Cost Optimization Sample Clauses
The Cost Optimization clause establishes guidelines and requirements for minimizing expenses associated with a contract or project. It typically obligates the parties to seek efficiencies, use cost-effective methods, or periodically review expenditures to identify potential savings. By formalizing these expectations, the clause helps ensure that resources are used efficiently and that unnecessary costs are avoided, ultimately protecting the financial interests of all parties involved.
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Cost Optimization. The hardware acquisition and leasing services agreement must provide hardware leasing that meets the agencies’ requirements in a cost-optimized method. HHS agencies continually look for ways to obtain and provide services in the most cost effective manner. Implementing an enterprise-wide hardware leasing solution will provide the awarded vendor the opportunity to optimize their solutions over a much larger user base with a streamlined management model.
Cost Optimization. 2.1. Commencing with the calendar year ending December 31, 2022, and each calendar year thereafter during the Term, within thirty (30) days following the end of such year, Rockwell shall deliver to DaVita a written notice (“Cost Optimization Notice”) containing reasonably detailed documentation setting forth: (i) Rockwell’s actual Adjusted Gross Margin Percentage for such year, (ii) Rockwell’s calculation of the increase or decrease (as applicable) in its actual Adjusted Gross Margin Percentage for such year as compared with (x) for year-end 2022, ▇▇▇▇▇▇▇▇’▇ Adjusted Gross Margin Percentage based on the 2022 Budget or (y) for year-end 2023, Rockwell’s actual 2022 Adjusted Gross Margin Percentage, and (iii) Rockwell’s calculation of the resulting amount (if any) owed to DaVita for such year. DaVita will have thirty (30) days after receipt by DaVita of each Cost Optimization Notice to review the documentation of ▇▇▇▇▇▇▇▇’▇ calculations for such year. ▇▇▇▇▇▇▇▇ agrees to reasonably cooperate with DaVita’s review and will provide DaVita with reasonable access to ▇▇▇▇▇▇▇▇’▇ books and records relating to such Adjusted Gross Margin Percentage during normal business hours. If DaVita disagrees with ▇▇▇▇▇▇▇▇’▇ calculation of Adjusted Gross Margin Percentage for such year, DaVita may deliver a notice setting forth its objections to Rockwell’s calculation of Adjusted Gross Margin Percentage. DaVita and ▇▇▇▇▇▇▇▇ will use commercially reasonable efforts to reach an agreement on the calculation of Adjusted Gross Margin Percentage for such year for a period of thirty (30) days after receipt by ▇▇▇▇▇▇▇▇ of such notice. If DaVita and ▇▇▇▇▇▇▇▇ are not able to agree on the calculation of Adjusted Gross Margin Percentage for such year, the Parties will retain a mutually acceptable independent accounting firm (using the procedures described in Article XVI of the Agreement) to determine Adjusted Gross Margin Percentage. The cost of such accountant will be borne equally by the Parties. For the avoidance of doubt, the calculations to which reference is made in this Section 2.1 refer to sales and delivery of Products to DaVita and costs related thereto.
2.2. If Rockwell’s Adjusted Gross Margin Percentage (x) for year-end 2022, is greater than 2022 Budget, or (y) for year-end 2023, is greater than Rockwell’s actual 2022 Adjusted Gross Margin Percentage, then DaVita shall invoice Rockwell for an amount equal to: (i) fifty percent (50%) of the percentage increase in Adjusted Gross Marg...