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Post-objective determination of weights of the evaluation factors in public procurement tenders

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  • Lorentziadis, Panos L.

Abstract

In public procurement tenders the awarding criterion of the most economically advantageous bid employs weights to aggregate the numerical scores assigned to each proposal with respect to different evaluation factors. Typically these weights are fixed and subjectively set in advance. Methods, which objectively determine the weights after the opening of the sealed bids on the basis of the most or least favorable weights for each proposal, are developed. Post-objective methods of weight determination are shown to enhance the integrity of the evaluation process and to limit corruption in a public tender. The connection of Data Envelopment Analysis, which has been extensively applied to measure supplier efficiency, with the developed methods, is explored. Average least and most favorable weights are derived and optimal bidding strategies in this setting are presented.

Suggested Citation

  • Lorentziadis, Panos L., 2010. "Post-objective determination of weights of the evaluation factors in public procurement tenders," European Journal of Operational Research, Elsevier, vol. 200(1), pages 261-267, January.
    • Handle: RePEc:eee:ejores:v:200:y:2010:i:1:p:261-267
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    2. Falagario, Marco & Sciancalepore, Fabio & Costantino, Nicola & Pietroforte, Roberto, 2012. "Using a DEA-cross efficiency approach in public procurement tenders," European Journal of Operational Research, Elsevier, vol. 218(2), pages 523-529.
    3. Wang, Hong, 2013. "Contingent payment auction mechanism in multidimensional procurement auctions," European Journal of Operational Research, Elsevier, vol. 224(2), pages 404-413.
    4. Štěpán Veselý & Mirko Dohnal, 2012. "Decision making in goverment tenders: A formalized qualitative model," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 60(4), pages 397-406.
    5. Otso Massala & Ilia Tsetlin, 2015. "Search Before Trade-offs Are Known," Decision Analysis, INFORMS, vol. 12(3), pages 105-121.
    6. Lorentziadis, Panos L., 2016. "Optimal bidding in auctions from a game theory perspective," European Journal of Operational Research, Elsevier, vol. 248(2), pages 347-371.
    7. Lorentziadis, Panos L., 2020. "Competitive bidding in asymmetric multidimensional public procurement," European Journal of Operational Research, Elsevier, vol. 282(1), pages 211-220.
    8. Di Corato, Luca & Dosi, Cesare & Moretto, Michele, 2018. "Multidimensional auctions for long-term procurement contracts with early-exit options: The case of conservation contracts," European Journal of Operational Research, Elsevier, vol. 267(1), pages 368-380.
    9. Arnold, Ulli & Neubauer, Joerg & Schoenherr, Tobias, 2012. "Explicating factors for companies’ inclination towards corruption in Operations and supply chain management: An exploratory study in Germany," International Journal of Production Economics, Elsevier, vol. 138(1), pages 136-147.
    10. Wang, Hong, 2020. "Quality manipulation and limit corruption in competitive procurement," European Journal of Operational Research, Elsevier, vol. 283(3), pages 1124-1135.
    11. Martínez, Ricardo & Sánchez-Soriano, Joaquín & Llorca, Natividad, 2022. "Assessments in public procurement procedures," Omega, Elsevier, vol. 111(C).

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