Life-cycle costing – reflections on IMCO amendments

The introduction of life-cycle costing is part of the move away from the ‘cheapest wins’ mentality and towards a framework that will open up space for contracting authorities to use public procurement to promote sustainable development. LCC is one way of factoring sustainability and resource efficiency concerns into the procurement process as it allows contracting authorities to consider indirect costs (such as treating consequential health impacts on the population caused by the use or production of a product). However, it should not be considered a silver bullet.

Further, among the 1,500+ amendments to the Commission’s proposal submitted by the lead European Parliament committee (IMCO), there are some approaches that would seriously undermine the value of LCC as a tool. In this briefing, we review the amendments made to the relevant provision in the proposed Directive and analyse their consequences.

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Published September 1, 2012
Found in Rule of law