TRB's Airport Cooperative Research Program (ACRP) Research Report 172: Guidebook for Considering Life-Cycle Costs in Airport Asset Procurement explores how other industries use the total cost of ownership (TCO) approach for initial procurement, and how to integrate this into future airport procurement practices. A
TCO Tool
and five
instructional videos
on how to use the TCO Tool accompany the report.
Airports, as well as other governmental entities, usually are required to take the lowest bid when procuring assets. This approach tends not to take into consideration the life-cycle costs, such as the operation and maintenance (O&M) costs, which can result in higher than anticipated costs from the O&M budget. Since the purchase of assets is allocated from capital funds that are managed by a person typically different than the person responsible for the day-to-day management of O&M funds, there can be a disconnect on what is considered “better” when considering two bids. Taking a life-cycle, also known as a TCO approach, to the initial procurement may ensure a more fiscally responsible use of funds.
Disclaimer - This software is offered as is, without warranty or promise of support of any kind either expressed or implied. Under no circumstance will the National Academy of Sciences, Engineering, and Medicine or the Transportation Research Board (collectively "TRB") be liable for any loss or damage caused by the installation or operation of this product. TRB makes no representation or warranty of any kind, expressed or implied, in fact or in law, including without limitation, the warranty of merchantability or the warranty of fitness for a particular purpose, and shall not in any case be liable for any consequential or special damages.
READ FREE ONLINE
