Multicriteria approach to select the most economically advantageous tender

2019 ◽  
Vol 19 (3) ◽  
pp. 201-223 ◽  
Author(s):  
Gabriella Marcarelli ◽  
Andrea Nappi
Keyword(s):  
Public Management ◽  
Selection Process ◽  
Public Procurement ◽  
Cost Savings ◽  
Cost Ratio ◽  
Cost Models ◽  
European Union Law ◽  
Content Type ◽  
Qualitative And Quantitative

Purpose This paper aims to show how the proposed approach (two analytic hierarchy process [AHP] models) may allow dealing with the best tender selection process in an organic and simple way and ensure the consistency check of the judgements, the necessary step for having reliable results. At first, this paper highlights some critical issues regarding the weighted sum model (WSM) and the algorithms frequently used to evaluate the most economic advantageous tender. Then, it proposes to extend the AHP approach to the evaluation of both the qualitative and quantitative components of a public procurement award. Finally, the WSM and the AHP are applied to the same case study to show, step by step, some criticisms of the former and some advantages of the latter. Design/methodology/approach This paper proposes to apply two AHP models to evaluate both qualitative and quantitative components of a public tender. The quality and cost models allow to identify and select the tender associated with the highest quality/cost ratio. Findings The assessment of the WSM and the AHP models, and some differences between them, build upon their application as an example of public procurement. A case study is used as a teaching device (Yin, 2003) to highlight why the AHP may provide different results. In particular, an important issue concerning the evaluation of qualitative requirements is explored: the consistency of judgements expressed by the committee members. Social implications This approach provides analytical tools for public management that allow appropriate implementation of their management function and allow a realisation of the strategic objectives of European Union law and Italian legislation on public procurement. It would help managers to prioritise their goals and criteria and evaluate them in a scientific way. The model integrates multiple qualitative and quantitative criteria, simplifies the selection process, achieves optimal use of funds and leads to cost savings. It allows to reduce the discretional power of both the contracting issuer, in the choice of the formula to adopt for calculating the coefficients, and the committee members, allowing tender evaluation to have more trust and ensure the fairness of public procurement matters and quality of the object purchased. Originality/value This paper proposes the use of two hierarchical models to evaluate qualitative and quantitative requirements and provide the ranking among several tenders.

Broader outcomes in procurement policy – a case of New Zealand pragmatism

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Barbara Allen
Keyword(s):  
New Zealand ◽  
Public Management ◽  
Public Procurement ◽  
Content Type ◽  
Procurement Policy ◽  
Similar Work ◽  
Starting Point ◽  
Policy Lever ◽  
High Level

Purpose The purpose of this paper is to investigate how the underpinning ideas of public procurement allowed for broader outcomes – a more strategic form of public procurement – to emerge. The paper contributes to the literature on public procurement by empirically addressing the evolution of procurement as a government policy lever in New Zealand so as to demonstrate how policy pragmatism can ensure a shift without a complete overhaul of a complex system. Design/methodology/approach The paper has used a single country case study to examine a recent development in procurement policy. The objectives of the paper are achieved by adopting a unique conceptual framework connecting ideas, sensemaking and bricolage. Findings The paper provides empirical and conceptual insights about how bricolage, or policy pragmatism, aids in dealing with the constraints of ideational legacies. It demonstrates a particular form of targeting in procurement, common in public administration but not well understood in the procurement field. Research limitations/implications Single country case studies lack scientific generalizability. However, they add to the canon of knowledge that is lacking in the field of public procurement in this case. They also provide a stronger starting point for further research especially with respect to comparative studies. Practical implications The paper provides an excellent example of the development of procurement policy that is useful for procurement officials from other countries undergoing change or looking to update or create procurement policies. It shows a high-level process of implementation for government priority outcomes from a country well-known for its quality of public management and governance. Social implications New Zealand has significant equity issues especially as related to its indigenous population. Procurement is being used increasingly as a lever to improve equity. This article includes information about New Zealand's uptake of social procurement. Originality/value This paper fulfils a need for greater understanding of how policy is “put together” and the dynamics at major points of change or the implications of policy changes. To the best of the author’s knowledge, this case study of procurement policy in New Zealand is original, and the author is aware of no other similar work emanating from New Zealand in the academic journals.

Systemic corruption and public procurement in developing countries: are there any solutions?

2018 ◽  
Vol 18 (2) ◽  
pp. 131-147 ◽  
Author(s):  
Sope Williams-Elegbe
Keyword(s):  
Quality Of Life ◽  
Developing Countries ◽  
Design Methodology ◽  
Public Procurement ◽  
Content Type ◽  
Asymmetry Of Information ◽  
Culture Of Silence ◽  
Systemic Corruption

Purpose Corruption affects development and quality of life of citizens in affected countries. The increase in anti-corruption measures globally reflects a consensus that corruption is pervasive and costly. Public procurement is one area in which corruption manifests because of the sums of money involved; the asymmetry of information; and the bureaucratic nature of decision-making, which presents opportunities for abuse. In developing countries, procurement corruption is rife because of institutional weaknesses, lack of enforced accountability mechanisms and culture of silence in relation to public sector malfeasance. Design/methodology/approach This paper examines procurement corruption in countries with systemic corruption, using Nigeria as a case study, to determine how to reduce public procurement corruption. Findings The paper will highlight prevalent corrupt schemes in public procurement in Nigeria, examine the reasons for the failure of state anti-corruption institutions and analyze the kinds of initiatives that reduced procurement corruption and increased accountability in other countries and the utility of adopting such mechanisms in the Nigerian context.

Improving logistics supplier selection process using lean six sigma – an action research case study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Huay Ling Tay ◽  
Hui Sen Aw
Keyword(s):  
Health Care ◽  
Six Sigma ◽  
Supplier Selection ◽  
Selection Process ◽  
Lean Six Sigma ◽  
Content Type ◽  
Logistics Services ◽  
Health Care Company ◽  
Care Company

Purpose Outsourcing logistical activities have become a widely used approach for firms to avoid high fixed costs and heavy investment requirements and to achieve competitive advantages. Lean six sigma (LSS) has been accepted globally across sectors as a management strategy for achieving process excellence. The purpose of this paper is to feature the application of LSS for improving the supplier selection process (SSP) of outsourced logistics services in a multinational health-care company. Design/methodology/approach This study is based on an action research case study conducted on the SSP of the freight and distribution department in a multinational health-care company. This paper reports on the application of the LSS define-measure-analyze-improve-control (DMAIC) approach for reducing supplier selection lead time. Findings The study features a real-world case study of the LSS DMAIC application to improve the supplier selection process of a large health-care company. The key issues that were identified are lack of information visibility, top-down changes and unclear communication lines. To counteract these three root causes, the lean six sigma techniques that are implemented are the 5S, stakeholder analysis and standard operating procedure. Research limitations/implications This research provided empirical evidence of how practical challenges in SSP can be managed with the use of LSS. It further proposed plausible solutions for reducing and sustaining improved outcomes. As the study is limited to one case, the validity of the results can be improved by including more organisations and more case studies from other similar organisations. Originality/value Research in supplier selection processes rarely links continuous improvement ideology such as LSS to support strategic selection and procurement of logistics services. This paper could serve as a resource for both practitioners to derive useful implications and to academicians as it contributes to the LSS body of knowledge for further theory testing.

Estimation of procurement costs incurred by public customers: a case study of a Russian region

2018 ◽  
Vol 18 (1) ◽  
pp. 68-87
Author(s):  
Andrei Yakovlev ◽  
Olga Balaeva ◽  
Andrey Tkachenko
Keyword(s):  
Public Procurement ◽  
Methodological Approach ◽  
Policy Implications ◽  
Cost Evaluation ◽  
Content Type ◽  
Russian Region ◽  
Procurement Cost ◽  
Procurement System ◽  
The Cost

Purpose This paper aims to measure the cost of procurement because public procurement procedures prescribed by legislation not only enhance transparency and competition but also entail certain transaction costs for both customers and suppliers. Design/methodology/approach These costs are important to the efficiency of the procurement system. However, very few previous studies have focused on estimating procurement costs. This paper proposes a methodology for public procurement cost evaluation. Findings This paper shows how procurement costs can be calculated using a formalized survey of public customers. This methodology was tested with a representative group of public customers operating in one region of the Russian Federation. Originality/value The authors formulate the policy implications of this paper, as they relate to the improvement of public procurement regulations and argue that this methodological approach can be applied in other developing and transitioning economies.

Public procurement and competitiveness of women-owned businesses: a structural equation model (SEM) for gender-responsive procurement in Uganda

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pross Nagitta Oluka ◽  
Michael Okoche ◽  
Godfrey Mugurusi
Keyword(s):  
Significant Influence ◽  
Structural Equation ◽  
Selection Process ◽  
Public Procurement ◽  
Evaluation Criteria ◽  
Survey Method ◽  
Contract Management ◽  
Women Empowerment ◽  
Content Type ◽  
Procurement Policy

PurposeSeveral intergovernmental organizations claim that the involvement of women in public procurement has a direct impact on sustainable development and growth, especially in the developing world, yet we know very little of such claim. This study aims to empirically examine how public procurement can contribute to women empowerment by boosting the competitiveness of women-owned businesses (WOBs) in Uganda.Design/methodology/approachIn this study, a cross-sectional survey method is used. Quantitative data were gathered from a sample of 371 respondents in Ministries, Departments and Agencies (MDAs) and a section of women entrepreneurs in Uganda's capital Kampala. From the literature review, six hypotheses were formulated and tested using structural equation modelling (SEM). A research model is developed and presented.FindingsAll hypotheses, except for one, were supported. Procurement policy had a significant influence on evaluation criteria, contract management and most importantly, on the competitiveness of WOBs. Within the procurement process, evaluation criteria had a significant influence on the competitiveness of WOBs, while the influence of contract management on competitiveness of WOBs was not statistically significant. We, therefore, concluded that public procurement can indeed enhance women empowerment through a gender-responsive procurement policy. Above all, pre-contract award interventions such as streamlining evaluation criteria to ease access of WOBs to public procurement contracts seem have the most significant impact to competitiveness of WOBs compared to post-ward interventions during contract management.Originality/valueThis study offers a research-based model that articulates the role of procurement policy as an enabler for competitiveness of WOBs in developing countries. The model proposes a combination of both policy (a direct influence) and interventions in the supplier selection process (an indirect influence) to boost the competitiveness of WOBs.

A dynamic performance management approach to frame corruption in public procurement: a case study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Salvatore Gnoffo
Keyword(s):  
Performance Management ◽  
Local Governments ◽  
Public Procurement ◽  
Dynamic Performance ◽  
Decision Makers ◽  
Risk Indicators ◽  
Management Approach ◽  
Extensive Literature ◽  
Content Type

Purpose The purpose of this paper is to frame the causal relationships between corruption in public procurement and performance of local governments. Design/methodology/approach An outcome-based dynamic performance management approach is adopted to explore a representative case study of a small Italian municipality. The model is based on three sources: qualitative primary data generated by face-to-face convergent interviews; secondary data retrieved from documents describing legal cases linked to procurement and open-access repositories; and an extensive literature review. Findings Emphasizing the role of community civic morality systemically may help to understand some counterintuitive results in the past research and support decision-makers and policymakers in setting effective strategies to curb the associated negative implications. Social implications A dynamic approach of performance management aimed at framing corruption in public procurement may guide policymakers and decision-makers in keeping their “cognitive radar” constantly active, in a way to detect emerging corruptive phenomena that could be otherwise ignored by normal diagnostical approaches. It may also help to promote organizational ethical learning and improve community outcomes. Originality/value This research provides a causal and systemic framework of relationships involving local government performance and wrongdoings in public procurement, by including performance risk indicators linked to structural and individualistic causes of corruption.

Diagnosis of degradation state of the historic building facade through qualitative and quantitative indicators: case study of the Former School of Agronomy Eliseu Maciel

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vitória Silveira da Costa ◽  
Ariela da Silva Torres
Keyword(s):  
Low Cost ◽  
The State ◽  
Content Type ◽  
Qualitative And Quantitative ◽  
Photographic Survey ◽  
Quantitative Indicators ◽  
The City ◽  
Damage Map ◽  
Degradation Measurement

PurposeIn Brazil, the city of Pelotas experienced an economic apex between the end of the nineteenth century and the beginning of the twentieth century, reflecting in the construction of several buildings. The aim of this article is to evaluate the state of degradation of the facades of the Old School of Agronomy Eliseu Maciel, using qualitative and quantitative indicators.Design/methodology/approachThe study was divided into visual and photographic survey, damage map and subsequent application of the Degradation Measurement Method (MMD) and the Element Performance Index (Ip). Taking into consideration the evaluation of the building: through historical research and survey of damages. Finally, the building was framed at a level of degradation.FindingsBy calculating the average damage between the methods – damage map, MMD and Ip – a more faithful representation of the damage was obtained, since the values become balanced. The results show the potential of the use of the methods in the analysis of pathological manifestations in facades.Originality/valueThe originality of this article refers to the use of methods for evaluation of historical buildings. The authors believe that the methods described applied jointly provide the results about the state of degradation through nondestructive and low-cost analyses. The methods of surveying damage to Brazilian heritage are a little researched area. This work will hopefully be engaged by academics and professionals to help establish and promote broad government interest and investments.

Maintenance policy selection model – a case study in the palm oil industry

2014 ◽  
Vol 25 (3) ◽  
pp. 415-435 ◽  
Author(s):  
Siew-Hong Ding ◽  
Shahrul Kamaruddin ◽  
Ishak Abdul Azid
Keyword(s):  
Palm Oil ◽  
Selection Process ◽  
Oil Industry ◽  
Second Phase ◽  
Maintenance Policy ◽  
Content Type ◽  
Policy Selection ◽  
Optimal Maintenance ◽  
Optimal Maintenance Policy

Purpose – An optimal maintenance policy is key to the improvement of the availability and reliability of a system at an acceptable level without a significant increase in investment. However, the selection process is a complicated task because it requires in-depth knowledge on maintenance policies and on the technical requirements of maintenance. The difficulties and complexity of the selection process arise from the combination of conflicting maintenance constraints such as available spares, size of workforce, and maintenance skills. The paper aims to discuss these issues. Design/methodology/approach – The proposed maintenance policy selection (MPS) model is separated into three major phases. The first phase identifies the critical system (CS) based on failure frequency. The failure mechanism in the CS is then analyzed by using a failure mode and effect analysis in the second phase. In the third phase, a multi-criteria decision making method, called the technique for order of preference by similarity to ideal solution, is adopted to identify an optimal maintenance policy that can minimize the failures. Findings – Through a case study, preventive maintenance was selected as the optimal maintenance policy for the reduction of system failures. The results obtained from the case study not only provide evidence of the feasibility and practicability of the developed model, but also test the acceptability and rationale of the developed model from the industry perspective. Valuable knowledge and experience from employees were extracted and utilized through the proposed model to rank the optimal maintenance policy based on the capability to reduce failure. Originality/value – The practicality of the MPS model is justified through an implementation in the palm oil industry. The application of the MPS model can also be extended to other manufacturing industries.

Accountants as institutional entrepreneurs: changing routines in a telecommunications company

2014 ◽  
Vol 11 (3) ◽  
pp. 190-214 ◽  
Author(s):  
Umesh Sharma ◽  
Stewart Lawrence ◽  
Alan Lowe
Keyword(s):  
Public Management ◽  
New Public Management ◽  
Single Case ◽  
Content Type ◽  
State Sector ◽  
Institutional Entrepreneurs ◽  
Agents Of Change ◽  
Telecommunications Company

Purpose – The purpose of this paper is to explicate the role of institutional entrepreneurs who use accounting technology to accomplish change within a privatised telecommunications company. Design/methodology – The case study method is adopted. The authors draw on recent extension to institutional theory that gives greater emphasis to agency including concepts such as embeddedness, institutional entrepreneurs and institutional contradiction. Findings – As part of the consequences of new public management reforms, we illustrate how institutional entrepreneurs de-established an older state-run bureaucratic and engineering-based routine and replaced it with a business- and accounting-based routine. Eventually, new accounting routines were reproduced and taken for granted by telecommunications management and employees. Research Limitations/implications – As this study is limited to a single case study, no generalisation except to theory can be made. There are implications for privatisation of state sector organisations both locally and internationally. Originality/value – The paper makes a contribution to elaborating the role of institutional entrepreneurs as agents of change towards privatisation and how accounting was used as a technology of change.

Implementing the open-source Koha-ILS at the Deutsche Schule Charlotte

2016 ◽  
Vol 32 (4) ◽  
pp. 253-269 ◽  
Author(s):  
Martin D. House
Keyword(s):  
Open Source ◽  
Selection Process ◽  
Single Case ◽  
Good Alternative ◽  
Lessons Learned ◽  
Online Support ◽  
Successful Implementation ◽  
Web Based ◽  
Content Type

Purpose This study aims to present the successful implementation of the Koha-integrated library system (ILS) for libraries that seek an open-source alternative. This study is best suited for small libraries with limited collections and limited funding. The selection process between Koha and Evergreen is described, as is cataloging, patron setup and library workflow changes. Finally, lessons learned are presented. Design/methodology/approach This is a case study which describes the events as they occurred between 2013 and 2014. Findings The Koha-ILS appears to be the open-source system with the most online support, easiest to install and manage. Although the experience of libraries may vary, the Deutsche Schule Charlotte library took the pragmatic approach. Koha was chosen because it could be successfully installed, had an intuitive and web-based interface and could be easily explained to volunteers. Research limitations/implications This is a single case study at a very small library. Practical implications This study broadly demonstrates the requirements for implementing the Koha-ILS and how it can be accomplished even with library volunteers. Social implications The Koha-ILS can be a good alternative, despite limitations, for small libraries who need a robust ILS system with few bells and whistles. Originality/value This study presents a finite view of the implementation and use of the Koha-ILS. The physical setting, availability of capable volunteers and administration’s willingness to experiment with a system may not be reproducible in other locales.

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