Welcome to the
Life Cycle Cost Analysis (LCCA) Tool
New Mexico Capitol Buildings Planning Commission (CBPC)

This Web-based software tool is for State of New Mexico agencies or their employees who are considering a lease-purchase facility acquisition.

Before Using the LCCA Tool
In preparation for using this tool, agencies or their employees should have formulated and sufficiently developed a specific proposal to facilitate a comparative analysis. Before using this tool, at a minimum, users should:

• Complete a facility needs assessment or a facility program documenting agency space requirements; and
• Complete a lease-purchase proposal in cooperation with a developer.

Users who have not developed this required information may not be prepared to complete the analysis.

Sign-On Request
If the agency and its employees want to use this tool, please submit a request for access using the "Request a User Account" button below. A screen dialogue will ask for basic contact information for verification, including the name of the person or agency making the request, position, title and a brief description of the proposed lease-purchase project.

CBPC staff will review the request to validate a legitimate need for access to the web tool. Upon approval, staff will email access instructions to the requestor.

Background / Purpose

The CBPC is responsible for studying and planning for long-range facilities needs of state government in the metropolitan areas of Las Cruces, Santa Fe and Albuquerque, and after developing an initial master plan for the state facilities in those areas, conduct a review of state properties throughout the state for the development of an overall master plan.

The lease-purchase approach to acquisition of state buildings and public schools received approval in 2006 when the citizens of New Mexico passed Constitutional Amendment 2. The legislature assigned to the CBPC the responsibility for reviewing proposed lease-purchase agreements for state buildings. The CBPC recommends to the legislature whether the state should lease, lease-purchase or purchase needed additional facilities.

Lease-Purchase Agreement Review Process Overview

The CBPC has developed guidance for agencies to clearly communicate:

• Who needs to appear before the Commission for lease-purchase agreement review;
• Which lease-purchase agreements require review;
• The CBPC's lease-purchase agreement review process (see the illustration below); and
• The information to be provided by state agencies that submit lease-purchase agreements.

The lease-purchase review process is illustrated below:

Step A describes the information required by the submitting agency: space needs, LCCA simple analysis, and other costs/benefits of the proposed project.

Steps B and C describe the technical review and reporting process that is to be completed by CBPC staff.

For more information about the CBPC's lease-purchase review process and the purpose of this tool, see the CBPC's Lease-Purchase Agreement Review Process Guidance Document.

Life-Cycle Cost Analysis

All submittals presented to the CBPC for review must include a LCCA.

The LCCA can be very detailed and complex. In order to assist state agencies to complete LCCA for a proposed project, the CBPC developed this tool for the requesting agency to prepare the required analysis. Also, CBPC staff will use this tool for their proposal review.

Agencies submitting lease-purchase proposals to the CBPC are required to use the LCCA tool and its assumptions. Supplemental analyses may be submitted using alternative LCCA processes; however, any and all deviations from the CBPC LCCA baseline assumptions and parameters must be clearly identified and justified.

LCCA Tool User Input

This LCCA tool offers a simplified life-cycle cost analysis method. Users can develop the analysis by providing basic information such as:

• Existing space use data;
• Proposed project name and location;
• Occupancy date;
• Gross square footage (GSF) proposed for new construction;
• GSF and purchase price for an existing building acquisition;
• GSF information about required additions or renovations to a proposed building acquisition; and
• Other identified costs associated with the project.

The LCCA tool provides all other information required to complete the analysis such as construction costs, operational costs, replacement costs, and residual value assumptions. The CBPC has chosen to control many of the key financial and cost parameters in the tool to simplify the analysis and ensure that the results are comparable for all projects.

LCCA Tool Output

The tool's results provide both the user and CBPC staff with a consistent set of comparisons for all lease-purchase proposals. It generates four options for comparison, including:

1. New state lease or continued existing lease at prevailing local lease rates;
2. State construction or purchase of a new facility using cash resources;
3. State construction or purchase of a new facility assuming tax-exempt bond financing (with some possible initial cash investment); and
4. State lease-purchase of a facility from the private sector (can be new construction or existing), assuming debt financing at private sector rate (Assumptions are established by CBPC staff).

If a state agency has a lease-purchase proposal in hand, a fifth option is generated:

5. State lease-purchase of a facility from the private sector (can be new construction or existing), assuming debt financing at private sector rate. (Assumptions are for a proposed lease-purchase transaction, provided by the User.)

The intent of the tool is to provide sufficient data for CBPC and GSD staff to determine whether a lease-purchase proposal is in the best long-term interest of the state. Based on the LCCA results, CBPC staff may choose to develop a more detailed analysis.

Request a User Account