3.00 PAYMENT PROVISIONS 8/13/70 3.01 Fixed Price Performance Incentive Clause The performance incentive measurement for establishing contract price shall be based on the results of pre- and post-test gains as measured by standardized tests established in each subject, and interim performance tests after completion of each period of approximately six (6) weeks or thirty (30) hours of instruction in each subject. 3.02 Consideration and Payment This section defines the consideration and payment to the Contractor. The total maximum amount available for payment on this Fixed Price Performance Incentive Contract shall be as follows: A. Achievement Motivation B. Management C. Vocational $124,606. 24,500. Total $208,719. 3.02.1 Billing The contractor will submit an initial billing in the amount of $27,083. for startup cost within seven (7) days from the effective date of operations. Thereafter, the contractor will submit ten equal invoices in the amount of $18,164. at the end of each month. The above billings will be adjusted on a cumulative to-date basis each quarter according to the contractor's actual performance as the information becomes available and as delineated in the description which follows. A. MOTIVATION ACHIEVEMENT REIMBURSEMENT Final reimbursement to the contractor will be based on a fixed amount per student per grade level increase in accordance with Tables 1, 2, and 3. The students in Motivational divided into two main groups: Achievement are First, 500 students who shall receive Motivation Achievement training and who, in addition, shall also receive Communications or Math or Communications and Math training. 69 8/13/70 Second, 125 students who shall receive Motivation The Contractor shall be paid for the performance of the students in accordance with the provisions of the Tables 1 to 3 inclusive which are affixed to this Contract and made a part hereof: Group First Group (as above defined) Second Group (as above defined) Tables 1 & 2 In no event shall the cumulative payment provided for Motivation Achievement exceed a total of $124,606.00 or an average of $199.37 per student. B. OCCUPATIONAL REIMBURSEMENT Final reimbursement to the contractor for occupational training will be based on a fixed amount per student per level of attainment in accordance with Table 4. Table 4 includes all students in the Metals, Automotive, and Drafting occupational programs. The maximum average amount for which the contractor may be reimbursed for training an occupational student will be $397.42. In addition to reimbursement for training, the contractor will receive $50.00 per student for placement on a job. The contractor shall be entitled to such bonus upon the student's remaining on the job for thirty (30) calendar days from date of placement. The $50.00 placement bonus is in addition to the $397.42 allowed for occupational training. In no event shall the cumulative payments provided for Occupational Training and placement exceed $59,613.00. C. MANAGEMENT COST Reimbursement to the Contractor will be made in the amount of $24,500.00 as payment of the direct and indirect costs of providing a Project Administrator as is required under this Contract. 3.03 Student Dropout Unit Price If any student drops out or otherwise leaves either the Reading or Mathematics programs through no fault of Thiokol Chemical Corporation and for cause as 8/13/70 defined, the unit price for each such student shall be computed on the basis of the percentage of instructional hours the dropout was in attendance out of the total number of hours (180) of the program. The unit price to be paid for the dropout shall be that percentage of the price payable for the average pre- to post-test gains for all students enrolled in the appropriate program or programs, and average interim performance test achievement. Whenever possible, all student dropouts shall be administered post-tests by the Auditing Contractor. If a dropout has been in the program for more than half an instructional year, and has been post-tested, the results of the post-test shall form the basis for computing the payment due the Thiokol Corporation in place of the formula presented in the previous paragraph. The unit price for each such dropout shall be determined by extrapolating his actual gain to the total gain he would have achieved if he remained in the program to its completion, and also by extrapolating his achievement on interim performance tests taken. The unit price paid to Thiokol Corporation will be the proportional part of the price payable for the projected gain and interim test performance determined from the number of hours the student was in the program. Thiokol Corporation shall not be paid any cost or fee for any student who drops out of the program for any reason not stipulated in paragraph 2.04. 3.04 Replacement Students The unit price for students who are placed in the program as replacements for dropouts shall be calculated on the same basis as those described for dropouts in the two preceding paragraphs. 3.05 Students Not Tested If a student is unable to take any regularly scheduled test that is a basis for Contractor reimbursement or regularly scheduled make-up tests, and if said student has been in attendance at the Accelerated Learning Achievement Center no less than eighty-five (85%) per cent of the time for the instructional period being evaluated, it shall be assumed that said student's score is the same as the average test or gain score, whichever is appropriate, for all students in that Accelerated Learning Achievement Center or the same grade level as said student. 3.06 Limitation of Payment 8/13/70 Within forty-five (45) days after the final postmeasure test results are established and reported by the Auditing Contractor to the Contractor, the Contractor shall submit an adjusted final voucher with detailed supporting information for each unit price for each subject for each student enrolled in the program and total additional amounts that may be due in all subject areas. 4.00 MANAGEMENT SERVICES The Dallas Independent School District is involved in a larger project entitled "Guaranteed Student Performance in Education and Training." This contract is one portion of said project. It is the intent of the Dallas Independent School District to award other contracts to other contractors for portions of said project other than Achievement Motivation & Occupational Training. For example, it is contemplated that the Dallas Independent School District may simultaneously with the award of this Contract award a separate and distinct contract to the Meredith Corporation for programs in Communications and Mathematics. Project Administrator Thiokol shall appoint the Project Administrator, subject to the prior approval of the Project Director. The Project Administrator will report directly to the Project Director. He will be responsible for classroom scheduling and other administrative functions and decisions not expressly reserved to the individual Contractors, and will decide all routine matters concerning administration of the project. He will communicate his decisions to both Contractors, and either Contractor may appeal such decisions directly to the Project Director. All progress reports, position papers and other communications will be made individually by each Contractor to the Project Director, and a copy of all written communications will be forwarded to the Project Administrator. 5.00 REPORTS AND EVALUATION Contractor shall prepare any position papers or reports which are required to be filed with the Dallas Independent School District in order to carry out the intent of this Contract. Said documents shall be filed with the Project Director. The Dallas Independent School District shall separately evaluate the performance of Thiokol in 8/13/70 each area of training (i.e., Achievement Motivation and Occupational Training). Contractor shall submit an original and five (5) copies of any required reports within five (5) working days after each six-week interim period. 6.00 PUBLIC RELATIONS All public relations or publicity releases or other similar disseminations or announcements or community relation activities shall be cleared through the Project Director prior to release. 7.00 INTERPRETATIONS OR MODIFICATIONS No oral statement of any person and no written statement of anyone other than the Project Director or his authorized representative shall modify or otherwise affect the terms or meaning of this contract. All requests for modifications or changes shall be made in writing to the Project Director. 8.00 OTHER CONTRACTORS The DISD may undertake or award other contracts for additional or related work, and the Contractor shall fully cooperate with such other contractors and DISD employees. The Contractor shall not commit any act which will interfere with the performance of work by any other contractor or by DISD employees. The foregoing paragraph shall be included in the contracts of all contractors with whom the Contractor will be required to cooperate in order to require the same standard of cooperation by such other contractors with the Contractor. 9.00 INSPECTION The DISD, through any authorized representatives, has the right, at all reasonable times, to inspect or otherwise evaluate the work performed or being performed hereunder and the premises in which it is being performed. All inspections and evaluations shall be performed in such a manner as will not unduly interfere with the Contractor's performance under this Contract. 10.00 NOTICE AND ASSISTANCE REGARDING PATENT AND COPYRIGHT INFRINGEMENT Thiokol Corporation agrees to hold DISD harmless of all lost costs and expenses because of any infringement |