Application of Life Cycle Perspective Costing (LCC) Use in European Union (EU) as a Green Procurement Tool for Cost-effective Public Procurement in the Health sector, Sri Lanka: A Survey-based Study

Abstract

In Sri Lanka public procurement guidelines should be followed by all government agencies, when they are required to procure goods, works, and services. The Objective of such guidelines is to ensure the value for money of the process. The Ministry of Environment, Sri Lanka has issued a national policy on sustainable consumption and production for Sri Lanka. Two sections of this policy document are reserved for public procurement and Health sectors. According to the policy document, the Ministry of Health should ensure sustainable practices at all levels in the health sector to be transformed into green work set up by 2030. The policy suggests applying sustainable public procurement (SPP) practices in all sectors and for each product or service that has a significant cost-saving impact. This paper mainly discusses Life Cycle Perspective Cost (LCC) and other Green and Sustainable evaluation practices regulated in health sector institutes in the European Union (EU) and reviews the possible adoption of those green and sustainable concepts to public procurement processes in Sri Lanka for cost-effective Public Procurement. The Adoption of green would maximize the value of public money while minimizing damage to the environment and maximizing economic, and social benefits to the public health sector in Sri Lanka.