What does the term "total cost of ownership" refer to in grant-funded programs?

The term "total cost of ownership" encompasses a comprehensive assessment of all costs associated with a project, extending beyond just the immediate budgetary figures. It includes both direct expenses, such as salaries, materials, and equipment, and indirect costs, which may involve administrative overhead, maintenance, and support services. Additionally, this concept takes into account the entire lifecycle of the project, recognizing that costs can continue to accrue after initial expenditures, for example, through ongoing maintenance or operational expenses.

Understanding total cost of ownership is critical in grant-funded programs because it provides a realistic view of financial commitment over time, helping stakeholders make informed decisions about resource allocation, project sustainability, and potential financial impacts. By considering all costs throughout the project's duration, organizations can better prepare for future financial needs and ensure long-term success.