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Appendix A: Two Earlier Reports
Pages 95-105

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From page 95...
... Appendixes
From page 97...
... The study showed that although technological advances have brought about new ways of corrosion mitigation and better corrosion management techniques, the United States has a long way to go in optimizing corrosion control practices, and it must move toward better corrosion management using preventive strategies in both nontechnical and technical areas.  For a copy of the report see http://www.corrosioncost.com/pdf/main.pdf.
From page 98...
... The corrosion control methods included protective coatings, ­corrosion resistant alloys, corrosion inhibitors, polymers, anodic and cathodic protection, and corrosion control and monitoring equipment. Corrosion control services included engineering research and development and education and training.
From page 99...
... The industrial sector of drinking water and sewer systems was the single largest contributor, with an annual corrosion cost of $36 billion, followed by electrical utilities and gas distribution, which had annual cor rosion costs of $6.9 billion and $5 billion dollars, respectively. No estimate of corrosion cost was made for the telecommunications sector because there was little information on this rapidly changing industry.
From page 100...
... The indirect corrosion costs, i.e., the costs incurred by those other than the owners and operators, were conservatively estimated to be the same as the direct costs, resulting in a direct plus indirect cost of $512 billion, which was approximately 6.2 percent of the U.S.
From page 101...
... Preventive strategies in technical areas include advances in design practices for better corrosion management; in life prediction and performance assessment methods; and in corrosion technology generally through research, development, and implementation. It will be necessary to engage more of the primary stakeholder -- government and industry, the general public, and consumers -- in this effort and to harness the awareness and expertise that is currently scattered throughout government and industry organizations.
From page 102...
... In the absence of accurate corrosion cost data, it is impossible to quantify the potential benefits from serious corrosion management. Nonetheless, the consensus within the task force and among many DOD and industry experts holds that as much as 30 percent of the corrosion costs can be avoided by preventing rather than repair ing.
From page 103...
... Recommendation 1: Promulgate and enforce policy emphasizing life-cycle costs over acquisition costs in procurement and provide the incentives and training to assure that corrosion costs are fully considered in design, manufacturing, and maintenance. The total near-term investment cost on the order of $1 million is estimated for implementing this recommendation, primarily to assemble a stand ing team of corrosion experts to advise decision makers.
From page 104...
... have historically proved insufficient. • No specific corrosion remediation budget exists in service operation and support (O&S)
From page 105...
... The task force estimated the cost for implementing the above five recom mendations at approximately $50 million in the first year, assumed to be FY2005. Once the foundations are laid in the first year, additional investment in preventive design in future years is estimated to be $100 million to $150 million per year but is expected to quickly (within 1 or 2 years)


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