurer of the State of Florida (the Escrow Agent). The first installment is due and payable upon termination of the Contract. Upon the Escrow Agents written notice to Service Provider of receipt of the first installment payment, Service Provider shall provide the Department such items listed in Exhibit H. The Department shall pay the second installment to the Escrow Account within six (6) months after the payment of the first installment. The monies paid into the Escrow Account for the items listed on Exhibit H shall be held in escrow until such time as: a. the Parties mutually agree otherwise; b. a court of competent jurisdiction determines the disposition of such monies; or c. the expiration of two years from the effective date of termination due to Service Providers Default, provided a legal and/or equitable action has not been filed by the Department with a court of competent jurisdiction prior to such expiration. Upon the occurrence of any of the above, the Escrow Agent shall release such monies to the Service Provider. The payment for the costs associated with establishing and maintaining the Escrow Account shall be shared equally by the Parties. However, if a court of competent jurisdiction determines that the Departments damages exceed the funds held in escrow plus any other damages owed by the Department to Service Provider, Service Provider will reimburse the Department for its share of such escrow costs. Provided the Department elects to purchase the items in Exhibit H, the Service Provider shall provide the Department with any or all of the Migration Goods and Services or the cash equivalent, as set forth in Exhibit D. Included therein and as it relates to the HR Software, the Service Provider shall either procure a license for the Department to use HR Software or reimburse the Department the license fee(s) associated with its procurement of the HR Software which license shall extend until such time as the Contract would have expired had it not been terminated. Upon full payment by Department for the items in Exhibit H, to the extent Service Provider creates any intellectual property specifically to provide the Migration Goods and Services and such intellectual property is necessary in the use of the Migration Goods and Services, Service Provider grants Department a perpetual right to use such intellectual property for its internal use only. For a period of up to one hundred eighty (180) days after termination of the Contract, the Department may elect to purchase Interim Services from the Service Provider. Interim Services shall mean all of the same Services provided by Service Provider in the month immediately preceding the termination. The Department shall pay Service Provider a monthly fee for such Interim Services in an amount equal to the amount the Department paid the Service Provider during the month immediately preceding termination of the Contract for those Services (i.e., in accordance with payment instructions in Exhibit F). On the first day of each month, the Service Provider shall provide the Department with a Proper Invoice, in accordance with Section 4.6, for the Services provided during the previous month. The Department shall place the invoice amount into an interest bearing escrow account (Escrow Account) held by the Treasurer of the State of Florida (the Escrow Agent). The payments to the Escrow Account for the Interim Services shall be held in escrow until such time as the Functions have been successfully migrated back to the State or to an alternate provider. Service Provider agrees to provide sufficient experienced personnel during the period of time Interim Services are being performed to support the State. Notwithstanding the foregoing, Service Provider shall not be held to the Performance Metrics identified in Section 2 in the Contract, but shall use its best efforts to meet those Performance Metrics during the time period. If the scope of Services needed by the Department is reduced by the Department, the Service Provider agrees to negotiate in good faith on a reduction of the costs charged the Department for Interim Services; or 2. If the Service Provider has ceased to render all Services or the level of Services are so poor that the Department is in effect not receiving the Services, the Department shall seek full compensation for all damages incurred, which includes but is not limited to, all reprocurement costs and costs to provide Services during transition to either the Department or another provider. B. The Service Provider shall be removed from the State Purchasing vendor list(s). C. All State Agencies shall be advised not to do business with the Service Provider without written approval from the Division of State Purchasing until such time as the Service Provider fully complies with this Section 7.6. D. Nothing in this Section shall preclude Service Provider from asserting any rights to seek payment for the value received by the Department of the items set forth in Exhibit H nor is the Department precluded from asserting its rights for all damages incurred. 7.7 Consequences in the Event of Termination for Reasons Other Than Service Providers Default or Expiration of the Contract Term The Parties acknowledge that it is necessary to make alternative plans to provide Services to the employees of the State either upon termination of this Contract or upon expiration of the term of this Contract. In the event this Contract is terminated for any reason other than for Service Providers Default, or the Contract Term expires, the following shall occur: A. The Department may elect to purchase any or all of the Migration Goods and Services set forth in Exhibit D from the Service Provider. Upon full payment by Department for all of its obligations hereunder, to the extent Service Provider creates any intellectual property specifically to provide the Migration Goods and Services and such intellectual property is necessary in the use of the Migration Goods and Services, Service Provider grants Department a perpetual right to use such intellectual property for its internal use only. B. The Department shall purchase from the Service Provider the items listed in Exhibit H for the fee set forth in Exhibit H. Upon payment for the items listed in Exhibit H, Service Provider shall provide the Department the items listed in Exhibit H. Exhibit H lists, in general, the minimum requirements for continuity of service and the costs to be incurred. C. For a period of up to one hundred eighty (180) days after termination of the Contract the Department may elect to purchase Interim Services from the Service Provider. Interim Services shall mean all of the same Services provided by Service Provider in the month immediately preceding the termination. The Department shall pay Service Provider a monthly fee for such Interim Services in an amount equal to the amount the Department paid (or owed if not paid) the Service Provider during the month immediately preceding termination of the Contract for those Services (i.e., in accordance with payment instructions in Exhibit F.) On the first day of each month, the Service Provider shall provide the Department with a Proper Invoice, in accordance with Section 4.6, for the Services provided during the previous month. Service Provider agrees to provide sufficient experienced personnel during the period of time Interim Services are being performed to support the State. Notwithstanding the foregoing, Service Provider shall not be held to the Performance Metrics identified in Section 2 in the Contract, but shall use its best efforts to meet those Performance Metrics during the time period. If the scope of Services needed by the Department is reduced by the Department, the Service Provider agrees to negotiate in good faith on a reduction of the costs charged the Department for Interim Services. 7.8 Rights Cumulative, No Waiver. The rights and remedies provided and available to the Department and the Service Provider in this Contract are distinct, separate and cumulative remedies, and no one of them, whether or not exercised by a Party, shall be deemed to be in exclusion of any other. The election of one remedy shall not be construed as a waiver of any other remedy or of any rights and remedies either Party may have in law or equity. 7.9 Department May Cure Service Provider Defaults. If the Service Provider commits an uncured Event of Default in the performance of any term, provision, covenant or condition on its part to be performed hereunder, the Department may, upon written notice to the Service Provider after the expiration of any curative periods for which provision is made in this Contract, perform the same for the account and at the reasonable expense of the Service Provider or pay, if so compelled to pay, any reasonable sum of money or incur any reasonable expense in the enforcement of its rights hereunder or otherwise because of such uncured Default. If the Department is so compelled to pay money or incur such expense, Service Provider shall repay, subject to the limitations of liability contained herein, any reasonable sums paid and proven by the Department as a result of such uncured Default, together with a rate of interest, pursuant to Section 55.03(1), Florida Statutes, measured from the date Service Provider receives written notice from the Department of such payment (with appropriate documentation of the amount due and owing) until Service Provider pays such amount or credits such amount to the Department. 7.10 Third Party Satisfaction. In the event of termination because of Service Providers Default, the Service Provider shall satisfy all undisputed obligations to its subcontractors providing Services before the Department shall pay the Service Provider for Services rendered. 7.11 Transfer of Certain Assets. Upon reasonable advance written notice to Service Provider and as may be more specifically set forth in the Migration and Interim Services Plan, Department may, upon termination: Assume Service Providers lease for the facility in Tallahassee, Florida where the Services were provided on the date of the termination (Tallahassee Center), provided such lease is assignable to Department and Department agrees in writing to be bound by the terms and conditions of such lease. Acquire any equipment and hardware in the Tallahassee Center which Service Provider owns, which is dedicated to provide the Services and for which Department pays Service Provider the unamortized costs as set forth in the schedule identified in subsection E below. Employ any Service Provider employees in the Tallahassee Center which are dedicated to provide the Services, notwithstanding the provisions of 3.4.1, provided such employees consent. Acquire any other hardware which Service Provider owns and which is dedicated to provide the Services, provided Department pays Service Provider the unamortized costs for such hardware as set forth in the schedule identified in subsection E below. Service Provider will create a specific schedule of equipment and hardware that covers the equipment and hardware set forth in this Section 7.11. Service Provider shall depreciate the hardware and equipment set forth in this Section in accordance with generally accepted accounting principles, without additional markup of the assets. Such schedule may be audited by the Department in accordance with Section 4.4. End of Page SectionDispute Resolution88.1 Overview. The Department and the Service Provider recognize and acknowledge that efforts should always be made to avoid or prevent disputes through effective partnering, good communications, and joint decision making; and that timely requests for clarification and for information will help ensure a better understanding of issues and problems and lead to the elimination of doubts, uncertainties, and ambiguities. Nevertheless, the Department and the Service Provider also recognize that disputes may develop between them and, in such event, wish to establish procedures to be followed to resolve such disputes in the shortest possible time and at the least possible expense to both parties. Unless otherwise provided in this Contract, any conflict or dispute between the Parties shall be resolved in accordance with the procedures specified in this Section 8, which shall be the sole and exclusive procedures for the resolution of any such disputes. This Section 8 establishes successive steps of conflict prevention and alternative dispute resolution prior to litigation. Section 8 does not apply to Departments obligation to pay for undisputed invoices. 8.2 Executive Level Negotiations. The Department and the Service Provider will attempt to resolve any dispute arising out of or relating to this Contract promptly by negotiation between executives of the Department and the Service Provider who have the authority to settle the controversy and who are at a higher level of management than the persons with direct responsibility for administration of the Services at issue. 8.3 Informal Negotiations. Whenever an employee, subcontractor, or agent for one Party has a dispute with an employee, subcontractor, or agent for the other Party, which dispute has not or cannot be resolved in the normal course of business, then the matter in dispute shall be promptly brought to the attention of the Project Managers of the Parties. The Project Managers shall immediately attempt to resolve the dispute in a manner consistent with applicable law, rules, and regulations. 8.4 Formal Negotiations. (a) Notice and Response. Any Party may give the other Party written notice of any dispute not resolved in the normal course of business. Within five (5) business days after delivery of the notice, the receiving Party shall submit to the disputing Party a written response. The notice and the response shall include (i) a Statement of the position of the Party delivering the notice of dispute or the response, as the case may be, and a summary of arguments supporting its position and (ii) the name and title of the executive who will represent that Party in the negotiation to resolve the dispute and of any other person who will accompany the executive. (b) Negotiation Process. Within ten (10) business days after delivery of the disputing Party's notice, the executives of both parties shall meet at a mutually acceptable time and place, and thereafter as often as they reasonably deem necessary, to attempt to resolve the dispute. All reasonable requests for information made by one Party to the other will be honored. In an effort to facilitate the negotiation process, such executives may agree to have an unrelated third party moderate and facilitate the negotiations. If a negotiator intends to be accompanied at a meeting by an attorney, the other negotiator shall be given at least three (3) business days notice of such intention and may also be accompanied by an attorney. (c) Termination of Negotiations. If the dispute has not been resolved within thirty (30) calendar days after delivery of the disputing Party's notice, or if the Parties fail to meet within twenty (20) calendar days, either Party may give written notice to the other Party declaring the negotiation process terminated. (d) Obligation of Parties. The Parties regard the obligations to notify the other party of a dispute and to negotiate such dispute pursuant to this Section 8 as an essential provision of this Contract and one that is legally binding on each of them. In case of a violation of such obligation by either Party, the other may bring an action to seek enforcement of such obligation in any court of law having jurisdiction thereof. 8.5 Mediation. If the Department and the Service Provider are not able to resolve any dispute by negotiation, either Party may initiate a mediation proceeding by a request in writing to the other Party within five (5) business days after delivery of the notice declaring the negotiation process terminated as required by Section 8.4(c). Failure to proceed to mediation in accordance with this Contract constitutes a waiver by the Party being charged of all issues in dispute. 8.5.1 Mediation Procedure. Except as otherwise agreed by the Parties in a mediation contract, all mediation proceedings shall be conducted in accordance with this Contract and, where applicable, the then current Model Procedure for Mediation of Business Disputes published by the Center for Public Resources (CPR), 366 Madison Avenue New York, NY 10017; Telephone: (212) 949-6490; Fax Number: (212) 949-8859; Website: www.cpradr.org. 8.5.2 Selection of Neutral Mediator. If the Department and the Service Provider have not agreed within ten (10) business days of the request for mediation on the selection of a neutral mediator willing to serve, then the Parties agree that a mediator who has been certified as a mediator by the Florida Supreme Court shall be selected by the Florida Conflict Resolution Consortium (FCRC), Florida State University, Tallahassee, Florida, (850) 644-6320, http://consensus.fsu.edu/resolution.html. The appointment by FCRC of a qualified mediator shall be binding on both Parties and both Parties shall promptly cooperate with the appointed mediator to effectuate mediation. 8.5.3 Location of Mediation. Unless otherwise agreed in writing by the Department and the Service Provider mediation sessions shall occur in Tallahassee, Florida. 8.5.4 Mediation Period. Mediation pursuant to this Section 8.5 shall be conducted over a period of forty-five (45) calendar days following the appointment of the mediator. If the dispute cannot be resolved within forty-five (45) calendar days following the appointment of the mediator or by the end of any mutually agreed continuation thereof, either the Department , the Service Provider or the mediator may give written notice declaring the mediation process terminated. If the mediation is terminated in accordance with this Section 8.5.4, either Party may pursue any rights it has under this Contract, including instituting legal action. 8.6 Obligation to Mediate. The Parties regard the obligation to mediate pursuant to this Section as an essential provision of this Contract and one that is legally binding on each of them. In case of a violation of such obligation by either Party, the other may bring an action to seek enforcement of such obligation in any court of law having jurisdiction thereof. Furthermore, the Party at fault for failure to mediate shall forfeit its right to any private cause of action. 8.7 Performance To Continue. Each Party shall continue to perform its obligations under the Contract pending final resolution of any dispute arising out of or relating to the Services. 8.8 Confidentiality. All negotiations pursuant to Section 8 of this Contract, and any mediation pursuant to this Contract shall be treated as compromise and settlement negotiations and shall be treated by each party as Confidential Information. Any third parties authorized to participate in mediation shall sign a confidentiality agreement agreeing to maintain the confidentiality of any discussions or documents used in the mediation process. Nothing said or disclosed, and no document produced (including any notice, response, offer, argument, admission, finding, recommendation, ruling, opinion, or conclusion), in the course of or in connection with such negotiations or mediation that is not otherwise independently discoverable and admissible as evidence shall be offered or received as evidence or used for impeachment or for any other purpose in any arbitration, litigation, administrative proceeding, or other dispute resolution process or proceeding. Any executed settlement agreement which may be reached in the event of court-ordered mediation, however, may constitute a public record in accordance with Section 44.102(3), Florida Statutes. Neither the Department nor the Service Provider shall disclose to any third party other than its legal counsel (including damage experts retained by legal counsel) or accountants or tax advisors, or, except as may be required by applicable law, any communications or negotiations related to such negotiation or mediation. Neither the Department nor the Service Provider shall call as a witness, depose, interrogate, or interview; or attempt to call as a witness, depose, interrogate, or interview, any attorney who participated in the negotiations or mediation for the other Party as to any involvement of such attorney in any aspect of such negotiations or mediation except to prove the terms of any settlement agreement. 8.9 Payment Of Fees And Costs. The Department and the Service Provider shall each bear its own costs and expenses incurred in connection with any negotiations or mediation pursuant to this Contract. In addition, the Department and the Service Provider shall share all third party costs in connection with any attempt to resolve disputes pursuant to this Contract equally unless otherwise agreed. End of Page SectionGeneral Provisions9 9.1 Taxes. The State of Florida does not pay Federal Excise and Sales taxes on direct purchases of tangible personal property. This exemption does not apply to purchases of tangible personal property made by Service Providers who use the tangible personal property in the performance of contracts for the improvement of State owned real property as defined in Chapter 192, Florida Statutes. If applicable, the Department shall provide the Service Provider a tax exempt certificate for sales of tangible personal property to the Department by the Service Provider or purchases of tangible personal property made by the Service Provider on behalf of the Department in connection with this Contract, where the title vests in the Department . 9.2 Annual Appropriations. The Departments performance and obligation to pay under this Contract are contingent upon an annual appropriation by the Legislature. If appropriations are required, the Department shall affirmatively take all reasonable steps to seek such appropriations, but shall not guarantee the securing of annual appropriations. All payments required under this Contract and, specifically Exhibit D and/or H, are contingent upon legislative appropriation. The Parties acknowledge and agree that there is no intent to violate Section 216.311, Florida Statutes, with the execution of this Contract and that any provision deemed to violate this statutory provision shall be null and void, shall be stricken from this Contract and the remainder of the Contract shall remain in full force and effect. The Parties further agree that the foregoing does not in any way limit, abrogate or otherwise modify Service Providers rights or remedies under applicable law, including Service Providers rights to seek a claims bill. 9.3 Conflict of Interest. The Service Provider must disclose the name of any officer, director, or employee who is also an employee of the State, or any of its agencies. Further, the Service Provider must disclose the name of any State employee who owns an interest of 5% or more in the Service Provider. 9.4 Background Checks The Service Provider shall ensure that background history checks are conducted on all current and prospective Service Provider employees who will be providing Services described herein prior to the Service Provider's employees obtaining access to State, Covered Entity or Sensitive State Agency Confidential Information exempt from Chapter 119, Florida Statutes. Background checks shall be maintained in the Service Provider records and made available for the Departments inspection upon demand. Background checks shall comply with the standards established for level one background screenings of State employees pursuant to Section 435.03, Florida Statutes. The Service Provider shall be responsible for all costs incurred to comply with this Section. 9.5 Advertising. Except for disclosures and notices made pursuant to law or regulation, each party agrees to submit to the other all press releases and other publicity matters relating to this Contract, or mentioning or implying the names of any personnel and further agree not to publish or use such press releases or publicity matters without obtaining the others written consent, which will not be unreasonably withheld or delayed. This provision shall not apply to either partys marketing materials that merely list the other party as a client or vendor or to the re-publication of any material that already has been placed in the public domain or as part of the Departments budget or legislative materials. The Parties agree upon execution of this Contract to issue a mutually agreeable joint press release regarding the Contract and the Services to be provided hereunder. 9.6 Assignment. Neither Party may sell, assign or transfer any of its rights, duties or obligations under this Contract without the prior written consent of the other Party. However, the Department may assign this Contract to another a State Agency provided that all Department rights and obligations are so assigned, and Service Provider may assign this Contract to a wholly owned subsidiary of Convergys Corporation and may assign any monies due under this Contract from the Department to a third party without the Departments consent. No change in Service Providers organization, if any, shall operate to release Service Provider from its liability for the prompt and effective performance of its obligations under the Contract. All terms and provision of this Contract shall be binding upon and inure to the benefit of the parties hereto and their successors and assigns. 9.7 Public Records and Access to Records. 9.7.1 Public Records. The Service Provider acknowledges that any material received from the Department or a Covered Entity or any material Service Provider generates in order to provide Services hereunder may be a public record as defined by Section 119.011, Florida Statutes. The Service Provider agrees to abide by the provisions of the Public Records Law, Chapter 119, Florida Statutes, to the extent applicable to Service Providers provision of Services with respect to any third party request to review or obtain copies of records related to or generated as a result of this Contract. The Service Provider is not required to conform a record or generate a new record to comply with any preferences stated in a public records request with respect to record format or record content unless such action is required pursuant to the provisions of the Public Records Law, any other provision of the Florida Statutes, Section 24, Art. I of the Florida Constitution or the terms of this Contract. Costs for production of records shall be governed by Section 119.07, Florida Statutes. The process for production of public records shall commence with a request for information. The Department or Covered Entity shall coordinate with the Service Provider to determine the scope of the request and the costs to comply with such request. The Department or Covered Entity shall notify the person or entity making such request of the cost, time required to comply the request and that a check in the amount of the request must be provided prior to the commencement of production of the request. The Department or Covered Entity shall confirm to the Service Provider when funds are received and work shall commence. Service Provider shall produce such records to the Department or Covered Entity for transmission to the requestor of the information. Upon production of such records, Department or Covered Entity shall reimburse the Service Provider for its time and expense associated with support of the request as defined in the cost estimate and consistent with Florida law. The process shall be completed within a reasonable time pursuant to Florida public records law. 9.7.2 Access to Records. The Service Provider recognizes and acknowledges the requirements of the Public Records Law, Chapter 119, Florida Statutes, and Section 24, Article I of the Florida Constitution. Upon reasonable notice, the Service Provider shall provide the Department, including any officer, employee or authorized agent, provided such agent is not a competitor of Service Provider, with reasonable access to inspect and copy all records and information, including records and information whether stored manually or electronically, related to or created as a result of this Contract that are public record under Chapter 119, Florida Statutes, any other provision of the Florida Statutes, or Section 24, Article I of the Florida Constitution. Except for records specifically excluded in Section 4.4, the Service Provider shall permit inspection and copying of exempt or confidential records related to this Contract in the possession of the Service Provider by State officers or employees authorized to have access in the performance of their official duties and such inspections shall be subject to the confidentiality provisions as provided herein. Except as provided herein, under no circumstances whatsoever will Service Provider refuse to provide, delay or prohibit the Departments access to public records in the possession of Service Provider or its subcontractors. 9.7.3 The Service Providers failure to comply with the provisions of the Public Records law shall constitute a material breach of this Contract and shall be grounds for termination in accordance with Section 7.2. 9.8 Non-Discrimination and Equal Opportunity. The Service Provider agrees to not discriminate on the basis of race, religion, sex, creed, national origin, disability, age marital status, or veterans status in its employment practices. The Service Provider agrees to comply with the laws of the State and of the United States of America, regarding such non-discrimination and equality of opportunity, which are applicable to Service Provider. Furthermore, in accordance with Section 287.134, Florida Statutes, an entity or affiliate who has been placed on the discriminatory vendor list may not submit a bid on a contract to provide goods or services to a public entity and may not be awarded or perform work as a service provider, supplier, subcontractor, or consultant under contract with any public entity, and may not transact business with any public entity. By reference, the Service Provider and its subcontractors submit that to the best of their knowledge they are not in violation of any laws referenced in this Section 9.8 as of the Effective Date. The Parties agree that failure to comply with this Section may constitute a material breach and may be grounds for termination of this Contract in accordance with Section 7.2 , at Departments reasonable discretion. 9.9 American with Disabilities Act Requirements/Unauthorized Aliens. The Service Provider assumes the sole responsibility for compliance with all laws, rules and regulations stated in the Americans with Disabilities Act as applicable to Service Providers employees. The Service Provider acknowledges and affirms that the employment of unauthorized aliens by the Service Provider may be considered a violation of Section 247A(e) of the Immigration and Nationalization Act. By execution of this Contract the Service Provider affirms that it is not to the best of its knowledge in violation of either law at the time of execution. The Parties agree that failure to comply with this Section may constitute a material breach and maybe grounds for termination of this Contract in accordance with Section 7.2 at Departments reasonable discretion. 9.10 Drug Free Workplace Program. The Service Provider agrees to implement a drug free workplace program as defined in Section 287.087, Florida Statutes, throughout the Term of this Contract. The Parties agree that failure to comply with this Section shall constitute a material breach and shall be grounds for termination of this Contract in accordance with Section 7.2. 9.11 Public Entity Crime. The Service Provider certifies that during the Term of this Contract and any renewals thereof that neither the Service Provider, nor any of its subcontractors, are listed on the Convicted Vendor List maintained by the Department or any convicted vendor list maintained by the Federal government. The Service Provider agrees that it may not be awarded or perform work as a Service Provider, supplier, subcontractor, or consultant for the State for a period of thirty-six (36) months from the date of being placed on the Convicted Vendor List. The Parties agree that failure to comply with this Section shall constitute a material breach and shall be grounds for termination of this Contract in accordance with Section 7.2 . 9.12 Good Standing. The Service Provider must maintain good standing as a Florida or Foreign profit or non-profit corporation, partnership, limited liability company, or other recognized business entity authorized to transact business pursuant to the laws of this State. The Service Provider shall submit a certified copy of a Certificate of Status from the Secretary of State, Division of Corporations, to the Department concurrent with the execution of this Contract. In addition, the Service Provider shall certify, concurrent with the execution of this Contract that the person executing this Contract is authorized to do so. 9.13 Representation of Ability to Perform. The Service Provider represents that there is no action, suit, proceeding, inquiry or investigation at law or equity, before or by a court, governmental agency, public board or body, pending or threatened, to the best of the Service Providers knowledge, that would materially prohibit, restrain or enjoin the execution or delivery of the Service Providers obligations, diminish the Service Providers obligations, or diminish the Service Providers financial ability to perform the terms of this Contract. During the Term of this Contract, if any of the aforementioned events occur, the Service Provider must immediately notify the Department in writing. The Service Provider shall remain adequately capitalized during the Term of this Contract. The Parties agree that failure to comply with this Section shall constitute a material breach and shall be grounds for termination of this Contract in accordance with Section 7.2. 9.14 Indemnity. General. Service Provider shall indemnify, defend and hold harmless the Department and its employees and agents, from and against any third party claims, demands, loss, damage or expense relating to bodily injury or death of any person or damage to real and/or tangible personal property directly caused by the Service Provider or its employees, principals, and partners, in connection with the performance of the Services hereunder. b) Intellectual Property. If the Department notifies the Service Provider in writing of a third party claim against the Department or the State that any Deliverable created or developed by the Service Provider infringes a United States copyright or a trade secret of any third party, the Service Provider will defend such claim at its expense and will pay any costs or damages that may be finally awarded against the Department or the State. The Service Provider will not indemnify the Department or the State, however, if the claim of infringement results from (i) the Departments misuse or modification of the Deliverable; (ii) the Departments failure to use corrections or enhancements to the Deliverable made available by the Service Provider; (iii) information, direction, specification or materials provided by the Department . If any Deliverable is, or in the Service Providers opinion is likely to be, held to be infringing, the Service Provider shall at its expense and option either (a) procure the right for the Department to continue using it, (b) replace it with a non-infringing equivalent, (c) modify it to make it non-infringing or (d) direct the return of the Deliverable and refund to the Department the fees paid for such Deliverable less a reasonable amount for the Departments use of the Deliverable up to the time of return. The foregoing remedies constitute the Departments sole and exclusive remedies and the Service Providers entire liability with respect to infringement. 9.15 Legal Requirements. If any dispute arises out of this Contract that is not resolved in accordance with Section 8, the venue of any such legal recourse will be Leon County, Florida. The Parties agree that any and all applicable provisions of Federal, State, County and local laws and all ordinances, rules and regulations shall govern this Contract. The Parties agree that should a dispute arise regarding the subject matter herein, which results in litigation, the prevailing party shall be awarded reasonable attorneys fees and costs for such litigation and any and all appeals. 9.16 Further Assurances. The Parties will, subsequent to the Effective Date, and without any additional consideration, execute and deliver any further legal instruments and perform any acts that are or may become necessary to effectuate the purposes of this Contract. 9.17 Notices. All notices under this Contract shall be served upon the Department by certified mail, return receipt requested, by reputable courier service, or delivered personally to each of the following: Department of Management Services Project Manager Division of Human Resource Management 4040 Esplanade Way, Suite 380 Tallahassee, FL 32399-0950 Department of Management Services Office of the Secretary 4050 Esplanade Way, Suite 250 Tallahassee, FL 32399 Department of Management Services Office of the General Counsel 4050 Esplanade Way, Suite 260 Tallahassee, FL 32399-0950 All notices under this Contract to be served upon the Service Provider shall be served by certified mail, return receipt requested, by reputable courier service, or delivered personally to: Convergys Customer Management Group Inc. President, Employee Care 8000 Baymeadows Way Jacksonville, Florida 32256 With a copy to: Convergys Corporation Legal Department Atrium One 201 East Fourth Street Cincinnati, Ohio 45202 The Parties agree that any change in the above-referenced address or name of the contact person shall be submitted in a timely manner to the other Party. All notices and other communications under this Contract shall be in writing and shall be deemed duly given either (i) when delivered in person to the recipients named above, (ii) upon confirmation of courier delivery to the intended recipients; or (iii) three (3) business days after mailed by certified U.S. mail, return receipt requested, postage prepaid, addressed by name and address to the Party intended. 9.18 Lobbying. In accordance with Section 216.347, Florida Statutes, and as provided herein the Service Provider may not expend any State funds for the purpose of lobbying the legislature, the judicial branch, or a State Agency. The Service Provider shall not lobby the legislative, judicial, or executive branches, or any State Agency regarding any aspect of this Contract without the prior consent of the Secretary, which consent shall not be unreasonably withheld or delayed. Notwithstanding the above, in the event the Legislature does not appropriate the funds for this Contract or the Legislature publishes its budget recommendations showing it does not intend to appropriate the funds for this Contract, the Service Provider is authorized to lobby for the appropriation but agrees that it will comply with Section 216.347, Florida Statutes, as applicable. 9.19 State Internet Home Page. This Contract is a public document. State Term Contracts are posted on MyFlorida.com on the Internet World Wide Web. 9.20 Independent Service Provider. In connection with this Contract, each Party is considered an independent entity and as such will not have any authority to bind or commit the other. Nothing herein shall be deemed or construed to create a joint venture, partnership or agency relationship between the Parties for any purpose. Under no circumstance shall one Party's employees be construed to be employees of the other Party, nor shall one Party's employees be entitled to participate in the profit sharing, pension or other plans established for the benefit of the other Party's employees. The agreements of the Parties set forth in this Contract are not intended for, nor shall they be for the benefit of or be enforceable by, any person not a Party. 9.21 Force Majeure. Neither Party shall be liable for any delays or failures in performance (other than payment obligations hereunder) due to circumstances beyond its reasonable control. The Party whose performance is prevented, hindered or delayed by a Force Majeure event shall (i) notify the other Party of the occurrence of the Force Majeure event, (ii) describe in reasonable detail the nature of the Force Majeure event, and (iii) use commercially reasonable efforts to recommence performance or observance whenever and to whatever extent possible. 9.22 Amendments. Any changes, modifications or deletions to this Contract shall be in writing and must contain the signature of the (i) Service Providers President or authorized representative, and (ii) the Secretary. 9.23 Severability Clause. If any term or provision of this Contract is found by a court of competent jurisdiction to be invalid, illegal or otherwise unenforceable, the same shall not affect the other terms or provisions hereof or the whole of the Contract, but such term or provision shall be deemed modified to the extent necessary in the courts opinion to render such term or provision enforceable, and the rights and obligations of the Parties shall be construed and enforced accordingly, preserving to the fullest permissible extent the intent of the Parties. 9.24 Reserved. 9.25 Waiver. Unless otherwise agreed, the delay or failure by either Party to exercise or enforce any of its rights under this Contract shall not constitute or be deemed a waiver of that Partys right thereafter to enforce those rights, nor shall any single or partial exercise of any such right preclude any other or further exercise thereof or the exercise of any other right. 9.26 Contract Administrator. The Contract Administrator shall be responsible for maintaining this Contract during the Term of this Contract. The Contract Administrator shall be Carol Carr, Office of the General Counsel, 4050 Esplanade Way, Suite 260, Tallahassee, Florida 32399-0950, Telephone: (850) 487-1082, Facsimile (850) 922-6312. The Department shall provide written notice to Service Provider of any changes to the Contract Administrator. 9.27 Project Managers. Each Party will designate a Project Manager during the Term of this Contract whose responsibility shall be to oversee the Party's performance of its duties and obligations pursuant to the terms of this Contract. Each Party shall provide prompt written notice to the other Party of any changes to the Party's Project Manager or his or her contact information. The Departments Project Manager shall be Fran Brooks, Director, Division of Human Resource Management, 4040 Esplanade Way, Suite 380, Tallahassee, Florida 32399. The Service Provider's Project Manager shall be Chris Emerick, Senior Director of Operations, 8000 Baymeadows Way, Jacksonville, Florida 32256. 9.28 Waiver of Jury Trial. In the event litigation ensues regarding this Contract, both Parties waive their right to a jury trial. 9.29 Entire Contract. This Contract and any amendments thereto, constitutes the full and complete Contract of the Parties hereto and supersedes any prior contracts, arrangements and communications, whether oral or written, with respect to the subject matter hereof. Each Party acknowledges that it is entering into the Contract solely on the basis of the representations contained herein, and for its own purposes and not for the benefit of any third party. 9.30 Liability. Notwithstanding anything in this Contract or otherwise to the contrary: (i) neither the Department nor Service Provider shall be liable to the other party or to any third party for any lost profits or any loss of business; or any consequential or special losses or damages of any kind; and (ii) the sole and exclusive remedy of Service Provider and of the Department for any claim, loss or damages in any way related to, or arising out of, this Contract or any services provided or anticipated to be provided shall be limited to such Party's actual, direct damages but in no event shall the amount of all such actual, direct damages that arise out of, or relate to, any and all events or occurrences, individually or in the aggregate, under any circumstance exceed seventy five million dollars ($75,000,000). This amount is exclusive of any undisputed fees owed Service Provider. None of the limitations expressed in (i) and (ii) shall preclude either party from seeking injunctive relief. 9.31 Subcontractor Liability. Subcontractors and suppliers contracted by the Service Provider in the performance of the Services under this Contract are the responsibility of the Service Provider. 9.32 Other Compliances. Each Party shall comply with all applicable Federal, State, County local laws, ordinances, rules, and regulations applicable to such Party and applicable to its performance under this Contract. Provider may immediately terminate this Contract without liability or penalty at any time Service Provider reasonably and in good faith believes that it is a fiduciary with respect to any of the Plans or Plan Participants under any applicable state law. 9.33 Service Providers Property. Unless otherwise agreed upon be the Parties, the Service Provider, at its expense shall furnish, install, operate, and maintain all property required to perform the Service Providers obligations under this Contract. The Department and its authorized agent, provided such agent is not a competitor of Service Provider, reserves the right to inspect the area in the Service Providers facilities where the Services are performed at any reasonable time with prior notice. 9.34 Documents and Data. The Department acknowledges and agrees that the Department is contracting with Service Provider for Service Provider to provide Services only and not for Service Provider to create or develop anything. In the course of Service Providers performance of this Contract, Service Provider agrees that information pertaining to the Covered Population received by Service Provider from the Department, the Covered Population or third parties providing services to or for the Department for the Covered Population ("State Data"), is and shall remain the sole and exclusive property of the State, free and clear of any and all claims of Service Provider. All State Data shall be immediately delivered to the Department in the format to be mutually agreed upon by the Parties as requested or upon termination or completion of this Contract, whichever is earlier. The Department agrees that anything (excepting State Data and only to the extent State Data is so contained therein) held by Service Provider on the Effective Date of this Contract or created or developed in whole or in part by Service Provider (whether or not created or developed while, or in the process of, providing any Services to or for State), including without limitation any and all programming, web-based software or processes, interactive voice response related software or processes, software modifications and customizations, application program interfaces, business methods, statistical research and analysis, training methods or training materials and the HR Configuration Data (collectively, "Service Provider Works"), are and shall remain the sole and exclusive property of Service Provider or its licensors. Nothing in this Contract shall affect in anyway the Service Provider or third party ownership of all right, title and interest in or to any existing Service Provider or third party system, software, applications, routines, techniques, ideas or formulae which may be used in whole or in part by the Service Provider in performing Services for the Department or any modifications, enhancements or derivative works thereof, which shall remain solely the property of the Service Provider or its licensors, including, without limitation, all copyrights and other intellectual property rights thereto. All Service Provider Works shall be delivered to Service Provider as requested or upon termination or completion of this Agreement, whichever is earlier. Notwithstanding the foregoing paragraph, at termination, upon the Service Providers uncured Event of Default, or in the case of termination for any other reason and upon agreement for payment of the fees for the items set forth in Exhibit H and pursuant to Section 7, Service Provider grants, and the Department accepts, a non-exclusive, perpetual, nontransferable, internal use license to use the items listed on Exhibit H and the intellectual property created pursuant to the terms of Section 7 for the purposes of maintaining the Services. The license remains valid despite any termination or expiration of this Contract. Nothing in this Section shall be deemed to permit the Department to disclose, provide access to, sublicense, disassemble, decompile, reverse engineer, modify or transfer any of the items identified in Exhibit H or the intellectual property created pursuant to Section 7 without the prior, written consent of Service Provider. 9.35 Favored Customer. The Service Providers charges under this Contract shall not exceed the Service Providers charges to any other organization of similar size for substantially similar Services. For purposes of this paragraph, substantially similar shall include similar volumes, labor costs, terms and conditions, timeframes and service center geographic location. 9.36 Loss of Data. In the event of loss of any State data or records where such loss is not due to the Departments action the Service Provider shall be responsible for recreating such lost data in the manner it existed or in a comparable manner reasonably acceptable to the Department on a reasonable schedule set by the Department . 9.37 Confidentiality Obligations To the extent possible subject to Chapter 119, Florida Statutes, or any other applicable statutory requirements, the Department shall hold as confidential all of Service Providers Confidential Information. To the extent possible subject to Chapter 119, Florida Statutes, or other applicable statutory requirements, during the term of this Contract and for three (3) years thereafter, the receiving party shall not, without the prior written consent of the furnishing party or as may be required by law, use, exploit, reveal or disclose to any person or entity any information relating to the confidential affairs of the furnishing party. The receiving party shall use prudence and care in the dissemination of Confidential Information of the furnishing party within the receiving partys own organization to employees who need to know. The receiving party shall protect the Confidential Information of the furnishing party with the same degree of care as the receiving party employs for the protection of the receiving partys own trade secrets and Confidential Information (but in no event shall such care be less than the level of care that is commercially reasonable.) If either Party reasonably believes that the Confidential Information is subject to a Section 119 request, then the Party receiving the request shall notify the other Party of the request prior to its disclosure of the Confidential Information. The notified Party shall have the right to seek injunctive relief and any other relief provided by law. 9.38 Departments Responsibilities In addition to the other obligations of the Department set forth in this Contract (including the Departments payment obligations), the Department must: Before Go Live Date: Provide all information and materials reasonably necessary to respond to questionnaires provided by Service Provider to the Department and promptly allow Service Provider access to applicable State Agencies, States systems and personnel necessary for Service Provider to perform Blueprinting. After Go Live Date: On an ongoing basis, the Department must promptly provide all information and materials that are reasonably necessary for Service Provider to perform its duties and obligations such as providing to Service Provider information on the State's policies and procedures, employee plans, action plans, employment and hiring policies and practices, etc. and take such other actions, including allow access to the State's databases and personnel if necessary for Service Provider to perform the Services. If the Department does not perform its obligations under this Contract and such performance affects Service Providers ability to perform and Service Provider has notified the Department in writing within forty-eight (48) hours of the delaying events first occurrence, Service Provider shall not be considered in Default under this Contract to the extent so affected nor shall Service Provider be liable for any damages. Such notice must include a specific description of each act of the Department that is at issue and the resulting costs and time delays incurred by the Service Provider as a result of the Departments alleged non-performance. 9.39 Reserved. 9.40 Changes In Law. If any existing law or regulation is changed or if any new law or regulation is enacted that affects the Services provided under this Contract, Service Provider and/or the Department may modify this Contract to the extent reasonably necessary to ensure that such Services will be in full compliance with such laws and regulations with no adjustment to contract Price unless the level of Services required is substantially (as that term is defined in Section 3.4) increased or decreased and, in such case, the contract Price will be reasonably adjusted to reflect the change in Services. IN WITNESS WHEREOF, the parties hereto have duly executed this Contract effective August 21, 2002. Department of Management Services Convergys Customer Management Group Inc. By: By: _______________________________________ Name: Cynthia A. Henderson Name: Karen R. Bowman_____________________ Title: Secretary Title: President, Employee Care  Date: August 21, 2002 Date: August 21, 2002 EXHIBIT A - COVERED ENTITIES AND COVERED POPULATIONS Covered EntitiesHR Administration Payroll Administration Staffing Administration Benefits Administration HR Administration Payroll Administration Staffing AdministrationBenefits Administration Authorized PositionsOPSAgency for Health Care Administration (AHCA)1,596.5067.00Agency for Workforce Innovation (AWI)1,676.50544.00Citrus (CIT)120.0018.00State Courts System (SCS)3,130.50308.00Agriculture & Consumer Services (DACS)3,613.751,629.00Banking & Finance (DBF)885.2555.00Business & Professional Regulation (DBPR)1,568.25351.00Corrections (DOC)26,063.00257.00Community Affairs (DCA)351.0098.00Children & Families (DCF)24,324.502,503.00Environmental Protection (DEP)3,606.001,025.00Juvenile Justice (DJJ)5,280.50284.00Legal Affairs (DLA), including Office of Statewide Prosecution 1,261.5061.00Military Affairs (DMA)279.0013.00Management Services (DMS), including Administrative Hearings (DOAH) and Public Employees Relation Commission (PERC)1,787.7546.00Education (DOE), including Florida School for the Deaf and the Blind (FSDB)2,054.00428.00Elder Affairs (DOEA)367.50114.00Health (DOH) / County Health (CPH)14,817.971,835.00Insurance (DOI)1,883.50109.00State (DOS)675.00138.00Transportation (DOT)8,908.00193.00Veterans Affairs (DVA)555.5030.00Governors Office (EOG)280.0039.00Law Enforcement (FDLE)1,920.00125.00Parole Commission (FPC)153.0013.00Fish & Wildlife Conservation Commission (FWCC)1,817.00478.00Highway Safety & Motor Vehicle (HSMV)4,809.0059.00Justice Administration Commission (JAC)8,339.25527.00Labor & Employment Security (LES)88.00Lottery (LOT)502.0012.00Public Service Commission (PSC)386.0020.00Revenue (DOR)5,584.50206.00State Universities 0033,000.00Legistlature1740.00State Board of Adminsitration200.00Florida Board of Bar Examiners40.00West Coast Inland Navigation District4.00Florida Inland Navigation District6.00COBRA & Other1,500.00State Retirees  33,700.00Covered Population128,596.2211,67370,190.00 The Covered entities listed above are only authorized to receive Deliverables and Services to the extent as authorized by law. Positions shall equal an individual person, except that the Parties agree that 1600 positions are less than full time equivalents and may represent more than one individual person. The Covered Population for purposes of this Contract shall be the numbers identified in the three columns above, except that for benefits administration, the Total Covered Population shall not exceed 189,000 individual persons. In the event that the Total Covered Population for purposes of benefits administration is greater than 189,000 individual persons and less than 212,000 individual persons, then the Service Provider shall provide benefits administration to the additional individual persons and Performance Metric 6 shall be adjusted from 80% within 20 seconds to 70% within 30 seconds. In the event that the Total Covered Population for benefits administration exceeds 212,000 individual persons, the Department shall pay the Additional User Fee as provided in Exhibit F for each additional individual person or any other amount mutually agreed to by the Parties. EXHIBIT B - PLANS PLAN CURRENT VENDOR Self-Insured PPO (Medical) Blue Cross/Blue Shield of Florida Self-Insured PPO (Pharmacy) Caremark HMO AvMed Health Plan HMO Capital Health Plan HMO Florida Health Care Plans HMO Healthplan Southeast HMO JMH Health Plan HMO Vista Health Plan Dental Pre-paid American Dental Plan Dental Pre-paid Cigna Dental Health Dental Pre-paid Denticare Plan Dental Pre-paid Oral Health Services Dental Indemnity American Dental Plan Dental Indemnity Denticare Plan Dental PPO Oral Health Services Supplemental Hospitalization ALTA Supplemental Hospitalization Philadelphia American (PALICO-Gabor) Supplemental Cancer AFLAC Supplemental Cancer/Accident/Sickness/Disability Colonial Vision VisionCare Plan Basic Life Insurance Prudential Financial Optional Life Insurance Prudential Financial EXHIBIT C - CONTRACT ASSUMPTIONS  Baseline AssumptionsService Provider relied on the workload estimates/information as presented and amended within the ITN Exhibits 1.1 1.4 Workload Estimates for the sizing and level of effort required. In addition, the State provided supplemental information reflecting employee usage (35,000 employees) of the States automated time reporting system (TimeDIRECT). A solution is required to process manual timesheets for exception reporting for approximately 24,500 employees without access to the internet. This solution will be provided within the Scope of Services and pricing schedule established in this Contract. Language support will be provided in English as a primary language; however, Service Provider shall agree to respond to Spanish speaking Covered Population calls into the Service Center as soon as reasonably possible but in no more than 48 hours of the contact. Expenditures related to postage and fulfillment of printed materials for the Covered Population are included within the quoted fees. Covered Population to receive up to four (4) mailings annually via United States Postal Service. Department of Management Services will govern or be empowered by the State Agencies to render all HR policy and operating procedure decisions for the State. Policies and procedures will be consistent across the in-scope Departments and other entities, with the exception of provisions related to terms and conditions of employment as provided in Collective Bargaining Contracts or as mandated by the Legislature at the completion of the Blueprint, and going forward consistent with Sections 3.2 and 9.4 of the Contract.State managers will have web-based access in order to leverage the functionality of the Service Providers manager self-service tools. Ninety-five percent (95%) of managers required HR activities will take place within the self-service tool, while the remaining five (5%) will be handled by the Service Center.Report distribution will be provided in electronic format. Covered Entities will need to print reports if they need paper copies.Project team will re-engineer the HR processes in a consistent manner for all Covered Entities taking into consideration unique needs and security requirements covered by this Contract using the core HR functionality of the HR Software as the baseline. For example, the project team will develop just one model recruitment process for all Covered Entities. Department will have approximately 150 broadband levels at the start of the Transition for positions in Career Service, Selected Exempt Service, and Senior Management Service and Executive Office of the Governor (Pay Plans 01, 07, 08 and 09 respectively). Service Provider on Departments behalf will support the existing classification structure within the existing pricing established for the duration of this contract for all other pay plans, for approximately 12,421 positions established in the following pay plans: State Courts System (SCS) (Pay Plan 81) Courts with Paid Insurance (Pay Plan 86) Justice Administration Commission (JAC) (Pay Plan 84) Career Service Comparable Lottery (LOT) (Pay Plan 31) Selected Exempt and Senior Management Lottery (LOT) (Pay Plan 33) School for the Deaf and Blind (Pay Plan 04) Fixed Salary Elected and Appointed Officers (Pay Plan 05) Other Exempt Fixed Annual Salary (Pay Plan 06) Instructional Correctional Education School Authority (Pay Plan 41) Classified Correctional Education School Authority (Pay Plan 42) Administrative and Professional Correctional Education School Authority (Pay Plan 43) Managerial Correctional Education School Authority (Pay Plan 44) State Attorney (Pay Plan 82) State Attorney with Paid Insurance (Pay Plan 87) Public Defenders (Pay Plan 83) Public Defenders with Paid Insurance (Pay Plan 88) Capital Collateral Representative (Pay Plan 85) EXHIBIT D - MIGRATION GOODS AND SERVICES CategoryActivity DescriptionCost EstimateHR Software LicenseProcurement of license or right to transfer of license for HR Software $7,500,000Software Maintenance CostMaintenance payment for initial twelve month period$1,400,000Reprocurement Costs associated with ITN for new service provider and establishment of the States configuration with that service provider$4,000,000Infrastructure Procure hardware Procure system software Procure tools, other software$4,000,000Business Transition Planning Prepare interface plan Prepare implementation plan Prepare change management plan Staff acquisition plan$1,500,000RealizationTransfer HR Software and associated batch processes Transfer interaction management data Prepare training plan Acquire staffing $2,700,000Final Preparation Contingency plan User acceptance End user training$4,400,000 EXHIBIT E - CHANGE ORDER FORM CHANGE ORDER NO. to Contract No. __________ Human Resources, Benefits, & Payroll Services Contract No. ___ dated as of by and between State of Florida Department of Management Services (Department ) and Convergys Customer Management Group Inc. (Convergys) is hereby amended as follows: Changes to Contract No. ____ [Describe in detail the changes to the Agreement] Changes to Deliverable [Describe in detail the changes to any Deliverable] Changes to Exhibit _________ [Describe in detail the changes to the Exhibit and Agreement] Other Changes [Describe other changes resulting from the Change Order] FEES / HourYear 1Year 2Year 3Year 4Year 5Year 6Year 7 IT Development$185.00$185.00$185.00$185.00$185.00$185.00$185.00Convergys Consulting (including IT Consulting)$175.00 - $350.00$175.00 - $350.00$175.00 - $350.00$175.00 - $350.00$175.00 - $350.00$175.00 - $350.00$175.00 - $350.00KMS Authoring$125.00$125.00$125.00$125.00$125.00$125.00$125.00Training$85.00$85.00$85.00$85.00$85.00$85.00$85.00 Except as otherwise specifically provided herein, all other terms and conditions of the Contract remain unchanged. This Change Order shall constitute an integral part of the Contract following its execution and delivery. IN WITNESS WHEREOF, the parties hereto have duly executed this Change Order effective as of the _________ day of ________, _________. Accepted: Department Convergys Customer Management Group Inc. By: By: _______________________________________ Name: ____________________________________ Name:_____________________________________ Title: Title: _____________________________________ Date: Date: EXHIBIT F - PAYMENT SCHEDULE Additional user fees shall not exceed $172.50 per FTE on an annual basis for full Services. EXHIBIT G - SAMPLE INVOICE EMPLOYEE CAREBILLED TO:STATE OF FLORIDADEPARTMENT OF MANAGEMENT SERVICES4050 ESPLANADE WAYTALLAHASSEE, FLORIDA 32399CUSTOMER NUMBERCUSTOMER P.O. / PRODUCT CODEINVOICE DATEINVOICE NUMBER0-570000-0005799999999APRIL 30, 2003123456789DESCRIPTIONVOLUMERATEAMOUNTBILLING PERIOD 04/01/03 THROUGH 04/40/03MONTHLY PLAN ADMINISTRATION FEE $3,333,333.00 1 $3,333,333.00 TOTAL INVOICE AMOUNT $3,333,333.00 PAYMENT DUE VIA ELECTRONIC FUNDS TRANSFER ON 5/1/03 TO:CONVERGYS CORPORATIONPNC BANKACCOUNT NUMBERROUTING (ABA) NUMBERCONTACT NAMECONTACT NUMBERBILLING INQUIRIESCALL 513-458-2860FINANCIAL CONTACTJOHN PRAMUKA904-626-2170 (Office)904-571-1611 (Cell)904-247-5449 (Home) EXHIBIT H - ITEM FEE LIST Department shall pay Service Provider the amount set forth below for the month in which the termination occurs. Upon receipt of such payment, Service Provider hereby grants to Department a perpetual right to use for its internal use only the items identified with the month in which the termination occurs together with all items Identified for all previous months. Service Provider shall not be required to provide Migration Services prior to receipt of the payments identified herein:Pre-ImplementationMonth Cost to State Item2 $233,945 Transition Plan to include:- Methodology and timeline for transitioning Services from State to Service Provider- Project management structure- Work Plans- Communication Plans $139,555 Security Plan to include:- Procedures for protection of sensitive User data- Standards and guidelines to address all data processing of Covered Population$373,500Total3State Business Blueprint to include: $2,088,908 - Current State assessment of State processes $4,584,420 - Design of "future state" processes  $695,980 - Change Management Plan  $75,935 - Interface Plan $373,500 Previous Total $7,818,743 New Total 4-8 $3,388,485 Org. mgmt. ImplementationNote: $101,247 Migration Plan Implementation for all phases includes: $7,818,743 Previous Total- HR Configuration $11,308,475 New Total- Load of State data- Buildout of interfaces- IVR scripts9 $5,987,926 Implementation for Staffing Administration - State-related Knowledge Management System content $887,400 Training Plan/development for Staffing Administration- Fulfillment development $85,038 Business Continuity Plan for Staffing Administration- Report development $120,305 User Acceptance test plan for Staffing Administration- Environment/security Setup $95,000 HR Scorecard for Staffing Administration- Quality assessment- Change management/communication/training for State $11,308,475 Previous Total $18,484,144 New Total10-12 $12,530,738 Implementation of HR/Payroll Administration $2,005,200 Training Plan/development for HR/Payroll Administration $127,500 Business Continuity Plan for HR/Payroll Administration $651,105 User Acceptance test plan for HR/Payroll Administration $115,000 HR Scorecard for HR/Payroll Administration $2,273,594 HR personnel records imaged $18,484,144 Previous Total $36,187,281 New Total13-14 $2,085,200 Implementation of training  $135,200 Training Plan for training $44,800 Business Continuity Plan for training $37,534 User Acceptance test plan for training $34,000 HR Scorecard for training $36,187,281 Previous Total $38,524,015 New Total15 $1,945,375 Implementation of Benefits Administration $854,200 Training Plan for Benefits Administration $82,400 Business Continuity Plan for Benefits Administration $89,500 User Acceptance test plan for Benefits Administration $83,000 HR Scorecard for Benefits Administration $38,524,015 Previous Total $41,578,490 New TotalPost-ImplementationBeginning month 16 and continuing through month 36, the fee to purchase the items set forth in this Exhibit shall be $41,578,490 less $450,000 per month. Beginning month 37 and continuing through the end of the term, the fee to purchase the items set forth in this Exhibit shall be reduced by $656,000 instead of $450,000 per month.     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