Fiscal Year 1999 Information Services Costs Date: Mon, 29 Jun 1998 09:41:45 -0400 To: "Elaine A Gockel, Regional Admin Officer, Denver, CO" , "Janet T Thomas, Reg. Administrative Officer, Menlo Park, CA" , "Kelly L Bradley, Chief, FORS, Reston, VA" , "Gloria J Stiltner, Chief, DIS, Reston, VA" , "Veronica A Andreani, Admin. Officer for Research, Reston, VA" From: "Alice A. Sabatini" Subject: FY 1999 Information Services Costs Cc: sao, "Catherine L Hill, ACH/Operations, Reston, VA" In Reply Refer To: Mail Stop 442 MEMORANDUM June 29, 1998 To: Regional Administrative Officers, CR, WR Chief, Financial Operations and Reporting Section Chief, Distributed Information System Network Program Administrative Officer for Research From: Alice A. Sabatini Administrative Officer, Water Resources Division Subject: Fiscal Year 1999 Information Services Costs REPLY REQUESTED BY JULY 17, 1998 The Office of Program Support (OPS) has recently conducted briefings for the Division Chiefs, their Associates for Operations, and the Division Administrative Officers regarding changes in Information Services costs for fiscal year (FY) 1999. On Tuesday, you will receive a Federal Express package with the report and overheads that was provided during the briefings. As more fully explained in the forwarded materials, OPS recently completed a review of funding of the information services functions of OPS that were previously funded by the Reston Data Center (which operates the USGS mainframe and directly related activities). The review determined that the Data Center revenue was not only supporting costs directly related to mainframe operations, but also approximately $4 million of non-related information services costs. OPS has determined that it is no longer appropriate for these costs to be supported by the Data Center (a conclusion that I agree with). Through both cost cutting measures as well as deferral of expenses, OPS reduced the costs to approximately $2.2 million. The $2.2 million includes information services related to bureauwide, site specific, and demand (user) driven requests/services. Since the $2.2 million can no longer be funded via Data Center revenue, OPS has analyzed the services and costs and prepare tables showing how the costs will be funded beginning in FY 1999. In the case of the Water Resources Division (WRD), the cost impact would be an increase of $109, 194 in bureau assessment-funded information services; an increase of $207,581 for site specific services; and a yet to be determined increased amount for demand driven information services. Clearly, it makes good business sense to use OPS consolidated information services in lieu of each division independently staffing or contracting for many types of needed information services. However, we must be certain that the provided services are what we need and are cost effective. Therefore, your assistance is requested as follows: Gloria and Kelly: Please review WRD utilization of site specific OPS services at the National Center and provide recommendations regarding use of the present services, any services which may no longer be required, any additional services that are required, and potential cost savings that could be gained through consolidation of some services between WRD and OPS. Note that site specific services for Reston are estimated to ffff,0000,0000decrease by $24,676 in FY 1999. Elaine: Please review WRD utilization of site specific OPS services in Denver and provide recommendations regarding the use of present services, any services which may no longer be required and/or any additional services required. In addition, please provide for FY 1998, itemization of costs paid directly to the OPS for use of site specific services. During the OPS briefings, we were advised that WRD, along with other divisions, have funded use of the site services in Denver directly (as opposed to paying for them via telecon shareable block funding). Consequently, no cost comparison can be made among the locations receiving site specific services nor can a comparison be made between costs for FY 1998 and FY 1999. Also, prepare an estimate of the amount of increased technical support allocations that would be required to support this increase in the Region and the Research Branch. Note that site specific services for Denver are estimated to ffff,0000,0000increase by $150,662 in FY 1999. Janet: Please review WRD utilization of site specific OPS services in Menlo Park and Flagstaff and provide recommendations regarding use of the present services, any services which may no longer be required, and/or any additional services required. Also, prepare an estimate of the amount of increased technical support allocations that would be required to support this increase in the Region and the Research Branch. Note that site specific services for Menlo Park are estimated to increase by $65,751 and site specific services for Flagstaff are estimated to ffff,0000,0000increase by $15,844. Ronnie: Please work with Kelly, Elaine and Janet to develop the needed funding estimates. Everyone: Please provide your best estimate of costs of demand-driven services in FY 1998 and projected estimate of costs for FY 1999. During the briefings, OPS officials explained that costs for these services are charged as requested by users. However, no detail was provided by Divisions, only an overall projected increase of $358,815 of which $243,648 was identified for Reston (1/2 of the increase is due to anticipated charges for use of the Graphics Lab) and $122,146 was identified for Flagstaff (mainly due to workstation support). During the briefing, OPS officials did not provide any information regarding FY 1999 rates for the use of the mainframe. Based on the information provided in the briefings, we expect that could be reduced dramatically. We have requested that OPS provide this information. You are encouraged to meet with appropriate regional representatives from OPS to obtain any additional information you may require. I would appreciate receiving your response by July 17, 1998. Attachments (forwarded by FEDEX) Copy to: Assistant Chief Hydrologist for Operations Senior Administrative Officers