Download or read book Guidebook for Considering Life-cycle Costs in Airport Asset Procurement written by John Fortin and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: TRB's Airport Cooperative Research Program (ACRP) Research Report 172: Guidebook for Considering Life-Cycle Costs in Airport Asset Procurement explores how other industries use the total cost of ownership (TCO) approach for initial procurement, and how to integrate this into future airport procurement practices. Airports, as well as other governmental entities, usually are required to take the lowest bid when procuring assets. This approach tends not to take into consideration the life-cycle costs, such as the operation and maintenance (O & M) costs, which can result in higher than anticipated costs from the O & M budget. Since the purchase of assets is allocated from capital funds that are managed by a person typically different than the person responsible for the day-to-day management of O & M funds, there can be a disconnect on what is considered "better" when considering two bids. Taking a life-cycle, also known as a TCO approach, to the initial procurement may ensure a more fiscally responsible use of funds.