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PROFESSIONAL SERVICES TO THE PUBLIC SECTOR <br /> 1100 LOGGER COURT, SUITE D. IO0 <br /> RALEIGH. NORTH CAROLINA 27609 <br /> (919) 876-8042 - FAX (919) 878-8592 <br /> August 28, 1990 <br /> <br /> Mr. Richard Russell <br /> Cabarrus County MIS Director <br /> P. O. Box 707 <br /> Concord, Nc~h Ce. rolin~ 28026 <br /> <br /> Dear Rick: <br /> <br /> This is in follow-up to our conversation on Monday of last week concerning connect <br /> (log-on) time charges. While you are accumulating data which will facilitate refinement of <br /> your billing rates for CPU charges, the temporary rate for CPU usage which you have <br /> placed into effect should be adequate to also cover connect-time costs. <br /> <br /> The larger long-term issue related to log-on charges is whether or not to establish a <br /> fee to be billed separately to each user for total time logged onto lhe system. Costs associ- <br /> ated with log-on operations are a small percentage of the total (calculated at 4.38% of <br /> annual computer operations cost), thus they could be combined ~qth CPU operations cost <br /> with little impact on the overall CPU rate. Within your operating env/ronment where users <br /> are logged on throughout normal operations, combining log-on costs with CPU operations <br /> will preserve a defensible and equitable rate structure for all users. An additional advan- <br /> tage of combining log-on costs with CPU operations is that it will simplify your billing <br /> system. <br /> <br /> Under its ADP Cost Determination Guide: An Applieation of Cost Principles <br />Contained in ]FMC 74-4 to ADp Facilities. the U. S. Department of Labor identifies connect <br />time as a standard component for charging generalized teleprocessing and data base-data <br />communications systems cost to online users in a shared access environment. Many local <br />DP rate structures do not, however, isolate connect time as a separate charge, although <br />· their billing algorithms may incorporate a connect time charge which is combined with CPU <br />utilization in calculating charges for total system resource ufil/zafion. (We have observed <br />this approach both in TUCC and in McDonnell-Douglas billing algorithms.) <br /> <br /> /O <br /> <br /> <br />