324 ‘Sample Model 002 - Feasibility Study (Vinuya, 2002, p.91 - 101) FEASIBILITY REPORT Renting a Camera or Sub — Contracting the 10~ Minute Documentary to a Private Outfit Prepared for the Director, Philippine Information ‘Agency and Undersecretary, Ministry of Information, Office of the Press Secretary By Remedios V. Vinuya Chief, National Broadcast Division March 19, 1991 158TABLE OF CONTENTS Cost: Sub ~ contracting the Job to a Private Outfit. Time Frame .. Renting a Video Camera .. Sub — contracting the Job to a LIST OF ILLUSTRATIONS Tables Table No. 1 Rental Cost ...... Table No. 2 Sub contracting, TableNo.3 Time Frame : Renting TableNo.4 Time Frame : Sub — contracting B88 S88 B88 159ABSTRACT ‘The purpose of this report is to provide the PTA Management vital information that will enable them to determine whether itis more feasible to RENT a video camera to finish production of a 10 ~ minute documentary for Agency X or SUB - CONTRACT the half - finished job to a private outii. ‘The PIA agreed to produce a 10~minute documentary for Agency X (also a government office). The documentary will beaired during the week-long celebration ofits 25th anniversary. InaMemorandum of Agreement (MOA) which Agency X and PIA signed, the former shoulders all expenses and PIA takes charge of production and arranges for the airing of the document in all five TV stations. ‘Time frame is two and a half months (10 weeks) after signing of the MOA. On the sixth week, PLA's video camera gets busted; production stops. Four options are considered: borrow a camera, buy-a new one, RENT a camera or SUB - CONTRACT the job to a private outfit. Options 1 and 2 will entail long and circuitous and bureaucratic processes. Options 3 and 4 are therefore considered. Criteria to be used are COST and TIME FRAME”, Feasibility studies show that producing the documentary witha rented camera will cost Php 40,600.00; sub ~ contracting it would cost Php 55,000.00 or Php 14,400.00 more than the former. Php 40,600.00 seems cheaper but hidden costs on PIA (electrical consumption, personnel man-hours of production crew, depreciation of production equipment, transportation requirements), plus the possibility of revisions where a video camera is again needed, will add up to over Php 55,000.00. ‘The private outfit being considered has a long track record of delivering quality productions ppunctually; besides, the pay schedule reasonable and an accepted norm in business transactions ancl government institutions. 160: The 55,000.00 package deal with the P— OUTFIT therefore is the more feasible option. MODEL : FEASIBILITY REPORT INTRODUCTION Purpose ‘The purpose of this report is to determine whether the Philippine Information Agency (PIA) should: 1. RENT a video camera to enable it to produce the 10 — minute documentary for Agency X, or 2. Subcontract the project to a private outfit. Purpose In a Memorandum of Agreement (MOA), the PIA agreed to produce a 10 ~ minute documentary for Agency X. the documentary will be aired during the week — long celebration of its (Agency X's) founding anniversary. Accortling to the MOA, the services of the PIA will be given, free of charge, including arrangement for airing with the Kapisanan ng mga Brodkasters ng Pilipinas (KBP) and the five existing TV stations. Agency X, on the other hand, will shoulder other expenses. Conceptualization, script, and the story boards have been completed, talents have been contracted, location setting is over, production crew have been assigned, too; location shooting schedules have been set. A day before the shooting, PIA'S camera gets busted. Production came to a halt. Four options were available Borrow a video camera from a sister agency. Buy a new camera to replace the 20 ~ year old gadget. Rent a video camera for at least five working days, and have the old one repaired in the meantime. Sub —contract the unfinished job to a private outfit. 161Scope ‘The National Broadcast Division of PIA (the division in ~ charge of production) narrowed down its choice to option 3 and 4: RENT or SUB - CONTRACT. Careful study showed that for purposes of the project, to borrow a camera will place the PLA at the mercy of the lender, whose ‘work schedules are heavy; and to buy a new camera will entail a long, long process of bureaucratic practices / SOPS. Time is running short; and PIA has to honor its commitment. The feasibility of the two remaining options (3 and 4) will be judged according to these criteria: !) COST and , 2) TIME FRAME. OPTION NO. 3: RENTING A VIDEO CAMERA TABLE 1: COSTS TEM AMOUNT INVOLVED ‘Camera Rental Php 5,000 / day for 5 days Php 25,000.00 Per diem of SONY TECHNICIAN Php 100 /day for 5 days 500.00) ‘Taxi Fare : to pick up camera and. technician andreturn the same Php 200 / day for 5 days 1,000.00 Materials 1 Umatic tape Php 900 (master copy) 5 Beta tapes Php 1,200 (for replication) 2,100.00, Talent Fees ‘Narrator (to voice script) Php 2,000 Director (cients choice), Pap 5 9,000.00 ‘Scriptwriter 1p 2,000 Per diems of crew (5) and the Director @ Php 100/ day for 5 days 3,000.00. TOTAL Php 40,600.00 162Table 1 does not show the compensation of PIA production crew since they receive their salaries as regular employees of the PIA. These are the cameraman, the lightman, production assistant / make — up artist, driver, project officer, edior, artist illustrator (graphics), technician / sound man / audio — technician / replicator. Characters needed by the script are on the client, (Agency X). Other hidden costs: electrical consumption, equipment depreciation, transportation requirement, personnel (man - hours) are not reflected either. All these will be borne by the PIA as hidden cost. OPTION NO. 4:SUB- CONTRACTING TO A PRIVATE OUTFIT ‘TABLE 2: COST 1TEM AMOUNT. Finished 10 minute TV documentary on: ‘Lumatic tape (master copy) Php 55,000.00 Seta tapes (replicator copies) + First Installment Php 25,000.00 = upon signing of contract and delivery of script story board * Second Installment (full payment) Php 30,000.00 ~ COD of finished product and acceptance by Agency X TOTAL Php 55,000.00 163DAY / WEEK { i iz is OPTION NO. 5 ‘TABLE NO. 4: TIME FRAME ACTIVITY / TASKS ‘Negotiations with the private outfit representative Contract signing betiveen PIA and P — Outfit, delivery of script and Story boars to P—Outtit Production of the documentary by P— Outfit Screening / Viewing of finished documentary by PLA; Revisions done by P—Outit if necessary; re ~ screening, and presentation to Agency X for approval Replication of master copy on 5 umatic and beta tapes; Delivery of finished documentary to PIA; payment in full fo P- Outfit. Securing KBP directive to ali5 existing TV stations specifying the time, frequency and duration of airing; Syndication of tapes / documentary to the TV stations by the National Broadcast Division, PLA: assigning, personnel to monitor actual exposure of the documentary for the usual year ~ end accounting under the government exchange - deal program, 164Data Analysis and Conclusions cosT Tables 1 and 2 show that renting a camera is cheaper than sub — contracting the job to a private outtit by Php 14,600.00 against Php 55,000.00, respectively. Not reflected in Table 1 are the unseen costs which the PIA will shoulder ifit decides to rent a camera electrical consumption, depreciation costs on tools of production, ie. editing and replicating machines and the vehicles to be used in location shooting, salaries of production crew, driver and administrators / supervisors, gasoline requirements during shooting days and the Syndication to TV stations which are in various locations. Al hese cost wil be absorbed by the private outfit should we decide to sub ~ contract production except for the syndication costs. ‘TIME FRAME Tables 3 and 4 show that the time frame is manageable, with a difference of only two days added for Option No. 4. This can very well be offset by the lead time reflected in Table 3, “The data all point to the conclusion that sub ~ contracting the production to P~ OUTFIT is more feasible Recommendations 1. The private outfit has a track record for promptness and punctuality in delivering quality productions. It’s Director / Proprietor, once with the government TV network, fully understands the intricacies and constraints and the responsibilities of public accountability and government accounting and auditing as well. Her asking price is commensurate to the expected assistance and product quality we are asking her company to give us, Based on facts just mentioned, we recommend SUB — CONTRACTING THE JOB, 2. While renting a camera may seem cheaper, there is a lot of hidden costs PIA has to face up to. In the meantime that the prodiiction crew of the TW Section will be free from their hectic schedules, they can pick up the tasks they have left for a While, assist the engineering section in the repair of defective TV sets, or help the Administrative Monitoring personnel in updating their KBP — related duties, or the Radio Section in preparing their daily news feeds and press releases, In the meantime, our 20 - year old camera must now undergo much ~ needed repairs; and Management may ask the Budget for a NEW CAMERA. 1651