X hits on this document

295 views

0 shares

0 downloads

0 comments

15 / 122

  • o

    Option C: Multi-line OCR without ZIP+4 is the same as option B except that

the ZIP+4 code would be terminated. The 5-digit ZIP code would be retained.

o

Option D:

Automatic conversion is to

OCR

procurement,

but

simultaneously

proceed initiate

with the Phase 11 release-loan testing

single-line (and any

necessary convert all ZIP+4 use.

related R&D) on single-line OCRs

single-line as soon as

to multi-line conversion and then possible, regardless of the level of

o

Option

E:

Hedge

conversion

is

similar

to

option

D

except

that

the

single-

to

multi-line conversion would take place only if ZIP+4 use is low at a specified future time (defined here as year-end 1987). Both options D and E include the same initial decision to purchase Phase II single-line OCRs, and to initiate release-loan testing of and any necessary research on conversion. The difference is that under option D, the conversion would be made regardless of the level of ZIP+4 use, while under option E, conversion would take place only

if use is low.

  • o

    Option F: Cancel Phase II and ZIP+4 is to cancel the Phase II single-line OCR procurement, terminate ZIP+4, and use the single-line OCRs already purchased to process 5-digit ZIP mail.

    • o

      Option G: 50-50 Split procurement is a hybrid option that would cancel the Phase II procurement, immediately reissue an RFP for one-half the number of single-line OCRs (202 instead of 403), and simultaneously initiate release-loan testing of the multi-line OCR and single- to multi-line conversion. A new RFP for procurement of the other half of the OCRs but using multi-line technology (201 multi-line OCRs) would be issued as soon as possible, probably in about 2 years, at which time the then existing single-line OCRs (252 from Phase I and 202 from Phase II) would be converted to multi-line.

o

Option H:

90-10 Split Procurement is similar to option G except that the

Phase rather

11 RFP would be reissued for 90 percent of the single-line OCRs than 50 percent, and release-loan testing would be initiated on

(363), multi-

line OCRs leading to a new RFP for procurement the OCRs (40) using multi-line technology.

of

the

other

10

percent

of

Key assumptions. Where possible and justifiable, OTA used the same assumptions as did USPS. For example, OTA and USPS used the same time horizon (14 years, 1985- 98), labor cost escalation rate (7.42 percent annually), baseline cost and savings projections (for single-line OCRs, as presented in January 1984 to the Board of Governors), discount rate (15 percent per year), and single-line OCR performance and

cost. OTA assumptions about multi-line conversion cost ($200!

multi-line OCR 000 per machine),

cost ($850,000 per machine), single- to and the time required to release-loan

test with

and procure multi-line OCRs USPS and GAO estimates.

and

conversion

kits

(3

years)

were

generally

consistent

Document info
Document views295
Page views295
Page last viewedSat Dec 03 10:49:11 UTC 2016
Pages122
Paragraphs3734
Words24057

Comments