# Presentation: 132537

## 38th Argos Ops Comm MtgG-1-2. Status of U.S. Processing Agreement July 1, 2004Steve AuerU.S. JTA ROC

- (file:  ROC-OpCom04-brief.ppt)

## JTA Cost Trends (M Euro)

## U. S. JTA User Perspective

- 20% Increase in Global JTA Costs 2001-04
- Potential 49% cost increase by CY 07 if no change in tariff structure
- 10% Decrease in Non-US JTA Costs 2001-04
- Little Potential Growth Seen by CY 07 - ALL Growth is US!
- 49% Increase in US JTA Costs 2001-04 ≈ $1.3M
- Potential 73% ($3M) increase by CY 07 if no change in tariff structure
- 87% Increase in NOAA JTA Costs 2001-04 ≈ $1M
- Office of Climate Obs 44% Increase in 2004 Alone
- ARGO 166% Increase in 2004 Alone
- Potential 100% ($2M) NOAA Increase by CY 07 if no change in tariff structure
- Cost Growth Burden and Impact on US and Predominantly on NOAA!

## Gov’t/Business Buy Concepts

- Typical Transaction:  Service Provider Gives Detailed Cost Proposal to Customer’s SOW. If Commercial Users get this, why Not JTA?
- What do we need?
- What can you offer with cost detail?
- What can we afford?
- Public Utility RATE Hike Proposal (CLS Cost Analysis) Must be Approved by Public Review Board (Ops Comm) with Access to _detailed_ & _audited_ Financial and Operational Information (Missing) -- Not ‘Fait a Compli’!

## Data Processing Examples

- Internet Service Provider (dataspeed & cost)
- 20 KB/s - $20/mo (1990)
- 1.5MB/s - $40/mo (today)
- Should you now pay $1500/mo per use increase?
- Personal Computer (RAM & cost)
- IBM PC - 8 KB - $2,000 (1980)
- Dell PC - 4GB - $800 (today)
- Sould you now pay IBM $1M for more processing?

## Global JTA ‘Bible of Principals’

- ‘Debt’ has been repaid
- JTA expects Costs to Decrease in proportion to Use Increase (more use for same total price)
- JTA expects Cost Share to Decrease with Non-JTA use growth (lower total price)
- JTA Rate is Proclaimed Preferential, Non-Profit, while Non-JTA is significantly higher.  If true, then JTA Cost Share should decrease at faster rate than non-JTA use increase

## U. S. JTA User Concerns

- No Proposed “Options” for Cost/Service Reduction
- Increase Scope/Growth  of U.S. Gov’t Projects at Level Funding
- Anticipated Loss of  “Preferential” Tariff / Bonus
- “Fair” Cost Accounting for JTA Services- Past Due 2/04?
- User “Buy-in” via JTA Working Group essential
- Account for infrastructure “REQUIRED”, i.e., Zero Base Budget to provide JTA Services
- Cost Analysis must have Supporting Detail
- CLS/SAI Staffing and Infrastructure Essentially Unchanged
- Big Non-JTA Use Increase in recent years
- JTA Paid Investments into System should be reimbursed by Non-JTA users; i.e., pay back their portion of Investment for LUTs, Oracle (Argos 2001), etc.

## JTA User Cost Options

- Level Funding for Future Use - Costs Must be Below CY 2003
- Future Expansion at no additional cost unless additional resources, personnel and/or facilities are identified by CLS and agreed to in advance by the JTA
- Eliminate Low Priority Argos Services / Expenses
- “Trimming Fat” likely to have little/no impact on JTA programs
- Impacts to NOAA If JTA User Growth Not Accommodated
- Reduce IOOS Instrument Deployments - likely this year!
- Unable to meet PPBES Official Performance Milestones
- NOAA Climate Services adversely impacted
- Global IOOS capabilities adversely impacted
- International Partners adversely impacted

## US JTA NEW Tariff Needs

- “Fair” Cost for Essential JTA Services ONLY as Specifically Requested at JTA Mtg - Ignored so Far!
- JTA Cost to Decrease as Non-JTA Use Increases
- US Future Payments < CY 2003
- New Tariff Structure
- Simple, Pay-As-You-Go Tariff
- Rate set at Less Than Current US Bonus Rate
- Bulk Rate for NOAA
- SAI Invoice/Collect all Non-NOAA Users
- NOAA has borne this Admin O/H Burden for 25 years
- End NOAA Guarantee on Collection

## Questions on New Tariff WG

- Why is Initial Cost Analysis Deliverable so _far_ behind schedule (Feb/March) - 3 mo?
- Why has Process not been followed?
- NO ‘REAL’ USER REQUIREMENTS
- NO COST DETAILS -- ABSOLTUELY NONE!  JUST A NUMBER! [JTA staff, equip, etc.]
- US ROC (75% of usership & member of New Tariff WG) hasn’t seen Cost Analysis - Why?
- When will WG gather to deliberate and perhaps revise Cost Proposal - scheduled for May/June?
- How can Ops Comm Approve This without User ‘buy in’ by full WG?