Business Pitch Dictionary by pitch.dog
Procurement evaluation & award · Core

Total cost of ownership

Also called: TCO

ELI5

The full defined cost of acquiring, operating, supporting and disposing of an asset or service.

Used in conversation

“The RFP must state how total cost of ownership will be evaluated.”

Pitch context

You will see “Total cost of ownership” in operating plans, procurement packs, supplier reviews and supply-chain reports when the discussion reaches procurement evaluation & award.

Why it matters: In procurement evaluation & award, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Sources & evidence · 3

Direct term-level sources and supporting source families.