Questions to Consider

Determine whether a new center is justified

Is the demand for the proposed services sustainable and ongoing?
- If the services are only needed on an intermittent basis, a new center might not be justified.
How long do you expect the products/services to be in demand?
- If the services are only going to be in demand for a short time (due to technological changes, etc.) a new center might not be justified.
How will the proposed center cover costs until the proposed level of activity is reached?
- It is important the new center have a clear financial plan.
Are there others providing the same or similar service, either internally or externally to the UW?
- The number of service providers and the rates charged may affect the need for another provider.

Determine how the rates are going to be calculated

What are the goods/services being provided?
Who will be the primary users of the goods/services?
- Campus - Federal or Non-federal
- Public community
What portion of income will be from federal grants and contracts?
How many services will be offered?
Can goods/services with common customers and similar costs be combined into one rate?
How will the service be charged? For example, per hour, per item, etc.
Will equipment costing more than $5,000 be used in the recharge center?
When will the center begin charging for providing goods/services?
Will any costs to provide the goods/service be paid from departmental funds?
Will the department provide resources as the center gets up and running and how much?

Process

Determine whether the activity will be classified as a transfer or a sale.
Prepare a rate proposal.
Obtain Dean or VP office and MAA approval for the rates. These can be obtained concurrently.
Once the proposal has been approved, request a Cost Center though your Shared Environment. MAA will approve the new Cost Center to be added to the Service and Recharge Alternate Cost Center Hierarchy.