Below is the uncorrected machine-read text of this chapter, intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text of each book. Because it is UNCORRECTED material, please consider the following text as a useful but insufficient proxy for the authoritative book pages.
peraonnel, for purpoaea of analy6^8J would alao be aaeumd to xnoreoBe 25% Sxmlarly, %f mdivneiy requtrtng maintenanoe ^noreaaea 75%, peraomel related to machvnery mnntenanee would be vnareaaedt for tiie purpoaea of thva analyata, by 76% (6) It waa aaaumd that the additional apace required to be leased to oonttnue the preaent operation or to continue tfce operation aa provided m Alternative #1 could be rented at the eame price now being paid for rented apace m tfee area Additional Explanation Thia analyaia la baaed on -the fact that the new mm poat office for thia city (Alternative #2) will corrbme all of the operationa from the preaent annexea and annex addition and moat-of the operations from the old main office In addition^ a amall aegment of aome func- tions performed m one of the auburban atationa will be conaolidated into Sie new facility No oonaolidation la planned for the alterna- tive of acquiring leased space (Alternative #1) Reaulta of the Analyaia , The Economic Analyaia Summary (Table I) ahowa that the alternative of leasing additional apace and inatallation of three letter aort- ing mxchinea la expected to produce net coat reductions of $1,149,000 The alternative of conatruoting a new facility la expected to pro- duce a net coat reduction of $1,087,000 The benefit-coat ratio la approximately three timea higher for the firat alternative, while the internal rate of return for thia aame alternative greatly ex- ceeds that of constructing a new facility The much tower invest- ment for Alternative #1, contined with identical cost reduction from mechanization, provides a significant economic advantage to the first alternative Additional comparative material is given m Tables II through V Concurrency i n planning, n s k analysis, economic benef i t analysis, and network analytic techniques are u t i l i z e d as elements o f postal reform In p r i o r years only series techniques were employed to progress the planning, programming, bud- geting, and construction a c t i v i t i e s Since i n excess o f 85% o f the postal budget I S t i e d in to labor costs, automation o f mail handling and processing equipment I S throug^t to represent a key f o r iiq>roving postal effectiveness and e f f i c i e n c y The CIC I S a strong proponent o f th is busmess-like approach to examining and planning f o r f a c i l i t i e s acquisitions to meet operational needs A time-phased budget and appropriations cycle diagram i s shown on Figure 45 3 Acquisit ion The Acqiusition Department i s responsible f o r real estate acquisi t ion, bu i ld ing contracting, and mechanization procurement At th i s time 150,000,000 sq f t o f postal f a c i l i t i e s exist i n 30,000 buildings th rou^out the country Approximately 27,000 o f these f a c i l i t i e s are leased, with 3,000 government-owned Approximately 12,000 of these f a c i l i t i e s are new wi th in the last 12 years 141
TABLE I ECONOMIC ANALYSIS SUMMARY ($000 'e) No Plcatned Altevnatvoe Alternative Aotzon n Total Operating Coete 90,000 88, 448 86,217 Total Operating Cost Reduotzone â U 522 3,783 Add Reaidual Value â 148 4,241 Groee Coat Reductions â Is 700 8,024 Leas Investment â SSI 6,937 Net Cost Reduotiona â 149 1,087 Net Cost Reduotions, Present Valued $ 6% 1, 225 5,025 Benefit-Cost Ration @ 6% â 2 22 0 72 Net Cost Reductions, Present Valued & 10% 1, Oil 3,842 Benefit-Cost Ratio 0 10% â 1 83 0 55 Internal Rate of Return â 26 09 1 62 TABLE II CAPITAL INVESTMENT SUMMARY ($000's) No Planned Alternative Alternative Action ifl n Investment Land â 1,800 0 Construction â â 4,585 5 - -Meohanization Letter Sorting Machines â 551 0 551 0 â Total Investment â 551 0 6,936 5 Less Residual Value â 148 1 4,240 8 Net Investment â 402 9 2,695 7 142
TABLE III ECONOMIC ANALYSIS SUMMARI ($000'e), ALTERNATIVE U Yec^ 1 i i 4 5 6 7 8 9 10 Coat Reduotvona Meohamaattan 68 0 77 2 87.1 101 7 115 9 123 1 142,9 163,1 171 6 174,8 VeHole Shuttle Cotleotton Chrtaimaa Opemtion â â â --- â â â â Aooident and Turnover â â â â â â â â â â Butlcting Socovnga 19 5 21 S 25 1 26 8 28 S 31 6 33 3 36 6 36 9 38 0 Total Coat Reduatvon 87 5 98 7 112 2 128 5 144 4 154 7 176 2 198 7 208 5 212 8 TABLE IV ECONOMIC ANALYSIS SUMMARI ($000'a), ALTERNATIVE if2 Yeco' 1 i 3 4 5 6 7 8 9 10 Coat Reduotvona Meohcattzatum 68 1 77 2 87 1 101 7 115 9 123 1 142 9 163 1 171 6 174 8 Vekufle Shuttle Servxoe 11 7 11 7 11 7 11 7 11 7 11 7 11 7 11 7 11 7 11 7 Colleotton 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 Cknatmaa Operatvon 8 9 8 9 8 9 8 9 8 9 8 9 8 9 8 9 8 9 8 9 Aoovdent and Turnover 18 4 19 5 20 3 21 2 22 1 22,9 23 8 24 4 25 3 26 2 Butldvng 249 9 268 Saotnga 146 9 167 6 174 9 185 9 198 6 207 6 223 5 237 9 5 Total Coat Reduotvon 260 6 291 5 309 5 336 0 363 8 380 8 417 4 452 6 474 0 496 7 143
TABLE V PERSONNEL AND STAFFING SUMMARI No Planned Action Altemat'uve #1 Altematvve #2 lat Yr Sth Yr lOYr let Ir Sth Yr 10 Yr let Yv Sth Yr 10 Yr PoatmoBtev 1 1 1 1 1 1 1 1 1 SuperwaovB 26 30 34 26 30 34 26 30 34 Clerka ocnd tkn^lhandlera 636 775 935 631 765 915 631 765 915 CaxTvera ocnd Dmvera 63 73 83 63 73 83 62 72 82 S D Meaaengera 3 3 4 3 3 4 3 3 4 Rural CaxT^eva â â â â â â â â â Cuatod^al Serwoe 24 25 26 24 25 26 24 25 26 Vehvole Maintenance â â â ~â ~~ Total Staffing 753 907 U083 748 897 U063 747 896 U062 Total Staffing 7831 ($000 'a) 6517 7878 9469 6512 7873 9464 6474 9418 144
APPROXIMATE MONTH JANUARY FEBRUARY MARCH APRIL MAY I JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY PRESIDENT CONGRESS BOB POD P 0 REGIONS POST OFFICE PROPOSE BUDGET i DRAFT PROGRAM MEMORANDA T BUDGET GUIDELINES BEGIN PRELIMINARY BUDCET ESTIMATE REVIEWS REVIEW SUBMIT PROGRAM PROGRAMS PROGRAMS . . . REVISE PROGRAMS ISSUE BUDGET GUIDANCE BUDGET REVIEW SUBMIT PRELIMINARY BUDGET ESTIMATE SUBMIT BUDGET I BUDGET HEARINGS I i SUBMIT REVISED BUDGET TO PRESIDENTj I PRESENTS BUDGET TO CONGRESS | HEARINGS-HOUSE SUBCOMMITTEE FOR APPROPRIATIONS ⢠⢠" * HOUSE PASSES BILL I HEARINGS-SENATE SUBCOMMITTEE FOR APPROPRIATIONS f SENATE PASSES BILL X CALL FOR TARGETS AND EVALUATION GUIDE SUBMIT PRELIMINARY TARGET DATA I CONFEREES ADJUST DIFFERENCES | HOUSE AND SENATE PASS ON CONFEREES REPORT â¢TISSUE BASIC TARGET ADVICE PRESIDENT SIGNS BILL INTO LAW n PREPARE QUARTERLY APPORTIONMENTS -FORMAL BUDGETING FLOW â¢PROGRAMMING FLOW INFORMATION FLOW REVISE AND APPROVE QUARTERLY APPORTIONMENTS u ISSUE ALLOTMENTS TO REGIONS ISSUE ALLOWANCES TO POST OFFICES FINISH AND SUBMIT riBASIC TARGETS Figure ^5 Flow chart f o r Post Off ice budgeting and appropriations cycle 145