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Choosing the most economically advantageous tender using a multi-criteria decision analysis approach

Choosing the most economically advantageous tender using a multi-criteria decision analysis approach The purpose of this paper is to propose and test a multi-criteria decision analysis (MCDA) approach based on an additive value function (AVF) to select the most economically advantageous tender under European Union public procurement regulations.Design/methodology/approachA case study in which the AVF tender evaluation model is constructed by the procurement personnel and the results of the original, real-life public procurement evaluation model are compared to those discovered by the MCDA approach.FindingsThe AVF model captures the preferences of the procurement authority in a more reliable and transparent manner than commonly used evaluation models based on scoring formulas.Practical implicationsWhile commonly used in public procurement, relative scoring formulas can neither present the preferences of a procurement unit accurately nor do they enable bidders to draft bids according to these preferences. The proposed MCDA approach can achieve both.Originality/valueThe contribution of this paper is threefold. First, the successful construction of the AVF model with procurement personnel is introduced. Second, the model is used in an actual, real-life case. Third, a thoughtful comparison of features, structures and results of the AVF model and the evaluation model using scoring formulas is presented. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Public Procurement Emerald Publishing

Choosing the most economically advantageous tender using a multi-criteria decision analysis approach

Lehtonen, Juha-Matti; Virtanen, Kai
Journal of Public Procurement , Volume 22 (2): 16 – Apr 14, 2022
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References (43)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1535-0118
DOI
10.1108/jopp-06-2021-0040
Publisher site
See Article on Publisher Site

Abstract

The purpose of this paper is to propose and test a multi-criteria decision analysis (MCDA) approach based on an additive value function (AVF) to select the most economically advantageous tender under European Union public procurement regulations.Design/methodology/approachA case study in which the AVF tender evaluation model is constructed by the procurement personnel and the results of the original, real-life public procurement evaluation model are compared to those discovered by the MCDA approach.FindingsThe AVF model captures the preferences of the procurement authority in a more reliable and transparent manner than commonly used evaluation models based on scoring formulas.Practical implicationsWhile commonly used in public procurement, relative scoring formulas can neither present the preferences of a procurement unit accurately nor do they enable bidders to draft bids according to these preferences. The proposed MCDA approach can achieve both.Originality/valueThe contribution of this paper is threefold. First, the successful construction of the AVF model with procurement personnel is introduced. Second, the model is used in an actual, real-life case. Third, a thoughtful comparison of features, structures and results of the AVF model and the evaluation model using scoring formulas is presented.

Journal

Journal of Public Procurement – Emerald Publishing

Published: Apr 14, 2022

Keywords: Procurement; Purchasing; Award criteria; Multi-criteria decision analysis

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