-AIS2 503 PRICE UPOATE METHODOLOGY FOR USE IN MRINTENANCE 1/2EXPENDITURE LIMITS (MEL) FOR SECONDARY ITEMS(U) ARMYMATERIEL SYSTEMS ANALYSIS ACTIVITY ABERDEEN PROVING

UMCRSIFEDGRO . UR OSKS T L.NOV 84 FGO 14/1 M

ILL~hon sonh

EhsomEommommhI

,2.0

.1*8

- 1,

,I 'll' IllI I

MICROCOPY RESOLUTION TEST CHART

NATIONAL BUREAU OF STAIARDS - 1963- A

- ** .. . .

UNCLASS I FI ED,ECuRITY CLASSIFICATION OF THIS PAGE ("1a1n Does Entered)

REPORT DOCUMENTATION PAGE READ INSTRUCTIONSBEFORE COMPLETING FORM

I. REPORT NUMBER 2.'-VT ACCESSION NO. RECIPIENT'S CATALOG NUMBER

4. TITLE (and Subtitle) S. TYPE OF REPORT & PERIOD COVERED

Price Update Methodology for Use in Maintenance Technical ReportExpenditure Limits (MEL) for Secondary Items

6. PERFORMING ORG. REPORT NUMBER

LSO Project 0217. AUTHOR(&) S. CONTRACT OR GRANT NUMBER()

Uldis Rex Poskus, Gerald S. Garfinkel

S. PERFORMING ORGANIZATION NAME AND ADDRESS 10. PROGRAM ELEMENT. PROJECT, TASKLogistics Studies Office (AMXSY-LLSO) AREA & WORK UNIT NUMBERSUS Army Materiel Systems Analysis ActivityFort Lee, VA 23801-6046

11. CONTROLLING OFFICE NAME AND ADDRESS 12. REPORT DATEUS Army Materiel Command (AMCSM-PAS) November 19845001 Eisenhower Avenue Is. NUMBER OF PAGESAlexandria, VA 22333-0001 127

14. MONITORING AGENCY NAME A ADDRESS(I1 dillerent from Cottrollilg Office) IS. SECURITY CLASS. (of this report)

Unclassified

IS.. DECLASSIFICATION/DOWNGRADINGSCHEDULE

*1. DISTRIBUTION STATEMENT (of this Report)

Approved for public release; distribution unlimited.

17. DISTRIBUTION STATEMENT (of the abstract entered In Block 20. If different from Report)

-. IS. SUPPLEMENTARY NOTES

The views, opinions, and/or findings contained in this report are those of theauthor and should not be construed as an official Department of the Armyposition, policy, or decision unless so designated by other documentation.

"- IS. KEY WORDS (Continue at reverse side It neceseary and Identify by block number)

Maintenance, Maintenance Expenditure Limits, Secondary Items, Pricing,* .Price Index, Cost.

[20. AETRACr tcont as m rewasas .1* v nemmy m #l~eitfy by block number)

To prevent uneconomic repairs, the Army assigns a Maintenance ExpenditureLimit (MEL) to each reparable item. The MEL is calculated by applying apercentage factor to the Current Unit Replacement Price (CURP) of the item.'any reparable items have had no procurements in recent years, and thus amethod is needed to estimate the CURP. Five different sets of historicinflation indexes were evaluated for their suitability in estimating theCURP. A 14-year history of procurement data of Army troop support and -

.. ~OJAM 73 3 EOMcOF'MovesIsosTE UNCLASSIFIED

SECURITY CLASSIFICATION OF THIS PAGE (Whm Date Entered)

, * a *. . . . . . . . . . . . . . . . . . . . . . . .

UNCLASSIFIEDL. SECURI7V CI-ASSIVICATION OF THIS PAGE(fMis oe Oa ot. d.)

-aviation itemis was used to measure the accuracy of these index sets. TheSanalysis showed that the present procedure of using the latest availableprocurement price is substantially less accurate than using updated prices.However, each of the five index sets evaluated was approximately equallyaccurate in predicting current procurement prices. Thus, the Gross NationalProduct index was chosen as most suitable since it was the simplest to applyand was most readily available.

UNCLASSIFIED

SECURITY CLASSIFICATION OF THIS PAOR(Ifhon Data Etntf.od)

.................................

* ~***~~'~~ * ~ ~ 1T. -4 XT! .TFr4-j: 4r.r4

PRICE UPDATE METHODOLOGY FOR USE IN MAINTENANCE

EXPENDITURE LIMITS (MEL) FOR SECONDARY ITEMS

LOGISTICS STUDIES OFFICE

PROJECT NUMBER 021 __________

Acconsion For

NTIS -D T IC A9Unannnunt~ed

TECHNICAL REPORT By-

NOVEMBER 1984 Avaial1iltv Codos

Dist Spe,-ial

ULDIS REX POSKUS

GERALD S. GARFINKEL, PhDQULTINSPECTED

LOGISTICS STUDIES OFFICE

US ARMY MATERIEL SYSTEMS ANALYSIS ACTIVITY

FORT LEE, VIRGINIA 23801-6046

ABSTRACT

To prevent uneconomic repairs, the Army assigns a Maintenance Expenditure

Limit (MEL) to each reparable item. The MEL is calculated by applying a

percentage factor to the Current Unit Replacement Price (CURP) of the item.

Many reparable items have had no procurements in recent years, and thus a

method is needed to estimate the CURP. Five different sets of historic

inflation indexes were evaluated for their suitability in estimating the

CURP. A 14 year history of procurement data of Army troop support and

aviation items was used to measure the accuracy of these index sets. The

analysis showed that the present procedure of using the latest available

procurement price is substantially less accurate than using updated prices.

However, each of the five index sets evaluated was approximately equally

accurate in predicting current procurement prices. Thus the Gross

National Product index was chosen as most suitable since it was the simplest

to apply and was most readily available.

Report Title: Price Update Methodology For Use In Maintenance Expenditure

Limits (MEL) For Secondary Items

Study Number: LSO 021

Study Initiator and Sponsor: Directorate for Supply, Maintenance and

Transportation (AMCSM-PAS), HQ AMC.

I -°

...|*4,...

ACKNOWLEDGEMENTS

A peer review of this report was made by Mr. Matthew A. Rosenblatt and Mr.

Russell U. Farrell.

TABLE OF CONTENTS

Disclaimer..................... .... .Back of Cover Sheet

Acknowledgements. ..... . o . ......................... 1

Table of Contents ... o............................... iii

Executive Summurary, .. .. ....... .. .. . ... .. .. . .. o . . .. . ... 1

K1. Authority for the Study.. ...... o- ..... .....l

3. Bjctive.nd...............................1

4. Limits and Scope .........................-3

6. Findings and Conclusions ..... o . ... .. . .. . . .... 37. Recommendations... .... .. .. .. .. . .. o. . . . . . . . .. ..5

Main Report.... ....... o-........... o.........-...7

I Background .................... o........-......7II objective ................ o......o....9

IV Methodology ...... ................... -K.. V Analysis and Discussion.. .... . ... ...... -... 9

A. Pricing Discussion .o................ . .. ... .. .9B. Items to be Updated . .. . .. o . . . .o- . . . . . ... .12

C. Current Price Update Procedures ..... o...... o12D. Methodology Development.. ..... ... . .. . o .. ... .14E. Selection of Indices .....- o......-..... 1F. Grouping of Items for index Assignment ...... 18G. Index Evaluation for Updating Prices. ... o....24H. Implementation Considerations ....... o.......o421. Other Uses for Updated Prices... ...... -... 47J. Major Item Price Updates ....... ooo.... -... 47

VI Findings and Conclusions...... ..... .... -48VII Recommendations...... .. .. . ...... ....... o ... . . ... 49

Append icesA References ................................ A-B Inflation Index Values... ... .......... . oo..... .B-1C MSC Index Assignment to FSCs .......--......... C-lD Sensitivity Analysis of Error Statistics

and Distributions ...... . . . . . . . ... . .. .D-1

'6 -WW- '* .- 1.- 1.

FIGURES

Figure Page

h,. 2~. * AMDF Record. .. . ... .. .. . .............. .. . ... . .. 16

2. 4th and 5th Characters of the MaterielCategory Code ... ......... .. .. .. . .......... 20

3 . Sample FSC Listing . .. .. .. .. .. .. .. .. .. .. .. .. . .. 224. MSC Index Assignment toFSCs..................235. OSD and BEAndex Assignments .................256: Sensitivity Graph of Dollar Weighted Mean

Error Percentages...................... 47.Sensitivity Graph of Relative Dollars

Spent at< 0% Error .................. 4I8. Sensitivity Graph of Relative DollarsSpent at < 2Err...................45

V9. Sensitivity Graph of Relative DollarsSpent at <30% Error ....................... 46

TABLES

Table

1. Distribution of Army Used Items ............... 122. Ages of PAA Funded Depot Reparable Item

Unit Prices.............................. 13p.3. Summary of Output Results ................. 34. Index Evaluation Results - Error Statistics...365. Index Evaluation Results - Error

Distributions .. .. ... . ... . .. .. .. .......... .376. Sensitivity Analysis Results ....... .. . ..... ... 397. Parameter Definitions ........ . ........ .. . .. 40

iv

EXECUTIVE SUMMARY.

1. Authority for the study. The sponsor for this study is the Directorate

for Supply, Maintenance and Transportation, (AMCSM-SA), Headquarters, Army

Materiel Command (AMC).

2. Background.

a. Through use, items of Army equipment wear out, are damaged, or

break and require repair. At its depots, the Army Materiel Command has

the facilities and manpower to make these repairs. However, it is not

economical to repair some items because of their obsolescence or the

uneconomical consumption of resources. To determine if repair should .e

undertaken, a decision rule called the Maintenance Expenditure Limit (MEL)

is used. The MEL is a dollar value which is compared to the expected depot

repair cost (called the Unit Total Cost [UTOTJ at depots) for the item. If

the expected repair cost is less than the MEL, the repairs are made, but if

the repair cost is greater, the item manager for that item at the Major

Subordinate Command (MSC) is required to reevaluate the advisability of the

repair. His decision has both economic and readiness implications.

b. The MEL is defined in Army Regulation (AR) 750-1, in Field Manual

(FM) 29-23, and in Technical Bulletins in the 43- and 750- series. The MEL

is a maximum one-time repair allowance expressed as a specific dollar

amount which is a percentage of the Current Unit Replacement Price (CURP)

of the item. The MEL dollar value is a product of the MEL factor (a

percentage) and the current actual or estimated item price. At the

present time the MEL factor upper limit of 100% is used, i.e. expected

repair costs can be as high as the price of an identical new item.

1

- ° .°° - --t ,,.- •°- ,.• - - . % . .- - - . - D.. •.. ., . . .. .. ,, . .• % .. ° .o, °, . , -. °*.° °*

7 7 W-,

c. Army Regulation 750-1 uses CURP as the term for the 'price of an

identical or equivalent new item if bought and paid for today' and this

terminology is used throughout this report. Also, the term "repair" is

used here as a generic term for the various levels of repair performed at

depots i.e. inspect and replace, overhaul, rebuild.

d. AR 750-1, chapter 3 states that for major items, the source for

the CURP is the planning price listed in Supply Bulletin (SB) 710-1-1. The

SB 710-1-1 prices are prepared by the Depot Systems Command (DESCOM)

based on a methodology developed by the Logistics Studies Office (LSO) in

LSO Project 903, Major Item Price Update Procedures (MIPUP). For all other

reparable items, the source is the Army Master Data File (AMDF), prepared

by the Catalog Data Activity (CDA).

e. Interviewees at MSCs and depots state that these sources are often

not used and that prices are obtained from any source at hand.

Furthermore, the prices for many items in the AMDF are not current. The

CDA has found that 68% of the unit prices of Procurement Acquisition, Army

(PAA) finded depot reparables in the Commodity Command Standard System

(CCSS) National Stock Number Master Data Record (NSNMDR) are older than

two years, with 49% being older than five years. Since item prices

generally increase over time because of cost growth, if the existing older

AMDF prices are used in the MEL decision, then the Army could be scrapping

items that should conceivably be repaired.

f. To insure that an appropriate price from an acceptable and

consistent source is used in MEL decisions, methodologies for bringing

prices up to date and for keeping them updated are required.

2

3. Objective. To develop a procedure for updating depot reparable item

replacement prices used in Maintenance Expenditure Limit decisions.

4. Limits and Scope.

a. Aviation Systems Command (AVSCOM) and Troop Support Command

(TROSCOM) depot level reparable items are investigated but because of an

existing methodology for major items (MIPUP), the study emphasis is on

secondary items.

b. The updated prices will be used only for MEL decisions.

c. Repair can be performed at the several Army maintenance echelons

- organizational, Direct Support (DS), General Support (GS), Special Repair

Activity (SRA), or Depot. The focus of this study is the repair per-

formed at the Depot level and the use of the CURP in MEL at this level.

d. Preventive maintenance is not considered.

5. Methodology. Inflation indices from various sources were applied to

groupings of the reparable items to update their prices to FY84. Selected

index-updated item prices were compared to actual item prices and, based

on the degree of correlation, the best update method selected.

6. Findings and Conclusions.

a. Grouping Army items for index assignment can best be accomplished

via the item Federal Supply Class (FSC) code. This considers only

existing systems and must be caveated since certain classes of items (i.e.

printed circuit boards) are managed by multiple MSCs.

b. Each of the five index sets investigated - MSC, Bureau of Economic

Analysis (BEA), Office of the Secretary of Defense (OSD), combined BEA/OSD,

and the Gross National Product (GNP) Implicit Price Deflator - was able to

predict current procurement prices with similar accuracy. All five were

3

.. . . . . . . . . . ...

".. .*** ~ .'. 7-. V. ... '.. . ."... '.'.. . .'"".." " .".-."-- ","- -" ' - ,,'.,'J '"

shown to be superior to the present procedure of using the latest

procurement price. This is based upon analysis of a 14 year procurement

history of a Troop Support and Aviation Readiness Command (TSARCOM - now

two commands, the Aviation Systems Command (AVSCOM) and the Troop Support

Command (TROSCOM)) items.

c. AR 750-1 currently mandates that the AMDF price be used to

calculate Maintenance Expenditure Limits for secondary items. This AMDF

price is usually the price paid when the item was last procured, which, as

cited above, is often an inaccurate indicator of the true present price.

d. The methodology developed in this project provides estimated

CURPs satisfactory for use in the MEL decision process. The amount of

effort required to produce a workable methodology for establishing useable

CURPs and for providing periodic updates was balanced against the highest

attainable accuracy of the CURPs. However, three caveats are in order.

First, the FSC does not differentiate between certain items such as printed

circuit boards that are managed by multiple MSCs. Second, since the

selection of the update index was made using only AVSCOM and TROSCOM

items, there is a possibility that the GNP may not be the best updating

index for the other Commands. Third, care should be taken in differen-

tiating between actual and estimated CURPs. The estimated CURP should not

be considered or used as an actual price unless its source was a recent

procurement. The older the price that has to be updated using indices, the

greater the potential error in the CURP because of the non-inflationary

factors that cause price change. Therefore, while the CURE for these

commodities is better than the existing price, its shortcomings must be

recognized.

4

-': " - '- . . .,i-.w - ~. """.............. ..... i.........

e. This methodology will insure that CURPS used in the MEL decision

have one auditable price source available to all users and that prices that

were intended for other applications are not used in this decision.

7. Recommendations

a. In developing a MEL for reparable secondary item, the Gross

National Product index should be used to update item prices that are more

than one year old. The rationale is that the GNP index appears to be as

accurate as any of the other index sets considered, but it clearly is easier

to apply and, unlike the other index sets, is applicable to all items - does

not require that items be grouped for index assignment.

b. These estimated current replacement prices should be resident on

and accessible from an automated system such as the CCSS.

c. Updated prices should be projected to the year of the overhaul

program by means of the OSD projected inflation rates. This will require a

change to AR 750-1 which currently mandates using AMDF prices for

developing secondary item MELs.

d. A study should be initiated to determine the feasibility and

possible advantages of using the GNP updating procedure for prices of major

items. The rationale is that the GNP updating procedure is simpler than

the current procedure and would be much easier to automate.

5

MAIN REPORT.

I. Background.

A. Through use, items of Army equipment wear out, are damaged,

or break and require repair. At its depots, The Army Materiel Command

(AMC) has the facilities and manpower to make these repairs. However, it

is not economical to repair some items because of their obsolescence or the

uneconomical consumption of resources. To determine if repair should be

undertaken, a decision rule called the Maintenance Expenditure Limit (MEL)

is used. The MEL is a dollar value which is compared to the expected depot

repair cost (called the Unit Total Cost [UTOT] at depots) for the item. If

the expected repair cost is less than the MEL, the repairs are made, but if

the repair cost is greater, the item manager for that item at the Major

Subordinate Command (MSC) is required to reevaluate the advisability of the

repair. His decision has both economic and readiness considerations. A

more in depth discussion of MEL may be found in the Logistics Studies Office

Research Note 21-1, dated October 1983, (1) - (see References).

B. The MEL is defined in Army Regulation (AR) 750-1 (2), in Field

Manual (FM) 29-23 (3), and in Technical Bulletins in the 43- and 750- series.

The MEL is a maximum one-time repair allowance expressed as a specific

dollar amount which is a percentage of the Current Unit Replacement Price

(CURP) of the item. FM 29-23 discusses MEL and its uses as follows:

Before repairing an unserviceable item,economic reparability must be determined.Factors considered are the cost of replacing theitems as compared to the cost of repairs. Whenrepair costs exceed maximum expenditure limits,cannibalization or disposal of the unserviceableitem is undertaken, unless necessity dictatesotherwise. In some cases, the criticality of theitem and the difficulty to replace it requirerepair regardless of cost.

7

--------------'-." " " .... ... ".........................................."..............." -" •"-'-" °','

C. The MEL dollar value is a product of the MEL factor (a

percentage) and the current actual or estimated item price. At the

present time the MEL factor upper limit of 100% is used, i.e. expected

repair costs can be as high as the price of an identical new item.

D. Army Regulation 750-1 uses CURP in the sense of 'the price of

an identical or equivalent new item if bought and paid for today.' In this

report, a price is current if it is no more than 12 months old and the AR

definition, with this interpretation of, current is used. Also, the term

"repair" is used here as a generic term for the various levels of repair

performed at depots i.e. inspect and replace, overhaul, rebuild.

E. AR 750-1, chapter 3 states that for major items, the source

for the CURP is the planning price listed in Supply Bulletin (SB) 710-1-1

(4). The SB 710-1-1 prices are prepared by elements of the Depot Systems

Command (DESCOM) based on a methodology developed by the Logistics Studies

Office (LSO) in LSO Project 903, Major Item Price Update Procedures (MIPUP)

(5). For all other reparable items, the source is the Army Master Data

File (AMDF), prepared by the Catalog Data Activity (CDA).

F. Interviewees at MSCs and depots state that these sources are

often not used and that prices are obtained from any source at hand.

Furthermore, the prices for many items in the AMDF are not current. The

CDA has found that 68% of the unit prices of Procurement Acquisition, Army

(PAA) funded depot reparables in the Commodity Command Standard System

(CCSS) National Stock Number Master Data Record (NSNMDR) are older than

two years with 49% being older than five years. Since item prices

generally increase over time because of cost growth, if the existing older

(lower) AMDF prices are used in the MEL decision, then the Army could be

8

' "o" °" . "'° "'" .. ....". . . . .."". . . ..'. . . . . ..-.'. . . . . ..". ..".0 .°.-'''.-," , .- " "- " ° " " '', -" ° o° '',"- ''"o' °°"",'

.?-.< - '[.*.-.' '= ,. :'."./. . "- "-- "-'" """," '""" " " • " """" . . . .",'-. .". .". .". .. ... ".. . . .".. .".. . ."".. .""."."'.. . . . . . . . "

scrapping items that should conceivably be repaired.

G. To insure that an appropriate price from an acceptable and

consistent source is used in MEL decisions, a methodology for bringing

prices up to date and for keeping them updated is required.

II. Objective. To develop a procedure for updating depot reparable

item replacement prices used in Maintenance Expenditure Limit decisions.

III. Limits and Scope.

A. Aviation Systems Command (AVSCOM) and Troop Support Command

* (TROSCOM) depot level reparable items are investigated but because of an

existing methodology for major items (5), the study emphasis is on

secondary items.

B. The updated prices will be used only for MEL decisions.

C. Repair can be performed at the several Army maintenance

echelons - organizational, Direct Support (DS), General Support (GS), Special

Repair Activity (SRA), or Depot. The focus of this study is the repair

performed at the Depot level and the use of the CURP in MEL at this level.

D. Preventive maintenance is not considered.

IV. Methodology. Inflation indices from various sources were applied

to groupings of the reparable items to update their prices to FY84.

Selected index-updated item prices were compared to actual item prices and,

based on the degree of correlation, the best update method selected.

V. Analysis and Discussion.

A. Pricing discussion.

1. The ideal in this project is to provide a methodology that

requires minimal effort from the MSCs in its implementation, update, and use

and that provides reasonable and accurate CURPs.

9

.1~ -r . -r-r- - r r- -rrr r. - - . - -7W

2. In pricing, accuracy is difficult to measure. The price

of an item recently procured is an actual price and is accepted as

completely accurate. However, this price is only accurate for that one

producer at that particular point in time. Even in the same time frame, a

change in quantity or producer may result in a price which is different

though still accurate. The price charged by a different producer in the

same time frame may be different though still an accurate price. There

are no absolute prices that can be used as standards. An expected price

can be calculated if prices could be solicited from all potential producers

of that item. Because of differences in production facilities and workload

the prices that all potential producers provided would be different but

generally similar. Each price is an accurate price but no one price is the

accurate price. The average of these prices is also not an accurate price

though it is more representative of the price that the item will cost at a

point in time. Actual item prices will vary from contract to contract and

time period to time period. If the same producer were used for each

successive procurement of an item, then prices would be more continuous and

predictable. This is not generally the case. Since contracts are usually

let by competitive bidding to the lowest responsible bidder, producers can

change from procurement to procurement as can unit prices. Under these

conditions, the best CURPs available are the actual prices from producers

when items are procured. Since many items are not procured regularly,

several years may elapse between procurements and thus price updates.

3. Producers will rarely provide firm item prices on request

unless they are paid for their efforts. The Defense Acquisition Regulation

(DAR) does not permit expenditure of funds for the acquisition of price

10

data only. Also, because of the large number of items under consideration,

the task of acquiring actual prices would be monumental and the burden

would be on the MSCs. Further, since this level of accuracy is not

required in MEL applications (see discussion below), the large expenditure

of resources required could not be justified. The large number of items

also required that a computer be used for assigning indices to the items and

for performing future updates.

4. Indices also do not have an absolute accuracy since they

are derived from the changes in price for an item or set of items over time.

Indices that are developed for application to a group of similar items are

relatively accurate for that group of items but the variance within the

group will diminish the accuracy for any one individual item. Therefore

the smaller the group of items that an index is applied to, the smaller the

potential for gross error. The level of accuracy that is acceptable for

MEL applications may be too gross for other applications.

5. In its application, the MEL is a guide, an aid in

determining the adviseability of allocating funds to maintenance rather

than procurement. It has not been applied as an absolute decision

criterion. In practice, the MEL process has a lot of flexibility built into

it. The item manager is responsible for satisfying demands from the field

and readiness can be affected by his ability to satisfy these demands. As

demands are satisfied, replenishment of stock is necessary. The item

manager has two primary sources for replenishing stocks - by procurement

and through maintenance of unserviceable assets. Procurement usually

requires more time than maintenance. Because of readiness implications,

items are often repaired at a cost that exceeds the MEL.

11

";'- ,"+-',. ..,a',a ",.." " " .:.:,-" 5".,]:.:,-,,, ....................................................... ....................................-. '..'.-.',-.',--.'.'.-_'.',, .-. '..'.-.'..'.-.,..,',.

B. Items to be Updated.

1. The Catalog Data Agency reports that the Army uses

1,070,397 different items and components of equipment (different NSNs). Of

these, 360,433 (see Table 1) are Army managed (as a point of interest,

660,837 are Defense Logistics Agency [DLA] managed Army Stock Fund [ASF]

items). CDA states that of the 1,070,397 Army used items, about 5%

(53,000) are depot reparable.

TABLE 1

DISTRIBUTION OF ARMY USED ITEMS

Major Secondary ASF OMA+Otherl Total

Items Items Items Items Items

Army Managed 36658 44052 278570 1153 360433I

Managed by Others 998 174 708620 172 709964

Total 37656 44226 987190; 1325 1070397

2. Of the Procurement Acquisition, Army (PAA) depot

reparable items, many have prices that are no longer current (see Table 2).

Table 2 shows that 79% of the PAA item prices are not current.

C. Current Price Update Procedures

1. When current secondary item prices are needed at MSCs,

they can be individually prepared using the price of the item at its last

update and the inflation indices developed by the MSCs for their own items

or the inflation indices developed by the Office of the Secretary of

12

A .*.hm* ............. ... ..

Defense (OSD). These indices were developed for application to major items

but are also used on secondary items. major item price updates are

discussed later in this report. The indices and the techniques used by the

MSCs for developing these indices have been approved by HQ Army Materiel

Command (AMC) and are explained in the DARCOM (AMC) Historical Inflation

Report (6).

TABLE 2

AGES OF PAA FUNDED DEPOT REPARABLE ITEM UNIT PRICES

Age of Unit Percent of Items

Price in Years

0 4

up to 1 17

up to 2 11

up to 3 8

up to 4 6

up to 5 5

up to 6 4

More than 6 years 45

Source: CDA

2. Each MSC has an inflation focal point, usually within the

* Plans and Analysis Division. This focal point is the resident expert on

inflation indices for the MSC commodities.

13

* * * S S. ~ ~ , .. h ' . '' '

D. Methodology Development.

1. The alternatives for updating the prices were to develop

unique indices for individual items or groups of items using historic price

data or to use indices developed by others. While the first alternative

would conceivably provide more accurate prices the effort required to

* develop up to 40,000 sets of indices could not be justified. Therefore it

was determined to develop a methodology that uses existing indices.

2. Price updates using existing historic inflation indices

provide the needed price for MEL purposes while not burdening the MSCs with

additional work to either provide prices or unique indices for the periodic

updates of the prices. As mentioned above, the MSC indices and the method

* of producing them have been approved by HQ AMC and the OSD indices, the

Gross National Product (GNP) index, and the Bureau of Economic Analysis

(BEA) indices come from outside AMC and have been approved for use at

those levels. Therefore, the indices were not analyzed for their

appropriateness or applicability to the groups of items on which they are

used.

3. For methodology development and test and comparison

* purposes an FY82 AMDF data tape was used. Data on the tape was screened

for Procurement funded secondary items with a listed cost of over $1000,

recoverability code of D or L (depot reparable), and segregated by source

of supply code (MSC). The resulting file had almost 16000 NSNs. The

selection of items with a price over $1000 was made to decrease the data

* base of items to a manageable level. It was assumed that depot reparable

items costing less than $1000 would not be unique as a class and require

different indices. Each record on the tape provides 41 fields of

14

information about each item. The information of interest was the NSN,

Materiel Category Code, and short nomenclature (see Figure 1). AVSCOM and

TROSCOM (previously one command, Troop Support and Aviation Materiel

Readiness Command [TSARCOM]) items were selected for testing because of

their diversity.

4. The approach was to identify existing indices that could

be used for updating prices, then group the items in such a manner that

these indices could be assigned to the groupings. This approach entailed

grouping together items that are similar in function. Then indices were

assigned. Finally, the best index alternative determined by an analysis

and a comparison to historic prices was selected as the update method.

5. This grouping of items was the first step in the process

to bring all prices up to date as of FY84. The next step was to develop a

method of keeping these prices updated and accessible.

E. Selection of Indices.

1. Different commodity oriented sets of indices in use by

AMC were available for assigning to the items; indices produced by the

MSCs, by OSD, BEA, and the Bureau of Labor Statistics (BLS). In addition,

the Gross National Product (GNP) index was included.

2. The MSC indices are developed by using BLS Producer Price

Indices (PPI) and labor rates weighted by their contribution to the cost of

the item or by applying the PPIs directly. Then the index for that item is

applied to the group of items which it represents. HQ AMC consolidates

these indices in the DARCOM (AMC) Historical Inflation Report and these

indices were used in this project. Each MSC produces Research and

Development (R&D), end item (major item), and component indices. For this

15

0 'i

Ca .~~ a -a - j ai c ft.a %Aga.a

nOOf 00 -4 . .00"

CP0 n - 40 in -s a%

* * .0 .0 1- CP 0 ZPovs rn A4 (b 0Aa h~a n LU f

x Qi . Qo mom ofU-4gb

~uo IUWI @~LA.

%ni kL nk o t in ;ni A~ II&. 0 .2

LLJ0 M3 a-j@3 im 02

CM 0 0 0 CD 4o CD0CD00

ac CIO -P 0 003*0 CI3C -a3-

00010La.

L"-

cc0CC uIL"4

co.

(A0

rum M WM-

0V" owl ON=3~ *Np

u~~~aO~w in00 00 0 0 a

416

%JU

project component indices were used where available and end item indices

for components if component indices were not available. For example,

AVSCOM produces R&D, Airframe Production (component), Engine Production

(component), Avionics Production (component), Aggregate Air Vehicle

Excluding Avionics (end item), and Aggregate Air Vehicle Including Avionics

(end item) indices. The secondary items investigated in this project

required only the airframe, engine, and avionics production indices.

3. TROSCOM, because of the diversity of items it manages,

has the largest number (10) of different indices. The Communications and

Electronics Command (CECOM) uses one index for its items. The other MSCs

have between two and six indices each. The 29 index titles are descriptive

of the items on which they are to be used. For convenience, each MSC index

* set was assigned a code e.g. l1' is the code for the AVSCOM Airframe

Production Index set (other codes are shown in Figure 4).

4. The OSD produces nine index sets, two of which are

applicable to Army items. These indices are based on BEA data but are for

cost growth due to inflation only.

5. The BEA produces seven index sets, six of which were used

in this project. These indices are produced using selected contract

(actual) prices but are only available from 1973 to the present. These

indices measure cost growth whereas the MSC and QSD indices measure only

the inflation component of cost growth. The items were grouped by

similarity of inputs, prices, end use, and expected price movement.

6. Of the 106 Bureau of Labor Statistics indices tabulated in

the BES Monthly Labor Review (9), 22 had application to Army items. The

assignment of these indices would follow the same rationale as that for MSC

17

indice assignment but actual assignment was not attempted since the MSC

indices are based on the BLS indices.

7. The BLS publishes Producer Price Indices for a great

variety of items and commodities a few of which can be used directly for

Army items. Also, many of the MSC derived indices use PPIs as components

of their material and labor weighted indices. It should be noted that

TROSCOM uses these PPIs directly for its items.

8. One of the best known inflation indices is the Gross

National Product Implicit Price Deflator - commonly called the GNP index.

The raw Gross National Product (GNP) is a dollar statistic designed to

measure the total activity of the general economy. Multiplying the raw

GNP by the Bureau of Economic Analysis developed GNP index produces the

(inflation) adjustd GNP. Since this adjusted GNP is expressed in constant

dollars, its annual values can be compared to calculate economic trends,

periods of recession, etc.

9. Another well known set of inflation indicies is the set of

OSD inflation guidance indices. These are actually inflation predictors

that are based on assumptions about future economic conditions made by the

Office of Management and Budget (OMB) in the White House. The inflation

guidance flows from OMB through OSD to DA and then to AMC components.

Note that these indices are essentially predictions of future inflation;

they are not measures of historic inflation

F. Grouping of items for index assignment.

1. Four alternatives were considered for grouping items and

assigning indices to them. The method of grouping the items was critical

to the success of this project. Since automation was necessary because of

18

,,, .:~.K + ° ... ° ,.+* . ... .. * . *. .. ...- . . .* .* . ,*°J.

the large number of items under consideration, various classification

schemes were attempted.

2. The items in the AMDF file were first segregated by the

managing MSC using the Item Manager Code (see Figure 1). Then each group

of items was sorted in three ways (i.e. NSN, Materiel Category Code,

nomenclature) to determine if subgroups could be defined to fit the

available indices for that MSC.

a. Manual item by item assignment either by MSC

personnel or by others requires that each item be examined and each

individually assigned one of the available indices. While this method of

assignment of indices may result in the least amount of misclassification, it

was determined that the amount of time and effort required to do this for

both initial methodology development and future updates was the greatest

of all the alternatives. Also a degree of subjectivity in the classifi-

cation is inevitable. Therefore manual assignment was rejected.

b. Automated assignment using the Materiel Category

Structure. The Materiel Category Code (code structure may be seen in AR

710-1 [6)) is an alphanumeric code consisting of five segments or codes:

ist character Materiel Category and Inventory Manager2nd character Appropriation and Budget Activity Account3rd character Management Inventory segment4th character Specific group/generic code4th and 5th characters Weapons system/end item identi-

fication code

Index assignment using the 4th or 4th and 5th characters (see Figure 2) of

this code is generally applicable to specialized items such as bridging and

railroad equipment but for many items these codes are not sufficiently

specific for index assignment. The code will identify an item as being a

spare or repair part managed by a specific MSC but identifies the end item

19

:. .: :.. . ..

cod"s cod"4thVftmapo Svat/ 4th Weapon Sysm/.& End kern & End hemStb Sill

Tanks Tanks

JD Tank. Combat. 76MM JV Recovery Vehicle M578Gun M41 /M4 1A 1M41A2/M41A3 JW Rife. 106MM ONTOS M50/

AE Tanks. 105/120MM. M1 JZ Miscellaneous Tanks(MBT 70)Pas

J9 0,npe Tank Mui-ApliCatiorn

Gun.M 10/M 03AI /Combat TacticalM 103A2 w/Trainer M 119 adSpotVhce

.JO Tank Combat. 90MM Gun VbclrCmoetM47 MA Gun, Anti-Aircraft. SP

40MM M42/M42A1L~J14 Tank. 105MM. M60A3 TTS

K8 Howitzer 105MM 5PM?'iJJ Tank. Combat. 105MM M7B1/M7B2

Gun M60/M6QAl M6A3/M48A5 KC Howitzer SP 105MM

M52 /M 52A IJK Tank. Combat. 152MM Gun

M60A2/and Trainer M37 MD Gun Field Artillery SP1175MM M107 How8'

AL Trainer Driving. M34 for M I 10 SeriesM60 Tank Series

ME Howitzer. Heavy FT SPJIM Subcaliber Mount As- 105MM M 108

semblies Universal IM 179)CVC-D 17-87 (Brewster) KF Howitzer FT SP 155MM

M 109 Seftes.JP Combat Eng vehicle FT

M728 KG Howitzer SP 155MMM44/M4"A1

JQ Armored /Reconn /AirborneAssault Vehicles 1 52MM MM Howitzer Heavy FT SP 8-M551 w/Trainer M40 M55 155 Gun M53

JR Stmulatot Tank~ Gunfire KIL Gun Anli-Asiraft 20MMM4/M4A1 for M42 M48 SPXM 163 WADS) XM 741

M60 Tanks VULCAN Chassis

JS Bulldozer EM Tank Mounted MN Howitzer 1 55MM SPM6 'M8/M8A1I/M8A2 XM 179M8A3/M9 KZ Miscellaneous Combat

JT Recovery Vehicle MS 51 VehiclesM74/M88 K9 Other Combat Vehicle Multi.

JU Qun Ft 90MM M56 Application Parts

FIGURE 2. 4TH AND 5TH CHARACTERS OF THE MATERIEL CATEGORY CODE

20

that the part is used in, e.g. tank type, without specifying whether it is a

tool, engine or engine part or motor vehicle part. Since the MSC indices

require a more detailed classification, the -use of the Materiel Category

Code was inappropriate in this application.

c. Automated assignment using nomenclature. The no-

menclature provided with each AMDF record is generally sufficient for

identifying an item with an index. 'Unfortunately the nomenclature is not

sufficiently standardized to provide consistent automated assignments and

therefore its use was also rejected as inappropriate.

d. Automated assignment using the Federal Supply Class

(FSC). The FSC appeared to be the best vehicle for index assignment. AR

708-1 (7) lists 616 FSCs in 78 groups, an excerpt of which is shown in Figure

3. The FSC class title together with the commodity manager (MSC) for each

item were used to assign an index to each FSC as follows.

(1) The indices for the responsible MSC were surveyed.

(2) If the FSC class title and MSC code indicated that

one of these indices was appropriate, it was assigned to the FSC.

(3) If an appropriate index could not be identified, the

indices from the other MSCs were surveyed and an index from these selected

and assigned. The assignments may be seen in Figure 4. once the indices

were assigned, the appropriateness of the assignment was examined for all

AVSCOM and TROSCOM items.

3. BEA Indices. The six BEA indices were assigned by

combining MSC groupings. All aircraft and components were assigned the

Aircraft index; all ammunition was assigned the Ammunition index; all

communications, electrical, and electronic items were assigned the

21

* - -. .... . . . . . . . . . * .--. ..... ..... %

FSC ArmyC'ius; TWOi. IAINICAI W35 (euii.. through 30imm ...... ... O1411(0 (unb. over I4hom up to 75nai ..... O

1(015 Guns. 75mm thrugh 125mm . ................. Fo102(0 Coun. over 121%mm through I - mr ................................ BF

1025s tWiii, over I541iuuu through 2(inint..............................F141.3H1 Gujib. over 2(ghtm ihmrugh 3(Nlnm OF1035 (;un.-, over 3(M.umni . . . . . . .. . . . F---- ('4I heical Wealimi & Equipliwni .. .B

I.E145 Lium-heraiTorpndo & Depth Charge ...... F

105 egausing & Mine Sweeping Equipment .... ............ CT3fl amuflage & Detio Equipment ... CT... ...

TD1Aaaenabfiew Interchangeable Between Wempurna in Two or More Clas...................... BF11095 Miscellaneous Weapons ................ F

I1I1 r Nuclear homhs . . . . .. . . . . . . .. . . . . . . . . . . . OF1110 Nuclear Projectile.11 15 Nuclear Warheads &Warhead.Section...............I..........................OF1120 Nuclear llq*h Charges . . . . . . . .. . . . . . . . . .. . . . . . . . O1125 Nuclear Deamolition Charges ............. .. .. F1127 Nuclear Rockets.. . . . . . . .... . . . . . . . . . . . . . . . . . BF11.30 Conversion Kits. Nuclear Ordnance.... ... ... .................................... BFI1135 Fuzing& Firing Devices. Nuclear Ordnance .. ................................... BF1140 Nuclear Components .H.... .... -.. F1145 Eiiplosive&t Pyrotet-hniwConsponents, Nuclear Ordnance...............................BF1190 Specialized Test & Handling Equipment. Nuclear Ordnance................. ............ BP1195 Miscellaneous Nuclear Ordnance...................................F12i10 Fire Control Directors . .. H . .. . ......... F1220 Five Control Computig Sights and Oevices ......................................... BF1230 Fire Control Systems. Complete ............ I...... ........................ F1240 Optical Sighting & Ranging Equipment................... ....... I..............F1250 Fire Control Stabilizing Mechanism.................... I....................BF12W0 Fire Control IDesignoting&A Indicating Equipment... ....................... .... HBF

S1265 Fire Control Transmitting a Receiving Equipment, except Airborne ........... H F1270 Aircraft Gunnery Fire Control Components..................... BF1260 Aircraft Bombing Fire Control Component ................... B1286 Fr Control Radar Equipment, except Airborne........... ........................ By1287 Fire Control Sonar Equipment.... ...................................... BF1290 Miacellaaeous Fire Control Equipment......... .. I....... I.............. ........... F130 Ammunition. through Jines ..... ............................... HBF

Ammunition, over 30mmn up to 75mm .............................................. HBF71315 Ammunition. 75mm through 125mm......................................... ... HBF

1320 Ammunition, over 125mm, . ..... ......................... HBFmombs ..................... ......... HBF

1330 Grenades .. . . . . . ... .. . .HF133 Guided Missile Warhead. & Explosive Components ............... BD1337 Guided Missile& Space Vehicle Exploive Propulsion Unit.. Solid Fuel & Campomensa HD1338 Guaided Missile & Space Vehicle Inert Propuleion Units. Solid Fw.I&Cempmesta .... H... B1340 Rockets Rocket Ammunition & Rocket Component....................... .... ...... HBF

-- -= Lnd Manes .. . . . . . . .. . . . . . . HF1350 U~nderwater Mine InertComponents ............................... ......... F

135 Underwater Mine Explosive Components................................ .. H F1355 TorpedolInert Compunenta..... ............... ................ ..... F1366 Torpedo Fxplosive Componenta.... .......... ................... ............ F

D30 iepth Charge Ine-rt Components ........................................... HOF

FIGURE 3. SAMPLE FSC LISTING

22

. . . ~ .-

. . . . .. . . . . . . . . .... .,. . . ..-g

oo

41% % 0 'c

p I c" V 4%

I 0% I%0 0% IC 4 %0 (~4 00 If

%e. N %GO 4

I- I" C4 s

4 IV

V %n ,-fr- 0%

0coo 00 0 0 I00 10 0%" V c

at I c31 0%0 %I%0

-% I 0%0 %

I U%4 C" C 4O IV V " % c xI0 00 i owl %c c V11%cc 0 .%1 a

II"V 4W C4 &oo ne C4 (%c V t#% 00 0%c " w 4PI -0 DW WI~ 4 1% M W%~ 4-~ %nz J0 0% 6t t %0C A C OC.

* . I~ - 'C4 -0,D,-~ C(""V%""MVN VI r 0%I 11 1 I 1C% 0o o 01 11 11 1 v I vI r- I %aI I011I1I I I

IN W% m C4 0 C" *a c00 .OCS10%~. ("% V en C r-.M NIM C44Ci- (-. IV (C4 C4 V IV V~ %DC V% %

I VI1AuJ-

I ZZ _- CA $A EI.- coI000 0 U. .- Ui I.- z~ 0m Ir(A z - z U. -- LI

I >ce I- kA W- e - IAIw a'LI OZ WI Z ae A Lu2 .J w )- > I--I

I c . l0 1-.- w 0 -eZ t- I-Z x u w w Imu EA(c" JZ - Xe~ w <A F% - ac#A> 0,ZO I

wl ul i, ix.w Z w ~w0 0 a we.Iw W- Dwwu0 Cie (a0I--. IL Z =- w 0 z 2 &

I I Z -w3 6 w o 1ZA 00uj(AI f.IA 9:)> ZI - &2jzz e. 1.- 1. - w u L- 4 I.,J. 0 <I

I 0 4AA O Z 00 au ~I Z I j CZ uyw 0 iZ- w I.W - 0 -- IA Z()eII z A00 %<-OW FJ0I e

w I ZZ -uJI-IZ"C- CL OC Q- >_jW t Z W -- WIL I I o WL 0I I.-ww -- u x1 ~ ZU e0 ZI<-C O

w -0 4 Im > ~ 3 &I~ a0.~ u~~~0.'w. 0 1.-w<JI. IW W Z -%A -I- - IA 0ac z Z-Z

I~~ ~ ~ ~ ~ w I0 «~~.-~ U.u0 C3 z=- A0104AW0- J ww&0Z

of Ix OW ac o-4(% f 'PC 0 C LL A z . u=-m j

, i i-4(4zfo

23

w-

K Electronic Equipment index; all missiles and components were assigned the

Missile index; all wheeled and tracked vehicles and components were

assigned the Vehicle index; all other items were assigned the other

* Equipment index. Index assignments may be seen in Figure 5.

4. OSD Indices. For the two OSD indices, assignment to items

was relatively straight forward. The listing of MSC indices assigned to the

FSCs was screened. All index codes for aircraft and components, missiles

and components, and wheeled/tracked combat vehicles (WTCV) and components

*were assigned the Missile/Aircraft/(WTCV) procurement index. All other

items were assigned the Ammunition/Communications and Electronics/other

procurement index. Assignment of an index using manual methods or

nomenclature were not applicable to these indices for the same reasons that

they were rejected for the MSC indices. Assignment using either the

Materiel Category Code or FSC is possible for these two-indices but since

assignment by FSC appeared to provide a more descriptive classification it

was selected for this set. Index assignments may be seen in Figure 5.

G. Index Evaluation for Updating Prices.

1. The data on a magnetic tape of AVSCOM and TROSCOM past

*procurements was analyzed using a program that selected pairs of

consecutive procurements or purchases of an item. The basic procedure was

to use consecutive purchases of the same item to evaluate the accuracy of

each index set. The estimated price was computed by using the appropriate

index to update the earlier procurement price to the time of the next

* procurement. The actual price is then the next procurement price. The

* error involved is thus the difference between the estimated and the actual

price. This was done for all the selected procurements for that item. To

24

Index Codes and Titles

MSC BEA OSD

AIRFRAME PRODUCTIONENGINE PRODUCTIONAVIONICS PRODUCTION AIRCRAFTAIR VEHICLES LESS AVIONICSAIR VEHICLES WITH AVIONICS MISSILES/

AIRCRAFT/

MISSILE PROCUREMENT MISSILES WHEELED TRACKED/GROUND SUPPORT EQPMT COMBAT VEHICLES

CONSTRUCTION EQPMNTVEHICLE ENGINESMOTOR VEHICLE PARTS VEHICLESTOOLING

TACTICAL VEHICLES

OTHER WTCV

AMMCUNITION OVER 3Onmn ANMUNITIONAMMUNITION UNDER 3Omm

COMMUNICATIONS AND ELECTRONIC

ELECTRONICS EQUIPMENT

COMBINED ORDNANCEAND ACCESSORIES

SIGHTING AND FIRE CONTROL AMMUNITION/

RIFLES, REPEATING, CENTER FIRE COMMUNICATIONS/COLLAPSIBLE TANKS OTHERAIR CONDITIONERS, HEATERS PROCUREMENTALL BRIDGING OTHER

POWER PLANT EQUIPMENTFIRE FIGHTING EQMNT,

FORKLIFTS

7PUMPS, COMPRESSORSTHEODOLITES, SURVEY INSTRUMENTS

GENERATORS, LIGHT SETSRAILROAD EQPMNTALL OTHER ITEMS

FIGURE 5. 0SD AND BEA INDEX ASSIGNMENTS

25

v"

?,1 ~ - * * ~***

effectively compare and combine errors occuring at different times, the GNP

index was used to translate the error into constant dollars of a particular

base period.

2. A model was developed. The model was designed to

evaluate each index and index set for its ability to accurately update

prices by analyzing the prediction error defined above. A filter

(discussed later) was incorporated to logically discard certain pairs of

prices. Various measures of prediction accuracy and variability were

applied. The model was implemented on the Burroughs 6800. The computer

program was written in the Burroughs version of FORTRAN IV. (The

Burroughs FORTRAN 77 did not have a bit manipulation ability and thus could

not be used to unpack the packed number fields in the data tape. The

FORTRAN 77 was used however as a preprocessor, to convert variable length

records into a fixed size record readable in FORTRAN IV.)

3. Inflation indices used.

a. Daily inflation rates. The index set values were

taken from The DARCOM Historical Inflation Report Through FY 1982, (6).

In that report, most of the indices are listed with their compounded values,

computed so that the index corresponding to the base year FY82 has the

value 1.00. A listing of these values is in Appendix B. For use in the

model, the yearly inflation rates were converted to daily inflation rates.

b. Assignment of indices. For each item, the FSC is

first noted. The FSC designation is then used to determine the MSC index,

see Appendix C. The MSC index is used to determine the BEA index, which in

turn determines the OSD index (see Figures 4 and 5 above).

26

c. The MSC, OSD, and GNP indices begin with FY68

whereas the BEA indices begin with FY73. For the time periods beginning

prior to FY73, a combined OSD/BEA index was created. This combined index

has the same categories as the BEA indices. For each category, the

combined inflation rate is the BEA rate for the periods after FY73 and is

the rate for the corresponding OSD category for the periods prior to FY73.

d. For completeness, each item also had associated with

it the GNP index (i.e. the GNP Implicit Price Deflator) and the constant

index 1.00 (no updating). Thus six potential updating index sets can be

applied to most items (MSC, BEA, BEA/OSD, OSD, GNP, NO UPDATING). The pure

BEA index was only used for comparing estimated and actual prices when

both procurements occured in FY73 or later. For uniformity, items with no

assigned FSC or with an FSC that did not fall into one of the MSC index sets,

were not processed. Thus each processed price comparison involved five or

six index sets.

4. Price data. The price data was obtained from a magnetic

tape copy of the Procurement History Record (PHR) file from TSARCOM

(AVSCOM and TROSCOM items). The file has two types of records. A header

record (called sector 0) contains the National Item Identification Number

(NIIN). Following each header record are the price records (sector 1) for

that item. Each price record contains:

effective contract date (DATE)

unit price (UPRICE)

quantity (QTY)

Federal Supply Class (FSC)

as well as fields, such as contractor identification, which were not used in

27

this analysis. The DATE, UPRICE, and QTY are packed number fields; the

NIN and FSC are alphanumeric fields. The header records (with their

trailing price records) are sorted by NIIN. The price records for each

item appear in reverse chronological order. The header does not indicate

repair status (depot maintenance, throw-away etc.) of the item. The price

record does not indicate whether the procurement quantity was for an

economic order quantity (EOQ).

5. Various filter criteria were developed. Selected pro-

curement prices were discarded as were certain entire item procurement

histories. These filters are described below.

a. Some of the price records had UPRICE equal to $0.01.

For a sequence of procurements of the same item, these prices appeared

between prices substantially higher. It seemed clear that UPRICE of $0.01

indicated that the true price was unknown. Thus these price records should

not be included in the analysis. A variable UMIN was defined, so that a

price record was discarded if UPRICE < UMIN. The value of UMIN was

usually set at 1.00.

b. As noted above, the price record does not indicate

if an economic order quantity was procured. A price index system cannot

be expected to predict a future price from a past price when one of the

prices is for an EOQ and the other is not. As a surrogate for an EOQ

indicator, a variable EOQ filter was constructed. Thus a quantity was

considered as non-EOQ if, for the paired procurements under investigation,

it was substantially smaller than the other quantity and its correspondirg

price was substantially higher than the other price. In particular,

variables QRATIO and URATIO were defined so that if,

28

.... . . . . . . . ........... .. .. . . . . . . .. . .. .

QTYl/QTY2 > QRATIO and UPRICE2/UPRICEl > URATIO

then QTY2 was considered as non-EOQ and so price record 2 was discarded.

In the model, an array FILT was defined which contained the URATIO and

QRATIO variables as well as an indicator for turning the EOQ filter on and

off.

c. The PHR file has instances of consecutive price

records in which the quantities are approximately equal but the prices are

vastly different. In many of these cases the price differences are clearly

caused by factors other than price growth due to time. An index updating

system cannot be expected to predict such price fluctuations. Hence

another filter was built to eliminate these fluctuations. A value GRATIO

was set, so that if the ratio of prices (updated via GNP) exceeded the

GRATIO value, then the price record with the larger price was discarded.

The GRATIO variable was actually contained in the array FILT and usually

was set to 3.0.

d. Only items whose maximum price fell within a

specified price band were considered. Thus a two dimensional variable

UMAXO was defined so that the price history of an item was used only if the

maximum (non-updated) UPRICE fell between UMAXO(1) and UMAXO(2).

e. The index updating system will only be used to

update prices for items which have had no recent procurements. Thus a

filter was constructed to eliminate comparisons of prices from procurements

that were less than a given time period apart. In most runs this time

period was set at 365 days. Prices with the same date were neither

compared nor eliminated. If an item had more than one UPRICE for a given

DATE, the weighted average price was computed and used.

29

f. The resulting computer program has a long running

time. To process the entire PHR tape (one reel) total Central Processing

Unit time was about 2 hours and total elapsed time was up to 10 hours. To

run the program during development and for the sensitivity analysis runs

(with different values for the various filter variables), a sampling rate

variable, NBLOKS(l), was introduced. NBLOKS(1)=l, produced an analysis of

the entire tape. NBLOKS()=10, analyzed one tenth of the data, (one out of

each ten blocks of data was processed).

6. Measurements computed. For each index and each index

set (MSC, BEA, BEA/OSD, OSD, GNP, NO UPDATING) various measurements were

computed. Some were measures of index (set) accuracy or variability.

Other measures were descriptive of the data to which the index was applied

- for example the total item quantity and the average price of items to

which the index was applied.

a. Measures of index accuracy.

(1) Results of measures of index accuracy are summari-

zed in Table 3, in the "Results" section of this report. The entries are

explained below.

(2) Mean weighted dollar error (see column A in Table

3). Each dollar error,

ERROR = UPRICEl (updated) - UPRICE2

was first converted via the GNP index into constant FY84 dollars, and then

weighted by the quantity of the second procurement. In effect the error

(in constant dollars) was assigned to each individual item procured. Hence

the mean weighted error was the average dollar error per item (for that

index).

30

.',....... ............ ...... ".-.........

L

(3) Mean unweighted error percentage (see column B in

Table 3). The error percentage

PERCENTAGE = 100 x ERROR / UPRICE2

was assigned to each valid pair of consecutive procurements of the same

item. (A pair of procurements was considered valid if it was not filtered

out by one or more of the filter criteria discussed above.) Then the mean

unweighted error percentage was

PERCENTAGE / N

where N was the number of price updates performed with the index - i.e. the

number of valid pairs of consecutive procurements. Note that neither the

unit price nor the quantity of the items procured affected this measure.

(4) Mean dollar weighted error percentage (see column

C in Table 3). Each error percentage, as defined above, was weighted by

the total constant dollars of the second procurement. This weighing factor

was

DOLLARS = UPRICE2 x QTY2 x UPDATE FACTOR

where the UPDATE FACTOR used the GNP index to convert into constant 1984

dollars. Thus the weighted mean was defined as

DOLLARS x PERCENTAGE / DOLLARS

(5) Dollar distribution of absolute error percentage

(see columns E,F,G in Table 3). This measure answered the question: how

many (relative) dollars were spent on procurements with index error within

a certain bound. In particular, what percent of total dollars were spent

on procurements with prediction errors less than 10%, 20%, or 30%. For

example, in column G of Table 3, the number 76 under the column heading

"+/- 30%" indicates that 76% of the (constant) dollars were spent on

31

[ ..-... ... . . . .... . . . . . . . .

procurements in which the error percentage (based on no updating) ranged

between -30% and +30%.

b. Measures of variability.

(1) Weighted dollar error standard deviation. The

standard deviation of the dollar error weighted by quantity. This standard

deviation (as well as those that follow) was computed via the statistical

definition of standard deviation. Viz, the (weighted) variance was the

difference between the expected value of the square of the error and the

square of the expected value (mean) of the error. Then the standard

deviation was the square root of the variance. If MEAN is the (weighted)

mean value, then an algebraically equivalent formulation is

ERROR - MEAN) x QTY2

VARIANCE ----------------------

ZQTY2* (Note that both the ERROR and MEAN, and thus the variance and standard

deviation, are in constant dollars.)

(2) Unweighted error percentage standard deviation.

The standard deviation of the unweighted error percentage.

(3) Dollar weighted error percentage standard deviation

(see column D in Table 3). This standard deviation was computed in the

same manner as the quantity weighted dollar error standard deviation. (In

the formula above replace mean weighted dollar error by the mean dollar

weighted error percentage, and replace quantity by dollars).

(4) Dollar distribution of the error percentage. A

cumulative frequency table was developed to display the proportion of

total dollars spent on procurements with prediction error less than a given

32

S. . . . .. -" 7 -::-.. -" " . .". - -

percentage. Note that the error percentage can vaty from -100% to plus

infinity. The cumulative frequency table ranges from -100% to +200%.

To illustrate how this table was developed, a value of 14 in line 49 (GNP) of

Table 5, under the error percentage column, -20, indicates that if the GNP

index had been used to update prices, then 14% of the total dollars would

have been spent on reprocurements with price prediction errors from - 100%

to -20%. (Total dollars refers to the total number of constant - i.e. FY84

- dollars spent on valid reprocurements of items to which the given index

applies. Of course "valid" reprocurements are those that meet all the filter

specifications - EOQ qualifications, dollar band membership, minimum time

between reprocurements, etc.)

c. Other explicit measures.

(1) Quantity. This is the total item quantity among

all the valid procurements of items subjected to the index.

(2) Number. The number of valid pairs of consecutive

procurements of items subjected to this index.

(3) Mean unit price. The mean of the quantity

weighted unit price, viz.

UPRICE2 x QTY2 / L QTY2

where UPRICE2 is in constant dollars. (Note that the mean dollar weighted

error percentage is 100 times the ratio of the mean dollar error and the

mean unit price.)

(4) Unit price standard deviation. The standard devia-

tion of the quantity weighted unit price.

d. Derived measures. Various other measures are de-

rivable from combinations of the previous measures. For example the total

33

........................ r..

dollars spent on reprocurement (of items' subject to the index) is the

product of the mean unit price and the total quantity. The number of FY84

constant dollars spent on reprocurements with given prediction error is the

product of the total dollars and the percent of dollars spent with the given

error percentage (divided by 100).

7. Results.

a. A summary of the output results are in Table 3.

For illustration, Tables 4 and 5 list output results of a full sample

computer run. Here, items with a maximum (non-updated, i.e. current

dollar) unit price of at least $500 were included. The economic order

quantity filter was on. Prices were discarded if, in constant dollars, they

were at least three times as large as the price in a consecutive

procurement. Procurements were discarded if they were less than a year

before the next procurement.

b. According to most of the accuracy measures, the

non-updating alternative resulted in substantially more error than any of

the other updating procedures. The only exception is the measure which

used the percent of total dollars with error within plus or minus 10%.

Under this measure the no,-updating procedure is only marginally, not

substantially, worse than the GNP index procedure. Under all the other

accuracy measures, no-updating was substantially worse than every one of

the index updating procedures.

c. The variabilities of the updating procedures (includ-

ing the no-updating alternative) were all about the same. The standard

deviations of the dollar weighted error percentages are all approximately

20%.

34

. . .

b~' --.-.' -' .--.' .. ." ---' .- ." --' ." ." , " .- , .l .'- -- -...-.- -. -.' ' . ' ' .' ..-.-' ' ' ' ' -, .'.' -.-.-. ' ' ' ' ' ' ..-.-.-' ''-;" ,,:J ,r m , ,.~ t .' ,df -- ,,' --.a•.Jh---..-mL.. ~ a-~nIm Nl . .. ....

d. All the index updating procedures resulted in

approximately the same accuracy. Compared to the other indices, the GNP

weighted error percentage is slightly higher in absolute value, but its

unweighted error percentage is slightly lower.

TABLE 3

SUMMARY OF OUTPUT RESULTS

Dollar Unwghtd Dollar-weighted Percent-of-Dollars

Error % Error Percentage-Error with-Maximum-Error

Procedure (mean) (mean) (mean) (st devn) +-10% +-20% +-30%i

A B C D E F G

SC INDEX -$35 2.73 -1.74 20.13 44 74 91

3EA INDEX -$41 2.50 -2.49 20.28 45 73 89

8EA/OSD -$55 1.36 -2.78 19.50 51 76 90

3SD INDEX -$55 1.00 -2.76 19.42 48 76 90

iNP INDEX $72 -0.46 -3.61 20.02 42 78 88

O UPDATING -$314 -15.18 -15.77 20.55 37 57 76

e. The GNP is the preferred index. It had approxi-

mately the same accuracy and variability as the other indices. It is

easier to use - for each year there is only one GNP factor; for each other

index set there are from 2 to 29 factors. There is substantially less

probability of improper application of the GNP index than for any of the

other index sets - again since there is only one factor for each year.

35

* . .h

. . .. . . . . . . . . . . . . . . . . . . . . ' . .

- ~ 10 f% . . . . 0 D ^. 1 .0 a. . . "1 N 0* 00 * 0a, *a a

40 W.0f 0

C - 0

~In .~ .N ey z . ~:Aw q

U.S .. . . . * * * .. . . . . .a . . .

% a . 4%e 0N @ W *@P"4~ @ .0N i~~ 0 4 4~ 't -;::tw --f

< 0 44 yu N 04 M

am

* 6

* 0

0~~ 2.- -

LL a '* 001 0 on00 1: !"1 1 0. o

a ' 0 a a a a a

0 0~ 0~ 0i@ O C 0 0

me a a. -II- a

W.

0i 2:0J 0N* AJ: woN.. A

-00 aI-a ececee. 0e . It's,.e~ e. e ee e e ee e e egoeI"gegea

cummaw

CS O4 EO .- O@ Oa .4. C@ m. 4* .4 mO N44 m~ ae @Ni36N

.4- Coy ---.. 4p-- w4. 4p w 4p**** 0, w-w. o s

-~~~~~~~~~ 0. 0.00000000. @cc .c @ c O cc @ C .. ccc0.4c00 ~ ~ ~ ~ ~ ~ ~ ~ 0 40. 0g c . e e e e ~ c e e c e e c c c

.t~~0 9, *0 -- ow- - -0, 0.4

WNW: wo

.291 S. 01p. W. S.* 91o a e ee eeek

a4 - .4 CF. - - - 4-4w 9. 0g~@ 0o eo ee e o :e@ 4 ee c 0' C: e:eee eoe

V) A w 4 -- - -z 0o a * 0 O - 0o l : 0Ol. 0 4 1 M 04c eo o E .. ~ c a e ~ ~ e~

0 'CC0 00 a c am 0 0cc0, e0

-~~~ 0. ft ccc -Le ac 0 ac eefyec e 0 Nu cc a g eee

a 0' W% S&x4o

cce a e~ e4 eec44e'ec4c'4~ 4.C.c~ .eece 0 ac o ce c ce~~c .. e c e e. ee ee4~ --

0 0 *ac CO N4. a eca e caac A a4 % ~ea c aaft . ftaa

ul a

-0 0,' .

in Mf 0g -0wa00a 00. D

< 00: 400 'eO o =%2.a

* - 41.

2 V-s- *.4 -j P- to &*a w S

hi .4z

3 37

8. Sensitivity Analysis.

a. A sensitivity analysis was performed to assess the

impact of the various filter parameters. Since each full computer run took

up to 10 hours of elapsed time, the sensitivity analysis runs were

performed on the same 10% data samples. The sampling processed every

tenth data block on the 2'IR tape. Table 6 has a summary of the sensitivity

results. Table 7 contains descriptions and definitions of the parameters

that were analysed.

b. To assess the affect of the sampling technique

itself on the output results, three different sample runs were performed

with the filter parameters held constant. To ensure that the three data

samples were disjoint, the three runs began the data processing at three

different data blocks. From Table 6 it can be seen that samples 1+10 and

5+10 (lines 1 and 2) have slightly more negative error- percentages and

sample 2+10 (line 15) had slightly less negative error percentages than

those coming from the full run (line 3). (See Table 7 for definitions of

"1sample 1+10" notations.) All the subsequent sensitivity runs were

performed on the 2+10 data sample. Results from these runs should be

compared to those from run 15 to) assess the parameter affects.

c. Three sample runs were performed to assess the affect

of varying the allowable maximum unit prices. The full computer run

processed items with maximum unit price greater than $500. The sample

runs processed items with maximum unit price respectively greater than

$5000, greater than $1000, and between $100 and $5000. The three runs with

maximum price greater than $500, $1000, and $5000 respectively (runs

15,5,4) have similar values for the weighted mean error percentages and for

38

I V V I V II I - - I- --L- I-J~I- -

I~W CO C4 at~- m l O i - i 00 Go 0%Oa* I

. ,, I/I l ,,

I I I

; - I II

" I I M M I %

"- I I * f 1 0 * I * I * * * * I

I I•I I - I - -I- - - I - I

I I I I I II

Z I I * * * I * * I l I

I I I I I I1

Z I I I I I 0I

-i z-z°

I I-<t I I I ,E~~I, t O I+ I I I I

I w

II I I I I I

I t o II III

I co o I I I I OI I( I I I c o I I * II

1. >- I* 40 1 1 I .C 1 0

... I 1 I I jigI<II I +~ + M I I I

I ~W LL I I _ _ _ _ _

I I n IIIt r-D- I I- IN I I I I0 1 LU( f %%

I- ~ ~ a I I~

39

.- -_*, -" .

TABLE 7

PARAMETER DEFINITIONS

PARAMETER DESCRIPTION [ DEFAULT

sample a+b process blocks a, a+b, a+2b, etc a+b = 2+10

A< $MAX <B maximum Item upr ice is between 500 < $MAX

A and B <infini t

EOQ =ON if-EOQ = ON, then discard if EOQ =ONI

UPRICEI/UPRICE2 > URATIO

URATIO and QTY2IQTY1 > QRATIO URATIO =1.3

o r

QRATIO UPRICE2/UPRICE1 > URATIO QRATIO =2.0j

and QTY1/QTY2 > QRATIO

also discard if

GRATIO UPRICEII/UPRICE2 > GRATIO GRATIO =3.01

or UPRICE2/UPRICE1 > GRATIO

E DAYS MIN discard procurements < E days apart E = 365]

40

the relative dollars spent at 10%, 20%, and 30% error. However, the low

dollar band ($100 to $5000 i.e. run 6) showed higher weighted mean error

percentages and less dollars spent at the 10%, 20%, and 30% errors. Thus

the various indices seemed to be less accurate on the low dollar value

items. Also, these items produced more variability (standard deviations of

about 30%) than the unbounded dollar bands of items. Finally, it also

should be noted that for the $100 to $5000 items, the GNP index seemed to

be the most accurate index set (for example the GNP index weighted mean

error percentage is very close to zero).

d. The full run had a value of 3 for the gross ratio

parameter GRATIO. (That is, if the ratio of two consecutive prices was

greater than 3, then the higher price was discarded.) Sample runs were

performed with GRATIO = 2 and GRATIO = infinity. The weighted means

were little affected, but the standard deviation increased moderately as

the GRATIO value was increased. This affect was expected since increasing

the value of GRATIO allowed more wildly fluctuating prices to be processed.

e. Four sample runs were performed to assess the

affect of the EOQ filter. Varying the EOQ parameters URATIO between 1.3

and 2.0 and QRATIO between 2 and 3 did not have any significant effect.

Turning the EOQ filter off did not substantially affect the weighted error

percentage means but it did enormously increase the standard deviations (as

well as the unweighted mean error percentage).

f. The full run processed consecutive procurements

with a minimal time gap of at least 365 days. Sample runs were performed

with minimum time gaps of respectively ZERO, 167, and 500 days. Among the

error percentage weighted means, the no-updating mean varied approxi-

41

.......................**.. . . . .

mately linearly with the minimum time gap (see figure 6), but the other

means were not affected. The standard deviations were not substantially

affected. These are expected and explainable results. As the time gap

increases, the non-updated prices become more out-of-date and thus their

mean error percentages get more negative.

g. The graphs in Figures 6 through 9 illustrate the

sensitivity to changes in parameter values of the major index accuracy

measures - viz, the dollar weighted mean error percentage and the

percentages of total dollars spent on procurements with absolute prediction

errors less than 10%, 20%, and 30% respectively. Appendix D contains

copies of the error statistics and error distribution outputs from each of

the six teen runs.

H. Implementation Considerations.

1. The updated prices should be available to MSC personnel

and therefore should be resident in and accessible from an automated

system such as CCSS.

2. The CEJRP should be generated when called from the

system. The most recent procurement should be updated to the present

date by the system, internally. Thus the system would consist of a file of

NS~s, each NSN having associated with it the unit price of the most recent

EOQ procurement, and the date of that procurement. The updating would be

by means of the approved index.

3. As a minimum the output should consist of, NSN,

nomenclature, current price (CURP), date of the last EOQ procurement and

its unit price. For MEL purposes, the MEL percentage factor should also be

output.

42

ICA

CrC)

w 'w

U'J In

cc 0i

wL L

Lni

Li

4=2 /~ -WJ CU~) 0

-n ILij 1I

I4

Ai (

//OleSv

< cm LAJ/wL

CDI <

F- <s

I'CI

iil(0iL

w LA.

440

* - r,~.rr r .' . r C. . .

______CD

a:z

C\JJ

rI- LA Iv

CD I

0 w-

'VV)4A

-U

CA CA -.

LJ s o.-

4.5

% .

.000

'tic'OfI

C:)

rCVLLm'I.v

(0

.1 1 - I.I c -

LU I/CIii ~ r.'I'.

LLi

LLJ C/n a-

p.-.

C2=

I- II~M

I LLI

U-

46

-S~~ -A ..

4. The CURP should be used to generate the unit price and

the associated Maintenance Expenditure Limit (MEL) in the depot work order

- Procurement Request Order Number (PROM).

I. Other Uses for Updated Prices.

The prices resulting from application of the methodology presented here

are for MEL use only. Though there is potential for other applications

such as a starting point in Foreign Military Sales price determination, such

use should not be made without further study.

J. Major Item Price Updates.

1. The objective for LSO project 903 (5) was to develop a

simple method for periodic updating of major item prices in order to

* facilitate the materiel planning functions in implementation of the Program

objective Memorandum (POM). The possible use of these prices in MEL

applications was discussed but the author believed that-, further study of

this as an application was necessary before such use of the prices could be

* made. Since then, the prices have been authorized for use in the MEL.

2. The data base of 6408 different NSNs consisted of 4028

* Line Item Numbers (LIN) for the major items. The methodology was applied

to the NSN with the highest price within each LIN.

3. The methodology used in LSO project 903 is very similar

to that used in this study (though the methodology for this study was

independently developed). Twenty four MSC indices and 21 BLS PPIs were

used to accomplish the update. One of these indices was assigned to each

* FSC and the price of the item updated to a current (1978) time frame. Then

* DOD/DA, DARCOM (AMC) projected indices were used to update these prices to

47

a 1980 time frame for incorporation in the Army Equipment Distribution Plan

(TAEDP).

4. Updates are made by the Depot Systems Command using

current and projected (for current FY and projected FY) OSD indices,

published periodically by HQ AMC as a letter, subject: Inflation Guidance.

Initially updated prices were published in Department of the Army (DA)

Circular 710-82-1, dated 1 April 1982 with an expiration date of 30 April

1984. Currently prices are published in SB 710-1-1.

VI. Findings and Conclusions.

A. Grouping Army items for index assignment can best be

accomplished via the item Federal Supply Class (FSC) code. This considers

only existing systems and must be caveated since certain classes of items

(i.e. printed circuit boards) are managed by multiple MSCs.

B. Each of the five index sets investigated - MSC, Bureau of

Economic Analysis (BEA), Office of the Secretary of Defense (OSD), combined

BEA/OSD, and the Gross National Product (GNP) Implicit Price Deflator - was

able to predict current procurement prices with similar accuracy. All five

alternatives were shown to be superior to the present procedure of using

the latest procurement price. This is based upon analysis of a 14 year

procurement history of Troop Support and Aviation Readiness Command

(TSARCOM - now AVSCOM and TROSCOM) items.

C. AR 750-1 currently mandates that the AMDF price be used to

calculate Maintenance Expenditure Limits for secondary items. This AMDF

price is usually the latest procurement price, which, as cited above, is

often an inaccurate indicator of the true present price.

48

•. -o ::.- ':<- ---.-.. ' --. -' - - .:- ' . " . .-> .'-::-.. -: :- .:.... ... .<..:: ~x .•".-

D. The methodology developed in this project provides estimated

CURPs satisfactory for use in the MEL decision process The amount of

effort required to produce a workable methodology for establishing useable

CURPs and for providing periodic updates was balanced against the highest

attainable accuracy of the CURPs. However, three caveats are in order.

First, the FSC does not differentiate between certain items such as printed

circuit boards that are managed by multiple MSCs. Second, since the

selection of the update index was made using only AVSCOM and TROSCOM

items, there is a possibility that the GNP may not be the best updating

index for the other Commands. Third, care should be taken in different-

iating between actual and estimated CURPs. The estimated CURP should not

be considered or used as an actual price unless its source was a recent

procurement. The older the price that has to be updated using indices, the

greater the potential error in the CURP because of the non-inflationary

factors that cause price change. Therefore, while the CURP for these

commodities is better than the existing price, its shortcomings must be

recognized.

E. This methodology will insure that CURPs used in the MEL

decision have one auditable price source available to all users and that

prices that were intended for other applications are not used in this

decision.

VII. Recommendations

A. In developing a MEL for reparable secondary items, the Gross

National Product index should be used to update item prices that are more

than one year old. The rationale is that the GNP index appears to be as

accurate as any of the other index sets considered, but it clearly is easier

49

-....

to apply and, unlike the other index sets, is applicable to all items - does

not require that items be grouped for index assignment.

B. These estimated current replacement prices should be resident

on and accessible from an automated system such as the CCSS.

C. Updated prices should be projected to the year of the

overhaul program by means of the OSD projected inflation rates. This will

require a change to AR 750-1 which currently mandates using AMDF prices

for developing secondary item MELs.

D. A study should be initiated to determine the feasibility and

possible advantages of using the GNP updating procedure for prices of major

items. The rationale is that the GNP updating procedure is simpler than

the current procedure and would be much easier to automate.

50

APPENDIX A.

REFERENCES

1. Poskus, U.R., Garfinkel, G.S., and Bainbridge, J.R., Maintenance

Expenditure Limits in the DARCOM Maintenance Program, Logistics Studies

Office Research Note 21-1, October 1983.

2. AR 750-1, Army Materiel Maintenance Concepts and Policies.

3. FM 29-23, Direct Support Maintenance Operations (Nondivisional).

4. SB 710-1-1, Standard Study Number System and Replacement Factors.

5. Dodge, Joseph A., Major Item Price Update Procedures, Logistics Studies

Office Project 903, December 1979.

6. Draper, Norman, DARCOM Historical Inflation Report, through FY 1982,

-- " August 1983, Methodology and Data Branch, Cost Analysis Division, Office of

'- the Comptroller, HQ DARCOM (AMC).

7. AR 710-1, Centralized Inventory Management of the Army Supply

'. System.

- 8. AR 708-1, Cataloging and Supply Management Data.

- 9. Monthly Labor Review, Bureau of Labor Statistics.

A-]

APPENDIX B

INFLATION INDEX VALUES

B-I

'~~~~~~~~'~~0 0000 0 0 0 0 0 0 0 00 0 0 0 0 0 0 mm

@0@

"I~: PP 10U~ 40

---- - -- ---- --- - - -- @ -

* ** ** **. .* .* *** ** .. . . . ni I I

*L m.tJ@oo. P,~ x S14, Tr 9 0000 20300

0. 444 4nI- ~ ~ 9 * % ft * 40 4" P NP : WP PD ZP P P

0L 0

w%. OieU:* 0 S N I*. Gkim Z:0f. 0 00 0m404.* m4(.JP..P4E.mP..m.E~4E.e.IP@APqJ@.e.@.f P.

W% m@ 4Jtu 0-P 0e 4 6 4u~~..I~ A ~ iI' 0 0e.PP~. 0~ 0

CY~~~~. C4 t P. y t y

P. P.N@@000 0P..P@ P" CK.P@9 00 0 0~~~ OA ~..1P4P4 0 mMO4i 4. @0 .84 -A* P0w bl W- A4P.444N0P.NP AIDP.4 .:..A: 41.4@P.4 44

NNNN W 1 n 0 o N N N NN A NId NNn m0 w NmM" P. : 01 .. . . .. .4P . N. . . I .@ *

oYc YCYc yt P. P.4. @@ 0 4 Yt N4 U P0 0 @O 0 @ @ P.v N PN.O4 4C 44zq "f zCLL 0 P-P-i*~...0..P ft.P4NP.PPP WP .

S. 14P .N%4 00.0 .01m.0. - 04P~04 P.P. P.4 P.0 0- ZI

Lai. 0 a 4~ P @ @~ . 0 v 4P e . . 0 @ 0 0 @N .

SA111A 323 a 39t 2222222228 93 .

- .PP.44P@@ 00 &000. N P PP @ 00 0 0 P. 4- --4~0-P~e.P.PP. L 4m 0 ftN P. P P".N @ .

PPnP P" PPP . * P", P Pn PP* PP Pnfto P P P P" P P

Id laic W49, =0 0 21 11 GOP.P.NNP.NNP.P.NP.I. 00aNP

2.a~ U Paf m1 -P-6 ~ ~ ~ ~ ~ ~ ~ ~ P .wP 0-j -oP oI.% L . eLIf .Cv twt

ag: si steU H~nei 21008 tvd .%g.AJ A 2.- k . a a.4PPJWP OKaW

hi aaP.*m- wzt :k : a@~ P 0.tm %4 o'sP. :4%00::: W= WZ@%aP~-NN NN NN Nhi N4A U ~ Z w P. .2 2:..MnM-I"O M 0 -0&V 0 4P ON

PB-

0 ~;.i~u 2 P~m

.114 2 @4

.oaeoooono:om oooooaaa ooooe oooo o o mao .0. a

* 0O*e, O :*0 0 ** 09 *09 A*9 4 00* We * ft.0 *0 0

*,"::: 0= 04 =7O.a::::..

0, 61 *',SOO' 0: 00000100 '.WOO@@ o 00

.~~~~ ~ ~ ~ .. :C

o* uro1- .eO0@0M0.0 N O 4 @ 0 0a0. O@.8@: 4 0. b A a P 4oA 1 @0S 0O.0.0 t.0 0.10 4.00.... :W N.~44 99 N .

* 0 * 00 00 00 00 90 000 * 0 00 *9 0 0 00000 a

94 .t .0 .. 94 N~t- 440 t J . 9 U 0 0.b% 0 10 10 A- 94 W49IA4-0 .8888.9 9 9.8.8.8.84 ' % A101 1 0 094.8 48 40 .9.

a 4n 0 0 00 0 0 V% 000l0 *0 a00 0 0 00 0 ~ 0

k"! "o. 99 0 N.N ft. N %a 0. a M 040 N a 8 e 0" wND

0000 000 000 00 0090 090 000 0 * 0C- ---- - o"-- a- in -, -- -- -- - 4 - - -W N - -a &- il --.1 '0

9. 9. 4 00090.4.9999000008 99.99N4444 0o

- - - - -- - -- --- ---- - - -N - "0 NO- NN- -NN---

a. . 96T 9gs: ..8toys8.x 8..0.82n: 000@.0.949.m0@p.0.92Mo@@0. o.0

*9 fy009O0cow.909000009 0 0 0000000N00 0.0. a a

- 9.2-o.. * @ 044 0000 0000009. m .N 4. m O8@43k OC~ ~ 8*...0.9a8 @ N.9..9 NN. 9.4.0.a.9.o.. 0.0

-i 00.0N0@ .000..0 lift,0o80949N 44@49.94.0 .A* C 00 00 00 00 09 99 09 *yl 09 99m9 0 *0N C0 .9 0 tyA mN90yyQ( y ew44t YC yf y

NN.0 NNNN~ .OONNNNN0 .0NNN.0NNN.0N~oN.. NON. o0

.0 094000400.8.94049. *m p0

9. n-ow40000 .O94.0.o.8v..094000000a: -0..NO. ~oo:9 wp9000 0009

a.0.0.00:9.840.mNdo .. 000:avoe:S, .94.8.0 94 .0

S W ft 90 000 909 00M V. 00 0 00. 90 00 A,00

0 . . . .4 @. . .9 . 4 . 94 . .9 .o. .09 9 0. 4 .49 . . 0. .0

900 .0 .0 09 0 . 00 0000 0 0 0%0001000 0 'A014111:41:::0J NN94NONNN 9:!N9N.94 oNNNNNNNN~2 '.3

94~~~ 4.9990009. .* 94~09000.949.944 004..8N99494.m@ 9409494 NO. 00v~0.80.@89.994940 I .a 0 9..80.N0 .W0 .809o 110*~~~~~t P"00 0 0 0 0 0 0 N*0000000 0

vpNNN N N Wo 1 N9C 6N0. 'A4a9 4

N NNN 94amN N.* ~ ~ ~ ~ ~ ~~~~2. 948.4400 E.449090.O000000 .900940.8 .

94 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ a *40.000080008O9.@00N.904o

*~ ~ W.0N 4 4 4 9.. 0 g W b- I- U.0 41. . . 0.9 .8 0 00 0 . WW

00.5 3 08 1.. W.0.v. CO - WOO&&0.Z994.0

U~~~~ z0OZ~hOOZ zU~ 0 toy WN0 0z t0bOW 3 4:::

U ~fJ3 OU3~L.8wo..Uu~B3ouS4 .oA4..UJJ~-

APPENDIX C

MSC INDEX ASSIGNMENT TO FSCs

This is a complete listing of the Federal Supply c'lasses and titles (from

AR 708-1) with the corresponding MSC index codes as assigned-. The column

titled PICA/SICA refers to the Primary or Secondary Inventory Control Activity,

generally a code for the MSC that manages that item-

AZ - TACOM

BD - MICOM

BF - AMCCOM

CL - CECOM

CT - TROSCOM or AVSCOM (previouisly TSARCOM)

CD -GMPA (USA General Materiel and Petroleum Activity)

C-1

. . . *.* .* *.~ -A

~SU Army('os TaP*ICA./ISCA1005 Guns. through :10mm .. . . . . . .. .. . . . . . .. . . . . . .. . . . .1010 Guns, over:14hnin up tu 7 5 n . . . . . . . . . . . . . .. . . . . . . . . . . . . BF1015 Guns. 75mm through 125mm .................................. ................. BF

to1020 Guns, over 125mm through I150mm...................................... ......... BFI1025 Guns. over 150mim through 21X)nmm...................... ........................ F1030 Guns, over 2tX~mm through :ItXnim .. .. . . .. . .. . .... .. . . .. . BF10315 Gunm, over 3(X)nim .. . . . . . . . . . . .. .. . . . . . . . .H.. . F

--TM Chemical Weapos & Fquipnaest ............... F1045 Launchers. orpedo & D~epth Charge .H.I... ............ .B1055 Launchers, Rocket & Pyrotechnic........ ...................... .......... ....... HBF

.3100 Nesand Booms, Ordnance .......................... ...... ......... CT107 Deausin &Mine Sweeping Equipment .......................................... CT

-eIM Camouflage & Deception Equipment ............................................... CT

, Assemblies Interchangeable Between Weapons in Two or More Classes.............. .... ... BF

1110 Nuclear Projectiles1115 Nuclear Warheads & Warhead Sectionsa............................. HF1120 Nuclear Depth Charges ....................................................... HBF1125 Nuclear Demolition Charges.................................................... BF1127 Nuclear Rockets ................................................. ........... HBF

h11-30 Conversion Kits. Nuclear Ordnance...............................................HBF1135 Fuzing & Firing Devices. Nuclear Ordlnance ............................... HF1140 Nuclear Components ................................................. ........ BF1145 Explosive & Pyrotechnic Components. Nuclear Ordnance ................................ HBF1190 Specialized Test & Handling Equipment. Nuclear Ordnance ........... . .. BF1195 Miscellaneous Nuclear Ordnance ...... H................... F1210 Fire Control Directorsa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BF1220 Fire Control Computing Sights and Devices ...................... HF1230 Fire Control Systems. Complete .. ................................. HBF1240 Optical Sighting & Ranging Equipment.................................HBF1250 Fire Control Stabilizing Mechanisms. ............................................. HBF1260 Fire Control Designating & Indicating Equipment............................ ......... HBF91265 Fire Control Transmitting & Receiving Equipment, except Airborne H.....I.... F1270 Aircraft Gunnery Fire Control Components H..................... F1280 Aircraft Bombing Fire Control Components ..................... HD1285 Fire Control Radar Equipment, except Airborne.......................................HBF1287 Fire Control Sonar Equipment ................................................ HBF1290 Miscellaneous Fire Control Equipment............................................HBF

-11305 Ammunition, through 30mm,..... .................... H........... FAmmunition, over 30mm up to 75mm .............................................. BF

7y 1315 Ammunition, 75mm through 125mm...... .................................. ..... HBF1320 Ammunition, over 125mm ................. ...................... BF1325 Bombs ....................................................... HBF

61330 Grenades............... .................................. BF1336 Guided Missile Warheads & Explosive Components....................................HBD1337 Guided Missile & Space Vehicle Explosive Propulsion Units, Solid Fuel & Components ..... D

A1338 Guided Missile & Space Vehicle Inert Propulsion Units. Solid Fuel & Components ...... BD1340 Rockets Rocket Ammunition A Rocket Components .................................. HBF

Land Mines ........................................... .. BF1350 Underwater Mine Inert Components................................... ......... HBF

S1351 Underwater Mine Explosive Components.................. ............. ....... ... BFS1355 Torpedo Inert Components .... ..................... H...... ..... F

1356 Torpedo Explosive Components. ............................. H... . .. F1360 Depth Charge Inert Components .................. H.. .... .. F

C-2

. . .~* . . . . .. ... . .

V

l'S' An rmy('l TILM IC'C.ASICA

1301 .Depth Charge Explosive Compineu . BF1365 Military (henical Agents ...... BF1370 Pyrotechnics BF1375 l)emoiutin Materials .... BF1:176 Hulk Explosives .. BF1377 Cartridge & Propellant Actuated Devices & Components ... BF4 130 Military Biological Agents . BF1385 Explosive Ordnance lisposal Tools. Surface . F1386 Explosive Ordnance Dispo l 'Toolsi. Underwater ..... ................. ..... ..... BF1390 Fuzesand Primers ................... . .F... BF1395 Miscellaneous Ammunition. . ..... . .............. ........ BF1398 Specialized Ammunition Handling & Servicing Equipment ... ... ........... BF14 10 G uided M issiles .. .. ... ..... .... . ........ .......... ......... .. ....... B D1420 G uided M issile Com ponents ..... . ... . ... . ..... . .... ..... .......... ........ BD

11 1425 Guided Missile Systems, Complete .. . ........... .................. .... .. ..... BD1427 G uided M issile Subsystem . .... . .. ..... . ....... ... ......... .... .. .. . OD1430 Guided Missile Remote Control.. . ......... ...... ................ Sy. BD

,,)1440 Launchers, Guided M issile ... .. . .......... .................. BD/. 1450 Guided Missile Handling& Servicing Equipment ... ............................... BD6-1510 A ircraft, Fixed W ing .. ................ .. . ............................... C'r

1520 Aircraft. Rotary W ing .................... CT1540 G liders ................ . ... . ..... . ............. . .. .... C T1550 D rones . .... . .... . . .... ... ..... .... ....... CT1560 Airframe Structural Components .. ........ ...... C1610 Aircraft Propellers ... ......... . ......... CT1615 Helicopter Rotor Blades. Drive Mechanisms & Components ..... ......... CT1620 Aircraft Landing Gear Components .CT1630 Aircraft Wheel & Brake Systems ..... CT1650 Aircraft Hydraulic. Vacuum. & De-lcing System Components ....... ................. C'r1 1660 Aircraft Air Conditioning. Heating. & Pressurizing Equipment ........................ CT1670 Parachutes: Aerial Pick-Up. Delivery. Recovery System & Cargo Tie Down Equipment ......... CT1680 Miscellaneous Aircraft Accessories & Components .. .......... .. CT1710 Aircraft Arresting Barrier & Barricade Equipment ............ CT1720 Aircraft Launching Equipment ..... .... CT1730 Aircraft Ground Servicing Equipment CT

Airfield Specialized Trucks & Trailers ... CT1810 Space Vehicles ... .......... BD1820 Space Vehicle Components ......... BD1830 Space Vehicle Remote Control Systems ........ BD

5 1840 Space Vehicle Launchers ............. ...... BD1850 Space Vehicle Handling & Servicing Equipment ... ..... B.. ................. BD1860 Space Survival Equipment ....... ..... . ....... .. .... .... CT1" Combat Ships & Landing Vessels CT........... . . ....... C1910 Transport Vessels, Passenger & Troop ... C.T........ . . . CT1915 Cargo & Tanker Vessels . .... . ...................... .... ........ CT1920 Fishing Vessels ................... .... ... .......... CT1925 Special Service Vessels .............. ................ ...... CT1930 Barges & Lighters. Cargo ............................................... ..... CT

30 1935 Barges & Lighters. Special Purpose T.................................. T1940 Small Craft CT1945 Pontoons & Floating bocks ................................ .......... ..... CT1950 Floating Drydocka ...................................................... CT1955 D redges . .. . ........................... .. .............. ..... C1990 M iscellaneous Vessels ............... ........ .................. CT2010 Ship i Boat Propulsion Components ........................................ CT

C-3

".,.- .. ,.,...< ,.-.,-- .;....-. ,,; . ,, .- . ,-..- .. ....-.. ,.A.- ,', - "...". ..... .,-.,,-.,.,

I,' Sd" Arnmy

C(ua, 1,111 PICA/SICA2020 Rigginig & Rigging Gehar .... ......... CT20340 1e"k Machinery. . ... . . .. . . . . . . . CT2040 Marine Hardware & Hull Itenp.......... ... CT

5000 Buoys. .... C2060 Commercial Fishing Equipmeiit ............ .... CT

200 Miscellaneous Ship & Marini- Equipmniit . . . ...... I.......... CT2210 Locomotives . . . ... ... . . . . . ... CT2220 Rail Cars. .. . . . . . . . . . . . CT

92230 Right-of-Way Construction & Maintenance Equipment Railroad .............. CD2240 Locomotive & Rail Car Accessories & Components ................... CTL2250 Track Materials, Railroad . . . . . . . .. . . . .. . . . . . . . . . . .... CT2305 Ground Effect Vehicles .. . . . . . . . . . . . . . . . . . . . . . . . . . . .. CT2310 Paasenger Motor Vehicles ......... .... ........................................ AZ

9 ~2320 Trucka & Truck Tractors. Wheeled. ........................................... AZ2330 Trailers .. . . . . . . . . . . . . . . . . . . . . . . AZ2340 Motorcycles. Motor Scooters, & Bicycles......... ................. ................. AZ2350 Combat. Assault & Tactical Vehicles, Tracked .......... ...... ...................... AZ

240 Tractors,.Full Track, Low Speed.......... ... .................................... CD22420 Tractors, Wheeled .. . ..... .-......................... CD

2430 Tractors. Track Laying. High Speed . ...... 1.............. I.......... AZ2510 Vehicular Cab. Body & Frame Structural Components.................................. CD2520 Vehicular Power Transmission Components . .. . .............. CID

7 2530 Vehicular Brake. Steering. Axle. Wheel & Track Componenta ............. CD2540 Vehicular Furniture & Accessories ............... CD2580 Miscellaneous Vehicular Components.................. CD2610 Tires& Tubes, Pneumatic. Except Aircraft. ................................... AZ

2o02620 Tire & Tubes. Pneumatic. Aircraft... ...................................... CT2630 Tires, Solid & Cushion ....... ......... AZ2640 Tire Rebuilding & Tire & Tube Repair Materials ............. AZ

-- = Gasoline Reciprocating Engines Except Aircraft & Components .................... CID12810 Gasoline Reciprmcating Engines. Aircraft & Coniponents ................ CT

2815 Diesel Engines & Components ... .. I........... CD2820 Stasm Engines, Reciprocating & Components ............ CT

302825 Steam Turbines& Components ..... CT2830 Water Turbines & Water Wheels & Components. ........ I CT283 Gas Turbines & Jet Engines, Except Aircraft & Components ................ CT2840 Gas Turbines & Jet Engines. Aircraft & Components .. - ............ CT

1/ 2845 Rocket Engines & Componients ... B. . .... I...... D2M Gasoline Rotary Engines & Components. ... .......... CD

2895 Miscellaneous Engines & Components ... .................... CD2910 Engine Fuel System Components. Nonaircraft .................... CD2915 Engine Fuel System Components. Aircraft ...................... CT

Engine Electrical System Components. Nonaircraft .................. CDEngine Elsctrical System Components. Aircraft.... .. ................................ CT

i~Iii Engine Cooling System Components. Nonaircraft .................. ................... CID-T2935 Engine Coaling System Components, Aircraft.......... ............................. CT

4 2940 Engine Air & Oil Filters, Strainers and Cleaners, Nonaircraft ............................. CID2945 Engine Air & Oil Filters, Strainers and Cleaners. Aircraft ............................... CT

1296 Tur4bouperchargers ........... .............................................. CT299 Miscellaneous Engine Accessories, Nonitiri-raft ....................................... CD299 Miscellaneous Engine Accessries, Aircraft......................................CT

73010 Torque Converters & Speed Changers .............................................. CDi 73020 Gears, Pulleys, Sprockets & Transmission Chain..................... ................. CD

c-4

is~A Arm vJClass Tilk PI(AYSI( A173030 Belting. Drive Belts, Fan Belts & Atccessories .. . . CD)

3040 Miscellaneous Power Trananiission Equipment ........ ...... CD3110 Hearings, Antifriction Unmounted ...... .. CD3120 Bearings, Plain. Unmountd. . . .. ..... I... . . .... . . CD3130 Bearings. Mounted . . . . .. .. . . . . .1 . . . . .. . . . .. CD3210 Sawvmill& Planning Mill Machinery . .. .. .... .... .... .... CD3220 Woodworking Machines .... ...... .... CD3230 Tools & Attachments for Woodworkinig Machinery....... ........... CD3405 Saws & Filing Machines .. . . .. . . . . . . . .. . . . . .. . . . .. CD3408 Machining Centers & Way-Type Machines .... ..... . ... ...... CD3410 Electrical & Ultrasonic Erosion Machines .... ... .............. CD3411 Boring Machines .. . . . . . . . . . . . . . . . . . . . . . . . . . . . CD3412 Broaching Machines .... . . . . . . . . . . . .. . . . . . . . . . . . . . .. CD3413 Drilling & Tapping Machines . . .. . . .. _ . .. . .. .. . .. . CD3414 Gear Cutting & Finishing Machines.. . .. .. .................. CD3415 Grinding Machines .. . . . . . . .. . . . . . . . . . . . . . . CD3416 L athes . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. CD3417 Milling Machines .. . . . . . . . . . . . . . . .. . . . . CD3418 Planers &Shapers .............................. ............................ CD3419 MiscelaneousaMachine Tooles......... ... ... ................. .................. CD3422 Rolling Mils & Drawing Machines . . .. .. .. . . .... . .... . .. .. CD3424 Metal Heat Treating & Non-Thermal Treating Equipment . ..... ........ CD3426 Metal Finishing Equipment ........ . ........... CD3431 Electric Arc Welding Equipment . . .. . . . . . . . . . .. . . .. . .. .. . C L3432 Electric Resistance Welding Equipment ..... ..... ... ... CD

30~3433 Gas Welding. Heat Cutting & Mete lizing Equipment ..... _ . ........ CDS3436 Welding Positioners & Manipulators.......... CD

3438 Miacellneous Welding Equipment .. ... ... ...... CD3439 Miacellaneous Welding. Soldering & Brazing Suppliem & Accessories .. .... CD3441 Bending & Forming Machines. . . .. .. ... ... .. ... CD3442 Hydraulic & Pneumatic Presses. Power Driven ...... I..... CD3443 Mechanical Presses, Power Driven .. ... .... CD3444 Manual Presses . . . . . . . . . . . . . ... .... CD3445 Punching & Shearing Machines. CD)3446 Forging Machinery & Hammers . ......... CD3447 Wire & Metal Ribbon Forming Machines . ......... ...... CD3448 Riveting Machines .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CD3449 Miscellaneous Secondary Metal Forming & Cutting Machines ..... ......... CD3450 Machine Tools. Portable . . . . . . . . . . . . . . . . .. . . . . .. . . .. CD3455 Cutting Tools for Machine Tools ........ . . ... ....... .. CD3456 Cutting & Forming Tools for Secondary Metalworking Machinery .. ........................ CI3460 Machine Tool Accsories .. . . . . . . . . . . . . . . . . . . . . . . . . CD3461 Accessories for Secondary Metalworking Machinery .. ....... 7............. CD3465 Production Jigs, Fixtures & Templates . .... .... .. ... ... CD3470 Machine Shop Sets, Kits &Outfits ............... . .. CD3510 Laundry & Dry Cleaning Equipment . ............. CD3620 Shoe Repairing Equipment . . . . . . . . .L. . . . . . . . . . . . . .. . . .. CD3630 Industrial Sewing Machines & Mobile Textile Repair Shops ..... .......... CD3640 Wrapping & Packaging Machinery...... .. ..- . .............. CD350 Vending & Coin Operated Machines ........ ...... . .. . . CD3690 Miscellaneous Service & Trade Equipment . ... ..... ...... CD3608 Food Products Machinery & Equipment .... ....... ....... .. CD3610 Printing. Duplicating & Bookbinding Equipment . .. . .... .. .. CD

C- 5

AArit.1 I l ttt1411 t.t1 M trking M a.1-1. .. ( )

p 1I -. Pulp & I'.lt 'r Indu.s'rt .t M ulin .rv ('1).*2*1 I (Huhlin., & isfi

t l , Wtrkig Mathitry (D

'if.2-, 'I Txilt I ditu I rt s Mat litt rv . ... .. .C)

if 1111 1 LIt & Itttrti I o'tt u .tts llustri s M;at'|lta .ry D('I)

i.C.-, I ',' it! & G liss Ita .si rt.s Machlutry .. (')110fi la;ta.'., Nta;ittia I airaai Mstiiit'ry (')

i, I.7. I-A;ii it II';iiiatug & I .;tilhir Wtorkirng Iniustrites Matchintry ('I)iti i f'ht. .t I & i'ltPirml.tt'iPriileaI I 'rlauts Manufacturing M athanery. '

;6.1.*I ;5 i G r-A Ir alg & ili iisilig Systems. Fixed or Mobile. ...... ('3i61 itiusi rt itt. liaurt attlt Mathaitiry ('1)3iti) Spl'.ltli~tttI S.'t-d atitllutor Mirrot-irtuil & Prinited Circuit Hoard Manufarturing Mathinery. ('1)

6l81) i Fatuiidrv Ma.|iot'.rv. Relaled Eicjw;imen1 & Supplis. 'I)30 1144. SgIR, alia.t.d Mt-ail C'olilaiair Maluati.uring Machinery & Relted Equipment .. ).........

.1690* Sh4t 'iil.ed Amiuhiion irdnance Mau-taaslry & Related Equinient . HF4lti Industrial As .nilty Mat-hines ('i

;3i I 'ltn tork Statni.a Cilrolledt ir. imi at & Reated ulin.ent ('1*ilt~i= lla N llast-ttuats S) tal I sludustry Ma'ii.ery ('I)17i1) 4 Soil i'riaiiration Equinisit ('1)

:17211 IHarvestinog Equipmet'ant (')

:17;1'1 Ilairy. I'tultrv & Iivt'si a k Equalipment . (1)741 ti V... I Disease & Froi on rol P'tiut p niiatEl u. . ..'(D1

375i I Gart.nig i nip.l'ea s & l's .'3 7640* Aaiil I Irawin Vetaicl. & Farm Irraters C):17711 Satdlerv. Ilirness. Whips & Related Anrnal Furnishings C)3M0i Kirth Motving & Excavating Equiprneat ('1)

;it0 ('ranes & ('rune-Shovels D('i)3I 15 ('raine & tiie-S hivel Atti.mt'ii s ('1i;M52) Mining, Rowk Drilling. Earth toring & Related EtjUipll-nt I'D

J5 :t3125 htad ('tta aring & Cleaiang Equipment . ('li:11,131' Truck & "rrtaitr Attarhnvt's 'D14 M:15 I'troleum I'rnUltlwioa & listraltaU itoan 1 ua;itria ('li18$ *l Mis-inlant us( 'jn. rut ittia Itqutit-wti 1 i

'= I Vtveyor: CDl

SI .-) Mm lt'rit't Fteders t I

.1'421 Mait'rits II.lidhnig Etqui gii Natn-S. ll Itrut lhttld DI

:19:13 War.htius* Trutks & Tra totrs. Self. Prtoiltl I'D39-40i tlt ks Tac-kle. itgging & Sings 'i• IS ; .f:950i imilit.., illoiil.,, i Crli0.n t CDrlk. .25 :IH~ao W s -'s -ttss rue & I erri ks (I:4if) Elevators & Esitlattitrs (73994 ) Mi cellaneous M;tritIs flandling Es1 iteiantli I')41)10* C'haiti & Wire Iope' DI4020 Fiber Rttm, ('ordagt. & 'wine' C DI *

4(0:141 F Ittings for tolm. 'ahit' & C hatia CD4 111 l tIri'lgerattn Eiquipnipm.it ('D4 1 '203 Air I 'tasidaiilngq Euilaani'nt DIl41 2 41 Rt'I rig*'ra tion & Air 'snlit ioing ('inlltit. I14I,1i Fans. Air Cirulators, Blower Equipmen. (')421(0 Firt Fighting Equipment .. C i.

2,.4220 Marinte lifteaving & Diving E(quipment DI2542: ID)t-tntamlnating & impregnating Equipai.nn DI)

4240* Safety & ieLuFjupmtn-snt ... ()

4:1103 ('Amprnairs & Vacuum Pumps CI)412(0 Power & Hand Pump ... CI

c-6

I%

Fsc- A rmav

1tuie 1ILA/SI(.A

430 CentrifuglS, Separators, and Pressure & Vacuum Filters ................ CD4410 Industrial Boilers . . . . . . . . . . . . . . . .. .. . . . . . ... CT4420 Heat Exchangers & Steam Condensers ....................... CT4430 Industrial Furnaces, Kilns Lehrs & Ovens.......................... ........... ..... CD

44440 Driers, Dehydrators & Anhydrators ............................... .............. .CD4460 Air Purification Equipment.......... ....................................... CD4470 Nuclear Reactors . . . . . . .. . . . . . . . . . . . . . . . . . . .. CT4510 Plumbing Fixtures & Accessories .. .......................................... .. CD452b Space Heating Equipment & Domestic Water Heaters............................... ... CD4530 Fuel Burning Equipment Unit ..... .................................... ....... CD4540 Miscellaneous Plumbing, Heating & Sanitation Equipment. ................... CD4610 Water Purification Equipment ...... ............................................ CD

244620 Water Diatillation Equipment. Marine & Industrial............................ ... CDP4630 Sewage Treatment Equipment ... .......... ................................... Cl

4710 Pipe &Tube .................. ... .......................................... CD4720 Hoae & Tubing. Flexible ............ .......................................... CD

$04730 Fittings & Specialties; Hoae, Pipe & Tube...................................... CD410 Valvas, Powered . . . .. . . . . . .. . . . . . . . . . . . . . . . . .. .. CD

-4820 Valves, Nonpowered . . . . . . . . . . . . . . . . . . . .. . . . . .. . .. CD4910 Motor Vehicle Maintenance & Repair Shop Specialized Equipment ............. CD4920 Aircraft Maintenance & Repair Shop Specialized Equipment ..... ....... . CT

4921 Torpedo Maintenance, Repair & Checkout Specialized Equipment ............ F4923 Depth Charges &.Underwater Mines Maintenance, Repair & Checkout Specialized Equipment . BF4925 Ammunition Maintenance. Repair & Checkout Specialized Equipment . ... BF4927 Rocket Maintenance. Repair & Checkout Specialized Equipment ........... BD4930 Lubrication & Fuel Dispensing Equipment................... .... .. .... ........ CD4931 Fire Control Maintenance & Repair Shop Specialized Equipment .... HF4933 Weapons Maintenance & Repair Shop Specialized Equpment ......... BF4935 Guided Missile Maintenance. Repair & Checkout Specialized Equipment BD

/6$4940 Miscellaneous Maintenance & Repair Shop Specialized Equipment.. HF4960 Space Vehicle Maintenance. Repair & Checkout Specialized Equipment .... BD5110 Hand Tools. Edged. Nonpowered. ... ... I.......I ..... CD5120 Hand Tools. Nonedged Nonpowered ..... CD5130 Hand Tools. Power Driven ....... CD5133 Drill. Bats. Counterbores & Countersinksi. Hand & Machine .CD

5136 Taps. Dies &Collets: Hand & Machine...... ....... . ........ CD5140 Tool & Hardware Boxes .. . ...... I .... ... CD

52 0 easuranTool Cr ft n . .. . . . . . . . . . . . . . . . . . . . . . .. D

52 0 Isets Gae & Prcso Lao tT os. . . . . . . . . . . . . . . . . . . . . B

RiveBotsa . .............. .. ..... ...................... CD305325 Susng Dvs....... .......... .... .... ..... .......... ...... ........... CD

5330 PaN& ase aer ial............................. .. ....................... CD5315 Meal Kcees&in ... ......................................... ............... CD5340 isellos Hwe.......................................................... CD

3 5345 Fia&stn ees..brasive..................................................... CD53301 Aaig&e e Materials......... ............ ........... ..................... CD5:35 Keoas ScrPniners....... ......... ........................................... CD

............................... ........ ................................... C54 Dik&SoeArsv...............................................',% *C*

-5& baieM tral . . . . . . . . .. . . . ... . . ............. ... C5355 Knobs &Point.... ... .... ... . ......................................... C

b ' g Armi v

r) fi I44 Coil, Flat & W irt- Springs . . . . . . . . . . . . . . . . . . . . . . . .CD053 ;A lfinig. Shinis &Spates CD

5410o Pricfihiv~azted& Portable Buildings .... ..... l........i.....5-111 Rigid Wall ShelIters . .... ........ I52 3 o B2ridges. Fixed & Floating . .... .. C11

I- 4 0 Sitig 'rainks . . . . ..... . CD)5440 SaltfoldiaigEKquipnen&Coincrete Forms ............. CD5445 Pro-iibricatedTower Structures ... . (.. ... .. .. .. C

54-50 M zelno bP ea rc tdS rcue .. . . . . . . . . . . . . . . . . .. . .. CDi

5530 Plywootd & Vrneer... .. . . . . .. . . . . . . . . CDYo05610 Mineral Construction Materials, bulk .... ............ ........ CD

5620 Building Glass, Tile. Brick & Block ...... ....... CD56310 Pipe & Conduit. Nonmetafic .C....I..... ... l .........5640 Wallboard. Building Paper & Thermal Insulation Materials .. ........ .... C D5650) Roofing & Sliding Materials ... . ... . . . . . . . . . . . . . . . . ... CD5660 Fencing. Fences & Gates .... . . . . . . . . . . . . . . . . . . . . . CD5670) Architectural & Related Metal Products .. ........... CD56M)0 Miscellaneoub Construction Materials . .. . . .. . .. .. . ... ... .. .. CD)580)5 Telephone & Telegraph Equipment .... CL.5810 C'ommunications Security Equipment & Components.......... .. .. .... CM5HI11 Other Cryptologic Equipment & Components............. ('U58t5 Teletype & Fasimuile Equipment ..... . . ... C5H820 Radio & Television Communication Equipment. Except Airborne. cL5h21 Radio & Television Communication Equipment. Airborne .CL

%t2S Radio N aiigation, Eqipmenit. Except Airborne CL5826 Radiio Navigation Equipment, Airborne .. .... . ...... ... .. CL58301 Intercommunication & Public Address Systemis. Except Airborne . . ...... .... CL58311 Intercommunication & Public Address Systems. Airborne . .. ........ .... CL5835 Sound Recoirding & Reproducing Equipment ...................... Cf.5840 Radar Equipment, Except Airborne . .... .... ..... ... ...... CL5841 Radar Equipment. Airborne . .... CL5845 Underwater Sound Equipment CL5850 Visible & Invisible L~ight Communication Equipment ... CL

I58.55 Night Vision Equipment. Emitted & Reflected Radiation..... .I- CL5860 Stimulated Coherent Radiation Devices. Components & Accessories .......... CL5865 Electronic Countermeasures. Counter-Countermeasures, & Quick Reaction Capability Equipment. CL5895 Miscellaneous Communication Equipment (less ECM. ECCM & QRC) .... .......... CL5905 Resistors .... CL5910 Capacitors .. . . ... CL5915 Filters& Networks . ............ CL59201 Fuses & Lightning Arrestors . .. . .I..-.... CL5925 Circuit Breakers . ... ... I.. .CL59314 Switches . . . . . . . .. . . . .. CL59:15 Connectors. Elec-trical .. . . . . . . . . . . .I. . . . . . . . . CL5940 Lugs, Terminals & Terminal Strips ........ .......................... .............. CL5945 Relays & Solenoids . . . . . . . . . . . . . . . . . . . . . . . . . . . CL5950 Coils & Transformers ..... . ................... ...... ... CL5955 Piezoelectric Crystals .............. I...... I... ...... CL5964) Flectron Tubes & Associated Hsrdware .............. ......... CL

1 5961 Semiconductor Devices & Associated Hardware ......... .......... CL

c- 8

........................................~~~ *...m.. . .* . . . *.

I'ndexJ F.x A rm

('las.. TIc PitA/SIC A5962 Micr 'uicts., Electronic . ... C 1'.5196 Electroi' r M lules . .......... .(1.

5%65 HeadsLt.. Iandet. M 'rolOnes & 4"l t..rs ..5970 IEletriailhisulators& Insulating Materials ... 1I,5975 Electrical Hardware& Supplies (1.5977 Electrical ((mtst ilushes & Electosl'. Cl.59M5 Aniennas. Waveguides & Related q(luipment ..... .I..5") Synchrob & Resolvers . .CI.

S 595 Cable, ('ord & Wire Awemnblies: Communication Equipuent ..5999 Miscellaneous Electrical & Electronic Components ........... l.601(0 Fiber Optic ('oductors (1.6015 Fiber Optic. Cables ....... Cl.6020 Fiber Optic Cable Assemblies & Harnesses ...................... . .... ........ C60 )30 Fiber Optic Dlevices . . . .... . . . .... .. .. . ... ...... .L6060 Fiber Optic Interconne.tors . ................... . .. . ......... Cl..6070 Fiber Optic Acce sories & Supplies .... ... . ... . ........ . C].6080 Fiber Optic Kits & Sets ...... . . ... ... .. Cl.610.5 Motors. Electrical ... ... .. .... . . ...... . . . .

2 6110 Electrical Control Equipment ..... .................. . CD6115 Generators & Generator Sets, Electrical ... .. ...... ............. ('1)

Fuel Cell Power Units, Components & Accessories ........ CT6120 Transformer: Distribution & Power Station . .............. )6125 Converters. Electrical, Rotating .L6130 Converters., Electrical. Nonrotating CI.6135 Batteries,. Primary .l6140 Batteries, Sevondary ('1.6145 Ware & Cable. Electrical . ('i.6150 Miscellaneous Electrical Power & Distribution Equipment . .('I)6210 Indoor & Outdoor Elettrical Lighting Fixtures C)

" 6220 Electrical Vehicular Lights & Fixtures .. . C)6230 Electric Portable & Hand IUghting Equipment (1)6240 Electric Lamps .()6250 Ballasts, Lampholders & Starter. Cl)6260 Nonelectric Lighting Fixture ('D6310 Traffic & Transit Signal Systems (16:24) Shipboard Alarm & Signal Systems CT63:0 Railroad Signal & Warning l)evies . ('1)6340 Aircraft Alarm & Signal Systems CT63N) Miscellaneous Alarm & Signal Systems CD[6505 Drugs. lilogicals & Official Reagent. AS6508 Medicated Cometics & Toiletries AS6510 Surgical )rea ing Materiels AS6515 Medical & Surgical Instrumeits. Equipment & Supplies AS6520 Dental Instruments. Equipment & Supplies ... AS

AIA 6525 X-Ray Equipment & Supplies: Medical. Dental. Veterinary. AS65.10 Hospital Furniture. Equipment. Utensils & Supplies .. AS6&12 Hospital & Surgical Clothmg & Related Special Purpose Items .... AS6540 Opticians' Instruments. Equipment & Supplies . ........... ........ AS61545 Medical Sets, Kits & Outfits ............. AS6605 Navigational Instruments .. C... .. ....... . ..... T. (-!3 6610 Flight lnstrum ent . ..... ....... ...... .. ......... .... ....... .. '1" 6615 Automatic Pilot Mechanism & Airborne Gyro Components (.6620 Engine Instruments . ... ......... ... ..... .......... C.....T.....

C-9

"," " ",," " " " ' " l " , ,, .r, ,'am,,q. , .. . .. .. . . .,......,.......-,. ,. .. ... . ..................

- - . - - .%-7 -- 7 -- - - : I.- . t& 4 Y. Yi ... ... . .

i .Tt, We x

1FSC A mi

. '1i Title PICA ISICAI 66 5 Electrical & Electronic Proherties Measuring & Testing Instrument .......................5 o 6610 Chemical Analysis In.tru enL ..... ................................................... AS, CD

§0 6§6L Physical Properties Testing Equipment ................................................. CDWI 6636 Environmental Chambers & Related Equipment ........................................ CT" 6'0 Laboratory Equipment & Supplies ...................................................... AS, CD

I "W 5 Time Measuring In.tru nents ........................................................... CD6660 Optical Instrum ents ................................................................... BF6666 Geophysical & Astronomical Instruments ................................................ CD6660 Meteorological Instruments & Apparatus ................................................ CL

30 6445 Hazard-Detecting Instruments & Apparatus ............................................. BF- _§§70 Scales & Balances ..................................................................... CD_ 7 6675 Drafting, Surveying & Mapping Instruments ............................................. CD

66150 Liquid & Gas Flow, Liquid Level & Mechanical Motion Measuring Instruments ............. CD.30 6686 Pressure, Temperature & Humidity Measuring & Controlling Instruments .................. CD

6696 Combination & Miscellaneous In.struments ............................................... CL6710 Cameras. M otion Picture ............................................................... CL6720 Cam eras, Still Picture ................................................................. CL6730 Photographic Projection Equipment ..................................................... CL6740 Photographic Developing & Finishing Equipment ......................................... CL67540 Photographic Supplies ................................................................. CL6760 Photographic Equipment & Accessories ................................................. CL6770 Film , Pro -essed ....................................................................... C L6780 Photographic Sets, Kits & Outfits ....................................................... CL6810 C hem icals ............................................................................ C D6820 D yes ................................................................................. C D

30 6830 Gases: Compressed & Liquefied ........................................................ CD684 Pst onrolAg%%t 4LDinfenant................................................... CD

68A) Miscellaneous Chemical Specialties ...................................................... CD6910 T raining A id .......................................................................... a6920 Armament Training Devices ............................................................ BD

30 69 0 Operational Training Devices ........................................................... a6940 Communication Training Devices ....................................................... CL7010 ADPEC Configuration ................................................................. CL7020 ADP Central Processing Unit (CPU, Computer), Analog .................................. CL74}21 ADP Central Processing Urut (CPIJ, Computer). Digital .................................. CL7(= t ADP Central Processing Unit (('PU, Computer), Hybrid .................................. CL7025 ADP Input/Output & Storage Devices ................................................... CL7010 ADP Software ........................................................... CIL7015 ADP Accessonal Equipment ........................................................... CL7040 Punched Card Equipment .............................................................. CL7042 Mini & Micro Computer Devices ........................................................ CL7045 ADP Supplies & Support Equipment .................................................... CL7060 ADP Com ponents ..................................................................... CL7106 Household Furniture .................................................................. CD7110 Office Furniture .................... ................................................. CD7126 Cabinets, Lockers, Bins & Shelving ..................................................... CD7196 Miacellaneous Furniture A Fixtures ..................................................... CD

3 o 7210 Household Furm hingv ................................................................ CA7220 Floor Coverings ....................................................................... CD7230 Draperies, Awnings & Shades .......................................................... CD

7240 Household & Commercial Utility Containers ............................................. CD7 Miscellaneous Household A Commercial Furnishings & Appliances ......................... CD

C- 1-

?'SC Army('lass Tile PICA SICA

7310 Food Cooking. Baking & Serving Equipment ............................................ CD734)1 Kitchen Equipment & Appliance ....................................................... CDU7: o Kitchen Hati Tools & Utensils ......................................................... CDT7 4O Cutlery & Flatwart ............................... .................................... CD7350 Tablew are ........................................... ................................ C D7360 Sets, Kits & Outfits: Food I'reparataon & Serving ........................................ C )7420 Accounting & Calculating Machines ..................................................... CD7430 Typewriters & Office Type Composing Machine.. ......................................... CD7486 Office Information System Equipment ................................................... CD7450 Office Type Sound Recording & Repr(lucing Machine. ................................... CL7460 Visible Record Equipment ............................................................. CD7490 Miscellaneous Office Machines ....................................................... CD7510 O ffice Supplies ........................................................................ C D7520 Office Devices & Accessories ........................................................... CD7530 Stationery & Record Forms ............................................................ CD7540 Standard Forms ...................................................................... CD7610 Books & Pam phlets ................................................................... CD7630 Newspaper & Periodicals .............................................................. CD7640 Maps, Atlases, Charts & Globes ........................................................ CD7650 Drawings and Specifications ............................................................ CD7660 Sheet & Book Music .............................................................. CD7670 M icrofilm , Processed .................................................................. CD7690 Miscellaneous Printed Matter ........................................................... CD7710 M usical Instrum ents ................................................................... CD7720 Musical Initrument Parts & Acce.ssones .. ............................................... CD7730 Phonographs, Radios & Television Set., Home Type ...................................... CD

i0 7740 Phonograph Records .................................................................. CD7810 Athletic & Sporting Equipment ......................................................... CD7820 Games, Toys & W heeled Goods ......................................................... CD7130 Recreational & Gymnastic Equipment ................................................... CD7910 Floor Polishers & Vacuum Cleaning Equipment .......................................... CD79W) Brooms. Brushes, Mops & Sponges ..................................................... CD7930 Cleaning & Polishing C4)mpounds & Preparatimns ......................................... CD8010 Paints, Dopes, Varnishes A Related Product ........ .................................... CD8l. ) Paint & Artists Brushes .......... .................................................... CD8 3 Preservative & Sealing Compounds ..................................................... CD8040 A dhesives ............................................................................ C D8106 Bags A Sacks ......................................................................... C D8110 D rum s A Cans ........................................................................ C D8115 Boxes, Carton & Crates .............................................................. CD8120 Commercial A Industrial Gas Cylinders......... .................................... CD8125 Bottles A Jars .................................................................. CD8130 R eels & Spools ........................................................................ C L8135 Packaging A Packing Hulk Materials .................................................... CD8140 Ammunition & Nuclear Ordnance Boxes, Packages & Special Containers ................... BF8145 Specialized Shipping A Storage Containers .............................................. CT8306 Textile Fabrics . ..................................................................... CA8310 Yarn A Thread ................................. ..................... CA8316 Notions A Apparel Findings ............................................................ CA8320 Pad ing A Stuffing Material ............................................................ CA8326 Fur Materials ............................................................ CA8 Leather ......................................................................... C A

*". I .................... -

! -- I

.5

Armbf

0... Class Title PICAfWCAK33i5 Sh14W F hlig., So. ling M ateraL, ............. .......................................... CAK O.O T ent.s & T arpaulins .................................................................... C AK 145 F lags & P'eutta ts .............................. .......... ........................... C AN U1 5 k O uterw ear, M en ... ..................................................................... CA

S8410 Outerwear, W omen'... .................................................................. CA

8415 Clothing, Special IltuIq &e .............................................................. CA-"84Wq Underwear and Nightwear, Men' . ...................................................... CA".8425 Underwear and Nightwear, W omen's ................................................... . CAS8430 Footwear, M en's ...................................................................... CA

3 o 8435 Footwear, W omen's ................................................................... CA

8440 Ho~siery. Handwear & Clothing Accem uries, MWn'.s .............. ......................... CA8445 Hosiery, Handwear & Clothing Acess..ories, Women's .................................... CA8450 Children's & Infants' Apparel & Accessories ............................................. CA

•8456 Badges & Insignia ..................................................................... CA8460 Luggage ............................................................................. C A846,5 Individual Equipment ................................................................. CA

,8470 Arm or, Personal ...................................................................... CA. 8475 Specialized Flight Clothing & Accessontes ............................................... CT

8510 Perfume, Toilet Preparations & Powders ................................................ CA8.520 Toilet Soup, Shaving Preparations & Dentifices ......................................... CA8530 Personal Toiletry Articles .............................................................. CA

,.8540 Tmletry Paper Products ............................................................... CAr -8710 Forage & Feed ....................................................................... CD

8720 F ertilizers ............................................................... ............. C D-. 8730 Seeds & N ursery Sttx:k.N ............................................................... CD

8810 Live Animals,. RaisedM fur Food ......................................................... CA8M2 Live Atm'S , Not Rai.- J, fur Foo .................................. -.................... T8905 M eat, Poultry & Fish .................................................................. CA

•.8910 Dairy Foods. & E gs .. ................................................................ CAi"8915 Fruits & Vegetables ................................................................... CA

S. O Bakery & Cereal Product . ...................................... ....................... CA-. 89 5 Sugar. Confectim ery & Nut& ..... I...................................................... CA;: A 8930 J~ am Jel s & Presev.... ...................... I......................................... CAA A 8935 Soups. &Je ll ...e ..... .............................................................. CAp8940 Speci'al Dietary Futis & F"ou SpeciAlty Preparation-s ..................................... CA

""8945 Food 0il & Fat.% ...................................................................... CA-8960 Condiments & Related Products............................. CA.- 8966 Coffee, Tea & C'ocoa ................................................................... CA

- 8960 Beverages, Nonalcoholic ............................................................... CA',8966 Beverages, Alcoholic .................................................................. CA-,8970 Com posite F mId Package. ............................................................... CA

W9'5 Tobacco Products ..................................................................... CA•-9110 Fuels, Solid .. . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . CD-"9130 Liquid Propellants & Fuels, Petroleum Ha se ............................................ CD

9136 Liquid Propellants Fuels & Oxidizers, Chemical Base ..................................... BD.. 9140 F uel O ils ............................................................................. C D

9150 Oils & Grease: Cutting. |.uliating & Hydraulic ......................................... CDi'9160 Miscellaneous Waxes, Oils & Fats, ...................................................... CD

1 B O Paper & Paperboard ................................................................... CD'9 20 Rubber Fabricated Materials ........................................................... CD

""3. 0 9=3 Photuf Fabricated Materials ........................................................... CD

93 0 Glas Fabricated Materials ............................................................. CD

"-C 12

I.

IF,.'..'.. -", . .,,' '2-" " ',- . r , K '' " " ,..".. .': ,. ,' . . ,, , ,_ ' ' ' ' ' ' ' ' ';-" " , 'i * ' ' "

AndexFSC A r y

_Vy Class Title PICAISICA9 50 lhefractorie. & Fire Surfacuig Materials . ......................................... CD!K19 Mi-cellaneous Falbncated Nonmetallic Material.. ........................................ CD

-9410 Crude Grades of Plat M atenals .... CA9420 Fibers' Vegetable, Animal & Synthetic ....... .......................................... CA94:10 Miscellaneous Crude Animal Products, Inedible .......................................... CA9440 Miscellaneous Crude Agricultural & Forestry Products ................................... CD9450 Nometallic Strap, Except Textile ...................................................... C)9606 W ire, Noinelectrical, Iron & Steel ....................................................... CD9610 Bars & Rut.. Iron & Steel ............................................................ CD9515 Plate, Sheet, Strip & Foil: Iron & Steel ....................................... ......... CD

9620 Structural Shapes, Iron & Steel ..................................................... .. CD9 25 Wire, Nonelecttncal, Nonferrous Base Metal ............................................. CD9630 Bars & Rods, Nonferrous Bae Metal ................................................. CD9635 Plate. Sheet. Strip & Foil: Nonferrous Base Metal ........................................ CD9644 Structural Shapes, Nonferrous Base Metal .............................................. CD9646 Plate. Sheet, Strip, Foil & W ire: Precious ............................................... CD./4 96 10 O res ................................................................................. C D9620 Minerals, Natural & Synthetic .......................................................... CD9630 Additive Metal Materials & Master Alloys ............................................... CD9640 Iron & Steel Primary A Semifinished Products ........................................... CD9650 Nonferrous Base Metal Refinery a Intermediate Forms .................................. CD9660 Precious Metals Primary Forms ........................................................ CD9670 Irun a Steel Scrap .................................................................... CD9680 N onferrous M etal S r p .............................................................. CD9906 Signs, Advertising Displays & Identification Plate ........................................ CV9910 Jew elry ........ .... ................................................................ C D9915 Collectors Items ........................ CD990 Smokers Articles & Matches .................... CD111M Eedestical Equipment, Furnishings A Supplies ........................................ CD9990 Memorials: (emeteral a Mortuary Equipment a Supplies ................................ CD999 Miscellaneuus Item s .................................. ........ ........ .............. CD

-13

* * *. . . . . . . . .. ... , .. o...... ... . ,. .°....... . ,, °- " ",

APPENDIX D

SENSITIVITY ANALYSIS OF ERROR STATISTICS AND DISTRIBUTIONS

D-1

-~ ~~~~~~ . "' 1 4* ** 07 . .4* ** * ** 4 * . * *** ** i* .ea. NP1.OP1O~eOO.0000Ata1mOb%"1P ;P1 0e eP1P "P.40 o 0AP1P000A.1.PQ PAP

-~~~ a~ 0I' N 4FNP a;:rI P" N on -M1

aC ,- a " l

44 0 **4

I- - 0 "1 10

%0:F .0 a - .I In I. Cc: 0 I : t: :: .e. wt P.1-10 ,w I

P1 aa ft 'A 4 44eeee . eab e

vc -Il~ee 0 e0c 0 c ce c 0ee -NNp aof I wm: AeeeDoGOeDGOw IP1o 0 N YA4

* We AP 10 0 a . .000P00 AN O P PA.flp, t". &,I0N0EP1PO P1 NPP A..fl.0t

z Li

C P1W a t C * ** * . . . . . * C* *** ** * . .I I . . .La0 8 . J. ; ec;1 NP4 N O O 00 1; . 1 00700 1n Nflo.4'P WOI-i C 0 N01.0y -:-OW N04-

3-- -A P. 0 0 0 1 0 A. N1P1 a N 0P W% a- a.* .4, 1N Pam10 -. 0 . w 01@1P

Co 2 w 01 -ft P1 P1 N A. WW .0 P, w 3P 1 N W., P1.1N1 VMP1P11 0.1

N N P1 N1

C C P1

< 1 v

0 w o . .oc 0 *", Ng 4P1P10P1W0000N0ANA.00.1InP1P1A.A.WAM4V%0.0.P1OC1.;:::.P M .% 4

-n N0 We N 47 P1P1 toE .4 veg P1 84, W 0W A 4P do VIP'OD 40 ft0P1f. 000m

cc 0 LaI e a .0 ' 0,.1 : S . N'i. 0'91

z o P1W P A a 0 a 0 0" 0W0 " 40 0 4 Ol m N0. .,* a. .0 PP1m 10 1CA.4 AP10%

9 1 0 .1P .1 .-P . N..1 1 P1P .91 1:11 11 P1 oN 1N PPPP1

96 z A.a z 0. go,0 P1M 0 WN 1Pk" 1 m1 0 a m. 10.'P m . P100 a1Aa.Pm

to $A 7~ 7 IN1:*^

0- a"

. C - , . . 2.. . . . . ... . . . . . . . . . . . . . . .

P1 WI z 004 -I A1 u11 *A N 4 N@ 1 P .0N P1 0- a.A41N0 a.0., a IL a us *p z WW P1NU 21 - P1 %. m1 NP VInP

U4 m 11 -P 11 P 1P11PPPPPPPPP

Li i N N f W4I

-CD-2

0 U NP OOP @000 P10 1OP @U% .00P 40. P1W .P1P 4OPeCO .P1 A... P1A40-2-1

-. . r . 1

... a *3 cO O~~ 0 0 0 0o@ 0 @ o0 0, 0~ a4, 0t &0 n

:a coc 000 00 & @0 00 0 01 :m m0 0 47. CK 0 o 0 as: 0 0 a 01 0 !aK C. 41

la O co :: cp:s:s :014::k a, 01a0 * : D O O O . g O :, a :avof.: n ~ m .. ata 4 .ae aaaaa*

OW - a on -. - -- --- -- - - - -0 1 a4 P

04 460 . Mn Ina0 0 00~ 000 DOO~ P.aa 4 e. a0 @Oftmqp m0aaaa a w o

NaI'r ma 0 0 a N a00 0 a 0 00., 0~ O ~ aa

6- 0 I m0 r a a 0 a 0%o. a ca o ocA4a60.a P 0 ae a o -n aaae -1 a -- - -N-- --- --

v .6

_J on -ca- - O - - - -MN - -- -

0 a

34 a 41 e0 aao4a41o4a o41

cc @V" vooooccoc c c:0~ ~ . .

aw- cc%.aaaa a a a i oa a a a aa L" *

In 4

*L A*

C .j I- L9 - -a !;z

W u "I W -lu Laa 64 a 39 -"W : l l I-.

w w .L w d .4 . a oo o o o:. 6 nII -1E co a. ml t a- "Z '0Z 4n

41 at - C a 60 - - -4t io 0o 1

40) fm a11 & a 31 -m W l z %%J f..I

'L NN4 v"Ap wo _N -a -n r :o Nzzv 'wf.z o f 0II N, (Y- 0" W 1W vu

UN * D-3

- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .... . . . C

-y on N -Y VI IJN NMt~ P.N "I N-d'. mI N N %cA ooI

P" bA t ,O q @ , a a 0 IA . 1 V N ~ mfe V 0 0INO II 0W~

Q a viCegegege~~~~~~ ee.. .. ge g e P.eeC eg0eeem ee0. teg

aw 'A e 0

2 M P.N o o o at *S o# 0= 1-0 .. apANI: I a,@2 a am aNIDI.OOO

my,.~V: CZ I.A: Ng. a1 1.r :at IS~ V C 11,e

oD W, - N "' 'M Ma 'A

U * a acc z

KL C ,

X t ................. ....... . . . . . C* .

< ~~ a mr 0 a. 0 a V04 ia 0 .O@I V a 0 0 N 4 a 0 4 v N0

< 0 cc p . ay aW aa w -4P aw N

. .a a

4,0 00 ae 00 0 0 oo coe0.4p 400 eaNmocw000-00"a w o l.O Vaa lteu aa ,

LA 4p' 0W

LLI 'a z e

9 Il .e

E a # N M V M V V I M I I M M C 4~~~~~~~~~ , W1 0ha IV o . e e N e h a o a I V% t.F.ID A ' a0A@ ~ ac %. N I.

0 10.1

-a 'Ae N . ' ".

= a C,011 Z 01,0 C 0 0 C0,0 14 10 OVICI OIV 0 0 I S IVgIC

~. 0* I gg e~e ee..e..~e. C..eg~e geg ~ e~ eege geg e..~'A

Q 'CA zLA~~ a 6-j aae NZ 0a @ m @ V 0 9 - V aN c

zJe ~ a .wu9 Wb .O aw, mw NW t9 0 W u. .VICIIVVV-~~'w o bO 02 ZC Ean 0 a aV O. MP

a A: 4 O.aW.U Z w -1g" -1 1.9 Wj w,1,aaaaaa-l

a V4 V)I~~~~~~~~~-~~~~~~~~ C J N O-0eO ~ I.N 0 0 l l a O e i O in O O a C i,. ..

ow aJ WOI a.jw a m~~ 4 dlW 4-WA9O NN a aIfV a w -0 ODN9wz1C - a ~ V II V~ NuViVN V

N fC aa In aA -ft aA .0 a0 .Ia a a

* LI.I N aDa4

- - -- 7 .w

0 Otoa.0 0 a o 0 C Ia

a p &0e0 0 4p e0.a C.cc o 000 *. m cc.1 a, m m 0wm m Q 01to-

PO mmm @0000:0000 m00,c 44000.0 0h c0. .aOa0.g000caa h:ma.mm

a, -,m 0v al.4 a 40

fa a W 0 m m- ma. 40 -0a V ammm a 0

4 -A a N -aa -

+ -V amNV n w , a UN m Q- m F --- P

a. m m. a a a00 .c c oocacfcNofi a 1.0V a a woe V P a oo o ow K.0 ay -p -Y -y tyN 0 -r-aa

oi 0

jr 0 0.0 0 a 0 0a0 0 V0. a 0 0 0 00 0 .0 a a 0 00 0 0 0000 N&n- - 00.0 a - -

2c 0 a 0 0 a aa ooao00 0. 0 .a 00000000

- a." *0.l 0 0 a 0 a a0 0'..000 00 0 00.,O' 0 aN40 0 a00.000 .g0.,.

-a 1A-

+~l u "aa z a .uga 00.000.wpr nur a~ ao 0a0aa

-~ a -o ao -

M :OWE - -

~~~~ 0 ft aac a a p a M a In w .a a m a@. 0 . on a" a : Tv a e P 0 0 AP .0 N

~ a e e.aa aaa maaa a a a a -D-5v

444 444 444 444 44 444 444 444 44IV4 z4 4 4 4 4 4 4 4

"a 0,,0 , 4D" . m~ * &N 4t.. g ta O W 4 m o

0 W p - 0446 6 .

P. 0, 4 a

'A 'a to S. P4 I NN*

n a OAN".4 4

N WWI. *IN"06 . ; 0 .* O O @ . * 0 E I @ 4 @0. * @ 4 Q E @ @ 4 , na d *

Z~ ~~~~~~~ WN 444 4j a%0. 4 44% 0 N4 O @4 4 c4 440 04ddI%4 4if4 44, N4 -" P0 I" 119 :444 @ UA4 : mm0. aa C n 10 1

- ~ ~ k * y aID N N Naa 44n444a44 V% 44 9130CNNA

WO J 04 0aa a 0 aU 000# -m0 a in maaI a U aa 0 0 04onaa

*0 4

Cd W OI d N40 4.4 Z4 P0C0.qC4 a " . I4 44:..44Cdd 0d 104 o I%. 'D IJd N- Co. "4 04 .40 44 0-4%444W%4UU%49 VZ O 24 r. -0 .4 -Ib .4d.d%0.AJ dA0

4L a 9

e- 'A .4 1 ,. -

V%1 t4

Am I" a, " .4-~ 304 44d.0.00..04400. D a.4000It d44044 0 444 :4444M

vo 'A 1 41. ..... '

41 4 CW@ d44eo z-:0...oaea 4044@I i z 00.iA 6z,. it upO

o 054 94 *4 44.4 44444 4444444444 *4.4 4 4 04 4. 4 4*~~~~~~ x - 4 I4 0 We00* PO0..0 C. 4 d W xC 0 . 0 N OOWa400Od0-. U

;d j I. I- " W -

4 = a4 :1-1* 4L I" 4o W Wo~t 9 a

- W1.

W 4 619. 0. 0 caN ad4 NO4S.s4x 0 t.S4 IL IL40.O

aow

a 100c .00 a" ,a 0aaI G cC.0c .e 3 ,ma o

Q N S 4 0a o C.4 , .,, 0 s Oea a .0 ,a m

0 0 a tOI O a, 40

06..U 0, 00U.U. 0 wPI4k0U. C q llU.U . . 0 4p 0" a U0U .. GA .U.U.lU..wU. 0C ..U.UUC'.Ua

W 0 9S O. -- - - -0, C4 6.41

0 4 CPIU 00 0 U.U. 0 U..UU U...UUUUUUU U 0... UUUUUUUUUU

a -- a a a- ,. F

K w 0 - 40 quaa - 0 4 0a4 a

W ~~ In~WU 00 a-... m a U..@ U.0U.UU.U.U..U.U. 4w.UU eU... .U..@.. CPI

0 0 " 0 SN0 40@0Q.0a 1jU0 0 a 4.I N4 I 0 IN A40 N W% XOQ4UO, Ap. o 4U Ir -, -%i n4p Aa -a -tP b y

a -n .

-o a 4

- a . o 0E 0 I 0 0 0 00 - 4 04 - 0 WI00 A .4.NNW N0N* 0-0 .0 mAU W .-- . 4. .5 W

53:0000000N000000N0-00N000000000000000-0-0000-N

it .4 m yI 64mt

* 0 c 0.

_iwS- ~

4 U-.V%, w - W4

o mo0 OWI - IL

S~~~~~~~~~~~~~~ %4 .~ . . . .' ot .0 U 1 s00-V .4NU U 1 00 . 4. 49 ot -9. VA a 4

-0 %NV WN 5 I *I~ UmVNVN.NN 40f A *154D-7NNd

8 w e Ua-a4aUaaQ..0a cat4.4@.4,ae N4 :,,.t..

kN 0 021- :6

0 to .6, 4UO 80 'A 0 14 'AU~ .0 -0 . -8 : %0 . 100 0 A O0-lt * o *.oo m10* aa-ta' %a coo 0~6@

bn~ a. : S

0a a Ne Nac . . . e . e00e.. . e .4C 'A 0c .. . 'A c . %G 'A '

0'. 0' 0 a0 * ,,ce *O 0 ' *

U~~e * * . * * * * * **~~~~ . . . . . . . . . .** . . .. . . .

K~~I : e 10 a - :N~ v P- U, N." 1.

IN 10 . . . .4N .4. . .e 4e.uo UNW O. 0 0 OV 4 cc 100 C- -w o",CO -cc m -o p -ow -00:4 --

ccK 4. 8. 0 000008000 -n .0.44 'OC4fb8 t-cc.0-48C400 U 80 0 00

IS We 0 % Ml 0aa0aaV 0 0 0N0 0. .NNw%....................................... *. ** CN -a a 6 CD 4.. . . 1" v z In 'w . .. . ."e mO~O0 O0.8 0C.~0o. @O~0W. et-W g.9 oamv 0~. eU~w NmpICm

0 e 4 In ON40 a t

* m . =- U, 0 000 0Coo 0 9N~a8 4 N 8 0 C . C t- NC 40NN c3 : N - 0 ,, :.

V, -1 fu- Y . pt N-N N

u a . Ya g A0 0f0 0 .A

LA 0 1" a . F a a .. . . . . . . . .C. . . . . . . . ... . . . . .

4fla I op -U .S U 'N N, ICC N M , N

CL

0 a- a' Z1 . .

a ta. .. . . . . ... * 2, u C o a* cc. . . . . . .w ~ ~ ~ ~ ~ ~ 2 -z o m - W8' 0 8 O 0 O 0 t N O O ~ .9 N 9 a 9 ~ a . N . . . N,~

5 ~ % .e Se Z OSitl 0N 4 . 1 5 5

:MC~w CLa C

a- ;z z- M. o

uA N N.. N N9 N N N 0% m- "m m 4i .9 C600UNNN N4PN-t

I-D-8

ad

O eeoc 0 0 000 0 oeo oc Il c9 e woec

CP 0 w .f - -- - - - -- - -

0 4 4

CLM :M0 - C -h - --- p. 0

o P00. 0 0 0 0 040 0 0 a 0 0 %0 00000 0 0 . 0 a a.0ID & !: - 10 a e -W V --a . 4

0 0

m .~U"0.0.0 .0 0 .a0 0 000 40 CV 0. .0

in X WEC0.0.0 co o0 o: : o 000 0 000 00 00 0 00 00 .8 ~ p %... ..0.0.0.m10 10 10C

gAm e0.0. a O.8 o 0000. 01 0 a 00000.0. Ua T.0 a aooo 00..00 w

02 IcW

0~~4 Z C 4.

vs t, Z at 0p .00.0. 0 0 0 0 080 0 O 0 0 0N90o0 0000CCCE0. om%0

~~4.. -0 -a 0 4 4.4;;g 204:0-7 1*zd.W www w

-& i o f: m v.0.4M W 9 0 : 4 w l- :

o ..8 4 .N .f .0 . . .W . .8

444 444 4. 444 44 444 444 44 444 44 44w444 44 4444M

3g).4

Ca 044

. "1 0 10 400 00 0 :.a40 0 0 0 0I

In onJ 4 WI :

4011 0 111

z o*W:= O~~ .4.4 *4 @ 0 0 0 0 0 0 0 o A:2 4 4444 400 404 4.4*JW I44440

0: ;6 04 OO4O O@ON0O0 04 A 00 NN@o W.4.4 4 0 . in -AON0NW..N*4DC NO 0 4 . . .'A 'A 01 *0 94* A4 N* * we a 4**

4 0 ' ilIl e6 I 4 4 4 4 4 4 4 4 W 4 E b 4 4 O M 4 n t 4 4. Ill 'AM

4 41 4 41 4 a4 4 44 4a4 4 a0 4 4 4 4 4

* UN .4 4If6

* 4* * 4 4 . %Ill* . . . jj .. 1 . . I** * * ****I****II***I*4 *

ft 4 a 4 4

0, 0(2 to WI U00 0 0 4050 444 10 4 .11 41 V: 4W40 W:@04 I4 W @ 0CC d .0 I4 4 0 N0I 0 00 4 .4 ID1 .4 P4II4W N0N N .00 F a -0 a 4 a 4

zI @

VR 41,

* .* 4.II... 4* *411-* 4 Pm. ~I- 0. 4% P .

-0 'A .4M 0 . 0-0NI

an. 4P w44 4 4 4 4 1 4 1 4 4 4 4 4 6 4 4 4 4 4 4 4 4 4 4 4

z ~ ~ ~ ~ ~ Po loc 04 0 4 0 0 00 N 4 0 4 0N104In04In4p0. 4r@04 4n..Ao

1.1 fil .4 'A66 N 411 6 -1 66 T6A6664bgo .0 ''A 00 1. 1

-lt ; 41 4 . ,1*C W z- z aa 1 49 6A 0- E04 0 0 0 0n4 0 4n 4 4.n 4 0 4 1 044b~ Lj : :l41 w N

e- ft 44 464N4 0 i4 'A o4n6 A 464In4N4NN

V 44

ey1.1 0 ft. M 04 0 0 0 0 0 0 O 4 0 1 0 4P o W P. M N 4 t. 0 4PJ.44440~~~0 N Wei N N N o00 In 4 0 044 404 4. 0 0n P PA 11,4 N I 4 4

0............................*** 44 11 * I I*D-. ..10* *I *

06. 4 0 0 0 0 1 00 4 4 0 0 0 0 4 4 0 n0 4 6 4 4 N D N N .

0409.0 @0 0 0000 00OO OO OO0000 0 9.e9a.0000009.OO

In0 0 004 PIC, 0 0041 0 a 200000 0.0a, 0. qog cg M3 0

0* 4 P,0 a

4 .9 ~ 3O @ ~ :01@00 0=00900043= 000090&Se0.oz pp 0000.9.09.9.9.90.7

O L 0i: s 00000 0 409 202 200 9.9 Ill 00 009 . 9..9. 9.9,.a

02 P: o 0c og o A 0:00 9.09.0000ag O NINek LA 09

cc0 40 0 00 00 00 00 0Icc000 00 000W0v0a,0M00W04300. h

04N3.2 In 0 @0 9. 000 0 000000.. 9 0.9 0 909.9..9.a.0

<. 400 0 9. 000 n00 00 0 P. 9 . 9... 99009a,

7- 4l e - -044444-4 4

0 , 4Y1 00 P 1

CD 4N -n -V%4 444II e

m7 *o o O1~90 0 0 4 0 0 0 00 0 0 0 0 0 0 0 8 4 . 0 0 0

y P4 am9A.9 0 4 0 40 0 0.4 0 a 0 0 00.00 0 4. 44 0a 9 w v0 0 0 00V%00t.9.9I.*

L . N40. 0 1 10 e 0 4 8 00 0 0 49 M 4 9 9 .0 40.0004) a -n %

O* .. 'a 44 1 4 d 'I

409.0 11 0 00o;! I., . 0000 a .4 .4 114. 0 .. 4444044

IL -IJ c W cM v a -j * i

I =C c a 46

-D I I

%* b. .. eN N gg.eongN.0S SO.geeg N ggO NegC gU "eS@O@

W fam

t 4 :0 o4 U I 4 I 40 S I

* ~ ~ ~ ~ ~ ~ .W36 *. 0 0 0 . @ @ 4 4 0 44 a 0.@@4N 0 0 a WSW::

9 44 0 NO .. a

04 4

*~~~I in "N Wo 04 ft in 44 0 ft N 40.NNC6 i .0 N 044 4 moqe E

4 0 op6d@6 M6 ZN NP of6:;4W a6

v a 6 MNM4M MMM4464M MM44M MM4MM W4W

ag MM 4N on 40 .N44 *4 4 NN "0" " Nmon 44 4 44 4C) 46

40 : 6jgbW$ :I I

046 404@0@0*@@4900I.0@44N4AA@ 4444*QdJin I w: .'Soo 0d wi 'A V 4 N4,*

* 3 6moo

4 *EA4 44 4444O N~j -j 44N 040 N in0 4"n 444AIAIAII

W 6 44 -44N4too

4 &6

I- ~ ~ ~ ~ ~ ~ 3 042%s a i a3 w 44 0 0 04600 N0 4 4 4 44 4344 0 0 P44 .16 * =%" *4404004low*..444444440N440444@4v"

I-~ ~ *! u b:z " a 06OO g0ee Me... e g..g g ~ e U g @ g * g~ g ...* 4 4 00 0 N 00 4 00 4 4 444 03 00us4 44 4 4

49 26 d'44 44 4 W4 .R 4 P 4N 4N 44 44 4@ 44 44 4 o w

646st"~ls

6 ~ ~ e 45a in44*N44N440 MIZ44444 av44~ HN441 444445a3 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ W 6a4 g 44 46 44 5 44

6 454 4 4 4 I S4 4 4Z 6 4 4 4

D-1

ON so444 4 4 44 4

"0

94 044 ,1% 04

PO W . S S@ O @ 50 0 0 aa Ok 41% 6% a 4111h 405@8EG.4557.77 41

* 4 14 & 4 4 40 4 4444411k

4 -0 4 4: 4w re 4w ,al

of, 40i & % 0 0 0 4D 0 a,4

*- 4A4o -

54 70 ft.@7 ty000m040 q I 000ma0 0%55 t w 0 0 If77 f *4.:.4.77UO *0 4O

*~ winm 0

360 ANWI OSSOIAS @ 4 @S@ 4@@ @440fl0l6fl40V0 4'A'A4@'A0l4E N4Wi4If

v 0 :4

F-Nlop 010 491 N4 lb 4N 40 ND ft a 44 N N44af

.(fl aJ a01 .6 A1 4 4 N 4 N.4

an* a a 0"a p 4 10 n 4 -PonUZ 4 6 a. "4 I,%46 S wO 9WP As 0- 09 "Ml AI 0

N o64 7e w 'a a 1. I'm o. "m a - - a . a a 4@E@wINmi win 4

w0s nwm.~ me c t-emal6 w

0 we

*~D 13

0~t 4 - N W - - - - - -- - - -

N0 0.0 4

61 0

*.-VI0 ~ ~ ~ e .8 .4-' .o .0040

Inl. ooo a". 10 le000 0 1z *04, roao00 oo0:0 :O::=T= "W

on is 0 0 0 o I I OI , I , I : I 0

0. 4- 4 II

0 0f wt

U.a0- - - vIb @ 0 0 0 00 0 4 0 0 ~ . 0 40:0 .004 00 010 44 W '

a 4 4D 0F0a0 0 0 2 0 P. 0 N 0 0 am wto W WO O IDA OWE ON o Inft::W% AW0 in= " 0 -n :: 0 dWV O I 0y 400 on 'a. W,4

a 4 % 0 40

C1 4 0

I~ N:M 44r 00 00AA000 0 0000 00 W i 0 0 .4 a P0V0 P. S N M 4.

U7 0 at; O N 0N4 0 NW 0 O 4c 00o 0N 0N00404 4

%o 0 V0 W- 0 0- 4 ,

0 00

* 4"

00 00 0 N0 OO W 00O 3 0 z p0N00 00OUeN

N 0 .4:

09 0 .0

0 w 0: :g:V

-r hI 4 ....... 1W 4 14 00 6 0 0 4 0 6 0 0 0 00041,00 000 0010 00

* - 3.0 0 00~~070 000 W 0 0 A 0000' Of. 14W N 9 V 00 40 04 I04 W00W ON

0~~~~ ~W 0.0 a PO 0 w *.4N %D00 VN0 WN NN N N0 4 - : . 0 0 . 0 0.0

0 00

0 aN. Wa 4 to o, 1100 00 1 0 0 01 0 0 0 0 0 0

4 4. a a -

- 0d 0

'a gig 0to 44 to., -

4v w v s 04Ca O

aD 14.

a00

P 0 m

0.0 0 0000a @0 0 .O a0&0 m O0O 0 3 000 l 0m0 N 0. P. m a

m a k1 D P

aY .00 -,2 40,04- ~- .

Op 4,

; 4g :NgC ' 4 a a- -- -oa4 -- m-- ,a

on W44o i P 0 -n o on Cfu N U

z "wo a, - - CW -a

WO

v g 0400%0 @0o o.* w 0 co ogm m 0 o. a. "0 * w .0 0N P.F

oL o. 0 a nN04 u OP

x Id

9 CN *0 n ~ 04a0a 0 0 'AW 0 t0 m 00 .. aa.

0 0 cc b-jg 4 o 0 -% " 0 1 0al-. 4n W.- z I

4 ~ :.o 0-4 igboWI." 10 .4-4 =n In QI W WIC, w 4= - ,w z " - ,

a Io CA -j 11

2 00 * I0W 0O 000 -40 00 0N00O0Inw""00m0a00mwI00NP.::-4-4-4-4Il

~ .4* ~ - D-15

- W CY t~ a a a a a.0 wY -4 N Mw

64 1-C

on Ma.D- - C Nm N .0 .i ~ .a a- .Oi .0 01 NN

W - 91 40c o

6 41 e 4;0aa0a 0000-., na0 %n- a- W. NtI S a 1 .6 m6 0 In P. a la iA ..a 'A 'A I0 01I v o

3C $ I*J , C , 0 04.

,4Wa 0

eggZ . agg gee...... t 10400,. egg.-P . ecy eg . g egCee e. e g

.0 bJ ~ ~ . 10 . ' @ @O0 Omc a, h .1 .0 . .0 . m . .0 .4.. .. . ** . .

5-g ana 00 Z 0 0 DOa@N O a N N~ -NUS C .@ 0 - In .. 0a0 0 oo:aa. a %*Oam~ 000NNN

a* 00 '0a me fe -a aNmaN0. 0 0 a ma a A a 0t W 4. M -a 0 0a 0 aa

L. CR C

W V 4.

a a z

0 Z OV:

- 10-00 IpS .000 00000 a .eJ 0 .6 0,Aa~ . N N ~ m 0 a = 0 .0 N (M All- e mai~~n .0 w a aa a m m aa 6aa a a

IL :iA N wa0M6 Y (YC . aI

-~~~ ~ - Z IL-- N N ~ N N

- g

40 C, a, 0 a. Na 0~ aa 0aaaVaaU... 0 E a C- 1 J% 1 - 0 .ina l m. .0-Na0 .0

C>C

~ 0 vy W no O e....................... . . . . . . . . . . . . . .

0 0 V% :,a a.aZ~ ~~~ :. 0 NN Ia N a.S 4 - aI

0 ID (. e 40 0

A 'A

a bd wi ..z u I. U0 j a a0 Nn La 4ge -M x

- X "

Xw a I"C mZ v

I- o06 z 4 inj.a0aa4am0 @Oda5.S0 aaaaiaC .an~r, j ;

0 Wug 04- 2: -,mawai~j 2-t1 .

* ~ ~ ~ ~ cl o a Li) x..~ a a~at..a N .i0~f @.0~ 0aU a3.0 %1Caa. -U.0* ~ ~ ~ ~ ~ ~ ~ w w 0: .1' .z" 42 1 - i -NN. aa - a 5N .. a a , CN.0 d iC 0-0

*~~5 tI *~o O : :.jE o z* a a a am~~ I a mN a aS SO Vn

Wzbw I- a4!9 : - a411 V 0 0 V a ILaa

.0aM 0 aat.aa z Zi.0C-0.~iaa0-CaO-.50 ~ ~ ~ L 4. W.NOOaC.~NdNOOt0 *N.-000ai i.N .Ei

-~~~~~ a. aA 3rEOaaaa55-a0*fa50.e.~~.ii.Oaa*CA0d.

~ INC N - aa A.5aN * N a a J I N 40 Smlas-~NN ma a a a ma as Sa -a 4 m m a

A ~ ~ ~ ~ D 16s Ca m

# 0 . 11,a 00l ,:

0 0 0 0 0Q 0 0 a aa0, 0 0 0 01" w 0 a 0 0In a- - - -. -p - CA - -a, a,- 3 s

0 44 - 01 40 -p - -- a, m 0.- ,0 . a .43 -a l .V

4 04 0 K0

o 00000000 zoo * *00. 00"0 00 al* : p:G zoo~l ,v.10n If4 wo :O mc--7 I.. a, a, 0-( ,0 P6a ,

4 0 m

cc a

4 n.004@ 000 0 0 90 0P Do r 000 co' oln rca.0l 0 00 0 w

PM W44 @' t. 00 k 40 'a r P. I~ N 'W0.

-, kn N4 ,w y

0*- - -- -&I U

z Z0 M N0a 0 M D V aC40 610 0 C OO co o 01 0fy 4 2 C)'0 1a,0 a 1 a. U*4U ' %% 0 '84.40.4. a,'01 @mLa. ' 0 ft-

a =% -AL 4W.0 -

* ~~ I-4

Va I aa z a 12..it cct4 n 0 1:w 6

2 1m . 1 67 ZcOw 0W I.dcl- - -= I- Z V a

I.._ I. .4 A %

44 IA e 4 fd

4 ~ ~ 0 =I-

0 4N 4 -* ~ ~ ~ -- -u e- o a a.0a o m oa 0 O 0 0 0 a 0 0 0 0004 oa4op

* .. D-17

dc gg g g am.. aOY OO 4 00 e.....O~ . geagegg 4 e r g...OC ON . gag... cow * mov a

u~ee

u 0 e U'z~c *3 N a*i s3. .' a 2 ,ba 8 V, -

.4,W .434 Z 4. a1000 0 00 ' c o :f,04,a. K0

e , pp g .0 * 0 . 4 4I o UN.,AN 0 N S 1 4

z CY CN

a0 a" aA 4 oa4 CI%1 0-'A go

rn 0 . . 0 ... . . . ... . . . .. . .-,- 4 .! - N . . . . . . .* .A " .PO * * *0 *- ~ KI &A0 aV -j440 4 (P4. 4..4 4P. 44N 4 C 444 4 @0 4 Q f

.6 to A (j ( .4 N P.'I ~0

m ,00 0. 0. Me4 - e 41'o .. CP. 0 U'- A 4 D M @..N 0 .4O N 00 W M 0.4.4.4La4 i . . . . . . . .1. " P. . . . . . .

It InP @ m 0 c e e 4 ~ c . . P N~. w . w P c ~ ~~ N A . 4 .P4 L.

4 C

a . Cga ac

0 we 0:2 N4 V CY 0 Ac y N in N NP.o%0 0* . D O0 cy0X :1 ! i P.% .. t s! -.0 1 ,i 4i lt.." .- w: iCA

IS t. 60c oo ~ o w %O vt f~ .4-MD W -** -ce -10 0 a, VG I, W-Li.. ,F* mP

o ~Of40" 0 e

N O O 0 : 0 0 : 4 N O 0 : 0 " N : :4~~~~~~~~~~~~~~~~~~I a4 M 4............ N4................

F-n Nx a = O4A

.4 0 41 No e N4-0

W- *" a m l4 0 "

a.0a a zw r NN 0. aO. e o~NN .n N0N ,- 000a.aa.8cc -Veccc4. 4a P ... g .OC 1 4:19.%.9...9.9.9............9.... i i It** *..... V......9*It i P * li i i~~~~,~~P P. -, m g * 1P . 4 - 0 -.. .

.4 to 'A0

IL Z a I *O " z 9 .a N e

-~~~~LI PL ma -A4I "M4 A! -a4 -4. oa~N P Z. a-% .4 .I.-~~~ fm on. 0.. us 0N 4. 0 N .4 4 4U4 A*.4* e g .4-. P .44 0.

ey -4 4P 4- 4 N. t 6N

.4D-18

N 30000 000000 0000 0041O00 01 60Nt .000CS000PI,000 0 0 00 0 00(00

.4 6 PP.a c C ,0 c a :0 s0s a, o0 gg :0 a. CP 0 goo ooa, oo

0* 04 co cOOO o ca00(11, 000000,4O 000:" Le: 0N.00coo000000 C:.CK m c000I040:

on G 600 00 ! 000 a, ! 00a . 0.0 0 010 0 a 0000.0aC0I .00,0V

in 46 . 4..--

06000cc 000 Ch 0000 Ch0 ::a00. 000, 0 0 0

.0 za 1 600t0 a Da0 .a "-c 1 0 0 00 M 6% 1% a-lP cc a 0 0.,40 0 10 *0,0 'AGO0,00 00

n a4. a 4. .%000D0U 4 P"^b.W4 00% OV D Pi0N P 4

00 l.,f 40 0 004 00a0 aC 1 11J COO 1.0 00N .% 0 0 0 6 1 00 64 0 0 A 00000cc 6Y .44 0. a, A a O - 1,aa,'

LL. It 'aLL. a 0 .80 0 000"a00O0"O000a:: '100 00 0100 rCOOO*DC&.%Pm 01C M . PP . fu

0 ChO .1 4000 00 10 00 C N 0 0 N 00 NI 0.00r .8 00 0 0 0 0,

-0 1.106 1 0 00 0 o 0000N0 'tl 0 000 VOO WUMhCO W ."000O0Cie0in

0" 014 00 00 coo -0 00(%I 1000 oi00N.oOON ci. OCN *to 10"N VNN N00N .4.4 NJ

we 0N 4 c4Co00 ft 0 a0 0NOAO cle o0n .00 N. c-0- c4 m0 N - -8 - -10 - - -

0 0e W4N UCCMC coo .4100.0 '040 0N.0iMP~n 0.40100N000'8 00It%001N.4'Ndo01N.*N.4'

cc. I, , 4 ", 9 0

0 qp1 01 04 CP. a, V' U'.0 N7 N0w' N. 1, a, 4 * 4 N000E E

0 0

0 0

4M iN 0 .4* Cu t-1.49 N lkNN. .4. n W% W% .1, .

0o 011

0 a

64

cc i w%A05 0 IN N N"I

x 064-Z~

1.1 .1 Q' xx*jw o r wc 4 GO oW -lA I 3 N ", 1.11

6A~ 3.0 0164

30 49 4w

0 * 4'. .60 000 000 0000 000 000 0000 000 000 00000000

cgs

IC IC 4440 6.4We 206 00 0 0 00000000000 94-0-0.0.0 0000a000mw0m0 0m0m0I0m00 za0&0 0

94 on .0 0O- 4 p4

VD 19

0- a. -.. Cy IV -C - - - - --r r -

t e .. .. act .* ct.*g aC es04.. 4... c.w At. . . 0C

"1 .0. 00 00 C, W% cc.O

GI V)4UD 0e

w.

LoI$Za0 naJ uac na zaJa' , P ION Ill 0 y 0 4m ND ap0..f I, ,A A AA

In a 10 I p l I lI 0 0 0 4Ct 0a1

~J eIN 4 4 , eee

(Y o w .ac4 D-Z aC D nI DN ya mQao4

m e Un0W * **SCCS

- 92 M-~ -- ~p am~ n amt co Da aaaaaa. a. r #IN 4a

CCC

ey tm &A'A'D m -t o. -# -v * Nj% N 4 a0ean.,. a- 4 n.Ja, a

.6 - .

551 1 If!O we .* 0C9~ 1O0 N~l ' WI .eo, 1! @0a1 Na4 c c o ,o0 4c a maN -rNN. N m a m~~ Z: 10 . WNI D Na aa

m we 0 v% to - 0 v- ft"(jo D4D

ey a 1,IDN"I(

01~~ L.e s.1 1moj N ty S

*~I o . '.. .4 1NN V N N

de %a w I- -

aa l 1v 1 Z- o-In 4

-z w P. 3-%zc01 A- I. t

-a -4 wM MolbN08=01aCMlawtSCbtCI :!C u tC t n M

zL W v. "A IL- o-0,. 1. 16 w 11C 1 10,0 pgm-N W~ m z sim w mn m:too= -S Ww 15t ."

* ff- a eWoq 6. w

w 11'. 4 .m a t : Dl::O N"lw D.: O z

0 Z 1.t ~ 41D-20

0 ... e COC a coo. cca 0h a CeoSZ OM a *(o ,OPI zU M - - a, a- M M -- - M- - -. , 0 MM - -

00 0 000 000~0,00:. .0 Mg a' 0 Oa :M000 a t M*Ic G0,M aa 0ai~ g 8 eeo. 0 Voo.a e . (PI M a P r ,a

co a@.@. 00 08 "

%n ~ ~ 00V M cc 0 00QM 0 M0 0M0a 0o'M - M'0 0 0 0',a M p (IMMM

a

00WM CO 0 0 0 .0aV 0 .00000 0 0 a 0 M 0M.a, 0 0.0.0 M0.0.0 MO'O

w a 0 M- 0 c -

MM(V a,*0 . 1~e0 40 c 4 a 0&0.0M. 0 ~0 P II'p.0 9pMM.

to 0a * 0 0 0 0 0 0 0 00 0 0 A 00 .0 0 0 0 - f- 0 . 0 0 0 0 0 0 0l NP A0a MM Mr - a, %- MMmMa

* 1 coo opO O O Ova 04o r

*) to a , l' 4N

CY 0 a ; 00o00 40 0 1

'0 a91

0 aaa a 4 p a a a 0 a * a a a aa aa a a a aa a 0 a a aa N a. a a tA a Na aa N a a

I aj

0 'n a c.0 C.1 5' 0..O acaIa 0000 a0 a <2 .W 0 0 0 4,a 00 0 a o~ 00 Z,5 o o o.

0 w.M a, a, Inh9 0 T

a~

o z aDMkmW v o w o-a

0 z az a?

4L - a- au

0 o o1

aZa '

L'a j x 0" 11 2! 0

ac-! z e4 Z C, cc~Z 44 0JZ 0 Cz.Z 0 o -c Q 0zx - L

1; w-c e 4 - -mw w - 4- w 2 w a ow w~ w m. w .. wmw a - - a %a

N~~ NC NA NW~ iZ N~ (Y N Np N

-21P

rRD-A162 565 PRICE UPDATE METHODOLOGY FOR USE IN MAINTENANCE W2EXPENDITURE LIMITS (MEL) FOR SECONDARY ITEMS(U) ARMYMATERIEL SYSTEMS ANALYSIS ACTIVITY ABERDEEN PROVING

UNLRSIIE GOU..U PSKS T L.NOV 94 F/G 14/1 N

EEmE NEEEE

4

96 33 .2

%1.

iiii,_o =-

1 .8

1.25 I[! 11.6

MICROCOPY RESOLUTION TEST CHARTNATtONAL BUREAU OF STANfARDS -1963 -A

-w

" *' *.- .--. *°-. ***-. . . -.-.. . ....-.-. -. . .... . . .... . . . . . . ._............, .. , . ........... ,.........., .,.,.,~..........-.............................;. :%....,,-.-,..- .,.- a* * " - : S .'..* 'l l i ~i' " "' .'' " " . * . *. .... * "* ."" *." " "- "'" . . . ~ . -

onee eeeeeeeooeeeee ogoegooooooag fft

.d e*f r 0f 0 "oe 4lf

*a4

b -4 0 ge I go Ida IgaI s d- s I I

m. .

46 0 o aao

In toCaS OS *a @ U.O E~~t@ @tE C @ E m a @dPEa

a~~~~~ wep"d4m s.e . to

0 e 9 9 9 9 6 9 6 9 0 9 0 9 9 09 0 0 9 0 9 6* 60 *4@@ee inm* @ 4 * U~ UE C E C E m @ Q *

a aS0 44 *O~m~maCCC~~dmO EC~SCE~aaO*~m~~aWU.E.E EE@

WsoaMa.m:d

a 6 0

a Iw os . I . . I I .9. . 0o 0 . aI 099 0 *0 0 0li6 a.. . . o a * . .0 f

in a ft06 om W1 Pb 00

a a1 acc600000000040000000*OOOOOOOE

:m 0suef

LI

&N to 4W- ~1 hi. saMWonWMiaMsaMa.M.na JMMNMMNM

U ~ ~ s gutdW 1 3@~Oem@@damemsm49maP@~~@@Ea mva

bmw xW ON

o' IM a map a owdme, 30, Pd1 a S*7 7U M 6 !d I

as do ft fti

* D-22

0.

NO, 0 *0:O:O~OOC :00oo0.0c .00.0..:*,::.: to,0.~0 0. 0

80.::. s Co 0 0 So ::c 0 04o.: 1%o. .. @ 0f l 00 0 0 .oP.ow :m

-6 w - - -- - Q, W.

0 0 :44000 10 0000 0 @ @ 0 P.m 4140 00 f0 0 0 A .#.@0 0a a cc 0 ~ 00I 0.0P. clo .. . 0 ID 4 4, 0

4D 0C -r 01 IV - - - - -0 -

4 1

C go

CP. Ty - -

... @0 0.~~. @. . . . . . .

* - . - -- --- - - - -0 000 00 000 00 000 00

z

S::: : ooooooooocooooc ::e: . :;o::o::oo0 0 0. 0:

-eft~co cc c cc c C .c50c m-0o %^ mlo -v c oA'.O O0 . ,^ .O

NWA WE*. c 00 0 00 TN O O , 4N *..0 .. .. a .**w am 0 O

r -W!

o ,%W -gw

"W WI No La. -L -Z . Z-

* 0 w w w oc Sa C

o 4 Z 44 19 a am 1a NP2,0 . .. . N4 8a

N N--N aN N N N N..a N m a4 . .. . n F 4

U D-21

. . . . .

asd . 0 4d.4.

~~~~ IA00@00@0000000000000000000 00000

q1: 0*000~ 000 0 0 0 00 0 00 0 O O 00 0 .006

14 d:0 d 0* * .2 .. -

LIN la44 14 1 1 14 4

44

-1 00 0 000.04

00

0 14

14 9 0 .4 a4 09H44

v a oo 4 1414 14141 in

-l M* 0 C6~V 1 14 14

N40 0 00 11 4b 241 ZI low4. 14 14 14 141""44 ^t 0 144440 ft* 0

* ~D-23

.... ..{ 1 T ~ T~ .I . .. -- - -.- - - -IU

*~~~~~~~~~~~ a 0O~ a6 00 0 ge g eg e * 0gg g o g0e eo0.. 0

-~ ~ ~~1 1114 0. 1. * a 1* .0 * .* :1 * . 0 ............

ly cy .

.. . . . . . . ... ...

3 3

so 4 a 4 5- E m s a S S

4 C4D

40 aa .w

.

*8 .4 0 00 0 yAOz we 0a@ O o a C e N e 8 U . . ~ j a 'A@ e. a . 4. c a *am

a N. 400w0c wm0 00Pt a a -A. A- N" W0 % a a aa a

W %0 0

0 a 0 CY onf- . 0

OP N

0o a. t -o :m" 4 40 NOW

Uv W

o No Gko- 4 .C lo-a~ a aM . a a 4 a. a a 4 a aa a . ~ a a

Ui w4d ON NtOn"OaO ~~ 0 .~*ae0 C m ~ o 4 . pJ JrAWN0-1 'CA aa O 50 0~oe a 0 ~ ~~ a e ~ o C . .C o ~ ~ ~ .

Sd, e . . .* . . .. * * S *

~ C ~ .e.J. .SdA~ a 4 aard masm 4 45m 4 4454.4.4 m-s091 .

(N~~~~0 ilf~lr i wg 'A 'A Iaa a a 4a a aa a a aa . a aa . .

WO no . U 4 'A -LA a IA 4 0- 5-

. ev n 0W 6- U

w aa 9U a w - -It a- N=a 11 I.WIm LI 9-Call "T at I49-09- m-99 42

a0 40g - - N N N N4 0e

I-!" 3% f eqUt 4wwC = . " 0 z :t w: :~ t Wwf - N N N. w- 0 4

C OC W. O.NC CC.~CC-.a4 CC~a.444 CN 9- aC NWOD-24- A0~

r.~~~- ... . -

*.We 0' * 000.40.~~~~~~ 00 a4 004. 6.4o,0o 1 0 000 0 oeeo.*.

47, 4we 0

,0 0 a 0 0 W% on 0nP.ooo. ao1o. 0 o-4. 0 & a.444.e.

Olol 00 10 -- 41k a, 044. a - 4 P ,a 0 s l G 1

.4 *

0o.4 W 0,af 000 m 0 0 00.4K.4 0 a 009 909 * 6A9 9 M9P.99 t9f9.

w4 a 9 0 00 099 09 O 9 9 9 a 0999 , a4aa W 0 0 m 0 cy ma a@a4 4 .4 - -Z N-0

o 1O a,

Al~~~0 O" oo.4oo eae~ 00o 'a 99 *w90 99 0 0 aco 9.4 099

CI .4 -- ",.

* UI% 099 4 w a004 0 SACp* 'at 9900 a4 0 999coa .4 nac pPIN 0 -f 0. 9.0. za 90 42 m vpc"*I e0 0 P" .

X 4 ffnPW4.oO. 1040 4P.4%0 -'a v44.' m o 909 . o 0 wa0 v o. .4a 'a:V :-aw. o..

j I

o 0w w 4m

- U3 50 b 4

14 1.Al flEj .; :4 I.~l nfl tbSN 4 w- a I -w MI W I w tw %0 0 .A z 4 U "wb

a 4c

~ .4.40 9. - 0l- -AN -

~~.0"N w wp~m0 ow0R Oa:

o o p 4 a

* 0 D-20

ma.

4 ~40 44o so is sal to4 ~ 4 4 444 'A44 44

4 00

0 0:: IA . 1

*"a00 000No 00 00 000 00 00 00000 00000 0 0 0 0 0

-C Sb0so f *NOW e00 0 0000oftewa@@4u'ROMw44,O :m 4e:O404 O0% 44 t "NM4"Mm

We~O *4@e@SSe4e0 044 I~ ft440 @4446A4fl.2gjag ft Wi @@gOe 9 09 * e * 9 @* 0 in O 0

ga to 0o 404 .4m 0 .0 fy40 4.004

* 0 4

of Mb .0 Wf

* ~ ~ ~ ~ ~~t 40 'A 4.40 4000 44 4 4 4 4 MA' mV6 b,4 44 44 0 ON"w a .. 0 ""Z." 04 444 N44P4.

3 0:0": 0

* so 4 4M

a fta kbl00fe * N

* ~ ~ v ,-.& l0 44 6 4 0 0 4 0 n 0 4 2:s44i 44400a404@4 464443 4

z 40 a* low1. a -No

to Kg; WO W

Ma S. ,0 4 U W0 b>5

-4 49 W t0 ON

4 .0& 00600006044044404406 04@ 44us4U44WOO Sb *O0@@ smi9ee001 eeeeeeeeeee ea*ee 0S@*@46i*e

* Je 446 @e @ 4004454446044@ @ 4m4s:6444

&sw&s4esZOMMe4smoi 48444444444444444444444

*4000 4000 .4S40 4404 ft ft," 0 4@ 0 4e 44 4244 400006* @@444*@4444 444444@4@46 0 4 0 0 4 4

~:! 4 44 ~ 4444 4444-264

no a: eel ::0 lobE~E.* 0:0 0 I0:0

C::0:00:0 0f

*~ ~ 0 0 0 00 0 0 O 0 0@@*@.@* 0 0 0 0 000000

ILMOO&O 0. a 00 0 0 0 0 0 000 -0000 0 0

4 6 .4 4 a 4 4 O 40 a& a

4 6

4 led 44 4 4 4

*oeoooewoeeeOooastod0.adooseooooo0000000000

00 0

00

00

4 6

- 4 4 4 4 a 44 a4

a .au ao 0 M0 0 0 00 o ~ o . 0 * 0o aat~ 4 oo oa 1 4 44

Opb a..' 00,00 0 0 0 0 0 402 "A@foo0000 00w400 e% eoftafte toO

4 0 ~0 0O 0

"N Ue " 00 0 0 woo4aw 6O P"4o

II 0 6

,.*qjfA .:v oo o o o e o P i 4 e n~ oft-: 0:91- .1& am o no .9w16 0w TUN 4z w~f w PdPM U d

0 f4PdP4 d4!:* 4 6

a 4i W

*:W M 0 4400Il@qi~@44P0P0444400P44Wd~ 04 4P0 P Pd4 P Pd 4 P 4P W1 PaN i'a 4'dJPJ~d6.dNo =a ti 'Is69 am4064 1 a sW- w ww w " N no40 0* d @ 4 40 0 0 4 a 0 0 4 0 6 @ 0 d 4 4 0 0

on0 6 00 O V W4j~6 g % %.4 4

.106 ~ ~ ~ ~ ~ ~ ~ ~ .. .*@0@@Ud@400@4@000P0000004*000I

~ 0 @4D-27

fast 4= 2400.0000M w ONN0000000000000000

U..0

* N AWb @*066q N6@400EII 4WS 4 N N E N4 N N004464ild

4 g* * 90 0000 00 6 0 : " .0 0 000~ 0 0 0 0 0 @ 0 00 00 0 00

is W

y a0 a .0 A4.0 1,04fo I O" 0 .O N""0 ~ bl 11

4N 01 a a' eo m o N

*~ 0 0

46 0

a = :4 * m 4 0 0 4 0 4 4 0 E N . 4 6 @ @ 4 4 4 . 64 N 4 4 4 4

4O4@ @S@ 6*O4 E4@ E44 N44U O4@ 44@~@@4 6Et EEE

04 0. 01 N44 40 UO .1 IV**N J.4 4140 4446 4 AIN @4; J J,6,4 b 01. 0, I

:0: bl 03: 4 4 0 OS 4 Z 144":t444t

*I M

W 1- 04 6 4A m .. W 46:0 680 *44 NIA@ 0 4100@44 4@0 4@4@ 44

4 04@4 604 044um w S

46 a 0 * 4 6 * e E 6 . O @ 6 4 . 4 4 4 4 4 N 4 N 4 4 4 4 f*~~~ ~ aN M um 000*000* 000@ 09 e a 0~ go0000000

36 0W Z WONN o at a4- % e o

.11 a0 af

z46 :0 It U4 : 04Wuww4I

4VMS 4 444444w

MlAzuNo- U 0w

44oft

4 4 M MM MMN W4 WM 4WM M 44 MM MMM 04 WM MMD-28M M~

4

Sa

40l

*~~ ~ ~ ~ ~ ~ f OO 4 ~ - 4 4 444 4 4 4 4 4

a ftim 4 W 44 In 4 .0 .. 4( yo

%4 444 4

4 0

CD4

Nr .0 N 4o po e* f

'a blb 4 l I bo:

46 W a "a.'

4 NO0

'.0 lb 0 lb01

@444 @N @4 @N@ @@4@ *S N44@4 4N NSVs@N@~D-294.w

.6 .. . . . . . 4 .

4* ~ ~ on444 4 444 4 46 a P.44 40 0" N Ion44.4 4 44 1A 44 4 464S4

N z 0A

i0, a- a aMb 6% W4

IA .. d 4 N ly I

eX aa"

A 44

00: 0 % 4 0-a 4 4u~. Oa. 0~ ftiAS I...moIeea N40@e 00 00 fomam m

S 4 -0

C0go ZE~ O O A O * N O A U * C U O O C O O O C f I A

v .4. C. COOCOCE@NN CA*E @CACNC C4 4E

o ~ t -0- * e aN 46 04A. *C.@5U4flf C~f 45 4 @ENANA

La too A 4 0 . No- -

< to

- S-IA a : ONP40 : 0.0 AP 4:0 6ae

"- a u - 04k ,1f1m S .1...0 '....

96 Zi A4A 0C0 4lb-- 2 9A 14 PA4 -I j- NA-"fy 4o li to 40 sol" to 0944 Om .0 p ft.sl 9%.0 weS4M.4 M M M 204ple4

ul W, W j6 -I lm" ..

0. me

C 0 4aSo. Z 4 NMM S4MC4MM S4M MMM#MMMAMC M~WS4S54SS4SMSSCAMSAC'CC4

-4 ~ a E a@ C 00~ 4 G0 N 5i I U5 .OOlA.,Owi 0 A. E C* ~ ~ Wt iw" C. e U0@ @00@com e w! 0 0 ce EE e am C~A~

66 Uf 4

4 41

* ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ q 4 f4to44. 4 44 4 4 4 4 4 4 4 4 4C 4 4 4 4 4 4440i 4~

Nv1i f* -~ ~ ~ ~ ~ ~ ~ ~ $ -f Oww CQ @ O O @a @4n @4@A N @ @ @ Q0@ @ 4 4::^

*~ ~ ~ ~~~~~~~~D 30@IhA IEO ICIS*ES C A CE~EE

613

g a

if b. . . *ac . e ao . .. 0 co a o o o a a

l a. ab &G . 9 Pa

C1

0- &00 @0 (P @00 00 O'e ft 0 ft 0 000000000el

< z a IF-In- *" o o ae e a e a ' c @ c fta 41,0. 41' e% aeeO10 aoW

14 44"f 4 'A -4- 1'4 I

ac a

ON a "N434-a

o -, i 4

1.0 w

v #f4 0 0A0000 000 ft ftU 008 OC0 0 00070 00 00 0C 0 0 a t Ua1 0 Ma % Un 03 a,

0. 0 . -*, .

oft0 SO 4p ft' ft0 U .0 % IA .0 0a0A) cl 1.0

IL a a

'A t -04 0% 00-e@C@@O44'a0-@Ol00 N Apo1E0O0 a .N ft. CIA 0AfllI04 04 'D 0 CY 340 .0 41 V% 44U low% In CAk w4 .000,41,A~

Mf ZAN "d - g - , ( A a0 ! .4 .0 ' A 6

C6 if0- 4Z N A -'~i -6.Z T Z! -Is -L V404 W' I

4 1 'W" .00

1. 4 .4WWZ@ W: o.we aw a @@@@1 @0@R L@U100 I*1 =a f@@ 0a@@ jla xa.aa Oita : a o o - j j 24 9: 4 a .z: ,! I . - V A' 0 . . a

*1 0. -9- '

- D- 31

a.49 0 N45 .0100 d.0 (

W 3 4

X:) ONO.o ovJ: .Ii4440,

4 0 -

*.0 4 r 4

U~~~~6 sPe:4: .E . .N .o6 CECEE' . ~ NAEE4

. 9 41 1 1 0 0 4 t o

'.: 00 4 Nme aU a ~ ae. C i4 e~uen 4 e N N 0 NC .OE1 91 9ei 1* 1 1 i~i 9i C W ~ t @ m el 0N 0 N " 9%10 -

we 44 isW N U ea0m C .e m a ato to a 'A MCoa

a M y0I V

IO Of 'a 1O 11 aIO 17

cal X W #AO V1

o UP a ~ 00 4 - WL W - 1 0 l .. S

we SOa c .

i Wa 4 S0

N44 4N @SS@ m@ m@ N0 00 NiOUinnN in SNin 4SOD-32U dN

lp .0

~ ::::: 0000:000*:::N00:3..:.eg:::~.4. me m 0 0a am a a

*~O Oe we 0:000sma a a

ama m a a

we OR at a aa ma

LA d in aaaa m

U, U C

* NC.O~aS@**@SC64@aC~aSfla a 44,OW

ao 4 m.e~ m

**o*: In l O N .S le*4 ,U,00U, M ft Ca a af ~ 4

* 0C

Us 4eee SmOS j4 16 @0 60144 20m. RN same W@~C@ amWm W OWow

an N4 0~ m Id I

a m N C W 4.0WNW4 WIVba Vid Mu ma a m m4

x 'so ~ ~ 668U a-.- 400i.@*.@CaW@V0@@@4*W46 a@a4I 4a* E WaC

* A NeW at ad W ~ad i a 4 m

a m-33

. . . .

.GISTI. U UI .. Ij I-J I-r.- .- A

~ TITLE* - Price Update Methodology for Use in

AMSAA - Maintenance Expenditure Limits (MEL)

THE PRINCIPAL FINDINGS and reconmendations of the work reported herein areas follows:

1. Each of the five index sets investigated for its applicabilityand accuracy--Major Subordinate Command (MSC), Bureau of Economic Analysis(BEA), Office of the Secretary of Defense (OSD), combined BEA/OSD, and GrossNational Product (GNP) implicit Price Deflator--was approximately equallyaccurate in predicting current unit replacement prices.

2. In developing a secondary item MEL, the Gross National Productindex should be used to update item prices that are more than one year old.The rationale is that the GNP index appears to be as accurate as any of theother index sets considered, but is clearly easier to apply and, unlikethe other index sets, does not require that items be grouped for indexassignment thus being applicable to all items.

THE MAIN ASSUMPTION on which the work reported herein rests is the expecta-tion that the GNP index will be applicable to price updates in future years.

THE PRINCIPAL LIMITATION of this work which may affect the findings is thatthe accuracy of the various indices was tested using Troop Support andAviation Readiness Command (TSARCOM) (now separated into the Troop SupportCommand (TROSCOM) and the Aviation Command (AVSCOM)) items only. There is apossibility that the optimal index, Gross National Product, may not be thebest updating index for the other commands.

THE SCOPE OF THE STUDY was limited to Army depot maintenance activities andthe depot-MSC interaction in maintenance programs.

THE STUDY OBJECTIVE was to develop a procedure for updating depot reparablesecondary item replacement prices used in Maintenance Expenditure Limitdecisions.

THE BASIC APPROACH was to identify inflation indices that are easily locatedand that reflect general price trends. These were assigned to Federal SupplyClasses and the item prices updated to an FY 84 level. Selected index-updated item prices were compared to actual item prices and, based on thedegree of correlation, the best update method selected.

THE REASONS FOR PERFORMING THE STUDY were to develop a simple to use yetaccurate means of bringing to a current level the prices of secondary,Army depot reparable items. Current prices are critical for meaningfulMaintenance Expenditure Limit decisions.

AMSAA Form 43R (19 Feb 85)Previous edition of this fore Is obsolete

- * **.- - *i.. .

":' " " ' " ' " :' " i i l " i " m ' ",,. " " '

+"+ ".," " ; ', .+ ' "-. '."" " ." ," " " •"• . ". " .". , <. % ',..," . - '," ,

THE STUDY SPONSOR was the US Army Materiel Command, Directorate forSupply, Maintenance, and Transportation.

THE STUDY -EFFORT was directed by Mr. George Turton, irectorate forSupply, Maintenance, and Transportation. Currently, the effort isdirected by Mr. Dan Taber of the same directorate.

COMMENTS AND QUESTIONS may be directed to AMSAA, ATTN: AMXSY-LLSO,Mr. U. R. Poskus, AU UON 687-2419/5767.

GISTSIT, " TITLE

I Price Update Methodology for Use in!; AMSAA + Maintenance Expenditure Limits (MEL)

THE PRINCIPAL FINDINGS and recommendations of the work reported herein areas follows:

1. Each of the five index sets investigated for its applicabilityand accuracy--Major Subordinate Command (MSC), Bureau of Economic Analysis(BEA), Office of the Secretary of Defense (OSD), combined BEA/OSD, and GrossNational Product (GNP) implicit Price Deflator--was approximately equallyaccurate in predicting current unit replacement prices.

2. In developing a secondary item MEL, the Gross National Productindex should be used to update item prices that are more than one year old.The rationale is that the GNP index appears to be as accurate as any of theother index sets considered, but is clearly easier to apply and, unlikethe other index sets, does not require that items be grouped for indexassignment thus being applicable to all items.

THE MAIN ASSUMPTION on which the work reported herein rests is the expecta-tion that the GNP index will be applicable to price updates in future years.

THE PRINCIPAL LIMITATION of this work which may affect the findings is thatthe accuracy of the various indices was tested using Troop Support andAviation Readiness Command (TSARCOM) (now separated into the Troop SupportCommand (TROSCOM) and the Aviation Command (AVSCOM)) items only. There is apossibility that the optimal index, Gross National Product, may not be thebest updating index for the other commands.

THE SCOPE OF THE STUDY was limited to Army depot maintenance activities andthe depot-MSC interaction in maintenance programs.

THE STUDY OBJECTIVE was to develop a procedure for updating depot reparablesecondary item replacement prices used in Maintenance Expenditure Limitdecisions.

THE BASIC APPROACH was to identify inflation indices that are easily locatedand that reflect general price trends. These were assigned to Federal SupplyClasses and the item prices updated to an FY 84 level. Selected index-updated item prices were compared to actual item prices and, based on thedegree of correlation, the best update method selected.

THE REASONS FOR PERFORMING THE STUDY were to develop a simple to use yetaccurate means or bringing to a current level the prices of secondary,Army depot reparable items. Current prices are critical for meaningfulMaintenance Expenditure Limit decisions.

ANWS Form 43R (19 Feb 85)Previous e'lton of this form is obsolete

, , * .- . . . . . . . . . . . . . -. .,.. - . . . . - . - . - . • . - . • . ... ?'.'--.''% ', -,'""' ."''".-".- .,." ."-".,- ." .".-. ." " ".":",

- - -" .. . .. . .

?HE STUDY SPONSOR was the US Army Materiel Command, Directorate forSupply, Maintenance, and Transportation.

THE STUDY EFFORT was directed by Mr. George Turton, Directorate forSupply, Maintenance, and Transportation. Currently, the effort isdirected by Mr. Dan Taber of the same directorate.

COMMENTS AND QUESTIONS may be directed to AMSAA, ATTN: AMXSY-LLSO,Mr. U. R. Poskus, AUTUVON 687-2419/5767.

"D1

GIST.Price Update Methodology for Use in

ASAA Maintenance Expenditure Limits (MEL)

THE PRINCIPAL FINDINGS and recommendations of the work reported herein areas follows:

1. Each of the five index sets investigated for its applicabilityand accuracy--Major Subordinate Command (MSC), Bureau of Economic Analysis(BEA), Office of the Secretary of Defense (OSD), combined BEA/OSD, and GrossNational Product (GNP) implicit Price Deflator--was approximately equallyaccurate in predicting current unit replacement prices.

2. In developing a secondary item MEL, the Gross National Productindex should be used to update item prices that are more than one year old.The rationale is that the GNP index appears to be as accurate as any of theother index sets considered, but is clearly easier to apply and, unlikethe other index sets, does not require that items be grouped for indexassignment thus being applicable to all items.

THE MAIN ASSUMPTION on which the work reported herein rests is the expecta-tion that the GNP index will be applicable to price updates in future years.

THE PRINCIPAL LIMITATION of this work which may affect the findings is thatthe accuracy of the various indices was tested using Troop Support andAviation Readiness Command (TSARCOM) (now separated into the Troop SupportCommand (TROSCOM) and the Aviation Command (AVSCOM)) items only. There is apossibility that the optimal index, Gross National Product, may not be thebest updating index for the other commands.

THE SCOPE OF THE STUDY was limited to Army depot maintenance activities andthe depot-MSC interaction in maintenance programs.

THE STUDY OBJECTIVE was to develop a procedure for updating depot reparablesecondary item replacement prices used in Maintenance Expenditure Limitdecisions.

THE BASIC APPROACH was to Identify inflation indices that are easily locatedand that reflect general price trends. These were assigned to Federal SupplyClasses and the item prices updated to an FY 84 level. Selected index-updated item prices were compared to actual item prices and, based on thedegree of correlation, the best update method selected.

THE REASONS FOR PERFORMING THE STUDY were to develop a simple to use yetaccurate means or bringing to a current level the prices of secondary,Army depot reparable items. Current prices are critical for meaningfulMaintenance Expenditure Limit decisions.

ANS Form 43R (19 Feb 85)Previous edition of this form is obsolete

*°.:- .' ....... .- ,...-....:- -. .) , .'---, --..-. '.-.., .. ' -

THE STUDY SPONSOR was the US Army Materiel Command, Directorate forSupply, Maintenance, and Transportation.

THE STUDY EFFORT was directed by Mr. George Turton, Directorate for

Supply, Maintenance, and Transportation. Currently, the effort isdirected by Mr. Dan Taber of the same directorate.

COMMENTS AND QUESTIONS may be directed to AMSAA, ATTN: AMXSY-LLSO,Mr. U. R. Poskus, AUTUVON 687-2419/5767.

GIST__ _ _

I

v, VS11S* TITLE

Price Update Methodology for Use ini AMSAA ~ Maintenance Expenditure Limits (MEL)1I

THE PRINCIPAL FINDINGS and recouindatlons of the work reported herein areas follows:

1. Each of the five index sets investigated for its applicabilityand accuracy--Major Subordinate Command (MSC), Bureau of Economic Analysis(BEA), Office of the Secretary of Defense (OSD), combined BEA/OSD, and GrossNational Product (GNP) implicit Price Deflator--was approximately equallyaccurate in predicting current unit replacement prices.

2. In developing a secondary item MEL, the Gross National Productindex should be used to update item prices that are more than one year old.The rationale is that the GNP index appears to be as accurate as any of theother index sets considered, but is clearly easier to apply and, unlikethe other index sets, does not require that items be grouped for indexassignment thus being applicable to all items.

THE MAIN ASSUMPTION on which the work reported herein rests is the expecta-tion that the GNP index will be applicable to price updates in future years.

THE PRINCIPAL LIMITATION of this work which may affect the findings is thatthe accuracy of the various indices was tested using Tropp Support andAviation Readiness Command (TSARCOM) (now separated into the Troop SupportCommand (TROSCOM) and the Aviation Command (AVSCOM)) items only. There is apossibility that the optimal index, Gross National Product, may not be thebest updating index for the other commands.

THE SCOPE OF THE STUDY was limited to Army depot maintenance activities andthe depot-MSC interaction in maintenance programs.

THE STUDY OBJECTIVE was to develop a procedure for updating depot reparablesecondary item replacement prices used in Maintenance Expenditure Limitdecisions.

THE BASIC APPROACH was to identify inflation indices that are easily locatedand that reflect general price trends. These were assigned to Federal SupplyClasses and the item prices updated to an FY 84 level. Selected index-updated item prices were compared to actual item prices and, based on thedegree of correlation, the best update method selected.

THE REASONS FOR PERFORMING THE STUDY were to develop a simple to use yetaccurate means or bringing to a current level the prices of secondary,Army depot reparable items. Current prices are critical for meaningfulMaintenance Expenditure Limit decisions.

ARSAA Form 43R (19 Feb 85)Previous edition of this for. is obsolete

.*N

7 N---... . .. . . . . . . . . . .

THE STUDY SPONSOR was the US Army Materiel Command, Directorate forSupply, Maintennce, and Transportation.

THE STUDY EFFORT was directed by Mr. George Turton, Directorate forSupply, Maintenance, and Transportation. Currently, the effort isdirected by Mr. Dan Taber of the same directorate.

COMMENTS AND QUESTIONS may be directed to AMSAA, ATTN: AMXSY-LLSO,Mr. U. R. Poskus, AUTUVON 687-2419/5767.

GIST .I0- I I TITLE * om

SPrice Update Methodology for Use inAMSAA ) Maintenance Expenditure Limits (MEL)

1 __i___

THE PRINCIPAL FINDINGS and recommendations of the work reported herein areas follows:

1. Each of the five index sets investigated for its applicabilityand accuracy--Major Subordinate Command (MSC), Bureau of Economic Analysis(BEA), Office of the Secretary of Defense (OSD), combined BEA/OSD, and GrossNational Product (GNP) implicit Price Deflator--was approximately equallyaccurate in predicting current unit replacement prices.

2. In developing a secondary item MEL, the Gross National Productindex should be used to update item prices that are more than one year old.The rationale is that the GNP index appears to be as accurate as any of theother index sets considered, but is clearly easier to apply and, unlikethe other index sets, does not require that items be grouped for indexassignment thus being applicable to all items.

THE MAIN ASSUMPTION on which the work reported herein rests is the expecta-tion that the 9NP index will be applicable to price updates in future years.

THE PRINCIPAL LIMITATION of this work which may affect the findings is thatthe accuracy of the various indices was tested using Troop Support andAviation Readiness Command (TSARCOM) (now separated into the Troop SupportCommand (TROSCOM) and the Aviation Command (AVSCOM)) items only. There is apossibility that the optimal index, Gross National Product, may not be thebest updating index for the other commands.

THE SCOPE OF THE STUDY was limited to Army depot maintenance activities andthe depot-MSC interaction in maintenance programs.

THE STUDY OBJECTIVE was to develop a procedure for updating depot reparablesecondary item replacement prices used in Maintenance Expenditure Limitdecisions.

THE BASIC APPROACH was to identify inflation indices that are easily locatedand that reflect general price trends. These were assigned to Federal SupplyClasses and the item prices updated to an FY 84 level. Selected index-updated item prices were compared to actual item prices and, based on thedegree of correlation, the best update method selected.

THE REASONS FOR PERFORMING THE STUDY were to develop a simple to use yetaccurate means or bringing to a current level the prices of secondary,Army depot reparable items. Current prices are critical for meaningfulMaintenance Expenditure Limit decisions.

AIISAA Form 43R (19 Feb 85)Previous elition of this form Is obsolete

L 77 r7%- ---------4---- --' -----

THE STUDY SPONSOR was the US Army Materiel Command, Directorate forSupply, Maintenance, and Transportation.

THE STUDY EFFORT was directed by Mr. George Turton, Directorate for

Supply, Maintenance, and Transportation. Currently, the effort isdirected by Mr. Dan Taber of the same directorate.

COMMENTS AND QUESTIONS may be directed to AMSAA, ATTN: AMXSY-LLSO,Mr. U. R. Poskus, AUTUVON 687-2419/5767.

\*

GIST.g 4# s TITLE

Price Update Methodology for Use in

! ASA'~ Maintenance Expenditure Limits (MEL)

THE PRINCIPAL FINDINGS and recommendations of the work reported herein areas follows:

1. Each of the five index sets investi gated for its applicabilityand accuracy--Major Subordinate Command (MSC). , Bureau of Economic Analysis(BEA), Office of the Secretary of Defense (OSD), combined BEA/OSD, and GrossNational Product (GNP) implicit Price Deflator--was approximately equallyaccurate in predicting current unit replacement prices.

2. In developing a secondary item MEL, the Gross National Productindex should be used to update item prices that are more than one year old.The rationale is that the GNP index appears to be as accurate as any of theother index sets considered, but is clearly easier to apply and, unlikethe other index sets, does not require that items be grouped for indexassignment thus being applicable to all items.

THE MAIN ASSUMPTION op which the work reported herein rests is the expecta-tion that the GNP index will be applicable to price updates in future years.

THE PRINCIPAL LIMITATION of this work which may affect the findings is thatthe accuracy of the various indices was tested using Troop Support andAviation Readiness Command (TSARCOM) (now separated into the Troop SupportCommand (TROSCOM) and the Aviation Command (AVSCOM)) items only. There is apossibility that the optimal index, Gross National Product, may not be thebest updating index for the other commands.

THE SCOPE OF THE STUDY was limited to Army depot maintenance activities andthe depot-MSC interaction in maintenance programs.

THE STUDY OBJECTIVE was to develop a procedure for updating depot reparablesecondary item replacement prices used in Maintenance Expenditure Limitdecisions.

THE BASIC APPROACH was to identify inflation indices that are easily locatedand that reflect general price trends. These were assigned to Federal SupplyClasses and the item prices updated to an FY 84 level. Selected index-updated item prices were compared to actual item prices and, based on thedegree of correlation, the best update method selected.

THE REASONS FOR PERFORMING THE STUDY were to develop a simple to use yetaccurate means of bringing to a current level the prices of secondary,Army depot reparable items. Current prices are critical for meaningfulMaintenance Expenditure Limit decisions.

ANSAA Form 43R (19 Feb 85)Previous edition of this form is obsolete

.........................? ::.' .::? :,::::':T';:': : ". " : : 'T:':L.''::''L.:T"?'LTL:'-:T.-:-:??-L , . . . , , .. .. . . .. .-L.:.-L:---::':.' ':."' ..

. . .... . . .... ....... . . . . . . .... .. . ..,,., . . ., .,-?-?-' .--.

THE STUDY SPONSOR was the US Army Materiel Command, Directorate forSupply, Maintenance, and Transportation.

THE STUDY EFFORT was directed by Mr. George Turton, Directorate forSupply, Maintenance, and Transportation. Currently, the effort isdirected by Mr. Dan Taber of the same directorate.

COMMENTS AND QUESTIONS may be directed to AMSAA, ATTN: AMXSY-LLSO,Mr. U. R. Poskus, AUTOVON 687-2419/5767.

66

..-.

FILMED

DTIC