MATERIAL COST REDUCTION OPPORTUNITIES Sample Clauses

MATERIAL COST REDUCTION OPPORTUNITIES. ACS shall advise the Roadway Contract Executive of each opportunity to materially reduce costs that is discovered or made known to ACS and to assist in estimating the magnitude thereof. If ACS proposes an innovative, value-adding, cost-saving solution outside the scope of Services, which Roadway has not previously considered or began to investigate, that Roadway, in its sole discretion, elects to implement, then in each of the three (3) years following such implementation, ACS shall receive or retain, as appropriate, an amount equal to twenty-five percent (25%) of Roadway's actual net cost reduction proximately caused by the solution during such year. This Section 2.8(b) shall apply to net cost reductions that accrue during the Term under accrual basis accounting under Generally Accepted Accounting Principles consistently applied by Roadway, regardless of when the avoided costs would have been incurred.