Life Cycle Costing (LCC) Workshop as a tool for sustainable public procurement

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Newsletter

Most of the governmental institutions all over the world have the policy to purchase the cheapest product according to the bidding process. However, it turns out that this is not always the best decision. Purchasing price for sure is one of the decisions governmental institutions need to consider, but when it comes to the costs of the usage period, most of the authorities don’t have any information about this. Life Cycle Costing (LCC) is one approach to decide for eco-products. For this reason, a regional LCC Workshop took place in Malaysia between 8 – 9 October 2013.

The objectives of this seminar were

To share lesson learned on LCC concept, methodology and application in the procurement processes.
To introduce a calculation tool for CO2 emission for stimulating the purchase of climate friendly products/services
To share good practices and lesson learned on LCC communication strategies in the retail sector
To identify further steps to integrate or enhance the LCC approach in public procurement system used in participating countries

During this seminar expert on life cycle costing shared that purchasing price need to be taken under consideration, but it is not the only argument for buying a product. Also the costs of usage phase as well as disposal costs need to be considered.

In total 60 participants from Thailand, Malaysia, Indonesia and Philippines attended this 2-day workshop. Some of the countries are already committed to use Life cycle costing (LCC) as a tool for sustainable public procurement soon.

For the future there was a big interest in organizing another event regarding technical specifications for public tenders, which will be organized at the beginning of 2014.

The presentations are available to be downloaded as below.

he presentations are avialable to be downloaded as below.

Malaysia’s Government Green Procurement Short-Term Action Plan

Contact information

Mr. Thomas Lehmann
Project Director
Email:thomas.lehmann1(at)giz.de