In late 2010 significant changes were made to the Configura Order Information tab to simplify identification of contract orders. Since that time, I’ve had the opportunity to train most of your Configura order entry teams on the details of these changes and why it’s important for you to identify contract sales. The identification of contract orders is important for several reasons:
- Contract reporting requirements
- Correct calculation for payment of administration fees based on contract activity
- Avoidance of financial penalties due to incorrect reporting
- Contract renewal consideration
- Prioritization of pricing changes
- Overall contract compliance
Based on research I’m conducting in support of our follow-on GSA Schedule 71, it’s evident that all contract sales are not being identified on the Configura Order Information tab. For this reason, Spacesaver is implementing a policy that the distributor is responsible to reimburse Spacesaver for any costs we incur if contract orders are not identified resulting in incorrect reporting to our contract partners. This was included beginning in the 2013 Area Contractor Agreement.
Our contracts include the right for contract partners to audit our records. Several contracts also include financial penalties for under- or over-reporting of contract sales activities. Our contract partners deem this a revenue source and verify accurate reporting on their side either through internal sales reporting obtained from their respective purchasing departments or through an audit of our records. In the event an audit uncovers incorrect sales reporting resulting in under- or over-payment of administration fees, financial penalties will likely be assessed. For example, if a Premier audit reveals under-reporting in excess of the lesser of $25,000 or 5% of total fees due in a quarter or in aggregate for the entire audit period, in addition to the payment of past-due fees we are required to pay Premier’s audit costs including labor, outside consultant fees, out of pocket expenses, and administrative charges to perform the review. Other contracts include penalties, such as, a late fee of 1.5% per month, administrative damages of 0.5% of the total under-reported admin fees, etc.
Spacesaver understands the importance of providing a variety of contracts for your toolbox – and I’m always looking for new contracts to help you sell! Your responsibility is to assist with compliance by identifying contract sales on the Configura Order Information tab. Please don’t hesitate to contact Patty at (920) 563-0590 if you have any questions or to discuss additional training. As always, thank you for your business!