1.8 Life Cycle Costing
Methodology
There are many established guidelines and computer-
based tools that effectively support Present Value LCC
Purpose
analyses. The National Institute of Standards and
Life Cycle Costing (LCC) is an important economic
Technology (NIST) has prepared the Life Cycle Costing
analysis used in the selection of alternatives that impact
Manual for the Federal Energy Management Program
both pending and future costs. It compares initial invest-
(NIST Handbook 135), and annually issues real growth
ment options and identifies the least cost alternatives for
Energy Price Indices and Discount Factors for Life Cycle
a twenty year period.
Cost Analysis. As a companion product, NIST has also
established the Building Life Cycle Cost (BLCC)
The A/E shall contact local utility companies to determine
computer program to perform LCC analyses. The latest
available demand-side management programs and no-
versions of the BLCC program not only structure the
cost assistance provided by these companies to designers
analysis, but also includes current energy price indices
and owners.
and discount factor references. These NIST materials
define all required LCC methodologies used in GSA
Applications
design applications.
Basic applications of LCC are addressed within the indi-
It is recommended that the A/E obtain the BLCC
vidual chapters herein and may be further defined within
software and update from NIST. The latest information
an A-E's design programming scope requirements. As
on the BLCC software is available on the Internet at:
applied to building design energy conservation measures,
the process is mandated by law and is defined in the Code
of Federal Regulations (CFR), Title 10, Part 436, Subpart
Procedures and Approach
A: Program Rules of the Federal Energy Management
Program. In general, LCC is expected to support selection
The most effective approach to LCC is to appropriately
of all building systems that impact energy use: thermal
integrate it into the design process.
envelope, passive solar features, fenestration, HVAC,
The building design evolves from general concepts to
domestic hot water, building automation and lighting.
detailed analysis. LCC needs to follow the same approach
However, LCC can also be applied to building features or
paralleling the focus to the current level of detail study.
involve costs related to occupant productivity, system
maintenance, environmental impact and any other issue
It is extremely important for the effective development of
that impacts costs over time. It is very important to
the project that commitments are made and retained on
recognize the significance of integrated building systems
the building systems, in a general sense, during the
design in the overall efficiency of the design.
Conceptual Phase.
The building systems should be analyzed for appropri-
ateness during the first stages of the Design Development
Phase. A commitment on direction for the systems needs
to be made at this time, and any further LCC studies
focused on detail within each system.
22 F A C I L I T I E S S T A N D A R D S
FOR THE
PUBLIC
BUILDINGS
SERVICE
1.8 Life Cycle Costing
Revised March 2005 PBS-P100
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