Innovation science and technologiy Volume 2 Issue 1 (2026) · pp. 383-386
ECONOMIC EFFICIENCY OF PUBLIC PROCUREMENT EVALUATION BASED ON TOTAL COST OF OWNERSHIP (TCO)
Turabov, Sarvar
Abstract
This article analyzes the economic efficiency of the Total Cost of Ownership (TCO) evaluationmethodology in public procurement. The study aims to highlight the theoretical foundations of the TCOmethodology, examine international best practices, and assess the prospects for its integration into the publicprocurement system of Uzbekistan, specifically within the framework of reforms initiated by PresidentialDecree No. DP-259. The research employs normative-legal, comparative institutional, and academic literatureanalysis approaches. The results demonstrate that the TCO methodology allows public procurement to beevaluated based not merely on the initial purchase price, but on the total expenditures incurred throughoutthe entire lifecycle of a product or service. Furthermore, the article substantiates the future possibilities ofintegrating 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 TCOmethodology will serve to enhance economic efficiency in public procurement, reduce hidden costs, andoptimize the quality of public fund utilization.
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.
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