Subsidies, Transaction-Based Self-Funding, Time & Materials
NIC has developed additional funding approaches to meet the unique financial requirements of our government partners:
Overview: One state's original contract with NIC included a $1 million upfront subsidy to cover the costs of hardware, software, and other infrastructure during the portal build-out. Once the portal was operational, NIC built services on a time & materials basis and also received transaction-based revenues from select approved business-to-government services. In 2004, this state transitioned to a transaction-based self-funded solution and also continues to hire NIC for time & materials projects through its master contract.
Fixed Fee, Transaction-Based Funding, and Time & Materials
Overview: Two states have signed fixed fee, time & materials, and transaction-based self-funding contracts with NIC. These agreements include a baseline fixed fee that covers a core dedicated staff to deliver a range of services, including application development, project management, Web design, customer help desk support, and hosting & infrastructure. Additional requests outside of the baseline agreement or beyond the core staffing level are billed on an hourly or per-project rate.