W5- Ali Hubais – Using compensatory models in Bid Evaluation process


1. Problem Definition Refer to my Blog Positing in W4 we will be evaluating the received bid technically and commercially so that the approved bidders win the contract. Tender board technical committee is to evaluate the technical bid first so that the technical evaluation approved report will be submitted to commercial Team to open commercial bid of approved bidder technically.

2. Identify the Feasible Alternative Technical board committee decided to use the compensatory models to evaluate and rank the bidders in technical evaluation and this model will compose of the following.

  1. Non-dimensional Scaling
  2. The Additive Weighting Technique

3. Development of the Outcome for Alternative

The main area to Evaluation the bidders criteria are as follow and the below listed date are required:-

  • Bidder general information
  • Bidder Project Execution plan
  • Bidder Project organization
  • Bidder Quality assurance and Quality control
  • Bidder Health, safety and Security plan
  • Bidder Tenderer’s resources
  • Technical Expectation
  • Current commitment and workload
  • Experience and Track record

4. Selection Criteria The criteria of the feasible alternatives using no compensatory models as follow:

Criteria Category Bidder A Bidder B Bidder C Bidder D
Bidder general information Excellent Excellent Excellent Excellent
Bidder Project Execution plan Fair Excellent good fair
Bidder Project organization Good Excellent Poor fair
Bidder Quality assurance and Quality control Good Excellent good Poor
Bidder Health, safety & Security plan Fair Excellent Excellent fair
Bidder Tenderer’s resources Good Excellent good good
Technical Expectation Fair Excellent fair fair
Current commitment and workload Good Excellent good Poor
Experience and Track record Poor Excellent good good

Table 1 for Feasible Alternatives

5. Analysis and Comparison of the Alternative

Analysis and comparison of the alternatives as below tables:-

Criteria Category Value Dimensionless Value=( Relative Rank-1)/3
Bidder general information Excellent 1
Good 0.67
Fair 0.33
Poor 0
Bidder Project Execution plan Excellent 1
Good 0.67
Fair 0.33
Poor 0
Bidder Project organization Excellent 1
Good 0.67
Fair 0.33
Poor 0
Bidder Quality assurance and Quality control Excellent 1
Good 0.67
Fair 0.33
Poor 0
Bidder Health, safety and Security plan Excellent 1
Good 0.67
Fair 0.33
Poor 0
Bidder Tenderer’s resources Excellent 1
Good 0.67
Fair 0.33
Poor 0
Technical Expectation Excellent 1
Good 0.67
Fair 0.33
Poor 0
Current commitment and workload Excellent 1
Good 0.67
Fair 0.33
Poor 0
Experience and Track record Excellent 1
Good 0.67
Fair 0.33
Poor 0
Table-2 Non Dimensional Scale

 

 

Criteria Category Bidder A Bidder B Bidder C Bidder D
Bidder general information 1 1 1 1
Bidder Project Execution plan 0.33 1 0.67 0.33
Bidder Project organization 0.67 1 0 0.33
Bidder Quality assurance and Quality control 0.67 1 0.67 0
Bidder Health, safety and Security plan 0.33 1 1 0.33
Bidder Tenderer’s resources 0.67 1 0.67 1
Technical Expectation 0.33 1 0.33 0.33
Current commitment and workload 0.67 1 0.67 0
Experience and Track record 0 1 0.67 1
Sum 4.67 9 5.68 4.32
Table 3- Non Dimensional Data

 

Criteria Category Relative Rank Normalized Wight (A) Bidder A Bidder B Bidder C Bidder D
B A* B B A* B B A* B B A* B
Bidder general information 1 0.022 1 0.02 1 0.022 1 0.022 1 0.022
Bidder Project Execution plan 9 0.198 0.033 0.066 1 0.198 0.067 0.134 0.033 0.066
Bidder Project organization 8 0.176 0.067 0.12 1 0.176 0 0 0.033 0.058
Bidder Quality assurance and Quality control 7 0.154 0.067 0.09 1 0.154 0.067 0.104 0 0
Bidder Health, safety and Security plan 6 0.132 0.033 0.07 1 0.132 1 0.111 0.033 0.022
Bidder Tenderer’s resources 5 0.110 0.067 0.12 1 0.110 0.067 0.074 1 0.111
Technical Expectation 4 0.088 0.033 0.07 1 0.088 0.033 0.059 0.033 0.022
Current commitment and workload 3 0.066 0.067 0.12 1 0.066 0.067 0.119 0 0
Experience and Track record 2 0.044 0 0 1 0.044 0.067 0.044 1 0.044
Sum 45 1.000 1.367 0.67 9 1.000 2.368 0.667 3.132 0.345
Table 3- Non Dimensional Data

 

 

 

6. Selection of the Preferred Alternative

The using of Non Dimensional Scale and Additive Weighting Technique it shows that Bidder (B) record as the best bidder score in the technical evaluation and based on that technical evacuation bidder B is the best to select.

7. Performance Monitoring and the Post Evaluation of Result

Technical evaluation is the heart of tender where it shows the capability of each bidder performance in previous record as well the back history of each evaluated bidder and the planning and arrangement as well the settlement to Performa the project of tender or contract.

8. Reference:

  1. TRIANUGROHO, A. (2014, March 27). W5_Andi_Decision Making Compensatory Models |Kristal AACE 2014. Retrieved July 10, 2014, from http://kristalaace2014.wordpress.com/2014/03/27/w5_andi_decision-making-compensatory-models/
  2. Sullivan Wicks Koelling, Engineering Economy (fifteenth Edition). Prentice Hall Retrieved July 10, 2014, from http://www.decisionanalyst.com/publ_art/decisionmaking.dai
  3. No compensatory and Compensatory Model Retrieved July 10,2014 From http://www.youtube.com/watch?v=CKM9u65kZHg

 

 

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2 thoughts on “W5- Ali Hubais – Using compensatory models in Bid Evaluation process

  1. AWESOME again, Ali!! Nice job on this and not only will knowing this technique help you pass your PMP Exam, but am POSITIVE that it will help you in your day to day working environment.

    This a VERY powerful tool for making better decisions where money is not the ONLY criteria.

    Now let’s see you help Mahfoodah produce a really impressive report this week. I promise that not only will it help you prepare for your PMP exam, but it will also help you better manage your projects.

    BR,
    Dr. PDG, Jakarta

  2. Pingback: W3_ MAH Shamsi _ Using compensatory models in Bid Technical Evaluation process – pmioocep16

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