Calculating your real costs
Welcome to the Life Cycle Costing and Emissions Tool. The tool has been developed to help you calculate the life cycle costs (LCC) and important emissions (CO2, CO2eq, NOx, SO2, NMHC and PM) of different products, work and services to assist in procurement decision-making.
Buying green can save money, particularly when an LCC approach is taken during the procurement process – to account for all of the costs that will be incurred during the lifetime of the product, work or service and its related emissions, not just the purchase price. LCC can save costs by allowing procurers to choose the option which represents best value over its entire life-cycle.
Please login to access the tool or register to create an account.
What information does the tool provide?
The tool can be used to assess two very closely related values: life cycle costs and related emissions. The tool can be used:
- in tendering to compare any number of offers. The tool can also handle offers which include multiple products, works or services.
- to assess your current situation and thus determine potential financial and emissions impacts of innovative alternative solutions.
Life cycle costs (LCC)
Life cycle costs (LCC) are the costs incurred by a contracting authority during the useful life of a product, service or work. Beyond the acquisition costs, LCC also takes into account operational costs (particularly energy and water consumption), maintenance costs, taxes, and disposal costs/resale value.
The tool can also be used to calculate the CO2
, NMHC and particulate matters (PM) emissions of products, services and works deriving from operation of the product (operation emissions – mainly caused by energy consumption). If required, these can be further differentiated into those deriving from the direct combustion of fuels and those due to the generation of electricity used in operation.
If external life cycle analysis data is available, the tool also allows for the calculation of embedded emissions (that is, emissions caused during production (including raw material extraction), transportation, installation and disposal).
The tool also contains a function to allow it to be used for the direct evaluation of different offers during the tender evaluation stage.
When to use the tool?
You can use the tool at different stages in the procurement process:
At a preparatory stage:
To assess the LCC and/or pollutant emissions of your current solution. This can:
- Give you a baseline to work from,
- Identify the different cost elements relating to the product,
- Allow better communication of the benefits of new technologies, and
- Help define some general performance requirements for the new solutions.
To roughly assess different proposals to help develop a business case for investment decision making. It may also help to guide market engagement activities before tendering, or to narrow down the different technological solutions to be considered.
To compare the LCC and the anticipated pollutant emissions of different offers, during the evaluation phase. If the tool is used during this phase, the authority must ensure that the information provided by companies is accurate and comparable by:
- Defining in the tender set standards and test norms with experts and/or during market engagement, and
- Asking suppliers to provide evidence in support of the information provided, preferably third party verified.
To evaluate and communicate the LCC and pollutant emissions improvements of the purchased product, service or works in comparison to the current situation.
// Who should fill in the tool?
Who should fill in the tool?
Who within the contracting authority should be involved?
- The tool requires someone with knowledge of LCC and or/energy consumption and pollutant emissions to operate (for example, procurer, energy officer).
- When assessing your current situation, involve all departments which have relevant budgetary responsibilities (for example, covering energy costs, waste disposal).
- The authority may wish to further define the relevant cost positions for which supplier should provide information, or suppliers may be allowed to use their own cost models.
- Suppliers must be asked to provide evidence to support the costing and the information on pollutant emissions that they submit.
For support, please contact the sustainable procurement team at email@example.com or via phone at +49 761 3 68 92 0