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.
Automatic conversion is to
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
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.
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.
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.
90-10 Split Procurement is similar to option G except that the
11 RFP would be reissued for 90 percent of the single-line OCRs than 50 percent, and release-loan testing would be initiated on
line OCRs leading to a new RFP for procurement the OCRs (40) using multi-line technology.
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
and procure multi-line OCRs USPS and GAO estimates.