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@@ -407,68 +407,20 @@ The Company hereby designates the following series as exclusive internal shared
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a. Fails to meet established performance standards for two consecutive quarters as documented by the Technology Oversight Committee;
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b. Experiences a catastrophic service disruption lasting more than 48 hours;
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b. Experiences a catastrophic service disruption lasting more than:
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i. 48 hours for non-critical services;
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ii. 24 hours for important services; or
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iii. 4 hours for mission-critical services as designated in the applicable SLA;
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c. Commits a material breach of its SLA obligations that remains uncured for 30 days after written notice; or
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d. Receives substantiated service quality complaints from more than 50% of its series customers within any six-month period.
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2. **Temporary External Provider Authorization**:
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a. Upon a determination of failure, the affected series may petition the Technology Oversight Committee for a temporary waiver to use external providers.
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b. The petition must:
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i. Identify the specific services affected;
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ii. Document the performance failures;
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iii. Propose specific external providers;
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iv. Include a transition implementation plan; and
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v. Include a plan for transitioning back to the internal provider.
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c. The Technology Oversight Committee must respond to such petitions within 30 calendar days.
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d. If approved, waivers shall:
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i. Be granted for a specific scope of services;
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ii. Have a defined duration not to exceed 180 days;
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iii. Include monitoring requirements;
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iv. Require monthly status reporting; and
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v. Establish criteria for return to the internal provider.
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3. **Remediation Requirements**: During any waiver period, the failed internal service provider must:
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a. Develop and implement a remediation plan approved by the Technology Oversight Committee within 15 days of waiver approval;
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b. Provide biweekly progress reports to the Technology Oversight Committee;
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c. Demonstrate compliance with performance standards for at least 60 consecutive days before the waiver expires;
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d. Submit to enhanced monitoring for 180 days following the expiration of any waiver; and
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e. Implement preventative measures to avoid recurrence of the failure conditions.
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#### 3.1.4 - Innovation Exception Process
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1. **Innovation Exception Criteria**: Series may request permission to utilize specialized external services not offered by internal providers when:
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a. The service represents a significant competitive advantage that would materially enhance the requesting series’ business operations;
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b. The internal service provider has confirmed in writing that it cannot reasonably develop equivalent capabilities within 90 days;
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c. The requesting series has conducted and documented a thorough evaluation of alternatives;
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d. The external solution complies with all Company security and compliance requirements; and
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e. Implementation of the external solution will not compromise system integration or data security.
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2. **Exception Request Process**:
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a. Requests must be submitted in writing to the Technology Oversight Committee;
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@@ -491,21 +443,9 @@ The Company hereby designates the following series as exclusive internal shared
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viii. Cost-benefit analysis comparing the external solution to internal alternatives.
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c. The Technology Oversight Committee must respond within 45 days.
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c. The Technology Oversight Committee must respond within 45 days for standard requests and within 15 days for requests designated as time-sensitive with appropriate justification.
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d. The Technology Oversight Committee must provide written justification for any denial.
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3. **Exception Implementation**:
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a. Approved exceptions shall be documented in the series’ electronic records;
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b. The Technology Oversight Committee shall conduct quarterly reviews of all approved exceptions;
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c. Exceptions shall expire after 12 months unless renewed through the same process;
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d. The Technology Oversight Committee shall maintain a catalog of all approved exceptions; and
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e. Internal service providers shall develop plans to incorporate frequently requested exceptions into their standard service offerings.
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d. The Technology Oversight Committee must provide written justification for any denial..
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#### 3.1.5 - Service Division Operations
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