The growing availability of software tools has increased the speed of generating LCA studies. Databases and visual tools for constructing material balance modules greatly facilitate the process of analyzing the environmental aspects of product systems over their life cycle. A robust software tool, containing a large LCI dataset and functions for performing LCIA and sensitivity analysis will allow companies and LCA practitioners to conduct systems analyses efficiently and reliably. This paper discusses how the GaBi 3 software tool can be used to perform LCA and Life Cycle Engineering (LCE), a methodology that combines life cycle economic, environmental, and technology assessment. The paper highlights important attributes of LCA software tools, including high quality, well-documented data, transparency in modeling, and data analysis functionality. An example of a regional power grid mix model is used to illustrate the versatility of GaBi 3.