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00156 <br /> SPECIAL CONDITIONS <br /> The award of this bid will be based on LIFE cycle cost which <br /> evaluates both operating expenses and purchase price. The following formula <br /> will be used in claculating the LIFE cycle cost for each vehicle. Maintenance <br /> cost and salvage value will not be considered in the calculation due to lack <br /> of quantitative data however, quality of the vehicles bid will be researched <br /> if possible. <br /> LIFE <br /> Number of miles driven X Price of gas X 2.487 + Purchase price = CYOW. <br /> EPA gas mileage figures COST <br /> • <br /> WHEHE: number of miles driven = 57,000 miles/year/vehicle <br /> price of gas = $1.23/gal. <br /> EPA gas mileage = from 1982 EPA gas mileage guide <br /> for particular car <br /> 2.487 = discount factor * <br /> Purchase price = as submitted on bid <br /> ',Discount factor is used to make future expenses for operation of <br /> the vehicle ccmparable to initial costs incurred in the present time. Useful <br /> LIFE of three. years for the vehicles and an inflation rate of 10% is assumed. <br /> • <br />