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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
There is no
explanation for the Bowes, since both technical performance
split the procurement between subsequent procurements, but
two vendors in order at an additional cost
about $37.8 million (126 units Pitney Bowes and Burroughs).
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):
Recognition Equipment Inc.
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.