Third Party Audits and Reporting Requirements. At no additional cost to the State, the Contractor is to contract with an independent third party firm (to be approved by the Department) to conduct, at a minimum, at least one random sampling of the Contractor’s price list per quarter in accordance with Section
Third Party Audits and Reporting Requirements. The Contractor shall obtain a third party firm at no additional cost to the State to conduct external price audits on this contract. The Contractor shall contract with a third party firm (to be approved by the Department) to conduct a monthly random sampling (a minimum of 570 items per month) of contract items to confirm the accuracy of list price, discount % and net price. Specifically, the third party firm will confirm the prices displayed on the Contractor’s website are equal to or less than the contract terms. The third party firm shall provide a monthly report to the Department indicating the Price Accuracy Rate (Price Accuracy Rate = the number of audited items each month where the net price (calculated by multiplying the list price by 1 minus the discount % for that product category) is equal to or less than the contract price (calculated by multiplying the list price, outlined in Section 3.2, by 1 minus the discount % for that product category) divided by the number of audited items). Also, at a minimum, the monthly report will identify items not in compliance with the contract terms, provide the date of the audit, and screenshots of the Contractor’s on-line catalog of all items in the random sample that were not in compliance with the contract terms. The Contractor shall also Contract with a third party firm (to be approved by the Department) to conduct an annual (on each anniversary of the contract effective date) sampling of Customer invoices (a minimum of 600 customer invoices for the 12 month period) to confirm accuracy of list prices and discount %, and that net prices of invoiced items are equal to or less than the contract terms. Specifically, the third party firm will confirm the price charged to the Customer is equal to or less than the contract terms during that time period. The third party firm shall provide an annual report to the Department indicating the Price Accuracy Rate (Price Accuracy Rate = the number of audited items each year where the net price (calculated by multiplying the list price by 1 minus the discount % for that product category) is equal to or less than the contract price (calculated by multiplying the list price, outlined in Section 3.2, by 1 minus the discount % for that product category) divided by the number of audited items). Also, at a minimum, the annual report will include copies of the invoices in the random sample that were not in compliance with the contract terms.
Third Party Audits and Reporting Requirements. At no additional cost to the State, the Contractor is to contract with an independent third party firm (to be approved by the Department) to conduct, at a minimum, at least one random sampling of the Contractor’s price list per quarter. The random sample is to be large enough to ensure the results of the audit are at a 95 percent level of confidence with a margin of error of +/- three (3) percent. Specifically, the third party firm will confirm the discounts off the Microsoft ERP Level D price list for government and ERP Level A for academic, which will be posted on the DMS contract website, are the same as or better than with the discounts offered at contract award. The third party firm is to provide the results of each quarterly audit to the Department’s Contract Manager. At a minimum, the audit is to identify the following: • Date of the audit • Name of the auditor • Items selected in the random sampling • Price listed on the Microsoft ERP price list • The Contractor’s minimum discount rate for that item • The price resulting from Microsoft ERP minus Contractor discount • Price on the Contractor’s price sheet • The audit results (i.e. difference +/-) The Contractor’s failure to comply with this requirement may result in financial consequences and may also result in the Contractor’s immediate removal from the Contract. The third party auditor may, upon the Department’s request, be asked to also compare actual price quotes received by an Eligible User to ensure that price quotes to Customers are the same as or better than pricing on the Contractor’s price sheet most recently approved by the Department. Upon such request, the third party auditor is to provide to the Department the same information as noted above as it relates to that individual price quote. The third party auditor is to consider the pricing information provided to them confidential and is to not release the information to any other party outside of the Department.
