An Underpinning Contract (UC) ensures that external vendors or third-party providers support your internal OLA and customer SLA commitments.

SLA = Customer commitment
OLA = Internal team commitment
UC = Vendor commitment

Customer SLA
      ↓
Internal OLA
      ↓
Underpinning Contract Specification (Vendor Rules)
      ↓
Underpinning Contract Agreement (Vendor Commitment)
      ↓
Vendor Execution & Monitoring
      ↓
SLA Protection

Underpinning Contract Specification

The Underpinning Contract Specification, configured under Configure Underpinning Contract Specification, defines the measurable performance expectations that external vendors must meet to support internal operational commitments. It includes clearly defined vendor response time targets, resolution time targets, applicable support windows (such as 24x7 or business hours), service coverage scope, an escalation matrix for issue handling, and any penalty or compliance tracking rules. Its primary purpose is to translate internal OLA requirements into vendor-measurable performance parameters, ensuring external support aligns with SLA objectives. For example, if the internal OLA requires an issue to be resolved within 2 hours, the UC Specification may mandate that the vendor respond within 15 minutes, provide a workaround within 1 hour, and deliver a permanent fix within 90 minutes—creating structured accountability and safeguarding overall service performance.

Underpinning Contract Specification List

The Underpinning Contract Specification List provides a centralized view of all configured vendor specifications, offering complete visibility into defined performance rules and contractual parameters. It enables effective status tracking (such as Draft, Active, or Expired), along with advanced filtering by vendor, service, or category to quickly locate relevant records. The list also supports structured lifecycle management and version control, ensuring that updates are governed and historically traceable. This structured oversight ensures continuous alignment with active SLAs, maintains a clear audit trail for compliance and governance, and prevents outdated or inactive vendor specifications from impacting operational performance.

Underpinning Contract Agreement

An Underpinning Contract Agreement serves as the formal commitment between the organization and an external vendor, ensuring that third-party services align with internal operational and customer service targets. It clearly defines the vendor name, the contract validity period, and the linked Underpinning Contract (UC) Specification that outlines measurable performance standards. The agreement also details the vendor’s response and resolution commitments, establishes defined escalation contacts and procedures, and includes any applicable financial terms, service credits, or penalty clauses for non-compliance. Together, these elements create a structured, enforceable framework that safeguards SLA and OLA performance through accountable vendor participation.

It acts as the binding operational agreement between your organization and the external provider.

For more information, refer to the following: