Module 3 - Attachment 5 (Service Levels)

MODULE 3 - Attachment 5 (Service Levels)

  1. Overview

General

1.1This Attachment 5 describes:

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

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

1.2The 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.

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

1.3.1specified in the Contract Order Form; and

1.3.2included 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).

  1. Methodology
  2. This methodology describes the approach used to define the Service Levels.
  3. Each Service Level is:
  4. defined in clauses 3.1.1 to 3.1.10 below; and
  5. 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.

2.3Each 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.

2.4If 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.

2.5Service 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.

2.6The 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’.

2.7If 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).

2.8For 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.

2.9Time 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.)

2.10References 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:

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

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

2.11Performance 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:

2.11.1graphical 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;

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

2.11.3summary 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;

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

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

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

2.12Subject 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:

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

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

2.13Without 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:

2.13.1prevented 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

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

2.14If 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.

  1. Service Levels
  2. The Contractor must meet the following Service Levels.
  3. 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 Methodology
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.

3.1.2Product Delivery

Description
Metric Definition / Measures the time taken between the nominated Delivery Date and the actual Delivery Date.
Service Coverage Hours / Business Hours
Measurement Hours / Business Hours
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 Methodology
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.
Period of Calculation / Monthly unless stated otherwise.
Calculation notes / Delivery for Consumables is reported against Service Level 3.1.4.
Data Source / Delivery 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 apply with respect to any failure to meet this Service Level in accordance with clause 4.

3.1.3Installation

Description
Metric Definition / Measures the time taken between nominated installation date and actual installation date for MOMs Products.
Service Coverage Hours / Business Hours
Measurement Hours / Business Hours
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 Methodology
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.
Period of Calculation / Monthly unless stated otherwise.
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
Reporting Frequency / Reported to the Agency monthly, unless agreed otherwise by the Agency.
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.

3.1.4Consumable Delivery

Description
Metric Definition / Delivery time for Consumables.
Service Coverage Hours / Business Hours
Measurement Hours / Business Hours
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. / 90% within two Business Days
95% within three Business Days
100% within four Business Days
Target Service Level / Consumables ordered by the Agency are Delivered within two Business Days. / 95% within two Business Days
100% within three Business Days
If Remote Management and/or a Valet Service is used - Consumables ordered by the Contractor will be Delivered within two Business Days. / 95% within two Business Days
100% within three Business Days
Measurement Methodology
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
Reporting Frequency / Reported to the Agency monthly, unless agreed otherwise by the Agency.
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.

3.1.5Return to Service

Description
Metric Definition / Measures the 'Return to Service' times of the MOMs Product.
Service Coverage Hours / Business Hours
Measurement Hours / Business Hours
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
100% within 20 Business Hours
Remote sites unless agreed otherwise by the Agency. / 85% within 16 Business Hours
100% within 30 Business Hours
Target Service Level / 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
100% within 16 Business Hours
Remote sites / 95% within 16 Business Hours
100% within 24 Business Hours
Measurement Methodology
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.
Period of Calculation / Monthly unless stated otherwise.
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
Reporting Frequency / Reported to the Agency monthly, unless agreed otherwise by the Agency.
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.

3.1.6Billing and Invoicing

Description
Metric Definition / Measures the time taken to provide accurate Tax Invoices to the Agency Representative.
Service Coverage Hours / Business Hours
Measurement Hours / Business Hours
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
Target Service Level / 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 Methodology
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
Period of Calculation / Monthly unless stated otherwise.
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
Reporting Frequency / Reported to the Agency monthly, unless agreed otherwise by the Agency.
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.

3.1.7Reporting