State Agency Cost Sharing
Each SA pays a share of maintenance costs according to a cost sharing formula developed by the User Group. Specifically:
- The total annual maintenance fee will be divided into two equal portions.
- The first 50% of the total fee will be divided equally across all participating member SAs (fixed cost share).
- The remaining 50% will be split across SAs by percentage of caseload, with the lead M&E Contract SA receiving a 5% discount from the participant cost share total from the M&E annual maintenance cost for administering the M&E Contract.
- The cost sharing percentages based on caseload will be calculated using the average monthly participation for the prior fiscal year and will be updated annually.
- When a new SA joins the User Group, a new maintenance cost sharing ratio will be determined and new maintenance Service Orders will be executed.
See Illustration Below
The following table illustrates the maintenance cost sharing formula. This information and the ratios will need to be adjusted annually (based on RNS participation count information) and as new SAs join the Crossroads User Group.
The following table illustrates how the formula will work in practice, based on an imaginary User Group participation and annual maintenance cost of $10k.
*SA 3 is M&E Lead SA
The example below illustrates a pricing structure that provides a fixed rate for additional SAs joining the Crossroads User Group based on the SA’s average participation. This additional SA cost will be added to the total annual maintenance cost each time a SA joins the Crossroads User Group. For example, the annual maintenance cost is $10,000 and a SA joins with an additional cost of $500 based on their SA caseload. The new annual maintenance cost of $10,500 would be shared by the Crossroads User Group based on the formula described above. This is an acceptable approach to maintenance pricing provided the individual SA costs are reduced with the addition of a new member. The Offeror should provide competitive pricing using this approach, or to propose another approach that would be more beneficial to the User Group.
