Module 3 - Attachment 5 (Service Levels) MODULE 3

Module 3 - Attachment 5 (Service Levels)

MODULE 3 - ATTACHMENT 5 (SERVICE LEVELS)

1. OVERVIEW

General

1.1 This Attachment 5 describes:

1.1.1 the Service Levels that the Contractor must comply with and report against; and

1.1.2 the consequences that apply for the Contractor failing to meet those Service Levels.

1.2 The parties must comply with the requirements in this Attachment 5 in relation to each Contract, except to the extent specified in any Contract Order Form.

1.3 The parties must also comply with any performance management framework:

1.3.1 specified in the Contract Order Form; and

1.3.2 included in the Product and Service Catalogue for a Deliverable,

including in relation to measuring and reporting on the Contractor's performance under any Contract and the application of any remedies (including Service Credits).

2. METHODOLOGY

2.1 This methodology describes the approach used to define the Service Levels.

2.2 Each Service Level is:

2.2.1 defined in clauses 3.1.1 to 3.1.10 below; and

2.2.2 in the following tabular format:

Description

Metric Definition Definition of the Service Level

Service Coverage

Hours See clause 2.6.

Measurement Hours See clause 2.6.

Minimum Service

Level The minimum level of service the Contractor must provide to the Agency.

Target Service Level The target level of service the Contractor should aim to provide to the

Agency.


Measurement Methodology

Measurement point Identifies where or when the measurement is carried out.

Calculation How the Service Level is calculated, including calibration of the Service

Level against the scoring scale.

Period of Calculation The period over which the Service Level is calculated (e.g. Monthly).

Calculation notes Additional information on what is included or excluded from the

calculation.

Data Source Identifies the source of the information used to calculate the Service Level

(e.g. named tools or data sources).

Measurement

responsibility

Identifies whether the Contractor or the Agency is responsible for

measuring the Service Level. It is expected that in most cases, the

Contractor will be responsible for measurement.

Reporting Frequency Details of how often the Service Level is reported.

Special Reporting

Requirements

Any special reporting requirements for a Service Level. The standard

reporting requirements are specified in clause 2.11.

2.3 Each Service Level definition table in clauses 3.1.1 to 3.1.10 contains details of the measurement methodology for the Service Level. Measurement methodologies may change over time to reflect changes and innovations in technology, tools and methodologies used for these purposes or to reflect changes in the Commonwealth’s business objectives. Any such changes must be agreed by Finance. Any changes that seek to vary the Head Agreement or a Contract must be dealt with in accordance with the variation procedures in the Head Agreement.

2.4 If the ‘Minimum Target Service Levels’, the ‘Target Service Levels’, or the ‘Calculation’ in a Service Level definition table contains more than one set of measures or measurements, then each of those must be measured and reported as separate Service Levels.

2.5 Service Levels are provided on an end to end basis, and the Contractor is responsible for all Subcontractors and managed third party activities that impact on the Service Levels. However, Service Level failures for components of the Service Level beyond the Contractor’s responsibility will be treated as an excusable event in accordance with clauses 2.12, 2.13, and 2.14.

2.6 The Service Level definition tables include details of ‘Service Coverage Hours’ and ‘Measurement Hours’ (if applicable to the measure). The ‘Service Coverage Hours’ are the hours or period during which the relevant Deliverables are provided. The ‘Measurement Hours’ are the hours or period over which the Service Level is measured. In some cases, the ‘Measurement Hours’ will differ to the ‘Service Coverage Hours’.


2.7 If a Service Level includes a percentage, these will be applied as follows:

“X%” means that if the Contractor achieves X% or higher, the Service Level is met (without further rounding-up of the percentages, except for the rounding-up referred to below).

2.8 For each Service Level, a conversion of the ‘Target Service Level’ percentage may need to occur to calculate the number of allowable incidents that can occur without the Contractor failing the applicable Service Level. If the number of allowable exceptions has a fractional component, then the number of allowable exceptions will be rounded up to the next highest whole number. For example:

If the ‘Target Service Level’ is “95%”, and the Contractor has provided the Deliverable 45 times in a set period, then the “number of allowable exceptions” is 5% of 45 = 2.25, which is rounded up to three (3) allowable exceptions. In this example the Contractor must meet the Target Service Level 42 times in order to achieve a pass for this Service Level.

2.9 Time elapsed will be calculated taking into consideration the starting time. For example, if a Deliverable is requested at 12.30pm on a Friday, and it is to be provided within two Business Days, then this means that it must be provided by 12.30pm on the following Tuesday (unless the Monday is not a Business Day, in which case two Business Days means by 12.30pm on the following Wednesday.)

2.10 References in this Attachment 5 to Business Days, Business Hours or other times refer to the time at the place where the applicable Service is performed by the Contractor. For example, if:

2.10.1 on-site break/fix services are provided by the Contractor personnel in Perth, the break/fix scheduled hours are references to Perth time;

2.10.2 Helpdesk services are provided from the Helpdesk located in Sydney, the Helpdesk scheduled hours are references to Sydney time.

2.11 Performance reports are to be delivered to the specified recipient within 10 Business Days of the end of each Month or as agreed with the Agency. At a minimum, such reports must include:

2.11.1 graphical depictions and written details of the Contractor’s performance against agreed Service Levels relevant to the previous month or period, unless the Service Level is to be reported on an exception basis only in which case the report should include only exception reporting information;

2.11.2 comparison of that performance to performances in previous months and relevant trend analysis;

2.11.3 summary by cause code (based on the Contractor standard cause categories, e.g. hardware failure, Software error, network failure) for any incidents occurring during the month;

2.11.4 action plans for rectifying any failure to meet Service Levels;

2.11.5 details of preventative action proposed to minimise the re-occurrence of the failure; and


2.11.6 any other special reporting requirements set out by individual Agencies in the Contract.

2.12 Subject to clause 2.5, a failure or delay to meet a Service Level will not be taken into account in measuring the Contractor’s performance against the Service Level to the extent that such failure or delay is caused by any:

2.12.1 defect, error or malfunction in any item of hardware or Software which the Contract specifies is not the responsibility of the Contractor; or

2.12.2 other failure or delay beyond the reasonable control of the Contractor (beyond reasonable control being determined by the Agency).

2.13 Without limiting any other reason, a failure or delay to meet a Service Level will not be regarded as beyond the reasonable control of the Contractor if the failure or delay could have been:

2.13.1 prevented by the Contractor by adopting reasonable business continuity practices (including industry standard redundancy, regular preventative maintenance, capacity planning, regular backups and off-site tape storage, uninterrupted power supplies); or

2.13.2 circumvented by using alternative sources, workarounds or other means.

2.14 If the Contractor is seeking to rely on the excusable events set out in clause 2.12, then it must promptly advise the Agency by notice of the details of the relevant event in its performance report. If the Agency agrees the event has impacted upon the Contractor’s performance, the time permissible for correcting an incident or outage is extended only by the length of the delay or to the extent of the failure as caused by the excusable event.

3. SERVICE LEVELS

3.1 The Contractor must meet the following Service Levels.

3.1.1 Orders

Description

Metric Definition Measures the time taken from an Order being submitted by the Agency and the Order being processed by the Contractor.

Service Coverage

Hours Business Hours

Measurement Hours Business Hours

Minimum Service

Level

The Contractor must process an

Order within two Business Days of

submission by the Agency

Representative.

98% within the timeframe.


Target Service Level

The Contractor must process an

Order within two Business Days of

submission by the Agency

Representative.

100% within the timeframe.


Measurement point Time of Order submission by the Agency Representative; and time an Order

confirmation email has been sent by the Contractor to the Agency

Representative.

Calculation For each Order by the Agency, the time taken to confirm an Order is

measured as the time between when:

(a) the Order is placed (e.g. via Helpdesk / phone / email or website); and

(b) a confirmation email has been sent to the Agency Representative. Service Level performance is calculated as: (the number of Orders that meet

the ‘Minimum Service Level’ divided by the total number of Orders during

the period) x 100.

Period of Calculation Monthly unless stated otherwise.

Calculation notes Consumable Orders are not included in the measurement of this Service

Level.

Data Source Contractor ordering systems

Measurement

responsibility

The Contractor

Reporting Frequency Reported to the Agency monthly, unless agreed otherwise by the Agency.

Special Reporting

Requirements

Not applicable

Service Credits Service Credits do not apply with respect to any failure to meet this Service

Level, however the other remedies relating to failures to meet Service Levels

apply.


3.1.2 Product Delivery

Description

Metric Definition Measures the time taken between the nominated Delivery Date and the actual Delivery Date.

Service Coverage



Minimum Service

Level

Delivery occurs on the nominated

Delivery Date.

98% by the nominated Delivery

Date.

Target Service Level Delivery occurs on the nominated

Delivery Date.

100% by the nominated Delivery

Date.


Measurement point Nominated Delivery Date as specified by the Agency in the Contract; and

time of Delivery confirmation by the Agency Representative.

Calculation For each Delivery to the Agency, the time taken to deliver the Deliverable is

measured as the time between:

(a) the nominated Delivery date as specified by the Agency in the Contract; and

(b) the time of Delivery confirmation by the Agency Representative. Service Level performance is calculated as: (the number of Deliveries that

meet the ‘Minimum Service Level’ divided by the total number of Deliveries

during the period) x 100.


Calculation notes Delivery for Consumables is reported against Service Level 3.1.4.

Data Source Delivery systems

Measurement

responsibility

The Contractor


Special Reporting

Requirements

Not applicable

Service Credits Service Credits apply with respect to any failure to meet this Service Level in


accordance with clause 4.

3.1.3 Installation

Description

Metric Definition Measures the time taken between nominated installation date and actual installation date for MOMs Products.

Service Coverage



Minimum Service

Level

Installation occurs by the nominated

installation date.

98% by the nominated installation

date.

Target Service Level Installation occurs by the nominated

installation date.

100% by the nominated installation

date.


Measurement point Nominated installation date as specified by the Agency in the Contract; and

time the MOMs Product is deemed to be operational.

Calculation For each MOMs Product installed by the Contractor, the time taken to install

the MOMs Product is measured as the time between:

(a) the nominated installation date as specified by the Agency in the Contract; and

(b) the time entered on the Acceptance certificate, after the MOMs Product has been Accepted in accordance with the Head Agreement.

Service Level performance is calculated as: (the number of installations

conducted by the Contractor that meet the ‘Minimum Service Level’ divided

by the total number of installations conducted by the Contractor during the

period) x 100.


Calculation notes Installations conducted by the Contractor are included in the measurement of

this Service Level.

Data Source Installation checklist, maintenance systems

Measurement

responsibility

The Contractor



Special Reporting

Requirements

Not applicable



3.1.4 Consumable Delivery

Description

Metric Definition Delivery time for Consumables.

Service Coverage



Minimum Service

Level

Consumables ordered by the Agency

are Delivered within two Business

Days, unless agreed otherwise for

Remote sites.

90% within two Business Days

95% within three Business Days

100% within four Business Days

If Remote Management and/or a

Valet Service is used - Consumables

ordered by the Contractor are

Delivered within two Business Days,

unless agreed otherwise for Remote

sites.



100% within four Business Days


Consumables ordered by the Agency

are Delivered within two Business

Days.



If Remote Management and/or a

Valet Service is used - Consumables

ordered by the Contractor will be

Delivered within two Business Days.





Measurement point From the time either the Helpdesk or website is notified by the Agency

Representative or the Contractor Personnel requesting the provision of

Consumables to the time of Delivery of the Consumables to the Agency site.

Calculation The time to deliver Consumables is measured as:

(a) the time of notification to the Helpdesk or the Contractor Website for the provision of Consumables; and

(b) the time of Delivery of the Consumables to the Agency site.

Period of Calculation The Service Level performance is calculated as: (the number of Consumables

requests whose delivery time meets the ‘Minimum Service Level’, divided by

the total number of requests for Consumables) x 100

Calculation notes Each individual request for Consumables must be treated separately,

regardless of whether the Contractor bundles the Consumable requests for

Delivery.

Data Source Inventory systems, Helpdesk, Delivery systems

Measurement

responsibility

The Contractor


Special Reporting

Requirements

Not applicable



3.1.5 Return to Service

Description

Metric Definition Measures the 'Return to Service' times of the MOMs Product.

Service Coverage



Minimum Service

Level

Faulty MOMs Product(s) as

identified by the Agency to

the Contractor's Helpdesk


is returned to full

functionality within:

Priority Sites 90% within four Business Hours

100% within 10 Business Hours.

Metropolitan sites 90% six Business Hours

100% within 15 Business Hours

Regional sites 85% within 10 Business Hours


Remote sites unless agreed otherwise by the Agency.




Faulty MOMs Product(s) as

identified by the Agency to

the Contractor's Helpdesk

is returned to full

functionality within:

Priority Sites 95% within four Business Hours

100% within eight Business Hours

Metropolitan sites 95% within six Business Hours

100% within 10 Business hours

Regional sites 95% within 10 Business Hours


Remote sites 95% within 16 Business Hours



Measurement point Time of Fault notification to the Contractor's Helpdesk; and the time at which

full functionality of the MOMs Product is restored and fully operational

(‘Returned to Service’). Full functionality and fully operational includes the

MOMs Product operating in accordance with its Specifications, including

those in the Statement of Minimum Requirement.


Calculation For MOMs Product(s) which has been reported as faulty by the Agency,

Return to Service is measured as:

(a) the time a Fault is logged with the Contractor's Helpdesk; and (b) the time the MOMs Product is restored to full functionality and is

fully operational by the Agency, as noted on the Contractor's maintenance sheet.

Service Level performance is calculated as: (the number of Fault

rectifications conducted by the Contractor that meet the ‘Minimum Service

Level’ divided by the total number of Fault rectifications conducted by the

Contractor during the period) x 100.


Calculation notes Failures and outages are included in the measurement.

The Contractor Helpdesk staff may rectify a Fault over the phone not

requiring a technician on-site. The rectification of Faults that do not require

an onsite technician are not included in the measurement of this Service

Level.

The Contractor may choose to provide back-up MOMs Product(s) to Remote

Agency sites, swapping the MOMs Product and placing it into operation will

be measured as rectification of the Fault. The faulty MOMs Product, once

repaired and fully operational, must be returned into service within a

timeframe that allows continuation of services (as negotiated between the

Agency and the Contractor). The faulty MOMs Product, if unable to be

repaired, must be replaced within a timeframe that allows continuation of

services.

Data Source Helpdesk, Fault management systems, and problem management tools.

Measurement

responsibility

The Contractor


Special Reporting

Requirements

Not applicable



3.1.6 Billing and Invoicing


Description

Metric Definition Measures the time taken to provide accurate Tax Invoices to the Agency Representative.

Service Coverage



Minimum Service

Level

Tax Invoices are received by the

nominated Tax Invoice delivery date. 98% received by the nominated date.

Tax Invoices are received in the

required format and without errors

(e.g. there are no errors and the

Agency Representative does not have

to seek clarifications and/or

corrections on the submitted Tax

Invoice).

98% are in the required format and

without errors


Tax Invoices are received by the

nominated Tax Invoice delivery date. 100% received by the nominated date

Tax Invoices are received in the

required format and without errors

(e.g. there are no errors and the

Agency Representative does not have

to seek clarifications and/or

corrections on the submitted Tax

Invoice).

100% are in the required format and

without errors


Measurement point (a) The time between the nominated delivery date for the Tax Invoice; and the time of receipt of a correctly rendered, accurate Tax Invoice to the Agency Representative, via email or otherwise in accordance with the Head Agreement or Contract.

(b) The number of times the Agency requires a Tax Invoice to be resubmitted due to errors and the subsequent delay to the achievement of item (a).

Calculation For each Tax Invoice sent to the Agency, the time taken to deliver Tax

Invoices is measured as the time between:


(a) the nominated Tax Invoice delivery date as specified in the Contract; and

(b) the time a correctly rendered and accurate Tax Invoice is received by the Agency Representative.

Service Level performance for the receipt of Tax Invoices is calculated as:

(the number of Tax Invoices received by the Agency that meet the ‘Minimum

Service Level’ divided by the total number of Tax Invoices issued to the

Agency during the period) x 100.

Service Level performance for the accuracy of Tax Invoices is calculated as:

(the number of Tax Invoices received in the required format and without

errors which require correction or resubmission by the Agency divided by the

total number of Tax Invoices issued by the Contractor during a period) x 100


Calculation notes All Tax Invoices are included in the measurement of this Service Level,

consolidated Tax Invoices are considered one invoice for the purposes of this

Service Level calculation.

Data Source Sales systems, reporting systems, invoice systems.

Measurement

responsibility

The Contractor


Special Reporting

Requirements

Not applicable



3.1.7 Reporting

Description

Metric Definition Measures the time taken to provide reports to the Finance Representative the Agency as set out in the Head Agreement and the Contract and the accuracy of those reports

Service Coverage




Minimum Service

Level

The Contractor provides the Finance

Representative with the reports

required to be provided to Finance or

the Finance Representative by the

date the report is due. The Agency

will nominate the reporting

requirements and delivery dates for

Agency Reports in the Contract.

98% of reports are delivered by the

required date.

100% of reports are delivered within

3 Business Days of the date on which

the report is due.

The Contractor provides accurate

reports that meet the requirements for

the delivered reports and are without

errors.

98% of reports delivered are

consistent with the required reporting

requirements and are without errors

(e.g. the Finance Representative or

the Agency does not have to seek

clarifications and/or corrections on

the submitted report).

The Contractor provides the Agency

Representative with the reports

required to be provided to the

Agency or the Agency

Representative


required date

100% of reports are delivered within

3 Business Days of the date on which

the report is due.

The Contractor provides accurate

reports that meet the requirements for

the delivered reports and are without

errors.

98% of reports delivered are


requirements and are without errors

(e.g. the Agency Representative or

the Agency does not have to seek

clarifications and/or corrections on

the submitted report).


For both Finance and the Agency,

delivery of the report occurs on the

date the report is required.


required date.

For both Finance and the Agency, the

Contractor provides accurate reports

100% of reports are delivered are



that meet the requirements for the

delivered reports and are without

errors.

templates and are without errors.


Measurement point (a) The time between the required report delivery date; and the time of delivery of a correct, accurate report to the Finance or Agency Representative (as relevant), via email or otherwise in accordance with the Head Agreement or Contract.

(b) The number of times the Finance Representative and/or Agency requires a report to be resubmitted due to errors and/or lack of clarity and the subsequent delay to the achievement of item (a).

Calculation For each report sent to Finance or the Agency (as relevant), the time taken to

deliver reports is measured as the time between:

(a) the required report delivery date as specified in the Head Agreement or Contract (as relevant); and

(b) the time a correct report is delivered to Finance Representative or the Agency Representative (as relevant).

Service Level performance is calculated as: (the number of report deliveries

that meet the ‘Minimum Service Level’ divided by the total number of

reports required to be delivered by the Contractor during the period) x 100.

Service Level performance for the accuracy of reports is calculated as: (the

number of reports received that meet the requirements for that report and

without errors which require correction or resubmission by Finance or the

Agency divided by the total number of reports required to be delivered by the

Contractor during a period) x 100


Calculation notes All reports are included in the measurement of this Service Level,

consolidated reports will be considered one report for the purposes of this

Service Level calculation.

Data Source Sales systems, reporting systems, delivery systems

Measurement

responsibility

The Contractor

Reporting Frequency Reported to the Finance Representative as agreed in the Module 3 or the

Agency Representative as agreed in the Contract (as relevant).

Special Reporting Not applicable


Requirements


accordance with clause 4. However, Service Credits only apply with respect

to reports required to be provided to the Agency.

3.1.8 Availability of MOMs Products

Description

Metric Definition The availability and reliability of the MOMs Products.

Service Coverage

Hours 24 x 7

Measurement Hours 24 x 7

Minimum Service

Level

Each MOMs Product is available for

use by the Agency.

No more than three (3) Faults per

month that prevent the use of that

MOMs Product by the Agency

Target Service Level Each MOMs Product is available for

use by the Agency.

No more than one (1) Fault per

month that prevent the use of that

MOMs Product by the Agency


Measurement point The Faults notified to the Contractor by the Agency or identified by the

Contractor

Calculation The number of Faults is the number of Faults notified to the Contractor by the

Agency or identified by the Contractor for each MOMS Product.

The number of Faults for each MOMs Product notified to the Contractor by

the Agency or identified by the Contractor in that month divided by the total

number of Faults for all MOMs Products in that month (for products supplied

by the Contractor to the Agency under the Contract).


Calculation notes Helpdesk, Fault management systems, and problem management tools.


Data Source Failures and outages are included in the measurement.

Measurement

responsibility

The Contractor


Special Reporting

Requirements

Not applicable



3.1.9 Agency Satisfaction

Description

Metric Definition The Agency is satisfied with the performance of the Contractor under the Contract.

Service Coverage

Hours 24 x 7


Minimum Service

Level

The Contractor achieves an average satisfaction score equal to, or greater

than, three where:

(a) Score 1: Very dissatisfied (b) Score 2: Dissatisfied (c) Score 3: Neutral (d) Score 4: Satisfied (e) Score 5: Very Satisfied


The Contractor achieves an average satisfaction score of score equal to, or

greater than, four where:



Measurement point The level of satisfaction will be determined by the Agency, as and when

required by the Agency. This may be based on, but is not limited to, the

Agency surveying a sample set of end users about the performance of the


Contractor or the Deliverables. The survey questions will be designed by the

Agency, but the Contractor must have an opportunity to make comments on

the questions before they are used to measure the level of satisfaction, and the

Agency must take any such comments by the Contractor into account .

Calculation The average satisfaction score will be the score determined by the Agency

(any may be the mean score from each survey identified in the Measurement

Point).

Period of Calculation Every six months unless stated otherwise in a Contract.

Calculation notes The Agency will use reasonable endeavours to ensure that the method for

calculating Agency satisfaction is conducted in an appropriate manner.

An Agency may collect satisfaction data at its discretion and in relation to the

whole or part of the Contractor's performance as required by the Agency from

time to time.

Data Source Surveys conducted by the Agency, as determined by the Agency

Measurement

responsibility

Agencies (but the Contractor must report on its performance against this

Service Level)

Reporting Frequency Reported to the Agency Representative every six months unless stated

otherwise in a Contract.

Special Reporting

Requirements

Not applicable



3.1.10 Helpdesk Quality

Description

Metric Definition The Helpdesk provides a responsive and high quality service to Agency end users.

Service Coverage

Hours 24 x 7


Minimum Service The Contractor achieves an average satisfaction score equal to, or greater


Level than, three, where:



The Contractor achieves an average satisfaction score equal to, or greater

than, four where:



Measurement point The level of satisfaction will be determined by the Agency and may be based

on surveying a sample set of end users. The survey questions will be designed

by the Agency, but the Contractor must have an opportunity to make

comments on the questions before they are used to measure the level of

satisfaction, and the Agency must take any such comments by the Contractor

into account.

Calculation The average satisfaction score will be the score determined by the Agency

(any may be the mean score from each survey identified in the Measurement

Point).

Period of Calculation Every six months unless stated otherwise in a Contract.

Calculation notes The Agency will use reasonable endeavours to ensure that the method for

calculating Agency satisfaction is conducted in an appropriate manner.

Data Source Surveys conducted by the Agency or such other data sources, as determined

by the Agency

Measurement

responsibility

Agencies (but the Contractor must report on its performance against this

Service Level)

Reporting Frequency Reported to the Finance Representative and the Agency Representative every

six months unless stated otherwise in a Contract.

Special Reporting

Requirements

Not applicable




4. CONSEQUENCES FOR FAILING TO MEET THE SERVICE LEVELS

4.1 This section describes the consequences for failing to meet the Service Levels.

4.2 If the Contract or the Product and Services Catalogue include additional consequences for failing to meet the Service Levels, then those consequences will apply in addition to those set out below.

4.3 If the Contractor fails to meet a Service Level, then the Agency may determine that the application of any consequences specified in this Attachment 5:

4.3.1 will apply; or

4.3.2 will not apply.

4.4 Should an Agency determine that 4.3.1 will apply, the Agency must advise Finance of its intentions.

4.5 An Agency's rights under this Attachment 5 are cumulative. Temporary deferral of any remedy does not constitute a waiver of the right to the remedy.

4.6 If a failure to meet more than one Service Level is due to a single event, the Agency will take this into account in the application of any Service Credit or other remedy and may elect, acting reasonably, not to apply multiple Service Credits or remedies in respect of that event (or to reduce the extent to which the Service Level or remedy applies).

Individual Service Level Failure

4.7 An “Individual Service Level Failure” occurs when a Service Level is not met on any single occasion.

4.8 A Service Credit will apply to an Individual Service Level Failure.

Material Failure

4.9 A “Material Failure” occurs if the Contractor exceeds the number of Individual Service Level Failures applicable to a Service Level, by more than 15%.

4.10 If a Material Failure occurs, the relevant Service Credit will apply to each Individual Service Level Failure comprising that Material Failure.

4.11 For example, if:

4.11.1 ten occasions of Individual Service Level Failure in a month constitute a Material Failure; and

4.11.2 12 Individual Service Level Failures occur in respect of that Service Level in a month,


the Service Credit applicable for the Material Failure would apply for each of the 12 occurrences of the Individual Service Level Failure.

5. REPETITIVE SERVICE LEVEL FAILURE

5.1 A “Repetitive Service Level Failure” occurs if:

5.1.1 a failure of an Individual Service Level occurs three or more times in separate months, in any rolling six month period, or in any part of such a period;

5.1.2 a Material Failure of the same Service Level occurs two or more times in any rolling six month period, or in any part of such a period; or

5.1.3 a failure of any six or more different Service Levels occurs in any rolling six month period.

5.2 For example, if:

5.2.1 an Individual Service Level Failure of the same Service Level occurs in April, May and again in September; or

5.2.2 a Material Failure occurs in May and in July,

then a Repetitive Service Level Failure would apply.

5.3 For the avoidance of doubt, the Repetitive Failure Remedy applies in addition to any other applicable remedy that applies under the Head Agreement of Contract.

6. CALCULATION OF SERVICE CREDITS

6.1 Except to the extent specified in the Contract Order Form, the method for calculating a Service Credit is set out below:

Individual Service Level Failure

(i) for each Individual Service Level Failure, a Service Credit of 1% of the total average monthly Charges for the Contract is incurred for each failure, up to a maximum of 10% of the total monthly Charges;

Material Failure

(ii) for each Material Service Level Failure, a Service Credit of 3% of the total average

monthly Charges for the Contract is incurred for each failure, up to a maximum of 15% of the total monthly Charges;

Repetitive Failure

(iii) for each Repetitive Service Level Failure, a Service Credit of 5% of the total average

monthly Charges for the Contract is incurred for each failure, up to a maximum of 20% of the total Contract value; and

7. MAXIMUM CAP


7.1 Unless otherwise specified in the Contract Order Form, the maximum Service Credits which are payable under a Contract is capped at 20% of the total Charges payable under the Contract.

7.2 For the purpose of Service Credits arising under the Contract, the Agency will calculate the amount due as a reduction or credit based on measurement of the Contractor's performance under the Contract and the method referred to in clause 6.1.

8. CALCULATION OF MONTHLY CHARGES

8.1 For the purposes of clause 6.1, the total average monthly Charges for a Contract is calculated as the total Charges payable under the Contract, divided by the number of months in the term of the Contract.

9. CONSISTENT FAILURE TO PERFORM

9.1 If the Contractor, in the reasonable opinion of Finance or an Agency, repeatedly or consistently fails to meet any one or more Service Levels under any one or more Contracts, Finance or the Agency may (as applicable) require the Contractor to investigate the underlying causes of the failure(s) in which case the Contractor must:

9.1.1 promptly prepare and deliver to Finance or the Agency (as applicable) a report identifying the underlying causes and the steps the Contractor will take to eliminate those underlying causes and to mitigate any future failures;

9.1.2 regularly provide updates to Finance or the Agency (as applicable), including on request by Finance or the Agency, on the steps being taken to prevent future failures and the Contractor must promptly provide this information; and

9.1.3 attend any required meetings with Finance of the Agency (as applicable) to discuss the Contractor's performance and the steps the Contractor is or will take to improve its performance.

9.2 Nothing in this Attachment 5 limits the rights of Finance or an Agency under the Head Agreement or Contract (including Finance's right to suspend a Module).

Documents

Module 3 - Attachment 5 (Service Levels) MODULE 3