Service Agency Contract Definition

37,600 Scope of the paragraph. This subsection prescribes policies and procedures for the collection of services using performance-based collection methods. 37.601 General. a) Applications may be for a performance statement of work or a letter of intent (see 37.602). (b) Performance-related service contracts must include: (1) a Statement of Work (PWS); (2) measurable performance standards (i.e., quality, timeliness, quantity, etc.) and method of evaluating the contractor`s performance against performance standards; and (3) performance incentives, where applicable. When used, performance incentives must meet the performance standards set out in the contract (see 16.402-2). (c) See paragraph 12.102(g) for the application of Part 12 procedures for performance-based procurement. 37,602 Description of the service. (a) A statement of work on performance may be prepared by the government or result from a statement of objectives (PAHO) produced by the government if the supplier proposes the WPS. (b) Organizations shall describe the work, to the extent possible, (1) on the basis of the results required and not on the “manner” in which the work is to be performed or the number of hours to be made available (see 11.002(a)(2) and 11.101); (2) allow the evaluation of work performance against measurable performance standards; 3.

Leverage the application of measurable performance standards and financial incentives in a competitive environment to encourage competitors to develop and introduce innovative and cost-effective methods to complete the work. (c) Suppliers use the SOO to develop the PWS; however, the SOO is not an integral part of the contract. The SOO shall include at least: (1) the object; (2) the scope or mandate; (3) the period and place of performance; (4) Background; (5) the performance objectives, that is to say, the required results; and (6) any operational restrictions. 37,603 performance standards. a) Performance standards determine the level of performance required by the government to meet the requirements of the contract. Standards must be measurable and structured in such a way as to allow for an evaluation of the contractor`s performance. (b) Where suppliers propose performance-related standards in response to an SOO, agencies shall assess the proposed standards to determine whether they comply with the Agency`s requirements. 37,604 quality assurance plans. The requirements for quality assurance and quality assurance monitoring plans are set out in paragraph 46.4. The government can either create the quality assurance monitoring plan or require suppliers to submit a proposed quality assurance monitoring plan for consideration by the government when developing the government plan. The types of service providers that use a service contract are not limited to this list.

Many other types of professionals like to use service contracts to describe their scope of work and protect their interests. Similarly, it is an easy way to formalize a service contract. An agency contract is a legal contract that establishes a fiduciary relationship in which the first party (“the client”) agrees that the actions of a second party (“the representative”) bind the client to the representative`s subsequent agreements, as if the client had himself concluded the subsequent agreements. The agent`s power to bind the principal is generally legally called authority. The agency created by an agreement can be a form of implied authority, for example .B. if a person gives their credit card to a close relative, the cardholder may be required to pay for purchases made by the parent with their credit card. The parties must be defined in the agreement as principal and agent. The party mandated by the service agency is the customer. The agreement also designates the service organization or its representatives as the client`s representatives. Depending on the contract negotiated, the contract may cover all employees of the agency or may be limited to one or more account managers.

Agency contracts can have many benefits for the client, especially if that client happens to be a small business owner. Few people have all the specialized skills needed to run a business, so you ask a professional to act on your behalf as an agent, save time, and help you run your business more efficiently. The use of an advertising agency is an example or the outsourcing of human resources functions. Within the European Union, there is legislation to provide staff with some protection, in particular the right to compensation in certain circumstances when an agency is dismissed. The same is true in other parts of the world and in some countries it is necessary for a foreign manufacturer to designate as a representative a person or company that is a national of the country in which the agency will operate. .