Study Of The Most Advantageous Bid In Government Procurement By Integrating AHP And ELECTRE

The contract awarding in traditional procurement adopts the price of the lowest tender as contract awarding target. "The lowest tender" is easy to produce the lowest price bidding, bid rigging and illegal bidding. Under such system, the excellent supplier cannot compete with suppliers of the lowest price bidding so that the excellent supplier is not willing to participate in the bidding. The unfair competition will edge out the excellent supplier that indirectly affects the technology cannot be upgraded and poor procurement quality. As a result, the lowest price is used as the only contract awarding condition that is questioned and brings enormous torment to the tendering invitation entity. "The most advantageous tender" is gradually favored by the tendering invitation entity.Though the most advantageous tender has good will conception, some procurement personnel, not familiar with the related operational regulations, considerably misuses or colludes and collaborates with specific supplier to seek private profit so that the most advantageous tender just becomes the best profit seeking method for unworthy procurement personnel and illegal syndicate and supplier. Promotion of the most advantageous tender system is lack of effective management and a complete scientific selective model that leads to malpractice of procurement case.To avoid the defects of contract awarding for the lowest tender and artificial collusion, the research establishes a complete scientific selective model of "the most advantageous tender" to provide the tendering invitation entity with selection in handling "the most advantageous tender". The tendering invitation entity is happy and urgently needs the selective model developed by the research.In the contract awarding process of the "most advantageous tender", the key factors are the stipulation of selective factors, weighting and selective criteria, yet the selective factors are complicated and contain the quantitative and qualitative features. However the selection of the existing "most advantageous tender" conducts the selection of quantitative factors and doesn't include the qualitative factors that certainly cannot satisfy the demand of selective operation for "the most advantageous tender". The research uses the multiple attribute decision making, supplier selection and weighting stipulation as basis. In the first step, the selective factors of "the most advantageous tender" are selected based on supplier selection theory and factor analysis. The complicated hierarchies are simplified through hierarchical structure of AHP to obtain the weighting of selective factors for "the most advantageous tender". In the meantime, ELECTRE is adopted to settle down the combination of quantitative and qualitative factors of "the most advantageous tender" and evaluation among selective factors attribute. The research results can be served as basis for tendering invitation entity to establish the selective model of "the most advantageous tender". This research can truly provide the tendering invitation entity with the selection of "the most advantageous tender".