COMMITMENT TO FIXED TERM RENTALS OF IBM EQUIPMENT

Document Type: 
Collection: 
Document Number (FOIA) /ESDN (CREST): 
CIA-RDP80-01794R000100200034-2
Release Decision: 
RIPPUB
Original Classification: 
K
Document Page Count: 
4
Document Creation Date: 
December 12, 2016
Document Release Date: 
December 26, 2001
Sequence Number: 
34
Case Number: 
Publication Date: 
August 27, 1973
Content Type: 
MFR
File: 
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PDF icon CIA-RDP80-01794R000100200034-2.pdf129.04 KB
Body: 
AUG a27 SUBJECT: Commitment to Fixed Term Rentals of IBM Equipment 1. This fiscal year IBM has increased the monetary incentive to place some of their rental equipment on a twenty four (24) months rental plan. The previous Fixed Term plans offered an 8% decrease in rental for 12-23 months and a 16% decrease in rental for a 24 month commitment. Both of these plans carried an unlimited use clause (no charge for. use over 176 hours per month). 2. For the Fiscal Year 1974 GSA contract, IBM has offered to credit all rental for the month of July 1974 for those machines placed on the 24 month plan. This must be done before 1 September 1973. Four of the machines presently installed (3333-1-Disk Storage and Control Units) are only available on the 24 month plan. 3. IBM has also made recent announcements of new equipment that impact the decisions to be made regarding such long term rental. a. The first announcement concerns new magnetic tape drive units which quadruple the recording density on tape with the same tape speed therefore quadruple the data transfer between the tape unit and the Central Processing Unit. b. The company has also announced a Disk Storage Unit that doubles the density of a Disk Pack and therefore its disk drive from 100 million bytes to 200 million bytes. 4. Because of our large STAR data base both of these features are very attractive to the DO Computer Center. The importance here is that the equipment on hand can be modified to take advantage of these new capabilities and are still eligible to be placed on the 24 month plan with advantages of the savings in rental. 5. At present, all the machines in question, for which 0v0*0 dr F d W92A1Il5G OWFADFW-04944k0 OA200On4-2 n~i'-~---`}~I Declassified b _].C date CGS!T #itt il~+ 6= -...... ...._.. ..,-..- ..w-? :.r...-~. .r-anwu/MRa1 'opt-- ~i..7~s?~. _, .. o Approved For Re ftWi~ 20 ' tt' A-Rff 4'1'44RO Vf " 902006?34-2 therefore no overtime is now being paid. The savings in overtime are not a factor in this decision. 6. We propose to take advantage of the savings offered on most of the equipment that is available for the 24 months rental plan as summarized in Attachment A. This will result in a savings of $79,874 for Fiscal Year 1974 and depending .upon those machines upgraded an approximate savings of $55,000 in Fiscal Year 1975. Attachment B lists equipment now installed that will or will not be placed under the above plan. 25X1A Acting Deputy for Information Systems, ISG Attachments (2) cc: D/OJCS/DD/M&S C/IS/O ISG/BF Approved For Release 2002/01/15 CIA-RDP80-01794R000100200034-2 nor v.4 IN .!. i i E - INTr{1?M A L i w. ... 1~ti lu~L Approved For Release 2002/01/15 : CIA-RDP80-01794R000100200034-2 FT FT July 73 FY74 FY75 12 Months x2 24 Months Credit for 24 Months Plan Total Savings Savings Printers & Controllers $155,424. $141,936. $5,914. $12,658. $6,744. Tape Controllers 80,988. 73,932. 2,730. 5,850. 3,936. Tapes 214,176. 198,000. 7,952. 17,120. 9,564. Disk Storage 658,704. 608,640. 16,214. 37,718. 28,560. Disk Storage & Control 87,696 74,640. (1) 6,528. 6,528. $32,810. $79,874. $55,332. 79,874. Total Savings FY74 & FY75 $135,206. (1) Not eligible for July 73 credit as installed after 1 July 1973. Approved For Release 2002/01/15 : CIA-RDP80-01794R000100200034-2 Approved For Rel 4-1403 N1 2-2821-1 2-2821-2 14-3420-7 12-3330 4-3333 lac ik t 0 200014=2 Equipment To Be Placed On 24 Month Fixed Term Plan Rental Equipment Not To Be Placed On 24 Month Fixed Term Rental Plan 2-3420-7 Now being discontinued. 4-3330-1 Will be replaced as model l's are converted to model 11's. Approved For Release 2002/01/15 CIA-RDP80-01794R000100200034-2 E N w AMKTWAI~ a i .s 13 AL. 1. 1, k:. ~!1 _' a