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Proposed MTG contract and budget revision

From: John Greacen
To: [email protected]
Date: Tue, 27 Sep 2005 21:46:00 -0000

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Subject: Proposed MTG contract and budget revision

From: "John M. Greacen" <[email protected]>
To: <[email protected]>
Date: Tue, 27 Sep 2005 15:44:56 -0600

Colleagues – I alerted you some time ago to the problems with our consultant contract with eCorridor and the decision of the leadership of the ECFTC to pursue a contract with MTG to complete the work on ECF 3.0.

I attach a proposed contract with MTG and a proposed workplan. The workplan has been vetted by , and me. The amount of the contract has been reduced by about one third from MTG’s original estimate due to agreements by Tom, Scott and me to assume additional assignments from the remaining tasks.

The MTG contract is for time and materials not to exceed $29,980. This will bring us to a total of almost $75,000 spent on the development of ECF 3.0.

Entering into this contract is essential to completion of ECF 3.0 as promised to the COSCA/NACM Joint Technology Committee. Eric Tingom is not available to do additional work on ECF 3.0 until the beginning of November. In our view, the quality of his work is not adequate to the task anyway. Much of the MTG workplan is devoted to rewriting materials he drafted for the TC. Also, in our view, no other individual or organization is available to perform this work; no one else has the technical expertise, familiarity with ECF 3.0 and time available to devote to the effort.

If we do not meet the current delivery deadline for the Joint Tech Committee, we will lose our credibility with that committee and the ECFTC should disband because it cannot be effective without that credibility.

I set out below the financial implications of entering into this contract. It will require an increase of almost $29,000 to this year’s Member Section budget. Luckily, we will have that much money by the time we need it, and will be able to end the year with roughly $10,000 in our OASIS account. But, we will not be able to support any other LegalXML Member Section activities for the remainder of the year and our activities for 2006 will have to be substantially curtailed.

John Messing asked me to provide information on five questions. They are:

1. The amount spent to date on ECF 3.0 -- $44,245.97 (This amount includes what we have already paid eCorridor, the amount of the current invoice for $1,500 for ’s time, and 135 hours of Eric Tingom’s time that has not yet been billed to OASIS.)

2. Status of eCorrdior employment – and I have asked OASIS to terminate the eCorridor contract at the end of the next quarter; the contract allows OASIS to end the relationship at the end of any quarter.

3. eCorridor compensation rate -- $75/hour

3. Proposed MTG compensation rate – rates vary from $125 to $225/hour. MTG has a clause in many of its contracts guaranteeing that the rates charged are no more than the rates charged to any other customer; consequently, its billing rates are not negotiable.

4. Proposed spending caps if any on MTG compensation – compensation is not to exceed $29,980.

5. MTG compensation to date on EF 3.0 – MTG has not been compensated for any of its prior contributions to ECF 3.0. MTG did work on the domain modeling process with the expectation that it would be reimbursed through the eCorridor contract. That proved impossible because of the daily rate discrepancies and MTG agreed to “eat” those contributions.

Here is our original 2005 budget:

LegalXML Member Section

Original Spending Plan

Calendar Year 2005

Category	First quarter	Second quarter	Third quarter	Fourth quarter	Annual total
Meeting expenses for the Steering Committee		$4,000		$3,000	$7,000
Meeting expenses for Member Section Technical Committees	$4,500	$4,500	$4,500	$4,500	$18,000
Services of specification drafter/consultant	$10,000	$10,000	$10,000	$10,000	$40,000
Conference call service	$600	$600	$600	$600	$2,400
Total	$15,100	$19,100	$15,100	$18,100	$67,400

Here is our current financial status and the budget changes needed to fund the MTG contract. The table shows the amounts still owing to eCorridor, based on an email from Eric Tingom to me today. I believe that OASIS will credit our account for the $585 shown as spent on the old conference calling contract that we did not incur. We cannot predict the amount of bad debt charges that will accrue to us during the remainder of the year; the amount shown is the amount as of the end of August.

Current Budget Status and Proposed Budget Changes

Category	Annual Budget	Actual Expenditures through August	Additional Accrued Expenditures	Proposed Additional Expenditures	Difference	Revised Budget
Meeting expenses for the Steering Committee	$7000.00	$8,022.25		0	+$1,022.25	8,022.25
Meeting expenses for Member Section Technical Committees	18,000.00	4824.57		0	-13,175.43	4824.57
Services of specification drafter/consultant	40,000.00	32,620.97	11,625	29,980	+34,225.97	74,225.97
Conference call service	2,400.00	1,560	(585)	0	-1,425	975
Bad debt		2,145		0	+2,145	2,185
Total	67,400.00	54,969.45	11,040	29,980	+28,589.45	95,989.45

Revenue Projections and Balance for 2006

Beginning balance 2005 $62,575.70

Projected year end balance as of 8/31/05 50,960.36

Current balance $34,047.93

Deferred revenue 16,912.43

Additional expenditures per proposed budget 41,020

Projected beginning balance 2006 9,940.36

Projected 2006 revenue 20,000

Funds available for 2006 29,940.36

Please let me know if you need any additional information prior to our conference call tomorrow.

John M. Greacen

Greacen Associates, LLC

HCR

505-289-2164

505-289-2163 (fax)

505-780-1450 (cell)

[email protected]

OASIS-MTGMCr-Consultant-Contract-051001 rev4.doc

ECF3 Workplan rev3 final.pdf