21 Code For Federal Regulation Parts 1305, 1311 Page 26
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67Hours
Activities
Total Cost
Total
506,661
$36,826,000
Table 4: Total Hours and Costs for the Electronic Order Software
Hours
Labor
O&M
Total
Purchaser
Install – chains
8,680
$666,000
$666,000
Install software – other
314,408
$13,010,000
$13,010,000
Install – practitioner
43,940
$1,818,000
$1,818,000
Supplier
Install software
280
$11,600
$11,600
Software Developer
Development
103,600
$9,700,000
$9,700,000
Maintenance
89,000
$3,683,000
$3,683,000
Upgrades
17,800
$1,367,000
$1,367,000
Audit
2,314
$96,000
$593,000
$689,000
Total
580,022
$30,352,000
$593,000
$30,945,000
To estimate costs over the first ten years, DEA assumed that implementation would be phased in
over the first five years (i.e., it would be five years before all registrants were using the electronic
order system). Based on discussions with industry, the phase-in was estimated to occur at 20
percent in the first year, 40 percent in the second, 20 percent in the third, and 10 percent each in
the fourth and fifth years. DEA made the conservative estimate that orders would phase in at the
same rate as digital certificates. Because a few distributors and large chain drug stores supply
and order a large proportion of the drugs, it is likely that orders will phase in more quickly than
digital certificates will. A faster phase-in will increase the net benefits; a slower rate would
lower the benefits.
DEA also assumed that the number of orders would increase seven percent annually. The
seven percent increase is based on the average annual increase in orders over the last seven
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