Subject: Re: [Ianaplan] Trial balloon: suggested text

From: [email-masked]
Date: Wed, 19 Nov 2014 18:18:26 +0100

Dear David

You are of course correct and I thank you for providing the full text.

Best Richard

Sent from Samsung Mobile.

-------- Original message --------

From: David Conrad

Date:19/11/2014 18:04 (GMT+01:00)

To: Richard Hill

Cc: [email-masked]

Subject: Re: [Ianaplan] Trial balloon: suggested text

Richard,

On Nov 19, 2014, at 12:20 AM, Richard Hill <[email-masked]> wrote:
> To answer Miles's question, yes, the current IANA Functions contract between the NTIA and ICANN does specify that the functions wil be performed at no cost.

You left out a bit. The current IANA Functions contract states:

"B.2 COST/PRICE

The Contractor may not charge the United States Government to perform the requirements of this Contract. The Contractor may establish and collect fees from third parties provided the fee levels are approved by the Contracting Officer and are fair and reasonable. If fees are charged, the Contractor shall base any proposed fee structure on the cost of providing the specific service for which the fee is charged and the resources necessary to monitor the fee driven requirements. The Contractor may propose an interim fee for the first year of the contract, which will expire one year after the contract award. If the Contractor intends to establish and collect fees from third parties beyond the first year of the Contract, the Contractor must collaborate with the interested and affected parties as enumerated in Section C.1.3 to develop a proposed fee structure based on a methodology that tracks the actual costs incurred for each discrete IANA function. The Contractor must submit a copy of proposed fee structure, tracking methodology and description of the collaboration efforts and process to the Contracting Officer."

TL;DR: ICANN cannot charge _the USG_ for the performance of the IANA Functions, however ICANN can collect fees from third parties as long as the fee structure is fair, reasonable, based on the cost of providing the services, and developed in collaboration with the affected parties.

Regards,
-drc