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ConceptVersie: 0.9Datum: 2025-10

Ecosystem SLAs — Outcome-based Contracts

From Platform Procurement to Ecosystem SLAs​

Old model: Buy X number of platforms for €Y New model: Buy effects + surge capacity with outcome-based KPIs

Why?​

Traditional procurement focuses on inputs (how many platforms), not outputs (which effects).

Problems with old model:

  • Long procurement cycles (5-10 years)
  • Vendor lock-in (proprietary interfaces)
  • No incentive for rapid iteration
  • Peacetime inventory ≠ wartime surge

Ecosystem SLA advantages:

  • Pay for availability + effects
  • Vendor incentive for uptime and iteration
  • Flexibility (upgrade during contract)
  • Surge capacity built in

Ecosystem SLA Structure​

Three Components​

  1. Availability Fee — Annual fee for readiness
  2. Usage Fee — Payment per mission/effect
  3. Capacity Credits — Pre-paid surge option

KPIs in Ecosystem SLAs​

1. Availability (Readiness)​

Metric: % of time system is operational

Target: ≥ 95% Warning: 90-95% Breach: < 90%

Penalties:

  • 90-95%: 10% discount on availability fee
  • 85-90%: 25% discount
  • < 85%: 50% discount + remediation plan required

Example: ISR Coverage

Contract: 24/7 ISR coverage over Baltic (10,000 km²)
Availability target: ≥ 95%
Measurement: Uptime of sensor coverage
Reporting: Real-time dashboard + monthly report

2. MTTR (Mean Time To Restore)​

Metric: Average time to restore failed system

Target: ≤ 4 hours Warning: 4-8 hours Breach: > 8 hours

Includes:

  • Fault detection time
  • Logistics (spare parts)
  • Repair/replacement time
  • Return to service

Example: Drone Swarm

MTTR target: ≤ 4 hours
Failure: 1 drone out of swarm of 20 crashes
Response:
  - T+30 min: Fault detected (telemetry)
  - T+2 hours: Replacement drone deployed
  - T+3 hours: Swarm fully operational
MTTR: 3 hours ✅

3. Time-to-Surge​

Metric: Time to 10x production

Target: ≤ 6 weeks Warning: 6-12 weeks Breach: > 12 weeks

Measured by:

  • Quarterly surge drills (test activation)
  • Supply chain audits
  • Tooling readiness checks

4. Iteration Speed​

Metric: New features/updates per quarter

Target: ≥ 2/quarter Warning: 1/quarter Breach: < 1/quarter

Examples:

  • Software updates (autopilot, AI models)
  • Sensor upgrades (new wavelengths)
  • Comms improvements (new waveforms)

Pricing Model​

Availability Fee (Annual)​

Base formula:

Availability Fee = (Platform Cost × Availability Target × Risk Factor)

Example: Tactical Drone Swarm

Platform cost: €50K/drone × 100 drones = €5M
Availability target: 95%
Risk factor: 15% (includes tooling, supply chain)
Availability Fee: €5M × 0.95 × 0.15 = €712K/year

Usage Fee (Per Mission)​

Base formula:

Usage Fee = (Operational Cost × Mission Duration) + Depreciation

Example: ISR Mission

Operational cost: €500/hour (sensors, comms, personnel)
Mission duration: 24 hours
Depreciation: €1K (wear & tear)
Usage Fee: (€500 × 24) + €1K = €13K/mission

Capacity Credits​

Prepaid surge option:

Capacity Credit = (Surge Production Cost × Credit Factor)
Credit Factor = 10-20% (reserve cost)

Example:

Surge production: 1000 drones @ €50K = €50M
Credit factor: 15%
Capacity Credit (annual): €7.5M/year

Activation:

  • Credits are "spent" upon actual surge production
  • Remaining 85% is paid upon delivery

Contract Example​

ISR Coverage — Baltic Region​

Scope: 24/7 ISR coverage, 10,000 km², EO/IR/SAR sensors

KPIs:

  • Availability: ≥ 95%
  • MTTR: ≤ 4 hours
  • Time-to-surge: ≤ 6 weeks (10x capacity)
  • Iterations: ≥ 2/quarter (software, sensor upgrades)

Pricing:

ComponentAnnual Cost
Availability Fee€2.5M
Usage Fee€50K/day × 365 = €18.25M
Capacity Credits€5M (surge option)
Total€25.75M/year

Penalties:

  • Availability < 95%: Proportional refund
  • MTTR > 4 hours: €10K/incident
  • Surge drill failure: €100K + remediation plan

Bonuses:

  • Availability > 98%: 5% bonus
  • Iteration speed > 3/quarter: €50K bonus

Multi-vendor Ecosystem​

One ecosystem SLA can contain multiple vendors:

Prime Contractor is responsible for:

  • Overall availability
  • Integration between vendors
  • MTTR coordination
  • Surge capacity activation

Sub-vendors deliver:

  • Specific components (sensors, comms, etc.)
  • Module-level SLAs
  • Open interfaces (no lock-in)

Governance & Transparency​

Real-time Dashboard​

All stakeholders (government, prime, sub-vendors) have access to:

  • Availability metrics (live uptime)
  • MTTR tracking (incident logs)
  • Surge readiness (tooling status, supply chain)
  • Iteration roadmap (planned updates)

Monthly Reviews​

  • Performance against KPIs
  • Penalty/bonus calculations
  • Upcoming iterations
  • Surge drill planning

Quarterly Surge Drills​

Test of time-to-surge capability:

  1. Simulate escalation scenario
  2. Activate capacity credits
  3. Measure response time
  4. Identify bottlenecks

Capital Markets (Zuidas) Fit​

Why investors care:

  • Recurring revenue (availability fees)
  • Predictable cash flow (multi-year contracts)
  • Dual-use leverage (civilian + military)
  • Strategic importance (government backing)

Investor pitch:

Contract: €25M/year, 5 years = €125M total
Availability fee: €2.5M/year (recurring)
Gross margin: 30-40% (services model)
Dual-use upside: Civilian ISR, SAR, mapping

Next: 06 — Capacity Credits