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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 .. 14 CONSIDERATIONS.

Feb 18, 2005 · criteria and practices to current industry standards and practices. We also focused on ... the investment is best realized through keeping the vehicle ... reaches a minimum, the economic life is reached. Quantifying and analyzing these costs is known as economic lifecycle analysis.

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