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Analysis of Fleet Replacement Lifecycle

Analysis of Fleet Replacement Lifecycle Project #12-14 Prepared by Office of the Inspector General J. Timothy Beirnes, CPA, Inspector General Office of Inspector General Page i Analysis of Fleet Replacement Lifecycle TABLE OF CONTENTS BACKGROUND .. 1 OBJECTIVE, SCOPE, AND METHODOLOGY .. 2 EXECUTIVE SUMMARY .. 2 TRENDS IN VEHICLE USEFUL life .. 4 Replacement CYCLE METHODS .. 6 Replace at Established Intervals .. 6 Replace When Repairing Exceeds Value .. 6 Lifecycle Costing .. 7 Depreciation .. 8 cost of Money .. 10 Insurance .. 11 Fuel .. 11 Maintenance and Repairs .. 12 Other Replacement Considerations .. 13 Obsolescence Costs .. 13 Downtime Costs .. 13 Market Conditions .. 14 Other Factors .. 14 Applying Lifecycle Costing.

Feb 18, 2005 · One study2concluded that the optimum life cycle results in the range of 9 to 12 years based on various simulation models; however, the tendency was in the 10 to 11 year range. The study also showed that total annual costs tend to decline only marginally after 9 years. Based on the results of this study, extending the District’s target life

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