1. Phoenix Convention Center Phoenix, Arizona Life-Cycle Cost Analysis for large projects Agency Energy ManagerLife-Cycle Cost Methodology Jeanette Fiess, P.E., LEED AP BD+C, CEM US Army Corps of Engineers, Northwestern Division August 12, 2015

2. Energy Exchange : Federal Sustainability for the Next Decade Agenda USACE LCCA implementation Challenges Best practices 2

3. Energy Exchange : Federal Sustainability for the Next Decade USACE LCCA Implementation Applicable to MILCON + Civil Works missions – Statutorily required Issue: – Subjectivity Solution: – Policy – Engineering & Construction Bulletin (ECB) 2015-7 3

4. Energy Exchange : Federal Sustainability for the Next Decade USACE ECB 2015-7 Requirements Systematic evaluation of alternatives Use the Building Life-Cycle Cost (BLCC) program Discounted payback period < 40 years Separate document 4

5. Energy Exchange : Federal Sustainability for the Next Decade USACE ECB 2015-7 Requirements Clearly identify assumptions Complete before 35% (concept) design Consider 3 alternatives Conduct sensitivity analysis 5

6. Energy Exchange : Federal Sustainability for the Next Decade LCCA challenges Misunderstanding of LCCA requirements – Too much focus on simple payback – LCCA not always conducted when required Different results from different teams Poor documentation of assumptions and decisions 6

7. Energy Exchange : Federal Sustainability for the Next Decade LCCA best practices Scope and scale Capture all costs Document Peer review 7

8. Energy Exchange : Federal Sustainability for the Next Decade LCCA best practices – Scope and scale Identify end goal – 30% energy savings? – Net Zero? – Energy security? Determine appropriate level of detail for LCCA – Campus central utility plant – Lighting retrofit at small office building 8

9. Energy Exchange : Federal Sustainability for the Next Decade LCCA best practices – Capture all costs First – Capital – Installation labor – Construction Maintenance – Labor rates – Compatibility with existing systems and personnel 9

10. Energy Exchange : Federal Sustainability for the Next Decade LCCA best practices – Capture all costs Operation – Energy and fuel use – Labor rates Additional – Replacement – Disposal – Salvage value – Discount and escalation rates – Energy escalation rate 10

11. Energy Exchange : Federal Sustainability for the Next Decade LCCA best practices – Document Assumptions – Quantity and cost of labor – Operations and maintenance needs Data sources – RS Means – NIST – On site personnel – Manufacturer information Decisions – Why a less cost effective option was chosen 11

12. Energy Exchange : Federal Sustainability for the Next Decade LCCA best practices – Peer review Share data with peers Provide review service for peers Assume positive intent 12

13. Energy Exchange : Federal Sustainability for the Next Decade USACE LCCA resources USACE ECB 2015-7, LCCA Requirements – http://www.wbdg.org/ccb/ARMYCOE/COEECB/ec b_2015_7.pdf http://www.wbdg.org/ccb/ARMYCOE/COEECB/ec b_2015_7.pdf USACE Center of Expertise for LCCA – http://www.usace.army.mil/Missions/Sustainabilit y/CentersofExpertiseinSustainability/LifeCycleCost AnalysisforEngineerSystems.aspx http://www.usace.army.mil/Missions/Sustainabilit y/CentersofExpertiseinSustainability/LifeCycleCost AnalysisforEngineerSystems.aspx 13