Which of the following is NOT a cost included in the Contracting Life-Cycle?

The selection indicating that labor costs are not included in the contracting life-cycle is insightful, as labor costs are, in fact, a crucial component throughout this life-cycle. The contracting life-cycle encompasses various stages, including acquisition, operation, and disposal of resources.

Acquisition costs facilitate the initial purchase or contracting of services and goods, ensuring that all necessary materials are secured. Operating costs are the ongoing expenses incurred during the active phase of the contract, encompassing everything from maintenance to utilities. Disposal costs stem from the processes involved in ending a contract, which might include the disposal of materials or addressing any residual responsibilities after contract completion.

While labor costs are an essential factor, they are often embodied within operating costs or considered in acquisition costs. Therefore, referring to labor costs as a standalone item excludes their ubiquitous nature in funding all phases of the contracting process. The other costs—acquisition, operating, and disposal—are clearly defined stages of financial outlay, while labor is a variable that feeds into these broader categories but does not distinctly define a phase within the contracting life-cycle.