1294. An Analysis in Life Cycle Cost for Grumman Flxible Transit Buses
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Paper
Abstract
In today’s cost conscious and highly competitive transit bus market, Initial low-bid procurement based on production costs may become a thing of the past. Because many municipalities across the country are federally subsidized for the procurement costs of mass transit buses, the Urban Mass Transportation Administration (UMTA) is considering the possibility of procuring future buses on the basis is of Life Cycle Cost. This will enable them to include in their valuation the cost to operate and maintain the bus, which represents approximately 60% of the total ownership costs. In answer to solicitations from UMTA for data to be used interesting the feasibility of applying LCC analysis in the procurement of mass transit buses, Grumman inducted LCC comparative analysis between two different models of Flexible buses. This paper describes briefly some of the initial step taken in the LCC analysis, the rationale used in formulating the methodology f o r analyzing the compiled data in conjunction with controlled maintenance demonstration tests of the two different model transit buses. The paper concludes that procurement of mass transit buses on the basis of Life Cycle Cost can be effectively utilized.