Life Cycle Costing (LCC)

LCC is the identification and analysis of all costs incurred in research and development, acquisition, in-service operation and support, and disposal of an equipment / system.  LCC is used to identify the budget implications of capital investment decisions and the cost impact of various design and support options for materiel systems.  LCC is a key analytical tool used by ILS personnel, in-service support staff, finance staff and engineers in the development, production and in-service support of materiel systems. 

A LCC study is required to compare the broad costs and operational effectiveness of options for carrying out a particular task or tasks, with cost drivers initially drawn from the Use Study Report and the ILSC.  The aim of the LCC Study is to assist in the preliminary judgement of options to identify those that offer the best potential value in terms of cost effectiveness through a capabilities life.  As a minimum, the LCC Study should identify