(c) Offsets against cost of operating the Logistics Base.

The offsets which should be applied to the cost of operating the Base include

10. There are further costs which should be offset against the cost of operating the Logistics Base.

Logistics Base operating costs

Operating costs of the Base

Furthermore, to keep operating expenditures under control UNOPS must reorganize its internal operations and restructure its cost base in 2006.

( expectation of new mission support requirement) Given the known cost of operating the Base for one year, 6.3 million, the revised cost utility ratio for it then becomes

2. Less net operating cost

Included in base hire cost.

Cost of operating warehousing facilities for 18 months

Operating and support costsb Total non programme costs Grand total (computation base)

The Logistics Base has been evaluated using cost benefit and cost utility analyses.

7. Cost benefit analysis of the Logistics Base.

15. Cost utility analysis of the Logistics Base.

(a) Cost of operation of the Logistics Base.

It is estimated that these facilities would have cost a total of 5 million, to which must be added the corresponding operating costs, which would probably have been about 6 million. (These figures are based on the Base s operating costs over that period, which averaged 5.7 million per year, from which must be deducted the 1.6 million per year sunk costs of operating the Base and operating the satellite relay facility, for a net operating cost of 4.1 million per year.)

The cost utility ratio for the Base is therefore

In response to the request for a cost benefit analysis of the operation of the Logistics Base at Brindisi, this annex provides a cost analysis of the operation of the Base using both cost benefit and cost utility techniques.

Cost of shipping material to the Base from closing missions

The cost of operating a regional or subregional centre is not fixed.

Operating cost savings through rapid phase out of ONUMOZ, UNOSOM and UNAMIR

United Nations reimbursement cost increases are calculated on the 2005 base.

Table 2.2.8 Projected cost of operating the clearing house mechanism for information on POPs

Cost of operating the satellite relay facility for three years 3 x 0.8 million

One finances the cost of a field base and the other finances the cost of peacekeeping backstopping activities at Headquarters.

21. The present budget provides for personnel and operating costs required for the maintenance of the Logistics Base.

Cost of operating the United Nations Supply Depot for three years 3 x 0.8 million

It cost 10 dollars per base pair in 1990, then a penny in 2000.

The total cost of relocation of the Base would therefore be about 18.3 million.

The White House argues the true cost of operating the helicopter is well below that rate.

This may require further relocation of certain functions to more economic cost centres, as well as the aggressive reduction of the cost base.

At the other end of the spectrum, many small, transaction intensive portfolios contribute little to the revenue base while adding disproportionately to the fixed cost base.

But these operations are cross subsidising small, under performing portfolios and a high fixed cost base.

It may therefore be concluded that the future cost utility of the Base is very satisfactory.

Indeed, the yearly cost of operating the Tribunal is less than one twentieth the yearly cost of the peacekeeping operations in the former Yugoslavia during the war.

(d) Operating cost adjustments amounting to a net increase of 17.2 million fully incorporating the impact of inflation.

The running costs of the Base are, of course, known with some precision the latest estimate of the cost of operating it for one year, as contained in this report, is 6.3 million for the period from 1 July 1998 to 30 June 1999.

UNOPS will quickly reduce its fixed cost structural base, with most changes to be completed in 2006.

In addition, the cost of the United Nations Logistics Base at Brindisi, amounting to 7,374,800, was absorbed.

The other is to consider matters related to certification, liability, administration, financing and cost recovery, and future operating structures.

Beyond this cost analysis of the existing operation of the Base, the Secretariat has considered the likely cost of moving it to a location other than Brindisi.

Any future course of action will need to address pricing accuracy and reduce the high fixed cost base.

United Nations reimbursement cost increases are calculated on the 2005 base, although these may be reduced over time.

Positive developments are the increase in cost sharing contributions and the widening of the donor base of UNDCP.

Cost of freight for the transfer of 52 flat packed units from the United Nations Logistics Base, Brindisi