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Suggested Citation:"Capital Investment Committee." National Research Council. 1971. Management of the military facilities procurement program. Final report. Washington, DC: The National Academies Press. doi: 10.17226/28198.
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Page 204
Suggested Citation:"Capital Investment Committee." National Research Council. 1971. Management of the military facilities procurement program. Final report. Washington, DC: The National Academies Press. doi: 10.17226/28198.
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Page 205
Suggested Citation:"Capital Investment Committee." National Research Council. 1971. Management of the military facilities procurement program. Final report. Washington, DC: The National Academies Press. doi: 10.17226/28198.
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Page 206

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An important quasi-organizational element not shown on the chart i s the Capital Investment Committee (CIC), which has been m existence but eig^t months This Committee i s chaired by the Assistant Post Master General from the Bureau of Fa c i l i t i e s and contains as members the Assistant Post Master Generals of each of the other bureaus except the Bureau of Personnel The Capital Investment Committee (CIC) meets privately i n monthly sessions Subcommittees of the CIC meet weekly or more frequently The CIC reviews a l l f a c i l i t y plans and require- ments for acquisitions i n excess of $2,000,000 00 or exceeding 50,000 sq f t i n area The Committee i s currently developing c r i t e r i a for a l l capital investment requirements of the Post Office On 16 March 1970 the headquarters circular 70-12 was {^proved defining the pur- pose, scope, and a c t i v i t i e s of the CIC 2 Capital Investment Committee The Post Office Department is aware of the need to act with "efficiency and pre- cision of operations as a business i n which investors want to invest " To aid m th i s business £^proach to postal operations the C^qpital Investment Committee has been formed to establish policies and consider the advisability f o r acquisi- ti o n of a New major f a c i l i t i e s b Major improvement projects c Postal mechanization, including fixed mechanization and non-fixed mechanized mail-handling equipment d Vehicles e Postal data processing equipments f Any other program, project or procurement involving an i n i t i a l or accumulated planned capital investment i n excess of $2,000,000 00 Shown i n Figure 43 i s a diagram o f the movement of the major f a c i l i t y decision throu£|i the postal organization as i t existed p r i o r t o the inception o f the Capital Investment Committee Figure 44 shows a summary movement for the de- cision-making process as guided by the new CIC In general terms, the Bureau of Operations now dictates requirements for planning to the Capital Investment Com- mittee allowing ten-year advance planning Two primary considerations provide some driving forces for f a c i l i t i e s , 90% of which are i n excess of 15,000 sq f t in area, these are cq>acity deficiencies and environmental deficiencies The CIC planners examine the efficiency and effectiveness of the planned Post Office Department f a c i l i t i e s by analysis based on pay-out c r i t e r i a , monetary savings capabilities, and improved service capabilities The program mana^ment off i c e acts as s t a f f assistants to the CIC for economic benefit analyses and as implementors of the master program plan o f ten years to insure mission f u l f i l l - ments Since the Post Office i s a two-way di s t r i b u t i o n biisiness, an economic benefit analysis is made to j u s t i f y investment needed to reduce the cost per piece handling An example of the content and format of an hypothetical econ- omic analysis report to the CIC follows The Proposal The haavo proposal bevng analyzed vn this report vs the oonstruotton of a new major postal faatlvty i n Cvty, State One addit%onal alter- natzve proposal xs xnoluded No planned action assumes oonttnuatvon of present manual operations 138

I I DEPUTY PHG T OFFICE OF PLANNING AND SYSTEMS ANALYSIS ^3 REVIEW COMMITTEE PROJECT SPECIALISTS 9 V / 9 APNG RESEARCH AND] ENGINEERING APMG OPERATIONS PRODUCT DESIGN DIRECTOR PRODUCT PLANNING DIRECTOR 19 20 21 APMG FINANCE AND ADMINISTRATION I V̂ ~1APMG I APM FACILITIES S P A C E AND [^—-- — t l MECHANI ZAT I ON U. R E Q U I R E M E N T S P D I V I S I O N 18 REALTY D I V I S I O N SPACE REQUIREMENTS BRANCH 12 17 11 MECHANIZATION REQUIREMENTS BRANCH 101 , . . . J i - _ J 11 J 22 JREGIONALL_. iDIRECTORr 21 J INSPECTOR l l N CHARGE U . LOCAL SERVICES DIVISION POSTAL SERVICES DIVISION ENGINEERING BRANCH 'X \ / REAL SPACE ESTATE REQUIREMENTS BRANCH! 16 nBRANCH 2 ENGINEERING FACILITIES DIVISION 7 TRANSPORTATION DIVISION >3 l<» 16 2 VEHICLE MAINTENANCE BRANCH OTHER BRANCHES J — ORGANIZATIONAL LINES —-MOVEMENT OF THE DECISION NUMBERS I THROUGH 22 REPRESENT STEPS IN THE DECISION PROCESS F i g u r e k3 F a c i l i t i e s A c q u i s i t i o n d e c i s i o n process b e f o r e p o s t a l r e f o r m 139

REGIONAL OFFICES POSTMASTER (S) DEFINES NEW FACILITIES REQUIREMENTS o 1 HEADQUARTERS POD CIC CONGRESS BUREAU OF OPERATIONS RANKS PROJECT NEEDS BY "SAVINGS CRITERIA" BUREAU OF RESEARCH 2ND ENGINEERING STUDIES FEASIBILITY AND ECONOMIC ANALYSES OF ALTERNATES CIC REVIEWS ANNUAL PLANS FOR FACILITIES « ECONOMIC BENEFIT STUDIES AND RISK ANALYSIS BY PROGRAM MANAGEMENT JUSTIFIES REQUIREMENTS I ANNUAL BUDGET SUBMITTED TO CONGRESS MINOR FACILITIES CONSTRUCTION. REPAIRS MAINTENANCE HANDLED BY REGIONAL OFFICE MAJOR FACILITIES DESIGN. CONSTRUCTION 2ND SUPERVISION HANDLED BY BUREAU OF FACILITIES 1 FACILITY TURNOVER TO BUREAU OF OPERATIONS APPROVED AND APPORTIONED BUDGET X i g u r e M _ C a p i t a l - J n v e s t m e n t Committee d e c i s i o n f l ow process

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