Policy on managing service contracts

The service contracts held by Direct Medic Ltd. are instigated via procurement exercises and as such, the expected performance level for any resulting service contracts is explicitly defined. The company manages service contracts using the following methods:

Effective bid management: At the point of tender issue, the assigned Bid Manager examines the specification of the requirement and carries out a ‘Bid/No Bid’ exercise based on the company’s ability to fulfil the requirements of the resulting service contract. The final decision as to whether to bid would be dependent upon factors such as human resource planning, marketing activities, management information requirements and the current business objectives.
Tender Management: In the course of completing a tender bid, the team also identifies what resources not already in place are required in order to perform effectively under the resulting service contract.
Contract Instigation Plan: Upon notification of a contract award, the resources and reporting required in order to service the contract are notified to the Directors for approval.
Performance Monitoring: During the course of the service contract, close monitoring of the team’s performance takes place for several reasons:

To ascertain the company’s performance relative to any Key Performance Indicators on the service contract.
To identify issues relevant to contract performance and take remedial action aimed at service improvement
To safeguard against any detriment to the company in the event that the service contract is renewed.