Transcription of Life-cycle Costing - SIGMA
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Life-cycle Costing - SIGMA
2 Rue Andr Pascal 75775 Paris Cedex 16 France Tel: +33 (0) 1 45 24 82 00 Fax: +33 (0) 1 45 24 13 05 This brief is published under the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of the European Union or OECD member countries, or of beneficiaries participating in the SIGMA Programme. This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. Brief 34 Public Procurement Life-cycle Costing CONTENTS Introduction What is Life-cycle Costing (LCC) and why use it ? What the Directive says about LCC and how procurement principles are to be applied How to apply the LCC methodology Assumptions in LCC calculations Contract management How regulatory/advisory bodies can assist contracting authorities in using LCC Utilities Further Information Authorised for publication by Karen Hill, Head of the SIGMA Programme September 2016 SIGMA | Public Procurement Brief 34 2 Introduction The activities of public institutions and the decisions made by them s
SIGMA | Public Procurement Brief 34 3 . Conventional approach. The :“conventional” LCC methodology can be described as a financial assessment of the following types of internal costs (cost categories):
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