RDS Instructions
In-plants that provide printing services to other state agencies must annually establish an hourly rate for each piece of printing equipment operated to ensure that the printing operation is adequately recovering its costs. The Rates Development Spreadsheet (RDS) is a fiscal analysis tool designed to assist in-plants in developing cost recovery rates for their operation.
Equipment rates effectively allocate the total operating cost of the printing operation by the hours each piece of equipment is operated. The RDS allows the agency to calculate rates for up to 12 pieces of equipment, with an emphasis on printing and press equipment. If the agency needs to establish rates for additional equipment, the agency should request an expanded RDS from the Statewide In-Plant Operations Manager at inplantopsmanager@dgs.ca.gov.
In-plants which operate more than one location should follow their agency’s budgeting practices in determining whether to complete a separate RDS for each location.
In-plants that are not providing printing services to other state agencies are not required to establish rates.
The RDS is comprised of the following sections:
1. Equipment Rate
a. Agency Name: Enter the name of the department which operates the in-plant;
b. Locations: Identify each location which will be included by this RDS. In-plants should follow their agency’s budgeting practices to determine whether multiple locations should be included on one RDS or if a separate RDS is required for each location.
c. Rate Table: The rate table summarizes the in-plant’s expenses and outputs and automatically calculates the hourly rate for each piece of equipment the in-plant includes on the RDS. All fields in the table are populated automatically as the agency completes each section of the RDS.
The agency may not modify this table.
2. Certification
The agency’s Deputy Administrative Director must certify that the information contained within the RDS is true and correct. The Certification section is located on the Equipment Rate tab. The Deputy Administrative Director should select the certification button and complete the electronic signature. The Deputy Administrative Director must electronically submit the certified RDS to inplantopsmanager@dgs.ca.gov. RDS worksheets submitted by other personnel will not be accepted.
3. Equipment Information
This section details the equipment operated by the agency’s in-plant.
a. Equipment Description (Make/Model): The agency should identify each piece of equipment by make and model.
b. Equipment Type: The agency should identify the type of equipment (e.g. offset press, digital press, bindery, etc.) for each piece of equipment.
c. Purchase Price: The agency should list the original purchase price for each piece of equipment.
d. Month/Year Acquired: The agency should list the date (by month and year) in which each piece of equipment was acquired.
e. Click Charges: “Click charges” are a cost per print surcharge included with most print service contracts. Click charges are required for digital press equipment, but not for offset press or bindery. The agency should provide the annual cost of click charges for each piece of printing equipment.
f. Cost of Service Contract: The cost and terms of a service contract may vary considerably by manufacturer. The agency should provide the annual service contract cost for each piece of printing equipment. The worksheet will automatically calculate the total service contract and warranty costs on the Rate Table.
g. Warranty Expense per Year: The agency should provide the annual warranty expense for each piece of printing equipment. If there is no warranty on a piece of equipment, the agency should enter “0” in the appropriate field. The worksheet will automatically calculate the total service contract and warranty costs on the Rate Table.
h. Depreciation per Year: Pursuant to SAM Section 2876(C), the equipment’s depreciation schedule is determined by the cost of the equipment before sales tax. The agency should enter the depreciation period in years pursuant to the following schedule:
Standard: $50,000 – $1,999,999: Five-year depreciation period
Industrial: $2,000,000 – $4,999,999: Seven-year depreciation period
Large Industrial: Greater than $5,000,000: Ten-year depreciation period
The agency should enter the annual depreciation expense for the appropriate pieces of printing equipment. If a piece of equipment is fully depreciated, the agency should enter “0” in the appropriate field.
i. Remaining Depreciation Total: The agency should identify the total remaining amount of depreciation for the appropriate pieces of printing equipment. If a piece of equipment is fully depreciated, the agency should enter “0” in the appropriate field.
j. Remaining Depreciation Years: The agency should identify the number of years remaining to fully depreciate the appropriate pieces of printing equipment. If a piece of equipment is already fully depreciated, the agency should enter “0” in the appropriate field.
k. Operating Speed: The agency should identify the speed at which each piece of equipment is operated. The agency should use the unit of measure appropriate to the type of equipment (e.g. feet per minute, impressions per hour, etc.).
l. Number of Shifts per Day: The agency should identify the number of shifts per day (1, 2, or 3) in which each piece of equipment is operated per day.
m. Number of Personnel per Shift: The agency should identify the number of personnel assigned to each piece of equipment per shift.
n. Equipment Output Hours per Year: The agency should identify the annual number of output hours for each piece of equipment during this fiscal year. This number should be based on the actual output hours of the equipment in prior years and any anticipated new print work.
The state “standard of 1500 hours” refers to the threshold for continuous (“non-stop”) operation during a standard eight-hour shift.
The annual output hours for each piece of equipment should be supported by the production records kept pursuant to SAM Section 2877.
o. Operation Total Column: This column calculates the sum of each value for those fields where the cumulative value is relevant. Not all fields will generate an Operation Total in this column.
4. Personal Services Expenses
a. Benefits Percentage: “Benefits percentage” refers to the percentage of an employee’s salary that is budgeted for the cost of the employee’s benefits. (For example, OSP budgets benefits at approximately 60% of the employee’s salary.) The agency should enter the benefits percentage consistent with the agency’s budgeting practices at the top of the Day Shift personnel chart, which will automatically populate the benefits percentage throughout the worksheet.
b. Personal Services Chart: The RDS includes a personnel chart for day, swing, and night shifts, with the corresponding shift differential included in each respective chart. All management, production, and support staff affiliated with the printing operation should be included on the chart for the appropriate shift; the agency should select the number of personnel from the appropriate classification(s). The agency should complete a chart for each shift it operates a piece of printing equipment. The worksheet will automatically populate the annual salary (at the top of the classification range), shift differential (if applicable), total salary (with differential), benefits, and total salary with benefits for each selection.
c. Equipment/Shift Summary Table: The worksheet will automatically calculate the number of positions, salary expenses, benefits expenses, and annual personal services cost for each shift.
5. Annual Overhead Expenses
“Overhead” refers to the mandatory costs (also referred to as “indirect costs”) paid by each state agency (see SAM Section 8752.1). The agency must identify the percentage of overhead costs attributed to its printing operation – for the purposes of the RDS, it may not distribute this expense through the overall agency. The agency may identify the share of overhead attributed to the printing operation by the method of its choosing, but must include an explanation of its methodology with the RDS. The worksheet will automatically calculate the total overhead expenses based on the following categories of expenses:
a. Statewide Pro-Rata: Statewide central administrative costs;
b. Departmental Overhead: Administrative costs by agency;
c. Program Overhead: Administrative costs by program/division, which oversees the printing operation; and
d. FI$Cal: Administrative costs for use of FI$Cal
e. Other Overhead Funds: Additional overhead expenditures paid by the agency (and attributable to the printing operation) that are not otherwise itemized (e.g. 21st Century).
6. Annual Operating Expenses
The agency should detail the annual operational expenses attributed to the printing operation. The worksheet will automatically calculate the total annual operating expenses based on the total costs detailed.
a. General Expenses: The costs incurred through regular printing operation activity. For those costs shared throughout the agency, the agency must attribute a fair share percentage of those expenditures to the printing operation. The agency should identify the source(s) of each expense and the methodology used for determining the proportion attributed to the printing operation in supporting documentation. The agency should enter "0" if itemized cost is included in a separate expenditure or not applicable to the operation and include an explanation in the comments box. The worksheet will automatically calculate the total general expenses based on the following categories of expenses:
a. Communications: Communications equipment and services – such as desk phones, cell phones, fax equipment;
b. Contracts: Contracts for any (non-personal) services used to support the printing operations;
c. General Operations: General operating expenses;
d. Insurance: Cost of any insurance services which benefit the printing operation (in whole or in part);
e. Non-Printing Supplies: Operational supplies not directly attributable to print production (e.g. pens, staplers, cleaning supplies);
f. Professional Services: Contracts for any personal services used to support the printing operations (e.g. consultants);
g. Security: Independent security costs or fair share of building security costs;
h. Service and Warranty Expenses: Service contract and warranty costs used to support the printing operation;
i. Training: Cost to train printing operation employees;
j. Transportation: Travel and transportation expenses for printing operation personnel or management; and
k. Other Expenses: Any other general operation budgetary items not otherwise itemized.
b. Space Utilization Expenses: The agency should detail total space utilization costs for the in-plant and the total square footage allocated. If the in-plant is housed inside of a larger facility, the agency should utilize a formula (by square footage or comparable means) for determining the cost attributable to the in-plant operation.
c. Total Utility Expenses: The agency should detail the estimated annual utility cost of electric, gas, and water for the printing operation at the appropriate location. The agency should enter “0” for any utility not used. The worksheet will automatically calculate the total utility cost.
d. Total Consumables: The agency should detail the cost of consumables, the materials necessary for the printing operation (such as blankets, ink, cleaners). Consumables are distinct from costs of goods sold, which are materials used for the completion of a specific print job (such as paper). The worksheet will automatically calculate the total consumables expenses from the following categories of expenses:
i. Blankets
ii. Ink
iii. Machine Cleaning Supplies
iv. Plates
v. Rollers
vi. Solvent
vii. Other Consumables
e. Hardware Expenses: The agency should detail the estimated annual cost of the external hardware necessary to support the printing operation. If no additional hardware is used by the in-plant, the agency should enter “0” for the hardware expense.
f. Software Expenses: The agency should detail the estimated annual cost of the software necessary to support the printing operation. This amount should include the annual cost of any supporting licenses.
g. Technical Support Expenses: The agency should detail the estimated annual cost of technical support personnel and/or services.
h. Miscellaneous Expenses: The agency should detail any other operating costs which are not otherwise included on the RDS. The agency should enter a “0” if there are no additional expenses.
Please contact the Statewide In-Plant Operations Manager at inplantopsmanager@dgs.ca.gov with any questions with regard to completing this document.