ASTM_A_1068_-_10_2015.pdf

Designation:A106810(Reapproved 2015)Standard Practice forLife-Cycle Cost Analysis of Corrosion Protection Systemson Iron and Steel Products1This standard is issued under the fixed designation A1068;the number immediately following the designation indicates the year oforiginal adoption or,in the case of revision,the year of last revision.A number in parentheses indicates the year of last reapproval.Asuperscript epsilon()indicates an editorial change since the last revision or reapproval.1.Scope1.1 This practice covers a procedure for using life-cycle cost(LCC)analysis techniques to evaluate alternative corrosionprotection system designs that satisfy the same functionalrequirements.1.2 The LCC technique measures the present value of allrelevant costs of producing and rehabilitating alternative cor-rosion protection systems,such as surface preparation,application,construction,rehabilitation,or replacement,over aspecified period of time.1.3 Using the results of the LCC analysis,the decisionmaker can then identify the alternative(s)with the lowestestimated total cost based on the present value of all costs.1.4 This standard does not purport to address all of thesafety concerns,if any,associated with its use.It is theresponsibility of the user of this standard to establish appro-priate safety and health practices and determine the applica-bility of regulatory limitations prior to use.2.Referenced Documents2.1 ASTM Standards:2E917 Practice for Measuring Life-Cycle Costs of Buildingsand Building Systems2.2 Other Documents:TM-5-802-1 Economic Studies for Military ConstructionDesignApplications(12/86)Federal Office of Management and Budget Guidelines andDiscount Rates for Benefit-Cost Analysis of FederalPrograms and state documents for guidelines or require-ments.3.Terminology3.1 Definitions:3.1.1 common costs,ncosts common to all alternatives innature and amounts such as initial planning fees or futureannual inspection costs.3.1.2 discount rate,nthe investors time value of money,expressed as a percent,used to convert the costs occurring atdifferent times to equivalent costs at a common point in time.3.1.3 corrosion protection project,na project having adefinable,functional corrosion protection requirement that canbe satisfied by two or more systems.3.1.4 future costs,ncosts required to keep the systemoperating that are incurred after the project is placed in service,such as surface preparation,maintenance,rehabilitation,orreplacement costs.3.1.5 inflation,nthe general trend or rising prices thatresult in reduction of the purchasing power of the dollar fromyear to year over time.3.1.6 initial cost,nthe total of all costs,such as surfacepreparation,material purchase costs,and construction andinstallation costs,that are specific to each alternative and areincurred to bring each alternative to a point of functionalreadiness.3.1.7 material service life,nthe number of years ofservice that a particular material,system,or structure willprovide before rehabilitation or replacement is necessary.3.1.8 project design life,nthe planning horizon for theproject,expressed as the number of years of useful life requiredof the iron and steel product.3.1.9 rehabilitation cost,nthe total of all costs incurred toextend the material service life of a specific alternative.4.Summary of Practice4.1 This practice outlines a procedure for conducting anLCC analysis of two or more corrosion protection alternativesover a specified project design life.It identifies the project dataand general assumptions necessary for the analysis and themethod of computation.1This practice is under the jurisdiction of ASTM Committee A05 on Metallic-Coated Iron and Steel Products and is the direct responsibility of SubcommitteeA05.13 on Structural Shapes and Hardware Specifications.Current edition approved May 1,2015.Published May 2015.Originallyapproved in 2010.Last previous edition approved as A1068-10.DOI:10.1520/A1068-10R15.2For referenced ASTM standards,visit the ASTM website,www.astm.org,orcontact ASTM Customer Service at serviceastm.org.For Annual Book of ASTMStandards volume information,refer to the standards Document Summary page onthe ASTM website.Copyright ASTM International,100 Barr Harbor Drive,PO Box C700,West Conshohocken,PA 19428-2959.United States1 5.Significance and Use5.1 LCC analysis is an economic method for evaluatingalternatives that are characterized by differing cash flows overthe designated project design life.The method entails calcu-lating the LCC of each alternate capable of satisfying thefunctional requirement of the project and comparing them todetermine which has(have)the lowest estimated LCC over theproject design life.5.2 The LCC method is particularly suitable for determiningwhether the higher initial cost of an alternative is economicallyjustified by reductions in future costs(for example,rehabilitation,or replacement)when compared to an alterna-tive with lower initial costs but higher future costs.If a designalternative has bot