AOAC BOD June 2018 Pre-Meeting Materials

II. 2018 Business Plan Progress Q2 F. Sustainability: New Product/Revenue Streams

Financial Expectation : Using the AOAC Research Institute model: set application fees at $1000 for OAs and $2000 for non-OAs; and annual renewal fees at $500 for OAs and $750 for non-OAs. Estimate 10 - 20 application fees per year and 80% renewal fees. Estimate smaller per unit cost and therefore same 10% net income as PTM model. 1 st year income ≈ $22K. 2 nd year income ≈ $25K. 3 rd year income ≈ $30K. Steps: • Gauge interest • Program and Policies o Pricing and business plan o Flowcharts/SOPs • Legal o Draft license agreement

o Develop a certification mark o Mark/service registration • Marketing and communication plan

8. Create Standard Instrument Performance Requirements (SIPR) Program

Rationale : AOAC’s Standard Methods Performance Requirements (SMPRs) program has been very successful. This proposal applies the SMPR concept to instruments and equipment.

There are several scenarios envisioned where SIPRs could be useful and desirable:

1) When consensus performance requirements for class of instruments is desired. 2) Develop SIPRs in conjunction with SMPRs when a specific analytical technique is identified in an SMPR. 3) SIPRs could be used to document minimum specifications when an AOAC OMA method identifies an instrument and then gives the “or equivalent” term. This program would provide technology providers with additional recognition and provide clarity to AOAC method users. Financial Expectation : Using the AOAC Research Institute model: set application fees at $5K for OAs and $7.5K for non-OAs; and annual renewal fees at $2K for OAs and $5K for non-OAs. Estimate 10 - 20 application fees per year and 80% renewal fees. Estimate smaller per unit cost and therefore same 10% net income as PTM model. 1 st year income ≈ $50K. 2 nd year income ≈ $66K. 3 rd year income ≈ $82K. Steps: • Gauge interest • Program and Policies o Pricing and business plan o Flowcharts/SOPs • Legal

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