D.

5 Systems Economic Analysis

The purpose of the economic analysis is to determine the comparative life

cycle costs of various HVAC system alternatives. The analysis shall provide
sufficient data to indicate the most economical and energy-efficient system
and to permit a comprehensive review of all computations. The analysis
shall include and compare total initial capital cost, energy cost, operating
cost, system reliability, flexibility, and adaptability for each alternative.
Each system alternative considered shall satisfy completely the program
requirements as to flexibility, redundancy, reliability, and ease of
maintenance. The total capital cost to provide the program requirements for
each alternative shall be included as part of the life cycle cost.

For comparison of systems, the life cycle and operating cost shall be 30 years
corresponding to anticipated useful life for major equipment. Replacement
costs shall be included for equipment with less than the chosen life cycle.

• The escalation rate for fuel or energy cost, i.e., oil, gas, coal, electricity,
etc., shall be according to procedures set by the Department of Energy
(DOE) in NIST Handbook 135, Life Cycle Cost Federal Energy
Management Program.

• Initial capital cost shall include all equipment, auxiliaries, and building-
related cost for each complete system. Refer to ASHRAE for HVAC
Systems and Equipment Handbook, chapter on “Owning and Operating
Costs,” for a complete listing of items to be included in the economic
analysis.

• The A/E shall perform a computerized energy analysis and a life cycle
cost analysis using a professionally recognized and proven program
which makes hourly calculations as a basis. Suitable programs include
Carrier EC 20-11 HAP, DOE 2.1, and Trane Trace-Ultra. If other
programs are to be considered, documentation showing Federal and
State approval should be forwarded for approval prior to the start of
work. Manual or computerized spreadsheet methods may be used to
evaluate system alternatives when approved by the NIH Project
Officer.

• Building HVAC systems suitable for consideration in economic

analysis include the following systems or combinations of systems:

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Mechanical D-11