Full Life Cycle Cost Analysis

The detailed analysis will include a full life cycle cost analysis. All costs and expected benefits resulting from the P3 alternative should be analyzed and compared to the costs and benefits of a PSC. This methodology provides the reader with a total cost picture and includes both capital and operating expenditures.

The full life cycle cost analysis is an extension of the preliminary analysis completed during the feasibility assessment.

Sample of a Summary Cost Benefit Template:

Summary of Quantitative Cost/Benefit

PSC

P3

Capital Items

 

 

Annual Items

 

 

Leases

 

 

Program

 

 

Building Operations

 

 

Cyclical Items

 

 

Receipts

 

 

Residual Value

 

 

Total NPV over 25 years

 

 

Sample Costing Template for each Alternative:

Quantitative Analysis - Alternative 1

Year 0

Year 1

Year 2

…  

Year 25

 

 

 

 

 

 

Capital Items:

 

Planning and bridging

 

 

 

 

 

Construction

 

 

 

 

 

Building Purchases

 

 

 

 

 

Land Purchases

 

 

 

 

 

Specialized equipment

 

 

 

 

 

Information Technology

 

 

 

 

 

New Furnishings

 

 

 

 

 

Change Orders/Scope Changes

 

 

 

 

 

Annual Operating Items:

 

Program Salary and Benefits

 

 

 

 

 

Program Supplies and Services

 

 

 

 

 

Leases

 

 

 

 

 

Building Operations

 

 

 

 

 

Cyclical Items:

 

Building maintenance

 

 

 

 

 

Information Technology

 

 

 

 

 

Furnishings

 

 

 

 

 

Receipts:

 

3rd Party Lease Revenue

 

 

 

 

 

Parking Revenue

 

 

 

 

 

Sale of existing land

 

 

 

 

 

Sale of existing buildings

 

 

 

 

 

Residual Value:

 

Buildings

 

 

 

 

 

Land

 

 

 

 

 

Net Cost (Revenue):

 

 

 

 

 

Net Present Value (X%):

 

 

 

 

 

Provide a projection of the total annual payments, including annual operating and maintenance costs, which would be incurred over the concession period and how these costs will be accommodated within the Ministry's Business Plan and the government's fiscal plan.