Life Cycle in Public Procurement 2026

Definition: In public procurement, the life cycle refers to all successive or interconnected phases of a product, works or service – from raw-material extraction through manufacture, distribution, use and maintenance to disposal or recycling – and forms the basis for an economically and ecologically holistic procurement decision.

Last updated: January 2026 · Legal basis: Directive 2014/24/EU Art. 68, BVergG 2018, GWB § 97 (3)

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What is the life cycle in public procurement?

The concept of the life cycle extends the classic consideration of the cheapest bid price to include all costs and environmental impacts arising over the entire useful life of a procurement item. The 2014 EU procurement directives expressly introduced the life cycle as an evaluation standard into European procurement law for the first time (Art. 68 Directive 2014/24/EU). This laid the foundation for managing public procurement no longer solely on the basis of purchase price but on the basis of holistic economic considerations.

Phases of the life cycle

A complete life cycle covers all stages of a product or works from creation to the end of its useful life.

The main phases are:

1. Raw-material extraction and pre-production – Extraction and processing of input materials
2. Manufacture and production – Production of the final product
3. Transport and distribution – Logistics through to delivery to the contracting authority
4. Use and operation – Ongoing operating costs, energy consumption, maintenance
5. Maintenance and repair – Upkeep measures during useful life
6. Disposal and recovery – Dismantling, recycling, disposal

Phases 4 to 6 are particularly relevant in public procurement law, as it is here that the largest costs often arise, costs that remain invisible in a pure price comparison.

Legal significance

The inclusion of the life cycle in bid evaluation has, since the implementation of the 2014 EU procurement directives, been a recognised and, in certain areas, mandatory instrument of public procurement.

Art. 68 of Directive 2014/24/EU permits contracting authorities to use life-cycle costs as an award criterion. In Austria, this is anchored in § 79 BVergG 2018; in Germany, in § 59 VgV. For certain vehicle categories, Directive 2009/33/EC (Clean Vehicles Directive) even prescribes a mandatory life-cycle consideration.

Significance for sustainable procurement

Life-cycle assessment is the central instrument for systematically integrating sustainability aspects into the award of contracts in a manner compliant with public procurement law.

By including the entire life cycle, contracting authorities can:

• Monetise environmental costs (emissions, resource consumption) and use them as award criteria
• Give preference to higher-quality, more durable products
• Pursue overall economic efficiency rather than short-term price optimisation

Related terms

• Life-cycle costs
• Life-cycle costing
• Award criteria

FAQ

Must the life cycle be taken into account in every tender? No, life-cycle assessment is generally optional – except for certain vehicle categories under the Clean Vehicles Directive. The contracting authority is, however, free to set it as an award criterion.

How is the life cycle reflected in bid evaluation? Through life-cycle costing, which combines external costs (e.g. CO₂ emissions) and internal operating costs into a single overall cost figure.

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Last updated: January 2026 All information provided without guarantee. For legally binding advice, please consult a law firm specialising in public procurement law.