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Approved FY 20 rates are available for review

To all AITRs and agency finance staff:


Approved FY20 rates are available for review; support available for agencies  

VITA has shifted to a new multisupplier information technology (IT) infrastructure services model, and on July 1, we will transition our pricing structure to better support that new model in fiscal year 2020. You will notice many differences between the chargeback rates for FY19 and FY20. We are introducing a new pricing structure that provides agencies with transparency and a view into costs. Additionally, our new model allows you to choose the service level that best meets your business needs. 

The FY20 IT services rates are generally lower due to reduced supplier run rates. However, as part of our repayment of a line of credit, agencies will see a one-time chargeback to recover expenses associated with the disentanglement from Northrop Grumman. A link to the FY20 rates is provided below, and the VITA service catalog will be updated to reflect the new FY20 rates and services on June 1, in a read-only version.

The new rate structure is more detailed to provide transparency, flexibility and choice to our customers. The increase in the granularity and in the quantity of service rates was in direct response to customer demands during the sourcing process. Because of the significant changes, we want to make sure you have the information you need to order and pay for services in FY20, and we are offering the following support:

·         May 8 – Agency information technology resources (AITR) meeting, 9 a.m. – noon at the Commonwealth Enterprise Solutions Center (CESC) will feature an in-depth presentation on the new VITA rate structure

·         May 8 – VITA services fair, 12:30 – 3 p.m. will provide information regarding VITA’s services available in FY20. Service owners and suppliers will answer questions. VITA finance staff will be available to address specific rate questions.

·         Customer account managers (CAMs) are available to attend meetings to review the new VITA rate structure and individual agency impacts beginning May 8.

·         For questions about the rates, please contact Tom Nikles.

·         View FY20 service and labor rates and other materials

VITA worked closely with the Department of Planning and Budget (DPB) to update the FY19 and FY20 budget based on VITA's forecast of FY20 IT usage and the aforementioned rate structure. The general fund share of each agency’s increase or decrease in funding, as a result of the new rates and/or change in usage, has been budgeted in central appropriations and will be allocated to agencies by DPB during budget execution. Please contact your DPB analyst with questions regarding changes implemented in your individual agency budgets.


VITA has not changed its pricing structure since 2010 and this change is necessary to properly recover IT costs under the new multisupplier services model. We appreciate your patience as we work with each agency to help you understand how this new model impacts your IT costs and services. We look forward to providing an increased level of transparency into rates that will help drive predictability for future budget planning.