Service Level Agreement(SLA)
A contractual commitment defining the level of service the contractor will provide, including metrics, targets, and remedies for non-performance.
Overview
A Service Level Agreement (SLA) is a contract provision that defines measurable service standards the contractor must meet. SLAs typically specify metrics (e.g., response time, uptime), target levels, measurement methods, and consequences for failing to meet targets. They align contractor performance with government expectations and provide a basis for incentives or deductions.
Why It Matters in GovCon
SLAs are increasingly common in IT, help desk, cloud, and professional services contracts. They translate performance requirements into concrete, measurable terms. Proposals must demonstrate your ability to meet or exceed SLA targets. During performance, SLA metrics drive quality assurance and may tie directly to fee or payment.
Key Details
- Metrics: Examples include uptime (%), response time (hours), resolution time, customer satisfaction score.
- Targets: Specific thresholds (e.g., 99.9% uptime, 4-hour response) that define acceptable performance.
- Measurement: How metrics will be collected and reported.
- Remedies: Credits, deductions, or cure provisions when targets are missed.
- Incentives: Some contracts offer bonuses for exceeding SLA targets.
- QASP Link: SLAs often align with the Quality Assurance Surveillance Plan.
Related Terms
- Performance-Based Incentive (PBI)
- Quality Assurance Surveillance Plan (QASP)
- Performance Work Statement (PWS)
- Contract Line Item Number (CLIN)
More Contracts Terms
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