Life Cycle Costing

EXPERTISE

LIFE CYCLE COSTING (LCC)

Marina Utilities has made a commitment to custom design, quality fabrication, assembly and installation of modern, high-tech marina utilities. This commitment to quality includes the use of a higher grade 316 stainless steel parts and connectors, and HDPE piping as opposed to commonly used PVC piping. The result is a marina that benefits from lasting and quality construction, with a marina utilities design system that will last 25-30 years vs. a lower cost system that will last 5 years.

It is important to Marina Utilities that their customers benefit from the higher quality product design and installation and that developers and contractors feel confident that they have made the right choice for their clients’ safety and convenience. Therefore, a focus for the Marina Utilities management, engineers and technicians is on education regarding Life Cycle Costing.

Life cycle costs of equipment and systems incorporate the installed cost of the equipment, including its commissioning, combined with the sum of its annual maintenance and costs over its lifetime. Quality 316 stainless steel components and monolithic HDPE piping can save money by providing leak proof, non corroding use in the harsh marina environment. Less expensive PVC piping and non-stainless parts and connections may have a lower initial cost, but will not fare well as they degrade over time.

Life cycle cost is the total cost of ownership, including the cost of acquisition, operation, and maintenance and/or decommission. Therefore, with regard to marina utilities, an analysis of true cost (life cycle cost) is done over annual time increments during the project life and projected life span. The benefit to the client is to have the highest quality offering while achieving the lowest long-term cost of ownership.

Usually the cost of operation, maintenance, and disposal costs exceed all other first costs many times over (supporting costs are often 2-20 times greater than the initial procurement costs).

Marina Utilities offers seminars and one-on-one consultation for owners, developers and contractors on low bid price vs. Life Cycle Costing of superior systems.

Marina Utilities’ seminar will describe what is meant by Life Cycle Costing with regards to a marina and how it is computed.

  • The seminar will assist the client by graphically conveying Life Cycle Costing.
  • Statistical and other Life Cycle costing information is also conveyed graphically using accurate data and project information costs.
  • The Life Cycle Costing seminar will name, illustrate and demonstrate the factors that go into quality fabrication, assembly and installation.
  • The Life Cycle Costing seminar will explain some of the reasons why companies typically choose low cost bid, and how this can be avoided:
  • Initial Procurement costs are widely used as the primary criteria for equipment or system selection based on a simple payback period.
  • Life Cycle Cost analysis can be a useful tool to determine and demonstrate that operational savings are sufficient to justify the initial investment costs.
  • For the lowest long term cost of ownership, reliability and ease of maintenance should be factored into the total cost analysis, as well as considering potential adverse outcomes of leaks affecting water quality and Clean Marin™ programs, as well as lack of convenience to guest and possible downtime because of maintenance and repair of lesser quality materials and systems.
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