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NCJ Number: 65467 Add to Shopping cart Find in a Library
Title: LIFE CYCLE COSTING GUIDE - A GUIDE FOR APPLYING THE CONCEPTS OF LIFE CYCLE COSTING TO PROCUREMENTS BY STATE AND LOCAL GOVERNMENTS - FIRST EDITION
Author(s): ANON
Corporate Author: Logistics Management Institute
United States of America
Date Published: Unknown
Page Count: 209
Sponsoring Agency: Logistics Management Institute
Washington, DC 20016
National Institute of Justice/
Rockville, MD 20849
US Dept of Commerce
Washington, DC 20234
Sale Source: National Institute of Justice/
NCJRS paper reproduction
Box 6000, Dept F
Rockville, MD 20849
United States of America

US Dept of Commerce
Procurement Program Area
Chief Experimental Technology Incentives Program
Room A-735
Washington, DC 20234
United States of America
Language: English
Country: United States of America
Annotation: LIFE CYCLE COSTING (LCC), ITS RATIONALE AND CORRECT USAGE, IS EXPLAINED IN THIS GUIDE FOR STATE AND LOCAL GOVERNMENT OFFICIALS RESPONSIBLE FOR PURCHASING.
Abstract: THE LCC OF AN ITEM IS THE TOTAL COST INCURRED IN THE RESEARCH, DEVELOPMENT, PRODUCTION, OPERATION, AND DISPOSAL OF AN ITEM. THE TOTAL COST OF OWNERSHIP IS THAT PORTION OF THE LCC WHICH IS INCURRED BY A USING AGENCY OR ORGANIZATION. HOWEVER, RESEARCH AND DEVELOPMENT COSTS ARE USUALLY IN THE SELLING PRICE OF AN ITEM SO THAT THE USER, IN EFFECT, INCURS SOME PORTION OF THOSE COSTS. USE OF LCC SHOULD HELP OBTAIN THE BEST PERFORMANCE FOR THE LOWEST TOTAL COST OF OWNERSHIP. THIS IMPLIES THAT COST/BENEFIT TRADE-OFFS MAY RESULT IN AN OPTIMUM RATHER THAN A MINIMUM LIFE CYCLE COST. A REVIEW OF A NUMBER OF COMPANIES FOUND THAT ALL OF THE COMPANIES USED LCC AND APPLIED IT TO THE EQUIPMENT ACQUISITION ANALYSIS PROCESS, THE RELATED LEASE VS. BUY DECISIONS, BID EVALUATION WHEN CONSIDERING POTENTIAL 4UPPLIERS, AND PRICING THE COST OF WARRANTIES ON A COMPANY'S OWN PRODUCT. ANSWERS TO FREQUENT QUESTIONS ON LCC ARE PROVIDED, EXPLANATIONS OF LCC FOR EQUIPMENT PROCUREMENTS ARE GIVEN, AND USE OF WARANTIES IN LCC IS DISCUSSED. ALSO CONSIDERED ARE COST MODELING FOR LCC, STRUCTURING LCC PROCUREMENTS, AND LCC IN SYSTEMS ACQUISITION. SELECTED STUDIES IN EQUIPMENT PROCUREMENT AND EXAMPLES OF APPROPRIATE CONTRACT CLAUSES ARE APPENDED. (PRG)
Index Term(s): Cost analysis; Economic planning; Efficiency; Energy conservation; Government contracting; Governmental planning; Long range planning; Reference materials
To cite this abstract, use the following link:
http://www.ncjrs.gov/App/publications/abstract.aspx?ID=65467

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