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Life-Cycle Costing in Public Procurement in Hungary

This report provides Hungary with key recommendations and policy options to establish comprehensive and user-friendly methodologies and tools for the greater uptake of life-cycle costing (LCC) methodology in public procurement. The report introduces the concept of LCC and its links to the wider sust...

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Detalles Bibliográficos
Clasificación:Libro Electrónico
Autor principal: OECD
Formato: Electrónico eBook
Idioma:Inglés
Publicado: Paris : Organization for Economic Cooperation & Development, 2022.
Temas:
Acceso en línea:Texto completo
Tabla de Contenidos:
  • Intro
  • Foreword
  • Acknowledgements
  • Abbreviations and acronyms
  • Executive summary
  • Key findings
  • The use of LCC in Hungary
  • LCC tools in OECD countries
  • Policy recommendations
  • 1. Life-cycle costing as a tool in mainstreaming green public procurement
  • References
  • Notes
  • 2. State-of-the-art in adopting life-cycle costing in Hungary
  • 2.1. Hungarian policy and regulatory framework on green public procurement and on LCC
  • 2.1.1. The Hungarian regulatory framework on public procurement gives ample room for the use of green public procurement approaches
  • 2.2. Using public procurement to deliver on sustainability is promoted widely
  • 2.3. Operational support to contracting authorities on how to implement green public procurement exists
  • however, further efforts are needed
  • 2.4. Uptake of green public procurement is still lagging behind
  • 2.5. Experience with the use of LCC tools in public procurement procedures is almost non-existent
  • however, there are some good examples
  • 2.5.1. The main reasons for the very low uptake of the LCC methodology in Hungary
  • Lack of practical knowledge and expertise in conducting LCC
  • Lack of access to a comprehensive LLC methodology and the insufficiency of supporting tools
  • Unavailability of relevant data for LCC calculations
  • Fear of audits risks
  • A weak appreciation of the benefits of using LCC in public procurement
  • References
  • Notes
  • 3. Mapping life-cycle costing tools and practices
  • 3.1. Mapping of available tools and methodologies to support the use of LCC
  • 3.1.1. Availability of LCC tools in the broader GPP policy context
  • 3.1.2. Approaches to LCC calculations
  • 3.1.3. Economic methodology for LCC calculations
  • 3.1.4. Purchasing categories relevant for LCC
  • 3.1.5. Mapping the climate dimension of LCC tools
  • 3.1.6. Lessons learnt from the tool development process
  • 3.2. Comparative analysis of selected spreadsheet-based LCC tools
  • 3.2.1. Findings
  • Finding the balance between simplicity and accuracy
  • Externalities
  • Consumption patterns (operational costs)
  • Reference data
  • User-friendly features
  • 3.3. Key takeaways
  • 3.3.1. LCC adoption remains low across many countries, even when there is commitment to GPP
  • 3.3.2. Limited availability of tools for specific product groups
  • 3.3.3. Development of LCC tools is a labour-intensive process
  • 3.3.4. Difficulty in ensuring the methodological soundness of the tools
  • 3.3.5. LCC and TCO practices and approaches are more advanced in the infrastructure/ construction sector
  • 3.3.6. Evidence and data on LCC use is scarcely available
  • 3.3.7. Standardisation gaps/lack of consensus on how to incorporate environmental costs
  • 3.3.8. Time pressure and capacity gaps pose key barriers to wider adoption
  • 3.3.9. Tools are necessary but not sufficient condition for success
  • References
  • Notes
  • 4. Recommendations