IPF Cost Transparency

IPF is committed to openness and transparency with our campus partners, including sharing what, how much and why we charge what we do. The table below provides details about each type of charge listed by IPF department, and how it is reviewed and authorized. 

All billing rates and fees are reviewed and approved by MSU's Office of Financial Analysis and Reporting (Office of the Controller). These rates and fees are based on actual costs, applied consistently and based on actual use of service. The university develops policy and guidance regarding charge and billing rates.

 

Building, Custodial, and Landscape Services

Labor Charge Rate

  • Charge: Rate calculated based on prior calendar year's payroll
  • Purpose: Recover labor costs
  • Competitive Benchmark: Previous year's rate analysis
  • Reviewed internally by: IPF Business Operations and the IPF Business Leader

Material and and Logistics Indirect Rate

  • Charge: Direct material cost +20% indirect rate; direct vendor services contracts +8% indirect rate
  • Purpose: Recover operational costs and overhead of IPF departments, such as procurement, vehicles, communications, uniforms and safety equipment
  • Competitive Benchmark: Previous year's analysis and averaged over multiple years
  • Reviewed internally by: IPF Business Operations and IPF Material and Logistics

Nursery Rate

  • Charge: Market prices
  • Purpose: Recover operational costs 
  • Competitive Benchmark: Market prices
  • Reviewed internally by:  IPF Business Operations and IPF Landscape Services

Rental Parts Rate

  • Charge: Market prices
  • Purpose: Recover operational costs and equipment replacement 
  • Competitive Benchmark: Market prices
  • Reviewed internally by: IPF Business Operations and IPF Landscape Services

Landscape Equipment Rate

  • Charge: Hourly usage rates as set by the Michigan Department of Transportation
  • Purpose: Recover operational costs and equipment replacement 
  • Competitive Benchmark: IPF charges MDOT rates
  • Reviewed internally by: IPF Business Operations and IPF Landscape Services

Capital Projects

Planning, Design and Construction Fee

  • Charges:
    • Project management charge: 5% of project budget of up to $1 million; 3.75% of project budget greater than $1 million 
    • Design charge: Actual design consultant charges will be billed to the project account. Design rates for IPF staff work will be 7% on projects requiring a design effort.
  • Purpose: Recover the cost of managing and designing capital projects.
  • Competitive Benchmark: Previous year’s analysis completed by MSU Financial Analysis
  • Reviewed internally by: IPF Business Operations, IPF Planning, Design and Construction, and the Controller's Office

PDC Labor Charge Rate

  • Charge: Calculated based on prior calendar year expenses
  • Purpose: Recover labor and supply costs
  • Competitive Benchmark: Previous year’s analysis completed by MSU Financial Analysis
  • Reviewed internally by: IPF Business Operations and IPF Planning, Design and Construction

Utilities

Utility Rate

  • Charge: Calculated based on prior fiscal year's actual costs; rates in effect for the following calendar year
  • Purpose: Recover costs of campus utility production and distribution
  • Competitive Benchmark: Previous year's analysis and rates from other in-state utilities. 
  • Reviewed by: IPF Power and Water, and Contracts and Grants for federal grant compliance. The Controller's Office reviews and approves the rates.

Surplus Store and Recycling Center

Waste Collection Fee

  • Charge: Per stop fee based on material type and volume
  • Purpose: Recover operational costs for collecting and sorting of waste and recycling; fuel; fleet, equipment and container maintenance, repair and replacement; disposal and recycling fees 
  • Competitive Benchmark: Private sector where possible and against rates from previous years
  • Reviewed internally by: IPF Business Operations and Surplus Store and Recycling Center

Store Prices

  • Charge: Market prices for used items
  • Purpose: Recover recycling and other waste diversion costs as well as no-cost item pick-up service for MSU departments. When sales revenue exceeds total costs, the difference is returned to the university. 
  • Competitive Benchmark: Market prices, such as from online auction sites 
  • Reviewed by: Surplus Store and Recycling Center

Transportation Services

Bus Service Fee

  • Charge: 8% for charters, including $35 an hour for labor
  • Purpose: Recover bus service operational costs and vehicle replacement fund 
  • Competitive Benchmark: Private sector bus compared operating in mid-Michigan
  • Reviewed internally by: IPF Business Operations and IPF Transportation Services

Motor Pool Service Fee

  • Charge: Lease rates on daily, monthly or annual basis 
  • Purpose: Recover motor pool operational costs and fleet replacement fund 
  • Competitive Benchmark: Other Big Ten institution motor pool rates and private sector rental companies based on vehicle type
  • Reviewed internally by: IPF Business Operations and IPF Transportation Services

Garage Service Fee

  • Charge: $80/$100 an hour for labor; 20% fee for batteries; 8% for subcontracted repair work; 20% for tires. Other part fees based on cost, 10%-50%.
  • Purpose: Recover garage operational costs 
  • Competitive Benchmark: Market prices, including average dealer, average independent repair facility and break-even analysis 
  • Reviewed internally by: IPF Business Operations and IPF Transportation Services