AI Vendor Renewal Decision Memo Generator

Decision summary

Recommendation: Renegotiate before renewal | Leverage score: 3 | Renewal risk: 5

Critical items: 0 | High items: 3

1. Commercial terms - Request price hold or usage-tier discounts with benchmark clause. (High)
2. Service performance - Set weekly quality and availability checkpoint with service credit triggers. (High)
3. Fallback position - Maintain active fallback benchmark for negotiation leverage. (High)
4. Contract flexibility - Keep portability and annual benchmark review language in final paper. (Medium)

# AI Vendor Renewal Decision Memo - Current AI Vendor

## Deal context
- Annual spend band: $100k-$500k
- Performance trend: Stable
- Proposed renewal uplift: 9%
- Fallback readiness: Medium
- Switching effort: Moderate
- Incident count (last cycle): 2
- Contract flexibility: Standard
- Review cadence: Bi-weekly

## Decision summary
- Negotiation leverage score (1-5): 3
- Renewal risk score (1-5): 5
- Recommendation: Renegotiate before renewal

## Renewal review table
| # | Dimension | Finding | Owner | Priority | Action |
|---|---|---|---|---|---|
| 1 | Commercial terms | Proposed renewal uplift is 9% against current baseline. | Procurement | High | Request price hold or usage-tier discounts with benchmark clause. |
| 2 | Service performance | Performance trend is stable with 2 notable incidents. | Operations | High | Set weekly quality and availability checkpoint with service credit triggers. |
| 3 | Fallback position | Fallback readiness is medium and switching effort is moderate. | Product + Engineering | High | Maintain active fallback benchmark for negotiation leverage. |
| 4 | Contract flexibility | Current contract flexibility is standard. | Legal | Medium | Keep portability and annual benchmark review language in final paper. |

## 30-day action plan
1. Open renewal redline with target and fallback terms for pricing, SLA, and termination.
2. Run one fallback benchmark scenario to strengthen negotiation leverage.
3. Approve renewal only after critical clauses are accepted and owned.