Underpinning Contract (UC)
What is Underpinning Contract (UC)?
Underpinning Contract (UC) is an agreement between an IT Service Provider and a third party to provide goods or services to facilitate the IT Service Provider in the delivery of services to their own customer. The Underpinning Contract specifies and defines the targets and responsibilities required to meet Service Level Targets outlined in the Service Level Agreement (SLA). The UC can be used for one-time purchases or for an ongoing relationship.
Underpinning Contracts can cover a wide range of goods and services, including:
- Technology products and services
- Consulting services
- Facilities management services
- Maintenance and repair services
There are many benefits to using an Underpinning Contract, including:
- Reduced transaction costs - UCs can help reduce the costs associated with negotiating and entering into individual contracts for each purchase.
- Improved supplier performance - UCs can help improve supplier performance by establishing clear expectations and mutually agreed-upon terms and conditions.
- Increased efficiency - UCs can help streamline the procurement process and make it more efficient.
- Reduced risk - UCs can help reduce the risk of contracting by establishing clear terms and conditions upfront.