Cons:

Pros:

* A service level agreement gives both government agencies and vendorsa baseline by which to measure performance and a way to determine whetherthe service contracted for is being delivered.

* Because a prime contractor is accountable for the whole system, theblame game that often takes place between an agency and contractors iseliminated. The prime simply finds the problem and fixes it.

* Payment can be tied to service quality and customer satisfaction.

* Vendors have strong financial incentives to operate at maximum efficiency;vendors that perform above expectations earn as much as a 10 percent bonuson their monthly fee, while vendors who fail can be docked payments.

* Upgrades to the system are done on a scheduled basis at no additionalcost to the government.

* Once the contract is in place, agencies can expect a level paymentstream based on operating costs rather than capital expenditures. That allowsofficials to better manage and forecast their telecommunications budget.

Cons:

* Service level agreements are often accompanied by a perceived loss ofcontrol.

* It may be difficult to get disparate user groups to agree on requirements.

* Agencies sometimes pay for a higher level of service than is necessaryfor some employees, though the cost savings inherent in the model usuallybalance out this potential disadvantage.

Featured

  • Defense
    The Pentagon (Photo by Ivan Cholakov / Shutterstock)

    DOD CIO hits pause on JEDI cloud acquisition

    Dana Deasy set cloud as his office's top priority. But when it comes to the JEDI request for proposal, he's directed staff to "pause" to compile a comprehensive review.

  • Cybersecurity
    By Gorodenkoff shutterstock ID 761940757

    Waging cyber war without a rulebook

    As the U.S. looks to go on the offense in the cyber domain, critical questions remain unanswered around who will take the lead and how clearly to draw the rules of engagement.

  • Government Innovation Awards
    Government Innovation Awards - https://governmentinnovationawards.com

    Deadline extended for Rising Star nominations

    You now have until July 18 to help us identify the early-career innovators and change agents in government IT.

Stay Connected

FCW Update

Sign up for our newsletter.

I agree to this site's Privacy Policy.