AIR FORCE INSTITUTE OF TECHNOLOGY WRIGHT-PATTERSON AFB OH WRIGHT-PATTERSON AFB United States
In order to make the most cost-effective choice when purchasing high-value assets, organizations must be able to quantify and compare the costs associated with acquiring, maintaining and disposing the alternatives. Currently, the United States Air Force USAF Civil Engineer CE enterprise has no standardized model to accurately and efficiently predict the total cost of ownership TCO for the acquisition of new assets. As such, acquisition efforts throughout the enterprise are disjointed and performed without leveraging the considerable buying power wielded by an organization as large as the USAF. This research developed a TCO model using a standard, dollar-based approach that combined linear additive and regression modeling techniques. The model was derived from existing operations and maintenance and contract spending data associated with heating, ventilation, and air conditioning. The TCO model provides USAF acquisition, contracting, and civil engineering professionals a tool with which to project life-cycle costs, negotiate prices, and justify spending decisions.