How many of you will give up your license over $50 FCC renewal fee?

Discussion in 'Ham Radio Discussions' started by KK5JY, Sep 6, 2020.

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  1. NN4RH

    NN4RH Premium Subscriber QRZ Page

    In the federal agency I worked for, the "direct labor rate" was generally around 1.6 times the actual wages paid to the employee, for employees in the average of the pay scale. Since the benefits and wages are pretty consistent across the government, I would assume a similar multiplier for the FCC.

    There were also, in addition to that, costs we referred to as "Production" and "G&A" which paid for offices and facilities, utilities, maintenance, administration, equipment, IT and computers, interns, and so on. For the FCC, I assume that might be what the 20% is for.

    So the way I would interpret the numbers, is that the total cost they are trying to recover is somewhere around 1.8 times the wages paid to the employees doing the work. Just an educated guess, of course.
    Last edited: Sep 10, 2020
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  2. W2AI

    W2AI QRZ Lifetime Member #240 Platinum Subscriber Life Member QRZ Page

  3. NN4RH

    NN4RH Premium Subscriber QRZ Page

    So if they are saying that it takes $50 to offset the cost of an amateur application ... and assuming (arbitrarily) that person processing that application is in the middle of the GS chart, i.e. a GS-8 Step 6 (about $30 per hour in Washington DC). Work the arithmetic and that implies that their so-called "nomimal" fee, under the assumptions above, is equivalent to 56 minutes of direct labor to process an automated application !
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  4. NN4RH

    NN4RH Premium Subscriber QRZ Page

    More likely it's 1 minute of direct labor to process the application, 50 minutes of direct labor to collect the fee and process payment, and a 5 minute break.

    Most likely, the $50 is selected to make sure everyone at the FCC gets a paycheck regardless of what they're doing or not doing, and cover annual bonuses for the higher-ups .
    N6ATF likes this.
  5. W4IOA

    W4IOA Ham Member QRZ Page

    Having done job estimating it's really easy to understand the true cost of labor. Everything that is involved in doing the job needs to be understood. Utilities, insurance, taxes, materials, plus other overhead costs are usually higher than labor alone. Nothing is free.
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  6. W4IOA

    W4IOA Ham Member QRZ Page

    Have a drink Jeff
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  7. K7JEM

    K7JEM Ham Member QRZ Page

    I realize this, but the NPRM is pretty specific that they are basing the application fee on "direct labor costs", not on additional costs.

    Even if the other costs were added in, it would never rise to even half of what they are proposing. Labor is the biggest cost in something like this, the rest of it will be less.

    For example, if the FCC processes 75,000 applications a year, that comes to an average of 284 applications per work day. The vast majority of those applications will be automatically filed, with some requiring an off line review, less than 10%. If the average time to clear the 28 applications is one hour per application, then that is 28 man hours per day to do that. That is basically 4 employees working full time. So, a staff of 8 people could easily handle it. If we assume total payroll costs of $100K per employee, that is $800K per year. If we assume all other costs are equal to the payroll costs, that is an additional $800K, making a total of 1.6 million dollars per year. If we divide that by the number of applications, then that now becomes $21.33 per application. If we round up, then that becomes $25 per application, and this takes in $800K of expenses that the FCC isn't even factoring in, per the NPRM.
  8. N0TZU

    N0TZU Platinum Subscriber Platinum Subscriber QRZ Page

    Isn’t every application and renewal required to be checked for “good character” now, meaning some sort of background check? That is an expense to be sure, plus someone to read it.

    Or maybe I dreamed that...?
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  9. K7JEM

    K7JEM Ham Member QRZ Page

    Your name runs through an automated checking system. If not, how could callsigns be appearing on the ULS less than two hours after being submitted?
  10. K5ABB

    K5ABB XML Subscriber QRZ Page

    Maybe they just take our word for it... I mean, my character ain't all that great, but they let ME in...

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