BEFORE THE POSTAL RATE COMMISSION

WASHINGTON, DC. 20268-0001

MAILING ONLINE SERVICE I Dhcket No. MC98-1

SUPPLEMENTAL DIRECT TESTIMONY OF

CHONG BUM LIM ON BEHALF OF

UNITED STATES POSTAL SERVICE

TABLE OF CONTENTS

AUTOBIOGRAPHICAL SKETCH . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . III

I. PURPOSE OF TESTIMONY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

II. SUMMARY OF RESULTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

III. METHODOLOGY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

IV. MAILING ONLINE FUNCTIONAL OVERVIEW.. .......................... . ...................... .7

A. MOL-Specific Functional Areas ................................................................ .8 1. Systems Development and Implementation ................................................................. 8 2. Administrative Management and Maintenance.. .......................................................... .8 3. Print Sites. ..................................................................................................................... 9

B. MOUPOL Costs ...... *. ................................... . ............................................... 9 1. Systems Development and Implementation ................................................................. 9 2. Administratiie Management and Maintenance.. ......................................................... 10 3. Help Desk ................................................................................................................... 10

C. MOL Technical Environments.. ............................................................... .I0

V. CONCLUSION . . . . . * . . . . . . . . . . . * . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

LIST OF DIAGRAMS:

DIAGRAM 1: Methodology

LIST OF TABLES:

TABLE 1: Summary of Total Information Technology Costs

TABLE 2: One-Time and Variable Costs

TABLE 3: MOL Cost Categories

TABLE 4: MOL Systems and Location

TABLE 5: MOL Cost Matrix

USPS-ST-Q, Docket No. MC98-1, Page i

LIST OF EXHIBITS:

Exhibit A: MOL System Development and Implementation

Exhibit B: MOUPOL System Development and Implementation

Exhibit C: MOL Administrative Management and Maintenance

Exhibit D: MOUPOL Administrative Management and Maintenance

Exhibit E: MOUPOL Help Desk

Exhibit F: MOL Print Sites

Exhibit G: Derivation of One-Time and Variable Costs

SUPPORTING LIBRARY REFERENCE:

USPS MC98427 : Mailing Online Unit Cost List

USPS-ST-Q, Docket No. MC98-I, Page ii

Direct Testimony Qf

Chonq Bum Lim

AUTOBIOGRAPHICAL SKETCH

1 My name is Chong Bum Lim. I am a Consultant with the Washington

2 Consulting Practice at PricewaterhouseCoopers, LLP. I have held this position

3 since May 1998, focusing on Internet strategies and development of Web

4 solutions within the Electronic Business Solutions group, which was created

5 within the Washington Consulting Practice to provide specific expertise in

6 electronic commerce solutions utilizing Internet technologies.

7 Previously, I was an Internet Consultant with General Electric Information

8 Services (GEIS), where I defined requirements for Web-based electronic data

9 interchange (EDI) projects. Before that, I was the marketing manager with IDSI,

10 an Internet Service Provider, where I defined business costs for Internet access.

11 Additionally, I worked for Warner, Blue & Mahan, a strategic consulting firm,

12 developing a business plan that projected revenue and cost.streams for a new

13 pharmaceutical joint-venture.

14 I earned an MBA from The College of William & Mary. I completed my

15 Bachelor’s of Science Degree at The George Washington University, majoring in

16 computer engineering.

USPS-ST-Q, Docket No. MC98-1, Page iii

1 I. PURPOSE OF TESTIMONY

2

3

4

5

6

I

8

9

10

11

The purpose of this testimony is to present the total information

technology costs for Mailing Online (MOL), which is a program under PostOffice

Online (POL). POL also includes Shipping Online (SOL). The costs are based on

systems requirements for MOL during the experimental phase, Program Years

1999 and 2000 (which under the current schedule, corresponds to July 1999

through June 2001). Information technology costs consist of dedicated hardware,

software, telecommunications/networking, and related personnel and service

costs that will be incurred for MOL. In order to ensure that MOL costs are not

understated, a conservative approach was taken to provide all MOL cost related

to the experiment.

12 The respective sections of this testimony summarize the results, explain

13 the methodology used to categorize the costs, provide a functional overview of

14 the system, and provide detailed costs of MOL information technology.

USPS-ST-Q, Docket No. MC98-1, Page 1

II. SUMMARY OF RESULTS

Table 1 summarizes total costs over the two-year MOL experiment,

separated by functional area and cost category. Functional areas and cost

categories are discussed in further detail in Section IV, Mailing Online Functional

Overview.

Table 2 separates total information technology costs for the experiment

into one-time costs and variable costs, thus conforming to witness Seckar’s

analysis presented in response to interrogatory PBIUSPS-T2-2 (Tr. 5/1050-51).

One-time costs consist mainly of hardware, software, and installation and

development services, while variable costs consist mostly of personnel and labor.

Table 2: One-Time Versus Variable Costs

Help Desk

Print Sites

USPS-ST-Q, MC98-1, Page 2. revised February 4, 1999

1 II. SUMMARY OF RESULTS

2 Table 1 summarizes total costs over the two

3 separated by functional area and cost category. Fu

4 categories are discussed in further detail in Section IV,

5 Overview.

Admin Mgmt 8 Mint

6 Table 2 separates total i technology costs for the experiment

7 into one-time costs and vari le costs, thus conforming to witness Seckar’s

8 analysis presented in res nse to interrogatory PBNSPS-T2-2 (Tr. 5/1050-51)

9 One-time costs consis ainly of hardware, software, and installation and

IO development servi while variable costs consist mostly of personnel and

11

Exhibit 0. Line 30 Exhibit 0. Line 36

USPS-ST-S, Docket No. MC98-1, Page 2

1 Ill. METHODOLOGY

2 This section describes the five-step methodology for gathering and

3 estimating MOL costs. This methodology is illustrated in Diagram 1 below.

Diagram 1: Methodology

1. Complete POL system which includes both MOL &

3. 100 percent of these I I

4. Cost dl

areas are included in the arc-- -L- rla

Da* snamd with POL to Aermine cost caused by

USPS-ST-S, Docket No. MC%-1. Page 3

1 As indicated in the diagram above, the first step is to look at the complete

2 POL system (Step 1) and ask the question: “What areas are affected by the

3 existence of the MOL program (Step2)?” This resulted in the identification of two

4 major areas, the areas that are specific to MOL and those that are shared. The

5 functional components specific to MOL were identified (the functional areas are

6 further described in Section IV, Mailing Online Functional Overview) and all

7 those costs were included in the MOL system cost (Step 3). The six functional

8 components shared by MOL and POL include:

9 A. POL Help Desk personnel and related sohare; 10 B. The Redundant Array of Independent Discs (RAID) storage system for 11 the database server that stores registration and transactional records; 12 C. The RAID storage system for the database server that functions as a 13 Data Mart for management reporting purposes; 14 D. The tape backup system for the POL system; 15 E. Unix Web servers; and 16 F. Telecommunication (T3) connections from the Web server to the 17 Internet.

18 In assigning a portion of the cost of these six shared areas to MOL, ratios

19 were developed based on the most relevant cost driver. The ratios reflect the

20

21

relationsh,ip between MOL and other elements that draw upon the resources of ,

the shared areas outlined above as measured by the drivers. Costs are assumed

22

23

24

to be proportional to the driver: that is, MOL’s proportion of shared costs is

determined by MOL’s share of the driver (Step 4). These POL costs that are

caused by MOL are termed MOUPOL.

25 The driver used for the help desk (ComponentA) is based on the number

26 of calls received by the help desk. Data obtained during the market test from

USPS-ST-S, Docket No. MC98-1, Page 4

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

1 l/7/98 to 12125198 showed that of all the POL, MOL and SOL calls, 20 percent

were MOL-related. Since 20 percent of the driver (number of calls) are for MOL,

it is assumed that 20 percent of the cost for the help desk are costs for MOL.

Shared functional component B, C, and D (database storage syste~m, data

mart storage system, and the tape backup system), are driven by the same cost

driver, storage capacity, which was used by the system designers in planning the

POL, SOL and MOL systems. The designers projected that 11 IGB storage

would be necessary for the POL and SOL applications while 70GB would be

necessary for the MOL application. Therefore, the 70GB portion of the total

181GB (38 percent) storage requirement projected forms the basis for the

assumption that 38 percent of the cost for these storage systems are caused by

MOL.

For the Web servers (Component E), two of the four Web servers were

incorporated into the design strictly due to requirements of POL. Additionally,

one of the two remaining servers was needed for MOL. Thus, one of the Sun

4500 web server systems was included as an MOUPOL cost. I

The planned number of concurrent sessions is the primary driver for

assigning costs for the T3 Internet connection (Component F). Based on POL

Hardware Architecture requirements, the system was designed to handle 5,000

simultaneous MOL user sessions along with 5,000 simultaneous SOUPOL user

21 sessions for a total of 10,000 simultaneous concurrent users. Hence, it follows

USPS-ST-g, Docket No. MC98-1, Page 5

1 that a 50 percent ratio (5,000 concurrent MOL users divided by 10,000 total

2 concurrent users) can be applied to the costs for T3 lines.

3 In Step 5 we added the two sets of costs, MOL and MOUPOL costs, to

4 estimate the total Information Technology cost for the MOL experiment. These

5 costs are described in greater detail in the following section, Section IV: Mailing

6 Online Functional Overview.

USPS-ST-g, Docket No. MC98-1, Page 6

,

4

7 1. Systems Development and Implementation 8 2. Administrative Management and Maintenance (AM&M) 9 3. Help Desk

10 4. Print Sites

11

12

13

14

15

IV. MAILING ONLINE FUNCTIONAL OVERVIEW

The basic function of MOL is to provide Postal Service customers with the

ability to use the Internet to upload electronic documents for subsequent printing,

finishing, entry into the mailstream, and delivery to the appropriate recipient. The

technical components needed to provide these capabilities are categorized into

the following four functional areas:

Each functional area other than Help Desk contains components that

arise exclusively from MOL. Conversely, each functional area other than Print

Sites contains shared MOUPOL components. Table 3 below, indicates the

functional areas and cost categories that are applicable (X) or not applicable

(N/A) to the MOL system.

USPS-ST-S, Docket No. MC%-1, Page 7

1 A. MOL-Specific Functional Areas

2 1. Systems Development and Implementation

3 The Systems Development and Implementation costs pertain to the main

4 functional components listed below:

5 1 main processing server (MOL controller), 6 . application processors (Cubix Processors), 7 . storage systems, 8 . software applications, 9 . custom software development, and

10 . networking (switches and firewalls) and telecommunication 11 components.

12

13

14

The itemized list of materials for each of the hardware, software,

telecommunications/networking ,and services units used in developing and

implementing MOL is shown in Exhibit A.

15

16

17

2. Administrative Management and Maintenance

The AM&M functional area consists of ali the resource requirements to

manage and maintain the MOL System, including the Print Sites. This would

Tab11

Admlnlstrative Mgmt 8 Maintenance

N/A

NIA

NIA

X

it Categc ies

N/A

N/A

N/A X

N/A

USPS-ST-g, Docket No. MC98-1, Page 8

1 include personnel (system administrator, database manager, etc.) and hardware

2 and software tools that are necessary for management and maintenance. The

3 list of items comprising this area is shown in Exhibit C.

4 3. Print Sites

5 Contractor-operated print sites receive electronic tiles, produce physical

6 mail, and enter it at a local postal facility. Related information technology costs

7 encompass local servers and their Frame Relay Tl connections to MOL, plus

8 installation and troubleshooting services from contractors. Ten print sites are

9 projected for the end of the first year of the experiment, and 17 print sites are

to projected for the end of the second year of the experiment. These costs are

11 itemized in Exhibit F.

12 B. MOUPOLCosts

13 As discussed in Section Ill, Methodology, MOUPOL costs, while shared

14 by MOL and POL, are driven by MOL. The following describes these costs.

15 1. Systems Development and Implementation

16 Some POL systems also s,upport MOL. The registration database storage

17 system, for example, stores all users and their activities. Other such cost

18 components include:

19 . Web servers, 20 . The tape backup system for the POL system, 21 . T3 Internet connections, and 22 l Data mart storage system.

USPS-ST-g, Docket No. MC98-1. Page 9

1 Costs for these components are assigned according to drivers, such as

2 the number of concurrent sessions or other appropriate drivers (as described in

3 the preceding section) and are detailed in Exhibit B.

4 2. Administrative Management and Maintenance

5 MOL drives the POL AM&M resource requirements needed to manage

6 and maintain the MOL system. The primary component here is the service

7 contract for the Web server. Exhibit D provides the details of these costs.

8 3. Help Desk

9 All MOL and POL customers have a single, common point of contact -

IO the POL customer Help Desk. MOL users thus~ generate a portion of POL Help

11 Desk calls, and are therefore assumed to cause personnel, hardware, and

12 sottware costs. This analysis takes into account MOL-related customer help desk.

13 calls.

14 In addition, some help desk calls will require assistance from the technical

15 help desk in San Mateo, which is distinct from the general customer help desk ,

16 mentioned above.

17 Exhibit E provides the detailed costs of the help desk including the

18 technical help desk.

19 C. MOL Technical Environments

20 Three distinct system environments, Production, Staging, and

21 Development, are necessary for MOL, and have been included in the costs. As

USPS-ST-g, Docket No. MC98-1, Page 10

1 shown in Table 4, below, these environments are not co-located. Separately, a

2 fourth location, Greenbelt. Maryland, is being used for POL development. Since

3 that location is designated specifically for development of POL and its other

4 constituent services, its costs are excluded from this testimony; those costs

5 would be incurred even if MOL did not exist.

Table 4: MOL Systems and Location

San Mateo, California Raleigh, North Carolina

Production and Production Staging Production backup and backup staging

/Reston, Virginia IMOL development and testing

USPS-ST-B. Docket No. MC98-1, Page 11

5 6 7 8 9

10 11 12

13 14 15 16 17 18

19

20

V. CONCLUSION

The sections of this testimony quantify, via report and projection, the total

information technology costs of Mailing Online for the two planned years of

experimental service. Respective costs are analyzed in terms of:

Functions: the collection of all of the components of the system organized by the role or the purpose of that set of components (i.e., System Development and Implementation, Administrative Management and Maintenance, Print Sites, and Help Desk). Cost Cateaories: the type of item procured (i.e., Hardware, Software, Telecommunication and Networking, Personnel and Services). Locations: Geographically separate sites where work is conducted (i.e., San Mateo, Raleigh, Greenbelt). One-time versus variable: the designation of costs as either required for the initial fielding of the system, or as recurring during the operation of the experiment. MOL-specific versus MOUPOL: the designation of costs as related only to MOL, or related to both MOL and POL, and driven in part by the existence of the MOL system.

Table 5, below, shows a summary of the costs broken out by functions,

cost categories, and MOL or MOUPOL designation, and combining both one-

21 time and variable costs for all locations.

USPS-ST-g, Docket No. MC98-1, Page 12

Develop. & Implem. MOL Exhibn A $1,912,547 $1,215..391 $244,256 80 SS,260.991 S9.633.685 MOUPOL Exhibit B S1.046.799 S3.698 s1.45*.000 so s16cmoo s2.668.697

Adml”lMn”“e Mgmt a Maintenance

MO1 Exhibit C so $35O,WO so s1,660,ooo 53,871.233 $5.101.233

MOUPOL Exhibii D so so so so s46.335 348.335

Help Desk MOLPOL

prtnt sites MOL $01

USPS-ST-g. Docket No. MC98-1, Page 13

Exhibit A

MOL System Development & lmpll ientatic

sun .sm .sm SUll SUll SUn s&m sun sm .%n SUn SUn SLm .stm sun sun SUn

CUti% CUMX CM& c&ix CUbb

HP sm HP HP HP

USPS

_ -

Exhibit A

MOL Svstem Development & lmdementation

32 VVir?jumM 33 Postdsdl 34 AMS(Addresa Ma~mmt System) 35 coml WwdPerfed -v. 6.0 34 Micrmon WMd _ V.6.0 37 Mimmrd . v.7.0 36 MicmronMrd-V.8.0 39 Miaoaon P”blii 40 Adobs prl@m*r 4, cc4-d Ventura 4.7.0 42 ccd Ventura -v.o.o 43 ma* - v. 3.2 44 auark-V.4.0 45 Pmny G-x-i FhvacY(ffiP) 46 Inters Lam Lanosk WnJS check

Micmroll USPS USPS CWUI

5 5 2 7 10 7 5 5

13M 329.400 35ww s250,ooc 385.526 s327.64c

3339 326,478 520 31.6% $20 31.64C 520 t1.6ac $90 37.5Bc

3526 34‘l.loi 3434 336.m 3434 s36*5f

31.372 6115.W St372 3H5.W 32m tzo1.6M

SW5 34.975

$1,796 u).Q@J 12.158 $10,760 S2.156 34.312

110.076 s70.532 13.598 s35.960 $2.676 s20.132

514,396 s71.9*0 s3.236 116.160

6360 65.400

USPS -STJ), Docket No. MC961 Pape1Df2

Exhibit B 1,14&¶

MOUPOL System Developmc !n

2 v&b syslem 3 Sun Entsrptise 6600 4 CPUIMemcq sad, 2 empty CPU sbls. 2 5 336x333-MHr “llraSP.WC Mod* nim 4-M 6 I GEyle Msmwy Eqmaion (6x126 MS 7 ssua 110 sosrd Wl three em* ssus 6 8.4-Gbyie (2 x 4.2 UnIaScsI) oii Lioard 9 Quad FastEthsmet 2.0 SSus @FE 10 Elhpd.3 Povmr/ccas~ Mod*, 1, -PcmrSequenca 12 Mculdir.qSracketltf-P 13 E66OOIMaMh 14 SunEntsrpiss46W.J 15 cPunAemay Scald, 2 amply CPU alc49.2 16 33ed3334Hr “lbaSPAt7C Mod& with 1, 1 GSyle Menmy Eqwmion (6x126 MS m 16 ssusuo5xrdw,thmeem*sBuasbts. (9 Quad F~atEthwnet 2.0 S&IS (WE) 20 6.4-Gbyie (2 x 4.2 uhscsI) Disk soard 21 Entsrpriae PowdCding Module. MOW 22 Rack Mwntir~ Rails for E”te@aa 4X00

t & Implementation

StommTEK i

1 1 1

0 0 I

0

0 I

0

I

1

0 0 1

1

2

4

2

2

1

2

2

1

1

I

3

6

12

6

6

6

3

6

3

9

4

I

s30.*40 53.4220 $6.720 S7.SW S7.6W 53.700 31.995

$864 $73, 3110

s1.475 S20.160

S3.420 S6,720 S7.6W s,.*oo 51.996 53.700

SW-I $302

Exhibit C

MOL Administrative Manaaement & Maintenance

USPS -ST-O. DDdrst No. MC96-3 Pa99 I of 1

l/w99

7 sen4cn

6 MOL. system lsalnt4n8”u

9 E5600 Pmpa 4 Hc”x MTn?. 2 years

10 CP”/Memwysc.ad.P‘aJrm.*years

I, cataiyd 6609 owsii Premium Maillt~ncs ( 2 years)

12 cIsc07204 hcsi Premium Maintansncs (2 yaa)

13 sdtvan Maintenance

14 Print skes Mablmlanu

34.190 S6.366

19.770 556.620

Sl6.000 332.wo

310,000 s20,oco

SS.746.600 33.7u1.500

ExhiMt D

USPS -ST-9, ckleiet No. MCgbI Pagelof 1

lI14m9

n ’ I

Exhibit E

MOLlPOL Helo Desk

2 Mi~PuMik 3 MS Of6m 97 Pmfeasikna,. Ed. Pti. Ii 4 auark”.4.0 5 PageMake-V. 6.6 win96,NT 5 Ccd Venhm V.6.0 7 c2ci-d r&nip- suite PI-of 6.0

USPS -SW ooc!wt No. MC963 papslofl

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USPS ST-9. R&et No. MC9M P~lofr

1114199 Exhibit F

MOL Print Sites

2 “ma 5 WI 333Mhl “nmsP*RGIIi ZMB L2 cache

3 I’linch E”Wy C&x Mmikx

4 1oI1006areT FastEthernet PC, Adap(er 2.0

5 1oHOOBaseT Modular Roula vd2 WAN abta 6 Cir

6 Cisd 1700 IOS lP/FW PLUS IPSEC 66

7 1-P-M TLF,adhA Tl DS”lCS” WAN lntertacs C

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54,496 $76,415

5460 $6,160

3696 S11.615

31.292 121.9e4

51.008 517.136

$720 s12.240

52.660 s5.760

$2.160 54.320

s4.m $9,216

11.800 s3.m

54.680 SW60

3432 3664

64.320 117.260

$266 $576

Exhibit G

Derivation of One-Time & Variable Costs

USPS -ST-e. Docka NO. MCSB-1 PapelLdl

l,lu99

Exhibit4 Line30

Exhibit A. Line 48

Exhitit A Lim, 59

Exhibii A. Line 61 dwided by 2 yearn

Exhibit4 Line 62

ExhibitA. LitwB3

Eddbii A tin, 64

$1.912.547

$1.215691

3244.256

30

3600.m

35.1.120.671

175.920

s1.046.799

S3.695

Sl(I.wO

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so

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$1.456.000

ExhititC,Line3

ExhiMC,Lina6dMdedby*yems

0)

S3W.033 IO 60 s350.030

so 1940.000 5940.000 s1.68o.ow

so s1.956.196 S1.915.637 53.671.233

ExhiW E. Line 9

ExhibitE.Lim15diidodbv2vean I

$32,424 so 30 $32.424

so 3266.000 S265.WO s530.064

I . ‘_

Endnotes

A Quantity of Hardware, Software. Telewm 6, Networking. Personnel. and Sew&s for Prcdudion. Staging, Development, and Help Desk for each geographical area

s Total Quantity equals the sum of quantiies for a given line item.

C All Unk Costs used in this analysis are referenced in Library Referen MC98-lR7. Most of the “nit casts were provided by the mntractors to the Pqstal Service, primarily “sing the Manufacbred Suggested Retail Price (MSRP). 0ther “nit costs were obtained through mmm”nicaUon with the designers of ule systems. Some items have been priced “sing the nearest equivalent part available to

the Postal Service from cun’ent contracts. If the Postal Service price list did not contain the item or if the price was not easily attainable, the MSRP of the kern was used.

D Extended Cost equals Total Quantity x Unit Cost.

(a) FAST Forward Unit Cost equals (SlO.OW per year) x (2 years).

@I T3 Connection Fee Unit Cost equals (S40,WQ fee per month) x (12 moMs) x (2 years).

CC) USPS Maintenance unn cost equals ($940.000 per year) x (2 years).

(d) Original 5 year maintenance cost was multiplied by ?=5 In order to calculate cost for 2 years worth of maintenance.

(=) Help Desk Mgr Unit Cost eq”Pls (SlW.000 per year) x (2 years).

PI Technical Help Mk equals (S245,oaO pry-or) x (2 y-n).

(9) Tl Service Unit Cost equals [@5,200 setice fse per month) x (12 m@ntfn) x (10 sites in Program Year 1999) + ($5.200 servlca fee per month) x (12 months) x (17 sites In Pmgnm Year 2OW)y (17 total site+

W Exhibit S. Tetemm 5 Networking One Time Cost equals (Line 39) x (50% Ratio). Variable Costs for each of the Pmgmm Years equals (Line 4012 years) x (50% Ratio)

(i) Vedabb Costs for Program Years 1993 and 2000 derived from Compaq.

u) Edmu E. One Time Cost equals (une 15) x (20% Ratio). Vadabta Costs for Program Years 1999 and 2OOg derived from Compaq.

(k) Exhibii F. Year 1999 equals (10 sites x Sum of Lines 2 thy 8 for Unit Costs), Year 2W0 equala (7 rites x Sum of Lines 2 thy 8 for Unk Costs)

g) Exhibii F, Year 1999 equals ($5,2W se&a fee per month x 12 months x 10 sftes) + ($2.000 InstaIIation fee per site x 10 sties) + (Print Site lnstallationlS”ppol of $56.250),

Year 2W0 equals (S5.2W sewIce fee per month x 12 months x 17 sttes) + (S2,WO instattatkm fee per sit0 x 7 sties) +(print Site InstallationlSupport of $25.000).

_ - .I .I _ _ .- -~ _^ ;~ . -.