Life Cycle Costing in Government Procurement.
Abstract
In the area of government procurement, Life Cycle Costing involves the consideration of post-acquisition costs, such as maintenance and operating expenses, in the making of decisions regarding the acquisition of goods and services. This thesis focuses on the use of life cycle costing techniques in determining the method of contracting and/or the determination of the recipient of a government contract in a competitive procurement in order to minimize the total cost of the acquisition from purchase to final disposal. Emphasis is given to an examination of the interaction of the practical and legal constraints under which life cycle cost applications must operate. This examination is facilitated through a discussion of the concept and theory of life cycle costing and a review of the factors to be considered in deciding which procurements may benefit from its use. The development of evaluation criteria and its incorporation into a solicitation is also treated in detail. Finally, the use of mechanisms to prevent bidder from gaming such an evaluation is given concise treatment, including the use of post award price adjustment and warranty provisions to achieve this purpose. Within this organizational framework, the thesis deals with the current constraints on the use of life cycle costing arising from various statutory requirements and the procurement guidance issued via Comptroller General Decisions. Although federal procurement materials form the basis for the majority of this work, treatment is also given to state procurement policies. (Author).
Document Details
- Document Type
- Technical Report
- Publication Date
- May 01, 1985
- Accession Number
- ADA151878
Entities
People
- D. H. Shaw
Organizations
- Air Force Institute of Technology