05.APPENDIX_E_Cost_Analysis.docx

Appendix E:

Cost Analysis for Data Center Proposal

All respondents must provide a comprehensive cost analysis using the structure outlined in this appendix (Appendix E: Cost Analysis for Data Center Proposal). While respondents are encouraged to include supplemental cost-structure documentation, a fully completed Appendix E is required for a proposal to be considered for the awarded contract.

Any vendor‑specific or otherwise unlisted cost elements not included in this form must be clearly identified within the section to which the cost most closely aligns.

Any lack of transparency or misrepresentation of costs may result in the disqualification of the vendor’s proposal.

1. Staffing and Professional Services Vendors should list all labor resources required to support the proposed data center services, including onboarding, migration, configuration, testing, ongoing support, and optional smart-hands rates.

Instructions to Vendor: Include all roles necessary for the proposed scope of work. Add rows as needed.

Total Staffing Cost:

2. Travel and Expenses (If Applicable) Travel should be included only if the vendor anticipates onsite work such as discovery, design sessions, migrations, or troubleshooting. The State requests that vendor staff accept South Dakota State per diem rates.

2.1 Travel Costs

2.2 Lodging & Per Diem

Total Travel & Expense Cost:

3. Infrastructure, Licensing, and Recurring Service Costs This section must provide a complete and clearly itemized breakdown of all costs associated with hosting, maintaining, and supporting the systems and monitoring services delivered within the data center environment. Vendors must present costs in a structured and transparent manner so the State can fully understand both the one‑time and ongoing financial commitments tied to the proposed solution.

For all costs, please provide a detailed breakdown.

3.1 One-Time Costs

These may include setup fees, provisioning, hardware (if dedicated equipment is required), or initial licensing.

Setup / Provisioning Fees

Hardware (if applicable)

Implementation / Migration Services

Deprovisioning

Other (Specify)

Total One-Time Cost:

3.2 Recurring Costs

Vendors should provide a three-year operating cost view. Please indicate each item’s typical billing cycle (Monthly, Quarterly, Yearly, Ad Hoc, etc.).

Data Center Hosting / Colocation Fees

Network Colocation Fees

Cabling Fees

Physical Security Services (ex. access badges, additional cameras, parking permits, etc.)

Power Usage (if applicable)

Other Recurring Costs

Total Recurring Cost (Years 1-3):

4. Additional Work or Optional Services Vendors may list optional services, upgrades, or additional work that the State may choose to procure but is not included in the base proposal.

Please supply a service catalog for additional services available.

Examples:

· Additional security hardening

· Rapid provisioning or accelerated migration services

· Extended support hours

· Enhanced DR or high availability packages

Power (additional/modification to base costs)

Cooling (additional/modification to base costs)

Optional Service Rates (Compute, Storage, etc.)

Disaster Recovery Location Services

Smart Hand Fees

Other

5. Summary Cost Table A consolidated view of total proposed costs.

5.1 Base Cost Table

Staffing

Travel & Expenses

One-Time Infrastructure

Recurring Annual Costs (Total of Years 1–3)

Grand Total (3-Year Projection)