The New Government Procurement Reform Act (NGPA) introduced a wholistic approach in procurement planning through the application of Lifecyle Assessment (LCA) and  Lifecycle Cost Analysis (LCCA) in managing government procurement taking into account all stages of the procurement project, from initial planning and acquisition , to the use, maintenance, and disposal. 

Section 13 mandates the procuring entity to apply LCA and LCCA in project planning, eligibility and selection criteria, or contract implementation to further support strategic procurement management and ensure smart and prudent use of government resources. It emphasizes the integration of sustainable practices into procurement processes by encouraging the use of LCA and LCCA. 

This approach aims to enhance project efficiency and sustainability by considering the environmental, social, and economic impacts throughout the entire lifecycle of a project, from production to disposal. By adopting LCA and LCCA, procuring entities can achieve significant cost savings through improved efficiency, reduced waste, and lower operational costs over time.  This holistic approach promotes the prudent use of government resources, ensuring that procurement decisions reflect a comprehensive understanding of long-term impacts and costs.

The detailed guidelines on effectively implementing the LCA and LCCA shall be issued by the Government Procurement Policy Board (GPPB) to facilitate the application of these principles in government procurement practices.

Stay tuned for the GPPB’s guidelines on how to implement LCA and LCCA effectively. Keep following us to know more about the NGPA!🔍

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