PART 2

RULES APPLICABLE TO CONTRACTS
CHAPTER 3

CONDUCT OF THE PROCEDURE
SECTION 3

Choice of participants and award of contracts
SUB-SECTION 2

Award of the Contract

Life-cycle costing
81
1
Life-cycle costing must, to the extent relevant, cover part or all of the following costs over the life cycle of a product, service or works—
a
costs, borne by the utility or other users, such as—
i
costs relating to acquisition;
ii
costs of use, such as consumption of energy and other resources;
iii
maintenance costs;
iv
end of life costs, such as collection and recycling costs; and
b
costs imputed to environmental externalities linked to the works, product or service during its life cycle, provided their monetary value can be determined and verified.
2
The costs mentioned in paragraph (1)(b) may include the cost of emissions of greenhouse gases and of other pollutant emissions and other climate change mitigation costs.
3
The method used for the assessment of costs imputed to environmental externalities must fulfil all of the following conditions—
a
it is based on objectively verifiable and non-discriminatory criteria and, in particular, where it has not been established for repeated or continuous application, it must not unduly favour or disadvantage certain economic operators;
b
it is accessible to all interested parties;
c
the data required can be provided with reasonable effort by normally diligent economic operators ... .
4
Where a utility assesses costs using a life-cycle costing approach, the utility must indicate in the procurement documents—
a
the data to be provided by the tenderers; and
b
the method which the utility will use to determine the life-cycle costs on the basis of those data.
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Reg. 81 in force at 18.4.2016, see reg. 1(2)
Reg. 81(5)(6) omitted (31.12.2020) by virtue of The Public Procurement etc. (EU Exit) (Scotland) (Amendment) Regulations 2020 (S.S.I. 2020/468), regs. 1(2), 6(45)(b) (with sch. paras. 1-5)
Words in reg. 81(3)(c) omitted (31.12.2021) by virtue of The Public Procurement etc. (EU Exit) (Scotland) (Amendment) Regulations 2020 (S.S.I. 2020/468), regs. 1(4), 7(3) (with sch. paras. 1-5, 10-15)