Service Level Agreement 1. Background: This agreement is between DTF (Department of Treasury and Finance) and Toll Priority, and is to be referred to as an attachment to the contract covering the commercial terms of the agreement between DTF and Toll Priority. This agreement sets out the basis upon which DTF agrees to source and Toll Priority agrees to provide operational, logistical and courier services to DTF. It is against the SLA that the performance of Toll Priority can be judged, both administratively and legally, and will be reviewed quarterly by both parties. 2. Scope of Agreement: This Agreement shall comprise the following components: Service Level Agreement and operational requirements Account Management requirements Service improvement criteria Customer service requirements Communication protocols Scorecard system and reporting formats 3. Service Level Agreement and operational requirements: 3.1 Service performance criteria: This shall be measured and agreed to in three parts: 1.) Function: Variance to function Action required if function not performed to agreed levels. 2.) Frequency: The frequency is based on the required nature of the service principally on an overnight delivery of Mail and parcels. 3.) Time: Allowed variance to required time Action required if outside of allowed variance Function Frequency Allowed variance to time of ETA that materially effects a customer Scheduled Run Daily, +/- 2 hours Return of “proof of Daily, +/- 1 day delivery’ paperwork where applicable Resolution of As Required Within 120 Customer Service minutes of call Enquiry 3.2 Service alterations: A fundamental feature of this Agreement is to provide additional courier and related logistical capacity in line with business growth or changes in the needs of the Victorian Government. The importance of established processes and agreed procedures is to be mutually agreed to ensure the provision of increased capacity is introduced in a seamless manner without customer disruption or performance concerns. Any service changes requested by user’s to the existing service schedule must be notified in writing and will require a minimum of 3 working days to be implemented; 1 working day to agree to the change and 2 working days to implement the change. 3.3 Vehicle Requirements Toll Priority warrants that the Vehicle meets all aspects of DTF’ requirements including: (a) All over white in colour; (b) Enclosed Commercial vehicle; (c) Of good appearance and no older than 5 years; (d) Current Victorian registration; (e) Meets all VIC Roads regulations; (f) GPS or (similar) vehicle tracking and monitoring, including alarm and duress alarm systems with floor insulation and air conditioning fitted to all Vehicles and (g) Is kept in a clean and tidy condition Failure by the carrier to maintain the vehicle in a clean and tidy condition, mechanically sound and the body work of the vehicle in good condition may result in the driver being stood down until such time that the vehicle meets the agreed standards. It is accepted that from time to time that a replacement vehicle will be required to cover absenteeism or to replace an existing vehicle. Toll Priority will ensure any replacement vehicle and contractor conform to the above requirements. Toll Priority acknowledges that its carriers are not permitted to carry a passenger in any vehicle performing delivery runs on behalf of DTF. 3.4 Summary service list A summary list of all customers / designated collections and delivery points with required timings is as per schedule 2 of the contract. This summary list shall be updated monthly and changes made available to DTF. 3.5 Documentation DTF requires Toll Priority and its carriers make out any documentation or use such technology it deems relevant to enable the contract carriers to perform their daily tasks. Upon the completion of each delivery the Toll Priority carrier will obtain the signature of each Consignee where applicable. The Toll Priority carrier must obtain proof of delivery and pick-up time and client signature for services conducted unless specified in writing by DTF Management. Any discrepancies in volume or description must be reported to DTF’ or its client’s representative immediately and again the representative should sign a confirmation of the discrepancy. 4. Account Management Requirement Toll Priority will make available to DTF a corporate account manager who will work with DTF to ensure an ongoing high quality of service, provide summary reporting and performance evaluation at quarterly meetings and act as an escalation point in the case of service failure. The account manager will also provide DTF with logistics consultancy in an effort to realise continuous improvement opportunities which have the aim of: Providing either a higher level and or Providing the existing service more efficiently, and at a reduced cost to DTF. 5. Service Improvement Criteria A formal quarterly meeting will be held between DTF and Toll Priority. The purpose of the meeting is to review any day-to-day issues requiring resolution, discuss trends etc and investigate ways of improving the service and relationship between both parties. Statistics will be kept on an ongoing basis, monitoring the performance of Toll Priority to provide the agreed service, within the operational performance expectations. The results of these meetings will be summarized by the account manager and presented to DTF on a quarterly basis at the service review meeting. At this meeting Toll Priority will also outline any continuous improvement opportunities to DTF. 6. Customer Service Requirements User’s are to refer all client queries to Toll Priority call centre on 13 88 44. User’s will have a dedicated contact and telephone number from Toll Priority to act as a reference point for any queries. The corporate account manager assigned to DTF will only be used as a point of escalation. A list of contacts and telephone numbers is included in the final agreement. Both parties recognise the need to properly address customer service inquiries within an acceptable time period. Each customer service call made to the supplier relating to ad-hoc services must be resolved within a maximum turn around of 120 minutes. Where resolution cannot be provided within 120 minutes, a follow-up call must be made to advise on progress. 7. Communications Protocols Toll Priority shall promptly notify the user of any anticipated inability to perform any carriage of goods or of any unreasonable delay in delivery or collection of goods. These notifications will be summarised in the daily service evaluation report. Any cartons documents or goods that are unable to be delivered must be returned to Government sort’ at Port Melbourne and made secure prior to the carrier completing work for that day. Goods are not to be left unattended at a user premise or remain overnight in the carriers vehicle. This shall form part of the daily service evaluation report. Toll Priority will send a weekly service evaluation report to the user. In general it will be an exception report indicating performance outside of agreed parameters. It shall be sent to all nominated managers. The format of this report will be agreed between the parties from time to time. The service evaluation report will be sent out before midday on the following day with the resolution field in these service evaluation reports to be completed and returned to sender prior to close of business. A summary of the service performance will be prepared by the account manager and tabled at the formal quarterly meeting between the parties. 8. Scorecard system 8.1 Service Evaluation. Each service non-conformance will be given a non-conformance severity code. Each severity code will be given index weighting. A table of weighting’s and severity codes follows: Code Description Index Weight S1 Minor impact/inconvenience on 1 user’s operation S2 Major disruption to user’s 5 operation S3 Major impact on user’s 10 operation S1 – minor impact on user would result in either: Service complaint by user’s to Toll Priority Need for Toll Priority to take corrective action S2 – major disruption to user’s would result in: Additional costs being borne by user due to service being outside normal service criteria. S3 – major impact on user’s would result either Toll Priority being required to credit service, Toll Priority being required to reinstate/recover the service at their cost. At the end of each calendar month, a service index will be calculated by applying the number of non-conformance incidences by the index weighting for each service code. If either of the following occur, The number of S3 occurrences for a single month exceeds 15 (15), or The total index for the month exceeds 250, This signals a major breach of the service obligations of Toll Priority. For the avoidance of doubt, “major” is defined as a material event where the loss or diminution of service has caused the user to suffer a financial loss. In such circumstances Toll Priority may be exposed to contract termination as a result of service failure. A S3 will not be recorded if it is outside the control of Toll priority. The most effective agreements work when both parties are required to meet agreed expectations, which are realistic.
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