- 25 -
area of the Carson facility was 562 days. The median age of the
sample of clean room garments from the Bandini Boulevard facility
was 422.5 days.
Respondent’s expert report is unreliable and not useful
because the conclusions reflect an average physical age, rather
than the average service life (i.e., useful life). The
statistical sample used the manufacture date of the items, rather
than the placed-in-service date. The general comments to
respondent’s expert report state:
Some items * * * had two labels with different
dates. One was assumed to be the date at which the
item was manufactured, and the other the date at which
the item was placed in service for the current
contract. It was sometimes difficult to tell which was
which. This analysis always uses the oldest of the
dates * * *.
Here, the oldest date on the label reflected the manufacture date
rather than the placed-in-service date. The sample also included
items that were not yet placed in service and items that were
withdrawn from service. In any event, even if the sample that
was taken were valid and the conclusions could be relied on, the
expert’s conclusions as to the median physical age of the
garments and dust control items do not support the useful lives
determined by respondent that would require petitioner to
depreciate the items over either 3 years or 5 years. Rather, the
conclusions would be supportive of and more consistent with
petitioner’s approximations.
Page: Previous 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 NextLast modified: May 25, 2011