- MNIT identifies the devices eligible for replacement.
- Before the end of the fiscal year, the Enterprise Desktop Support team will review the desktops and laptops billed at each agency to identify the devices due for replacement this year.
- The age of the device is based on its purchase date. Desktop useful life is defined as five years; laptops are five years (for devices purchased beginning in FY23).
- The agency evaluates their business needs and can make changes.
- MNIT presents each agency business with a list of the devices that are due for replacement.
- The business may use this opportunity to change the mix of devices in their environment. By evaluating needs and determining appropriate devices for each user, they can help manage costs, since the monthly billing rates for laptops and desktops are significantly different.
- MNIT informs agencies if costs will change.
- Equipment replacement is included in the monthly rates so there will be no additional hardware cost to the business if they choose a standard desktop or laptop.
- Replacing a standard laptop with a high-end laptop for a particular user will incur a one-time upgrade charge (see details in Upgrade Options above) but the monthly laptop rate would remain unchanged.
- Replacing a laptop with a new desktop will decrease the monthly rate. Conversely, replacing a desktop with a new laptop will increase the monthly rate.
- MNIT coordinates with the agency to schedule replacements.
- Some businesses may need to avoid equipment replacements at certain times during the year to limit disruption to their staff. For example, MNsure prefers discretionary work not occur during Open Enrollment.
- MNIT will work with the business to identify the optimal replacement window and try to accommodate those schedules whenever possible.
Replacement Ahead of Schedule
The replacement cost of devices is included in the monthly rate an agency is charged over the useful life of a device. An agency that wants to replace a device ahead of the normal replacement schedule must “buy out” the remaining cost of the device.
How the cost is calculated
Monthly bundle rates include the cost of a device replacement, split across the standard useful life of a device. For early buyout, the monthly hardware cost is multiplied by the number of months until the device’s regularly scheduled replacement date. The buy-out cost includes the remaining monthly cost and a professional services charge:
- The monthly desktop rate includes a hardware cost of $770 spread over 5 years, or $12.84 per month.
- The monthly laptop rate includes a hardware cost of $1100 spread over 5 years (devices purchased in FY23 and going forward), or $18.34 per month.
- To cover the administrative costs associated with replacing a device outside of an agency’s annual refresh, two hours of professional services are added to the total cost. The hourly rate for “926-Workstation –Prof Svcs – Basic” is $125.20.
Examples of buy-out cost calculations for a desktop and laptop computer are shown below.
Desktop example
An agency replaces a desktop computer after four years, 12 months before the end of its five-year useful life. The new computer is an enterprise standard desktop, so an upgrade charge is not applicable.
- Monthly cost of desktop hardware: $12.84 ($770 / 60 months).
- Number of months remaining: 60 – 48 = 12 months.
- Buyout cost: 12 months x $12.84 +(2 x $125.20) = $404.48.
- If this is a CPRS purchase, tax is applied automatically. If this is a Service Authorization, 9.875% tax is applied to the buy-out cost. $404.48X 1.09875= $444.42.
- Apply charge to Product Code 8EL3R.
- After replacement, the monthly desktop rate for the replacement device stays the same.
Laptop example
An agency replaces a laptop computer after four years, 12 months before the end of its five-year useful life. The new computer is an enterprise standard laptop, so an upgrade charge is not applicable.
- Monthly cost of laptop hardware: $18.34 ($1100/ 60 months).
- Number of months remaining: 60 – 48 = 12 months.
- Buyout cost: 12 months x $18.34 + (2 x $125.20) = $470.48.
- Tax is automatically applied to CPRS purchases. If using a Service Authorization, 9.875% tax is applied to the buy-out cost. $470.48 x 1.09875 = $518.94.
- Apply charge to Product Code 8EL3R.
- After replacement, the monthly laptop rate for the replacement device stays the same.
Replacement of Lost/Stolen or Damaged Devices
MNIT self-insures equipment and will replace lost/stolen or damaged equipment when notified. Repeated issues with the same users will be reviewed and the agency could be billed for the lost/stolen or damaged devices.
- The agency is responsible to order and manage the following peripheral items (not included in this service), if the user requires them:
- All external monitors
- Headsets
- Webcams
- Local printers
- Non-standard keyboard and mouse (ergonomic or wireless)
- Programmable keyboard
- Supporting workstations that are not procured/supported through the Desktop and Laptop Bundle service.
- Requesting support for diagnosing and repairing workstation issues.
- Securing the device and exercising reasonable care in the use of the device.
- Reporting lost, stolen, or damaged devices.
- Custodial responsibility for desktop/laptop devices, including documenting and reporting the location of devices, tracking assignment of devices to users and shared spaces such as conference rooms, and tracking and reporting to MNIT any changes to those assignments.
- Reporting to MNIT the assignment and locations of devices on a biannual basis through the IT Asset Verification (ITAV) process.