19.5.2.1 Contracts with availability-based payments must define what is meant by "available" (or, alternatively, what is meant by "unavailable"). The definition will typically specify certain conditions which must be met if the Service is to be treated as available. As payment depends on the definition being met, the Contractor and its financiers are naturally very concerned that the criteria are:
• objective,
• measurable,
• reasonable
• achievable and
• material in the context of the Service as a whole.
19.5.2.2 The definition of availability should concentrate on the core functions of the Service but should not necessarily be limited to physical aspects (such as the provision of a bed in a room). If any "soft services" are a core function of the Service then these should also be included - however soft services will not usually form part of the Services package except in particular sectors such as the prison sector. For example, catering and delivery of meals are core requirements for prison accommodation to be usable and for the Authority to carry out its functions. For such projects, the existence of a functioning catering service to an acceptable minimum standard may be appropriate to include in the definition of availability. Provided minimum standards are met, failure in performance of a catering service in such circumstances would not, however, make the whole Service unavailable.
19.5.2.3 The definition of availability is more straightforward in some sectors than in others. For example, a significant aspect of availability may depend on whether or not a piece of equipment works (as in a project involving simulator-based training or other Service that involves the provision of a major piece of equipment (e.g. a waste treatment facility). Other projects are more difficult, as there may be scope for discussion about the appropriate availability criteria. For example, the appropriate levels of light, heat and access to be provided for the accommodation or other assets to be usable for its function must be agreed on a project-by-project basis.
19.5.2.4 In general terms, unavailability should be measured in as simple a way as possible. Accordingly, complex definitions that require excessive monitoring costs should be avoided, although definitions may have to be very specific. The precise measure will depend on the nature of the individual project, the particular times when the Service should be provided and the rectification periods allowed (see Section 19.5.7 (Rectification of Unavailability)). Possible examples of periods triggering unavailability include:
• for critical services, less than one hour;
• the remainder of a 12 or 24 hour period, i.e. measured in days or half days; or
• the remainder of normal working hours (say 8am to 6pm). Unavailability outside normal working hours will usually not affect payment (unless for a specific function).
19.5.2.5 It is also important that availability criteria are intrinsically linked to the specification for the facility. Care should be taken to avoid criteria that measure elements that are outside the contractors control e.g. over-temperature where cooling system has not been specified.