Overall Rating Expired
Overall Score Expired
Liaison Barbara Kviz
Submission Date Feb. 27, 2015
Executive Letter Download

STARS v2.0

Carnegie Mellon University
OP-16: Life Cycle Cost Analysis

Status Score Responsible Party
Complete Expired Shawn Fronzaglia
Director
Procurement Services
"---" indicates that no data was submitted for this field

Does the the institution employ Life Cycle Cost Analysis (LCCA) as a matter of policy and practice when evaluating energy and water-using products and systems?:
Yes

Does the institution employ LCCA as a matter of policy and practice across the operations of the entire institution (i.e. all divisions)?:
Yes

A brief description of the LCCA policy(ies) and practice(s):

Carnegie Mellon University encourages Life Cycle Cost Analysis to determine the most cost-effective solution. When selecting a partner for a good or service we must understand alternatives to purchase, own, operate, maintain and, finally, dispose of an object or process. During our financial analysis we look to the future to understand the total cost options over the life of a product or service. We ask our vendors and stakeholders questions to allow them to think through the whole scope of the solution. The low cost alternative is not always in the best interest of the institution and we encourage partnership with our outside vendors to guide us through our decision making.
Example: During our Janitorial Services selection we broke down the long term implications of choosing a partner. We are expanding our campus and what are the best solutions moving forward that will allow our facilities to be of the highest standards in the future. Should we explore automated devices in our restrooms? Should we explore alternative cleaning products that cut down on chemical usage? Does the vendor have other solutions that would constitute a partnership in other categories? We wanted to understand how adding square footage would affect pricing in the future. We needed to understand how advanced in Green technology would cut down on harmful chemicals and reduce costs. We needed to create a pricing template the would break out labor, management, and supplies over the lifetime of the contract. By getting to the root of these questions and possible solutions, we became very educated on the total cost of the entire operation as it stand now and for the lifetime of the contract as campus expanded.

+ Date Revised: May 1, 2015

The website URL where information about the institution’s LCCA policies and practices is available:

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