Performance Measurement And Payment Models

32. Key Performance Indicators (KPIs). KPIs are the high level measures of the quality of the delivered service and provide metrics for the payment mechanism. Their early identification and inclusion in the ITN ensures that the Users and Bidders are both focused on what is operationally important (and measurable) in the final service delivery.

33. Payment Principles. MOD should have agreed the basic principles of the payment mechanism to be employed in the derivation of the unitary service charge. These principles should - as the basis for negotiation - define the degree to which performance, availability and usage measures are proposed to be used in calculating payment.