October 2009

1. SWG Vendor Operations – • Guidelines for Vendors • Contracting Vehicle required – Prior to an engagement • NON-ERS October 2009

2. Agenda • Before an engagement • Contracting Vehicle Required • Supplier Set up • Transactional SOWs/ERS • Purchase Orders • Letter of Authorizations • Contact Information Where to go for Help

3. BEFORE ENGAGEMENT Contracting Vehicle Required To be considered as a subcontractor • To work as an IBM subcontractor you must either have an active IBM supplier number that is Web Order Invoicing (WOI) enabled or you must be aligned as a sub-tier to an IBM procurement core supplier. • As a subcontractor, you must either have the following agreements in place directly with IBM or an equivalent in place with one of the IBM procurement core suppliers. • Solutions Engagement Agreement (SEA)/Technical Services Agreement (TSA) • These agreements contain base terms and conditions and definitions that are referenced in each work authorization • Agreement for Exchange of Confidential Information (AECI) • Agreement that governs the handling of confidential information between IBM and subcontractors. If specific information is to be disclosed, a supplement will be put in place by IBM procurement which outlines a non-confidential description of what is being disclosed, who is disclosing the information and to whom, the datesfor the discloser and any special conditions surrounding how the information can be handled. • Equipment Program Loaner Agreement (EPLA) • An agreement that outlines how IBM loaned equipment must be handled.

4. Contracting Vehicle Required For deployment on an engagement BEFORE ENGAGEMENT • Prior to a consultant going on site and working on an IBM engagement, an executed Statement of Work (SOW) and a Work Authorization must be in place. • For vendors that do not have a Master SOW* in place with SWG Services, the Traditional SOW process (Non ERS) is used. • For Projects under $100K -> To be considered ‘executed’ a NON-ERS SOW must be sent to the vendor and returned unchanged with an “ I accept” notated in the email. If changes to the NON-ERS are required, the vendor should contact the sender, copy the BRAND ID, and the NON-ERS will be rejected, changed and resubmitted. Once executed, the brand subcontractor analyst will process a CART, which will produce a purchase order, in support of the SOW. Once internal approvals are obtained the fully executed SOW will be sent to the vendor via a VRS (Vendor Requisition Summary) with CART # listed. This VRS is considered the Work Authorization. • For projects over $100k -> the Traditional SOW must be sent from IBM procurement to the vendor for review and signature. Once the vendor signs and returns the SOW, and procurement counter signs, it is considered ‘executed’. Once executed, the brand subcontractor analyst will process a CART, which will produce a purchase order, in support of the SOW. Once internal approvals are obtained the vendor will be sent a VRS (Vendor Requisition Summary) with CART # listed. This VRS is considered the Work Authorization. • There are times when a PO cannot be obtained in time for deployment. In these cases, the brand subcontractor analyst will pursue a written approval from procurement. This written authorization to start prior to receipt of a PO can be in the form of an email or a formal Letter of Authorization.* • * further detail following.

5. BEFORE ENGAGEMENT Contracting Vehicle Required For deployment on an engagement • Purchase Order • If you have not received a PO within a week for a fully executed Traditional SOW/NON-ERS, please contact your subcontractor analyst. • PO numbers will be sent to you via email from the IBM Supply Portal Website. Please accept the PO upon receipt. • If you are running out of hours or expenses or the end date of your contract is approaching and you need an extension, please proactively contact the SWG Services engagement owner (IBM contact named in the SOW) and copy your BRAND ID. If you do not receive a response from the engagement owner, please contact your subcontractor analyst. • Letter of Authorization (LOA) • An LOA is a formal letter from IBM procurement that authorizes a subcontractor to start work prior to receipt of a PO.

6. BEFORE ENGAGEMENT Contracting Vehicle Required For deployment on an engagement • Master SOW • For vendors who have performed well as part of a formal RFI facilitated by procurement or for vendors which have built up a significant volume of business (ie, $1M per year), we put a streamlined contracts process in place. • The streamlined process consists of a Master SOW which enables us to use an ERS instead of the Traditional SOW. POs are released from a template PO called a BSAP. Overall, this process is considered “buyerless”, meaning IBM procurement is not involved, and generally allows us to have a fully executed contract within minutes and a PO the next day, once internal approvals have been obtained. • If you are interested in more information about the Master SOW (streamlined process) please contact your brand Relationship Manager. Contact information is listed on the ‘Partner Relationship Manager Contact Information’ slide.

7. Contact InformationWhere to go for Help: Subcontractor Analysts(note: brand ids are monitored by a primary SA, with backup coverage as needed)

8. Contact InformationWhere to go for Help: General Topics

9. Contact InformationWhere to go for Help: Partner Relationship Management Team Roles • Partner Relationship Management Team Roles: • Proactive partner relationship management • Identifying new vendor companies that can address skill gaps • Negotiation and set up of MSOWs (ERS enables a partner) • Point of contact for the delivery team to address issues with existing partners • *For a complete list of Partner Relationship managers please see Contact List for Partner Relationships

10. Contact InformationWhere to go for Help: Partner Relationship Manager

11. Contact Information for ICSWhere to go for Help: