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How through-life Costs Can Impact Naval and Coast Guards Procurement Programmes

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Subtitle: Marine propulsion suppliers dealing with Naval and Coast Guard vessels know the challenges that budget restriction bring to these projects. Article: The acquisitions of Naval and Coast Guards vessels are politically motivated and their financial effects must be evaluated carefully-ensuring taxpayers get the best value for their money. Many a time the viewpoint is restricted to the acquisition cost or capital cost of the assets and little or no consideration seems given to through-life costs. Why is this so? How can decision makers ignore the whole costs of the vessel which will operate for over 30 years in active service? The answer is of course well known: the actual operating costs of the fleet dictate the budget for today's future investment. Through-life costs are left out of the budgeting forecast, hence allowing more money for acquisitions.

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