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Vendor Scorecard Framework (Telemetry-Driven, Outcome-Based)

A procurement-ready framework to score vendors using independent telemetry, observability, and governance evidence.

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Purpose

To evaluate vendors based on verifiable outcomes, risk posture, and long-term value, using independent telemetry and observability rather than self-reported metrics.

Scoring model overview

  • Scale: 1–5 (1 = unacceptable, 5 = exceeds requirements).
  • Weighting: adjust by criticality (example weights below).
  • Evidence: scores must be supported by telemetry, logs, or audit artifacts.
  • Review cadence: monthly (operational), quarterly (governance), annually (renewal).

Category A — Service performance and reliability (25%)

What this measures

Whether the vendor delivers what was contracted, consistently.

Evidence required: independent telemetry feeds, incident timelines, post-incident reports with timestamps.

  • Uptime and availability against SLA.
  • Latency and throughput vs agreed thresholds.
  • Error rates and failure frequency.
  • Mean time to detect (MTTD).
  • Mean time to recover (MTTR).

Scoring guidance: 5 = exceeds SLAs with early warning; 3 = meets SLAs with reactive recovery; 1 = repeated SLA breaches or unverifiable performance.

Category B — Observability and transparency (15%)

How visible and understandable the vendor’s system behavior is.

Evidence required: telemetry schemas, access controls, incident root-cause analyses.

  • Access to raw telemetry (not dashboards only).
  • Traceability across components.
  • Root cause clarity during incidents.
  • Data retention and auditability.

Scoring guidance: 5 = full transparency; 3 = partial visibility; 1 = black-box systems with limited insight.

Category C — Governance and control (15%)

Whether the organization retains authority and control.

Evidence required: change logs, governance documentation, control plane designs.

  • Change management process.
  • Rollback and fail-safe mechanisms.
  • Human override and escalation paths.
  • AI and automation boundaries (if applicable).

Scoring guidance: 5 = explicit controls; 3 = informal controls; 1 = vendor-controlled changes without safeguards.

Category D — Security, privacy, and compliance (15%)

Exposure to regulatory, data, and security risk.

Evidence required: audit reports, security attestations, incident disclosures.

  • Security incident history.
  • Compliance certifications (where relevant).
  • Data residency and access controls.
  • Vulnerability response time.

Scoring guidance: 5 = proactive security; 3 = compliant but reactive; 1 = repeated or opaque security issues.

Category E — Dependency and lock-in risk (10%)

How difficult it is to replace or exit the vendor.

Evidence required: contract clauses, architecture diagrams, data export tests.

  • Data portability.
  • API openness and standards.
  • Exit clauses and transition support.
  • Substitute vendor feasibility.

Scoring guidance: 5 = low dependency; 3 = moderate friction; 1 = high lock-in and proprietary dependencies.

Category F — Financial integrity and cost predictability (10%)

Whether costs are predictable and aligned to value.

Evidence required: invoice analysis, usage telemetry, cost trend reports.

  • Cost variance vs forecast.
  • Pricing transparency.
  • Overage frequency.
  • Billing dispute rate.

Scoring guidance: 5 = predictable and transparent; 3 = occasional variance; 1 = frequent surprises or opaque pricing.

Category G — Responsiveness and accountability (10%)

How the vendor behaves under stress.

Evidence required: incident communications, action item tracking, escalation records.

  • Incident response time.
  • Quality of communication.
  • Ownership during failures.
  • Follow-through on remediation.

Scoring guidance: 5 = proactive and accountable; 3 = responsive but reactive; 1 = delayed or evasive responses.

Overall risk rating (derived)

  • Green: ≥ 4.2 — Preferred / renewal candidate.
  • Amber: 3.2–4.1 — Conditional / remediation required.
  • Red: < 3.2 — Exit planning or replacement recommended.

Governance actions by score

  • Green: renew, consider expanded scope.
  • Amber: issue remediation plan with deadlines.
  • Red: initiate exit strategy; restrict new dependency.

sys3(a)i value add (why this works)

  • Designing telemetry that maps directly to contract terms.
  • Providing independent observability across vendors.
  • Reducing reliance on vendor self-reporting.
  • Enabling objective renewal, renegotiation, or exit decisions.
  • Preserving procurement leverage over time.

One-line procurement summary

This scorecard converts vendor performance from assumed compliance into measurable, enforceable outcomes using independent telemetry and governance controls.

sys3(a)i POV: We approach critical systems work by stress-testing architectures, integrating observability and governance from day one, and designing sovereign or edge footprints where independence and continuity matter most.

What to do next

Identify where this applies in your stack, map dependencies and failure modes, and align observability and governance before committing capital. Need help? Engage sys3(a)i.