PMP · Question 44 · Task 8: Negotiate project agreements
A project manager is negotiating a service level agreement with an external vendor for cloud hosting services. The vendor is proposing 99.5% uptime with 4-hour response times for critical issues, while the business requires 99.9% uptime with 1-hour response times. The vendor cites resource constraints and states that meeting the business requirements would require a 40% price increase. What should the project manager do FIRST?
Answer options:
Accept the vendor's proposal since 99.5% uptime is industry standard
Negotiate a compromise at 99.7% uptime with 2.5-hour response times
Analyze the business impact of different service levels to understand the value of higher availability and faster response times
Find alternative vendors who can meet the business requirements at a lower cost
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