An SLA (Service Level Agreement) is a formal component of a service contract that defines the expected performance standards and service levels the provider must meet. It includes measurable targets—such as system uptime percentages, helpdesk response times, or delivery timelines—and outlines how performance will be monitored, as well as remedies or penalties if those standards are not achieved.
In procurement contracts that involve services, the SLA is often integrated into a broader agreement or Service-Level Management framework. It establishes mutual accountability by translating qualitative service expectations into clear, enforceable requirements. Effective SLAs often align with KPIs (Key Performance Indicators) to enable objective monitoring and performance assessment throughout the contract lifecycle.
Practically, SLAs ensure shared clarity between contracting authorities and suppliers about what constitutes acceptable service quality. By defining enforcement mechanisms—such as financial deductions or corrective action triggers—SLAs drive consistent performance and offer both parties a structured path to resolution. This helps safeguard service reliability, manage expectations, and protect the value of public contracts.
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