LIFE CYCLE COST (LCC): A NEW APPROACH FOR EQUIPPING DEFENCE FORCES
- The article explains the concept of Life Cycle Cost (LCC), which is the total cost of owning and operating a piece of equipment over its life span.
- The article argues that LCC should be considered in defense procurement, as it can provide a more accurate and realistic comparison of different equipment options than the current L1 model, which only considers the initial procurement cost.
- The article identifies the key components of LCC, such as basic procurement cost, recurring cost, operational cost, and salvage value, and suggests how they can be calculated and included in the tender documents.
- The article acknowledges the challenges in applying LCC to different types of equipment and operating conditions, and calls for data collection and analysis to support LCC estimation.
- The article recommends a gradual implementation of LCC in defense procurement, starting with capital-intensive equipment, and emphasizes the need for proactive actions to adopt LCC for national security.
