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SIGNATURE TECHNOLOGY GROUP <br />Data Center Solutions Professionals <br />REQUIRED PERFORMANCE STANDARDS <br />AND <br />PENALTIES FOR NON-PERFORMANCE <br />The Acceptable Quality Level (AQL) shall be used as a measure to express the maximum <br />deviation allowed from the established Agreement standard; which if exceeded shall be <br />considered unacceptable performance. The AQL does not imply that the vendor may knowingly <br />perform in a defective manner, but instead it implies that the City recognizes the fact that there <br />exists an element of unintentional human error. If defective performance exceeds the standard <br />as stated in the Required Performance Standards defined herein, a Contract Discrepancy <br />Report shall be issued, a copy of which shall be provided to STG and other action shall be taken <br />as the City deems necessary. Additionally, STG is required to correct the deficiency. <br />The Required Performance Standards shall identify the key performance indicators of the <br />Agreement and those shall be evaluated by the City to ensure that STG meets the Agreement <br />Performance Standards. <br />STG shall grant Monthly Maintenance Charge (MMC) credits to the City for STG's failure to <br />respond timely, STG's failure to repair equipment timely and for equipment effectiveness level <br />deficiencies. The MMC applies to each equipment item that is to be duly maintained by STG, <br />and is defined as the fixed monthly/annual maintenance charge, as specified in Exhibit D - <br />Asset List. Equipment item credits will be applied against the MMC for the applicable <br />equipment item. <br />STG shall accumulate response, repair and downtime information by equipment item and shall <br />use the information to calculate MMC credits for each equipment item on a calendar month <br />basis. The City will also accumulate response, repair and downtime information and calculate <br />MMC credits. STG's records shall be subject to comparison with the City's records. STG shall <br />itemize MMC credits due to the City, by equipment item; on each monthly/annual invoice (as the <br />case may be) and reduce the invoice charges by the amount of the credits. STG shall apply <br />MMC credits for any given month on that months' corresponding Invoice. <br />If STG's maintenance personnel fail to arrive at the City site within the stipulated response time, <br />STG shall grant a credit to the City equal to twenty five (25) percent of the MMC for all the <br />equipment items that are inoperable due to a malfunction. In the event that the City notifies STG <br />of the need for remedial maintenance service but defers STG's arrival, the deferred time will be <br />deducted from STG's total response time before calculating any credits due to the City <br />If STG's maintenance personnel fail to repair inoperable equipment within the stipulated repair <br />time, STG shall grant a credit to the City equal to twenty five (25) percent of the MMC for all the <br />equipment items that are inoperable due to the malfunction. In the event that the City defers <br />STG's arrival or denies STG access to inoperable equipment or to other equipment required to <br />complete the repair(s), the deferred and/or denied time will be deducted from the total repair <br />time before calculating any credits due to the City. This provision does not apply to equipment <br />that becomes inoperable due to the fault or negligence of the City. <br />Page 4 of 5 <br />2424 West Desert Cove Avenue, Phoenix, AZ 85029 • (800) 229-7900 • www.SignatureTechnology.com <br />Exhibit D <br />