understanding that this is basically a ITS’ “pass through” process. Please provide a detailed explanation of the relationship of who will be providing the requested maintenance, to whom the purchase order is made, and to whom the remittance will be made. If there is a difference in the year one maintenance purchase versus subsequent years of maintenance, the responding Vendor must clarify and explain. Manufacturer Direct Maintenance when sold directly through the manufacturer: Fixed Cost If responding Vendor is the direct manufacturer, he must propose annual fixed pricing for three years of the requested maintenance. Vendor must provide all details of the maintenance/support and all associated costs. It is preference that the proposal is ITS’ Manufacturer’s a not-to-exceed firm commitment. In the event that the manufacturer cannot commit to a fixed cost for the subsequent years of maintenance after year one, Manufacturer must specify the annual maintenance increase ceiling offered by his company on the proposed products. Vendor must state his policy regarding increasing maintenance charges. Price escalations for Maintenance shall not exceed 5% per year. Manufacturer Direct Maintenance when sold through 3rd Party: Fixed Cost-Plus Percentages In the case of a third-party ITS realizes “pass-through” that the responding reseller may not be able to guarantee a fixed price for maintenance after year one since his proposal is dependent on the manufacturer’s pricing or possibly on a distributor’s pricing. It is preference that the responding reseller work ITS’ with the manufacturer to obtain a commitment for a firm fixed price over the requested maintenance period. In the event that the responding reseller cannot make a firm fixed maintenance proposal for all the years requested, the responding reseller is required to provide a fixed percentage for his mark-up
ITS’ understanding that this is basically a “pass through” process. Please provide a detailed explanation of the relationship of who will be providing the requested maintenance, to whom the purchase order is made, and to whom the remittance will be made. If there is a difference in the year one maintenance purchase versus subsequent years of maintenance, the responding Vendor must clarify and explain. Manufacturer Direct Maintenance when sold directly through the manufacturer: Fixed Cost If responding Vendor is the direct manufacturer, he must propose annual fixed pricing for three years of the requested maintenance. Vendor must provide all details of the maintenance/support and all associated costs. It is ITS’ preference that the Manufacturer’s proposal is a not-to-exceed firm commitment. In the event that the manufacturer cannot commit to a fixed cost for the subsequent years of maintenance after year one, Manufacturer must specify the annual maintenance increase ceiling offered by his company on the proposed products. Vendor must state his policy regarding increasing maintenance charges. Price escalations for Maintenance shall not exceed 5% per year. Manufacturer Direct Maintenance when sold through 3rd Party: Fixed Cost-Plus Percentages In the case of a third-party “pass-through” ITS realizes that the responding reseller may not be able to guarantee a fixed price for maintenance after year one since his proposal is dependent on the manufacturer’s pricing or possibly on a distributor’s pricing. It is ITS’ preference that the responding reseller work with the manufacturer to obtain a commitment for a firm fixed price over the requested maintenance period. In the event that the responding reseller cannot make a firm fixed maintenance proposal for all the years requested, the responding reseller is required to provide a fixed percentage for his mark-up
42216%20LOC%20Memorandum.docx