Lift Cycle Cost Analysis (“LCCA”) is a process of evaluating the economic performance of a system over its entire life.

1. GREEN AND COMPETITIVE
By Ir. Kok Jing Shun
+6019 7780578
LIFT CYCLE COST ANALYSIS FOR CHILLED WATER PLANT

2. Introduction
1. Lift Cycle Cost Analysis (“LCCA”) is a process of evaluating the economic
performance of a system over its entire life.
2. The objective to evaluate chiller water cooling plant system performance using
LCCA method as followings:-
a) Increased focus on sustainability and energy efficiency.
b) Investing in systems that save energy generally can be justified and quantified
in a financial manifestation
3. By comparing the life cycle costs of various design configurations, LCCA can explore
trade-offs between low initial costs and long-term cost savings, identify the most
cost-effective system for a given use, and determine how long it will take for a
specific system to “pay back” its incremental cost.
4. The evaluation criteria for LCCA of chilled water plant shall be as followings:-
a) Capital Cost
b) Operation Cost
c) Maintenance Cost
d) Technical Compliance

3. Evaluation Criteria
1. Capital Cost
➢ Total cost needed to bring a system to a commercially operable status.
2. Operation Cost
➢ Utilities Cost including electricity & water consumption.
3. Maintenance Cost
➢ Cost for implementation of comprehensive maintenance for cooling plant system and schedule
periodic maintenance on all the critical items of cooling plant system such as compressors,
cooling towers, pumps, condensers, air handlers, controls, filters and piping.
4. Technical Compliance
➢ Chillers performance.
i. Energy Efficiency.
ii. Project reference in Malaysia and South East Asia for example Singapore, Indonesia &
Thailand.
iii. Type of Refrigerant (Impact to environment, stable supply for next 25 years, cost)
➢ Chilled & Condenser Water Pumping System Performance.
➢ Cooling Tower System Performance.
➢ Accuracy of instruments (sensors & control devices), including frequency of calibration for each
instrument and its cost.
➢ Chilled water plant integrated energy performance without energy management system.
➢ Chilled water plant integrated energy performance with energy management system.

4. Evaluation Criteria
Sample of Chillers comparison using LCCA method:

5. LCCA EVALUATION SAMPLE
1. Commercial Comparison on Capital Cost
Description Bidder A Bidder B
Air Conditioning & Mechanical
Ventilation Services Price
RM 15,000,000.00 RM 15,500,000.00
Variance (RM) - +RM 500,00.00
Variance (%) +3.33%
Ranking for Capital Cost 1 2

6. LCCA EVALUATION SAMPLE
2. Commercial Comparison on Operation Cost
Description Bidder A Bidder B
Operation Cost per annum (Utilities Cost
for electricity consumption based on 100%
occupancy rate)
RM 1,200,000.00 RM 1,100,000.00
Variance (RM) +RM 100,000.00 -
Variance (%) +9.1% -
15 years Lift Cycle Operation Cost (based
on assumed occupancy rate)
RM18,000,000.00 RM16,500,000.00
Ranking for Operation Cost 2 1

7. LCCA EVALUATION SAMPLE
3. Commercial Comparison on Maintenance Cost
Description Bidder A Bidder B
Comprehensive Maintenance Cost per annum
(1st year after Defects Liability Period)
RM 200,000.00 RM 225,000.00
Variance (RM) - +RM 25,000.00
Variance (%) - +12.5%
5 years Comprehensive Maintenance Cost
(after Defects Liability Period)
RM 1,000,000.00 RM 1,125,000.00
15 years Comprehensive Maintenance Cost
(after Defects Liability Period)
RM 3,000,000.00 RM 3,375,000.00
Ranking for Maintenance Cost 1 2

8. LCCA EVALUATION SAMPLE
4. Comparison on Technical Compliance (1/2)
No. Criteria Requirement Bidder A Bidder B
1. Chiller Model Selection C brand / T brand / Y brand C brand T brand
2. Chiller Performance Data ANSI/AHRI Standard 550/590 Comply Comply
3.
Cooling Plant System
Performance
< 0.65 kW/RT
Comply
(0.58 – 0.65 kW/RT)
Comply
(0.56 – 0.63 kW/RT)
4.
Project Reference for
similar Chiller Equipment
Regional Area
2 project references in
Singapore
1 project reference in
Singapore, 8 project
references in Asia
Pacific.
5.
Cooling Plant Energy
Management System
Mandatory Requirement Yes Yes
6.
Project Reference for
Cooling Plant Energy
Management System
Regional Area
1 project reference in
Malaysia & 1 project
reference in Singapore
> 50 project references
in Malaysia)

9. LCCA EVALUATION SAMPLE
4. Comparison on Technical Compliance (2/2)
No. Criteria Requirement Bidder A Bidder B
7.
Chilled Water Pumping
System Performance
Malaysia Standard 1525:2014
a) > 73% eff. for flowrate between
100 m3/hr to 270 m3/hr
b) > 80% eff. for flowrate
exceeding 270 m3/hr
Comply Comply
8.
Condenser Water Pumping
System Performance Comply Comply
9.
Cooling Tower System
Performance
Cooling Technology Institute (CTI)
Certificate
Comply Comply
10.
Accuracy of sensors &
instruments for
measurement
Comply to GBI & BCA Green Mark
requirements
Comply Comply
11.
Chiller Equipment
Manufacturer Maintenance
Team
Sophisticated maintenance team
with technical know-how.
Fair Good
12.
ACMV specialist on Supply &
Installation Work
Sophisticated installation team
with technical know-how.
Good Good

10. LCCA EVALUATION SAMPLE
5. Summary of Comparison
Bidder
A. Capital
Cost
(Rank)
B. Operational
Cost
(Rank)
C. Maintenance
Cost
(Rank)
D. Technical
Comparison
(Rank)
15 years
Lift Cycle Cost
(RM)
Overall
Ranking
Bidder A 1 2 1 2 RM 36,000,000.00 2
Bidder B 2 1 2 1 RM 35,375,000.00 1
6. Conclusion
 Bidder B shall be recommended as Bidder B has scored the Highest
Ranking in the Lift Cycle Cost Analysis.

11. Thank you