ICM · Research & Decision Studio · procurement-workbench · Model 1.1.0 · Illustrative inputs

Lifecycle procurement

Procurement workbench

Compare like-for-like lifecycle costs, replacement burdens and negotiation hurdles.

Model 1.1.0 · Illustrative inputs

Procurement / lifecycleIllustrative composition

An illustrative cycle around comparable offers. Scope, service and lifecycle assumptions govern the actual worked studies.

The interactive model requires JavaScript. This saved default illustration remains readable if the runtime is unavailable. Values are computed from the canonical model at build time; they describe fictional inputs, with full calculation precision.

ICM · Procurement workbench · Model 1.1.0 · Default illustrative record

Default illustrative result

Efficient equipment has the lowest supplied 10-year lifecycle present cost, 1,860.89 USDk. Acquisition price alone excludes replacement, operating exposure and residual credit. The next bid is 116.01 USDk more expensive on this common horizon.

Default result metrics
Metric	Value	Unit
Lowest lifecycle cost	Efficient equipment
Lifecycle present cost	1860.8896386488636	USDk
Equivalent annual cost	277.3274313695256	USDk/year
Gap to next bid	116.01190327396603	USDk

Lifecycle cost decomposition
Bid	Total PVUSDk	Equivalent annual costUSDk/year	AcquisitionUSDk PV	ReplacementsUSDk PV	EnergyUSDk PV	OpexUSDk PV	DowntimeUSDk PV	Residual creditUSDk PV
Efficient equipment	1860.8896386488636	277.3274313695256	920	0	588.9104279096315	174.4621163724775	251.62805246030405	74.11095809354947
Service partnership	1976.9015419228297	294.6166259972193	760	0	661.3917113446629	416.02504673436937	181.1721977714189	41.68741392762158
Standard equipment	2640.2974514733733	393.4821792012681	640	403.3085612051869	815.4144386441051	214.72260476612615	603.9073259047299	37.055479046774735

Negotiation savings hurdle
Alternative bid	Cost leader	Incremental fixed costUSDk PV	Required operating savingUSDk/year	Modelled operating savingUSDk/year	Lifecycle gapUSDk
Service partnership	Efficient equipment	-127.57645583407214	-19.012653982736794	-36.30184861043052	116.01190327396603
Standard equipment	Efficient equipment	160.36404025196157	23.89897092414705	-92.25577690759546	779.4078128245096

Energy and downtime stress ranking
Stress case	Rank	Bid	Total present costUSDk	Equivalent annual costUSDk/year
Energy +50%	1	Efficient equipment	2155.3448526036796	321.20994134939974
Energy +50%	2	Service partnership	2307.597397595161	343.9000602823087
Energy +50%	3	Standard equipment	3048.004670795426	454.24257763494
Downtime +50%	1	Efficient equipment	1986.7036648790156	296.0774313695255
Downtime +50%	2	Service partnership	2067.4876408085393	308.1166259972193
Downtime +50%	3	Standard equipment	2942.251114425738	438.482179201268
Combined +50%	1	Efficient equipment	2281.1588788338313	339.9599413493997
Combined +50%	2	Service partnership	2398.183496480871	357.40006028230874
Combined +50%	3	Standard equipment	3349.9583337477907	499.24257763493995

Annual lifecycle cash-cost ledger
Bid	Year	EnergyUSDk	OpexUSDk	DowntimeUSDk	ReplacementUSDk	Residual creditUSDk	Net annual costUSDk	Present costUSDk
Standard equipment	1	108	32	90	0	0	230	212.96296296296293
Standard equipment	2	111.24000000000001	32	90	0	0	233.24	199.96570644718793
Standard equipment	3	114.57719999999999	32	90	0	0	236.5772	187.80260885027687
Standard equipment	4	118.014516	32	90	0	0	240.01451600000001	176.417834364492
Standard equipment	5	121.55495148000001	32	90	0	0	243.55495148	165.75940753165898
Standard equipment	6	125.20160002440001	32	90	640	0	887.2016000244	559.0875012574695
Standard equipment	7	128.95764802513202	32	90	0	0	250.95764802513202	146.43137724023973
Standard equipment	8	132.82637746588597	32	90	0	0	254.82637746588597	137.67476269517363
Standard equipment	9	136.81116878986256	32	90	0	0	258.81116878986256	129.47001986921444
Standard equipment	10	140.91550385355845	32	90	0	80	182.91550385355845	84.72527025469722
Efficient equipment	1	78	26	37.5	0	0	141.5	131.0185185185185
Efficient equipment	2	80.34	26	37.5	0	0	143.84	123.3196159122085
Efficient equipment	3	82.75019999999999	26	37.5	0	0	146.2502	116.09812401564801
Efficient equipment	4	85.23270600000001	26	37.5	0	0	148.732706	109.32297899719816
Efficient equipment	5	87.78968718000002	26	37.5	0	0	151.28968718000002	102.9652189792008
Efficient equipment	6	90.4233777954	26	37.5	0	0	153.9233777954	96.99783755391435
Efficient equipment	7	93.13607912926201	26	37.5	0	0	156.63607912926201	91.39564772344396
Efficient equipment	8	95.93016150313987	26	37.5	0	0	159.43016150313986	86.13515551127121
Efficient equipment	9	98.80806634823408	26	37.5	0	0	162.3080663482341	81.1944425478084
Efficient equipment	10	101.7723083386811	26	37.5	0	160	5.272308338681114	2.4420988896516715
Service partnership	1	87.6	62	27	0	0	176.6	163.5185185185185
Service partnership	2	90.228	62	27	0	0	179.228	153.659122085048
Service partnership	3	92.93484	62	27	0	0	181.93484	144.425741756846
Service partnership	4	95.7228852	62	27	0	0	184.7228852	135.77683511669215
Service partnership	5	98.59457175600001	62	27	0	0	187.594571756	127.67371339187625
Service partnership	6	101.55240890868	62	27	0	0	190.55240890867998	120.08034042365962
Service partnership	7	104.59898117594041	62	27	0	0	193.59898117594042	112.96314604869588
Service partnership	8	107.73695061121862	62	27	0	0	196.73695061121862	106.29085284704338
Service partnership	9	110.96905912955519	62	27	0	0	199.9690591295552	100.03431528780963
Service partnership	10	114.29813090344184	62	27	0	90	113.29813090344186	52.47895644664038

Inputs behind this result

Current general assumptions
Assumption and unit	Exact supplied value
Common horizon (years)	10
Discount rate (% per year)	8
Annual energy-price escalation (%)	3

Supplier bids
Bid	Acquisition costUSDk	Service lifeyears	Annual operating costUSDk	Annual electricityMWh	Electricity priceUSDk/MWh	Annual downtimehours	Downtime lossUSDk/hour	Horizon residual valueUSDk
Standard equipment	640	6	32	900	0.12	60	1.5	80
Efficient equipment	920	12	26	650	0.12	25	1.5	160
Service partnership	760	10	62	730	0.12	18	1.5	90

Download exact default inputs and output

Transparent method

PV lifecycle cost includes acquisition at t = 0, replacements at each service-life multiple strictly before the horizon, annual opex, escalated energy and downtime, less supplied horizon residual.
Energy price in year 1 equals the input price, then compounds annually.
Equivalent annual cost divides lifecycle PV by the ordinary annuity present-value factor.
Savings hurdle divides incremental fixed lifecycle PV (acquisition, replacements and residual) by the annuity factor. Positive values require that much annual operating saving.
Bid totals are ordered by their computed lifecycle present value. A tie warning applies only to the same computed value, with a stable name ordering.
Equal computed costs use literal name order independent of browser language for consistent display; no economic superiority is implied by that order.

Limits

Constant real opex/downtime, identical replacement cost, no tax or stochastic failure model.
Supplied residual is credited at the common horizon regardless of asset age; user must support it.
Energy units are USDk/MWh, so 0.12 represents USD120/MWh.
Discounted costs use floating-point arithmetic. A computed tie can result from numerical precision and does not establish exact economic indifference or substantive procurement equivalence.
Numerical input precision: use zero or absolute values of at least 0.000000001. Smaller nonzero inputs are rejected explicitly.