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[M=Mounted. E=Experimental. NA=Not assigned. T=Transferred out of region]

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1-ton Dodge... Transferred to Cleveland to can

cel parcel post contract.

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Olmstead Falls, Ohio.

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Poland, Ohio.
Piqua, Ohio.
Perrysburg, Ohio..

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1-ton Dodge | Transferred to Findlay, Ohio to

release 22-ton Dodge transferred
to Cincinnati, to release jeep for
Newton, Ohio, mounted.

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$3, 538

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3,538 3, 538 3, 538 3,538 1,072

Ravenna, Ohio.

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Vehicle replaced

Disposition of vehicle replaced

1,4-ton Dodge Transferred to Cleveland to can

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Taken to Akron for repair, transferred to Plymouth, Ohio, for parcel post.

1-ton Dodge.-- Transferred to Cleveland to can

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3 l-ton

Dodges.

12-ton Dodge | Transferred to Piqua to release

1-ton Dodge for Cleveland par

cel post. do

Transferred to Shelbyville, Ind.,

to cancel contract. do.

Transferred to Cincinnati, cus

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Used at Warren, Ohio, for special

delivery.

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SUPPLEMENTAL INFORMATION, APRIL 16, 1956 This statement is submitted as a supplement to information previously furnished your office in connection with the purchase of 250 Twin Coach trucks. Particular reference is made to the Status and Estimated Savings exhibit which appears to require clarification.

The latter was extracted from a departmental report dated March 4, 1955 ; a date which was unfortunately omitted in our transcript.

The figures and statistics used in this memorandum were the latest cost figures available on March 4, 1955. To elaborate: The Department's vehicle cost accounting system requires that figures for a given month of operation be forwarded from the respective post offices in a given region, to the regional office where they are assembled and prepared for further transmittal to Washington. This lead time frequently results in a delay between the ciose of the particular month and the receipt of the figures by the office concerned. It is apparent then that the latest complete information for the Cincinnati region available on March 4, 1955, covered the reporting period for December 1954.

The final paragraph on page 2 of our Status and Estimated Savings represents the interpretation of the engineer who prepared this paper, of information contained in a cost accounting extract. The 211 vehicles represent the bulk of the units in the Cincinnati region. Four additional vehicles were in use in the Atlanta region on survey work and were not considered for this reason.

The 181 hours reported are the average number of hours of use per vehicle for the month of December only and not the cumulative average hours of use. Further, a recapitulation of the cumulative cost per hour through December resulted in a figure of 46.3 cents. The previous figure of 43 cents represents an error made by the clerk in copying. From the viewpoint of perspective, this error has no bearing on the basic report, inasmuch as the hourly operational cost of the vehicles was conservatively estimated at $0.50 and the available cost records were used only to provide the basis for this estimate.

There was available in March of 1955, information on Akron, Canton, and Youngstown for the month of October 1954. These cost figures were also noted in our Status and Estimated Savings as a further support for the 50 cents hourly cost estimate. It is regrettable that in our original submission to the committee we inadvertently omitted the applicable date of October 1954.

An analysis of subsequent cost figures has shown the actual hourly operating costs through March of 1955 were 55.6 cents or just over 11 percent above the original estimate. Accordingly, we have attached hereto a cost analysis (exhibit I) showing the actual savings picture in March of 1955, all offices considered. This picture obviously could not be prepared until all offices concerned had submitted their March reports to Washington, some of which did not reach here until about May 15, 1955.

EXHIBIT I
Contract savings, estimated :

Contracts for other vehicles which were canceled..
New mounted routes or rural routes converted to mounted

routes estimated at $1,072 per route (average cost of contract
service at selected cities in northeast Ohio)--

$189, 689, 00

80, 400, 00

270, 089. 00

Total.
Less annual cost of operation and amortization of 208 Fageol Twin

Coach trucks at 55.6 cents per hour, 6 hours daily, $3.34 daily.
$3.34 X 306=$1,022.04 X 208

212, 581. 32

57, 501. 68

Net contract savings_-
Carrier time savings, estimated : 30 minutes daily, 306 days at pro-

ductive man-hour cost of $2.20 per hour, 153 hours X208 X $2.20--

70, 012, 80

Total net carrier and contract savings annually.

127, 517. 48 127, 517.00

Rounded $127,517 divided by 208 vehicles (per vehicle)

613. 06

Comparison of costs of 1954 Fageol 74-ton vehicles with 1956 Dodge and Iniernational 74-ton vehicles for March 1956

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International, 1956.

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