Outsourcing Agreement: ARC/RRC Pricing Mechanism
A Standard Clause setting out an Additional Resource Charge/Reduced Resource Charge (ARC/RRC) mechanism for use in an outsourcing agreement. This Standard Clause addresses the identification and measurement of resource units, the process of calculating baselines, ARCs, and RRCs, and the parties' respective rights regarding pricing changes resulting from the process, as well as circumstances when the baselines, ARCs, and RRCs should be renegotiated. This Standard Clause has integrated notes with important explanations and drafting and negotiating tips.
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