FULL LIFE CYCLE ASSESSMENT
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WHAT THE TAXPAYER WANTS? |
Governor and governing body of the house |
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WHAT THE GOVERNMENTAL BODY WANTS? |
Mayor & City council |
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WHAT THE HIGHWAY COMMISSIONER WANTS? |
County President & Board |
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Township supervisor & Board |
All of these groups want the same thing. The taxpayer want the BEST return on the tax dollar both short and long term.
It is the responsibility of the Decision making group normally made up of the Highway Commissioner, Fleet Manager, County Engineer, Finance group, Park District Director, City Manager, Mayors, City Councils, County Commissioners to provide the greatest return on the invested dollar. The responsibility generally falls to the Engineering department and/or the finance department to accumulate all of the data available, present choices in a logical and complete format for the decision-makers to sign on and give support. The challenge that is discussed here focuses on the need to better address the short cycle-life maintenance issue when comparing longer-life solutions. Proper FULL LIFE CYCLE ASSESSMENT incorporating all the old and new information, such as new capabilities in galvanizing, and the sky rocketing repainting costs driven by EPA lead issues. This redress hopefully will shed some very favorable light on the age-old question of how to get the greatest return for your dollar.
The decision making body biggest hurdle normally is to justify an additional 10% for a product that outperforms the low bidder with significantly lower life cycle performance. The effort to justify the 10% quite often get lost in the difficulty to document the additional hidden future maintenance costs for the low bidder. This is particularly true on life expectancy greater than twenty years. This 10% hurdle without proper documentation is quite often too great a hurdle to jump considering the "low bidder concept" which is the foundation for the RFP process in many of our governmental bodies. In addition many issues including fifty year old RFP's, changes in technology, lack of current information data bases shifts in quality, all play a role in providing the ultimate lowest cost solution..
When the dollars are small for an item the decision making process is much simpler. As we can image as the RFP project gets larger, more options, more knowledge, better vision, and more information is required. When products last over 50 years very few decision-makers fully grasp all the issues. The "low bidder" process presently drives our decision-making society. Nothing wrong with the low bidder process as long as all of the future hidden variable costs are included.
Dr Deming, A noted management guru who helped rebuild Japan into a thriving manufacturing giant, noted the importance of identifying all costs. All costs to Dr Deming included, known, unknown, direct and indirect costs. It was Dr Deming view after watching 60 years of manager decisions that they only look at one cost, the known costs when making decisions. Dr Deming success was in taking in all costs into the decision making process to improve the overall performance and was his success in shaping Japan manufacturing into a quality conscience powerhouse of the sixties.
The author truly believes in the hearts of most all decision makers attempts to make informed decisions is present, however gets lost in the more critical thinking mind set used in small dollar decisions. If we understand how past decisions were made, logic would suggest that we could improve our current decisions, and prevent repeating bad decisions. The traditional decision making tools for architect or engineers when designing and selection steel coating has been for 100 years driven at the lowest level of the decision making process. Do I use paint A, or Paint B, or Grease C, or etc. Decision making at this level is very logical at the critical thinking level, however, fails in the grander scheme of ROI performance.
For example when more frequent maintenance is not included in the overall purchasing decision quite often the least cost solution for the project is not achieved. Frequency issues for (3-5 times vs galvanizing) repainting, plus the onset of EPA environmental cost for recovering lead paint, especially over rivers and along water, need to be reanalyzed, and has driven maintenance engineers into heat stoke. Maintenance repainting costs have soared. Just a few years ago bridge repainting costs of 2-3 dollars per sq. ft was normal. Today full sandblasting, lead containment, traffic rerouting have driven bridge maintenance repainting costs through the roof with over water reconditioning costs of 13 to 20 dollars per sq. ft. It does not take a rock scientist to figure out that hot dipped galvanizing costs of 4-6 dollars per square foot is a bargain at the time of purchase.
FULL LIFE CYCLE COSTING COMPARISON:
The process outlined in this paper is the concept of full life cycle assessment (FLCA) or costing. Full life cycle assessment is defined as the process that forward looking managers would use in attempting to measure all costs, known and unknown associated with making a purchasing decision for a particular capital project with long life. Long life is defined as useful life greater than five years. The key driving principle behind FLCA is the accumulation of accurate data regarding full life cycle costs. The most difficult investment decision that any management group will have to deal with is placing a current dollar value on options with more frequent reconditioning costs. For we know that if the life cycle to first maintenance of all choices was identical, the choice would be simple. However, in real life that is not the case and thus FLCA outlines a procedure that can used to layout the initial costs and expected reconditioning costs side by side for management decision.
We know from past experience that these reconditioning costs will occur, and to a high degree each project manager has a handle on and understand the frequency and the direct costs of the recondition efforts. The real problem has been for the decision-making committee, or project engineer has been several in his efforts to project these future maintenance costs in fair presentation format in present dollar values at the time of purchase. First to capture the reconditioning costs for each choice, Second, to include all costs both known, unknown, direct and indirect costs. Third apply these future cost reconditioning cost based on current knowledge, Finally to add in these additional costs into the purchasing equation in a logical, professional manor. It is the author's option these costs are known, and should be included in any long-term decision.
It is critical in the application of FLCA to calculate the costs for a time period well beyond the longest expect life to first maintenance, or in some cases to the end longest expected life to first maintenance. Other items like resale value, can be includes as necessary. It is recommended that Project engineers run more than one maintenance cycle of the best product, however, never less than the life of the longest maintenance cycle.
There are many options available to the architect or engineer when selecting a coating system for steel. Several factors must be considered during the selection process. Remember, the "cheapest" system based on initial cost may wind up being the most expensive over the life of the project. That is why many professional associations and Public Sector Agencies encourage the use of Life Cycle Costing. The following data and suggested recap format will assist in selecting the lowest cost corrosion protection system to steel bridges and will provide the taxpayer with many years of maintenance free operation.
In developing strong viable data for life cycle costs, two items in the process require significant attention in the process. These are , "life expectancy" and total "maintenance costs. The following discussion will help explain a method to capture the best data both for local environments and also inclusion of the best national data. This study will address life cycle maintenance issues with bridges and the inclusion of these future costs into the purchase decision point.
LIFE EXPECTANCY
Life expectancy for a particular highway bridge placed in various parts of the United State will vary significantly. Weather, salts, traffic patterns, loads, abuse, and neglect are just some of the factors to take into consideration to determine life local experience, state and national articles related to life expectancy. It is important to develop this life expectancy table for local governing body. Each governing body environments are different that the national averages. However, the national state and other local data can be used to update maintenance cycles and also determine the validity of reconditioning cost per unit value, i.e. cost per square foot etc. At the bottom of this report data is provide of national studies regarding painting costs, cost comparisons, application of new galvanizing rules. These articles are available generally at no charge.
Galvanizing: Life expectancy to first maintenance in different regional setting for galvanizing are known and are very stable due to several factors. First galvanizing weathers at a known rate of erosion. After 15 to 20 years engineers can determine expected life to 5 % rust standard and predict the remaining life with certain confidence. These life expectancies are published and a recap is available below. Select an expected life that is appropriate to your environment. For example a rural installation will last significantly longer than a harsh industrial environment. Likewise, the other options will be impacted as well.
Weathered steel: Weathered steel develops a coating that slows down further rusting. Weathered steel has known life expectancies. The major issues with weather steel is the aesthetic appearance to rusting steel. A weathering steel bridge in a downtown setting may not be an appropriate choice. Weathering steel is a solution when no one cares what it looks like.
Concrete: Life expectancy to first maintenance for concrete is known. Local environmental issues are far more significant that national averages. Again local issues such as cold weather, freeze and thaw cycles impact concrete strength and durability than other choices. However, in the case of concrete, the first option might be total replacement rather than repainting since freezing and thawing which has damaged the concrete has significant impact on the load carrying capacity of the bridge.
Painted Steel: Steel bridges with paint face the same conditions as galvanizing, however, the expected life of galvanizing is generally 300 to 500 percent greater than painted steel in identical conditions from rural to heavy salt conditions. With painting harsh environments such as heavy salt, near ocean installations, high humidity environments shorten the expected life of the coating. A painted bridge greatest failure is the paint ability to handle physical abuse from sudden impacts that nick the paint surface. Once the surface is breached oxygen, and water seep under the coating and rust blister erupt quickly destroying the strength of the structure.
MAINTENANCE COST (FULL RECONDITIONING COSTS)
In Dr Deming world, it was very important for managers to look at all costs, direct, indirect, known and unknown costs. The following is the editors understanding of each item in relationship to assessing bridge costs, both at the initial installation, and secondly determination of costs associated with reconditioning the bridge. Some of these concepts will perhaps upset traditional decision makers whom believe, that if you can not measure it to the penny, it is not be included into the decision making process. Accounting is basically to keep track of where we have been. For those managers whom choose to look in the rearview mirror to make decisions should past accounting data is one of 4 or 5 key factors in the decision making process. In making decisions that impact well into the future (50 to 100) years traditional critical thinking decision model fail the test by not incorporating all the data. For example, The world largest kettle will significantly impact the price structure for galvanized bridges. Lower onsite installation cost due to double and triple size modules, consolidation of fabrication and galvanizing process.
Direct Costs: Direct costs are defined as any and all hard dollar costs that can be assigned to the project, the traditional general ledger application of a cost to a project.
Indirect Costs: Indirect costs are defined as any cost that is a part of the project however, can not be assigned to the project in the traditional sense of accounting. It can be overhead in the department, additional management provided however, not directly charged to the project. Another term could perhaps be General overhead of the entire organization.
Known Costs: Known costs are generally the costs identified above. In addition to these costs are the costs both inside and outside of the control of the department or organization making the decision. Costs may be known, however, not charged to the project or to the department responsible to the decision-making organization.
Unknown Costs: In the case of bridge maintenance, the additional costs of rerouting traffic for 3 months onto other routes, costs to commercial businesses both in lost business for lack of traffic, to much traffic, etc. In addition to losses to individual in traffic delays, longer commutes. These costs are known however, seldom include into the decision making process for many reasons. Typical responses are: It too far out into the future to worry about. I will let someone else worry about than. This new bridge will solve this existing problem and we desperately need it.
To fill out the table below rank the RFP choices from best to worst (the author used longest life to first maintenance) and insert the choices in the columns below. For example below the ranking was Galvanized Concrete, weathered steel, and finally painted steel. The life expectancy file maintained within the department will determine the life expectancy of each item. Once the life cycle of each choice is made the appropriate number of maintenance cycles for that particular bridge can be included in the recap. FLCA recaps can be viewed from a management decision point either after the longest life cycle has completed or at double or triple life cycle points of the longest bridge option.
It is important to note that project engineering committee should give consideration to the application of the future value of money. If the committee does not apply future value of money to the study it may change the results slightly. It is the authors option to cost plus values to future maintenance and then to discount the present value of future dollars has little value, confuses the issues especially on purchases that are expected to last greater than 40 to 100 years Most all governing bodies or their outside accounting/auditing can provide information as to the impact of discounted dollars. In the editor's option, the present or future value principle application should be applied at the conclusion of Life cycle tables. It should be noted that if present or future values are included in the decision making process, then dollar values consideration should be given to aesthetic value, environment issues during reconditioning, etc. In this example present or future dollar values are NOT considered to keep the process simple. Once the process is understood, refinements can be added.
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Project # |
Chart A |
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Galvanized |
Weathered steel |
Painted steel |
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1 |
Expected life cycle to first full maintenance: below to determine data base |
YRS. 80 years Chart D below |
YRS |
YRS |
YRS |
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2 |
Installation cost: bid from RFP bidders |
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$ |
$ |
$ |
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1st Maintenance cycle costs for reconditioning for ALL choices |
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Direct costs |
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Indirect costs |
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Other known costs |
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3 |
1st maintenance cost: |
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Additional maintenance cycles to equal the longest life cycle RFP option. It may impact one or more of the remaining choices. |
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Direct costs |
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Indirect costs |
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Other known costs |
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4 |
maintenance cost: |
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Additional maintenance cycles to equal the longest life cycle RFP option. It may impact one or more of the remaining choices |
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Direct costs |
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Indirect costs |
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Other known costs |
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maintenance cost: |
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Additional maintenance cost to equal the longest life cycle RFP option. It may impact one or more of the remaining choices |
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Direct costs |
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Indirect costs |
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Other known costs |
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6 |
maintenance cost: |
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7 |
Total life cycle cost |
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Annual ownership cost Divide 7 by 1 |
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Chart B: Definitions of concepts |
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Expected life cycle to first maintenance |
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Maintenance life |
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Total life cycle cost: |
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There are some basic conclusions to be drawn from this analysis. When evaluating coating systems, the initial outlay should not necessarily be the single component in making a decision. While a system might appear to be less costly at first glance, a careful analysis will point out all pitfalls and costs associated.
INDEPENDENT STUDY OF SIX HOT DIPPED GALVANIZED BRIDGES
FLCA full life cycle assessments indicate cost reductions of 15.46 to 26.45 dollars per sq. foot to the first maintenance stage of the bridge. Additional cost reductions would be expected beyond first reconditioning.
An independent engineering consultant Mr. John Malone of Galvanizing Consultants, and Mr. Donald Wetzel of the AGA conducted this study. This information plus the application of "Full Life Cycle Assessments" analysis confirms the cost-effective benefits of hot dipped galvanizing for township, city, county and state DOT highway bridge structures. The study was conducted in the fall of 1991 on six hot dipped galvanized bridges located in the state of Ohio. At the time of the study these bridges ranged in age from 19 to 24 years. Today these bridges average 30 years of age, and application ranging from industrial to rural, and lengths ranging from 60 to 227 feet in length.
In the United States, today it is estimated that approximately 600,000 bridges exist. At the time of this article it was estimated that approximately 500 full-galvanized bridges were in existence.
The engineers tested the thickness of the zinc coating on all six bridges. The average thickness that remained after approximately 20 years of service was 6.26 mils. The rate of zinc erosion is very stable and known and can be measured. This exceeds the standard for newly galvanized steel by 2.36 mils or exceeds new standards by 60%. The current ASTM 123-89 galvanizing standard for new steel is 3.9 mils It was also noted in the study that the life expectancies were EXTREMELY CONSERVATIVE and projected a remaining conservative life of 40-90 years at which time 5 % of the bridge structure would be rusted.
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Chart C: STUDY CONDUCTED IN 1991 and Average remaining steel coating in rural and industrial |
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Bridge |
Built |
Location |
Item |
Avg. Remaining Zinc in mils |
Years to 5% rust |
Comments |
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A |
1969 |
Industrial |
Structural |
6.34 mils |
53 years |
Limestone environment |
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B |
1970 |
Rural |
Structural |
5.17 mils |
73 years |
Evidence of Heavy salting |
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C |
1973 |
Industrial |
Structural |
5.39 mils |
40 years |
Refinery environment |
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D |
1972 |
Rural |
Structural |
6.68 mils |
90 years |
Looked new |
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E |
1968 |
Over creek |
Structural |
5.51 mils |
75 years |
Superb condition |
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F |
1967 |
Oldest studied |
Structural |
5.88 mils |
49 years |
Excellent |
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Note: ASTM 123-89 galvanized coat thickness industry standard is 3.9 mils on newly dipped galvanized steel |
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BOTTOMLINE: application of FULL LIFE CYCLE ASSESSMENT (FLCA) principles determine the full cost during the life cycle of the item being measure. Information provided presently indicates in the state of Ohio, that the normal practice is to paint highway bridges every 10-15 years. The repainting costs in 1999 dollars are running at 3.00 to 4.00 dollars per foot with a 10-15 year paint cycle life.
COST REDUCTIONS: With 1999 hot dipped Galvanizing costs of approximately 4.00-5.00 dollars per sq. ft. at installation, the below FLCA cost reductions would be expected to the first significant maintenance.
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Chart D Total bridge life w/o surface maintenance for galvanized bridges in OHIO |
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Bridge |
Built |
Avg. Remaining Zinc in mils |
Years to 5% rust |
Year date maintenance |
Total bridge life w/o maintenance |
Projected FLCA cost reductions over life of bridge @ 15 year cycle |
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A |
1969 |
6.34 mils |
53 years |
2044 |
75 years |
17.64 dollars per sq. |
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B |
1970 |
5.17 mils |
73 years |
2064 |
94 years |
25.06 dollars per sq. |
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C |
1973 |
5.39 mils |
40 years |
2031 |
58 years |
15.46 dollars per sq. |
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D |
1972 |
6.68 mils |
90 years |
2081 |
109 years |
29.16 dollars per sq. |
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E |
1968 |
5.51 mils |
75 years |
2066 |
98 years |
26.13 dollars per sq. |
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F |
1967 |
5.88 mils |
49 years |
2040 |
73 years |
19.46 dollars per sq. |
BOTTOMLINE: If the additional installation cost is less than the expected cost for the alternative then the first choice is better. In this case, if hot dipped galvanizing can be purchased for less than 15.46 dollars per square foot (bridge C) then the choice is definitely galvanize purely based on costs. In this example, accumulated cost reductions over the life cycle of the bridge would range from a minimum of 12.61 to a maximum of 26.31 dollars per sq. ft. Application of present and future dollar principles represents even greater cost reductions. Stark County estimated that on the 247-foot galvanized bridge to install galvanizing was 2.85 dollars per sq. ft.
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