Title: Empirical research of multi-criteria decision making methods used to evaluate bids for public contracts in the Czech Republic

Authors: Lucie Vrbova

Addresses: Department of Management, University of Economics, Prague, Nam. W. Churchilla 4, 13067 Prague, Czech Republic

Abstract: Multi-criteria decision making methods are used to select the best bids for public contracts. Due to strict legal regulations, only a few methods are possible to use for public contracts. This paper analyses multi-criteria decision making methods and their suitability for public contracts. Research performed in the Czech Republic in 2013 found that contracting authorities strongly prefer to use the weighted sum approach in connection with one type of transformation for quantitative criteria. They treat all criteria with the same value functions that are convex for minimising criteria and linear for maximising. In 60% of criteria, the contracting authorities limited the bidders in admissible values of criteria or defined the reference value.

Keywords: bid evaluation; public contracts; multicriteria decision making; MCDM; contractor selection; multiple criteria evaluation; linear transformation; quantitative criteria; value functions; weighted sum approach; admissible limits; abnormally low tender prices; Czech Republic; contract bids.

DOI: 10.1504/IJMDM.2015.074012

International Journal of Management and Decision Making, 2015 Vol.14 No.4, pp.289 - 303

Received: 28 Jan 2015
Accepted: 15 Jul 2015

Published online: 02 Jan 2016 *

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