the life-cycle costs of construction, plant operation, procurement,
handling, and the firing of fuel. The capability and/or space to retrofit
alternate fuel accessories should be provided with the initial design and
construction where the chance exists of losing the source of primary fuel.
should be designed to maximize operating reliability and ease of
maintenance. Space must be provided around equipment and components for
easy access. Controls should be provided in multiple unit installations to
prevent maintenance activity taking place on one unit from interfering with
operating units. Spare diesel-engine generator sets are required for
electric generating plants in accordance with the applicable duty type
criteria. Packaged electric-generating units may be considered for
stand-alone installations but they must comply with applicable criteria.
2.8 Economic Studies. All new or modified plant construction proposals
shall consider suitable alternative methods to determine the most beneficial
or cost-effective method of accomplishment. All economic analyses shall
follow the policy as outlined in SECNAVINST 7000.14, Economic Analysis and
Program Evaluation of Navy Resource Management. Life-cycle cost analyses
are required for economic analyses. For information and guidance in
performing life-cycle cost analysis refer to NAVFAC P-442, Economic Analysis
Economic Study Requirements.
An economic study is required for:
evaluating Government versus commercial ownership,
b) evaluating third party funding of electric generating facilities,
c) investigating other electric-generating technology, such as gas
turbine-generators versus diesel-electric generation,
evaluation of cogeneration applicability, and
e) evaluating various design alternatives once a specific technology
has been selected. Such evaluations may include the selection of a cooling
system type or determining the number of generator sets to install within a
single electric generating plant.
2.8.2 Level of Analysis Required. Evaluation of Government versus
commercial ownership shall be conducted using life-cycle cost analysis Class
1, "Fundamental Planning Analysis" Type II, as defined in P-442. Also see
DEPPM 85-3 for guidance and life-cycle economic analysis requirements in
evaluating third party funding. All other economic studies shall use the
life-cycle cost analysis Class 2, "Design Analysis" methodology, as defined
2.8.3 Life-Cycle Bidding. Life-cycle cost analysis shall be strongly
considered for evaluation of bid quotations for prime duty diesel-electric
generating plants. For details and guidance in preparing specification
language, contact NAVFACENGCOM, Southern Division, Code 403.