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A file of all inspections conducted by the Contractor and corrective actions taken must be <br />maintained. This should include follow -up inspections to ensure that corrective action was <br />appropriate, complete, and timely. This documentation shall be organized in a logical manner, <br />kept current, and made available to CCTS during the term of the contract. <br />Quality Assurance <br />CCTS shall evaluate the contractor's performance under this contract. All surveillance <br />observations shall be recorded by CCTS. When an observation indicates defective performance, <br />CCTS shall request the contractor's representative to initial the observation. All observations of <br />incomplete or defective performance, or safety and health standards violated shall be recorded. <br />CCTS verification inspections of services shall not constitute acceptance, nor replace the <br />contractor inspection or in any way relieve the contractor of any responsibility to take all actions <br />necessary to assure highest quality of service rendered. <br />The contractor may be required to meet with CCTS as often as necessary as determined by the <br />CCTS. <br />Owner experience twenty five (25) years or greater in the automotive work field. <br />Administration <br />Upon contract award, CCTS will meet with the Contractor to review procedures for monitoring <br />contract performance. In general, the Contractor shall anticipate that CCTS will use standard <br />industry rate publications for cost and performance time guidelines, obtain second opinions of <br />service work at random, and schedule on -site visits with shop management to review service <br />performance. Contract renewal meetings shall be held prior to the end of the contract period <br />expiration. At that time, CCTS will offer a contract extension or may notify the Contractor of its <br />intent not to renew. <br />Contract Cost Adlustments <br />The costs, including the Contractor fees, shall be adjusted for the second and subsequent years <br />of the Contract, prior to the end of the previous contract term. During the Annual Meeting, labor <br />rates and costs of doing business will be reviewed. Changes in labor rates will be negotiated. <br />The Consumer Price Index (CPI) and changes in the Minimum Wage Rate will serve as guides in <br />these discussions / negotiations. <br />Contract Termination <br />With a thirty (30) day written notice, CCTS may terminate this contract in whole or in part, for <br />convenience or because of the failure of the Contractor to fulfill the contract obligations. Upon <br />receipt of the notice, the Contractor shall (1) immediately discontinue all services affected (unless <br />the notice directs otherwise), and (2) deliver to CCTS all equipment (property of CCTS), data, <br />drawings, specifications, reports, estimates, summaries, and other information and materials <br />accumulated in performing this contract, whether completed or in process. <br />16 <br />Attachment number 1 <br />F -5 Page 86 <br />