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A vendor may offer credits when availability falls below the target. Do credits address the operational risk?
Accepted answerCredits can reinforce measurement but rarely make up for interrupted public service, staff time, or lost data. Pair them with clear availability calculations, exclusions, incident communication, root-cause analysis, corrective actions, chronic-failure escalation, and termination or transition rights. Choose remedies that support the required outcome. FAR Subpart 37.6 says incentives should correspond to measurable performance standards.
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