A TCO Index calculation method has been developed using the adjacent figure.
The model takes into account all related costs to be accounted for in a bid evaluation. The model also considers Asset Lifecycle duration and management aspects.
The TCO Index is a normalized figure in order to ensure confidentiality of financial figures presented by bidders. There are two versions of the TCO Index calculation ...
1) a detailed model, and 2) simplified version.
A TCO Index example of 77.5 versus a base case of 100 for a lifecycle of 20 years is shown, in which lifecycle costs are allocated to CAPEX and OPEX types (e.g. acquisition, deployment, operation and support, retirement and replacement).
