21 Code For Federal Regulation Parts 1305, 1311 (Page 27 of 67) in pdf

21 Code For Federal Regulation Parts 1305, 1311 Page 27

years. The total cost of both systems was estimated using a seven percent and a three percent

discount rate. Table 5 presents the ten-year total cost of orders under the Form 222 system, the

electronic system, and the combined systems as the electronic system is phased in over the first

five years as well as the annualized cost of the three systems over ten years. Table 6 presents the

costs of digital certificates and software needed to create digitally signed orders.

Table 5: Total Cost of Orders Over Ten Years (Present Value)

Paper System

Electronic System

Combined Phase-In

Total (7%)

$2,699,913,000

$298,086,000

$704,112,000

$384,407,000

$42,441,000

$100,250,000

Annualized (7%)

Total (3%)

$3,223,440,000

$363,653,000

$781,438,000

Annualized (3%)

$377,886,000

$42,631,000

$91,608,000

Table 6: Total Costs of Digital Certificates and Software Over 10 Years

(Present Value)

New Costs

Total (7%)

$149,308,000

Annualized (7%)

$21,258,000

Total (3%)

$172,093,000

Annualized (3%)

$20,275,000

In addition to the cost savings, electronic orders will also provide a number of other

benefits that cannot be quantified. Purchasers will be able to create and send single unified

controlled substance orders to their suppliers. With Forms 222, purchasers must create the

separate Form 222 for the Schedule I and II controlled substances and complete other orders for

all other controlled substance purchases from a particular supplier. If a purchaser needs more

than 10 Schedule I or II substances, multiple Forms 222 must be completed because the form is

21 Code For Federal Regulation Parts 1305, 1311 Page 27