Change in the European directive about public bids and the product life cycle impact: A case study

Objectives: In this case study for the purchase of specific printing consumables made by government departments, we will implement a comparison of the real costs of a supply model life cycle with the lowest supplied price; and of a supply model with the economically most profitable demand price, using the method of purchasing printing consumables recommended by the Toner Remanufacturers Association, as negotiated by the Czech Chamber of Commerce and the Ministry of Regional Development.

Data: Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 (Directive 2014/24/EU) cancels Directive 2004/18/EC of the European Parliament and of the Council of 31 March 2004 on the coordination of procedures for the award of public works contracts, public supply contracts and public service contracts, and replaces this directive with new wording that takes effect as of 17 April 2014, obliging member states to incorporate this directive into national law by 17 April 2016. When competing for public contracts, Directive 2014/24/EU requires the use of lifecycle economic advantage and allows creation of methodical instructions of national ministries that are specific to a particular area. Directive 2014/24/EU was incorporated into the national legislation of the Czech Republic by Public Contracts Acts from 19 April 2016.

As per new legislation, the economic profitability of the individual offers is evaluated by the most profitable price versus quality, with life cycle related costs being part of quality. Product life cycle encompasses all successive or related phases of product usage even if they are not part of the material essence of the product.

Methodical instruction on the purchase of printing consumables uses the method of multiple-criteria decision analysis to define the economic profitability of an offer where the individual criteria are the lowest price offered; the lowest environmental aspects, consisting of the need for primary natural resources, waste disposal and carbon emissions; social aspects of job creation for groups jeopardized by the labour market; and services related to the collection of used printing consumables. To determine the real economic profitability, we will use the methods of multiple-criteria decision analysis, qualified estimation, and input-output analysis.

Expected results: Verification of correctness of the method for purchasing printing consumables according to the Toner Remanufacturers Association, negotiated by the Czech Chamber of Commerce and the Ministry of Regional Development, by calculating the real printing consumables life cycle costs in this case study of a realized purchase.