Application of a formalized life cycle costing technique, if
a p p l i e d i n t h e f u l l e s t s e n s e , r e q u i r e s that life cycle cost data on each
a l t e r n a t e subsystem and component be developed and used in the analysis.
Thus, i t m u s t i n c l u d e t h e i n i t i a l c o n s t r u c t i o n c o s t ; a n d t h e o p e r a t i n g ,
m a i n t e n a n c e , and custodial costs associated with each alternate over the
functional life of the facility.
The utilization of a formalized life
cycle costing technique wilI require additional effort in the design
p h a s e beyone that based on conventional design procedures. The techni-
q u e will be used to evaluate the life cycle cost advantages of alternates
w h i c h have the greatest potential to improve quality and/or functional
efficiency at equal life cycle costs; to lessen the life cycle cost at
no loss in quality and/or functional efficiency; or to both improve
quality and/or functional efficiency and reduce life cycle cost. A brief
s u m m a r y of steps necessary to conduct the Life Cycle Costing Analysis
is shown below:
Development of a spectrum of candidate alternates.
Development of raw economic cost data for each alternate by the