Funding Technology Procurement and Life Cycle Replacement

The purpose is to create a life-cycle replacement model for laboratory desktop computers.
Additionally, the process will include the necessary tools for implementing a funding cycle for
replacement of the computers. This will also encompass the utilization of the information
technology personnel to identify the proper network capacity, computer ages, direct cost, and
indirect cost associated with implementation of the life-cycle model. The colleges finance
department will play an important role by financially supporting the procurement of the new
computers during the life cycle (UPC-IT Committee, 2004).
1. Strategies and Goals
The information technology department is focused on providing sustainable, quality, and
reliable technology infrastructure that support the network and computing needs of the college.
This will create a supportive system that will provide quality customer services to all the end
users.
Goal 1: The informational technology division will provide a consistent and reliable
informational technology infrastructure that will support teaching, learning, research, and
administrative operations.
Goal 2: The informational technology will make adequate information technology tools and
support readily available to faculty and staff.

Goal 3: The College will provide adequate funding to support the procurement of the renewal of
technology equipment.
Strategy 1: Establish strategic standards to ensure that all acquisitions and implementations of
information technology meet the minimum requirements needed to maintain an efficient,
effective, and consistent infrastructure and instructional environment (Antolovic and McRobbie,
2001).

Strategy 2: Implement life-cycle financial funding instruments that treat all characteristics of the
information technology infrastructure such as operational costs, stable budgeting for network
infrastructure, computers, hardware and software, programming support, and
maintenance(Antolovic and McRobbie, 2001).
2. Scope of the plan
The plan to create a life-cycle replacement for all of the computers.
The plan will cover the following:
1. The primary computer workstation used by each faculty and staff member (desktops).
2. Student use devices identified as computer workstations (thin-client workstations.)
3. Configuring and imagining of the computers.
4. Testing the operation of all peripherals for the computers
5. Installation of software and hardware
4. Life-Cycle
The process of life-cycle funding refers to budgeting the total cost of providing a service or
supporting an operation including equipment costs, operational costs such as upgrades, operating
expenses, resource and consumables usage, equipment replacement, and personnel. This funding
will be established through grants, plant funds, technology student fees, and budgetary
allocations (Antolovic and McRobbie, 2001). The funds should be established on an annual
basis to support the life-cycle funding. The equipment will be replaced on a staggered basis. This
will prevent a huge outlay of funding during a given year.
Life-cycle funding refers to the practice of:
1. Identifying an appropriate life cycle for a piece of equipment (e.g., a period of time after
which the equipment will be replaced)
2. Determining a replacement cost for the equipment.

3. Dividing this replacement cost by the number of years in the life cycle. The cost of the
equipment should be set aside every year to provide for the replacement at the end of the life
cycle.
Below is a life-cycle budgetary worksheet that was created to demonstrate the process to
determine the life-cycle of various technology components (UPC-IT Committee, 2004). This is a
great tool to determine the overall annual expenditures for support and upgrades for technology.
Additionally, the table could be used as part of the cost model for the programs that utilize the
computer laboratory. This will allow the finance department to properly assign departmental
budget funds to support the computer labs, thus making the process fair and equitable for
departments.
Life-cycle budget worksheet
(Number of units * price/unit / life-cycle years = annual cost)
Computer Laboratory: 206E
Date: November 7, 2014
EXPENSES
Network Wiring:
Wiring Conduit
per port
Hardware and
Software:
Desktop
Computer:
Faculty
Thin-clients:

Printer:
Networked lab
printers
Maintenance and
Technical
Support

NUMBER PRICE

LIFECYCLE

ANNUAL
COST

Replacement Schedule

54

$460

15

$1656.00

Replacement of wiring on
an as needed basis.

$150

$60.00

Replacement of hardware
and software as needed.

$1500

$600.00

Replacement of one
desktop every 2.5 years.

50

$1000

$1000.00

Replacement of 25 thinclients workstations every

2.5 years.

$1250.00 4

$312.50

Replacement of printer
every fourth year or as
needed.
As needed

Below is an example of a computer life-cycle spreadsheet for a Technical College. The

spreadsheet was designed to identify all of the computers on the all campuses. The life-cycle
document is also used to justify the allocation of funds to obtain new computers.

References
Antolovic, L. G., & McRobbie, M. A. (2001). Life cycle funding. Educause review, 28-38.
Retrieved from:
http://itac.truman.edu/reports/Draft%20Life%20Cycle%20at%20Truman.pdf
UPC-IT Committee (2004). Proposal: Establishing life-cycle replacement funding for faculty and
staff computers. Retrieved from:
https://nautical.uwf.edu/Files/ORG/ITC/Desktop_Life_Cycle_Funding_V2_20040408.pd
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