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Information Services Rate Model

Updated Unified Services Rate Model

OMES delivers information technology and telecommunication services to the State of Oklahoma agencies, boards and commissions as set forth in statute.

OMES converted to a service rate model in 2016 and recently updated its service rates to go into effect in July of 2020. Below you will find resources about the updated rates.

Resources

Overview

Statute requires OMES to set rates based on estimated full costs. All changes in technology rates must be approved by the Government Technology Application Review Board.

OMES updated its rate model in July 2016 providing a rate structure in categories of tech essentials, tech plus, tech projects and tech maintenance with the goal of providing agency customers an easier to understand invoice and upfront information about technology spending.

In 2019, OMES met with The Persimmon Group consulting firm to recommend changes to the rates and rate structure. This process included discussions with a number of agency leaders, legislative leaders, executive branch leaders and information services professionals from other states.

The FY 21 rates proposed were reviewed and approved by the Government Technology Advisory Review Board on Sept. 16. OMES announced the change in rates to agencies so they can include the impact of the changes in their budget submittals, due annually on Oct. 1.

Frequently Asked Questions

Does this mean my bill from OMES IS will go up?

It depends on your mix of labor and products, but likely yes.  (Remember that OMES IS has been underfunded by $15 - $20 million per year.)

It depends on the combination of labor and products you require, but invoices will likely increase.

What happens if I sign up for x number of a product and it changes during the year? Does my bill get increased or decreased accordingly?

The rates are based upon the demand you project needing during the year.  If your demand goes down, you will continue to pay the amount you projected.  If your demand goes up, your bill will be adjusted during the true-up period.

What if my agency has a special need for a product I don’t see on the catalog?

Please contact your IT Strategist for staffing or your Account Executive for products or parts to get your specific needs met. View the Partnering with Information Services Contact List to find your agency assigned team.

How can I compare my FY20 App C to this catalog?

Use the parts lists provided today to start the process.  You will need to work with your AE or IT Strategists to work through part 628 (applications maintenance)

What if my agency isn’t large enough to have dedicated IS resources?

OMES IS has created a pool of resources (developers, project managers, etc.) who can be dedicated to you when needed.

Am I only paying for the hours the dedicated resources work on my project?

No – the rates are calculated based on the average 2080 hours/year and that is what you will pay for your resources.  If you do not have dedicated resources, you will pay for the hours worked on your projects.

Given that OMES IS labor rates are lower than other states, how do we know we will be getting competitive resources? Should the labor rates be even higher?

This increase will help us ensure we keep good people who want to serve our state and we will continue to evaluate the rates annually to ensure we remain reasonable competitive.

What are Information Services Rates?

The Office of Management and Enterprise Services delivers technology and telecommunication services to the State of Oklahoma agencies, boards and commissions at a rate based on a rate model. If a rate changes, it is reviewed by the Government Technology Advisory Board as set in statute per the Oklahoma State Finance Act.

Why are there Information Services Rates?

OMES is required by the Information Technology Consolidation and Coordination Act to provide mandatory, shared services and charge the cost back to appropriated and nonappropriated agencies to recoup expenses only. OMES provides specific shared programs, services, software and processes, and – as outlined in ITCCA – these services should not be duplicative.

Why are the service rates being updated for FY 2021?

OMES updated its rate model for FY 2021 to do the following:

  • Reduce significant losses for products.
  • Provide dedicated Information Services staff if requested by the customer.
  • Maximize federal dollar recovery.
  • Establish a one-year prior fiscal rate model.
  • Compete in talent and costs with the private sector.
  • Establish a project governance council to improve project prioritization and allocate resources for projects.

When were the service rates last updated?

MES last updated its rate model in July 2016. The rate structure categories included tech essentials, tech plus, tech projects and tech maintenance. This structure was designed to provide customers a simpler invoice and upfront information about technology spending.

How did you come up with the FY 2021 updated service rates?

In 2019, OMES met with The Persimmon Group, a consulting firm who recommended changes to the rates and rate structure. This process included discussions with several agency, legislative and executive branch leaders and information services professionals from other states.

What happens if I sign up for x number of a product and it changes during the year? Does my bill increase or decrease accordingly?

The rates are based upon your fiscal year demands, as projected in your annual budget that was due Oct. 1. If your needs decrease, you will continue to pay the projected amount. If your demand increases, your bill will be adjusted during the true-up period.

What if my agency has a special need for a product I don’t see in the service catalog?

Please contact your IT strategist for staffing or your account executive for products or parts. View the Partnering with Information Services Contact List to find your agency assigned team.

How can I compare my FY 2020 App C to this catalog?

Contact your account executive to receive information about the App C comparison.

Am I paying only for the hours the dedicated resources work on my project?

It depends on the resource. For dedicated resources, customers pay rates that are calculated based on the average 2,080 hours per year. If you do not have dedicated resources, you will pay for the hours worked on your projects.

Given that OMES IS labor rates are lower than other states, how do we know we will be getting competitive resources? Should the labor rates be even higher?

This increase will help us retain good employees who want to serve our state, and we will continue to evaluate the rates annually to ensure we remain reasonably competitive.

When will the FY 2021 direct appropriations funding amount be determined?

Direct appropriations funding will be determined by the Legislature during the upcoming legislative session. OMES advises agencies to move forward with including the CORE Financial Systems rate in your budget estimate. Once the appropriations amount is determined during the next legislative session, OMES will notify agencies of any rate changes at that time. See the FY 2021 Service Rates presentation for more information about appropriated funding or contact your AE.

How did you come up with the hourly labor rate?

OMES completed a two-step process. For the fully-burdened rate, we took a bottom-up approach examining the actual expense left over from parts and other funding sources and calculated the remainder. The second approach was a market comparison where we averaged the vendor rates in technology statewide contract 1025 and proposed a similar price. This allows OMES to remain competitive in costs and talent while providing optimal services to our customers.

How do we get better visibility between our agency and OMES IS staff to improve performance?

OMES is updating its project governance process to improve communication, planning and resource allocation for projects. For OMES staffing performance issues, please work with your IT strategist.

How will staffing changes be handled for dedicated staff in FY 2021?

In this model, there is a preset amount of dedicated OMES IS staff. If you require an increase during the year, we will adjust your staffing charges to reflect the new amount. A post-commitment reduction by your agency in dedicated OMES IS staff will necessitate a discussion with OMES, as it will affect the rate. If your OMES IS dedicated staff member leaves, you will not be charged until they have been replaced.