ITIL4F ITIL Management Practices Practice Question
A company has an agreement with a supplier to provide 99.9% availability for a cloud service. This agreement is documented in a contract that is reviewed annually. According to ITIL 4, which type of agreement is this?
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
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Underpinning Contract (UC)
Supplier Management is responsible for supplier contracts, which are typically documented as Underpinning Contracts (UCs). SLAs are agreements between the provider and customer, and OLAs are internal agreements.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
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Service Level Target (SLT)
Why it's wrong here
A Service Level Target (SLT) is a specific, measurable commitment detailing a particular aspect of service performance, such as 99.9% availability or a maximum response time. While crucial for defining service quality, an SLT is merely a component or a specific metric *within* a larger agreement, not the agreement itself. The question describes an overarching agreement with an external supplier, which is a broader contractual relationship than a single target.
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Operational Level Agreement (OLA)
Why it's wrong here
An Operational Level Agreement (OLA) is an internal agreement established between different departments or teams *within* the same service provider organization. Its primary purpose is to define the responsibilities and performance commitments of internal support groups, ensuring they align with and contribute to the overall service provider's obligations to its customers. The scenario explicitly refers to an agreement with an *external supplier*, making an OLA an incorrect choice for this external relationship.
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Underpinning Contract (UC)
Why this is correct
An Underpinning Contract (UC) is a formal, legally binding agreement between a service provider and an *external third-party supplier*. This contract specifies the goods or services the supplier will provide, along with their agreed-upon performance levels, which are essential for the service provider to deliver its own services to customers. The question describes precisely this relationship: an agreement with a supplier to provide a specific level of service (99.9%), directly supporting the service provider's commitments.
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Service Level Agreement (SLA)
Why it's wrong here
A Service Level Agreement (SLA) is a documented agreement between a *service provider* and a *customer*, outlining the specific services to be delivered, the responsibilities of both parties, and the agreed-upon service levels. It defines the customer's expectations and the provider's commitments regarding service quality and availability. The scenario, however, describes an agreement *with a supplier*, which is a distinct relationship from the customer-provider dynamic governed by an SLA.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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