A qualitative bidder evaluation method – A new scoring method void of cardinal weight assignment

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Authors
  1. Kaluzny, B.L.
Corporate Authors
Defence R&D Canada - Centre for Operational Research and Analysis, Ottawa ON (CAN);Directorate Materiel Group Operational Research, Ottawa Ont (CAN)
Abstract
Director General Major Project Delivery Project Management Offices are called upon to develop fair, transparent and defensible bidder evaluation methods for major Crown procurement tenders. The traditional evaluation approach is to use an additive weighted scoring rule where evaluation criteria are established, rating functions are determined, and relative weights are assigned to the criteria. Bidders are then rated per criterion and scored using a product-sum of the weights times the ratings. The highest scoring bidder wins. This approach requires the pre-selection of criteria weights. Ideally these weights are arithmetically or objectively measured; however in most cases this is not possible. Lacking such measurements, the determination of appropriate weights that accurately reflect the decision maker’s priorities is known to be a cognitively demanding task — it is difficult to objectively quantify the relative importance of criteria. This paper presents an alternative: an additive weighted scoring method where the weights remain unexpressed. With qualitative bidder evaluation (QuBE) an ordinal ranking of the criteria is solicited and the winning option is determined by examining the sizes of the weight-subspaces associated with the set of all weight vectors respecting the criteria priority ordering. In addition to minimizing subjectivity, the method is transparent, fair, defensible, and reduces the possibility of bidder gaming.

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Keywords
Support to Acq and LCC;Qualitative Bidder Evaluation;QuBE;Multi Criteria Decision Analysis;MCDA;Polytope;Polysense;Bid evaluation;Ranking;Scoring Rule;Weight Allocation
Report Number
DRDC-CORA-TM-2010-007 — Technical Memorandum
Date of publication
01 Feb 2010
Number of Pages
44
DSTKIM No
CA036056
CANDIS No
535507
Format(s):
Electronic Document(PDF)

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