Consolidated Business Solutions, Inc. 450 Enterprise Boulevard Chicago, IL 60601
March 1, 2025 Mr. Thomas Reynolds Chief Financial Officer Metro Manufacturing Corporation 2800 Industrial Parkway Detroit, MI 48201
Dear Mr. Reynolds,
RE: Service Agreement Renewal - Contract #CBS-MM-2022-347
We are writing to inform you that your current three-year comprehensive IT support and cloud infrastructure management agreement with Consolidated Business Solutions (CBS) will expire on June 30, 2025. We have thoroughly enjoyed our partnership with Metro Manufacturing over the past three years and are pleased to offer you the opportunity to renew this agreement under revised terms that reflect current market conditions and enhanced service offerings.
The proposed renewal incorporates several significant enhancements to our service portfolio. First, we are upgrading your infrastructure security package to include our newly developed AI-powered threat detection system at no additional cost. This cutting-edge system has demonstrated a 95% success rate in identifying and neutralizing potential security breaches before they impact operations. Second, your dedicated support team will be expanded from five to seven specialists, ensuring faster response times during peak operational periods. Third, we are extending your data backup retention period from 90 days to 180 days, providing greater flexibility for compliance and recovery purposes.
In light of these substantial service improvements and the 18% increase in operational costs we have experienced since 2022, the annual fee for the renewed three-year contract will be $485,000, representing a 12% increase from your current rate of $433,000. However, if you commit to a five-year agreement instead, we can offer a preferential rate of $465,000 annually, which represents only a 7.4% increase while providing two additional years of service at locked-in pricing.
To facilitate your decision-making process, we have prepared a detailed comparison document outlining the differences between your current service level and the proposed enhanced package, along with comprehensive cost projections. This document, along with the formal renewal contract, will be delivered to your office by March 15.
We would appreciate receiving your decision by April 30, 2025, to ensure adequate time for transition planning if you choose not to renew. Should you have any questions or wish to discuss customization of the service package, please contact our Client Relations Manager, Patricia Wong, at p.wong@cbsolutions.com or (312) 555-0147.
We look forward to continuing our productive partnership. Sincerely, Robert Chen Vice President, Enterprise Services Consolidated Business Solutions, Inc.