Bonnie Klein, FAC Secretary Date: 21 April, 1997 Re: Minutes of the FEDLINK FAC Meeting, March 20, 1997 Reviewed, corrected and accepted April 24, 1997. FAC Members Agency OTHER ATTENDEES PRESENT: FEDLINK Staff: Churchville NARA Susan Tarr, FLICC Executive Director Grimes NOAA Joseph Banks, Business Manager Klein DTIC Erik Delfino, Network Program Specialist Porter ACE Patti Fields, Network Program Specialist Rettenmaier NRL Milton MeGee, Network Coordinator Updegrove CCurrency Whitmore NIH ABSENT: Lomax FBP Wright NAL AGENDA: 1. Approval of the February 20, 1997 FAC Meeting Minutes 2. FAC Issues and Topics 3. FLICC Update Abacus Studies FY98 Budget Preparations 1997 Performance Plan 4. FEDLINK Network Operations Fixed Pricing for OCLC Cataloging Services FLICC Web Site Update 5. FEDLINK Fiscal Operations 6. Committee Reports 7. New Business Agenda Item 1: The FAC Meeting Minutes of January 16, 1997, and of February 20, 1997, were reviewed, corrected and accepted. Agenda Item 2: FLICC Forum: Fred Rettenmaier thanked and complimented the FLICC/FEDLINK staff and the Forum Committee on the '97 FLICC Forum, Clear Signals? - Telecommunications, Convergence and the Quality of Information, held March 6, 1997. He remarked on the low attendance and wondered how to improve it. There was discussion of some problems such as delayed advertising because of being down to the wire in getting commitments from speakers. Susan Tarr said FEDLINK would begin planning earlier for next year with the goal of having the program set by Christmas for advertisement in January. Program focus was also an issue; there is a need to better explain how Forum topics relate to libraries and their operations. Rettenmaier sees the Forum as education rather than training. He remarked on the need to reach library managers and demonstrate how the Forum relates to agency missions. He asked if copies of the presentations would be available, especially the talk by Emmet Paige. Susan Tarr said that proceedings and a videorecording of the Forum will be available. FEDLINK tries to get copies of written presentations from the speakers; if unsuccessful, summaries are created from notes taken by an attending reporter. OCLC Users Council Representation Formula. Susan Tarr said Rich Van Orden sent email confirming that the FEDLINK calculations for OCLC User Council Delegates did include figures for the National libraries, but did not include the Library of Congress because OCLC purchases LC records from the Cataloging Distribution Center. FEDLINK staff will ask OCLC if figures for GPO, which does original cataloging, are also included. OCLC recalculates annually. FEDLINK will follow the process closely to allow time for future FEDLINK delegate elections. At one time, FEDLINK had 5 delegates, but is now reduced to 2. FEDLINK Spring Membership Meeting. Milton MeGee supplied a working draft of the agenda of the FEDLINK Spring Membership Meeting to be held May 2, 1997. Fred Rettenmaier noted the absence of a topical speaker. Susan Tarr remarked that FEDLINK had many topics to present at the meeting, including the Abacus Direct vs. Transfer Pay study and the completed business plan to be delivered at the end of March. Rettenmaier encouraged FAC members to email program suggestions to MeGee. Tarr suggested the topic of end-user training , mentioned the National Institute of Health program, and suggested seeking a corporate speaker. Other suggestions included tapping ready presentations developed by the Special Libraries Association (SLA) and the American Society for Information Science (ASIS). Tarr remarked if the end-user training topic was not presented at the May meeting, perhaps it would be appropriate for a mini-forum in the Fall. She also recommended FEDLINK conduct a Train the Trainer course in the Fall. Agenda Item 3: Susan Tarr presented the FLICC Update. Abacus Studies. Susan Tarr explained that FEDLINK rode the Library of Congress 3-year Abacus consultant services contract for planning and accounting studies; the previous LC contractor was Price-Waterhouse. The first study, a Cost-Benefit Analysis, was conceived to demonstrate what FEDLINK saves agencies using its services. Abacus had difficulty in understanding the issues. Their study based on a financial survey of six libraries has not been accepted. Rather than declare a contract default, FEDLINK will meet with Abacus on March 21, 1997, to recommend another methodology to focus on a single agency procurement -- costing it and developing models at $25K, $100K and above $100K procurement levels. The findings of the second Abacus study on Cost Allocations will change FEDLINK budget administration and allocations. The purpose of the study was to either substantiate or call for the modification of the current Direct or Transfer Pay fee structures. Joseph Banks said the cost analysis was based on the type of service. The study determined that FEDLINK's basic cost in setting up and maintaining an account averages $1200 for either Direct or Transfer Pay customers. Are actual costs for the services close enough to charge the same fee across the board? The quandary is whether to institute a common or a complicated fee structure. The third Abacus study is the FEDLINK Business Plan which was subcontracted to Barbara Robinson. This study has three deliverables. The baseline report focuses on internal issues and has 20 findings. The second focuses on the external environment. The third, received March 19th, explores the competition to FEDLINK services provided by other government agencies or by members dealing directly with vendors. Tarr emphasized that FEDLINK is not in business to stay in business, but to provide a service. The question is how to measure service effectiveness against these factors. The studies are background white papers to be used to build concepts of operations. Tarr proposed to review the Business Plan with the FAC and work on various scenarios at our next meeting. Budget and Finance Working Group, March 19, 1997 Meeting. Lida Churchville was the FAC representative. FEDLINK projects that the 1998 budget will be $300K above 1997. Using the 1996 completed year figures, the increase is a result of an increase in Direct Pay activity. Based on the Abacus study findings, Direct Pay costs are greater than Transfer Pay. The Working Group looked at increasing the base fee for Direct Pay and/or increasing the supplemental percentage fee for accounts over $100K. The set up and administration of a Direct Pay account is fixed between $1000 and $1200. The Small Purchase procurement threshold is $100K. There is more work involved in setting up accounts over $100K and hence more cost. Looking at the top 30 (out of 89) Direct Pay customers with accounts over $100K, increasing the supplemental percentage from .5% to 1%, i.e., doubling the fee, means the largest customer increase would equal $37K. The Working Group leaned towards raising the Direct Pay base fee from $850 to $1200 and a phase-in change to the supplemental fee, increasing from .5% to .6% the first year and to 1% in the second. The Working Group believed that a one-time full increase would lose customers. The goal is to keep customers and get the right people to pay the correct amount for FEDLINK services rendered. There was discussion about the large Army Corps of Engineers, Treasury and Justice Direct Pay accounts and about the disadvantages to and hidden internal accounting costs for small customers who choose to set-up Direct Pay rather than Transfer Pay accounts. For next year, Transfer Pay fees will remain at 8% and in the future could possibly decrease to 7-3/4% because of increased Transfer Pay activities. Currently there is no cap on Transfer Pay accounts. The Abacus study also found that the size of a contract and the type of contract service were cost variables. The problem to resolve is how to keep the fee structure simple but fair. Susan Tarr asked the FAC their opinion of an increased base fee and a two-year phase-in in which Transfer Pay continues to subsidize Direct Pay. After much discussion, the FAC agreed with the Budget and Finance Working Group recommendation for a phase-in fee increase. 1997 Performance Plan. Susan Tarr reported she was readying a draft Performance Plan for review by Mr. Winston Tabb, the LC Associate Librarian for Library Services. The Plan is an internal document which may be shared with the FAC. Highlights follow. The Technical Services plan is fully implemented; 11 to 12 customers are planning to use the service this year.. Last year's pilot included 5 vendors and 3 customers. The Database Services RFP is a huge effort in which FEDLINK is trying to include full-text and electronic journals, involving licensing issues and the development of boilerplate agreements. Also in the works is a brochure to introduce new and prospective members to FEDLINK services Agenda Item 4 FLICC Web Site Update: Turning to FEDLINK Network Operations, Milton MeGee introduced Erik Delfino who reported on the rework of the homepage. Delfino mentioned that Robin Hatziyannis will work with a designer on the overall look and to develop a logo and graphics. Delfino hoped to resolve security issues in order to move the ALIX Financial Statement records to the Web by April. The records include the Nightly Summaries and the Electronic Statements, OCLC Monthly Usage and OCLC Archive; these last three are designed to pull into spreadsheets. Customers will use the same ID and passwords as they have now for ALIX access. Increased content also includes: the Preservation Working Group resource list for disaster planning; the Technology Working Group Library Survey data, FEDLINK publications with section hotlinks, Forum summaries, and a registration package. Meg Williams will put up a questionnaire on the Web to survey FEDLINK members about their budget plans for FY98 FEDLINK account activity. FEDLINK will inform members about the questionnaire through the listservs and a notice in Tech Notes. Fixed Pricing for OCLC Cataloging Services. Patti Fields presented a new OCLC option for fixed fee cataloging to be offered July 1, 1997, the beginning of the OCLC fiscal year.. She distributed a cataloging quote to each FAC member tailored to their agency. Her hand-out noted that the service afforded predictable pricing and the first year offered the opportunity for a no-risk try-out. Subsequent year rate increases are based on prior year activity; decreased activity does not result in reduced rates. Only full-cataloging OCLC members are eligible. Fields explained the pricing formula, fixed fee billing and product codes. She sought FAC advice about the wording on the order form FEDLINK received from OCLC which is different than what was discussed at a December 1996 meeting. Of concern was the use of the word "warrant" in the last sentence. Fields asked FAC members to get their agencies reaction to the form and provide comments and suggestions for wording by March 28, 1997. Speed was essential because the FEDLINK deadline for sign-up for the OCLC trial service is noon June 15, 1997. Other Business. Milton MeGee reported that OCLC was cooperating with JSTOR, a non-profit group seeking to replace print with electronic journals. They are exploring how to continue access to a common archive independent of publishers. FEDLINK is also looking at these issues in relation to the Database Services RFP. The National Defense University has a version of a licensing agreement that may serve as a model for electronic journal contracting. MeGee also announced in his email poll of members, the FAC agreed to change the date of the Fall membership meeting from November 13, 1997 to October 14, 1997. Agenda Item 5. Joseph Banks reported on FEDLINK Fiscal Operations. He stated that this year measured against last year, 13% more Interagency Agreements (IAGs) are in process and service dollars have increased better than 16%. 1997 budget estimates based on January 1st figures project a $89K surplus. He also reported there was progress in filling the Fiscal Operations vacancies, anticipated having new employees on board in 30-45 days. Banks said the FY92 statements would be out by May 97 and the FY93 statements in August or September. Any rebate announcement would be made in the August time frame. Agenda Item 6. No reports were given. Agenda Item 7. Milton MeGee presented new business. The next FAC meeting was scheduled for April 17, 1997. However, Susan Tarr has training that day and asked to hold the meeting the following week on April 24, 1997. The FAC agreed to the change. Lida Churchville noted that the National Archives is sponsoring a program by Rita Mae Brown on April 24th and invited the FAC to attend. In another FAC schedule change, Susan Whitmore motioned to cancel the August 1997 FAC meeting. Lee Porter seconded. The motion carried. The meeting adjourned at 11:50.