Naval Ship Life Cycle Cost (LCC)

Model

The Naval Ship Life Cycle Cost Model estimates these costs
throughout any stage of a ship designs evolution.
Early cost estimates have a high degree of variability and
high risk. The Cost Model computes both the cost and the
cost risk that can be updated on a regular basis as design
and construction progresses.
The Cost Model also can be used to evaluate ship upgrades
and modernization trade-off studies.

The cost model is designed to support engineering

and operations trade-off studies to minimize life cycle
costs and minimize lost time of operations.

The Cost Model provides many options for changing

ship design specifications and operating
characteristics. Once changes are made, the Cost
Model generates a revise Life Cycle Cost immediately.

Life cycle costing can be applied to establish improvements

at different levels of technology evolution:
1.
2.
3.
4.
5.
6.

Ship Design Decisions

Ship Alterations/Modifications/Conversions
Equipment Selections
Plant Configurations
Commonality Evaluations
Replacement Upgrades versus Maintaining Older Obsolete
Equipment/Systems
7. Substituting Different Materials & Methods in Design, Engineering, &
Manufacture

The Life Cycle of a Ship

Conception Stage: All activities necessary to develop and define a means for
meeting a stated requirement. For ships and equipment, this normally includes
research and development, design, contract specifications, identification of all
support necessary for introduction into service, and identification of funding
required and managerial structure for the acquisition.

Acquisition Stage: All activities necessary to acquire the ship and provide support
for the ship and equipment identified in the conception stage.

In-Service Stage: All activities necessary for operation, maintenance, support and
modification of the ship or equipment throughout its operational life. The inservice stage is normally the longest stage.

Disposal Stage: All activities necessary to remove the ship or equipment and its
supporting materials from service.

Basic Hierarchy of Life Cycle Costs

Basic Hierarchy of Acquisition (ESWBS) Costs

Defining the Hull Structure with

Options for Some Detailing of the
Structural Components

Sample List of
Structural Materials

A Selection of Ship Powering

Options

Additional Selection of Machinery Cooling

Components

Additional Selection of
Machinery Emissions
Reduction Components

Sample Cost Model Listing of Auxiliary

Piping Systems

Clear Summary of Lead Ship Should Costs

Estimating Costs for a Multi-Ship Construction Program

with Learning Curves & Apportioned Non-Recurring Costs

Estimating Multi-Ship Production Schedule Quickly & Easily

Lead Ship Construction & Delivery

Non-Recurring Design, Engineering & Detail Planning

All Material Costs are Linked to Commodity-Based

Escalation Tables to Synchronize Material Costs to the Year
for the Estimate

Basic Operating Data for Developing Life Cycle Cost

The cost model uses a unique method for estimating

maintenance, repairs, & modernization costs.
Data entries define each of these cost segments for the
primary ship systems (structure, propulsion, electric
generation, electrical systems, electronics, auxiliary systems,
outfit systems, and coatings.
For each of the system categories the estimate is broken down
into basic stages: regular maintenance and major refit cycles.
Where estimated costs are not known directly, the estimator
can define these costs as a percentage of the original
construction cost provided by the design & construction
sections of the cost model.

Filling out
Maintenance
& Repair
Scenarios

Filling out Maintenance & Repair Cycle Scenarios

Sample Detail Estimate for Structural Maintenance (5 Year Cycle)

Sample Detail Estimate for Machinery Maintenance (200 Hour Cycle)

Sample Detail Estimate for HVAC (10 Year Cycle)

Sample Detail Estimate for Anti-Fouling Hull Bottom (10 Year Cycle)

Sample Commercial Dry Docking Charges

Filling out
Estimated
Casualty
Repairs
Scenarios

Filling out
Modernization
& Upgrade
Scenarios

The Cost Model estimates average hours per annum of lost

operations due to maintenance and repairs activities over the
life of the ship.
The Cost Model can be used to explore various design and
operational scenarios in order to minimize these costs.

Estimated Average Cost of Lost Operations Hours from

Maintenance & Repairs per Annum

Estimated Average Cost of Lost Operations Hours from

Maintenance & Repairs per Annum

User Caution
Users of a cost model are cautioned that it is intended to provide only an estimate of
cost information. There are limits to the capabilities of these calculations beyond
which results may not be accurate.
The data provided in the cost model is not a substitute for judgment, analysis and
sound estimating practice. The cost model is an aid in developing an informed
opinion of cost. If you are using the cost model as your sole cost authority for
contract bids, you are reading more into the cost model than what has been
intended.

SPAR ASSOCIATES, INC. MAKES NO WARRANTIES OF ANY KIND WITH REGARD TO

THIS MATERIAL, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF
MERCHANTIBILITY AND FITNESS FOR A PARTICULAR PURPOSE.
SPAR Associates, Inc. shall not be liable for errors contained herein or for incidental
or consequential damages in connection with the furnishings, performance or use of
this material.

Over 40 Years Serving the Shipbuilding &

Repair Industry