III. OCLC MEMBERSHIP AND CHARGES

SET UP OCLC MEMBERSHIP

OCLC cataloging membership required
To use the FEDLINK Technical Processing Services BOA, you must be a current member of an OCLC regional support network with a membership category of "cataloging member." If you are not an OCLC member now, contact FNO for additional information about becoming an OCLC member. If you need to change your present membership status, contact the network with which you are presently affiliated.

Network affiliation
You must be a member of an OCLC support network to use these services, among these are: AMIGOS, BCR, FEDLINK, ILLINET, INCOLSA, Michigan Library Consortium, MINITEX, Missouri Library Network Consortium, NEBASE, NELINET, OHIONET, PALINET, SOLINET, SUNY, WILS, or through OCLC directly, such as OCLC Pacific, OCLC Europe, etc.

CONTACT OCLC NETWORK

Confirm OCLC "cataloging" membership status
Your OCLC "profile" must support the cataloging services you want from the FEDLINK Technical Processing Services BOA. Ask your network to confirm that you have at least an "OCLC tapes only" profile (no cards required) or a full "card printing" profile (cards required). If it is not already in place, allow your network six weeks to put it in place before requesting FEDLINK Technical Processing Services.

Obtain a current copy of OCLC location symbols
Ask your network to promptly send a list of all of your "location symbols," including your 3-character OCLC symbols, called "stems." Also request a list of all 4-character "holdings symbols" associated with these stems. A copy of this list must be attached to your order for FEDLINK Technical Processing Services.

Obtain OCLC authorization numbers and passwords
Request one OCLC authorization number and password for each outsourcing vendor project. It is necessary to get a new authorization for the vendor even if the same vendor is selected again in a later competition. Separate authorizations will ensure that your OCLC invoices can be monitored. Two vendors using the same authorization, or the same authorization applied to subsequent projects, will make it impossible to accurately monitor the vendor's activity. Obviously, this authorization must not be used by your in-house staff. The type of authorization requested depends on the type of work you will require:

Order OCLC Usage Statistics
OCLC Usage Statistics are a new electronic statistical report delivered through the OCLC Product Services menu for $10.00 per month. All OCLC users have access to OCLC Usage Statistics. It reports OCLC online transactions by authorization number, rather than in the aggregate, facilitating authorization-specific monitoring of transactions monthly.

STUDY OCLC COSTS

You will need sufficient funding in your separate OCLC account to cover anticipated expenses. In this section are a number of tools which may be used to forecast in-house OCLC charges. It includes informal and formal methods of estimating costs; the FY97 FEDLINK OCLC Services price list (members of other networks should contact them to obtain a relevant price list), and a chart entitled "FEDLINK Technical Processing Services -- OCLC Pass Through Charges. If you don't know whether OCLC funding will be available, it's fine to submit the Intent to Use TZ Services form, but delay amending your IAG and submitting your Technical Processing Services package until you are sure your OCLC account will be adequately funded. Remember that funding is required in the month when activity occurs, which could be a subsequent fiscal year. Also remember that vendors will furnish a not-to-exceed estimate of the charges they will pass through to your OCLC account.

General OCLC cost projection formula
Your projected OCLC costs will reflect all of the following:

      OCLC   -	Credits 	+	Network	=	Total 
      Costs		                Surcharge       OCLC Costs

Forecasting method for in-house OCLC costs
You will need to think about your in-house OCLC activity during the time your vendor conducts work for you.

OCLC PRICE LIST CATEGORIES (in order of the FEDLINK OCLC FY97 price list -- Appendix C)	Online Transactions	Misc.	Telecom
Profiling	.	X	.
Access and Authorization	.	.	X
Searching	X	.	.
Cataloging	X	.	.
Credits and chargebacks	(X)	(X)	.
Tapeloading services	.	X	.
Deliverables	.	X	.
Shipping	.	X	.
Out of Warranty Rerun	.	X	.

FORMAL OCLC FORECASTING

Transactions charges This section demonstrates how to apply the General OCLC Costs Projection formula below to your in-house processing transactions.

In-house  +	Vendor's   -   Credits &	+   Network	=Total 
OCLC costs	OCLC pass	Chargebacks         Surcharge    OCLC  
		through                                          Costs  

	.93  cents	Search (.31 cents x 3 searches per hit)  	
	.41  cents	Copy cataloging charge - Prime time (1)
	.095 cents	OCLC "export" charge (1)
	__________
	$  1.44  	OTP (Online transaction processing for 
                        one record).
	==========

	OTP	  x 	Number of records	 =	OCLC
 	(above)     	to be cataloged this           processing 
                                fiscal year            costs

	OCLC	-		Total credits	   =	Actual
	processing	      	and chargebacks   	OCLC
	costs			anticipated		online
							costs

	Actual OCLC	+		Network	=	Total
	online costs			Surcharge	OCLC
	(above)						costs

Miscellaneous charges
To estimate in-house OCLC miscellaneous charges, think about the additional online and optional offline products you will obtain from OCLC this fiscal year (October 1- September 30). They may be the direct result of online processing transactions, but they are in addition to these services.

Telecommunications charges OCLC telecommunications costs can exceed 30% of your overall annual budget. If you use the FEDLINK BOAs for Technical Processing Services, your total OCLC telecommunication and access costs will depend on four variables: 1) your vendor's access and telecommunication costs passed through to your OCLC account; 2) your SPECS, which will specify the nature of work you require, and the OCLC access methods the vendor is allowed to use to meet your requirements; 3) your in-house OCLC telecommunications and access charges during the period in which the vendor is performing your other work off-site; 4) your OCLC network assessments for telecommunications.

TELECOMMUNICATIONS WORKSHEET A -- General Preparation

You will use the estimates in this worksheet to estimate in-house cataloging telecommunications costs for in-house cataloging. (Vendors will furnish not-to-exceed estimates of their OCLC pass through charges as a part of the quotation process.)

TELECOMMUNICATIONS WORKSHEET B -- Telecommunication Method

Network 	Workstation    Number of (A.1)	Cost of 		
access	 	charge	       WORKSTATIONS     ded. line

($100     +	($128	x      ___ )	=       ___ monthly

					 	________________

Dial access charge 	Number of (A.2) 	Monthly cost 
per hour	 X	CONNECT HOURS   =	of Dial Access
			per month 

$6.90		x	  ___ (A.2)		=     ___    monthly

$9.60		x	  ___ (A.2)		=     ___    monthly

$1.80		x	  ___ (A.2)		=     ___    monthly

Add $17.50/mo. if you are a full general OCLC member 
	($210/year / ca. 12 months)             =     ___     full member

Add $ 4.50/mo. if you are a selective
	member ($50/year  / ca. 12 months)     	=     ___     selective

						     ________________

						      =============

OCLC Internet 		Number of (A.2)		Cost of Internet access
surcharge per hour	CONNECT HOURS 		per month

$3.60		 x	 ___     (A.2)        	=	  ___ monthly

							  ___ monthly

							_______________

				    	 	  	=============

__________
Note: Not factored in are the Passport software, your dial-up modems if applicable, and other local Internet charges, since these costs might continue to apply to other in-house services.

TELECOMMUNICATIONS WORKSHEET C -- Break Even Analysis

OCLC telecommunications and access costs analysis FEDLINK urges OCLC members to periodically reassess their OCLC access methods to ensure the most cost effective telecommunications methods are used.

Break-Even spreadsheet for FEDLINK members Whether you connect via dial access, Internet, or dedicated line, you should revisit the FEDLINK Break Even Analysis occasionally. This analysis reflects FEDLINK's OCLC connect time costs; members of other OCLC support networks should not attempt to use this analysis, since their costs will vary with their networks:

Ded. Workstations	Hrs Dial Access	Hrs Internet
1 ($228/mo.)	33 hrs	63 hrs
2 ($356/mo.)	51 hrs, 30 min	99 hrs
3 ($484/mo.)	70 hrs	170 hrs
4 ($612/mo.)	89 hrs	134 hrs
5 ($740/mo.)	107 hrs	205 hrs, 30 min

Important Considerations This spreadsheet evaluates connect hours only, not additional equipment installation, configuration, authorization, and local Internet costs, so you should think about long-term usage, not short term fluctuations resulting from a brief outsourcing project. But it is an especially good time to review the spreadsheet, because OCLC will move all members off dedicated lines between 1996 and 1998. To encourage migration, OCLC has already dropped the deinstall charge for dedicated line removal. OCLC is encouraging members to move to one of two Internet options (dial up access via Internet Point-to-Point Protocol (PPP) or dedicated access via Internet Telecommunications Link Protocol (TLP) and future networking options). If Internet options appear more cost effective now, you should give strong consideration to moving in to Internet now.

Reading the Spreadsheet Reading the first line of the spreadsheet, note that the cost paid for one dedicated line workstation ($228) would buy 33 hours of OCLC standard dial access, but 63 hours of OCLC Internet dial access. If you presently have multiple workstations on a dedicated line, and outsourcing would result in permanent reduction of your online access time, you should think about removing a workstation and/or switching to Internet access. This decision would assume that your Internet access is reliable and that your Internet provider does not chargeback additional costs to the library. As a FEDLINK member, could you meet internal needs by converting one dedicated line workstation ($128.00/month) to OCLC Internet access for 3 hours per month ($10.80)? If so, over a year, your savings might exceed $1,000.00.

Here are some possible considerations in evaluating your OCLC connectivity:

• Switching from standard dial access to Internet OCLC access could cut your OCLC Dial Access charges by over 50%. (Conversely, if Internet provider chargebacks accrue to the library budget, your Internet access cost may actually be higher than OCLC dial access since you pay both the OCLC surcharge and the provider's charge!)

• Removing one unused dedicated line workstation will reduce dedicated line costs by $128.00 per month.

• Switching one under utilized dedicated line workstation (under 66 hours per month) from dedicated line to OCLC Internet can save the library over $1,000.00 per year, as illustrated earlier.

• When applicable, dedicated line removal also eliminates the communications controller charge at a savings of $50.00 to $60.00 per month per com controller.

• Switching to dedicated line is no longer a strategic option due OCLC's plan to move members to new Internet options.

MANAGE OCLC INVOICES

All OCLC charges accrue monthly to fiscal year work is performed
The OCLC component of your cataloging or retrospective conversion is billed to the year in which the vendor uses the OCLC system. These charges will appear in the aggregate in your OCLC invoice, not separated by authorization number or user.

First OCLC statement reflecting in-house and vendor activity
Within 80 days of your delivery order, you should receive your first OCLC statement with pass-through vendor charges.

PROJECT CLOSE-OUT

Cancel vendor's OCLC authorization and password
Even if you plan a new project, you will need to cancel your vendor's authorization upon conclusion of the project. Advise your OCLC network to "cancel your FEDLINK technical processing services vendor authorization number and password ... immediately." Otherwise, your request may be batched with other work and not processed until later in the month. FEDLINK does not charge for changes in authorization, but other networks may.

Decide to keep or cancel the OCLC Usage Statistics report
If no other outsourcing is planned, you can also cancel this report, but you probably won't want to because the report is useful for tracking your in-house online activity too. To discontinue the service, simply enter "NO" in the "OCLC STATS" field on your NAD record.