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Option F: Cancel. Here, OTA assumed that the Phase 11 OCR procurement would be cancelled, as would the ZIP+4 program and related rate incentives. The 252 single- line OCRs purchased in Phase I would be used to process 5-digit ZIP mail. OTA assumed

that maintenance and spare parts costs address directory information update

would cost.

be the same, Clerk carrier

but that savings

there would be no for option F were

assumed to be the same savings achievable at 90

as with zero percent ZIP+4 use; that is, percent ZIP+4 use, per USPS estimates.

about

21

percent

of

the

OTA used option F as the baseline against which incremental cash flows of other options can be measured.

Phase

Option G:

50-50

I

single-line

OCRs

Split would

Procurement.

be

converted

to

For option G, OTA assumed that the 252

multi-line

in

1988-90

(as

in

options

B,

C,

D);

the

Phase

11

procurement

would

be

split,

with

202

additional

single-line

OCRs

purchased now, installed in option D except at one-half

1985-87, and converted to the number of single-line

multi-line in 1988-90 (same as OCR units); and 201 multi-line

OCRs would be purchased after release-loan testing and installed in 1988-90 (same as option B except at one-half the number of multi-line OCR units).

Thus, option G is an intermediate option between options B and D and would be expected to roughly split the difference between the two.

Option H: option G except

90-10 for the

Split Procurement. Option H

Phase

11

split:

363

(instead

is based of 202)

on the same assumptions as additional single-line OCRs

would be purchased now, installed in 1985-87, and converted 40 (instead of 201) multi-line OCRs would be purchased after installed in 1988-90.

to multi-line release-loan

in 1988-90; and testing and

40

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