Writers' First Review Draft: (2VAE)
Term (2WAI)
Life-cycle costs (2WAJ)
Origin/Source for Inclusion of the Term (2WAK)
Circular No. A–11 Section 300—Planning, Budgeting, Acquisition, And Management Of Capital Assets OMB Circular No. A–11 (2004) (2WAL)
OMB Context Definition (2WAM)
means the overall estimated cost, both Government and contractor, for a particular program alternative over the time period corresponding to the life of the program, including direct and indirect initial costs plus any periodic or continuing costs of operation and maintenance. (2WAN)
Reference/URL OMB Context Definition (2WAO)
Circular No. A–11 Section 300—Planning, Budgeting, Acquisition, And Management Of Capital Assets OMB Circular No. A–11 (2005) (2WAP)
Business Definition (2WAQ)
The estimated cost of a program or product during its useful life. (2WAR)
Reference/URL for Business Definition (2WAS)
Original definition developed by David S. Walters, Vice President, Intervise, Inc., dwalters@intervise.com, 240 364 9500, created on June 20, 2005. (2WAT)
Technical Definition (2WAU)
A well-known method used in systems engineering, procurement, and other activities where it is of interest to estimate and compare costs for design and development / acquisition, operation, support and disposal during the life span of a product. This technique can be used for many reasons, but its primary uses are: • Comparison of competing alternatives • Long range planning and budgeting • Selection among competing contractors • Decisions about replacement of ageing equipment • Control over ongoing programs (2WAV)
Reference/URL Technical Definition (2WAW)
Synthesized definition from the following sources, all accessed on June 20, 2005: (1) Definition of LCC, Systecon(UK) Systems & Logistics Engineering, http://www.systecon.co.uk/definitions/lifecyclecost.html (2) Life Cycle Cost Analyses, ReliaSoft Corporation, http://www.weibull.com/SystemRelWeb/life_cycle_cost_analyses.htm (2WAX)
Context Definition 1 (2WAY)
For a defense acquisition program, Lifecycle cost consists of research and development costs, investment costs, operating and support costs, and disposal costs over the entire Lifecycle. These costs include not only the direct costs of the acquisition program, but also include indirect costs that would be logically attributed to the program. The concept of total ownership cost is related, but broader in scope. Total ownership cost consists of the elements of Lifecycle cost, as well as other infrastructure or business process costs not necessarily attributable to the program. (2WAZ)
Reference/URL Context Definition 1 (2WB0)
http://akss.dau.mil/dag/Guidebook/IG_c3.1.asp, accessed on June 20, 2005. (2WB1)
Context Definition 2 (2WB2)
Reference/URL for Context Definition 2 (2WB3)
Context Definition 3 (2WB4)
Reference/URL for Context Definition 3 (2WB5)
See Also Related Terms (2WB6)