As technology changes, a decision is made regarding the disposition of products at the end of the life cycle. This decision is made based on economic and operational considerations.
When an asset is replaced by a more cost-effective asset, it may be determined that it still has operational value and continues to provide a benefit for service use. In this case, the asset may be relocated to other sites or be used as a backup; the original support plan will also have to be considered.
If the decision is made to relocate or continue operation of the asset, the plan will be revised to reflect any variances in support strategies. Repositioning or the purchase of spare parts must be considered, as well as additional training to support operation and maintenance of the relocated product.
Disposal is the final phase of the life cycle and can pose significant economic and social risk to the Postal Service. Assets, especially physical assets, can still offer value from resale, selling back to the supplier, or even donation to social organizations or international postal partners.
The risk arises from several sources, among which are:
The life cycle management team will meet to develop a disposal plan that will be added to the overarching life cycle plan. There are a number of ways for the Postal Service to dispose of assets, which are summarized in Section
2-12, Develop Preliminary Investment Recovery Plan. When the purchase⁄SCM team determines when the supplier will manage the investment recovery, solicitations must include Provision 2-8: Investment Recovery, under which the supplier must provide, within its response to the RFP, an investment recovery plan to reuse the equipment or to eliminate or reduce final disposal costs. Final disposition must be environmentally responsible; eliminate or reduce landfill; and comply with all Federal, state, and local laws and regulations. Proposals must address the complete life cycle, including the final disposition of the items being purchased. Disposition alternatives include take-back, repair, refurbishment, and disposal. The supplier is required to design and describe additional innovative, value-added, end-of-life disposition opportunities for the items being purchased.
The Postal Service environmental policy, as stated in Handbook AS-550, Recycling Guide, and Handbook AS-552, Pollution Prevention Guide, must be incorporated into the life cycle support plan and any other procedures governing material redistribution, recycling, and disposal.
