Impact of life-cycle costing on Navy family housing acquisition.

Abstract

The goal of this thesis is to identify ways to improve the selection process for family housing project alternatives. The thesis concentrates on the economic analysis of the current program that allows the government to lease housing from the private sector (i.e. the Section 801 program). In particular, the role of energy costs is examined. A cost benefit analysis demonstrates the merit of life-cycle costing for the 801 program. The inclusion of all life-cycle costs in an 801 program contract should result in a lower total cost to the government. The recommendation, therefore, is that the award of an 801 program contract for Navy family housing should be based on lowest total life-cycle cost.