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Before a third-party vendor begins maintaining a newly acquired system, which document must be created?

  1. Contract agreement

  2. Service Level Agreement (SLA)

  3. Purchase order

  4. Non-Disclosure Agreement (NDA)

The correct answer is: Service Level Agreement (SLA)

The Service Level Agreement (SLA) is critical before a third-party vendor starts maintaining a newly acquired system because it formalizes the expectations, responsibilities, and performance metrics that both parties agree upon. This document outlines the specific services that the vendor will provide, the standards for service delivery, and measures for performance evaluation. It ensures that both the organization and the vendor have a clear understanding of the scope of work, response times, availability, and any penalties or remedies in case of service failures. Creating an SLA aids in establishing accountability and supports a collaborative relationship between the organization and the vendor. By defining the agreed-upon service levels, it helps in mitigating risks associated with vendor management, particularly in terms of service quality and consistency, which are critical for maintaining the integrity and performance of the system being managed. While other documents such as contracts, purchase orders, and non-disclosure agreements play necessary roles in vendor relationships, the SLA addresses the specific service expectations in a way that is vital when maintenance and operational responsibilities are handed over to a third party.