How to include lifecycle cost in bid scoring

Set the evaluation period and cost items before bidding. Separate supplier data from operating assumptions and apply one comparison method to every offer.

21 June 2026Updated 23 September 2026

Short answer

Set the evaluation period, scope and scoring method before bids arrive. For purchase, installation, energy, maintenance and parts, state a source or assumption for each input; base operating use on your records. Apply one formula to all bids and add sensitivity comparisons for uncertain inputs.

If lifecycle cost will be scored, define evaluation period, included expenses and formula in the procurement documents beforehand. Do not base the period on a universal equipment-life claim.

Request sourced data from bidders for price, installation, warranty scope, maintenance and parts. Add operating inputs such as energy and use frequency from your own meters, invoices and route records.

Apply the same assumptions and formula to every bid. Label non-price inputs as verified data or estimates; record whether changing assumptions alters the ranking.

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