Fonar Corp (FONR)

[Telephonics]

Award of this contract is a major success for Fonar but it will not result in any sales for about 2 years. The warning of this fact is in the Fonar news releasse wher it says,"Any Federal entity such as the U.S. Army or VA,once it is budgeted---"
To buy off this new contract a hospital will have to inserty a l9ine item for it in their next budget request and await approval and funding authority. In adedition any necessary construction costs associated with this purchase will also have to go through a similar process. I doubt that any hospital at this time has such an approved budget line item. Basically this contract saves both sides time and money. For Fonar they save by not having to write a proposal and on the govenment side they do not have to evaluate any other purchases for this MRI system. BUT THE BUYER MUST HSVE A LINE ITEM IN BUDGET AND FUNDING

P.S. I have made a formal request to the Defense Supply Agency in Philadelphia for a copy of this contract
# SPO 200-06D-8303.Expect answer tomorrow.