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Does SLCP use a fee-based system to address VB quality failures?

  • Updated

Yes. Starting from March 31, 2025 SLCP will implement a fee-based model to decrease recurring quality mistakes at VB level and improve overall data quality.

Our data shows that the same quality failures frequently appear in multiple assessment reports. This repeated occurrence indicates a lack of meaningful improvement over time and affects the overall quality of SLCP data.

To tackle this challenge, and after careful consideration and planning, we are implementing a fee-based system to manage recurring VB quality failures.

Quality failures refer to any VB and/or Verifier violation of:

Whenever any violation is identified, the VOO issues a Corrective Action Request (CAR) to the VB, which affects the overall VB score. Once the CAR is issued, the VB must address the issue by implementing a Corrective Action Plan (CAP).

The new model has been developed to incentivize VBs to provide high quality reports.

Note: VB quality failure fees apply only to VBs. SLCP does not expect fees for VB quality failures to be passed on to facilities.

What are the key elements of the new quality failure fee model?

  • CARs issued to VBs will be categorized by "Key Quality Issue Categories"
  • CARs will be divided into four different types: Initial CAR, Interim Alert, Repeat CAR, and Double Repeat CAR. These classifications depend on the frequency of the same "Key Quality Issue Category" occurring.
  • Initial CAR, Repeat CAR, and Double Repeat CARs are each associated with different fees.

Will every CAR result in a fee to the VB?  

The issue date of the CAR and the date at which the violation happened will determine whether there will be an associated fee, or if the CAR will only affect scoring.

  • CARs that will be charged a fee: CARs issued on or after 31 March 2025, related to VRF reports or VB and Verifier activities from 1 January 2024 onwards are subject to fees and will impact VB scoring.
  • CARs that will NOT be charged a fee: CARs issued for reports before 1 January 2024 will not be charged a fee but will be recorded as an Interim Alert, affecting VB scores. As per our current quality failure process and before the start of our new model, CARs issued before 31 March 2025 will not be charged but will still impact scoring.

What is the cost of a CAR?

Not all CARs will be subject to the same fee. Cost varies by CAR type.

  • Initial CAR: The first instance a Key Quality Issue Category (KQIC) is found - $765. The Initial CAR is active for 12 months.
  • Interim Alert: Used when the same KQIC is found while a CAR is still within the CAP implementation window - $0. The CAP implementation window for Initial CAR is 70 days, Repeat CAR is 30 days, Double Repeat CAR is 15 days.
  • Repeat CAR: Issued when the same KQIC is identified after the 70-day implementation window of an Initial CAR and within the 12-month active period of the Initial CAR- $865
  • Double Repeat CAR: Issued when the same KQIC is found after the 30-day implementation window of a Repeat CAR and during the 12-month active period. Double Repeat CARs can be issued after the 15-day implementation window and can be issued multiple times within the 12-month active period - $965

VBs have 30 days to pay the invoice related to the CAR issued. The VOO will manage all the CARs and related CAPs through the new “CAR/CAP portal” developed to streamline submission and communication regarding CARs and CAPs.

What is the process of issuing CARs? 

  • Quality issues can be identified through different sources: for example, brand complaints, NGO and/or APSCA-led investigations, SLCP’s analytics models on data stored on the Gateway, Confidential Sensitive Information Report, onsite activities and more.
  • When a verified report (VRF) is flagged due to quality failures, SLCP or the VOO will conduct a desktop review of the VRF report and identify all quality issues related to that finalized report (VRF).
  • Quality issues are categorized based on the “Key Quality Issue Category” (KQIC) List – a summary of common quality issues VOO and SLCP have found from the review of thousands of Verifications. The KQIC list should serve as guidance for VB Quality Managers and Quality Reviewers when conducting an internal review of the VRF report.
  • When different KQICs are identified from a single source (for example, a Desktop Review), each one will be addressed in an individual CAR. This means 12 different Key Quality Issues would result in 12 CARs. One source can also be associated with multiple VRF reports and multiple CARs (one CAR per KQIC). However, only one fee will be charged for each source. This means for one Desktop Review with 12 KQIC and 12 CARs only one fee will be charged.
  • When different types of CARs are generated from the same source (such as one source has 1 Initial, 1 Repeat, 1 Double), the VB will only pay one fee that is determined by the most severe CAR type identified from that source (in this example, the Double CAR fee).

All details of the new fee-based model to address VB quality failures can be found in the concept note here and the presentation here.

 

 

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