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.

Fixed Fees

Overview: One state paid NIC a fixed monthly fee to deliver application development and Web design services for its official state Web site. The state also leveraged NIC's dedicated staff to provide Web sites and online services to city and local governments. In 2003, this state transitioned to a transaction-based self-funded solution and also hires NIC for specific time & materials projects through its master contract.