What is the difference between Total Ownership Cost ( TOC) and life cycle cost (LCC)?
Typical LCC estimates have included all costs associated with the research and development, procurement, operation, logistical support, and disposal of a weapons system. TOC includes all elements of LCC plus the total supporting infrastructure that plans, manages, and executes that weapons system program over its full life. TOC also includes the cost of requirements for common support items and systems that are incurred because of introduction of that weapons system. Memo of 13 Nov 1998 from ASN RD&A, Subj: Definition of Total Ownership Cost (TOC), Life Cycle Cost (LCC), and the Responsibilities of Program Managers provides the following definitions which are official within DoD for both DoD TOC and Defense Systems (Weapons Systems) TOC. DoD TOC: “Comprised of costs to research, develop, acquire, own, operate, and dispose of weapon and support systems, other equipment and real property, the costs to recruit, train, retain, separate and otherwise support military and civilian personnel,
