oversight

Standards and Technology: Update of Information About Fee Increases for Measurement Services

Published by the Government Accountability Office on 1990-01-12.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

.-
.t
=




     c
          United States
A0        General Accounting Office



G
          Washington, D.C. 20648

          Resources, Community, and
          Economic Development Division

          B-236260
         January 12,199O

         The Honorable Robert A. Roe    ”
         Chairman, Committee on Science,                           j
           Space,and Technology
         Houseof Representatives
         The Honorable Robert S. Walker
         Ranking Minority Member, Committee on
           Science,Space,and Technology
         House of Representatives
         On August 4, 1989, youireouested
                                      A.-_*..” that we update the analysis in our
         June 1989 report, Standards and Technology: Impact of Fee Increaseson
         i&~,m~~IJW$         %$-vi&es(GAO/RCED-89-136), to provide information on the
         impact of proposed-,priceincreaseson s-alesof standard     ._.),_..reference
                                                                           , ..,,     mate-
         rials- and   calibration
                 _.”I. ._‘.._      services by the National  Institute   of  Standards and
         Technology (NIsT)~in’tj;le.jdepartmentof Commerce.As agreed with your
         offices, we are providing (1) fiscal year 1989 sales and revenue data for
         NIST measurement services,(2) information about NIST'S efforts to moni-
         tor the effects of price increasesfor measurement serviceson small and
         medium-sized firms, and (3) NIST'S process-for evaluating
                                                                 ., . proposals for
         new measurement’services.

         In summary, NIST'S data showed that between fiscal years 1987 and
          1989 (1) the number of standard reference materials sold increased by
         about 11 percent, while the real averageprice’ remained constant, and
         (2) the number of calibration tests performed decreasedby 2 percent,
         while the real average price increased by 9 percent. We could not deter-
         mine how much impact price alone had on the demand for measurement
         services.However, NIST sales and revenue data do not suggesta substan-
         tial effect on demand. Moreover, the Directors of the Office of Standard
         ReferenceMaterials and the Office of Physical MeasurementServices
         said that factors other than price generally have affected the demand
         for measurement services more than price has. NIST has begun to track
         salesto samples of customers, including small and medium-sized busi-
         nesses.Both offices consider criteria such as public health and safety
         effects, possible substitutes, and financial feasibility in evaluating pro-
         posals to develop new measurementservices funded by the surcharge
         revenue.
     Y




         I We analyzed NIST’s average price for measurement services in real dollars to account for inflation.



         Page 1                                             GAO/RCED-SO-MBR Standards and Technology
   /
  +
      ‘ckground         Standard reference materials and calibration services assist businesses
                        and research laboratories in precisely measuring the chemical and phys-
  \                     ical properties of materials. Standard reference materials are certified
                        for certain chemical properties, such as the composition of steel, or
                        physical properties, such as the thickness or weight of coatings. They
                        can be used for calibrating an instrument, assessinga measurement
                        method, or assigning values to materials. Calibration servicesgenerally
                        include checking, adjusting, or characterizing particular instruments,
  //                    devices,or sets of standards on a one-time-per-requestbasis.

                        In fiscal year 1988, NIST began a 5-year program of annually raising
                        standard reference material and calibration service prices to increase its
                        development surcharge fee to 40 percent of the production cost for each
                        service. (Seetable 1.1 in section 1.) NIST usesthis surcharge to supple-
                        ment funds available for developing new measurementservices.For
                        standard reference materials, becausea development surcharge was
                        instituted in fiscal year 1983, NIST is increasing the surcharge by 5 per-
                        cent of production costs annually. For calibration services,becausea
                        development surcharge had not been previously instituted, NIST is
                        increasing the surcharge by 8 percent annually.

                        In March 1989 NIST increasedthe development surcharge for standard
                        reference materials from 20 percent to 25 percent of the production
                        cost, which on averagerepresented only about 39 percent of NET'S total
                        price. As a result, the surcharge for standard reference materials, which
                        sold for an averageprice of $161 in fiscal year 1989, increasedby $4 to
                        $16. In February 1989 NIST increasedthe development surcharge for cal-
                        ibration services from 8 percent to 16 percent of the production cost,
                        which on averagerepresented about 79 percent of NIST'S total price. As a
                        result, the surcharge for a calibration test, which sold for an average
                        price of $510 in fiscal year 1989, increasedby $32 to $64.

                        NIST data  and measurement servicesofficials indicated that the develop-
Measurement Services    ment surcharge fee increaseshave not substantially affected the
Data for Fiscal Years   demand for standard reference materials or calibration services.
1988and1989             Between fiscal years 1987 and 1989, the number of standard reference
                        materials sold increased 11 percent, from 40,848 to 45,286, while the
                        real average price remained constant. The number of standard reference
             u          materials sold increased by 9 percent in fiscal year 1988 and by 2 per-
                        cent in fiscal year 1989, while the real averageprice remained constant
                        each fiscal year despite the higher development surcharge. (Table 1.2
                        shows service levels and income for standard reference materials,


                        Page 2                              GAO/RCED-90-63BR Standards and Technology
         )i
       vI j
   - t
                            B-236200




   -
                            1978-89,Figure 1.1 shows changesin real averageprice per unit sold
                            and units sold for the sameperiod.)
                           Between fiscal years 1987 and 1989, calibration tests performed
                           decreased2 percent, from 13,069to 12,809,while the real average price
                           increased by 9 percent. In fiscal year 1988, the number of tests per-
                           formed increased by 3 percent and the real averageprice increased by 6
                           percent, indicating that factors other than price also affected the
                           demand for calibrations. In fiscal year 1989, the real averageprice
                           increased by 4 percent, while the number of tests performed decreased
                           by 6 percent. (Table 1.3 shows service levels and income for calibration
                           services, 1978-89.Figure 1.2 shows changesin real averageprice per
                           test and tests performed, 1984-89.)
                           The Chief of Physical MeasurementServicesat NIST attributed the
                           decline in tests performed in fiscal year 1989 to a decreasein spending
                           in the defense and aerospaceindustries. Defensecontractors are
                           required by Military Standard 46662A to have their instruments cali-
                           brated by, or directly traceable to, NET. Staff at the Physical Measure-
                           ment ServicesOffice estimated that between 50 and 60 percent of NET'S
                           calibration businesscomesfrom firms in or related to the defense
                           industry.

                           Both the Office of Standard ReferenceMaterials and the Office of Physi-
  N&T’s Efforts to         cal MeasurementServicesare monitoring the effects of measurement
  Monitor the Effect of    service prices on small and medium-sizedbusinesses.Starting with fiscal
: the Price Increases on   year 1987 data, NIST has tracked standard reference material salesto a
                           sample of 99 users, including large businesses;small businesses;federal
  Demand                   agencies;state and local governments; and institutions, including hospi-
                           tals and universities (seetable 2.1). However, while overall standard
                           reference materials salesincreased from 44,484 units sold in fiscal year
                           1988 to 46,286 in fiscal year 1989, salesto the 99 selectedorganizations        .
                           declined from 7,313 to 6,410.
                           Similarly, beginning with fiscal year 1987 data, NIST has monitored sales
                           of calibration services by tagging each invoice as being for a Fortune
                           500 company or other large business,an intermediate or small business,
                           the Department of Defense,another federal agency, state and local gov-
              Y            ernment, or an institution (seetable 2.2). These data indicated that
                           while calibration tests declined for Fortune 600 businesses,federal
                           agencies,and state and local governments in fiscal year 1989, tests
                           increased for all other businessesand institutions.


                           Page 3                              GAO/RCED-904iSBR Standards and Technology
  /
  I                    E-286260




                       Both the Standard ReferenceMaterials and Physical MeasurementSer-
                       vices staff regularly have attended trade shows and conventions relat-
                       ing to measurementservicesto interact with customers and respond to
                       any concernsabout costs and the need for new services.


                       NIST usesthe development surcharge revenue to develop new measure-
NI$T’s Process for     ment services.In fiscal year 1989, the Standard ReferenceMaterials
Debermining Which      staff evaluated between ‘200and 300 proposals from users for new
Mdasurement Services   standard reference materials on the basis of such criteria as national
                       concern,outside support, potential monetary return, and resource avail-
to Pevelop             ability. In fiscal year 1989, NIST certified about 60 new standard refer-
                       encematerials, including about 40 that were developed with
                       development surcharge revenue. Similarly, the Office of Physical Mea-
                       surement Servicesstaff proposed 44 new servicesin fiscal year 1989.
                       Each proposal was first evaluated by staff from 12 major calibration
                       areas and then ranked on the basis of documented requests or require-
                       ments studies, major driving forces, industries affected, number of cus-
                       tomers anticipated, urgency, lack of viable alternatives, and available
                       resources.NIST plans to upgrade or develop about 16 calibration services
                       using development surcharge revenue collected in fiscal year 1989.


                            officials provided us with information and statistics on the prices,
Scopeand               NET
                       service levels, and program income for standard reference materials and
M$thodology            calibration services for fiscal years 1979 through 1989. We updated our
                       previous information on the relationship between price changesand
                       changesin service levels. To compare prices over time, we adjusted the
                       averageprice for inflation by (1) adjusting yearly income to its 1982
                       equivalent by dividing it by the producer price index for intermediate
                       materials, supplies, and componentsand (2) dividing the adjusted
                       income by units of standard reference materials sold or the number of
                       calibration tests performed, as appropriate.
                       Becausedata were not readily available to measurethe impact of vari-
                       ous factors that affect demand, we could not determine how much
                       impact, if any, price changesalone had on the demand for NET standard
                       reference materials and calibration servicesbetween fiscal years 1979
                       and 1989. We also did not survey NET'S customers to obtain their views
         Y             on the impact of these pricing policies.




                       Page 4                              GAO/RCED-90-63BR Standards and Technology
I
         B-236260
I




        We conducted our review in Septemberand October 1989, We discussed
        the report’s contents with responsible agency officials and incorporated
        their views where appropriate.


        As agreed with your offices, we are sending copies of this briefing
        report to the Secretary of Commerceand other interested parties. Copies
        also will be made available to others upon request. Major contributors to
        this briefing report are listed in appendix I. If I can be of further assis-
        tance, please contact me at (202) 275-5525.




        John M. Ols, Jr.
        Director, Housing and Community
          Development Issues




    Y




        Page 6                               GAO/RCED-90433BR Standards and Technology
Cjontents


Letter                                                                                                1   :

SeFtion 1                                                                                             8
NjST Measurement
S ‘k-vices:Service
Iq vels and Income
Sfjction 2                                                                                       11
M asurement Services
S9les by Customer
 I
Appendix               Appendix I: Major Contributors to This Briefing Report                    16

Tkbles                 Table 1,l: Current and Projected RevenueFrom Proposed                      8
                           Development Fee Increases
                       Table 1,2: Service Levels and Income for Standard                          9
                           ReferenceMaterials
                       Table 1.3: Service Levels and Income for Calibration                      10
                           Services1
                       Table 2,l: Units Sold to SelectedStandard Reference                       11
                           Materials Customers
                       Table 2.2: Tests Performed by Calibration Customer                        14
                           Category

Figures                Figure 1.1: Changesin Real Average Price Per Unit and                      9
                           Units Sold for Standard ReferenceMaterials
                       Figure 1.2: Changesin Real Average Price Per Test and                     10
                           Tests Performed for Calibration Services




                       Abbreviations

                       GAO       General Accounting Office
                       NST       National Institute of Standards and Technology


                       Page 6                             GAO/RCED-90-63BR Standards and Technology
b’




     Page 7   GAO/RCED-fW63BR Standards and Technology




                                                  :
Section 1

WT MeasurementServices:ServiceLevels
a$d Income

Tab14 1.1: Current and Projected
Revshue From Proposed Development   Standard Reference                                                Fiscal Years
Fee I creases                                                                                                              1991
     1                              Materials                                   1988          1989           1990                    -___-.1992
    I                               Production cost (million $)                 $2.3           $2.6          $2.7          $2.7
                                                                                                                      _--------..           $2.7
                                    Development surcharge
                                    (f,fsrt$!;tage of productron
                                                  ___-                         15120         20125         25130           30135         35140
                                    Development surcharge funds
                                    (thousand $) -I__                           $463---       $600          $780            $910        $1,050

                                    Calibrations                                               $5,3 ---55.3-.--...$5.B~              ~. .~~~ --~
                                    Production cost fmillion W                  $5.5                                                        $5.3
                                    Development surcharge
                                    (percentage of production
                                    costs)b           ___      --                018 --       8116         16124.--        24132
                                                                                                                             .._~-       32140
                                    Development surcharge funds
                                    (thousand $)                                $250          5570        51,180          $1,590        $2,010
                                    aNlST provided actual production cost data for fiscal years 1988 and 1989 and projected data for fiscal
                                    years 1990, 1991, and 1992.

                                    bThe fiscal year 1988 development surcharge took effect in December 1987. The fiscal year 1989 devel
                                    opment surcharge took effect in March 1989 for standard reference materials and February 1989 for
                                    calibration services. Beginning in fiscal year 1990, NIST plans to implement fee increases at the begrn-
                                    ning of the calendar year.
                                    Source: Prepared by GAO from NIST data




                                    Page 8                                                GAO/RCED-90-63BR Standards and Technology
                                                        section 1
                                                        NIST Measurement Services: Service Levels
                                                        and Income




labI+ 1.2: Service Levels and Income for
Stanpard Reference Materials                                                                                                     Total income
     I                                                 Fiscal year                                                  Units sold       (millions)
                                                       1978                                                            37,387              $2.5
                                                       1979                  -                                         38,139               2.6
                                                        1980                                                           40.847               3.0
                                                        1981                                                           40,304               3.5
                                                       1982        __--~.-----   -.                                    39,523               3.8
                                                       1983               -                                            33,199               4.0
                                                       1984                                                            36.674               4.4
                                                       1985                                                            40,518               5.2
                                                       1986       -.---                                                40,149               5.2
                                                       1987
                                                       -.---___                                                        40,848               5.6
                                                       1988                                                            44.484               6.4
                                                       1989                                                            45,286               6.8




Fig&e 1.1: Changes in Real Average Price Per Unit and Units Sold for Standard Reference Materials
 30     PoKant clung@ from Pmvlous Fhcal Yur




10



 0



-10




                                                                                                             P           d          I
      Fiscal Yorr


        El          Real Average Price Per Unit Sold
                    Number ff Units Sold



                                                       Source: Prepared by GAO from NIST data.



                                                       Page 9                                       GAO/RCED-99-03BR Standards and Technology
                                           Se&Ion 1
                                           NIST Measurement      Services:   Service Levels
                                           and Income




     I

Tab14 1.3: Service Level8 and Income for
Calit+ation Service8                       Dollars in millions
                                                                                                          Tests            items               Total
     I                                     Fiscal year                                               performed        calibrated            income
                                           1978                                                               a             6,191                $1.8
                                                                                                                                                  -.-
    /                                      1979                                                               a             6,924                 2.1
    I                                      1980                                                               a             6,887 -               2.3
    1
                                           1981
                                           __----_.-____-                                                     a             7,506                 2.5
    !                                      1982                       --__                                    a             6,828-----            3.1
                                           1983                              -                           12,209             8,087 -------         3.6
                                           1984                        ---                               12,672             6,880                 3.8
                                           1985                  _-                                      12,737             5,779                 4.1
                                           1986                                                          12,767             5,023           --    4.7
                                           1987                                                          13,059             5,611                 5.5
                                           1988                        -____                             13,425             5,902                 6.3
                                           1989                                                          12,809             5,327                 6.j
                                           aNlST did not maintain records on the number of tests performed prior to fiscal year 1983.



Figuie 1.2: Change8 in Real Average
Prick Per Test and Tests Performed for
Calitiration Services                      25   Perowl Change From Preview Year


                                           20




                                                El       Real Average Price Per Test Performed
                                                         Number of Tests Performed


                                           Source: Prepared by GAO from NIST data.




                                           Page 10                                               GAO/RCED-90-03BR Standards and Technology
 /I   ;



6x&m 2

N(easurementServicesSalesby
($istomer
  j       Category

Table 2.1: Units Sold to Selected
Star dard Reference MaterIsIs
                                    _-
                                    Dollars in thousands
      1
Cus omers
                                    Customer
                                                                   Fiscal Year 1987
                                                                   Units      Dollars
                                                                                              Fiscal Year 1988
                                                                                              Units      Dollars
                                                                                                                   Fiscal Year 1989
                                                                                                                   Units      Dollars
      I                             -        _----

                                    3M
                                    -----.---..--------               184           $17         257          $14     207               $29
                                    Abbott                            228            30         252           33     153                36
                                    Anheuser-Busch                      1           0.1           3            3       4               0.5
                                    Armco                             767            64         764           73     596                58
                                    AT&T                           -.A-63            13          54           16      55                19
                                    Carpenter                         129            12          72            7      38               3.9
                                    Chevron                           165            19         149           16     167                21
                                    Chrysler                           35            11          56           30       9               3#7
                                    Ciba-Geigy                       420             63         228           36     276                45
                                    Eastman Kodak                    616            100         361           68     332                48
                                    EG&G                               99            15          76           13     158                19
                                    E.I. DuPont                      269             41         484           67     256                44
                                    Exxon
                                    ---_.~-~..----.---~.--.-             117         15         116           15    117                 16
                                    Fisher Scientific                    294         26         279           28    298                 30
                                    Ford Motor                            75         20          21           10     47                 12
                                    General Electric                     209         32         147           27    175                 32
                                    IBM                                  123         38         227           44    187                 33
                                    LTV                                  283         29         509           52    359                 34
                                    Martin Marietta                      351         51         330           48    281                 47
                                    Monsanto                             167         23         212           36     94                 12
                                    Rockwell International               179         26         187           23    114                 18
                                    Teledvne                             205         22         276           29    204                 23
                                    Union Carbide                         92         14         123           46     48                 15
                                    UTC    (Pratt & Whitney)
                                    --..---~-                             86             10     161           23    177                 29
                                    Westinghouse
                                    ----___.---                          133             14     202           23    249                 42
                                      Subtotal                    5,290        $705.1         5,546        $780    4,681          $070.1
                                      Average                     211.6         $28.2         221.8       $31.2    187.2            $26.8

                                    Small Business
                                    Allentown
                                    .-.___ -___----Cement          -. 11            $1           10         $0.9      7              $0.6
                                    American     Dade
                                    ---~.-..--____--          .-.-     69          7.8          283           27     62               7.7
                                    Anastrom                            5          0.6            0            0      0                 0
                                    Baird
                                    ----       - -     _.----         114         13.4           92         13,l    229                32
                                    Cetus ._______.------___--I         1          0.1            1          0.2      4               2.2
                                    Genentech
                                    -..______--____-.                   4          0.7            1          0.4      5               1.1

                                    r$und     Water Tech                 30         1.9           0            0       0                    0
                                                                                                                              (continued)




                                    Page 11                                               GAO/RCED-9043BR Standards and Technology




                                                                  ’L j          , .‘/’                               %,‘, .
                                                                                 ,1
                                                                   ,                                                  .,
-I-   Se&on 2
      Measurement Services Sales by
      Customer Category




                                      Fiscal Year 1987               Fiscal Year 1988      Fiscal Year 1989
      Customer
      Hach                            Units
                                          11     Dollars
                                                    $1.1             Units9     Dollars    Units
                                                                                   $o,8 ---a--~-~o~   Dollars
      Jim Smith Coal                        30              2.7         16                     , ,6 -----2-.-          ...--.o.2

      Kevex
      Lynchburg Foundry                     618             1.4
                                                            8.4         280                    0           3
                                                                                            4,3..---.3~.-----                     0.4
                                                                                                                                  5.9
                                      -                                              -__--               ~.   -._
      Magna-Gage
      -~_                       ___----103             16.8            85
                                                                     -__                  18.4 -.-~ 58 .-.-.
                                                                                       _.-..---.                             -. 13
                                                                                                                                 -
      Microscan
      -                                   1             0.3
                                                  -__--._----.-.--      0              _ ~- 0 ---         0                      0
      Missouri Portland
      Cement                            78 -.--_-       6.6            25                   2.5 -. 60 -~.~.                        6.1
      Nova Biomedical     --.--         37              2,7 ---36-.-...--
                                                    ..-__~----..-..--__..-.-.~         ---3.4~-. ~.~_. jl .-.                      5.8
      Passive Vision -___..--.--         1              0.9             0                     0          0                         .-0
      Public Service Testing
      Lab                                3              0.4             2                      0.2            1                 0.4
      Spectra                           47              5.6            62                      8.9          96                 13.1
      Therm0 Jarrell ____-
                      Ash              150
                                      -__              16.1           41
                                                                  -.-..----                    5.7          41                  5.1
      X-rav Suoolv                      10              1.8             3                      0.6           2                  0.5
      - S;bto;bl ’                    774           $90.3           894                       $88          887        -.-    $94.9
        Average                           38.7             $4.5       34.7                $4.4            33.4                   $4.7

      Federal Government                         -_-                         -_--.---------          . .--- ~.       --.    -~      .-
      David Taylor Naval
      Ship R 81D Center            --____-8           $1.8
                                                    -------~.            6                $0.5                 0                   $0
      Dept. of Agriculture              65 -_-.---__-9.4                97 ._...----      12.1
                                                                                           . ---..           81
                                                                                                            ~.                   10%
      Dept. of Justice        _____-___---8                1            58                 4.2               11                   i.9
      Dept. of
      Transportation                      4
                                      -~.-I___.____     0.4              .-8 _____. --~-~
                                                                                       0.7
                                                                                         -.....           .~ 51 ~~~~.                6
      Knolls
      -       Atomic  Power             71         ----10.5             24             3.4                    5                    0.8
                                                                                                                                    .~
      National Aeronautics &
      Space
      -_______Administration            31              4.8             80                20.1               11                    4.4
      National Institutes of
      Health                              8             1.1             17                    3.6            15                    3.5
      National Oceanic and
      Atmospheric Admin.                  7             4.7             11                       5               7                 3.6
      Environmental
      Protection
      ---.-       Agency     ---.-~     43                 7           60                23.3               96               22.5
      U.S. Geoloaical Survev            54              7.2           128                 13.6              83                10.3
         Subtotal                      299          $47.9             489               $88.5              380              $83.8
        Average                           29.9             $4.8       48.9                $8.8               38                  $8.4

      State and Local
      Government
      ~-
      Alabama                               11 -----so.9                 2                $0.2               17              $1.7
      California                            15              3.3         59                12.8               26               9.1
                                                                                                                     (continued)




      Page 12                                                     GAO/RCED-90-03BR Standards and Technology
Section 2
Measurement Servicea Salea by
Customer Category




                         Fiscal Year 1997        Fiscal Year 1988     Fircal Year 1989
Customer                 Unit8      Dollars      Units      Dollars   Units      Dollars
Connecticut                 10          2.2          17         3.2        9            1.9
Florida                      8            1         24          5.8      84            12.4
Illinois                    13          2.6         23          4.6      20             3.5
New Mexico                  13          4.3           7         2.4       11            2.7
New York                   54           8.4         38          6.8      38            14.1
North Carolina              11          1.3          10         1.6       12            1.1
Oklahoma                    14          1.3           3         0.4      33             6.5
Wisconsin                    8          1.3           2         0.8        0              0
Countv of Los Anaeles        8          3.4           9         1.2        2              1
County of Westchester        2          0.3           1         0.2        0              0
County of San Diego          2          0.5           6         4.1        6              2
Dallas Countv                1          0.1           1         0.1        1            0.1
Montgomery County            0            0           0           0        0              0
Austin                       6         0.6            8         1.3        4            0.7
Jacksonville               10          4.1          10         2.7         3            0.4
Los Anaeles                 17         2.6          43         4.7       11             1.6
New York City              25           4.2         31          5.4      32             3.5
Philadelphia                18          2.7           5        0.5         7            0.7
  Subtotal                246        $45.1         299       $58.8      316            $63
  Average                 12.3         $2.2       14.9         $2.9    15.8           99.2

Institutiona
American Red Cross          11         $2.1          0           $0       0              $0
College of American
Pathology                       4       0.8          0            0       4             0.6
Getty Conservation
Institute                       5       0.6          0            0       0                  0
Guggenheim
Foundation                   5          0.5          0            0       0               0
Mavo Foundation             21          4.1         21          4.3      26             6.1
Arthur D. Little                        2.1         45          3.2      27             2.2
Battelle                   141         17.9         76         14.7     119            17.9
Gulf South Research
Institute                   13          0.9         15            1       5             0.4
Midwest Research
Institute                       5       2.2         40          5.8      35             5.1
Western Research
Institute                    9            1          1          0.2      26             3x6
Hartford Hospital           28            3          9          1.7      12             1.9
Maine Medical Center         4          0.6          0            0       0               0
New England
Deaconess Hospital              3                    8          1.1
                                                                               (continued)




Page 13                                       GAO/RCED-90433BR Standards and Technology
                                            Section 2
                                            Measurement Services Sales by
                                            Customer Category




                                                                            Fiscal Year 1987            Fiscal Year 1988            Fiscal Year 1989
                                            Customer                        Units      Dollars          Units      Dollars          Units      Dollars
                                            Rush Presbyterian
                                            Hospital                             1            $0.2           2            $0.3             2                 $0.3
                                            Baylor University                    7             0.6           0               0             4                --.0.6
                                            Brigham Young
                                            Unrversity                          10                1          0                0         1
                                                                                                                                     _____-----       0.3
                                            Cornell University                   4              0.7          9              2.1        19       ---.- 3.1
                                            Harvard Universitv                   9              1.5          1              0.2         3             0.8
                                            Kent State University                1              0.1          0                0         0               0
                                            Louisiana State
                                            University                          15              1.4          3              0.4            3                  0.5
                                            Massachusetts
                                            Institute of Technology              8              1 .3        15              1.9        21                     7.8
                                            Michigan State
                                            University                          22              2.6         11              1.9        21                     2.9
                                            Purdue University                   13              1.2         12              1.4        33                     6.3
                                            Johns Hopkins
                                            University                          3               0.5        17               4.8   ---__23                    3.6
                                              Subtotal                        372           $47.2         285              $45        388                  $84.2
                                              Average                        15.5               $2       11.9             $1.9       16.1                   $2.7
                                            Grand total                     8.981          8935.6       7.313       $1.0588         6.410                 $955.8
                                            Overall average                  70.5             $9.5       73.9            $10.7       84.8                   $9.7
                                            Source: Office of Standard Reference Materials, NET.

Table 2.2: Terts Performed by Callbratlon
Cqtomer Category                                                                                                         Fiscal Years
                                                                                                                 1987            1988              .--.    1989’-
                                            All                                                                 13,060            13,425                  13,068
                                            Fortune 500 businesses                                               4.439             3.702       -           3.198
                                                                                                                                                            L-
                                            All other businesses                                                 6,278             i:909                   7,213
                                            Department of Defense                                                11503            2;ooo-.___---
                                                                                                                                          -____---- 1,527
                                            Other federal agencies                                                 208              364
                                                                                                                                   _____--                   234
                                            State and local governments                                            145              103._I_.---              102
                                            lnstitutionsb                                                          232              182                      254
                                            aYear-end projection as of September 1, 1989.

                                            blncludes hospitals, universities, and other nonprofit organizations
                                            Source: Office of Physical Measurement Services, NIST.




                                            Page 14                                                  GAO/RCED-W63BR Standards and Technology
Page 16   GAO/RCEDW433BR Standards and Technology
A&endix I

l$Qor Contributors to This Briefhg Report                                                            b


                        Lowell Mininger, Assistant Director
Resources,              Richard Cheston, Evaluator-in-Charge
Community, and          Angela Sanders,Evaluator
Edonomic
D+velopment Division,
Wphington D.C.




                        Page 16                          GAO/RCED-90-63BR Standards and Technology
             1
             I

         T   !




I   ._