PDF of 2019-2021 Budget Guidelines Memorandum

 

The Information Technology Department (ITD) has projected service rates for the 2019-2021 biennium.  The rate schedules and a brief description of the services for Data Processing and Telecommunications may be found on the ITD website at www.nd.gov/itd/billing.  Rates that are highlighted in bold are the rates that changed from the 2017-2019 budget instructions.

Each biennium ITD looks at the need to adjust the rates for the services provided.  Because it is difficult for agencies to adjust their funding once the budget has been approved, every attempt is made to keep ITD rates from increasing during the biennium.  The following is an overview of the rate changes for the upcoming biennium. 

The service rates for professional staff will remain the same.  ITD will be piloting a new approach to handling software development toolset upgrades.  ITD will continue exploring cloud computing solutions, fitting those costs within the current general hosting rates which will be held steady.  Agencies who utilize the mainframe and AS/400 platforms will need to budget for the effect of fewer agencies sharing the costs for these computing platforms as some agencies migrate to other solutions.  The technology fee for state agencies will increase.  Rates for telephone services are expected to remain steady.  Agencies utilizing Software as a Service (SaaS) applications require a signed waiver from ITD and will see rates associated with ITD’s ongoing role in brokering cloud services.

Enterprise Project Management Office

Agencies with large projects will be billed a fee to cover the costs associated with the Enterprise Project Management Office and large project reporting requested by the Legislature.  The fee will be $2,500 per every $500,000 of project costs.  This fee will be capped at $25,000 per project per fiscal year. 

ConnectND

ITD bills each agency for the cost of ConnectND (the PeopleSoft financials and human resource applications). Each agency has a ConnectND fee on their data processing bill each month. The amount each agency needs to budget is as follows:

  • $11.72 per month for each legislatively authorized FTE identified in the 2017-2019 Legislative Appropriations book.
  • $9.11 per month for every $1 million appropriated to the agency as identified in the 2017-2019 Legislative Appropriations book.

Software Development Toolset Upgrades

The ITD Software Development Division supports many software development tools and languages. As part of our cybersecurity posture ITD upgrades versions of our tools and languages on a regular basis.  ITD will be piloting a new approach to upgrading the Java/Websphere applications.  Costs for these upgrades will be included in the monthly application hosting fee.  Agencies will not need to budget for software development hours to complete the upgrade as in past biennium.  This approach could be expanded to all toolsets in future biennium.

Agencies should still budget for upgrades to their existing applications outside of Java/Websphere. The Budget Guidelines for Toolset Upgrades document includes initial estimates of the average time required to modify agency programs due to toolset and language upgrades. Agencies should contact their ITD Team Leader if they have questions specific to their agency.

Network Rates and Technology Fee

Endpoint network rates for fiber locations will remain the same as the 2017-19 biennium.  Base connectivity for state agencies with non-fiber endpoints on STAGEnet is currently 10 Mbps and agencies should budget for this minimum bandwidth at all endpoint locations.  There are additional bandwidth options available for additional cost. 

Agencies that have any broadband connectivity (DSL, cable, wireless, satellite, cellular) are reminded that all connectivity should be purchased through ITD and there is an associated broadband add-on charge in addition to vendor cost of the broadband connection.  The add-on rates will be remain the same for the 2019-2021 biennium.  The premium add-on rate applies to locations that require network to network connectivity and comes with extended support hours.  The basic add-on applies to locations that have six or less connections and do not require the network to network connectivity or extended support hours.  The residential add-on applies to single person locations that do not need network to network connectivity or extended support.

The Technology Fee rate will increase from $64.00 to $66.25 to remain revenue neutral as the denominator for the rate has decreased.  ITD will be retiring File and Print user fees.  These costs will be covered within the Technology Fee.  The usage metric is based on the number of legislatively authorized FTE identified in the 2017-2019 Legislative Appropriations book.  A small number of agencies will see an upward adjustment if they have their own server farms or have significantly more computers than FTE counts.  A few agencies run large 24x7 operations and these agencies will see a downward adjustment to reflect this type of shift work.  ITD will notify affected agencies and finalize the Technology Fee metric for those agencies by the end of June 2018.

Storage Rates

ITD storage rates are expected to decrease from the 2017-2019 budget rates. Premium storage, basic storage and file share storage will decrease for both on-demand and dedicated disk.  TSM backup storage will also decrease.  Agencies that have significant storage growth projections should meet separately with ITD to determine if other storage pricing tiers will help to mitigate the cost impact of their storage growth.  ITD continues to explore storage options available from cloud providers. 

Application Broker Fees

Agencies utilizing Software as a Service (SaaS) applications require a signed waiver from ITD.  If the waiver is approved ITD will partner with agencies to broker the initial contract and ongoing vendor relationship.  This may include periodic security reviews, architecture reviews or annual meetings to discuss product roadmaps.  The rates associated with this service will be a surcharge of 3.5% of the annual amount paid to the vendor providing the solution.  The fees will be billed monthly with a minimum of $10 per month and a maximum of $1,000 per month.  Legacy SaaS applications will incur these charges as well.  ITD will work with the agencies in regards to these fees.

General Hosting Rates

ITD will continue exploring cloud computing options, doing so within the current rate structure for server, disk and application hosting.  Agencies should review their current usage levels and anticipate any areas of growth to determine increases for specific hosting services. 

Website Hosting

ITD deployed a State Website platform during the 2017-19 biennium.  Users of this platform, built on Drupal 8, will not need to budget for toolset upgrades for Drupal as published in the Budget Guidelines for Toolset Upgrades. 

For agencies not utilizing the State Website platform, the tiered costs are still in place.  Agencies will have to budget for toolset upgrades for their sites in the 2019-21 biennium.

SharePoint Hosting

Microsoft has announced SharePoint Foundation will no longer receive upgrades past the release of SharePoint 2016.  Current Foundation (WSS) sites will gradually be migrated to SharePoint Online for the same cost as on premise SharePoint Foundation.

Legacy Application Surcharges

Several agencies are running older versions of SQL, Oracle or Websphere applications that have not been upgraded to a currently supported version.  These agencies will need to upgrade those applications to current supported versions of these software products.  Agencies who run on older versions should budget for a minimum surcharge of 25% to cover the operating costs of the legacy hosting environments.  Agencies running SQL 2008 will incur an increased fee as of July 2019.  Agencies with applications using Oracle 11g should plan to have upgrades completed during the 2019-2021 biennium as support ends December 2020.  Legacy surcharges may take effect after support has ended for applications running versions older than SQL 2012 SP2, Oracle 12c, and/or Websphere 9.0.

Mainframe and AS/400 Computing

During the 2019-21 biennium there will be a continued effort by agencies to rewrite applications and migrate away from mainframe or AS/400 based applications.  Due to the continued hardware, software and staff requirements of these systems, remaining agencies will see cost increases as usage is migrated off.  ITD will be having specific meetings with remaining agencies about budgeting cost increases.

Basic Phone Service and Professional Display Phone

In an effort to simplify our rates, ITD will be combining the Basic Phone Service and the Speaker Display charges for the 2019-21 Biennium. The Basic Phone service will increase to $23/month and the $3/month speaker display charge will be retired. Basic phone service includes a state specific phone number and a basic phone device.  This service also allows the state phone number to be configured to deliver phone calls to an employee’s cellular phone in addition to the employee’s office phone. Rightfax services are included in the basic phone rate charged for that fax number. Some agencies have applications that generate a significant amount of incoming and outgoing fax traffic.  These accounts will be reviewed and charged a tiered monthly application fee if their usage or high availability requirements necessitates any significant infrastructure upgrades or investments.

Micrographics Rates

ITD will continue to coordinate micrographics services in state government but has outsourced the actual processing of microfilm due to equipment costs coupled with the declining use of microfilm in state government.  Agencies using Micrographic services should contact ITD to determine what rates to budget for the 2019-21 biennium.

These are the major changes ITD will implement for the next biennium.  Please review the detailed rate schedules for specific rate increases.  If you have any questions, please feel free to give me a call at 328-4006.