A study on improving the ranking procedure for determining the most advantageous tender

Abstract

According to the rules of the current Government Procurement Law in Taiwan, the most advantageous tender is often determined based on the sum of ranks among all tenders. This method is criticized, however, for its violating the basic propositions of the measurement theory, being easily biased by a few members in the evaluation Committee, and lack of distinct bases to discriminate the evaluation differences among the Committee members. The improved procedure suggested in this study, which is based on fuzzy relations and adopts eigenvector method, conforms to the judgment principles as well as the measurement theory. With analysis of a procurement case, the results demonstrate that the improved procedure is able to use quantitative methods to identify the evaluation differences among individual Committee members. Therefore, this improved procedure may enhance the quality in determining the most advantageous tender.