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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.

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.

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.

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.

This paper proposes the use of two hierarchical models to evaluate qualitative and quantitative requirements and provide the ranking among several tenders.

This paper aims to investigate the role of micro, small and medium enterprises (MSMEs) within the Canadian public procurement, by seeking to identify barriers and supporting factors of MSMEs’ participation and success in public tenders.

The empirical analysis builds on a unique survey run by the Canadian federal government, which addressed firms either participating or not participating in public tenders. Model estimation on the survey data relies on sample selection methodologies, which allow separating determinants of MSMEs’ decision to participate from determinants of success.

Results provide evidence that costs stemming from asset specificity and uncertainty (e.g. costs of bidding, requirements for participation, bundling of contracts and award rules based on minimum price) affect participation in public procurement. Within MSMEs, micro-firms are the most discouraged from participating. However, after controlling for factors affecting participation, micro-firms emerge as having a higher success rate, possibly because of high specialization and joint participation with larger firms.

Because of the cross-sectional nature of the data used for hypotheses testing, endogeneity may arise if ex post variables affect ex ante decisions. This may apply if participation in procurement feeds on success in past tenders.

Findings may inform policies for the inclusion of smaller firms in the public marketplace.

To the best of the authors’ knowledge, this study is the first attempting to disentangle determinants of participation in public tenders from determinants of success. Separating the two aspects helps fine-tune SME-friendly public procurement policies, by identifying actions that effectively facilitate success of MSMEs in public tenders.

Stimulating innovation in projects can contribute to achieving policy goals, addressing societal challenges and meeting objectives within programs and projects. Despite their potential, innovations are rarely included in tender assignments and evaluated in the award of civil engineering projects. One explanation for this is the perceived difficulty in triggering and objectively assessing innovations in the awarding of projects. The aim of this paper is to develop, implement and evaluated a method to encourage and assess innovations in the awarding of bridge construction projects to address this problem.

A design science research (DSR) approach is used to develop, implement and evaluate a method to trigger and assess innovations in tenders for bridge projects. DSR approaches are used to develop “well-tested, well-understood and well documented innovative generic designs, dealing with authentic field problems or opportunities” (van Aken et al., 2016).

The findings show that the application of the developed method in a bridge project led to the inclusion of a broad range of innovations in the tender offers. Despite the broad support for the defined criteria, there were some differences in the way the criteria were interpreted by the public procurement team and by the tenderers. Despite these differences, no legal claims were filed in court.

Further development and wider adoption of the method is likely to have a positive impact on the application of innovations in bridge projects. With some adjustments, the method would also be appropriate for other civil engineering and construction projects.

This paper contributes to the discussion on how the terms innovation and innovativeness can be operationalized and used in the literature and practice. The developed method provides definitions for assessing the degree as well as the level of innovations in tenders for bridge projects. Further, it provides a way to rank innovations and determine the additional value of the offered innovations in terms of a notional reduction in tender price. Finally, it provides insights into how to encourage innovations through public procurement in civil engineering projects.

The purpose of this paper is to examine the transaction costs involved in managing procurement contracts in the public sector, particularly at the lower and higher level of local governments from the clients’ perspective.

The paper uses new institutional economics, specifically the transaction cost approach. A multiple case study design was used, in which five local government authorities (LGAs) were selected from the Kigoma and Tanga regions of Tanzania. Interviews with heads of procurement management units, focus groups and secondary sources were used to collect information for lower level LGAs.

Very high information, negotiation and monitoring transaction costs were revealed at the post-contractual stage for higher levels of local government in all cases. Transaction costs were associated with institutional problems, lack of financial resources and attitudes towards accountability, transparency and competition. It was also found that lower levels of local government are faced with very high transaction costs for all procurement stages due to a lack of procurement contract management capacity among ward and village procurement project committees, low levels of support from higher level LGAs, a lack of simple Swahili-standardised documents and guidelines for lower level procurement contract management which reflect current legal issues and the lack of a legal framework for procurement at the lower level of local government. These costs are associated with poor accountability and a lack of competition, transparency and efficiency throughout public procurement chains.

There is no estimate for quantitative approaches, because it is was difficult to measure transaction costs associated with accountability, transparency and efficiency.

The paper contributes knowledge on qualitative levels of transaction costs for procurement contract management for both higher and lower levels of LGAs from the clients’ viewpoint.

Early contractor involvement (ECI) faces many barriers when it is implemented in public procurement, given that it is different from traditional business practices. Primarily, public owners face a major challenge, as they should treat all bidders equally. The purpose of this paper is to explore suitable ECI approaches that public owners could use.

In addition to a literature and document study, 14 semi-structured in-depth interviews with key personnel from 11 cases selected from Norwegian public bridge projects were carried out.

In all, 23 unique approaches of ECI were identified during this research (16 from literature and 7 new from case projects). The findings provide a new direction to ECI through introducing new approaches of ECI from the case projects.

This paper for the first time presents several alternatives of ECI approaches for public owners with the intention of illustrating ECI is actually possible in the public project procurement. Furthermore, it presents for the first time success factors of ECI with the intention of increasing the understanding of ECI concept from a public procurement perspective.

The “most economically advantageous tender,” as defined in the EUʼs public procurement directives, allows public purchasers to combine environmental aspects, price and other award criteria in decision making. The directives do not, however, determine how the environmental criteria should be built. Indeed, there could be different means to assess the “greenness” of competing tenders, and these various measurements of environmental impacts may lead to different assessments of the most economically advantageous tender. In this article, the determination of environmental award criteria is examined through a case study on a purchase of a goods transportation service, where the most economically advantageous tender is calculated by life cycle assessment and the environmental cost calculation method suggested by the EU, and compared to the results gained by the purchaserʼs equation. Also the contribution of the weighting for the “green” purchasing decision is discussed.

Choosing the best bid is a central step in any tendering process. If the award criterion is the economically most advantageous tender (EMAT), this involves scoring bids on price and quality and ranking them. Scores are calculated using a bid evaluation formula that takes as inputs price and quality, and their respective weights. The choice of formula critically affects which bid wins. We study 38 such formulas and discuss several of their aspects, such as how much the outcome of a tender depends on which formula is being used, relative versus absolute scoring, ranking paradox, iso-utility curves, protection against a winner with an extremely high price, and how a formula reflects the weights of price and quality. Based on these analyses, we summarize the (dis)advantages and risks of certain formulas and provide associated warnings when applying certain formulas in practice.

Early involvement of the construction team is increasingly utilized in demanding projects to incorporate versatile expertise in their planning. For public owners this is a challenge since they are obliged to use competitive, transparent team selection based on the ‘most economically advantageous’ criterion which ensures that both price and quality viewpoints are taken into account. In the case of early involvement, the price component naturally does not include the total price, but may consist only of the fee-percentages of competing service providers. This study examines such a selection situation in project alliancing in the European context and seeks to find a way to integrate the fee component in a multi-criteria selection system and determine reasonable fees for different levels of capabilities. The study builds on the performance difference between different capabilities, derived from a survey of practitioners, and determines an indifference curve arithmetically for the planning of a selection method. The influence of the owner‘s risk attitude and risk premiums are also considered exploratively based on the pricing methods of the theory of finance.

Award systems play the central role in public procurement, since they determine what is considered by the contracting authority as ‘the most economically advantageous tender.’ Many award systems that are used in practice have serious shortcomings, which are caused by the use of relative scores. In this article, the consequences of those shortcomings are demonstrated, using examples from real procurement procedures and case law. The examples are analyzed with methods from econometrics, social choice theory and game theory.

In Turkish public procurement practice of construction works, only bidders whose capabilities on each qualification criteria meet prescribed thresholds are taken into evaluation; however, final evaluation disregards contribution of contractor’s abilities to the delivery of project. The purpose of this study is to assign reasonable weights to qualification criteria stated in Public Procurement Law applicable for work contracts by the method of analytical hierarchy process (AHP) with crisp and fuzzy numbers and evaluate the results. Having optimum quality structures to obtain value for money and giving weight to environmental concern in tender evaluation stage can assist sustainable economy.

To introduce qualifications of tenderers to evaluation process, a survey was conducted among 20 public procurement specialists at Public Procurement Authority of Turkey. AHP and fuzzy analytical hierarchy process (FAHP) methods were used to obtain the weights for qualifications.

In any method used in the study, experience became the most important criterion after bid price. Facility, machine and equipment criterion became the second and annual turnover criterion became the third most important criterion.

The set of qualification criteria used in this study is confined by Turkish Public Procurement Law and secondary regulations. However, as Public Procurement Law is in accordance with European Union directives, the conclusions of the study should not be considered to be geographically limited by the borders of Turkey. Also, professional to take part in the survey were randomly selected from the Public Procurement Specialist working at Public Procurement Authority.

The outcomes of the study may improve sustainability through public procurement.

To the best of the authors’ knowledge, this is the first study offering weights for tenderer’s qualifications to be used in a multi-criteria decision-making process for contractor selection in public work procurement process in Turkey.