Methods of Procurement
Agencies have the right to buy telecommunications utilities at tariff rates or under OIT contracts. There are advantages to contracted services, as outlined below.
Tariffed Services |
Contracted Services |
Rates and charges established in tariff and can be changed by service provider with regulatory approval.
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Rates and charges established in contract and expire at the end of the term. Rates are normally ½ of tariff rates. |
Service dependent on tariff language:
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Criteria based on what is important to vendor & regulatory agency |
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Credits given for outages |
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Service negotiated in contract with a service level agreement:
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Criteria based on what’s important to the customer |
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Credits and penalties are based on what is important to the customer and can be negotiated |
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| Service compliance managed by filing complaints |
Service compliance managed by DAS and there are penalties for failure to meet |
OIT Contract Management Process
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