DW/DSS RFP Attachment 1 Version 2.0 Revised 3/23/2011

ATTACHMENT I - Cost Summary Bid Sheet Phase One: DDI Cost

Item Cost Totals

Total DDI Costs (see Table 4.1.17: DDI Payment Allocation Table)

Phase Two: Operations Cost

Item Cost Totals

Year One Flat Administrative Fee

Year Two Flat Administrative Fee

Year Three Flat Administrative Fee

Year Four Flat Administrative Fee

Year Five Flat Administrative Fee

Year Six Flat Administrative Fee

Year Seven Flat Administrative Fee

Year Eight Flat Administrative Fee

Total Operations Costs

All Inclusive Hourly Rate

Period Hourly Rate Totals

Year One Cost (Rate X 8,000 hours)

Year Two Cost (Rate X 8,000 hours)

Year Three Cost (Rate X 8,000 hours)

Year Four Cost (Rate X 8,000 hours)

Supplemental Year One Cost (Rate X 8,000 hrs)

Supplemental Year Two Cost (Rate X 8,000 hrs)

Supplemental Year Three Cost (Rate X 8,000 hrs)

Supplemental Year Four Cost (Rate X 8,000 hrs)

$11,532,219

$2,702,351

$2,302,814

$2,331,751

$2,431,456

$0

$2,495,728

$2,526,328

$2,556,065

$17,346,494

$108.00

$864,000

$864,000

$864,000

$864,000

$864,000

$864,000

$864,000

$108.00

$108.00

$108.00

$108.00

$108.00

$108.00

$0$0.00

West Virginia RFP MED11015 Bureau for Medical Services Data Warehouse/Decision Support System Procurement

Page 15-3

RESPONSE TO DESCRIPTION OF PRICING MODEL FOR ADDITIONAL LICENSES OR USER SEATS UNDER SECTION 3.1.8 AND 3.2.2

Ingenix’s approach to pricing is based on providing the most cost effective solution that best meets the business objectives of BMS. The determination of pricing for the additional licenses or user seats is based on a number of factors. These factors include items such as the following:

� Number of licenses required and category of usage (i.e., concurrent, total) � Anticipated future growth by time period � User Type (e.g., Power, Casual, etc.) � Functionality required by each user (e.g., ad hoc query, pre-defined query/reports only,

SURS, MARS, predictive modeling, etc.)

The pricing that we have provided in the Additional Licenses table is for the addition of users who would access the DW/DSS, MARS, SURS and/or ImpactPro components of the solution. This price is limited to the addition of users that fall within the annual 10% growth rate of total and concurrent users as defined in the RFP.

Please note that the above pricing limit is not intended to establish any limit as to the potential expansion of the solution as we have architected the solution to allow significant expandability of every element of the solution.

We have sized the initial hardware, software, and hosting environment based on the requirements and projected growth rate as defined in the RFP (e.g., 10% per year). Any significant deviation from that growth path may result in the need for additional equipment, software, hosting facilities, help desk staff, and/or a number of other key pricing elements. Our pricing model is built up of many different elements and each has its own pricing component. This results in a significant number of permutations that makes pricing difficult, but that allows us to focus our solution pricing on providing the most effective solution at the most effective price, rather than providing a single price that may limit your growth, as that pricing may include elements that you do not need for every type of growth situation.

Should there be a need to grow the number of users, the number of data sources, the tools included in the solution or for most any other reasons we would be pleased to work with you to define the most effective solution and to provide you with the most effective pricing that meets your needs.

West Virginia RFP MED11015 Bureau for Medical Services Data Warehouse/Decision Support System Procurement

Page 15-4

ADDITIONAL FLEXIBILITY ASSOCIATED WITH INGENIX’S HOSTED SOLUTION In the RFP, BMS is desiring and requiring that the DW/DSS solution be a hosted solution. At BMS’ sole option, Ingenix would be pleased to meet with BMS to negotiate a contract amendment and associated price wherein BMS could transition the solution to another environment, including to a State facility. We feel that our solution provides BMS the greatest flexibility and a great opportunity to use the proposed DW/DSS solution as the foundation for building institutional knowledge both now, as well as far into the future.