NCMA World Congress 2006

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(No Transcript)
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Life-Cycle Asset Management and Performance-Based
Contracting - a Case Analysis
Breakout Session 1609 Roy A. Nyquist, CPCM,
Fellow Federal Contract Manager, Tremco, Inc.
April 12, 2006 120-220PM
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Objectives

• Understand the Basic definitions for Value
  Engineering (OMB Cir 131)
• 2. Understand DODs policies on Performance
  Based contracts
• 3. Understand the Efficient Utilization of
  Funds(EUF) model

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Definitions- OMB Cir-131

• Life-cycle cost
• Cost savings
• Cost avoidance
• Value Engineering

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Policy and Guidance

• Acquisition Reform ( FASA, FARA(Clinger-Cohen),
• FAR 37.6
• DOD Goal PBSC
• OMB Cir 131

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Life Cycle Assessment

• Look beyond Cost
• Investment for the future
• Cradle to grave Impact
• Who will do Study? (internal or external)
• LCA tools
• Data Integrity

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Business Case Analysis

• Potential uses include
• Vehicles
• Buildings
• HVAC
• Roofs
• Pavement
• Any asset that could be considered a capital
  asset where cost savings and actual costs can be
  documented over time.

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Business Case Analysis

• An integrated programmatic approach to facility
  asset management that improves asset inventory
  performance at the lowest life cycle cost and
  highest return on investment.

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Efficient Utilization of Funds(EUF)
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Summary

• KO as Business Manager
• Accurate Data is essential
• Look beyond Acquisition Cost
• Ensure result provides better quality, lowest
  cost, highest ROI