Even though Continuum Buying Alliance believes it can achieve the best prices for the best products at the lowest discounts for its Members, there is no guaranty that Continuum Buying Alliance can achieve such results at all times and for all Members.
Continuum Buying Alliance receives administrative fees from its vendors for the reasonable costs associated with the procurement of products and services and the administrations of contracts. Therefore, Continuum Buying Alliance’s Agreement with each member promises that participating vendors from which the Member will purchase products or services will pay a fee to the GPO of no more than 3 percent of the purchase prices of the products or services provided by that vendor. In the event that Continuum Buying Alliance receives an administrative fee from a vendor that exceeds 3% of the purchase price of the products and services purchased by Member, Continuum Buying Alliance shall, on a schedule attached to its Agreement with Member or a schedule identified on a secure company website accessible by Member (which schedule shall become a part of the Agreement with Member), specify the amount Continuum Buying Alliance will be paid by such vendor for such Member’s purchases. Such amount may be a fixed sum or a fixed percentage of the value of purchases made from the vendor by the Member. Continuum Buying Alliance will provide a report of administrative fees received from each vendor for Member’s purchases to Member at least once every calendar year. Continuum Buying Alliance will also provide this report to the Secretary of Health and Human Services upon request.
Member understands that the discounts, or any reduction in the amount a buyer is charged for an item or service that is provided by GPO’s contract vendors as part of the Continuum Buying Alliance’s purchasing and vendor agreements, are discounts within the meaning of 42 U.S.C. § 1320(a)-7(b)(3)(A) of the Social Security Act and the regulations promulgated thereunder at 42 C.F.R. § 1001.952(h) and that Member may have an obligation to report this discount to any state or federal program that provides costs or charge base reimbursement to Member for items to which the discounts apply.
Continuum Buying Alliance attempts to operate as efficiently as possible to minimize its costs.
Continuum Buying Alliance may distribute to its Members all or portions of the administrative fees that it receives in excess of its costs.