Operational Cost Analysis Methodology at RFNC-VNIIEF

This paper describes the methodology used to evaluate the operational costs of the U.S.- funded Material Protection Control and Accountability (MPC&A) system upgrades at RFNC-VNIIEF. The paper presents the following: • a description of the operational cost structure, which includes the expenses for MPC&A system management and engineering/equipment costs, costs for operations personnel and guard forces, and MPC&A infrastructure maintenance costs; • operational cost analysis in which the cost components are subdivided into the critical components, components that lower operational costs, and components that affect the effectiveness of MPC&A; • a description of the algorithm for normalizing operational costs; • an evaluation of MPC&A operational costs for one year and for 10 years, adjusted for inflation; • the form used to enter the results of the calculation of operational costs for 10 years. The methodology was developed with the participation of the United States Project Team for possible application in the analysis of operational costs for the maintenance of the MPC&A equipment purchased by RFNC-VNIIEF within the framework of U.S. technical assistance.