{"id":6907,"date":"2021-03-11T16:04:02","date_gmt":"2021-03-11T16:04:02","guid":{"rendered":"https:\/\/swefc.unm.edu\/iamf\/?page_id=6907"},"modified":"2026-05-01T20:18:46","modified_gmt":"2026-05-01T20:18:46","slug":"life-cycle-costing-long-term-replacement-plans-business-case-evaluations","status":"publish","type":"page","link":"https:\/\/swefc.unm.edu\/iamf\/life-cycle-costing-long-term-replacement-plans-business-case-evaluations\/","title":{"rendered":"Life Cycle Costing \/ Long Term Replacement Plans \/ Business Case Evaluations"},"content":{"rendered":"<p>[et_pb_section fb_built=&#8221;1&#8243; custom_padding_last_edited=&#8221;on|tablet&#8221; _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; positioning=&#8221;none&#8221; horizontal_offset_tablet=&#8221;&#8221; horizontal_offset_phone=&#8221;&#8221; horizontal_offset_last_edited=&#8221;on|tablet&#8221; custom_margin=&#8221;0px||||false|false&#8221; custom_margin_tablet=&#8221;&#8221; custom_margin_phone=&#8221;&#8221; custom_margin_last_edited=&#8221;on|desktop&#8221; custom_padding=&#8221;0px|||0px|false|false&#8221; custom_padding_tablet=&#8221;|||25px|false|false&#8221; custom_padding_phone=&#8221;&#8221; da_disable_devices=&#8221;off|off|off&#8221; global_colors_info=&#8221;{}&#8221; custom_padding__hover_enabled=&#8221;on|desktop&#8221; theme_builder_area=&#8221;post_content&#8221; da_is_popup=&#8221;off&#8221; da_exit_intent=&#8221;off&#8221; da_has_close=&#8221;on&#8221; da_alt_close=&#8221;off&#8221; da_dark_close=&#8221;off&#8221; da_not_modal=&#8221;on&#8221; da_is_singular=&#8221;off&#8221; da_with_loader=&#8221;off&#8221; da_has_shadow=&#8221;on&#8221; custom_padding__hover=&#8221;0px|||0px|false|false&#8221;][et_pb_row _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; width=&#8221;100%&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_text _builder_version=&#8221;4.27.6&#8243; _module_preset=&#8221;default&#8221; hover_enabled=&#8221;0&#8243; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221; sticky_enabled=&#8221;0&#8243; text_font_size=&#8221;16px&#8221;]<\/p>\n<h2>Business Case Evaluations<\/h2>\n<p>&nbsp;<\/p>\n<p><span data-contrast=\"none\">Because capital projects can be such a significant expense for a system, it is critical that the projects be\u00a0validated\u00a0to make sure the project is\u00a0necessary,\u00a0all potential alternatives are considered, and the best alternative is selected. To address these concerns, a business case evaluation should be\u00a0conducted\u00a0and should\u00a0include\u00a0the following type of information:<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><span data-contrast=\"none\">Project Description<\/span><span data-ccp-props=\"{&quot;201341983&quot;:1,&quot;335559740&quot;:390}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"none\">Need for Project<\/span><span data-ccp-props=\"{&quot;201341983&quot;:1,&quot;335559740&quot;:390}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"none\">Benefits as a Result of the Project<\/span><span data-ccp-props=\"{&quot;201341983&quot;:1,&quot;335559740&quot;:390}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"none\">Risk of Not Doing Project<\/span><span data-ccp-props=\"{&quot;201341983&quot;:1,&quot;335559740&quot;:390}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"none\">Current Asset Condition<\/span><span data-ccp-props=\"{&quot;201341983&quot;:1,&quot;335559740&quot;:390}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"none\">Estimated Useful Life of the Existing Asset<\/span><span data-ccp-props=\"{&quot;201341983&quot;:1,&quot;335559740&quot;:390}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"none\">Estimated Useful Life of the New Asset<\/span><span data-ccp-props=\"{&quot;201341983&quot;:1,&quot;335559740&quot;:390}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"none\">Probability and Consequence of Failure<\/span><span data-ccp-props=\"{&quot;201341983&quot;:1,&quot;335559740&quot;:390}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"none\">Current O&amp;M<\/span><span data-ccp-props=\"{&quot;201341983&quot;:1,&quot;335559740&quot;:390}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"none\">Capital Cost of Proposed Project<\/span><span data-ccp-props=\"{&quot;201341983&quot;:1,&quot;335559740&quot;:390}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"none\">Triple Bottom Line Analysis of Proposed Project<\/span><span data-ccp-props=\"{&quot;201341983&quot;:1,&quot;335559740&quot;:390}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"none\">Understanding Condition Curve and if Asset will Appreciate or Depreciate<\/span><span data-ccp-props=\"{&quot;201341983&quot;:1,&quot;335559740&quot;:390}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"none\">O&amp;M of Proposed Project<\/span><span data-ccp-props=\"{&quot;201341983&quot;:1,&quot;335559740&quot;:390}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"none\">Options for O&amp;M to forestall the capital project<\/span><span data-ccp-props=\"{&quot;201341983&quot;:1,&quot;335559740&quot;:390}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"none\">Alternatives to Proposed Project, including Non-Asset Alternatives<\/span><span data-ccp-props=\"{&quot;201341983&quot;:1,&quot;335559740&quot;:390}\">\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><span data-contrast=\"none\">In some cases, there\u00a0might\u00a0be opportunities for O&amp;M interventions that can keep the\u00a0asset\u00a0in service for some\u00a0additional\u00a0time\u00a0to delay the capital project. These options, cost,\u00a0and number of years gained in useful life\u00a0need to be documented.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">No matter what the proposed project\u00a0is, there\u00a0are\u00a0almost always\u00a0alternatives. There\u00a0might\u00a0be alternatives with different combinations of capital and O&amp;M costs that can be compared to\u00a0determine\u00a0whether a project with higher capital cost and lower O&amp;M cost is more\u00a0advantageous\u00a0than a project with lower capital and higher O&amp;M cost. There\u00a0might\u00a0be alternatives that\u00a0closely\u00a0match community values or alternatives that are more comfortable for the current operators. It is\u00a0critical\u00a0that a thorough analysis of all the alternatives be completed and that the analysis is done objectively. All reasonable alternatives should be clearly presented, along with cost and benefit information.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">A specific type of alternative that should be included, when\u00a0feasible, is a non-asset solution. Non-asset solutions are alternatives that address a need without\u00a0installing\u00a0assets.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">When done correctly, a business case evaluation can take time to complete. Therefore, it\u00a0might\u00a0be\u00a0a good idea\u00a0to use this process only for projects above a certain dollar amount.\u00a0A business case evaluation can have several\u00a0possible outcomes:<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"15\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"26\" data-aria-level=\"1\"><span data-contrast=\"none\">Project should go forward in current year\u2019s CIP<\/span><span data-ccp-props=\"{&quot;201341983&quot;:1,&quot;335559740&quot;:390}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"15\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"27\" data-aria-level=\"1\"><span data-contrast=\"none\">Project should be delayed until a future year\u2019s CIP<\/span><span data-ccp-props=\"{&quot;201341983&quot;:1,&quot;335559740&quot;:390}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"15\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"28\" data-aria-level=\"1\"><span data-contrast=\"none\">Insufficient information was presented in the business case; project should be re-submitted with\u00a0additional\u00a0information<\/span><span data-ccp-props=\"{&quot;201341983&quot;:1,&quot;335559740&quot;:390}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"15\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"29\" data-aria-level=\"1\"><span data-contrast=\"none\">Alternatives should be\u00a0investigated,\u00a0and the project should be re-submitted with the\u00a0additional\u00a0information<\/span><span data-ccp-props=\"{&quot;201341983&quot;:1,&quot;335559740&quot;:390}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"15\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"30\" data-aria-level=\"1\"><span data-contrast=\"none\">A different alternative than the one selected should be chosen<\/span><span data-ccp-props=\"{&quot;201341983&quot;:1,&quot;335559740&quot;:390}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"15\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"31\" data-aria-level=\"1\"><span data-contrast=\"none\">Additional\u00a0O&amp;M is recommended; the project should be delayed for\u00a0some number of\u00a0years<\/span><span data-ccp-props=\"{&quot;201341983&quot;:1,&quot;335559740&quot;:390}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"15\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"32\" data-aria-level=\"1\"><span data-contrast=\"none\">Project should not go forward<\/span><span data-ccp-props=\"{&quot;201341983&quot;:1,&quot;335559740&quot;:390}\">\u00a0<\/span><\/li>\n<\/ul>\n<p>For assistance with preparing \u201cbusiness cases\u201d for proposed capital projects, see The Business Case Evaluation: A Hands-on Manual in the <a href=\"https:\/\/swefc.unm.edu\/iamf\/life-cycle-costing-long-term-replacement-plans-resources\/\">Resources<\/a>.<\/p>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=&#8221;1_2,1_2&#8243; _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; width=&#8221;100%&#8221; locked=&#8221;off&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_column type=&#8221;1_2&#8243; _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_video src=&#8221;https:\/\/youtu.be\/hQL56qy0ilY&#8221; _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; border_radii=&#8221;on|25px|25px|25px|25px&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][\/et_pb_video][et_pb_text _builder_version=&#8221;4.27.6&#8243; _module_preset=&#8221;default&#8221; hover_enabled=&#8221;0&#8243; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221; text_font_size=&#8221;16px&#8221; sticky_enabled=&#8221;0&#8243;]<\/p>\n<p>Justifying projects with business case evaluations &#8211; Kevin Campanella, P.E., Assistant Director Asset Management, Department of Public Utilities, City of Columbus, OH<\/p>\n<p>[\/et_pb_text][\/et_pb_column][et_pb_column type=&#8221;1_2&#8243; _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][et_pb_video src=&#8221;https:\/\/youtu.be\/eBrzDO_ErWQ&#8221; _builder_version=&#8221;4.16&#8243; _module_preset=&#8221;default&#8221; border_radii=&#8221;on|25px|25px|25px|25px&#8221; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221;][\/et_pb_video][et_pb_text _builder_version=&#8221;4.27.6&#8243; _module_preset=&#8221;default&#8221; hover_enabled=&#8221;0&#8243; global_colors_info=&#8221;{}&#8221; theme_builder_area=&#8221;post_content&#8221; text_font_size=&#8221;16px&#8221; sticky_enabled=&#8221;0&#8243;]<\/p>\n<p>With business case evaluations, it is decided early on who will operate and maintain the asset \u2013 Eric Saylor, P.E., Principal Engineer, Project And Business Development Division, Metropolitan Sewer District of Greater Cincinnati, Cincinnati, OH<\/p>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Business Case Evaluations &nbsp; Because capital projects can be such a significant expense for a system, it is critical that the projects be\u00a0validated\u00a0to make sure the project is\u00a0necessary,\u00a0all potential alternatives are considered, and the best alternative is selected. To address these concerns, a business case evaluation should be\u00a0conducted\u00a0and should\u00a0include\u00a0the following type of information:\u00a0 Project Description\u00a0 Need for Project\u00a0 Benefits as a Result of the Project\u00a0 Risk of Not Doing Project\u00a0 Current Asset Condition\u00a0 Estimated Useful Life of the Existing Asset\u00a0 Estimated Useful Life of the New Asset\u00a0 Probability and Consequence of Failure\u00a0 Current O&amp;M\u00a0 Capital Cost of Proposed Project\u00a0 Triple Bottom Line Analysis of Proposed Project\u00a0 Understanding Condition Curve and if Asset will Appreciate or Depreciate\u00a0 O&amp;M of Proposed Project\u00a0 Options for O&amp;M to forestall the capital project\u00a0 Alternatives to Proposed Project, including Non-Asset Alternatives\u00a0 In some cases, there\u00a0might\u00a0be opportunities for O&amp;M interventions that can keep the\u00a0asset\u00a0in service for some\u00a0additional\u00a0time\u00a0to delay the capital project. These options, cost,\u00a0and number of years gained in useful life\u00a0need to be documented.\u00a0 No matter what the proposed project\u00a0is, there\u00a0are\u00a0almost always\u00a0alternatives. There\u00a0might\u00a0be alternatives with different combinations of capital and O&amp;M costs that can be compared to\u00a0determine\u00a0whether a project with higher capital cost and lower O&amp;M cost [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"<!-- wp:divi\/placeholder \/-->","_et_gb_content_width":"","footnotes":""},"class_list":["post-6907","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Life Cycle Costing \/ Long Term Replacement Plans \/ Business Case Evaluations - Integrated Asset Management Framework<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/swefc.unm.edu\/iamf\/life-cycle-costing-long-term-replacement-plans-business-case-evaluations\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Life Cycle Costing \/ Long Term Replacement Plans \/ Business Case Evaluations - Integrated Asset Management Framework\" \/>\n<meta property=\"og:description\" content=\"Business Case Evaluations &nbsp; Because capital projects can be such a significant expense for a system, it is critical that the projects be\u00a0validated\u00a0to make sure the project is\u00a0necessary,\u00a0all potential alternatives are considered, and the best alternative is selected. To address these concerns, a business case evaluation should be\u00a0conducted\u00a0and should\u00a0include\u00a0the following type of information:\u00a0 Project Description\u00a0 Need for Project\u00a0 Benefits as a Result of the Project\u00a0 Risk of Not Doing Project\u00a0 Current Asset Condition\u00a0 Estimated Useful Life of the Existing Asset\u00a0 Estimated Useful Life of the New Asset\u00a0 Probability and Consequence of Failure\u00a0 Current O&amp;M\u00a0 Capital Cost of Proposed Project\u00a0 Triple Bottom Line Analysis of Proposed Project\u00a0 Understanding Condition Curve and if Asset will Appreciate or Depreciate\u00a0 O&amp;M of Proposed Project\u00a0 Options for O&amp;M to forestall the capital project\u00a0 Alternatives to Proposed Project, including Non-Asset Alternatives\u00a0 In some cases, there\u00a0might\u00a0be opportunities for O&amp;M interventions that can keep the\u00a0asset\u00a0in service for some\u00a0additional\u00a0time\u00a0to delay the capital project. These options, cost,\u00a0and number of years gained in useful life\u00a0need to be documented.\u00a0 No matter what the proposed project\u00a0is, there\u00a0are\u00a0almost always\u00a0alternatives. There\u00a0might\u00a0be alternatives with different combinations of capital and O&amp;M costs that can be compared to\u00a0determine\u00a0whether a project with higher capital cost and lower O&amp;M cost [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/swefc.unm.edu\/iamf\/life-cycle-costing-long-term-replacement-plans-business-case-evaluations\/\" \/>\n<meta property=\"og:site_name\" content=\"Integrated Asset Management Framework\" \/>\n<meta property=\"article:modified_time\" content=\"2026-05-01T20:18:46+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/swefc.unm.edu\\\/iamf\\\/life-cycle-costing-long-term-replacement-plans-business-case-evaluations\\\/\",\"url\":\"https:\\\/\\\/swefc.unm.edu\\\/iamf\\\/life-cycle-costing-long-term-replacement-plans-business-case-evaluations\\\/\",\"name\":\"Life Cycle Costing \\\/ Long Term Replacement Plans \\\/ Business Case Evaluations - Integrated Asset Management Framework\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/swefc.unm.edu\\\/iamf\\\/#website\"},\"datePublished\":\"2021-03-11T16:04:02+00:00\",\"dateModified\":\"2026-05-01T20:18:46+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/swefc.unm.edu\\\/iamf\\\/life-cycle-costing-long-term-replacement-plans-business-case-evaluations\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/swefc.unm.edu\\\/iamf\\\/life-cycle-costing-long-term-replacement-plans-business-case-evaluations\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/swefc.unm.edu\\\/iamf\\\/life-cycle-costing-long-term-replacement-plans-business-case-evaluations\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/swefc.unm.edu\\\/iamf\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Life Cycle Costing \\\/ Long Term Replacement Plans \\\/ Business Case Evaluations\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/swefc.unm.edu\\\/iamf\\\/#website\",\"url\":\"https:\\\/\\\/swefc.unm.edu\\\/iamf\\\/\",\"name\":\"Integrated Asset Management Framework\",\"description\":\"Combining Green and Gray Assets\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/swefc.unm.edu\\\/iamf\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Life Cycle Costing \/ Long Term Replacement Plans \/ Business Case Evaluations - Integrated Asset Management Framework","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/swefc.unm.edu\/iamf\/life-cycle-costing-long-term-replacement-plans-business-case-evaluations\/","og_locale":"en_US","og_type":"article","og_title":"Life Cycle Costing \/ Long Term Replacement Plans \/ Business Case Evaluations - Integrated Asset Management Framework","og_description":"Business Case Evaluations &nbsp; Because capital projects can be such a significant expense for a system, it is critical that the projects be\u00a0validated\u00a0to make sure the project is\u00a0necessary,\u00a0all potential alternatives are considered, and the best alternative is selected. To address these concerns, a business case evaluation should be\u00a0conducted\u00a0and should\u00a0include\u00a0the following type of information:\u00a0 Project Description\u00a0 Need for Project\u00a0 Benefits as a Result of the Project\u00a0 Risk of Not Doing Project\u00a0 Current Asset Condition\u00a0 Estimated Useful Life of the Existing Asset\u00a0 Estimated Useful Life of the New Asset\u00a0 Probability and Consequence of Failure\u00a0 Current O&amp;M\u00a0 Capital Cost of Proposed Project\u00a0 Triple Bottom Line Analysis of Proposed Project\u00a0 Understanding Condition Curve and if Asset will Appreciate or Depreciate\u00a0 O&amp;M of Proposed Project\u00a0 Options for O&amp;M to forestall the capital project\u00a0 Alternatives to Proposed Project, including Non-Asset Alternatives\u00a0 In some cases, there\u00a0might\u00a0be opportunities for O&amp;M interventions that can keep the\u00a0asset\u00a0in service for some\u00a0additional\u00a0time\u00a0to delay the capital project. 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