Bureau: TTB 

Investment Name: TTB Scientific Equipment Refresh 

Type of Investment: Non-Major Non-IT Investment 

Description: 

Scientific equipment refresh at TTB's laboratories 

Investment Anticipated Outlay: (In Millions of $): 

Type PY-1 and Prior PY

2013

CY 

2014

BY 

2015

BY+1 

2016

BY+2 

2017

BY+3 

2018 BY+4 and Beyond Total 

DME Sub Total (Including Gov FTE) Costs 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 

O&M Sub Total (Including Gov FTE) Costs 0.00 0.60 0.60 0.60 0.60 0.60 0.60 3.00 6.60 

Total Cost (Including Gov FTE) 0.00 0.60 0.60 0.60 0.60 0.60 0.60 3.00 6.60 

Total Gov FTE Cost 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 

Number of FTE represented by costs 0.00 0.00 0.00 0.00 0.00 

Summary of Purpose, Goals, and Benefits: 

TTB requires accurate and reproducible data and results from the laboratories to support 

regulatory compliance, tax classification and enforcement, rulemaking, and investigations. This 

requires well-functioning and well-maintained equipment. The instruments in the laboratories 

require periodic replacement, as they have finite lifecycles due to use. Technologies eventually 

become obsolete and the instruments are not serviceable as vendors stop carrying parts and 

software. Periodic replacement of the existing technologies is essential for TTB laboratories to 

remain state-of-the-art and effective. The TTB laboratory maintains a refresh model that tracks 

the lifecycle of each piece of scientific equipment. 

Return on Investment: 

Scientific instruments undergo wear and tear from prolonged use. In addition, with the rapid 

changes of technology, laboratory equipment becomes obsolete in a short period of time. 

Vendors develop new generations of instruments, typically stop supporting outdated equipment 

software, do not supply parts for old equipment, and phase out maintenance services for old 

equipment. Consequently, most laboratory instruments have finite life cycles. As the instruments 

reach the end of their life cycles, they must be replaced to maintain the requirements of 

accuracy and integrity of data listed previously. 

The consequences of not replacing old and outdated instruments are: 

ï¿1⁄2 Loss of capabilities to effectively support program needs 

ï¿1⁄2 Increased risk of support disruption from equipment breakdown or malfunction 

ï¿1⁄2 Data produced by the old instruments may not be accurate and dependable 

ï¿1⁄2 Inaccurate technical conclusions from unreliable data. TTB enforcement actions based on 

unrealizable data may not withstand the scientific or legal scrutiny or challenges from the 

industry 

ï¿1⁄2 Loss of ISO 17025 accreditation of TTB laboratories. 

Requirements/ Benefits/ Mandates: 

Legislative Mandate: TTB is responsible for the administration and enforcement of those 
sections of the Internal Revenue Code of 1986 (IRC) associated with the collection of excise 

taxes on alcohol, tobacco, firearms, and ammunition, and the Federal Alcohol Administration 

(FAA) Act, which provides for the regulation of the alcohol beverage industry and the protection 

of U.S. consumers. The laboratories link directly to those strategic goals and legislative 

mandates. The TTB mission is carried out according to two principal strategic goals that, briefly 

stated, are: collect the revenue and protect the public. 

The areas in which SSD chemists analyze alcohol and tobacco products in support of those 

legislative mandates include: 

ï¿1⁄2 Regulatory compliance 

ï¿1⁄2 Enforcement 

ï¿1⁄2 Trade and regulatory investigations 

ï¿1⁄2 Audits 

ï¿1⁄2 Product safety 

ï¿1⁄2 Trade barrier issue 

ï¿1⁄2 Technical criteria for rulemaking 

ï¿1⁄2 Tax Classification. 

Audit Finding or Material Weakness: N/A 

Agency Strategic Plan / Annual Performance Plan: N/A 

Presidential Priority: N/A 

Other Requirement: In order to provide the accurate data required for our customers and for 

SSD's ISO 17025 accreditation, the instruments must: 

ï¿1⁄2Be fully operational, and be able to be calibrated 

ï¿1⁄2Perform to generate accurate and dependable data 

ï¿1⁄2Pass Quality Assurance/ Quality Control (QA/QC) before data can be collected and reported 

ï¿1⁄2Be stable and yield consistent results for a long period of time 

ï¿1⁄2Instruments under ISO scope must be able to be calibrated and certified by ISO accredited 

vendors 

Above all, it is extremely important that the data generated are accurate and withstand the 

scientific and legal scrutiny so that policy decisions and regulatory enforcement actions can be 

adequately defended. To deliver effective technical support to TTB program offices and 

industry, the laboratories require, at a minimum, a set of key instruments that are essential for 

any modern regulatory analytical laboratory. TTB chemists routinely utilize the sophisticated 

instruments for the analysis of regul. 

Accomplishments: 

The financial statements, which include a ï¿1⁄2Balance Sheetï¿1⁄2 for the bureau disclosed 

assets for the period ending 2013. Included in those reported assets were Laboratory 

equipment with an acquisition value of $6.4 million. SSD has developed a Yearly Equipment 

Refresh Program. The life-cycles for various instruments were developed based on instrument 

performance in the TTB laboratories, information received from other federal regulatory 

laboratories, and information from vendors on their support/service plans & new product 

development cycles. 

Planned Objectives and Accomplishments: 

The investment's objective for the CY, BY and budget out years is to ensure that the 

instruments in the laboratories are replaced periodically, as they have finite lifecycles due to 

use, and as new technologies are introduced in order to ensure that the equipment used at the 

laboratories provide accurate and reliable information for use with industry members and other 

stakeholders regarding regulatory, tax and safety matters. Without funds in TTB's base budget 

to refresh laboratory instruments and acquiring new technologies, it will be difficult both to 
replace old instruments that have reached or are approaching the end of life-cycles or acquire 

new technologies. This situation will negatively impact SSD's ability to effectively support TTB 

program office needs and their missions. 

Development, modernization, and enhancement timeframe: 

BY+1: Laboratory scientific equipment refresh. 

BY+2: Laboratory scientific equipment refresh. 

BY+3: Laboratory scientific equipment refresh. 

BY+4: Laboratory scientific equipment refresh. 

Useful Life: 

Year the investment began: 2015 

End Year of the current planning cycle: 2019 

Description of why the investment is not consistent with life cycle model defined in OMB 

Circular A-131.: The life-cycles for various instruments do vary (i.e. chromatographs, mass 

spectrometers, densitometers, smoke machine, etc.), and those lifecycles were developed 

based on instrument performance in the TTB laboratories, information received from other 

federal regulatory laboratories, and information from vendors on their support/service plans & 

new product development cycles. 

Performance Evaluation and Metrics: 

Metric 

Description 

FEA 

Category 

Measurement 

Condition 

Reporting 

Frequency 

Unit Of 

Measure 

CY 

Target 

Latest Actual 

Result 

Date of Latest Actual 

Result