Economy. New heating plants at shore installations shall be
designed to meet application requirements for the lowest overall ownership,
operation and energy consumption costs during their life span. The
application of any facility must be justified by an economic analysis to
ensure the most appropriate facility at the lowest overall cost to the
Government. The economic analysis for new or modified plant construction
projects shall consider all suitable alternatives to determine the most cost-
effective method of accomplishment. Figure 1 provides a list of cost
considerations for comparing alternative plants. All economic analyses shall
follow the policy and procedures as outlined in SECNAVINST 7000.14, Economic
Analysis and Program Evaluation for Navy Resource Management. For information
and guidance in performing a detailed cost analysis refer to NAVFAC P-442,
Economic Analysis Handbook.
Central Heating Plants. These plants are for groups of buildings
which are existing or anticipated within a five year program. Central heating
plants are justified when the distribution system will have a lower life cycle
cost than other alternatives.
Cogeneration. Plants which generate electric power and heat
(cogeneration) can be utilized when an economic analysis determines lower life
cycle costs than other alternatives.
Individual Heating Plants. Individual plants are typically inside
or adjoin the building they serve. Individual plants are considered when
economically justified and for the following reasons:
a) When installation and maintenance of an extension of the
distribution system from a central plant to an isolated building is not
b) When dispersal of facilities and continuity of services are so
essential that disruption of service by any damage to the central heating
plant and connecting distribution system cannot be tolerated.
When fuel costs are paid by occupants of residence or family
Expansion of Existing Plants. Additional steam capacity, including
reserve capacity for loads expected within five years, may be added to an
existing central heating plant. An economic study must show that
modifications and additions to an existing plant and distribution system will
be more cost effective than other alternatives.