How is "life-cycle cost" defined in systems acquisition?

In systems acquisition, "life-cycle cost" is defined as all costs related to a system's development, production, and sustainment. This comprehensive approach includes not just the initial costs involved in developing and producing a system, but also the ongoing costs associated with its operation, support, maintenance, and eventual disposal. By considering the entire life cycle, organizations can make more informed decisions about budgeting and resource allocation, ensuring that they account for both immediate and long-term financial implications. This holistic view is essential for effective management of resources and for maximizing the value of investments in systems acquisition.