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Oklahoma Administrative Code (Last Updated: March 11, 2021) |
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TITLE 260. Office of Management and Enterprise Services |
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Chapter 65. Construction and Properties |
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Subchapter 11. Life Cycle Costing for State Facilities |
SECTION 260:65-11-2. Definitions
Latest version.
- The following words or terms, when used in this Subchapter, shall have the following meaning unless the context clearly indicates otherwise:"A" means the amount of money after n years in future."a" means annually recurring costs."Annually recurring costs" means those costs which are incurred each year, usually in an equal amounts, throughout the study period."Base year" means the year in which the Life Cycle Cost analysis is conducted."Base year price" means the price of goods or services as of the beginning of the base year."Cash flow" means the stream of costs and benefits resulting from a project investment."Cost escalation rate" means the rate by which an annual expense is assumed to escalate per year."Discounting" means a technique for converting cash flows occuring over time to time-equivalent values, adjusting for the Time Value of Money."E" means energy costs."Economic life" means the period of time over which a facility or a piece of equipment is considered to have the lowest total cost."I" means investment costs."i" means the interest rate per year."Investment costs" means the initial costs of design, engineering, purchase and installation, all of which are assumed to occur as lump sum at the beginning of the base year for purposes of making the Life Cycle Cost analysis."j" means the cost escalation rate per year."LCC" means life cycle costing."Life cycle costing" means a method of economic evaluation that sums discounted dollar costs of initial investment, operations, maintenance, repair and replacement less salvage value of state facility or equipment over the study period."M" means maintenance and non-fuel operating costs."n" means the number of years in the study period."Nonfuel operation and maintenance costs" means labor and material costs required for routine upkeep and operation, exclusive of energy costs."P" means present worth."Present worth" means the time-equivalent value of past, present or future cash flows as of the beginning of the base year."Present worth factor" means a factor by which annually recurring amounts may be multiplied to find their equivalent Present Worth (see Appendix B of this Chapter)."Present worth escalating factor" means a factor by which a non-uniform annual expense, such as energy or labor costs, may be multiplied to find its equivalent present worth (see Appendix B of this Chapter)."PWEF" means the present worth escalating factor."PWF" means the present worth factor."R" means the replacement cost."Replacement costs" means the future costs to replace equipment usually at the end of their economic life."S" means the salvage value."Salvage values" means the estimate of future salvage values of items sold as used equipment or scrap usually at the end of their economic life."Single present worth" means a factor by which a single future amount, such as replacement cost or salvage value, may be multiplied to find its equivalent present worth (see Appendix B of this Chapter)."SPW" means single present worth."State facilities" means any building or improvement to real property constructed for state use subject to the provisions of Title 61, Oklahoma Statutes. This rule shall apply also to property leased or being prepared for lease by the state."Study period" means the length of time period covered by the economic evaluation. Typically it is equal to the economic life of the evaluation subject."Time value of money" means the time-dependent value of money. The adjustment of cash flows to a common time basis is necessary to take into account the real earning potential of investment over time."TLCC" means total life cycle cost."Total life cycle cost" means the total discounted dollar cost of owning, operating and maintaining a state facility or equipment over the study period.