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[[underlined]] Postal History Museum [[/underlined]]

The United States Postal Service has advertised for proposals to develop the Washington City Post Office Building, including the possible development of a national postal museum (though the prospectus makes no mention of the Smithsonian Institution).  The Postal Service will receive proposals until November and, after a period of negotiation with prospective developers, will decide to select a developer or act as its own developer of the facility.  At that stage, probably early next spring, a full proposal would be made to the Postal Service Board of Governors.  It is expected that the Smithsonian will learn more about the viability of the museum project as proposals are received and evaluated.

During the past several months, the National Museum of American History, working with the Office of Design and Construction, has revised the plans and operating needs of the facility.  Capital costs for the optimum facility have been reduced from $14.7 million to $13 million and estimated annual operating costs from $2.3 million to $1.85 million.  The shortfall between annual operating costs and funds available from the Postal Service and the Smithsonian has been lowered from $1,476,000 to $851,000 (estimate for fiscal year 1989).  (The Postal Service is aware of the Smithsonian's stipulation that the Institution's share of operating costs in a new facility not exceed those needed at the National Museum of American History.)  While Postal Service and Smithsonian staff will continue to explore ways to meet the shortfall, much depends on the enthusiasm of private developers and the financial situation of the Postal Service later this year as the recommendations for the Board of Governors are being prepared.