Quick Return Investment Procurement

28 September 1992

SUBJECT: Post Investment Analysis, Project #04-1001, Vehicle Lifts – 94th ARCOM

  1. Reference: AR 5-4, Productivity Capital Improvement Program.
  2. 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,
  3. 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.
  4. 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.
  5. 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
5. DATE FUNDS RECEIVED
(YYMMDD)
91 05 23
6. DATE EQUIPMENT OPERATIONAL
(YYMMDD)
91 10 18
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.