ART - Use of Life Cycle Cost Analysis in Procurement 2008

The document is the Cobb County Purchasing Policy regarding the use of Life Cycle Cost Analysis (LCCA) in procurements. The policy, approved by the Cobb County Government Board of Commissioners in 2008, allows for the consideration of the total cost of ownership in the evaluation and award of certain bids. Previously, awards were based solely on the lowest price for acquisition, delivery, and installation costs. LCCA methodology takes into account the long-term costs of ownership, including purchase price, shipping, maintenance and repair, longevity, and disposition costs. It also allows for the consideration of additional cost streams and savings. LCCA can be used in Invitation to Bid (ITB) or Request for Proposal (RFP) processes for products or equipment when the costs of operation, support, and disposal are significant. The document outlines the requirements for utilizing LCCA in procurements, including informing offerors how LCCA will be considered, incorporating LCCA in bid evaluation methodology, and providing relevant information in the solicitation. The document also explains the award decision process for ITBs and RFPs based on LCCA.