|Submission Date||May 31, 2016|
University of Wisconsin-Milwaukee
OP-16: Life Cycle Cost Analysis
Chief Sustainability Officer
Office of Sustainability
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?:
Does the institution employ LCCA as a matter of policy and practice across the operations of the entire institution (i.e. all divisions)?:
A brief description of the LCCA policy(ies) and practice(s):
State Procurement Policy: http://vendornet.state.wi.us/vendornet/procman/prod19.asp
Specifications should use life cycle costing when it is appropriate to include the costs of waste disposal or to evaluate durability or reusability.
Life cycle cost formulas may include, but are not limited to the applicable costs of energy efficiency, acquisition and conversion, money, transportation, warehousing and distribution, training, operation and maintenance and disposition or resale.
Bid specifications should state whether or not life cycle costs will be used in the bid evaluation. If life cycle costing is used for bid evaluation but the details are not included in the bid specifications, then the terms, conditions, and evaluation criteria will be available upon request at the time of the bid opening.
Any energy-related product implemented for the purpose of energy savings is evaluated according to its simple payback, or the length of time it can pay for the initial investment through energy savings. If the simple payback exceeds the useful life of the product, it is deemed infeasible. While this calculation is suitable for purposes of securing state funding, campus projects also incorporate an estimate of maintenance costs, particularly when a project can realize maintenance savings over the existing technology or product.
Therefore, maintenance cost is implicit in the lifetime of the product itself, but servicing more complex systems that might only achieve minimal gains in energy savings lose some degree of credibility, even if they achieve the lifetime payback metric.
The website URL where information about the institution’s LCCA policies and practices is available: