Schedule Five Service Level Agreementand Key Performance Indicators

Schedule Five – Service Level Agreementand Key Performance Indicators

1. Introduction

1.1.This Service Level Agreement (SLA) sets out the service to be provided by the Supplier to the Customers / End Users under the Agreement.

1. Services Covered

2.1.This Service Level Agreement (SLA) covers the base level of service applicable to all Services provided.

2.2.The maintenance and consumable agreement is mandatory in respect of the Leased Equipment, but is equally available to End Users who purchase Equipment outright.

2.3There may be occasions where a Member Authority may wish to opt out of the maintenance agreement for a specific Customer. On these occasions the Supplier will continue to provide support, consumables, training and parts free of charge as required as part of a reduced CPC service agreement.

2.4 The service support includes installation, network connections, product training, preventative and breakdown maintenance, maintenance for free of charge Software, remote support, network support, parts, firmware upgrades and all consumable requirements (excluding paper). It is expected that a more regular/higher level of preventative maintenance will be required in the case of high volume equipment e.g. Lot 4 Print Room Equipment

2.5 The Supplier will ensure they can support upgrades in global operating systems introduced regularly e.g. Microsoft applications

2.6 Lease Charges and CPC charges of Individual Contracts cannot increase, however reductions will be accepted.

1. Duration

3.1.This Service Level Agreement (SLA) will be valid for all Individual Contracts which have been supplied under the Agreement.

3.2.The validity will continue beyond the expiry of the Agreement until all Lease agreements inclusive of agreed extension periods have ended.

3.3.Where products have been purchased outright then the maintenance and Services should be available for 7 years from the date of installation.

3.4.In addition all replacement parts, consumables and non-network accessories will be available for a minimum of 7 years after production ceases.

1. Extensions

4.1Once the Primary lease period of the Leased Equipment has expired, the Supplier may offer a reduced rental.

4.2The Supplier will ensure all lease charges cease once the residual value has been repaid and no further charges will be applicable for hardware and Software.CPC maintenance costs will remain fixed.

Customers/End Users may be able to extend their Individual Contracts for a further agreed period, subject to agreement of all parties, based upon the reliability and age of the equipment. This will continue on a month by month basis until the appropriate notice is given by either party or until the end of the agreed period. Individual Contracts may be terminated by the Customer/End User at any point during the extended period, subject to 15 working days notice, without settlement.

Extension periods will be on a month by month basis, but must not exceed 5 years past the Individual Contract start date. No notice period will apply for contract expiry collections.

CPC maintenance costs will remain fixed. No further charges will be applicable for hardware and software. CPC will continue to be charged as per the Customer/End User usage until such time the Individual Contract has been terminated.

1. Insurance

5.1The Supplier must ensure they have made provision for product liability insurance for any/all loss or damage to the Equipment and sundry equipment installed.

5.2The Supplier must provide individual insurance for all equipment. It is the Supplier’s responsibility to insure all leased Equipment against all risks and must include fire, theft and accidental damage (excluding deliberate and/or negligent acts).

1. Service Support Hours

6.1.Service engineers must be fully trained and qualified by the Manufacturer to service Equipment.

6.2.Extended out of hours Equipment service should be made available upon request under special circumstances as required by each Customer/End User, subject to cost.

6.3.Service request logs should be placed with the Supplier’s helpdesk by email, telephone or fax.

6.4.Engineer Maintenance Support - Engineer support will be provided as a minimum of 8 working hours between the normal service hours listed:

6.5.Telephone Support - Telephone support will be provided as a minimum between the normal office hours listed:

6.6.Website Support - Website support will be provided on a 24-hour basis for service maintenance requests, consumable ordering and meter reading submissions.

1. Response Times

7.1Consistent with high up-times, fast responses times are required throughout the Contract Period.

7.2On-site engineer support must maintain an average four hour service response during the normal working hours.

7.3The maximum service response time must not exceed six working hours which will be monitored for individual equipment over quarterly periods.

7.4Response time is the time from the End User first placing a service request, to the arrival on-site of an engineer at the particular equipment.

7.5Service response times for Lot 5 will be determined by individual Customer/End User requirements.

7.6Regular preventative maintenance must be carried out at least six monthly for floor standing machines above 25 ppm and for all other machines at least once per 12 month period.

First time fix should average 90%

8.Service Hours Failure Compensation

Compensation will be calculated against individual service failures per Device. However the level of compensation shall be determined as a fixed service credit based on Device speed as per the table below.

If the service response times are exceeded the Customer/End User in question reserves the right, without prejudice to any other terms and conditions to invoke the failure compensation as detailed below. This is to be paid by way of a credit note or cheque refund to the Customer/End User. Service response times relate to the initial service response call only and not to Return To Fit calls.

These RTF calls will be measured and compensated separately.

8.1Service Hours Failure compensation

KCS Professional Services reserve the right to amend Service Failure Credit value throughout the life of the Agreement. Service Credits are payable for the life of Individual Contracts.

8.2The Supplier will automatically provide loan replacement Equipment, on a like for like basis, where the Equipment has been down for a period of 3 working days. The loan machine will be delivered and installed, at the Supplier’s sole cost, on the following working day (i.e. day 4). Suppliers must ensure that loan machines are always available.

8.3Any demonstrable copy costs or expenses incurred by the Customer whilst the Device was unavailable e.g. awaiting spare parts with no other means to print, will be passed to the Supplier for payment.

8.4The Supplier will automatically provide an alternative print solution for business critical Devices where a loan Device is not feasible. This may involve offsite printing of Customer jobs at the Suppliers expense.

8.5The Supplier will be expected to and must provide information relating to response time failure on a quarterly basis to the Member Authorities. The Supplier will also be expected to provide information to Participating Authorities relating to their own areas upon request.

1. Machine Up-time

9.1High up-time of Equipment is critical to all Customers/End Users, and represents the amount of time the Equipment is fully functional within the maintenance support hours of this Service Level Agreement.

Equipment up-time must maintain an average of 98% and a minimum of 97% for all individual Equipment as below.

9.2If the minimum up time requirement is not met the Customer/End User in question reserves the right, without prejudice to any other terms and conditions to invoke the failure compensation as detailed below. This is to be paid by way of a credit note or cheque refund to the Customer/End User.

9.3Compensation will be calculated against individual uptime failures per Device. However the level of compensation shall be determined as a fixed service credit based on Device speed as per the table below.

Tenderers should note that once a machine hits repeated downtime of 20% and above then clause 15 applies.

In addition compensation will be payable per quarter, by way of a credit* to the Member Authority at a rate of £1000 for each 1% variance below the minimum standard up-time in accordance with the SLA across the Member Authorities database.

*the Member Authority will agree the payment method of the credit with the Supplier.

1. Equipment Delivery

10.1All Equipment should be delivered and installed free of charge within 15 working days of receipt of an Order, or in accordance with the installation timetable agreed with the Participating Authority or Customer/End User. The End User must be notified of any delays in delivery/installation and given the option of either a replacement machine of the same or higher specification at the same price or cancellation of their order without incurring penalties. Orders with a failure of this nature will be subject to liquidated damages as set out in Schedule Thirteen.

10.2The Supplier must give a minimum of 3 working days notice for delivery and/or installations, unless urgent delivery is required.

10.3Dead on Arrival equipment should be removed by the delivery agent and arrangements made for either a loan machine or a replacement machine to be delivered within a maximum 5 working days.

10.4Engineer Installation and Network connection should be commissioned by the Supplier within 2 working days (48 hours) of Equipment delivery, subject to End User requirements.

1. Equipment Collections

11.1Equipment should be collected within 15 working days of the Supplier being in receipt of an official collection request from the Customer/End User or in accordance with any agreed collection timetable.

11.2Collection requests will be placed by the Customer/End Users and will either be sent by post, facsimile or via email.

11.3Equipment collection will be free of charge in every case whether the Equipment was Leased or Purchased.

11.4No prior notification period will be applicable for Equipment collection requests.

11.5Failure to collect the Equipment with the given period may result in the Equipment being removed and stored and all costs incurred by the Customer/End User will then be payable by the Supplier.

1. Problem Machines

12.1End Users reserve the right to request a replacement Device of equivalent specification inclusive of features for products with a poor reliability record, or consistently occurring problems.

12.2Equipment will automatically be replaced, on a like for like basis under the same terms of the Customers Contract when:

a)A Device has had 6 or more breakdown calls in one quarter.

b)A Device has not achieved the expected up-time two quarters in a row.

c)Downtime is more than 20 per cent (%) of available up time over a quarterly period.

d)A colour Device has become incapable of achieving the specified DPI.

e)Mono Device has become incapable of achieving the specified DPI.

12.3Equipment will be upgraded to a replacement machine at no cost to the End User if the average monthly usage of the machine over two quarters exceeds the manufacturers published maximum volumes (not duty cycle).

Any replacement product will be for the remaining period of the original Individual Contract unless otherwise agreed with the End User.

No settlement figure arrangement will be acceptable under these circumstances.

It is noted that where less than 40% of the initial primary period remains a second-hand Device can be offered subject to agreement with the Member Authority.

1. Relocation of Machines

13.1Customers/End Users reserve the right to request that Suppliers relocate any Equipment at anytime during the Customer/End User agreement Period.

13.2The Supplier is required to provide Equipment relocations within 10 days following the receipt of written notification.

13.3Equipment relocated within the same building should be undertaken Free of Charge including stair walkers.

13.4Equipment requiring cross building relocation should be re-sited for a standard contract rate.

13.5Leased Equipment remains the property of the Supplier and may only be re-located or removed by the Supplier or an agent appointed by it, unless consent has been provided by the Supplier or unless Clause 11.5 is invoked.

1. Operator Error

14.1Service requests which are considered to be “operator error” by the Supplier should be provided Free of Charge. i.e. paper jams, incorrect toner replacement

14.2Appropriate training should be provided to avoid future problems.

1. Upgrading/Downgrading of Machines

15.1Due to changing requirements, it may be necessary to occasionally replace a machine with a different model. In these circumstances the Customers/End User reserves the right to upgrade or downgrade the machine within the Suppliers accepted range at anytime without penalty.

15.2Changing requirements consist of a 40 percent (%) increase/decrease in page output volume or a dramatic change in the Customers/End Users equipment requirement, excluding the migration over to colour machines. This will be measured over the previous two quarters usage.

15.3Replacement machines will be within the existing Supplier’s range and will be treated as a new installation and a new agreement will be arranged.

1. Machine Contract Termination

16.1Where a Customer/End User’s establishment permanently closes down, or is reduced in size by more than 25 per cent (%), all lease or service agreements will be terminated, or the number of Devices reduced at no financial penalty to the Customer/End User, Member Authority or Contracting Authority, once all outstanding invoices have been paid.

16.2 Any outstanding settlement fee relating to a previous contract will be payable by the Customer / End User prior to termination of Contract. Devices are to be removed unless otherwise arranged within 15 working days or Clause 11.5 is invoked.

16.3No prior notification period will be applicable for Device contract terminations.

1. Training

17.1The Supplier will provide appropriate user training at the time of installation of Equipment (or such other date as agreed with the End User)

17.2Key Operators will be responsible for day to day maintenance of the Equipment e.g. adding paper, clearing paper jams and carrying out other simple non technical operations and as such will require any necessary training.

17.3The Supplier will provide comprehensive training for all High Volume/Print Room operators per machine, plus subsequent replacement operators.

17.4All basic training at time of installation will be free of charge including high volume print room machines and software solution packages.

17.5An instruction and/or operators handbook must be delivered with every machine at the time of delivery.

17.6Advanced or extra training is chargeable and must be identified on individual Order.

1. Consumable / Spare Part Availability

18.1All consumables such as waste toner boxes, fuser units, replacement toners/cartridges and staples should be delivered directly to the End User free of charge within 2 working days of the End User’s request.

18.2Urgent delivery of consumables within 1 working day (24 hours) may be required by End Users in exceptional circumstances. There will be no extra charge for this.

18.3Equipment requiring replacement spare parts should be available and fitted by an engineer within 1 working day of the fault being diagnosed.

18.4Replacement spare parts requiring engineer installation should not be delivered directly to the Customer/End User. All packaging and replaced parts should be removed from End User’s Premises.

18.5All toner is to be manufacturer’s originals.

1. Meter Reading

19.1Meter readings can be provided by, phone, fax, e-mail or over the web directly to the Supplier on a quarterly basis.

19.2Automatic readings direct from networked products should be utilised where this has been specifically authorised and facilitated by the End User.

19.3Suppliers are expected to send a form of reminder to the End User on a quarterly basis.

19.4Invoices will only be passed on accurate readings. Estimated readings will not be accepted.

1. Supplier’s Staff Identity

20.1All personnel are required to wear clear Suppliers identity badge at all times when on the Customer/End User’s Premises. Failure to do so may result in the Supplier’s personnel being refused admission. Whilst on the Customer/End User’s premises Suppliers personnel must adhere to all health and safety aspects as required by the Customer/End User’s.

20.2Any personnel visiting the Premises on behalf of the Supplier will be required to have been checked by the Disclosure & Barring Service. Proof of these checks should be kept on file by the Supplier and should be made available at any time for inspection.

1. Environment (WEEE Regulations)

21.1The Supply of Goods covered by this Agreement is deemed to be covered by the description: “business to business”, therefore are covered by WEEE regulations.

21.2The Supplier is required to collect and dispose of all Equipment which has been purchased or leased with a service level agreement (SLA) at the end of the Contract Period or as agreed by the Customer/End User. Collection and disposal should be free of charge.

21.3The Supplier is required to collect and dispose in accordance with the WEEE regulations all waste packaging associated with initial delivery and all continued SLA work undertaken.

21.4The Supplier is required to collect and dispose in accordance with the WEEE regulations all redundant replaced spare parts associated with the SLA work undertaken.

21.5The Supplier will not use the End User’s own waste facilities.