Effective April 1, 2012 IBM Technical Support Services is changing the way scope and contract discount/uplift percentages are applied to IBM commercial services contract pricing.
These changes apply to IBM ServiceElite, ServiceSuite and ServiceElect contracts. The IBM Services Assistant Tool (ISAT) and the Contract Handling Information System (CHIS) are being updated to reflect these changes and are available at proposal time using the IBM Services Assistant Tool (ISAT).
Overview of Incentive Changes:
• All net-new proposals created on or after April 1, 2012 with a proposal start date equal to or greater than April 1, 2012, will receive the new term and/or full term price protection uplift incentive changes.
• All new proposals created after April 1, 2012 will not receive the scope incentive.
• Any renewal proposals or contracts will receive all new incentive changes.
• "Add to contract" proposals will maintain the scope, term and/or full term price protection incentives of the parent contract.
Note: Business Partner Federal Remarketer contracts will not be affected by these incentive changes (contract types are SELDISTRF and SELREMRF).
Scope Incentive Changes
Scope Incentive changes will affect proposals as follows:
• New proposals created before April 1, 2012, will continue to receive scope through for the first term of the contract after registration.
• New proposals created on or after April 1, 2012, will not receive scope.
• Any "add to contract" proposal will maintain the scope characteristics of the parent contract.
Scope Incentive changes will affect renewal proposals and contracts as follows:
• If a renewal proposal eligible for scope was priced before April 1, 2012 with a term start of April 1, 2012 or greater, it would have priced including scope incentive, but upon renewal, billing will not include the scope incentive.
Renewal proposals are for budget and planning only and prices or incentives in effect on renewal date will apply.
Note: For any contract with a renewal term start of April 1, 2012 or greater, the billing generated upon renewal will not include the scope incentive.
Scope Incentive changes will affect proposals or contracts that were created via "copy identical" or "copy with options" as follows:
• Any copy of a proposal or contract made on or after April 1, 2012, will not include scope.
Term and Full Term Price Protection Incentive Changes
• New proposals with a start date and create date before April 1, 2012, the proposal price will be calculated using the term incentive or full term price protection uplift in effect prior to April 1, 2012.
• New proposals with a start date before April 1, 2012 and created after April 1, 2012, the proposal price will be calculated using the term incentive or full term price protection uplift in effect prior to April 1, 2012.
• New proposals with a start date greater than or equal to April 1, 2012 and a create date before April 1, 2012, the proposal price will be calculated using the term incentive or full term price protection uplift in effect prior to April 1, 2012.
• New proposals with a start date greater than or equal to April 1, 2012 and created after April 1, 2012, the proposal price will be calculated using the new term incentive or full term price protection uplift announced on April 1, 2012.
• Any "add to contract" proposals will maintain the term incentive and/or full term rice protection uplift of the parent contract
Term and Full Term Price Protection incentives changes will affect renewal contracts/proposals as follows:
• For auto-renewing contracts with an April 1, 2012, or later, renewal date where it retains the same contract number, the billing generated at renewal will be calculated using the newly announced incentive changes; if a renewal proposal was created prior to April 1, 2012 for an April 1, 2012, or later, renewal term/contract, the proposal price will not match the billed price. (Renewal proposals are budget and planning only).
• Any contract with an April 1, 2012 term start date or greater, the billing generated will be calculated using the newly announced incentive changes.
Merge "Add to" Contract proposals:
• Any merge "add to" contract will maintain the incentive and/or uplift characteristics of the parent contract
If action is taken on or after April 1, 2012 for "copy identical" or "copy with options" where the proposal start date is changed, the following applies:
On "copy identical" or "copy with options" and changing the start date to April 1, 2012 or greater, the contract start date will determine which incentives and/or uplift applies.
• Example: If the proposal start is prior to April 1, 2012, the proposal price will be calculated using the term incentive or full term price protection uplifts in effect prior to April 1, 2012. If the proposal start is equal to or greater than April 1, 2012, the proposal price will be calculated using the term incentive or full term price protection uplifts announced on April 1, 2012.
• In addition, "copy identical" can cause the following reporter message:
• Original pricing option is not eligible for the copied proposal. Default pricing option of the active WhoWhatWhom was assigned.
• If you receive this message you need to verify your pricing option. If the default pricing option is not what you require, select the correct pricing option and continue.
For additional details on this announcement, Business Partners should refer U.S. Channel Communications Letter CC1204-084 dated April 1, 2012.
ISAT questions should be directed to the ISAT Help Desk by selecting the Related Link Option within ISAT; click on BP Issue Submission. Complete the Level 1 Issue Log. Acknowledgement will be within two hours; resolution within 24 hours and/or updated status available within 24 hours and/or updated status provided every 24 hours.
Michelle Mastromonaco / Contract Ops Analyst / (210) 247-1740
Direct link: http://www.avnetadvantage.com/IBM/Global-Services/#9049-3
Posted on April 9, 2012
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