TenSeM: a multicriteria and multidecision-makers' model in tender evaluation

Abstract

In tender evaluation, there appears to be a lack of a realistic working models capable of simultaneously (1) compiling multiple decision-makers' inputs, (2) incorporating risk and uncertainty, and (3) offering computer interaction that makes a model flexible to any change in situation. Thus, the research has developed a more realistic working model including the necessary capabilities mentioned. The vital theory behind the model was a combination of a utility function and a social welfare function. The model was divided into two main steps (step1: evaluating contractor ability and step2: evaluating tenders) consisting of three main processes: (1) the contractor ability criteria selection process; (2) the contractor ability criteria balancing/measuring process; and (3) bid price and contractor ability balancing/measuring process. The model incorporated computer interaction in which Microsoft Excel performed calculation tasks while Visual Basic for Application (VBA) was coded for user interaction. To obtain a realistic working product, the model was tested for user friendliness, verification, sensitivity analysis, and validation. The test has shown that the multicriteria and multidecision-makers' model, TenSeM, is a rational and realistic approach in solving a tender evaluation problem.