DSS for Tendering Process: Integrating Statistical Single-Criteria Model with MCDM Models

Abstract

The objective of this paper is to describe a framework of decision support system (DSS) for a tendering process. There are some public agencies that still perform a decision analysis based on single criteria. One agency, Jabatan Kerja Raya Malaysia (JKRM) is using a statistical model in performing its tendering process. In this paper, multi criteria decision making (MCDM) model is proposed by integrating the existing statistical models with weight, and guided analytic hierarchy process (GAHP). The framework consists of a series of steps beginning with determining whether tenderers fulfil the prerequisites. Those who pass the first stage will proceed to the second stage evaluation. The second stage is to determine the cut-off price (COP), and freak prices using statistical methods. The third and final stage is a true DSS where a decision maker (DM) can evaluate the criteria, and alternatives using weight model, and GAHP. The contribution of this research lies in the methodology for integrating statistical, weight, and GAHP models in order to perform tendering analysis as to achieve the final ranking of contractors for JKRM tendering in association with a system developed by the authors. The system integrates a systematic guidance for AHP data entry matrices for which we coin the term GAHP meant to minimize possibility of inconsistency data entry selected by a DM.