Applications of an Expansion Theorem to the Development of by Brown E. W.

By Brown E. W.

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Government in connection with the procurement of a large new building for the Social Security Administration in Baltimore, Maryland in 1976. Prior to the bidding on the first cost, each bidder was asked to submit details on the energy related portions of the building that they were proposing. This data was evaluated by an independent firm on behalf of the Government and life-cycle energy costs established. Each bidder was informed of the calculated life-cycle energy cost and was told that the award of the contract would go to the firm whose sum total of first cost plus life energy cost was the lowest.

Cleaning & painting. Testing Waste disposal. 4. 5. 6. 7. 8. * Operators: The annual wages of building engineers and/or operators should not be included as part of maintenance, but entered as a separate cost item. 2. Life-Cycle Examples When considering life-cycles, especially those in excess of 10 or 20 years, the most significant element in the life-cycle cost becomes the inflation and escalation factors that are used, to a point where they overshadow the basis for the analysis which are hopefully the facts that exist today.

As can be seen, the vertical axis is based on the ratio of C (initial cost of a system) over S (annual maintenance and operating cost savings). The horizontal axis shows the payback period in years. Each curve represents a different rate of interest. Thus, assuming an initial investment of $3,000 and annual operating and maintenance saving of $600 (which will be applied to repaying the loan), the result is a C/S ratio of 5 which, at 10% interest, results in payback period of a little more than seven years.

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