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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 1:20-2:20PM. Objectives. Understand the Basic definitions for Value Engineering (OMB Cir 131)
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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 1:20-2:20PM NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management
Objectives • Understand the Basic definitions for Value Engineering (OMB Cir 131) 2. Understand DOD’s policies on Performance Based contracts 3. Understand the Efficient Utilization of Funds(EUF) model NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management
Definitions- OMB Cir-131 • Life-cycle cost • Cost savings • Cost avoidance • Value Engineering NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management
Policy and Guidance • Acquisition Reform ( FASA, FARA(Clinger-Cohen), • FAR 37.6 • DOD Goal PBSC • OMB Cir 131 NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management
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 NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management
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. NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management
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. NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management
Efficient Utilization of Funds(EUF) NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management
Summary • KO as Business Manager • Accurate Data is essential • Look beyond Acquisition Cost • Ensure result provides better quality, lowest cost, highest ROI NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management