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At a minimum, the following reports should be scheduled into the services contract: Billing Analysis and Review Good billing analysis and review procedures ensure that billing is reasonable and accurate.
In addition, they provide vital information about deployment of resources and costs for types of services. Depending on the contract arrangements, the vendor would submit invoices that reflect base line contract charges and charges for changes to the contract scope.
Wherever possible, rates for additional and reduced work by staff position or a predetermined unit of work should be negotiated into the contract. Invoices should be submitted with a summary page and with backup detail sheets that reflect the program components and the units of work.
Periodic billing should be analyzed for cumulative contract baseline costs and change request costs. The Vendor Manager should review these analyses with the Contract Executive at least monthly. Service Levels, Performance Analysis and Improvement Performance analysis and improvement procedures ensure that performance standards are being met through effective performance measurement and reporting.
In addition, Business Clients should expect continuously improving services. Key reasons for tracking performance are to identify: Problem areas that need improvement and improvement tracking Program risks and risk mitigation strategies Hidden program costs Vendor strengths and weaknesses that may indicate their appropriateness for other projects or programs being planned General improvement or deterioration trends Fulfillment of Service Level Agreements.
A key component of the service contract should be a Service Level Agreement, which clearly outlines the levels of service that the vendor is expected to maintain throughout the contract term. Service Levels should be measurable, attainable and reasonable for both parties.
A small subset of the Service Levels may be critical to the business and should have service level credits penalties associated with them. Customer Satisfaction Performance Metrics and Reporting Customer Satisfaction data can be gathered on an event basis, a periodic basis, or both.
Event basis data would be gathered after a specific event such as a call to the help desk. Periodic data would be gathered over a period of time, capturing trend information over that period.
The timing content, scope and method of surveys should be predetermined and spelled out in the Service Level Agreement. Email is the simplest and most direct method for deploying Customer Satisfaction surveys, though some companies have had success with web page surveys that are linked to an email message.
Issue and Dispute Resolution Effective issue resolution and Dispute Resolution procedures ensure that problems and disputes are handled as quickly as possible and are solved at the lowest possible management levels. Issues do not include work to be performed as part of the contract.
The issue resolution process should consist of the following steps: Each issue would be determined by the vendor staff and the company staff person responsible for delivery of the program component.
The Program Issues Log includes a description of the problem, the person the issue is assigned to for resolution, the resolution description, the escalation and escalation date.
Each party should be informed of their responsibilities and give confirmation of resolution date. The most appropriate level of management should resolve issues depending on the nature of the issue. Dispute Resolution The purpose of a Dispute Resolution process is to define what should be done should an issue or series of issues lead to a dispute.
Provisions for dispute resolution should be clearly identified in the contract.
The parties should attempt to resolve disputes informally before taking legal action, for many obvious reasons. Change Management Change Management defines how changes are defined, approved, implemented and controlled. Each type of change would be dealt with differently. The Team should meet on a regular basis as part of the change review, approval, scheduling and communication process.
The vendor should submit proposed changes for review in advance and provide a schedule of implementation dates to determine conflicts with business events. Changes to contract scope may arise from numerous sources, requests for new projects, need for additional resources, unanticipated project components, increases or decreases of volume, etc.
The Vendor Manager would responsible for evaluating the need and impact of these changes on the contract and whether they would require a new contract or a contract change request. Simple contract change requests that involve a scope change may be accomplished within the existing terms and conditions of the contract additional or reduced resources and volumes for which there is unit pricing, etc.
A Contract Addendum may be required if the terms and conditions of the contract need to be altered or amended to accommodate an additional or reduced service request; for example.
The vendor would be responsible for estimating the size, effort and cost of any contract change. Since individual vendors have different methods for estimating, the Vendor Manager should agree on the methods to be used to determine size, effort and cost and document the agreed upon process in the Procedures Manual see Transition section below.
Transition Monitoring The objective of the Transition period is to set up and implement the necessary plans, communications, technical infrastructure, work processes, management procedures and knowledge transfer that will be required for the vendor to perform the contract services.Loved the villa!
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