Department of Administrative Services
Services & Rates
Activity-Based Costing Project – ITE Marketplace Services and Rates
Changes to DAS-ITE (Information Technology Enterprise) marketplace services and rates as a result of the Activity-Based Costing Project undertaken by DAS are effective July 1, 2008, for Fiscal Year 2009.
Frequently Asked Questions
- What is Activity-Based Costing?
- Why is DAS undertaking this project?
- Who does this affect?
- What changes will I notice on my eDAS bill?
- When do the changes take effect?
- Will this affect the services I'm currently receiving from DAS-ITE?
- What do I do if I want to change the services my agency orders from DAS-ITE?
- Who can I contact with questions?
- More questions asked by our customers and answered by DAS.
1. What is Activity-Based Costing?
Activity-based costing is a method of assigning the organization's resource costs through activities to the products and services provided to its customers. In other words, whatever it costs to produce a product or service is what is charged to the customer.
Although it sounds easy enough, that has not been the typical method used by businesses -- or government -- because it can be challenging to figure. Traditional methods allow for a percentage of expenses to be added onto direct costs to allow for indirect costs. ABC is now utilized by companies and agencies all over the world, however, although it's a relatively new concept to state government.
2. Why is DAS undertaking this project?
DAS is utilizing ABC to not only better align prices charged versus actual cost, but also to clean up and streamline services offered by DAS-ITE. This will make it easier for customers to get exactly the products and services they need, at a fair price and with clear, simple billing.
3. Who does this affect?
These changes affect DAS customers that purchase marketplace services from the Information Technology Enterprise (ITE). Marketplace services are those provided by DAS which the customer (other state agencies and political subdivisions) have the option of purchasing from DAS or from another source. Examples of DAS-ITE marketplace services include wireless BlackBerry services, tape storage, e-mail, server hosting and remote access. (For a full list of DAS-ITE services, do an advanced search for the enterprise "Information Technology" in the eDAS online catalog.)
4. What changes will I notice on my eDAS bill?
Beginning with the July 2008 bill, which customers will receive mid-August, a number of changes will take effect that should ultimately make your bill easier to understand and services easier to order.
Customers will see:
- New rates.
- Some rates are going up, while others are decreasing. All rates were analyzed using Activity-Based Costing methods, and we feel this has allowed us to develop rates that are more accurate and fair.
- Click here for a list of FY09 ITE Marketplace Services and Rates.
- The more than 200 marketplace services listed for DAS-ITE prior to July 1, 2008, will be streamlined to approximately 80 service IDs.
- 58 services will be consolidated into other service IDs.
- In addition to the consolidated services, about 80 service codes will be eliminated.
- In a few instances services will appear to be new, but those services have simply been added to your bill either because:
- you were receiving them previously but not being properly billed.
- some services were broken down to allow for greater flexibility in ordering and receiving exactly the services you need, and to better reflect true costs and functions required to provide a service. Click here for an itemized list of these primary and supporting services.
All of these changes were explained in a memo distributed to DAS-ITE marketplace customers in early June. Each customer received a Customer Impact Spreadsheet with the memo that showed previously ordered services, and how those services will change on July 1, 2008.
5. When do the changes take effect?
The changes to DAS-ITE marketplace services and rates are effective beginning July 1, 2008, which is the first day of Fiscal Year 2009. Customers will first note the changes on their July eDAS bill, which they will receive in mid-August 2008.
6. Will this affect the services I'm currently receiving from DAS-ITE?
No. You will still receive the same services and levels of service from DAS-ITE. The only changes you will notice will be on your bill – both in how services are listed and the rates.
7. What do I do if I want to change the services my agency orders from DAS-ITE?
To change the marketplace services – or levels of service – you are receiving from DAS-ITE, please make the appropriate adjustments through eDAS, the online ordering and billing service for DAS.
8. Who can I contact with questions?
If you don't see your question answered here or in the log of questions already received from customers and answered, please send an e-mail to DAS.Finance.Billing@iowa.gov.
Page updated 08/15/2008