3. Term of Contract. This Contract shall be effective as of the Effective Date
executed and shall terminate five (5) years from the Effective Date or after all three
optional Vans have been purchased and delivered, whichever is later, unless earlier
terminated or extended as provided for herein. Provided, however, that in no event shall the
term of this Contract be for longer than 5 years.
4. Purchase Price for Buses. The total price of the Buses, as further
summarized on Exhibit A of this Contract, shall not exceed $126,465 each for six (6) Vans
for a total of $758,790, without City's prior written approval. The cost of the optional three
(3) Vans shall not exceed $126,465 each, without City's prior written approval.
A. PPI Index Escalator
The City reserves the right to order buses and equipment over the five (5) year
period beginning on the Effective Date. The prices of such vans and equipment shall be at
the prices in Exhibit A. These prices shall remain firm/fixed for any orders issued by the
City within a period of two hundred seventy (270) days of contract award. The price(s) of
any buses or equipment order by the procuring agencies after the initial two hundred
seventy (270) day firm/fixed price period shall be that quoted (Base Order Prices)
plus/minus any change which will be calculated based on the following formula which
utilizes the U.S. Department of Labor/Bureau Of Labor Statistics Producer Price Index
(PPD Category 1413, “Trucks and Bus Bodies”. The change in this index will be used to
adjust the Base Order Prices. However, in no event will the price(s) for any purchase
exceed, by more than ten percent (10%) the previous purchase in the proceeding twelve (12)
month period.
If any significant equipment modifications are made, in compliance with the terms
of the contract, the City and the Seller will enter into negotiations to determine the price of
the equipment modification(s) and the impact of the modification(s) on the Base Order
Price(s).
5. Invoicing and Payment. Seller shall invoice the City for the full price of each
Van within thirty (30) calendar days following the date of final acceptance for such Van.
For purposes of this Contract, "date of final acceptance" shall mean the date each Van is
inspected and accepted pursuant to Section 7 of this Contract. No finance charges shall be
paid by the City. The City shall pay Seller within thirty (30) calendar days of receipt of an
undisputed invoice or payment will be made in a reasonable length of time after approval
and receipt of funds from FTA or other funding sources, where applicable. There will be no
prepayments or down payments made on this procurement.
A. Invoicing. Seller’s invoices must include the City’s Purchase Order number,
be billed and payable in U.S. dollars and paid by payment methods agreed to by both the
Seller and City. All requests for payment shall be mailed to: Accounts Payable, City of
Nashua, 229 Main St., Nashua, New Hampshire 03060.
