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Life cycle costing as a method of procurement: A framework and example

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  • McEachron, Norman B.
  • Hall, Douglas C.
  • Lewis, L.Floyd

Abstract

Life cycle costing (LCC) is one of a number of procurement incentives being considered by civilian government agencies to improve the cost-effectiveness and technological quality of procured products and systems. A framework for selection of products or systems, industries, and agencies to which LCC is appropriate is presented. The LCC procurement of home appliances by the General Services Administration (GSA), assisted by the Experimental Technology Incentives Program (ETIP), illustrates the development of this framework and the dollar benefits obtainable from LCC procurement. The example also reveals the importance of prior assessment and ongoing evaluation to implement and improve LCC procurement methods.

Suggested Citation

  • McEachron, Norman B. & Hall, Douglas C. & Lewis, L.Floyd, 1978. "Life cycle costing as a method of procurement: A framework and example," Energy, Elsevier, vol. 3(4), pages 461-478.
    • Handle: RePEc:eee:energy:v:3:y:1978:i:4:p:461-478
    DOI: 10.1016/0360-5442(78)90007-5
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    Cited by:

    1. Wang, Liyang & Morabito, Molly & Payne, Christopher T. & Robinson, Gerald, 2020. "Identifying institutional barriers and policy implications for sustainable energy technology adoption among large organizations in California," Energy Policy, Elsevier, vol. 146(C).

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