From today, April 30, when purchasing in the Prozorro system, customers will be able to apply a new criterion - the life cycle cost. This tool will allow you to take into account the future expenses associated with the further use of the procurement item, and determine the most cost-effective offer in the long run.

“The use of the new tool will be beneficial both for Ukrainian producers and for our state and its citizens. In particular, domestic producers will be able to compete with cheap foreign analogs and win large tenders from the state. And the state, in turn, will get better goods and services. In other words, the application of the value of the life cycle is an impetus both for the development of national production and for the quality of satisfying the state needs and the needs of Ukrainians,” commented Ihor Petrashko, Minister of Economic Development, Trade and Agriculture of Ukraine.

An example is the purchase of electric vehicles for the needs of cities. Thus, in order to determine the best offer, in addition to the price, it is necessary to take into account the costs of operation and maintenance, which include, in particular, maintenance costs, repair costs (spare parts, working hours), staff training costs, and disposal costs: transportation to the waste disposal company, the cost of processing and disposal of waste.

"In this case, even if the product has a slightly higher price, the Ukrainian manufacturer will benefit from lower associated costs," the Minister stressed.

Also, purchases with accounting the life-cycle will be profitable in cases of complex high-tech goods (for example, compressors, machines, engines, turbines, railway cars, cars and electric vehicles). Thus, the new tool will be of interest to such large state-owned companies and institutions as Ukrzaliznytsia, Naftogaz, Ukrenergo, Ukrposhta, Ukroboronprom, the State Emergency Service and others.

Several large customers have already expressed interest in using this tool, with whom Deputy Minister Svitlana Panaiotidi, the Department of Public Procurement of the Ministry of Economic Development, Trade and Agriculture and representatives of Prozorro held a meeting in mid-April.

The Ministry encourages customers to start announcing purchases using the life cycle cost criterion, and for business representatives to submit tenders that will promote the development of domestic production.