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E. Total Cost of Ownership <br />1. Please submit a revised cost sheet (using the form supplied with this letter) that reflects your response to the <br />issues above. <br />Lawson and S &S Response: L:m son's and S&-S' reN isions are included on the attached cost skeet. <br />V. Contractual Issues <br />The City is interested in a number of key contractual provisions. Please indicate which, if any of these issues you <br />consider to be problematic, along with your rationale and suggested alternative. <br />Implementation Services Agreement <br />1) Warranty. The City expects a robust warranty provision that provides adequate assurances as to the quality of the <br />work performed and the ability of the system to meet the City's business requirements. Key points include: <br />A. Warranty extends 24 months from final acceptance of the complete System. <br />Lawson Response: Lawson Software's Product Narranty is in effect as long as the City maintains a valid <br />maintenance contract for the licensed product. Therefore, the Product Warranty can be indefinite with a <br />renetyal ofthe maintenance contract each °car. <br />S &S Response XXX: <br />B. Contractor warrants to functional requirements document and the design document. <br />Lawson and S &S Response: Lawson Software will warrant to the positive responses in the functional matrix <br />document for a period of time should Lawson be selected vendor of choice. Lawson Software's Product <br />Warranty is in effect as long as the City maintains a valid maintenance contract for the licensed product. <br />Therefore, the Product Warranty can be indefinite with a renewal of the maintenance contract each year. <br />Lawson and S &S will provide the following warranty for Services: Services Warranty. Lawson and Systems & <br />Software warrants that at the time of Services delivery, the Services will be provided by trained personnel and in a <br />professional manner using commercially reasonable efforts. <br />C. Contractor warrants the functionality of system as a whole. In other words, the City expects the contractor to <br />warrant the integration of the system, not the City's hardware infrastructure. <br />Lawson and S &S Response. Lawson cannot warrant the "system ". We can warrant that the Sollware will <br />work in accordance with the Documentation as stated in the Operation warranty above. <br />D. Contractor warrants that any required customizations will not impede the City's ability to upgrade the software <br />in perpetuity. <br />Lawson and S &S Response: Lawson cnco ►urages minimal customizations during implementation which has <br />been our experience with public sector customers. We are very aware of this concern (for all of our clients) <br />and as a result, have implemented nearly 100 "�o without customizing Lawson code. By utilizing our tools, <br />"customizations" are not normally required and "perscnalizatiims" using the tools are protected during <br />upgrades so long as there are no changes to the source code. <br />E. The warranty remedy will provide for a timely response by contractor, especially for issues preventing <br />productive use of the system. <br />Lawson and S &S Response: Lawson can agree to use commercially reasonable efforts to fix any warranty <br />breaches during the warranty period. Should Lawson be unable to cure the warranty breach. Lawson can agree <br />to the following remedy: The City may recover direct damages for the Lawson - Maintained Products subject to <br />the damage claim, including up to a refund of the License fees or Maintenance Fees paid by the City to Lawson <br />Lawson Software — Confidential 60 <br />