W1.6 Life Cycle Technology Assessment Cycle...products, services, construction, and other projects to Life Cycle Assessment (LCA) ... Upgrades 5 @ $1k 1 @ $2k 1 @ $2k Year 7 Replacement

Slide 1

112/16/042/16/04

W1.6 W1.6

Life Cycle Life Cycle Technology AssessmentTechnology Assessment

Wednesday, March 10 8:00 Wednesday, March 10 8:00 -- 9:15 a.m.9:15 a.m.

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222/16/042/16/04

Technology Roadmap forTechnology Roadmap forIntelligent BuildingsIntelligent Buildings

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LQVWLWXWLRQDO� FRPPHUFLDO DQGKLJK�ULVH UHVLGHQWLDO

ZZZ�FDED�RUJ�WUPZZZ�FDED�RUJ�WUP

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332/16/042/16/04

Intelligent & Integrated Buildings CouncilIntelligent & Integrated Buildings Council

20022002

¾¾ Protocols white paperProtocols white paper

¾¾ Middleware white paperMiddleware white paper

¾¾ BestBest--practices Guide for Intelligent practices Guide for Intelligent Buildings technologiesBuildings technologies

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442/16/042/16/04

Criteria For Each Project Criteria For Each Project PhasePhase

Planning

Planning

Definition

Definition

Implementation

Implementation

Commissioning

Commissioning

Operating

Operating

Evaluation

EvaluationSubsystem operationSubsystem operationwithout a networkwithout a network

FeaturesFeatures

PerformancePerformance

OperOper. environment. environment

Failure / EmergencyFailure / Emergency

MaintenanceMaintenance

➾➾ ➾➾ ➾➾

➾➾➾➾ ➾➾

➾➾

➾➾

➾➾

➾➾

➾➾ ➾➾

➾➾➾➾

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552/16/042/16/04

Intelligent & Integrated Buildings CouncilIntelligent & Integrated Buildings Council

2003/20042003/2004

¾¾ Intelligent Building Rating SystemIntelligent Building Rating System

¾¾ Middleware white paperMiddleware white paper

¾¾LifeLife--Cycle Costs Analysis ToolCycle Costs Analysis Tool

¾¾ BestBest--practices Guide for Intelligent practices Guide for Intelligent Buildings technologiesBuildings technologies

¾¾Demo ProjectDemo Project

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662/16/042/16/04

Intelligent Building Rating SystemIntelligent Building Rating System

-- an evaluation and assessment protocol an evaluation and assessment protocol and a guide for integrating intelligent and a guide for integrating intelligent building technologies. The aim is to building technologies. The aim is to increase market penetrability of intelligent increase market penetrability of intelligent building technology with building owners building technology with building owners and designers and the real estate industry and designers and the real estate industry by demonstrating value and providing by demonstrating value and providing guidance.guidance.

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772/16/042/16/04

Middleware White PaperMiddleware White Paper

-- investigates the use and benefits of investigates the use and benefits of ‘Middleware’ to the building industry. The ‘Middleware’ to the building industry. The white paper starts with a ‘definition of white paper starts with a ‘definition of middleware’ which has been distilled from middleware’ which has been distilled from various definitions within the building various definitions within the building industry. This is followed by a ‘middleware industry. This is followed by a ‘middleware value statement’, which the white paper will value statement’, which the white paper will go on to develop and show how this relates go on to develop and show how this relates to the building industry. to the building industry.

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882/16/042/16/04

BestBest--practices Guide for Intelligent practices Guide for Intelligent

Buildings Technologies Buildings Technologies –– Phase IIPhase II

-- proposes a method of utilizing the Bestproposes a method of utilizing the Best--Practices Guide. Practices Guide. The key to a practical The key to a practical guide is one that minimizes qualitative guide is one that minimizes qualitative assessments in favor of a factual assessments in favor of a factual evaluation. Building owners, managers, and evaluation. Building owners, managers, and designers establish goals for the building designers establish goals for the building environment and performance. Our environment and performance. Our objective is to translate these goals into objective is to translate these goals into selections of appropriate building selections of appropriate building automation technologies during the automation technologies during the process of designing an intelligent building.process of designing an intelligent building.

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992/16/042/16/04

Demo ProjectDemo Project

--document measurable benefits from document measurable benefits from intelligent building technologies intelligent building technologies implementations.implementations.

--Identify a building where “real” Identify a building where “real” measurements can be documented measurements can be documented –– where where the Technology Roadmap can be the Technology Roadmap can be ““evergreenedevergreened”.”.

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10102/16/042/16/04

LifeLife--Cycle Costs Analysis ToolCycle Costs Analysis Tool

-- develop a white paper on the “Life Cycle develop a white paper on the “Life Cycle Costs of Integrated Costs of Integrated -- Open Standards Open Standards Based Building Technologies” as compared Based Building Technologies” as compared to traditional standto traditional stand--alone closed system alone closed system buildings. A parametric model will be buildings. A parametric model will be created for both new and renovated created for both new and renovated buildings. The goal is to analyze the buildings. The goal is to analyze the individual operating and maintenance costs individual operating and maintenance costs and develop supporting documentation for and develop supporting documentation for each cost to lend credibility to final net each cost to lend credibility to final net present value (NPV) comparisons.present value (NPV) comparisons.

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11112/16/042/16/04

Continental Automated Continental Automated Buildings AssociationBuildings Association

1200 Montreal Road, Building M-20Ottawa, ON K1A 0R6

613.990.7407888.798.CABA (2222)-No. America

001.888.514.2222-Mexico613.991.9990

[email protected]

www.caba.org/samples

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2/16/042/16/04 1212

W1.6: Life Cycle W1.6: Life Cycle Technology AssessmentTechnology Assessment

Wednesday, March 10 8:00 Wednesday, March 10 8:00 -- 9:15 a.m.9:15 a.m.

Thomas M. Keel, M.B.AThomas M. Keel, M.B.A..Representing CABARepresenting CABA

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13132/16/042/16/04

Discussion TopicsDiscussion Topics

IntroductionIntroduction

Snapshot Snapshot -- TodayToday

Trends and InitiativesTrends and Initiatives

Major ChallengeMajor Challenge

Major DriverMajor Driver

Tomorrow…?Tomorrow…?

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14142/16/042/16/04

Introduction Introduction –– CABA IIBCCABA IIBC

Continental Automated Buildings Continental Automated Buildings Association (CABA), Intelligent & Association (CABA), Intelligent & Integrated Buildings Council (IIBC) will Integrated Buildings Council (IIBC) will specifically review opportunities, specifically review opportunities, strategize, take action and monitor strategize, take action and monitor initiatives that relate to integrated systems initiatives that relate to integrated systems and automation in the "large building" and automation in the "large building" sector. sector.

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15152/16/042/16/04

Introduction Introduction –– Task Force 3Task Force 3

CABA Task Force 3 CABA Task Force 3 –– The Life Cycle Costs of Intelligent The Life Cycle Costs of Intelligent and Integrated Buildingsand Integrated BuildingsThe charge: Task Force 3 (TF3) will develop a white The charge: Task Force 3 (TF3) will develop a white paper on the “Life Cycle Costs of Integrated paper on the “Life Cycle Costs of Integrated -- Open Open Standards Based Building Technologies” as compared to Standards Based Building Technologies” as compared to traditional standtraditional stand--alone closed system buildings. alone closed system buildings. The task: to analyze BASThe task: to analyze BAS--related costs related costs The goal: to develop verifiable documentation for LCC The goal: to develop verifiable documentation for LCC (time(time--valuevalue--ofof--money) comparisons.money) comparisons.

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16162/16/042/16/04

IntroductionIntroduction––LCC DefinitionLCC Definition

Section 707 of Executive Order 13123 Section 707 of Executive Order 13123 defines lifedefines life--cycle costs as “…the sum of cycle costs as “…the sum of present values of investment costs, capital present values of investment costs, capital costs, installation costs, energy costs, costs, installation costs, energy costs, operating costs, maintenance costs, and operating costs, maintenance costs, and disposal costs over the lifedisposal costs over the life--time of the time of the project, product, or measure.” project, product, or measure.”

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17172/16/042/16/04

IntroductionIntroduction––LCC DefinitionLCC Definition

Life Cycle Costing is a process to determine the sum of Life Cycle Costing is a process to determine the sum of all the costs associated with an asset or part thereof, all the costs associated with an asset or part thereof, including acquisition, installation, operation, including acquisition, installation, operation, maintenance, refurbishment [replacement, upgrade] and maintenance, refurbishment [replacement, upgrade] and disposal costs. It is therefore pivotal to the asset disposal costs. It is therefore pivotal to the asset management process. Life Cycle Costing incorporates management process. Life Cycle Costing incorporates both Life Cost Planning which occurs during both Life Cost Planning which occurs during development and implementation of that plan by Life development and implementation of that plan by Life Cost Analysis as the asset is used or occupied. Life Cost Analysis as the asset is used or occupied. Life Cycle Costing forms an input to evaluation processes Cycle Costing forms an input to evaluation processes such as Value Management, Economic Appraisal and such as Value Management, Economic Appraisal and Financial Appraisal. Financial Appraisal.

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18182/16/042/16/04

SnapshotSnapshot––LCC DefinitionLCC Definition

According to Dell’Isola and Kirk, “…LCC is According to Dell’Isola and Kirk, “…LCC is an economic assessment of an item, area, an economic assessment of an item, area, system, or facility that considers all the system, or facility that considers all the significant costs of ownership over its significant costs of ownership over its economic life, expressed in terms of economic life, expressed in terms of equivalent dollars. LLC is a technique that equivalent dollars. LLC is a technique that satisfies the requirements of owners for satisfies the requirements of owners for adequate analysis of total costs.” adequate analysis of total costs.”

Dell’Isola, A. and S. Kirk, Dell’Isola, A. and S. Kirk, Life Cycle Costing for FacilitiesLife Cycle Costing for Facilities, Reed Construction Data (page 12), Reed Construction Data (page 12)

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19192/16/042/16/04

Introduction Introduction -- LCCALCCA

The life cycle costing analysis (LCCA) method is mandated by TitThe life cycle costing analysis (LCCA) method is mandated by Title le 10, Code of Federal Regulations 10, Code of Federal Regulations 10 CFR Sec. 436.12 Life cycle cost methodology states:10 CFR Sec. 436.12 Life cycle cost methodology states:�� “The life cycle cost methodology for this part is a systemat“The life cycle cost methodology for this part is a systematic ic

analysis of relevant costs, excluding sunk costs, over a study analysis of relevant costs, excluding sunk costs, over a study period, relating initial costs to future costs by the technique period, relating initial costs to future costs by the technique of of discounting future costs to present values”.discounting future costs to present values”.

Guidance on LifeGuidance on Life--Cycle Cost Analysis Required by Executive Order Cycle Cost Analysis Required by Executive Order 13123 April 26, 2000 Section 401 requires that “Agencies shall u13123 April 26, 2000 Section 401 requires that “Agencies shall use se lifelife--cycle cost analysis in making decisions about investments in cycle cost analysis in making decisions about investments in products, services, construction, and other projects to Life Cycproducts, services, construction, and other projects to Life Cycle le Assessment (LCA)Assessment (LCA)

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20202/16/042/16/04

Introduction Introduction –– LCC HistoryLCC History

1930, Eugene L. Grant, 1930, Eugene L. Grant, Principles of Engineering EconomyPrinciples of Engineering Economy..1933, Comptroller General of the United States, tractor acquisit1933, Comptroller General of the United States, tractor acquisition by predicted total cost after 8,000 ion by predicted total cost after 8,000 hours of operation, General Accounting Office (GAO).hours of operation, General Accounting Office (GAO).1940 1940 --1950, Lawrence D. Miles, concept of value engineering at the Gen1950, Lawrence D. Miles, concept of value engineering at the General Electric Company.eral Electric Company.1952, AT&T, 1952, AT&T, Engineering EconomyEngineering Economy..1950 1950 –– 1960, P.A. Stone, in England at the Building Research Station.1960, P.A. Stone, in England at the Building Research Station.1965, Assistant Secretary of Defense published an influential re1965, Assistant Secretary of Defense published an influential report analyzing DoD contracts.port analyzing DoD contracts.1971, DoD Directive 5000.1 mandates LCC procurement for major sy1971, DoD Directive 5000.1 mandates LCC procurement for major systems.stems.1972, Comptroller General of the United States issued an exhaust1972, Comptroller General of the United States issued an exhaustive and devastating report on the life ive and devastating report on the life cycle costs for U.S. hospital facilities.cycle costs for U.S. hospital facilities.1972, Alphonse J. Dell’Isola, 1972, Alphonse J. Dell’Isola, Value Engineering in the Construction IndustryValue Engineering in the Construction Industry..1973, DoD, 1973, DoD, Life Cycle Costing Guide for System Acquisition.Life Cycle Costing Guide for System Acquisition.1974, Florida and 1975, Alaska became the first states to requir1974, Florida and 1975, Alaska became the first states to require LCCe LCC1975, Energy Policy and Conservation Act and the Energy Conserva1975, Energy Policy and Conservation Act and the Energy Conservation Act influenced procurement tion Act influenced procurement practices.practices.1975, ASHRAE Standard 901975, ASHRAE Standard 90--71711979, Building Energy Performance Standards (BEPS) 1979, Building Energy Performance Standards (BEPS) National Institute of Standards and Technology (NIST), NIST HandNational Institute of Standards and Technology (NIST), NIST Handbook 135 book 135 –– Life Cycle Costing Manual Life Cycle Costing Manual for Federal Energy Management Program. for Federal Energy Management Program. 1981, Alphonse J. Dell’Isola and Dr. Stephen J. Kirk, 1981, Alphonse J. Dell’Isola and Dr. Stephen J. Kirk, Life Cycle Costing for Design Professionals.Life Cycle Costing for Design Professionals.1999, ASHRAE Handbook HVAC Applications, Chapter 35: “Owning and1999, ASHRAE Handbook HVAC Applications, Chapter 35: “Owning and Operating Costs”.Operating Costs”.

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21212/16/042/16/04

IntroductionIntroduction

Why promote life cycle costing?Why promote life cycle costing?

�� "the bottom line is the bottom line"."the bottom line is the bottom line".

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22222/16/042/16/04

Introduction Introduction –– Why this Why this ResearchResearch

Do owners buy technology? Do owners buy technology? They buy solutions to their problems.They buy solutions to their problems.They buy solutions that improve their bottom line.They buy solutions that improve their bottom line.Life cycle costing research will substantiate that LCCLife cycle costing research will substantiate that LCC--based construction is the lowest overall cost of based construction is the lowest overall cost of construction.construction.The perception that integrated systems have a greater The perception that integrated systems have a greater first cost is a big hurdle.first cost is a big hurdle.

“Smart buildings are generally more expensive to build than conv“Smart buildings are generally more expensive to build than conventionally entionally designed buildings. However, the added value of smart building idesigned buildings. However, the added value of smart building infrastructure nfrastructure results in much lower liferesults in much lower life--cycle costs…". cycle costs…". Design Brief for Smart BuildingsDesign Brief for Smart Buildings, , sponsored in part by BOMA, (data from the 1990s).sponsored in part by BOMA, (data from the 1990s).

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23232/16/042/16/04

Introduction Introduction -- StrategyStrategy

To develop verifiable documentation for LCC (timeTo develop verifiable documentation for LCC (time--valuevalue--ofof--money) comparisonsmoney) comparisonsTo convince owners and developers to employ LCC To convince owners and developers to employ LCC methodology when buying building automation.methodology when buying building automation.The industry must continue moving from designThe industry must continue moving from design--bidbid--build build (D(D--BB--B) to designB) to design--build (Dbuild (D--B).B).LCC DLCC D--B produces the greatest value for the owner. B produces the greatest value for the owner. A result of DA result of D--B will be more buildings with integrated B will be more buildings with integrated systems. systems.

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24242/16/042/16/04

Introduction Introduction –– Why DWhy D--BB

DesignDesign--build uses a systems integrator (SI), rather than build uses a systems integrator (SI), rather than multiple installation contractors.multiple installation contractors.Building owners will receive a better product when the Building owners will receive a better product when the incorporate these methods.incorporate these methods.We are realists knowing that hardWe are realists knowing that hard--savings motivate, but savings motivate, but owners can get a greater benefit from the softowners can get a greater benefit from the soft--savings savings over time.over time.Advanced technologies produce greater efficienciesAdvanced technologies produce greater efficiencies�� (Also, advanced technologies are "cool“).(Also, advanced technologies are "cool“).

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_25252/16/042/16/04

Snapshot Snapshot -- BAS MarketBAS Market

North American BCS [building control systems] North American BCS [building control systems] installation markets were just under $1 billion in 2002. installation markets were just under $1 billion in 2002. Installation markets include: application engineering, Installation markets include: application engineering, system installation, system start up and calibration, and system installation, system start up and calibration, and customer oncustomer on--site training.site training.Almost 10% of U.S. nonresidential buildings have Almost 10% of U.S. nonresidential buildings have automated energy management. automated energy management. �� Over 500,000 ft2 = 70% + Over 500,000 ft2 = 70% + �� 200200--500,000 ft2 = 55%500,000 ft2 = 55%�� 100100--200,000 ft2 = 50% 200,000 ft2 = 50%

Source: Ron Caffrey and Terry McMahon, BCS Partners, Leonia, NJSource: Ron Caffrey and Terry McMahon, BCS Partners, Leonia, NJ

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26262/16/042/16/04

Snapshot Snapshot –– BAS ForecastBAS Forecast

By 2007, the North American building controls By 2007, the North American building controls market could approach $4 billion (worldwide market could approach $4 billion (worldwide almost $13 billion). almost $13 billion). Adding fire alarm, intrusion detection, and Adding fire alarm, intrusion detection, and access control brings the worldwide market for access control brings the worldwide market for indoor environment regulation and security to indoor environment regulation and security to nearly $22 billion for nonresidential buildings. nearly $22 billion for nonresidential buildings.

Source: Ron Caffrey and Terry McMahon, BCS Partners, Leonia, NJSource: Ron Caffrey and Terry McMahon, BCS Partners, Leonia, NJ

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2/16/042/16/04 2727

Analyzing the Life Cycle Analyzing the Life Cycle Cost of Integrated Cost of Integrated Building SystemsBuilding Systems

Produced by: Thomas J. Lohner, P.E.Produced by: Thomas J. Lohner, P.E.Vice President, TENG SolutionsVice President, TENG Solutions

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2/16/042/16/04 2828

Systems Integration Systems Integration --Comparative Life Cycle Comparative Life Cycle

Cost Cost You Can Not Afford You Can Not Afford NotNot to do it Rightto do it Right

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Facility Integration Facility Integration Life Cycle CostsLife Cycle Costs

First CostFirst Cost

Changes, Additions & UpgradesChanges, Additions & Upgrades

Operating & Maintenance Operating & Maintenance

Utility CostsUtility Costs

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Life Cycle Cost Life Cycle Cost Analysis AssumptionsAnalysis Assumptions

150,000 SF Building150,000 SF Building

Major M & E Equipment Cost Major M & E Equipment Cost -- $6.00/SF ($18.00/SF TOTAL)$6.00/SF ($18.00/SF TOTAL)

Proprietary Systems Life Cycle Proprietary Systems Life Cycle -- 7 years (FAR)7 years (FAR)

�� Replacement Cost = 125% of the Initial System CostReplacement Cost = 125% of the Initial System Cost

�� 50% of the Proprietary Systems are Replaced (Next Generation)50% of the Proprietary Systems are Replaced (Next Generation)

�� 20% of the Open Systems are Replaced (Age & Obsolescence)20% of the Open Systems are Replaced (Age & Obsolescence)

Average Cost per Control Device Average Cost per Control Device -- $400$400

Open and Proprietary Control Devices Base Bid Costs are the SameOpen and Proprietary Control Devices Base Bid Costs are the Same

Training Costs Training Costs -- $3000/ GUI; $1500/ Protocol; 50% of 1st year cost for $3000/ GUI; $1500/ Protocol; 50% of 1st year cost for years 2 and up years 2 and up

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Life Cycle Cost Life Cycle Cost Analysis AssumptionsAnalysis Assumptions

Dynam ic

Con tro l S ub -

system s

In itia l

Co st

($ /S F)

Base Year

Serv ice

Co ntrac t

($)

Base Year

Ann ua l

Chan ges &

Mo difica ton s

(% of 1s t Co st)HV AC Contro ls $1 .5/S F 15,000 2%

Lighting Controls $1 .0/S F 10,000 3%Power Monito ring $0 .5/S F 5,000 1%

Intrus ion D e tection $0 .3/S F 3,000 2%

T o ta l $3 .3/S F 33,000$ $39 ,000

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Comparative First CostsComparative First Costs

System Component

Non-

In tegrated

Bu ild ing

Partia l

In tegration

Fu ll

In tegrationG raphical User Interface -

Hardware & Sof tware 5 @ $15K 1 @ $20k 1 @ $20k

Equipment Networking Uprades 0 4 @ $2k 4 @ $2k

W eb Servers 0 5 @ $10k 3 @ $10k

Control Device Reduc tion (5%) 0 0 -24750

T OT AL $75,000 $78,000 $33,000

Full In tegration S av ing s $42 ,000 $45 ,000

1R $F1R $FFFRXQRXQW )W )RU 'LYLVLRU 'LYLVLRRQ �Q �� 6DYLQJV� 6DYLQJV �� WR �� WR ��

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Changes, Additions and Changes, Additions and Upgrades IssuesUpgrades Issues

Cost Premium Paid for Additions & Cost Premium Paid for Additions & Changes to Proprietary Controls Changes to Proprietary Controls

Limit Scope of Future Improvements and Limit Scope of Future Improvements and ModificationsModifications

Cost Premium for Non Competitive Cost Premium for Non Competitive Service ContractsService Contracts

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Changes, Additions and Upgrades Changes, Additions and Upgrades (Annual Costs(Annual Costs-- 2nd Year & On )2nd Year & On )

O & M C ost Issues

N on

C ompetitive

Cost

Premium

Non-

Integrate d

B uild ing

P artial

In tegration

Full

Integration

Service Contrac ts 25% 41,250$ 41,250$ 33,000$

Future Additons &

Rem odeling 25% 49,500$ 49,500$ 39,600$

Future Software

Upgrades 5 @ $1k 1 @ $2k 1 @ $2k

Year 7 Replacem ent

Cos t Reserve ( 9% AP R) 33,629$ 33,629$ 13,452$

To ta l 129,379$ 126 ,379$ 88,052$

Fu ll In te gra tio n S a vin gs 41,327$ 38,327$

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Operating and Maintenance Operating and Maintenance (Annual Costs(Annual Costs-- 2nd Year & On )2nd Year & On )

System Component

Non-

Inte grated

Building

Partial

Integration

Full

In tegration

Training 11,250$ 5,250$ 3,750$

Improved O & M Staff Effic iency 0 S OFT S OFT

IT S upport 5 @ $2k 1 @ $3k 1 @ $3k

M anagem ent Reporting 0 (3 @ $1k) (3 @ $1k)

Tota l 21,250 5,250$ 3,750$

Full Inte gra tion S a vings $17,500 1,500$

Com puterized M aintenace M anagem ent 25,000$ F irst Cost

(Ex tend M ajor M & E Equipm ent Life; 25yrs vs 20y rs)

Future W orth ($ @ Yr 20) 180,000$

Present W orth (P/F @ 9% ) 32,112$

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Typical Energy Use ProfileTypical Energy Use Profile

L igh tin g

HV A C

Po w er

Other

HVACHVAC

30% Ave Annual Energy 30% Ave Annual Energy UseUse

$0.4 / SF / YR$0.4 / SF / YR

$60,000 / YR$60,000 / YR

LightingLighting


$0.53 / SF / YR$0.53 / SF / YR

$80000 / YR$80000 / YR

PowerPower


$0.33 / SF / YR$0.33 / SF / YR

$50,000 / YR$50,000 / YR

Other (Elevators, etc.)Other (Elevators, etc.)


$0.07 / SF / YR$0.07 / SF / YR

$10,000 / YR$10,000 / YR

TOTALTOTAL

$1.33 / SF / YR$1.33 / SF / YR

$200,000 / YR$200,000 / YR

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Energy Costs Energy Costs (Potential Annual Cost Savings)(Potential Annual Cost Savings)

System C omponentSaving s Factor

Energy C ost ($ )

Non-Integ rated B uild ing

Partia l Integration

Fu ll Integration

Integrated Lighting & HVAC Control 5% $60,000 0 0 $3,000

Improved Load Factor ( .5 to .55) 5% $200,000 0 $10,000 $10,000

Better Maintained Equipm ent 1% $60,000 0 $600 $600

Coordinated Supply/Demand EMS Stra tegies 5% $200,000 0 $10,000 $10,000

In tegrate d Building Co ntrol Syste m

Sav ings $0 $20,600 $23,600

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System Integration System Integration Life Cycle Cost SummaryLife Cycle Cost Summary

Life C ycle Co st C ompo nent

N on-

Inte grated

Bu ilding

Par tial

Inte g ratio n

F ull

Inte grat ion

Com paritive F irs t Cos t $75,000 $78,000 $33,000

Changes , Upgrades & A dditions $129,379 $126,379 $88,052

Operating & M aintenanc e $21,250 $5,250 $3,750

Util ity Cos t $200,000 $179,400 $179,400

Ne t P re se nt V a lu e $2,325,232 $2,074,091 $1,773,493

D is c ount Rate 9%

Life Cy c le Period (y rs ) 10

S a vin gs $551,739 $300,598

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Therefore:Therefore:

Full Integration Full Integration willwill Result in the Lowest Result in the Lowest Net Present ValueNet Present Value

The Value of the Integrated Approach The Value of the Integrated Approach willwillIncrease w/ IT AdvancesIncrease w/ IT Advances

Information Information willwill be your Competitive be your Competitive AdvantageAdvantage

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Trends and InitiativesTrends and InitiativesThe Building Controls industry has made great strides in the The Building Controls industry has made great strides in the creation of communications standards. Both BACnet and creation of communications standards. Both BACnet and LonTalk are now viable, commercially accepted solutions that LonTalk are now viable, commercially accepted solutions that provide owners with open communications. provide owners with open communications.

The ever lowering cost of Ethernet / TCP/IP / XML communicationsThe ever lowering cost of Ethernet / TCP/IP / XML communicationsis finding its way into our industry. is finding its way into our industry. BACnet has worldwide support and is maintained by a professionalBACnet has worldwide support and is maintained by a professionalsociety under rules that provide open access and cannot be society under rules that provide open access and cannot be dominated by companies with particular commercial interests. dominated by companies with particular commercial interests. LonTalkLonTalk®®.. Certification program is limited to devices that contain a Certification program is limited to devices that contain a defined interface. Both software and hardware are the enddefined interface. Both software and hardware are the end--certified certified products. Only LonMarkproducts. Only LonMark®® Partner and Sponsor Members can have Partner and Sponsor Members can have products certified.products certified.XML: The mission of the CABA XML/Web Services Guideline XML: The mission of the CABA XML/Web Services Guideline Committee is to work cooperatively in an open environment to Committee is to work cooperatively in an open environment to create a noncreate a non--binding guideline for the use of Internet binding guideline for the use of Internet communications standards such as XML and Web Services for use communications standards such as XML and Web Services for use in broad facility management. in broad facility management.

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Trends and InitiativesTrends and Initiatives

�� www.ctrlspecbuilder.comwww.ctrlspecbuilder.com © 2003 Automated © 2003 Automated Logic Corporation 1150 Roberts Blvd., Logic Corporation 1150 Roberts Blvd., Kennesaw, Georgia, 30144 USA Kennesaw, Georgia, 30144 USA

The document, a Microsoft® Word file, is based The document, a Microsoft® Word file, is based on ASHRAE Guideline 13on ASHRAE Guideline 13--2000: Specifying 2000: Specifying Direct Digital Control Systems and follows the Direct Digital Control Systems and follows the Construction Specifications Institute (CSI) Construction Specifications Institute (CSI) MasterFormatMasterFormat——Division 15 Mechanical, Section Division 15 Mechanical, Section 15900 HVAC Instrumentation and Controls to 15900 HVAC Instrumentation and Controls to create an open, noncreate an open, non--proprietary specification for proprietary specification for building automation systems. building automation systems.

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Major ChallengesMajor Challenges

�� Locating the data sourcesLocating the data sources

The need for relevant quality dataThe need for relevant quality data�� It is costly and timeIt is costly and time--consuming to collect.consuming to collect.

Verifying the validity of the dataVerifying the validity of the data

Sorting out designSorting out design--bidbid--build projects from build projects from designdesign--buildbuild

Not measuring LCC and VE that resulted in:Not measuring LCC and VE that resulted in:�� Cheaper componentsCheaper components

�� Reduced functionalityReduced functionality

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Major DriverMajor Driver

Sustainability (EPA, DOE, NIST)Sustainability (EPA, DOE, NIST)�� ASHRAE 90.1, 90.2, 62, 62.2, 55 ASHRAE 90.1, 90.2, 62, 62.2, 55 (ASHRAE.org)(ASHRAE.org)

�� LEED LEED (U. S. Green Building Council, usgbc.org)(U. S. Green Building Council, usgbc.org)

�� ANSI/MSE 2000, ANSI/MSE 2000, GA Tech Economic Development InstituteGA Tech Economic Development Institute

�� ISO 1400 ISO 1400 (iso.ch)(iso.ch)

�� BEPACBEPAC

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Tomorrow…Tomorrow…

LCC of Emerging Technologies IssuesLCC of Emerging Technologies Issues

LCC of Advanced Technologies IssuesLCC of Advanced Technologies Issues

LCC of Internet TechnologyLCC of Internet Technology

LCC of Wireless TechnologyLCC of Wireless Technology

LCC of GPS TechnologyLCC of GPS Technology

LCC of Artificial Intelligence TechnologyLCC of Artificial Intelligence Technology

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Documents

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