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QUICK
RETURN INVESTMENT PROCUREMENT
28 September 1992
SUBJECT: Post
Investment Analysis, Project #04-1001, Vehicle Lifts - 94th
ARCOM
- Reference: AR 5-4, Productivity Capital
Improvement Program.
- Attached as an enclosure is a completed
DA Form 5108-1R, Post Investment Analysis for PCIP Project #04-1001,
Vehicle Lifts - 94th ARCOM. As shown in the analysis,
- As part of the original project submission,
AMSA #63 (G) Manchester, NH, and two Sub-shops, Auburn, ME and Rutland
VT, were included. When the approval and funds for this project were
received, proposed force structure changes warranted a change of location
for several lifts. Since AMSA #69 (G), Milford, CT and AMSA #72 (G),
Windsor Locks, CT, are currently subject to proposed force structure
actions, it was decided to position one lift in each of those facilities.
These two activities are included as part of this Post Investment
Analysis.
- Also attached as enclosures are photographs
taken with a lift in actual use. Additionally, as a result of this
project, Mohawk Resources Ltd., the supplier of the lifts, is listed
on an approved GSA Contract Schedule. Mohawk's GSA price for a 12,000
pound lift is $6,332,50.
- Point of contact on this analysis is
Mr. Gary Dow, Supervisory Equipment Specialist at DSN.
| POST INVESTMENT ANALYSIS
|
REQUIREMENT CONTROL
SYSTEM |
1. PROJECT NUMBER
#04-1001
|
2. TITLE
Vehicle
Lifts - 94th ARCOM |
3. SHORT DESCRIPTION OF THE PROJECT (Old
versus new method)
Vehicle lifts were purchased to lift vehicles
weighing less than 12,000 lbs in order to expedite equipment repair. These
lifts replaced the old method of hand jack and jack stands which took
an average of 40 minutes to setup before actual repairs began. By using
a vehicle lift the setup time has been reduced to four (4) minutes. Annual
savings this first year totaled $134,682.00.
4.
UNIT AND LOCATION
See Attached Facility Listing
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5.
DATE FUNDS RECEIVED (YYMMDD)
91 05 23 |
6.
DATE EQUIPMENT OPERATIONAL
(YYMMDD)
91 10 18
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| 7a.
|
PROJECT COST |
|
|
ITEMS |
PROPOSED COST |
ACTUAL PROJECT COST |
DIFFERENCE |
| Equipment |
$80,000.00 |
$82,500.00 |
$2,500.00 |
|
TOTALS |
$80,000.00 |
$82,500.00 |
$2,500.00 |
7b. EXPLANATION
OF DIFFERENCES
When this project was initially submitted,
lifts were estimated to cost $8,000.00 a piece (prior to GSA pricing).
Actual per item cost after bid award was $8,250.00. The 94th
ARCOM provided the additional $2,500.00 required to award this bid and
complete this project.
| 8a.
|
OPERATING COSTS |
|
| ITEMS |
OLD METHOD |
NEW METHOD |
DIFFERENCE |
| Salary/Labor/Overtime
|
$147,585.00 |
$12,903.00 |
$134,682.00 |
|
TOTALS |
$147,585.00 |
$12,903.00 |
$134,682.00 |
8b. EXPLANATION OF
DIFFERENCES
As stated
in the project justification, it required 40 minutes for a mechanic
to setup a vehicle before actual repairs began. Using vehicle
lifts, the time required to setup a vehicle for repair has been
reduced to 4 minutes. The number of vehicles service and repaired
has increased due to the mechanics ability to expedite setup time.
Due to the expedited setup time, cost savings realized are
more than originally estimated. |
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