Who pays for e-government?
- By John x_Zyskowski
- Dec 10, 2000
When building or hosting an e-government application, Gov-Connect Inc.
will bill the government for the work, whether it's based on a traditional
time-and-materials contract or on the system's transaction volume, said
Paul Doty, GovConnect's executive vice president of sales and marketing.
The company has not and will not be paid for work based on transaction fees
that citizens or businesses pay to use the e-government application, he
In fact, payments based on user-transaction fees have been common in
the state and local markets. For example, most state and local systems
that EzGov Inc. has built are financed with this model, according to the
company. But most observers and even companies that use the model expect
it to change.
"I believe the transactional model will continue, because it aligns
our interest with our government customers," said Ed Trimble, president
and chief executive officer of EzGov. "But I think in most cases it will
be paid by the government."