Service Level Agreement

For

Hiring of Packaged Drinking Water Bottle

1. Agreement Overview

This Agreement represents a Special Terms and Conditions (STC) and Service Level Agreement (SLA) between the Buyer and supply of packaged drinking water Service Provider. The purpose of this agreement is to facilitate implementation of Hiring of Packaged Drinking Water Bottle from the Buyer’s premises or any other premises designated by buyer. This Agreement outlines the scope of work, buyer’s obligations, special terms and conditions related to service delivery and payment of services for mutual understanding of the stakeholders. The Agreement remains valid till completion of scope of services or end of contractual duration (whichever is earlier) unless either superseded by a revised agreement mutually endorsed by the stakeholders or terminated by either of the parties thereof.

The Services contracts placed through GeM shall be governed by following set of Terms and Conditions:

1. General terms and conditions for Services;
2. Service Specific STC of the Services contracts shall include the service level agreement (SLA) for the service;
3. BID / Reverse Auction specific ATC.

The above terms and conditions are in reverse order of precedence i.e. ATC supersedes Service specific STC which supersede GTC, whenever there are any conflicting provisions. The above set of terms and conditions along with scope of work and service level agreement as enumerated in the document shall be construed to be part of the Contract between Buyer and Service Provider.

2. Objectives and Goals

The objective of this agreement is to ensure that all the commitments and obligations are in place to ensure consistent delivery of services to buyer by service provider. The goals of this agreement are to:

1. Provide clear reference to service ownership, accountability, roles and responsibilities of both parties.
2. Present a clear, concise and measurable description of services offered to the buyer.
3. Establish terms and conditions for all the involved stakeholders, it also includes the actions to be taken in case of failure to comply with conditions specified.
4. To ensure that both the parties understand the consequences in case of termination of services due to any of the stated reasons.

The agreement will act as a reference document that both the parties have understood the above-mentioned terms and conditions and have agreed to comply by the same. The agreement can also be revised/ modified on mutual consent of the stakeholders.

3. Parties to Agreement

The main stakeholders associated with this agreement are below-

1. Buyer: Buyer is responsible to provide clear instructions, approvals and timely payments for the services availed
2. Service Provider: Service provider is responsible to provide all the required services in timely manner. Service provider may also include seller, any authorized agents, assignees, successors and nominees as described in the agreement.

The responsibilities and obligations of the stakeholders have been outlined in this document. The document also encompasses service level/ deductions in case of non-adherence to the defined terms and conditions. It is assumed that all stakeholders have read and understood the same before signing the document.

4. Scope of Services

The scope of this agreement includes supply of packaged drinking water in 20 litres water bottles at buyer premises or premise(s) mentioned by buyer. The service provider shall also provide service add-ons as selected / specified by buyer in service request. The Service provider shall render the services as per the prices quoted at GeM portal. The service provider shall keep optimum buffer stock at buyer’s premises sufficient enough to meet each day’s demand. Storage place for buffer stock of bottles shall be provided by buyer

4.1 Delivery and Return

1. Service Provider would provide the ordered quantity of water bottle daily at the Buyer’s premises. This would be approximately equivalent to quantity specified by buyer at the time of service request.
2. The time frequency of delivery would be mutually agreed between buyer and service provider. Any delay or missed delivery shall attract penalty as per provisions of this contract.
3. Service provider shall render services as per the rates quoted at GeM portal and shall not charge any other extra cost for delivery and return.
4. Service Provider shall maintain a log for the number of bottles supplied every day along with the record of each of rejection instances / other instances such as delayed delivery or failure to deliver.
5. Service provider is liable to replace bottles if they are found to be damaged, dirty, seal broken or opened or rejected by user department due to visual impurities or other impurities.

4.2 Water Dispenser

The Service provider is not liable to provide water dispensers along with bottles unless otherwise bought as an “add-on” by buyer.

4.3 Quality

1. Service provider shall only supply bottles with ISI marking conforming to IS: 14543, BIS and FSSAI standards.
2. Service provider shall ensure that bottles supplied are not damaged, in reasonably good condition, not yellowish or faded and with untampered seal.
3. The water should be visually clear and free of any suspended particles.
4. Packaging date of water bottles supplied should not be older than one week from the date of delivery.
5. In an event that packaging date exceeds beyond 1 week at the time of delivery then the bottle shall be replaced immediately by service provider at no extra cost to buyer. Penalties for repeated instances shall be applicable as per provisions of the contract.
6. There should be computerized coding mentioning manufacturing date, MRP and Batch No.

5. Terms and Conditions

5.1 Buyers Obligations

• • • Buyer would ensure that the empty bottles are returned to the Service Provider in original condition without any damages.
    • Buyer shall allot proper space for storing empty / filled water bottles.
    • Buyer shall inspect each lot of Packaged Drinking Bottles at the time of delivery and reject improperly marked / worn out / leaking / without ISI, BIS or FSSAI marks / without date of packaging bottles or bottles older than 1 week (from packaging date ) at the time of delivery. 
    • Buyer to verify the log book and record each of rejection instances / other instances such as delayed delivery or failure to deliver for claiming damages at the time of billing.
    • Buyer shall check if supplier has provided the agreed quantity as per the order, in case of shortage it should be reported.
    • Service provider shall deliver the water bottles at buyer’s premises as per the decided frequency and it shall be buyer’s responsibility to replenish the bottles at dispensers.
    • Price Variation Clause:

"It is advisable to include Price Variation Clause in the long term contracts to take care of the increase/decrease in prices of various ingredients which majorly affect the overall price of the service. Buyers are therefore advised to include the Price Variation Clause (PVC) in the bid document through ATC for long term contracts. The additional payment, if any, on account of PVC can be done offline till such time online functionality is developed on GeM."

 5.2 Service Provider Obligations

5.2.1 Delivery and Return

1. Service Provider would provide the ordered quantity of water bottle daily at the Buyer’s premises. This would be approximately equivalent to quantity specified by buyer at the time of service request.
2. The time frequency of delivery would be mutually agreed between buyer and service provider. Any delay or missed delivery shall attract penalty as per provisions of this contract.
3. Service provider shall render services as per the rates quoted at GeM portal and shall not charge any other extra cost for delivery and return.
4. Service Provider shall maintain a log for the number of bottles supplied every day along with the record of each of rejection instances / other instances such as delayed delivery or failure to deliver.
5. Service provider is liable to replace bottles if they are found to be damaged, dirty, seal broken or opened or rejected by user department due to visual impurities or other impurities.

5.2.2 Water Dispenser

The Service provider is not liable to provide water dispensers along with bottles unless otherwise bought as an “add-on” by buyer.

6. Payment Terms and Conditions

• Payment shall be made once the Service Provider submits the invoice online on GeM along with other relevant documents and after generation of Service Delivery Acceptance Certificate (SDAC) by consignee for the submitted invoice.
• All deductions (if applicable) will be accounted/deducted during SDAC generation before making the payments. Payment will be made through bank transfer only and in no circumstance cash/ cheque payment will be made.

7. Deductions / LD

7.1 Penalties for a specific month / period shall be capped at 10% of bill generated for that particular month / period.

• Penalties shall be levied for sl. No. 3 mentioned in below table only at fourth instance.
• If any SLA is breached beyond 3 instances in any billing period then same shall be treated as a breach of contract and buyer will have full rights to terminate the contract after giving a notice of 30 days.

8. Amendment to contract

During service delivery period some conditions may occur when the Buyer and/ or Service Provider may require to amend the Contract, some of such conditions may be as followed-

8.1 Amendment of the Contract after event of Force Majeure: A Force Majeure (FM) means extraordinary events or circumstance beyond human control such as an event described as an act of God (like a natural calamity) or events such as a war, strike, riots, crimes (but not including negligence or wrongdoing, predictable/seasonal rain and any other events specifically excluded in the clause).In case of occurrence of such event which has affected either party directly to perform the agreed services, the contract can be amended. However, cause, evidence and nature of such effect shall be notified to the other party.

8.2 Amendment in statutory variations: All statutory variations leading to increase in the cost of the contract will be debited to the buyer accounts.

9. Termination of contract

The Agreement shall be come to an end either on completion of the Contract Period or shall be terminated for the following reasons:

9.1 Mutual consent: The contract may be terminated based on mutual consent in case the services are no longer required. Termination based on mutual consent will not attract any penalties or shall not be liable for any extra payments other than payment of invoices raised till the time of termination including notice period.

• Breach of contractual obligations: The Buyer shall have the right to terminate the Contract effective immediately by giving written notice to the Service Provider if, the Service Provider breaches a material provision of this Contract where that breach is not capable of remedy; or if the Service Provider breaches any provision of this Contract and fails to remedy the breach within 14 days after receiving notice requiring it to do so.
• Breach of SLAs: The contract may also be terminated by the Buyer if the cumulative penalties rise to 10% of the contract value.

10. Service Formula

Payment calculations would be as below:

Payment = Price per bottle per day * Number of bottles per day * Number of Service days in month * Number of months in contract period

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