A Service Center must be set up when one department wishes to sell goods or services to other University departments. If a department wishes to sell goods or services to individuals or entities outside the university, then it must become an external sales unit.

Relevant policies and descriptions
Policy Description
UTDBP3033: Internal Service Providers This policy explains requirements and responsibilities regarding internal service providers.

Internal Service Providers

 An Internal Service Provider (ISP) is an organizational unit established to offer goods and services to University of Texas at Dallas (University) customers at a lower cost compared to external competitors. These centers operate on a cost-recovery basis, ensuring that the pricing of services is determined solely by the expenses incurred in providing them. The revenue generated is strictly used to recover these costs, with no profit margin included. ISPs are expected to provide goods or services that are distinctive, accessible, or not easily obtainable from outside sources. 

Objectives

  • Cost Efficiency: Deliver services at a lower cost compared to external providers.
  • Cost-Based Pricing: Pricing is based solely on the actual expenses incurred.
  • Cost Recovery: Revenue generated is used only to recover costs, with no profit margin.

Services Offered

Our Internal Service Centers offer a wide range of services to support the university’s academic and research missions. These services include, but are not limited to:

  • Laboratory and research support
  • IT and technical services
  • Printing and copying services
  • Equipment maintenance and repair
  • Administrative support

Pricing Structure

The pricing for services provided by our Internal Service Centers is determined based on the actual costs incurred. This includes:

  • Direct Costs: Salaries, wages, and benefits of staff directly involved in providing the service, materials, and supplies.
  • Indirect Costs: Administrative overhead, equipment depreciation, and other related expenses.

Compliance and Regulations

Our Internal Service Centers comply with federal regulations and university policies to ensure transparency and accountability. Key compliance aspects include:

  • Uniform Guidance: Adherence to the U.S. Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200).
  • Non-Competition: Services are provided without competing with private enterprises that do not benefit from tax-exempt status.
  • Financial Oversight: Regular reviews and audits to ensure compliance with cost principles and financial management standards.

Benefits of Using Internal Service Centers

  • Cost Savings: Lower costs compared to external providers.
  • Quality Assurance: High-quality services tailored to the specific needs of university departments.
  • Convenience: Easy access to essential services within the university.

Guide to Requesting a New Internal Service Center

To request a new internal service center, please follow the steps outlined below:

  1. Submit a Rate Study in PeopleSoft
    • Navigate to the ‘Service Center’ tile on the Gemini for Departments homepage. Alternatively, the path is listed below:
      • Billing Custom > Service Centers > Service Center Rate Study.
    • Under ‘Add new value’, select ‘New Service Center’ under the request type.
  2. Required Documents
    • Internal Sales Request Form
    • Completed Service Center Request Memo: This memo should provide extensive detail on the new service center, including:
      • A description of services
      • How it benefits the university
      • Potential customers
      • Budget/charge-out rates
  3. Review and Approval Process
    • Once our office receives the completed service center request, we will review them and determine approval.
    • Upon approval, our office will submit a cost center request form and work with the department to ensure proper setup.

Video Tutorials

Required Attachments

Service Center Procedure