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Annual lease (FSS 1-year rate)

$190,980 $190,980 $190,980 $190,980 $190,980 $190,980 Present value

173,601 157,749 143,426 130,439 118,599 107,713 $831,527 Annual lease (6-year lease rate)

$148,164 $148,164 $148,164 $148,164 $148,164 $148,164 Present value

134,681 122,383 111,271 101,196 92,010 88,564 $645,105 Present value discount

factor from OMB Circular A-94

1.000 .909 .826 751 .683 .621 .564 .Represents present value of maintenance ($29,670) lens residual value of the equipment ($188,750). Source: Recognition Equipment Inc., cont proposals and Study Group 18A, Final Report, Feb. 1972, vol. I, part VI, exhibit III, D. 417.

TABLE E-5. PRESENT VALUE ANALYSIS OF ADPE COST/BENEFIT RATIOS EFFECT OF LENGTH

OF SELECTION PROCESS ON PRESENT VALUE

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Costs include: $100,000 annually for price escalation.

$100,000 annually for selections staffs in years 5, 4, 3; $150,000 for year 2; and $300,000 for year 1. $4,000,000 for annual systems costs.

$7,000,000 for annual operations. Source: Study Group 13A, Final Report, Feb. 1972, vol. I, exhibit II, p. 415.

APPENDIX F

Support Cost Data

TABLE F-1. PROCUREMENT VOLUME FOR TOP PRODUCT GROUPS AND TOTAL FOR INTERAGENCY

SUPPORT ACTIVITIES, FISCAL 1971

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83

DISC' (continued)

DPSC: (continued)
FSG
Product

FSG

Product 61 Elec. wire, etc. 4,321 81 Packaging

4,031 Other

79,854
Textiles

41,405
84 Clothing
115,200

205,445 Total 87 Agricultural supplies

2,737 89 Subsistence

709,706 94 Nonmetallic material

2,429 Other

247,812 Total

1,402,753 1 “Procurement by Commodity Group,” FSS. Data do not include ADPE procurement. : Data submitted to Study Group 13A by the Veterans Administration. • Data submitted to Study Group 13A and “Key Management Data,” June 1971, Procurement and Production, Directorate, DSA.

• The FSG product groups include only actions over $10,000 for DSA centers. The procurement volume in these groups in actions under $10,000 is included in “Other."

TABLE F-2. GENERAL SERVICES ADMINISTRATION–FEDERAL SUPPLY SERVICE · COST OF

PROCUREMENT/DISTRIBUTION SUPPORT

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4.93

Procurement volume

436,672
293,753

24,063 N/A Cost/$100 procured

30.32

4.47

13.93 Gross sales volume net of surcharge :

442,495
266,161

24,898 101,654 Cost/$100 sold

29.92

13.46

24.71 * Derived from data obtained from FSS and reprinted in Study Group 13A, Final Report, vol. II, exhibit VII-2-2, pp. 686-687. The footnotes to the detailed exhibit in the Study Group report explain the methodology used in constructing the estimate by support program. * Not shown in this exhibit are the amounts of $12,481,000 allocated to the following programs by FSS: a. ADMS-ADPE programs

$2,848,000 b. Specifications, standards, and cataloging activities 1,163,000 c. FPR and FPMRs

1,177,000 d. Business service center, socioeconomic staffs, and share of service division

1,654,000 e. Administrator operations fund

456,000 1. Federal schedule program excluding ADPE

5,183,000 Total

$12,481,000

'The term "sales" is used to denote the action of filling support requisitions.

TABLE F-3. VETERANS ADMINISTRATION_CENTRALIZED DEPOT OPERATIONS COST OF

PROCUREMENT/DISTRIBUTION SUPPORT

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* Does not include $127,000 to operate the Federal Schedule Program assignment by FSS. 2 These costs are primarily funded by the VA Supply Fund.

Includes 41 menibers of the Washington, D.C., headquarters staff. • Average cash and accounts receivable investment was estimated as $13,363,000. Fifty percent was estimated to relate to central opera tions (prorated 88 percent to the Regular Stock Program and 12 percent to Direct Vendor Delivery Program).

• Real property was estimated at acquisition cost to reflect market value. Investment was $9,833,000. The capital value of the Bel. Calif., GSA-owned facility, which understates this cost category, is not included.

• Real property depreciation was estimated at a rate of 1-1/2 percent applied to $9,833,000. Depreciation of Bell, Calif., facility is not included.

? The term "sales" is used to denote the action of filling support requisitions.

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