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The options and assumptions used in the decision analysis along with the major

results are discussed below.

complete

cash

flows

for

each

Further

option

are

details on included in

the modeling methodology the appendices.

and

the

Decryption of Decision Options

OTA identified eight major decision options. described below.

These are listed in figure 4 and

Option A:

Phase II Single-Line OCR.

Option A is the current USPS strategy to

proceed to procurement of the 403 the postal automation program, on A, there would be no further development, and testing.

additional single-line OCRs advertised for Phase 11 of

which bids have already USPS expenditure on

been received. Under option multi-line OCR research,

Option B: Multi-Line OCR with ZIP+4. Opt on B is a decision to cancel the current Phase 11 single-line OCR procurement, initiate release-loan testing (where manufacturers actually test prototype equipment on USPS premises using real mail) of multi-line OCRs, and as soon as possible reissue the Phase 11 request for proposals but for multi-line rather than single-line OCRs, meanwhile retaining the ZIP+4 code. Single-line OCRs already purchased would be converted to multi-line capability.

Option C: Multi-Line OCR without ZIP+4. Option C is the same as option B except that the ZIP+4 code would be terminated. The 5 digit ZIP code would be retained.

Option D: Automatic Conversion. Option D is to proceed with the Phase II single-

line OCR procurement,

but simultaneously initiate release-loan testing

necessary

related

R&D)

on

single-line

to

multi-line

conversion,

and

then

(and

convert

any all

single-line OCRs as soon as possible, regardless of the level of ZIP+4 use. 34

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