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 | ||
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| Capital Items |
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| Annual Items |
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| Leases |
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| Program |
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| Building Operations |
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| Cyclical Items |
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| Receipts |
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| Residual Value |
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| Total NPV over 25 years |
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Sample Costing Template for each Alternative:
| Quantitative Analysis - Alternative 1 | Year 0 | Year 1 | Year 2 | … | Year 25 |
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| Capital Items: |
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| Planning and bridging |
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| Construction |
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| Building Purchases |
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| Land Purchases |
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| Specialized equipment |
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| Information Technology |
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| New Furnishings |
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| Change Orders/Scope Changes |
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| Annual Operating Items: |
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| Program Salary and Benefits |
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| Program Supplies and Services |
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| Leases |
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| Building Operations |
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| Cyclical Items: |
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| Building maintenance |
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| Information Technology |
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| Furnishings |
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| Receipts: |
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| 3rd Party Lease Revenue |
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| Parking Revenue |
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| Sale of existing land |
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| Sale of existing buildings |
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| Residual Value: |
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| Buildings |
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| Land |
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| Net Cost (Revenue): |
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| Net Present Value (X%): |
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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.