Common use of Fixed Unit Pricing Clause in Contracts

Fixed Unit Pricing. Fees for recurring Services are aggregated and based upon fixed unit prices for the resource consumption or volumes identified in the applicable Baselines. The fees represent all variable and fixed cost components comprising ACS’ charges to deliver the Services. In accordance with the terms set forth in Section 6.2.3, the fees will be adjusted (subject to the Deadband Allowance described below) to the actual resource consumption/volumes in the user environment, and will take effect on the invoice for the following month. For any resource consumption/volumes that may vary from day-to-day or other periodic basis, a monthly average will be used to determine whether an adjustment based on an increase or decrease in resource consumption or volumes should be made. The Parties have established a “Deadband Allowance” that provides for Services growth and contraction within a five percent (5%) variance above and below the Baselines. Accordingly, if there is a variation in a resource consumption or volume within the Deadband Allowance, there will be no fee adjustment.

Appears in 2 contracts

Sources: Information Technology Services Agreement (Symetra Financial CORP), Information Technology Services Agreement (Symetra Financial CORP)