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Simplified Calculator Tool to Incorporate Environmental Considerations into Decisionmaking Reviewed 08/07/2007 Total Cost of Ownership (TCO) modeling is a tool that systematically accounts for all costs related to an information technology (IT) management decision. TCO includes all costs, direct and indirect, incurred throughout the life cycle of an asset, including acquisition and procurement, operation and maintenance and end-of-life management. This TCO Calculator Tool allows users to compare the costs of different options for the life cycle management of IT equipment with an emphasis on decisions that may have an environmental impact. For example, what is the annualized cost of purchasing ENERGY STAR qualified equipment compared to a conventional unit? What will be the cost savings of extending the period of use for equipment from 4 years to 5 years, or purchasing only desktop processing units and keeping the current desktop monitors?
The Calculator Tool allows the user to enter up to 4 different products or scenarios for purchasing, operations and maintenance, and end of life management of computer equipment. While the emphasis is on decisions with a potential environmental impact, this tool includes data entry fields for any costs that the user might consider in a TCO analysis. The user can also modify the tool to include additional cost categories of interest. For more information on TCO, see Answers to Frequent Questions: Total Cost of Ownership , available on the Federal Electronics Challenge website at: http://www.federalelectronicschallenge.net/resources/docs/costofown.pdf.
Step 2
Total Cost of Ownership Simplified Calculator Tool to Incorporate Environmental Considerations into Decisionmaking Instructions: This Total Cost of Ownership Calculator Tool allows you to compare the total cost of ownership of alternative products or product life cycle management scenarios. The Tool can calculate and compare up to 4 products or scenarios. For data entry, see line-by-line instructions in Column G. All entries should be per unit cost. Default values are provided where available (see Column H). A * indicates a mandatory data field.
Units General Information Electricity Rate* Number of Units* $/kWh units Product or Scenario 1
CPU+ LCD product or w/ES, 4yr life, & donation scenario $0.0867
Instructions
Input actual energy cost to override default value. Purchased, leased or provided by seat management contract. $0.0867
Default Values
References
U.S. Department of Energy, 2006.
Product or Scenario 2
CPU+ LCD, w/ ES, 4yr life; outsource recycle
Hardware Acquisition*
$/unit
Software Acquisition
$/unit
Including installation, operation, maintenance and disposition, if purchased with hardware or software acquisition. Including evaluating options, developing bid specs, evaluating proposals, and negotiating contracts.
Service Contracts
$/unit
Administrative
$/unit
$/unit
$/unit $/unit
$0.00
$0.00
$0.00
$0.00
Expected Service Life Operations & Maintenance Training, Maintenance & Support
years
Service life within the organization that made the initial purchase, including internal redeployment of the asset.
Training
$/unit
Initial and on-going training for end user, including formal classes and informal assistance. Contract and staff support to maintain and support PC, including technical support, maintenance contracts and repair costs.
$/unit
Desktop Processing Units Power Consumption in "Active" Mode "Stand By" Mode "Off" Mode Number of Hours in "Active" Mode Each Day Number of Hours in "Stand By" Mode Each Day Number of Hours Turned "Off" Each Day Total Hours per Day Annual Unit Energy Consumption (calculated) OR
See manufacturer specifications. See manufacturer specifications. See manufacturer specifications. ENERGY STAR qualified units: 4 hrs "active" mode per day; 5.5 hrs "stand by" mode per day; ENERGY STAR calculator (1) 14.5 hrs "off" mode per day. Conventional units (not ENERGY STAR compliant): 9.5 hrs "active" mode per day; 0 hrs "stand by" mode per day; 14.5 hrs "off" mode per day.
0 0
0 0
0 0
Default Annual Unit Energy Consumption Monitors Power Consumption in "Active" Mode "Deep Sleep" Mode "Off" Mode Number of Hours in "Active" Mode Each Day Number of Hours in "Sleep" Mode Each Day Number of Hours Turned Off Each Day Total Hours per Day Annual Unit Energy Consumption (calculated) OR
kWh/yr
Enter data in rows 46 - 51 to calculate unit energy consumption for monitors. Make sure the total hours (row 52) equals 24 hours. If data is not available, leave all cells blank in the column and enter default value in row 55.
See manufacturer specifications. See manufacturer specifications. See manufacturer specifications. ENERGY STAR qualified units: 4 hrs "active" mode per day; 5.5 hrs "sleep" mode per day; 14.5 hrs "off" mode per day. Conventional units (not ENERGY STAR compliant): 9.5 hrs "active" mode per day; 0 hrs "sleep" mode per day; 14.5 hrs "off" mode per day. ENERGY STAR calculator (2)
0 0
0 0
0 0
kWh/yr
Default Annual Unit Energy Consumption Total Annual Energy Consumption Total Annual Electricity Cost Total Electricity Cost over Expected Service Life Power Management (PM)
kWh/yr kWh/yr $/unit/yr $/unit 0 0.00 $0.00 0 0.00 $0.00 0 0.00 $0.00 0 0.00
For initial purchaser only.
ENERGY STAR qualified units: 57 kWh/yr. Conventional units (not ENERGY STAR compliant): 98 kWh/yr. Assumptions : For ENERGY STAR qualified unit, 64% of units are left on 24 hrs/day; 25% of units have power management features enabled.
LBNL, 2006.
$0.00
Purchase additional Software to Manage Unit Power Consumption Training to Support PM End User Support for PM Subtotal Power Management
Enter cost of software per unit in service. If your organization installed centralized PM software, account for these additional cost savings under unit energy consumption above.
$0.00
$0.00
$0.00
$0.00
Equipment Upgrade for Internal Reuse Upgrade - Hardware & Software Upgrade - Staff Resources Subtotal Equipment Upgrade Other Operations & Maintenance
Use for any items not covered above.
$0.00
$0.00
$0.00
$0.00
Product Disposition: Trade In, Sale, Transfer (to another Federal Agency), Donation, Recycling or Disposal
Including inventory management, transfer paperwork, payment processing, finding a charitable organization, or finding & contracting with a recycler. Labor rate(s) X hours/units. Labor rate X hours/unit. Inventory management and forms @ $25/unit ($50/hr X .5 hrs); preparing transfer documents @ Gartner, November 2005. $12.50 ($50/hr X.25 hrs). Other costs to include: finding a charitable organization that wants the equipment (20-40 hrs divided by # of units); selecting and contracting with a recycling service provider (5-20 hours divided by # of units); using a GSA Schedule provider (number of hours of staff time divided by # of units.) $8.75/unit ($35/hr X .25 hrs) $12.50/unit ($50/hr X .25 hrs) Gartner, November 2005. Gartner, November 2005. Gartner, November 2005.
$/unit $/unit
$/unit
Including any hardware or software purchases $12.50/unit ($50/hr X .25 hrs) and labor (rate X hours/unit). This line item cost may be included in recycling or outsource contracts. Include hardware and software costs and labor (e.g. new software license and installation). Including cost of storage ( $/ft2/month X months in storage) plus labor costs of putting into storage and taking out of storage).
$/unit $/unit
$8.75 for reloading operating system ($35/hr X .25 hrs); $12.50 for testing PC ($50/hr X .25 hrs). Gartner, November 2005. $0 when recycling equipment.
Recycling/Disposal Fees
$/unit
$/unit
Cost of contract. Administrative costs $48.25/unit, including media sanitization using three-pass DOD Standard 5220-22-M wipe, pertaining to contract should be included here inventory, reporting, auditing, and refurbishing, but not including shipping. or in administrative line item above. This line item may include equipment tradein, if not included in new equipment purchase price; equipment sale; or recycling revenue. Revenues vary depending on equipment age. For 3 year old PC, assume resale value of 5-7 percent of initial cost. For equipment 4+ years, assume zero resale value.
Revenues Other Subtotal Net Disposition Cost Total Cost per Unit Over Service Life Total Annualized Cost per Unit Total Cost for Purchase of:
ENERGY STAR, Life Cycle Cost Estimate Calculator for Desktop/Side Computers, Assumptions for Desktop Computers, 10/05 Update. Available at http://www.energystar.gov/ia/business/bulk_purchasing/bpsavings_calc/Calc_computers.xls ENERGY STAR, Life Cycle Cost Estimate Calculator for Computer Monitors, Assumptions for Computer Monitors, 10/05 Update. Available at http://www.energystar.gov/ia/business/bulk_purchasing/bpsavings_calc/Calc_monitors.xls Gartner, Inc. 2005. PC Disposal Cost Update 2005: Mitigating Risks. Research ID Number. G00134319.
Lawrence Berkeley Livermore Laboratory (LBNL) ENERGY STAR "ccap-office-060801" spreadsheet, November, 2006, as cited in the Electronics Environmental Benefits Calculator Version 1.0. U.S. Department of Energy, 2006. Energy Information Administration (EIA) Electric Power Annual Report. "Average Retail Price of Electricity to Ultimate Customers by End-Use Sector" (Commercial end-user in 2005). Found at: http://www.eia.doe.gov/cneaf/electricity/epa/epat7p4.html. Downloaded: October 10, 2006.