Master Services Agreement

535 Pages·2010·30 MB·English

MASTERSERVICESAGREEMENT
between
HERMAJESTYTHE QUEENINRIGHT OF THE
PROVINCE OFBRITISHCOLUMBIA, AS REPRESENTED
BYTHE MINISTEROFMANAGEMENT SERVICES
and
IBM CANADALIMITED
as ofDecember3, 2004
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MASTERSERVICES AGREEMENT
TABLE OF CONTENTS
ARTICLE 1-INTERPRETATION 1
1.1 Definitions 1
1.2 Recitals 1
1.3 Headings 1
1.4 Interpretation ; 1
1.5 ActingReasonably 2
1.6 AccountingPolicy 2
1.7 CalculationofTimePeriods 2
1.8 CurrencyReferences : 3
1.9 Tune 3
1.10 Schedules 3
1.11 DocumentConflicts 3
1.12 JointDrafting : 4
1.13 ObjectivesoftheParties 4
1.14 Co-operationoftheParties 6
1.15 GeneralScope 6
ARTICLE2 -AGREEMENTTERMANDRENEWAL 6
2.1 InitialTerm 6
2.2 NoRenewalAssurances 7
2.3 NoExpropriation 7
2.4 RenewalOption 7
2.5 RenewalNotice 7
2.6 RenewalNegotiations 7
2.7 OneYearExtension 8
2.8 ExtensionNotice 8
2.9 ExtensionTerms 8
2.10 TenninationAssistance 8
2.11 EffectofTenriination~ 9
ARTICLE 3- TRANSITION 9
3.1 TransitionOverview 9
3.2 ModificationstoTransitionPlan 9
3.3 TransitionRequirements 9
3.4 Stage 1Transition : 10
3.5 FailuretoCompleteStage 1TransitionPlan 10
3.6 Stage2Transition 11
3.7 ProvinceLicenseforSpace 11
3.8 TransitionCosts 11
3.9 In-FlightProjects 11
3.10 TransitionPlan 12
ARTICLE4 -SERVICES 12
4.1 OverviewofSerVices 12
4.2 IncludedorInherentServices 13
4.3 ServicesChanges 13
4.4 Continuous ImprovementRecommendations 13
4.5 QualityManagement. 13
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4.6 DocumentationandOngoingKnowledge Exchange 13
4.7 ProvinceRetainedResponsibilities 14
ARTICLE 5-SERVICEAND DATALOCATIONS 14
5.1 OverviewofServiceLocations 14
5.2 RelocationofIBMServiceLocations 15
5.3 ServiceLocationPolicies 15
5.4 AccesstoProvinceLocations 15
ARTICLE 6-SERVICELEVELS 15
6.1 GeneralCompliance 15
6.2 InterimServiceLevelTargets 16
6.3 Monitoring , ; 16
6.4 ReportsofAchiev~dServiceLevels 17
6.5 Reports ofServiceLevelFailures 17
6.6 ProblemAlertandEscalationProcedures 17
6.7 ProblemManagementandRootCauseAnalysis 17
6.8 ServiceLevelClassifications 17
6.9 ChronicFailure 18
6.10 RemediationPlan. 18
6.11 ServiceLevelCredits 18
6.12 Relief 20
6.13 JointReviewofServiceLevels 21
6.14 CustomerSatisfaction 21
ARTICLE 7 -BUSINESS CONTINUITYAND RECOVERY 21
7.1 Acknowledgement. 21
7.2 ServicesRecoveryManagement. 22
7.3 RolesandResponsibilities 22
7.4 RecoveryTimeObjectives 23
7.5 TestingofIBMServicesRecoveryPlan 23
7.6 BusinessContinuityRepresentative 23
7.7 ActualDisaster 24
ARTICLE 8-RELATIONSHIPMANAGEMENTANDHUMANRESOURCES 24
8.1 Governance 24
8.2 PowerandAuthorityofIBM 25
8.3 Province'sRighttoIssueDirectives ~ 25
8.4 Reliance onInstructions , 25
8.5 RequiredProvinceApproval. ~ 25
8.6 KeyPositions 25
8.7 ChangesinProvinceKeyPositions 26
8.8 ChangesinIBMKeyPositions 26
8.9 IBMKeyPositionFailures 27
8.10 Training 27
8.11 GeneralPrinciplesRegardingPersonnel. 28
8.12 RelationshipwithProvinceClients andStakeholders 29
8.13 AnnualStrategicPlan 30
ARTICLE 9-BENCHMARKING 30
9.1 Benclunarking :: 30
9.2 BenclunarkingCooperation 30
9.3 ComparisontoRepresentative Sample 30
9.4 Benchmarker'sReport 31
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ARTICLE 10 -INTELLECTUALPROPERTYAND PROPRIETARYRIGHTS 31
10.1 ApplicationofSections 31
10.2 ExcludedProjects ; 31
10.3 ProvinceIntellectualProperty 31
10.4 IBMIntellectualProperty 31
10.5 ThirdPartyIntellectualProperty 32
10.6 AssignmentRe: IntellectualProperty 32
10.7 IBMPersonnelandSubcontractors 32
10.8 ProvincePersonnelandSubcontractors 33
10.9 IBM'sUseofProvince IntellectualPropertyfor Services 33
10.10 IBM'sUseofModifications 33
10.11 Province'sUseofEmbeddedIBMIntellectualProperty 34
10.12 ProvinceModifications toEmbeddedIBMIntellectualProperty 35
10.13 Province'sUse ofIBM Software 35
10.14 Post-TerminationMaintenanceandSupport 35
10.15 ThirdPartyIntellectualProperty 35
10.16 ReservationofRights 35
10.17 Marking 36
10.18 SystemContaminants 36
10.19 SystemProtectionFeatures 36
10.20 ResidualInformation 36
10.21 OwnershipofOtherAssets : 36
ARTICLE 11 -BRANDINGAND TRADEMARKS 37
11.1 ProvinceMarks 37
11.2 BrandUse 38
ARTICLE 12 -CHARGES 38
12.1 Charges 38
12.2 Invoices 38
12.3 MethodofPayment. 38
12.4 Taxes 39
12.5 ValueForMoney 39
12.6 RectificationandRightofSet-Off 39
12.7 DisputedPayments 39
12.8 "WithholdingPayment. 40
12.9 Expenses 40
ARTICLE 13 -BENEFIT SHARINGAND GROWTH .41
13.1 BenefitSharingPrinciples 41
13.2 MarketingandReferenceAssistance .41
13.3 GainSharing 42
13.4 PromotionalMaterials 43
ARTICLE 14- PRNACY, SECURITYAND CONFIDENTIALITy .43
14.1 Acknowledgements 43
14.2 OwnershipandControlofPersonalInformation .43
14.3 DisclosureofPersonalInformation .44
14.4 Collection, Storage, RemovalofPersonalInformation .44
14.5 RequestforAccess toPersonalInformation .45
14.6 PrivacyObligationsForPersonalInformation .45
14.7 USAPatriotAct. 45
14.8 SafeguardingConfidentialInformation ; .46
14.9 PermittedDisclosureandUse ofConfidentialInformation 46
14.10 Confidentialityof thisAgreementandTransactionDocuments .47
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14.11 Exceptionsto ObligationofConfidentiality 47
14.12 DisclosureCompelledbyLaw 48
14.13 NoRights to ConfidentialInformation .48
14.14 ResidualInformation 48
14.15 NotificationofUnauthorizedUse ofConfidentialInformation .49
14.16 BreachofConfidentiality 49
14.17 OrganizationalStructureofIBM andSubcontractors 50
14.18 OrganizationalSecurity 50
14.19 PrivacyTraining 50
14.20 AuthenticationProjectandStandards 51
14.21 FOIPPAInspections 51
ARTICLE 15 _ MAINTENANCE OF RECORDS AND AUDITRIGHTS 51
15.1 MaintenanceofRecords 51
15.2 CustodyofProvince Records ~ 52
15.3 ControlofProvinceRecords 52
15.4 ReturnofProvinceRecords 53
15.5 CostsofRecordKeeping 53
15.6 DisposalofRecords 53
15.7 Locations ofRecords 53
15.8 StorageResponsibilities 54
15.9 AccessRights , : 54
15.10 FinancialAuditRights 54
15.11 Audit,InvestigationandInspectionRights 55
15.12 CostsofAudits, Investigations andInspections 55
15.13 OperationalAuditRights 55
15.14 Officeofthe ComptrollerGeneraL 56
15.15 GeneralAuditProvisions 56
15.16 CostsofAudits : 57
15.17 GeneralPrinciplesRegardingAudit, InvestigationandInspectionRights : 57
15.18 Deficiencies 58
15.19 CostofAudits, Investigations andInspections 58
ARTICLE 16- REPORTmG 59
16.1 Reports tobeConlpleted 59
16.2 FormatofReports ~ 59
16.3 AnnualReviewofReportingRequirements 59
ARTICLE 17- CHANGE MANAGEMENT 59
17.1 OperationalChangeManagement. 59
17.2 ChangeOrderProcess 59
17.3 Initiatingthe Change OrderProcess 60
17.4 ProvinceInitiatedChange 60
17.5 IBMInitiatedChange , 61
17.6 ChangeRequestImpactonCharges 62
17.7 ImplementationofChanges 62
17.8 ConsequentialAmendmentsto tinsAgreement. 62
17.9 RecordofChanges 62
ARTICLE 18-DEFAULT.ANDTERMmATION 62
18.1 Events ofTermination 62
18.2 Remedies oftheProvince 64
18.3 Terminationfor ChronicFailure 64
18.4 ProvinceTerminationEvent. 64
18.5 Remedies ofIBM 65
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18.6 TerminationbyProvince for Convenience 65
18.7 TerminationNotice 65
18.8 TerminationFees 65
ARTICLE 19- TERMINATIONSERVICES 66
19.1 TerminationServices 66
19.2 TerminationAssistancePlan 67
19.3 QualityofServices 68
19.4 ChargesforTerminationServices ~ 69
19.5 TransferofAssets andContracts 69
19.6 TransferofPersonneL 70
19.7 IBM SeveranceCosts 70
19.8 ProvinceSeveranceCosts 70
19.9 AdditionalTernrinationArrangements 71
19.10 EquitableRemediesoftheProvince 71
ARTICLE 20- GENERALDUTIES AND OBLIGATIONS 72
20.1 GeneralDutiesandObligationsofProvince , 72
20.2 GeneralDutiesandObligationsofIBM ~ 72
20.3 CompliancewithApplicableLaws 72
20.4 CompliancewithSpecificLaws 73
20.5 CompliancewithCorePolicyManual. , 74
20.6 ObtainingandMaintainingLicencesandPermits 74
ARTICLE 21-REPRESENTATIONS,WARRANTIES AND COVENANTS 75
21.1 IBMRepresentations andWarranties 75
21.2 ProvinceRepresentations andWarranties 77
21.3 ServiceVolumeslNumberofSeats 77
21.4 DisclaimerofWarranties 77
ARTICLE22- INDEMNIFICATIONAND LllvIITATIONOF LIABILITY 78
22.1 GeneralIntent. · 78
22.2 IndemnificationbyProvince 78
22.3 Indemnification.byIBM 78
22.4 IBM IntellectualPropertyIndemnification 80
22.5 ProvinceIntellectualPropertyIndemnification 81
22.6 ThirdPartyClaimProcess : 81
22.7 Mitigation , ~ 83
22.8 Limitation 83
22.9 LimitationofLiability 83
ARTICLE23 - INSURAN'CE 85
23.1 Insurance 85
23.2 CertificateofInsurance : 85
23.3 AdequacyofInsurance 85
ARTICLE 24- DISPUTES 85
24.1 ITIformalDisputeResolution 85
24.2 Arbitration 87
24.3 Confidentiality' 88
24.4 ExceptionstoDisputeResolutionProcedure 88
24.5 ContinuityofServices 89
ARTICLE25 - CRITICAL SERVICESAND FORCE MAJEURE 89
25.1 CriticalServices 89
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25.2 ServicesRecoveryPlan 89
25.3 LabourDisruptionPlan 89
25.4 LabourDisruption 90
25.5 ForceMajeureEvents 90
25.6 NoticeofForceMajeureEvent. 90
25.7 MitigationofForceMajeureEvent. 91
25.8 ConsequencesofForceMajeureEvent. ; 91
25.9 EstablishingaForceMajeureEvent. 92
·25.10 ExtensionforForceMajeureEvent. 92
ARTICLE 26- SUBCONTRACTORS ORGANIZATIONAL STRUCTURE 92
26.1 ResponsibilityforSubcontractors 92
26.2 InconsistentSubcontractTerms 92
26.3 GeneralContractTerms(Subcontractors) 93
26.4 SubcontractorMonitoring 93
26.5 Non-DisclosureDocuments 93
26.6 ConfidentialityBreaches ~ 94
26.7 ConfidentialityReAssignedContracts : 94
26.8 CopiesofExtracts 94
26.9 ConsenttoUseofSubcontractors 94
26.10 Exception 95
26.11 ProvinceCriteriaforKeySubcontractors 95
26.12 RemovalofSubcontractor 95
26.13 OtherBusinesswithSubcontractors 96
26.14 Suppliers 96
ARTICLE 27- ASSIGNMENT 96
27.1 AssignmentbyProvince 96
27.2 AssignmentbyIBM 96
ARTICLE28- CONTRACTUALRELATIONSHIP ~ 97
28.1 Relationship oftheParties : 97
28.2 NoPartnershiporJointVenture 97
28.3 . ConflictofInterest. 98
28.4 CodeofCoIiduct. 98
28.5· Province'sConflictofInterestPolicy 98
ARTICLE 29- PROVINCE SHARED INFRASTRUCTURE 98
29.1 OwnershipandControlofProvince SharedInfrastructure 98
29.2 UseofProvinceSharedInfrastructure 99
29.3 RestrictionsonAccessandUse 99
29.4 OrdinaryCourseChangestotheProvinceSharedInfrastructure 100
29.5 MaterialChangesto the ProvinceSharedInfrastructure 100
29.6 PaymentsfromIBM 101
29.7 FailureinProvinceSharedInfrastructuTe 101
29.8 TerminationofRights toProvince SharedInfrastructure 102
ARTICLE 30- TECHNOLOGYCHANGE/ TECHNOLOGY STANDARDS 102
30.1 TechnologyChange 102
30.2 TechnologyStandards 102
30.3 ImplementingIrrlprovedTechnology 103
30.4 IBMAssistancere Standards 103
ARTICLE 31 - PRODUCTPURCHASE 104
31.1 RelationshipBetweenthePartiesforProductProcurement. 104
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31.2 ProcurementTermsandConditions 104
31.3 PurchaseOrderForecasting 104
31.4 Failureto SupplyMachines orPrograms 104
31.5 Requestto ChangeTechnologyBrand 105
31.6 RiskofLoss 105
ARTICLE 32-MISCELLANEOUS 105
32.1 Notice 105
32.2 AppropriationandApprovals 106
32.3 Severability 107
32.4 EntireAgreement. 107
32.5 Amendments ; 107
32.6 NoLiensorChargesagainstProvincialAssets : 107
32.7 Waiver 107
32.8 FurtherAssurances 108
32.9 Obligationsas Covenants 108
32.10 TransactionFeesandCommissions 108
32.11 Survival. , 108
32.12 Language 109
32.13 GoverningLaw 1.10
32.14 ChangeofLaw 110
32.15 NoFetteringofLegislativeAuthority , 111
32.16 Procurement. 111
32.17 BindingEffect. 111
32.18 NoThird-PartyBeneficiaries 111
32.19 Publicity 112
32.20 EnvironmentalPolicy 112
32.21 Counterparts ~ 113
ScheduleA Definitions
ScheduleB Services
Schedule C CertifiedCopies ofExtracts ofKey Subcontracts
ScheduleD ServiceLevels
ScheduleE SharedInfrastructure
ScheduleF Charges
ScheduleG TechnicalTransitionJRefresh
ScheduleH Organizational Structure
ScheduleI Application and Operating SoftwareLists
ScheduleJ Equipment
ScheduleK Standards-Hardware
ScheduleL Facilities
ScheduleM Key Positions
ScheduleN SummaryFinancialInformation
Schedule0 TerminationFees
ScheduleP Governance
Schedule Q FormofCertificateofInsurance
ScheduleR PrivacyObligations
ScheduleS - Reporting
ScheduleT - "BrandPermission
ScheduleU Change OrderProcessForms
ScheduleV FormofNon-Disclosure Agreement
ScheduleW FormofInvoice
ScheduleX ServicesRecovery
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Schedule Y PurchaseTenns andConditions
Schedule Z Transition
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THIS MASTER SERVICES AGREEMENT is entered into as of December 3,2004 (the "Effective
Date"), between IBM Canada Limited ("IBM"), a company incorporated under the laws ofCanada and
HerMajesty the Queenin Right ofthe'Province ofBritish Columbia as represented bytheMinister
ofManagement Services (the "Province").
RECITALS
A. The Province conducted a competItIve procurement process under the JSRFP for
purposes ofestablishing a contractual business alliance with an experienced and qualified third party to,
among otherthings, manage and delivercertain workplace supportservices to theProvince;
B. As a result ofthe JSRFP process, the Province selected IBM to provide the workplace
support services to the Province subjectto, andin accordance with, the terms ofthis Agreement;
C. IBM is awholly-owned subsidiaryofIBM WorldTrade Corporation;
D. The Parties are committed to fulfilling their obligations with respect to the security of
information and protection of privacy of Personal Information, and have therefore structured this
Agreement, and the relationship between the Parties, in order to ensure that the same is achieved where
IBMhas access to orCustodyofPersonal Information;
IN CONSIDERATION of the foregoing and the mutual covenants and agreements contained in this
Agreement, the Parties covenantandagree as follows:
ARTICLE 1-INTERPRETATION
1.1 Definitions.
Unless otherwise provided in this Agreement (or in any Schedules attached to this Agreement),
capitalized terms shall have the meanings given to those terms in the attached Schedule A (Definitions).
In addition to the definitions contained in Schedule A (Definitions), any capitalized terms defined
elsewhere inthis Agreementshallhave themeanings so givento them.
1.2 Recitals.
The recitals to this Agreement are intended to be a general introduction to this Agreement and are'not
intended to expand the scope of the Parties' obligations under this Agreement or to alter the plain
meaning ofthe terms andconditions ofthis Agreement.
1.3 Headings.
The division of this Agreement into Articles, Sections, Subsections, paragraphs and .clauses and the
insertion of headings are for convenience of reference only and shall not affect the construction or
interpretation ofthisAgreement.
1.4 Interpretation.
Inthis Agreement, unless expresslystatedto the contrary:
(a) the terms "Agreement", "hereof', "hereunder", and similar expressions refer, unless
otherwise specified, to this Agreement taken as a whole andnotto any particularArticle,
Section, Subsection, paragraph, clause orotherportionofthis Agreement;
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