GUIDELINES FOR ACQUISITION OF OFFICE COPYING MACHINES NOT REQUIRING SENSITIZED PAPER FOR REPRODUCTION

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP84-00499R000600040108-8
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 5
• Document Creation Date: December 12, 2016
• Document Release Date: June 4, 2001
• Sequence Number: 108
• Publication Date: September 29, 1964
• Content Type: REGULATION

Approved For Release 2002/05/01 : CIA- DP84-00499R0006000 1
GENERAL SERVICES ADMINISTRATION
WASHINGTON, 0. C. 20405
'GSA Declassification & Release Instructions on' File - No Roferral to GSA
September 29, 1964
GENERAL SERVICES ADMINISTRATION CIRCULAR NO: 353
TO . Heads of Federal Agencies
SUBJECT: Guidelines for Acquisition of Office Copying Machines Not
Requiring Sensitized Paper for Reproduction
equipment.
1. Purpose. This circular is issued to assist personnel of Federal agen-
cies who are concerned with the acquisition of office copying machines
available under the terms of Federal-Supply Schedule, FSC Group 36,
Part II. These guidelines may also be utilized in connection with
acquisition of equipment by or for contractors or subcontractors per-
forming under cost-reimbursement. type, contracts. The circular is not,
intended-as a guide for determining whether a need exists for copying
Even though purchase of this machine has been authorized for over a
year, agencies have for the most part continued to lease the machine.
The decision to lease is probably due to its high purchase price com?-
part of 1960. It has reduced copy costs in Government agencies while
providing rapid copy production. Prior to July 1, 1963, this machine
appeared on the Federal Supply Schedule but could only be leased. The
Schedule has allowed for the purchase of new machines for $29,500
since that date, and the FY 1965 Schedule also authorizes purchase of
a leased machine with full credit for the rentals paid during the 18
months prior to purchase, up to $14,500, applied to the purchase price.
2. Background. The subject machine, which is the only electrostatic
copier that uses standard stock paper, was introduced in the latter
pared with other copying machines, ,',,!and/or concern with regard to
potential, obsolescence.
While the technologic obsolescence factor must be considered carefully
when reviewing the alternative methods of acquiring the subject machine,
the purchase price per se should not be considered a deterrent in this
regard. This reasoning particularly applies where a currently leased
machine may be purchased and a sizable reduction of the purchase price
credited for past rental costs. Studies conducted by the General
Accounting Office and the General Services Administration indicate that
in many cases substantial savings can be realized by purchase of the
subject machine, notwithstanding its high acquisition cost (see attach-
ment). The option now available to purchase a new or currently leased
machine should be exercised more frequently than in the past, despite
the technologic fluidity in the copying field today.
Selection of Method of Acquisition. In view of the above, Government
agencies today have three alternatives. They can (1) lease the
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subject machine, (2) purchase a currently leased machine, or (3) pur-
chase a new machine. The.method of acquiring the subject copying
machine should be determined after careful consideration of the rela-
tive merits of the methods available. The method selected should be
that which offers the greatest advantage to the Government under the
circumstances which pertain to each situation. Decisions as to the
financial advantages of purchasing, whether it be a new or a currently
leased machine, should be based not only onthe needs of the individual
using activity, but on the needs of the entire agency, and to the
extent practicable, the needs of the entire Federal Government. In
this regard,.activities planning to acquire the subject machine for
use for a period of time insufficient to realize a savings by purchase
should consider whether savings can be obtained by subsequent use of
the machine within the agency or by utilization elsewhere in the Gov-
ernment. To aid in such determinations, the attachment and the follow-
ing exmnples are offered for agency guidance:
Agency A has made a determination to acquire the subject
machine. A workload of 20,000 copies per month is antici-
pated. As can be seen in the attachment, after 5 years the
cost to Agency A would be less if the machine is acquired
by purchase rather than lease. Furthermore, since the esti-
mated life expectancy is 3 million copies, Agency A would be
able to operate the machine for at least another 5 years with
the only charge being maintenance costs of $2,160 per year.
The lease costs would continue at $8,700 per year under the
present schedule.
Agency B leased a new machine early in September 1962 that
has been producing 30,000 copies per month since that time.
By purchasing this machine the purchase price will be reduced
by $14,500. Total costs for the first 2 years following pur-
chase would be $21,480 ($15,00b purchase price + $6,480 main-
tenance costs = $21,480), whereas lease costs during this
period would total $24,900. At the end of the 2-year period.
the purchased machine would still be capable of producing
30,000 copies per month for 4-1/3 years before reaching its life
expectancy with the only cost being the $.009 per copy main-
tenance charge.
Agency C has leased a machine which has averaged 40,000 copies
per month for 2 'years; the life expectancy of the machine is
an additional 51 months. (24 mos. x 40,000 copies + 51 mos. x
40,000 copies = 3,000,000 copies.) The question here is,
should Agency C purchase the used machine with a 51-month life
expectancy, or purchase a new machine with a life expectancy
of 75 months. In this instance, although cost is of prime con-
cern, protection from technologic obsolescence must be consid-
ered. With the purchase of a used machine, Agency C would be
better protected cost-wise against this eventuality than if it
purchased a new machine.
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 Approved For Release 2002/05/01.'$ CIA-RDP84-00499R000600040108-8
The atthhchment and the foregoing examp,1 s reflect savings that can:be
attained under the existing Federal Supply Schedule. Subsequent modi-
fications,thereto, or the advent of new or modified equipment or
processes can of course affect the computations contained therein.;
When such circumstances do arise, this circular will be appropriate2ly
BERNARD L. BOUTIN
Administrator
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 Approved For Release 2002/05/01 : CIA-RDP84-00499R000600040108-8
COPIES PER MO.
CUMULATIVE YEARLY COSTS
10,000
$ 4,500
$ 9,000
$13,500
$18,000
$22,500
$27,600
15,000
6,600
13,200
19,800
26,400
33,000
39,600
20,000
8,700
17,400
26,100
34,800
43,500
52,200
25,000
10,650
21,300
31,950
42,600
53,250
63,900
.30,000
12,450
24,900
37,350
49,800
62,250
74,700
35,000
13,950
27,900
41,850
55,800
69,750
83,700
40,000
15,450
30,900
46,350
61,800
77,250
92,700
45,000
16,950
33,900
50,850
67,800
84,750
50,000
18,450
36,900
55,350
73,800
92,250
PURCHASE**
10,000
$30,580
$31,660
$32,740
$33,820
$34,900
$35 980
15,000
31,120
-32,740
34,360
35,980
37 600
39 220
20,000
31,660
,x,30
35,980
38,14o
-
0 300 _
2 4 0
25,000
32,200
34,900
37,600
4L
0,300Z
3 000,
5 700
30,000
32,740
"j33
39 220
2 0
45 70
4o 940
35,000
33,280.
37,060
0 0
20
00
52 1 0
40,000
33,820
38,140
2 O
7 0
51 100
55 20
45,E
34,36
39,220
0
9.0
53 00
50,000
34,900
40,300
5 700
51 loo
5 500
4291
Lou/
,140
$38
0 300
570051 100
5 599
R
*Lease data based on $300.00 annual use charge plus $.0350 per copy for the first 20,000 copies per month, $.0325 for the
next 5,000 copies during that month, $.0300 for the next 5,000 copies, and $.0250 for all copies over 30,000 during the month. r 0
F'1
**Purchase data based on purchase price of a new cowing machine at $29.5=0. plus $.009 per copy maintenance cost, with an
FJ C*
=Denotes point in time when accumulated rental payments exceed cumulative cost of purchase and maintenance.
r
$31,500
$36,000
$40,500
$45,000
46,200
52,800
59,400
66,000
60,900
69,600
78,300
87,000
74,550
85,200
95,850
106,500
87,150
99,600
97,650
Approved For Release 2002/05/01 : CIA-RDP84-00499R000600040108-8
 A
UNCLASSIFIED CONFIDENTIAL
CENTRAL INTELLIGENCE AGENCY
OFFICIAL ROUTING SLIP
TO
NAME AND ADDRESS
DATE
INITIALS
1
1A53 Hdgtrs.
2
3
4
5
6
ACTION
DIRECT REPLY
PREPARE REPLY
APPROVAL
DISPATCH
RECOMMENDATION
COMMENT
FILE
RETURN
CONCURRENCE
INFORMATION
SIGNATURE
Remarks :
Attached is a copy of GSA Circular No. 353
which may be of interest to you and your Budget
Officer.
FOLD HERE TO RETURN TO SENDER
FROM: NAME, ADDRESS AND PHONE NO.
DATE
x22+5
11-17
UNCLASSIFIED CO F I)
Use previous editions
FORM NO. 237
9_A1 I