Sunday, February 26, 2017

Life Cycle Cost

L-R: Supriyo Bagchi, S Neogy, A Ganguly, Jonathan Ward, me, Mehnaz
Ansari, Lauren Ziegler

Yesterday, a delegation from the U.S. Trade and Development Agency (USTDA) came to Hidco to discuss about their Global Procurement Initiative (GPI) and progress in establishing a GPI program in India.  USTDA’s Manager for Global Programs Lauren Ziegler and USTDA Country Representative Mehnaz Ansari were in Hidco Bhavan.

The GPI is about understanding better the total cost of ownership of goods and services for infrastructure projects. The GPI  would provide access to world class procurement experts from George Washington University Law School’s Government Procurement Law Program.

I mentioned that we were taking life-cycle costs (life here means 15 years) in certain programmes like Sewage Treatment Plants. For roads etc, we insist on 3 years' guarantee. But I agreed that a scientific methodology needs to be adopted so that we don't end up buying a cheaper equipment and end up paying large operation costs.
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Khabar 365 dt 26 Feb 2017

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