ECONOMIC EFFICIENCY OF PUBLIC PROCUREMENT EVALUATION BASED ON TOTAL COST OF OWNERSHIP (TCO)
DOI:
https://doi.org/10.5281/zenodo.22486000Abstract
This article analyzes the economic efficiency of the Total Cost of Ownership (TCO) evaluation
methodology in public procurement. The study aims to highlight the theoretical foundations of the TCO
methodology, examine international best practices, and assess the prospects for its integration into the public
procurement system of Uzbekistan, specifically within the framework of reforms initiated by Presidential
Decree No. DP-259. The research employs normative-legal, comparative institutional, and academic literature
analysis approaches. The results demonstrate that the TCO methodology allows public procurement to be
evaluated based not merely on the initial purchase price, but on the total expenditures incurred throughout
the entire lifecycle of a product or service. Furthermore, the article substantiates the future possibilities of
integrating AI-driven price monitoring and electronic control mechanisms, as stipulated in Decree No. DP-259,
into an advanced AI-TCO model. In conclusion, it is emphasized that the phased implementation of the TCO
methodology will serve to enhance economic efficiency in public procurement, reduce hidden costs, and
optimize the quality of public fund utilization.
Keywords
public procurement, total cost of ownership, life-cycle costs, economic efficiency, public administration, artificial intelligence, electronic procurement, digital monitoring, procurement evaluation system, most economically advantageous tender.References
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