Life-cycle costing for procurement of small buses

Technical Report · Fri Aug 01 04:00:00 EDT 1980

OSTI ID:6347596

Winslow, B; Morrow, R; Carbone, R; Cross, E

Life-cycle costing is a technique for objectively incorporating the costs of ownership of equipment in the procurement selection process. It is an accepted alternative to low initial price for selection of transit rolling stock. To be used in procurement, the evaluation procedure must be described in the bidders' information and the procedure and data used must be based on the established relationship to the costs of owning and operating the equipment. Forecasts of future costs for maintenance and fuel may be based on experience obtained either in a testing program or final normal revenue service operation. Realistic assessments of future operating environment and requirements, and consistent applications of procedures and cost parameters, tend to minimize the risk that errors in estimates of future costs will result in an incorrect selection. Use of life-cycle costing reduces the probability that low-priced, but inappropriate, vehicles will be selected for transit service and encourages vendors to incorporate cost-effective improvements in tendered vehicles.

• Research Organization: Gill Associates, Inc., Washington, DC (USA)
• OSTI ID: 6347596
• Report Number(s): UMTA-RI-06-0007-80-1; ON: DE81903589
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
320203* -- Energy Conservation
Consumption
& Utilization-- Transportation-- Land & Roadway
BIDS
BUSES
COST
INTEREST RATE
LIFE-CYCLE COST
PROCUREMENT
TESTING
TRANSPORTATION SYSTEMS
VEHICLES