Information Technology Infrastructure Library (ITIL) Foundation Practice Exam

What best describes the difference between an operational level agreement (OLA) and an underpinning contract (UC)?

1. The OLA is an underpinning agreement with legally binding terms whereas the UC supports the SLA, and is therefore not formal

2. The OLA is an internal document that defines the working relationship between different groups within the service provider organization whereas the UC is a legally binding document for a supplier in support of the SLA

3. The UC defines targets and responsibilities that are required to meet agreed service level targets in a service level agreement, whereas the OLA describes best endeavours for a service

4. There are no differences between a UC and an OLA as they both support the SLA

The correct answer is: The OLA is an internal document that defines the working relationship between different groups within the service provider organization whereas the UC is a legally binding document for a supplier in support of the SLA

The distinction between an operational level agreement (OLA) and an underpinning contract (UC) is fundamental for understanding service management frameworks. The OLA is specifically designed as an internal document that outlines the roles, responsibilities, and expectations among different teams within the same organizational structure. This means that it facilitates collaboration and clarity within the service provider, ensuring that various departments understand how they contribute to the delivery of services. On the other hand, the UC serves a different purpose by being a formal, legally binding agreement with external suppliers or vendors. It exists to support the service level agreement (SLA) by defining the terms of service, performance metrics, and guarantees that the external parties must adhere to in order to meet the commitments outlined in the SLA. The UC ensures that third-party suppliers deliver their services in a manner that aligns with the agreed-upon service levels. This distinction is crucial because it highlights the varying contexts in which OLAs and UCs operate. While OLAs focus on interdepartmental arrangements within the same organization to ensure effective service provision, UCs engage external entities, making them accountable for the quality and timeliness of their contributions. Understanding these differences helps organizations manage their service delivery effectively, as both OLAs and UCs play vital roles