Therefore, I heartily endorse the passage of this amendment to the Economic Opportunity Act of 1964 to establish an Economic Opportunity Corporation.

A DESCRIPTION OF THE COMMUNITY AND NATIONAL DEVELOPMENT OPERATIONS SERVICES CORP. (CANDO SERVICES CORP.)

Cando Services Corporation is a private enterprise dedicated to providing contract maintenance, improvement, and general personal services to the community and in particular small businesses, owners of apartment houses, condominiums, and single family dwellings.

Cando Services Corporation is founded on the conviction that a highly trained, well supervised staff of personnel utilizing the latest industrial engineering techniques, and backed by proper management direction can :

Provide high quality, low cost services to the community

Provide employment and ownership responsibilities to individuals from the disadvantaged community through the establishment of owner-operator enterprises for all its services.

The Corporation is action oriented. It performs services for customers throughout the entire city, utilizing owner-operator owned buses to transport personnel to and from the job. The owner-operators and their employees are equipped with the latest in equipment and the finest in commercial supplies.

The scope of its activity is broad. Reaching the public by the use of subsidiary companies-all bearing similar insignias-i.e., MAID POWER, CLEAN POWER, GARDEN POWER, etc; we instill a feeling of confidence by our size, while providing opportunities for expansion in unlimited areas of service to the community through owner-operator enterprises.

RESOURCES

To achieve these objectives, Cando Services Corporation utilizes the skills of trained personnel, graduates of Manpower Development and Training Schools sponsored by the Departments of Labor, Health, Education and Welfare and OEO. Techniques of industrial engineering and management direction will be provided by Management Technology Inc., a nationally recognized management consulting organization. Customer credit availability will be satisfied by an association with leading credit card companies and commercial equipment and supplies will be leased or purchased from established sources. Financing is anticipated through loans from SBA and OEO for Owner-Operators and SBA, private sources, banks and foundations for Corporate requirements.

ORGANIZATIONAL STRUCTURE

The basic source of direction and decision making for the organization will be contained in the corporate entity. Supported by a Board of Directors composed of representatives of various segments of the economy, the Corporation will provide the elements necessary to operate the smaller specialized service companies with the sophistication of a large industrial organization and through service agreements provide the Owner-Operator Enterprises with large corporation benefits. Functionally, the corporate staff will be composed of a series of working divisions, each headed by a director who will report to the President

of the Corporation. Each division will be responsible for a particular function within the over-all project and will retain a working relationship with the service oriented operating companies.

Cando Services Corporation will initially be introduced to the public with two related subsidiaries:

Initially

MAID POWER

and Subsequently

CLEAN POWER

These companies will provide contract cleaning services (MAID POWER for daily or weekly maid cleaning and CLEAN POWER for monthly, heavier cleaning) to owners and residents of apartment houses, condominiums and single family dwellings.

Subsequent subsidiaries will be formed as graduates of the Manpower Development and Training Schools are available.

Operating units within the subsidiary companies will be accomplished under the Owner-Operator concept. Commencement of this facet of the business will take place as rapidly as financing is provided through SBA and OEO loans.

OWNER-OPERATOR WORKING UNIT PHILOSOPHY OF OPERATION

The planned growth of the subsidiary companies of the Cando Services Corporation will be based on the monthly addition of working units.

Owner-Operator working units will consist of the labor, transportation and materials required to perform the service offered by the company.

The number of Owner-Operator working units to be added each month will depend on the availability of labor and the need for the service within the community.

Future plans will be based on one or more working units assigned to an OwnerOperator.

OPERATING DATA

Maid Power-Yearly anticipated profit per owner-operator working unit 1ST YEAR'S OPERATION

Gross income:

Income from owner-operator purchase_-_.

Service agreement (22 percent of owner-operator gross income)1_

$10, 466

10, 171

Billing (3 percent of 25 percent of owner-operator gross profit)

Sears Merch. billing, financing---

Advertising (2 percent of owner-operator gross profit).

Legal

Auditing

Miscellaneous

Subtotal

1,900

1,000

230

3, 130

1.110

375

600

1,650

3.375

150

83

233

4, 083

722

33

67

67

58

280

347

1,156

925

33

33

167

7,971

1 Based on 16.512 hours of effort (8 hours per day, 5 days per week, for 8 employees at 3.50 per hour), $46,234 total.

Gross income:

2D YEAR'S OPERATION

Service agreement (10 percent of owner-operator gross income)7_ Income from owner-operator operating costs (insurance, gas, oil, maintenance, supplies)--

Billing (3 percent of 25 percent of owner-operator gross profit) _
Sears Merch. billing, financing-

Advertising (1 percent of owner-operator gross profit).

Obtaining a capitalization required to meet operating needs and establishing financing for corporate and Owner-Operator loans with SBA, OEO and participating banks.

Achieving a Gross Income of $575,120 for the year.

Reaching a year end Gross Income rate of $744,000 for the year and a projected rate of $1,555,000 for the second year; and a projected yearly Profit rate before taxes of $283,200 for the second year on the MAID POWER operation only.