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..

The 252 OCRs already purchased by USPS averaged $645,000 per unit in capital

cost, although the Burroughs price was apparently significantly lower (approximately $300,000 per unit) than the Pitney Bowes price.

These prices include all OCR equipment (e.g., mail transport, optical character recognition unit, computer directory, ink jet printer, sorting stackers) plus installation,

acceptance (equipment must perform to USPS specifications prior to acceptance by

USPS), and 2 years worth of significant price difference manufacturers bid on the same

spare parts.

There is no

between

Burroughs

and

obvious Pitney

number

of

units

meeting

the

same

explanation for the Bowes, since both technical performance

specifications.

encourage

future

USPS apparently

competition

for

split the procurement between subsequent procurements, but

two vendors in order at an additional cost

to of

about $37.8 million (126 units Pitney Bowes and Burroughs).

times

the

estimated

$300,000

price

differential

between

In the so-called Phase II procurement, USPS intends to purchase an additional 403 OCRs. Competitive bids have been solicited from four qualified U.S. manufacturers (all under license to foreign companies):

Burroughs

NEC (Japan)

Pitney Bow-es

ELSAG (Italy)

Recognition Equipment Inc.

Toshiba (Japan)

ElectroCom

Telefunken (Germany)

U.S. Manufacturers

Foreign Licenser

USPS has budgeted for a capital cost of $660,000 per unit for the 403 OCRs. Bids have been received by USPS, but a selection decision and contract award(s) will not be made

. before late June 1984.

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