BDS PAYMENT PROCESS Standard Payment Process Applicable to GP1, GP2, GP3, GP4, GP6, GP7, GP8 and GP9 Terms of Payment. Subject to any set-off or deduction authorized under this Contract or applicable law, Buyer’s payment terms are as follows: Supplier Prime Term (Net Payment Payment Size Contract Type Days) Discounts Processing Small* U.S. Government, Net 15 0.25% 10 Net 15 On the – “net including Military payment” date Sales Small* Non-U.S. Net 30 1.0% 10 Net 30 On the – “net Government payment” date Large U.S. Government, Net 30 1.0% 10 Net 30 On the – including Foreign 0.75% 15 Net 30 Wednesday – Military Sales 0.5% 20 Net 30 immediately – following the “net payment” date Large Non-U.S. Net 90 N/A On the “net Government payment” date * As defined by the U.S. Small Business Administration In all cases, when the payment processing date is a Federal Reserve Bank holiday, the payment shall be made on the next business day which is not a Federal Reserve Bank holiday. Adjustment Process Applicable to GP1 and GP7 Notwithstanding anything to the contrary in the Contract, in the event the Seller’s total quantity of Goods actually delivered under the Contract divided by the total quantity of Goods scheduled to be delivered, as measured on a rolling three (3) month average basis (the “Payment Adjustment Factor”), falls below 90% or exceeds 100% at any time during the performance of the Contract, Seller shall devote the necessary resources and work cooperatively with to resolve the delivery performance issues. If after a reasonable time the Parties are unable to come to a resolution reasonably agreeable to Buyer that results in the improvement Seller’s Payment Adjustment Factor under this Contract, as measured in accordance with the foregoing, Buyer shall have the right to adjust the payment terms of this Contract by increasing the applicable payment term in the Contract by 30 days. The payment due date for invoices may remain extended by Buyer until Seller’s Payment Adjustment Factor, as measured in accordance with the foregoing, is improved to no less than 90% and no greater than 100% under the Contract. Buyer reserves the right, in its sole discretion, to revert to the original payment term at any time.
BDS PAYMENT PROCESS Standard Payment Process Applicable to GP1, GP2, GP3, GP4, GP6, GP7, GP8 and GP9 Terms of Payment. Subject to any set-off or deduction authorized under this Contract or applicable law, Buyer’s payment terms are as follows: Supplier Size Prime Contract Type Term (Net Days) Payment Discounts Payment Processing Small* U.S. Government, including Military Sales Net 15 0.25% 10 – Net 15 On the “net payment” date Small* Non-U.S. Government Net 30 1.0% 10 – Net 30 On the “net payment” date Large U.S. Government, including Foreign Military Sales Net 30 1.0% 10 – Net 30 0.75% 15 – Net 30 0.5% 20 – Net 30 On the Wednesday immediately following the “net payment” date Large Non-U.S. Government Net 90 N/A On the “net payment” date * As defined by the U.S. Small Business Administration In all cases, when the payment processing date is a Federal Reserve Bank holiday, the payment shall be made on the next business day which is not a Federal Reserve Bank holiday. Adjustment Process Applicable to GP1 and GP7 Notwithstanding anything to the contrary in the Contract, in the event the Seller’s total quantity of Goods actually delivered under the Contract divided by the total quantity of Goods scheduled to be delivered, as measured on a rolling three (3) month average basis (the “Payment Adjustment Factor”), falls below 90% or exceeds 100% at any time during the performance of the Contract, Seller shall devote the necessary resources and work cooperatively with to resolve the delivery performance issues. If after a reasonable time the Parties are unable to come to a resolution reasonably agreeable to Buyer that results in the improvement Seller’s Payment Adjustment Factor under this Contract, as measured in accordance with the foregoing, Buyer shall have the right to adjust the payment terms of this Contract by increasing the applicable payment term in the Contract by 30 days. The payment due date for invoices may remain extended by Buyer until Seller’s Payment Adjustment Factor, as measured in accordance with the foregoing, is improved to no less than 90% and no greater than 100% under the Contract. Buyer reserves the right, in its sole discretion, to revert to the original payment term at any time.
bds_payment_terms_update_10_14_16.docx