Section 3.04 - Suspension of the Use of the Ready Payment System for Contract PaymentsThe use of the Ready Payment System for Contract payments is conditioned upon the Contractor's provision of services and performance of other requirements in accordance with the terms of the Contract.
(1)Grounds for Suspension. A Department may temporarily suspend the use of the Ready Payment System for Contract payments at any time a Contractor breaches a material condition of the Contract or fails to perform or timely fulfill the terms of the Contract. Grounds for suspension shall include, but shall not be limited to, non-compliance with Contract requirements or the failure to perform or timely fulfill requirements of performance, billing, reporting, audit resolution and corrective action, annual Contract renewal and pre-qualification requirements.(2)Written Notice of Suspension and the Effective Date of Suspension.(a) If grounds for suspension exist, as described in 815 CMR 3.04(1), the Department may immediately suspend the use of the Ready Payment System for Contract payments, and then notify the Contractor of the suspension in accordance with 815 CMR 3.04(2)(b). In the alternative, the Department may notify the Contractor of the grounds for suspension, in accordance with 815 CMR 3.04(2)(b), and provide the Contractor with an opportunity to cure these deficiencies prior to the effective date of suspension.(b) The Department shall notify the Contractor in writing whenever the Department has suspended, or will suspend, the use of the Ready Payment System for Contract payments. The notice must include the grounds for the suspension, as described in 815 CMR 3.04(1), and the effective date of suspension.(3)Period of Suspension. The period of suspension of the use of the Ready Payment System for Contract payments shall be determined by the Department in accordance with the terms of the Contract. Unless otherwise specified in the Contract, the period of suspension shall continue until the Contractor has cured the Contract deficiencies to the Department's satisfaction. Absent a provision in the Contract which establishes a different period, the period of suspension of the use of the Ready Payment System for Contract payments shall not exceed 60 calendar days. If the Contractor fails to cure the Contract deficiencies within this period, the Department may terminate the use of the Ready Payment System for Contract payments for a period of two years pursuant to 815 CMR 3.05.(4)Payments During Suspension. In accordance with the terms of the Contract, the Department shall determine whether to hold payments to a Contractor during the period of suspension, or to continue payments through a Payment Voucher mechanism.(5)Removal of Suspension. Unless otherwise specified in the Contract, the Department shall reinstate the use of the Ready Payment System for Contract payments within 15 business days following the Contractor's cure of the Contract deficiencies which resulted in the suspension. The Contractor must cure the Contract deficiencies to the Department's satisfaction. The Departments shall notify the Contractor in writing of the effective date of reinstatement of the use of the Ready Payment System for Contract payments. The Contractor shall comply with any additional Department requirements necessary to enable the Department to reinstate the use of the Ready Payment System for Contract payments.