1. Life Cycle Cost View Program Acquisition Cost Procurement Cost
Source: DAU Cost Platinum Card

2. Program Life Cycle Cost
Add these
things:

3. Life Cycle Cost (LCC) vs. Total Ownership Cost (TOC) Perspective
Cost Element
LCC Includes…
TOC Adds…
Acquisition
Program Office
DMCA/DCAA, HQ
Logistics
Depot maintenance, spares
Central logistics (explicit)
Fuel
Commodity price ($/gal)
Delivery Cost (FBCF)
Personnel
Direct salary and medical benefits
Recruiting, other “variable overheads”
Training
System-specific training
“Schoolhouse” and accession training
Facilities
BOS, sustainment
New facilities
This table summarizes several major cost elements and how LCC and TOC view them differently.
In the realm of Acquisition Support, Program Office staff are typically included in LCC, but TOC might expand to include the program’s fair share of “contract oversight support from the Defense Contract Management Agency and the Defense Contract Audit Agency, and most management headquarters functions.”
In Logistics, “important central (i.e., wholesale) logistics infrastructure activities such as supply chain management are implicitly incorporated in a traditional life-cycle cost estimate, but their costs are somewhat hidden (because these costs are reflected in the surcharges associated with working capital fund arrangements and are not explicitly identified).” A TOC estimate for a trade study might explicitly include costs for central logistics alternatives.
For Fuel, LCC typically includes just the commodity price in dollar per gallon as specified in the Defense Energy Supply Center (DESC) price list, but FBCF adds a myriad of burdens associated with the delivery of fuel in theater at wartime OPTEMPO.
For Personnel and Training, direct salary and benefits and system-specific training for unit personnel are included in LCC, but TOC adds recruiting and other training and support costs.
For Facilities, LCC includes “base operating support and facilities sustainment, restoration and modernization,” but the need for new facilities altogether, like the aforementioned pier, would be added to TOC.
Source: Defense Acquisition Guidebook (DAG), Section Total Ownership Costs