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Development of Reusable Bid Evaluation Models for the Portuguese Electric Transmission Company

Author

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  • Carlos A. Bana e Costa

    (CEG-IST, Centre for Management Studies of IST, Technical University of Lisbon, 1049-001 Lisbon, Portugal, and Department of Management---Operational Research Group, London School of Economics, London WC2A 2AE, United Kingdom)

  • João C. Lourenço

    (CEG-IST, Centre for Management Studies of IST, Technical University of Lisbon, 1049-001 Lisbon, Portugal)

  • Manuel P. Chagas

    (Graduate School of Business, University of Chicago, Chicago, Illinois 60637)

  • João C. Bana e Costa

    (BANA Consulting, Lda., R. Prof. Bento Jesus Caraça, 33, 1600-600 Lisbon, Portugal)

Abstract

Bid evaluation is the process of selecting a contractor from a number of bidders. The decision analysis models currently in use at the Portuguese Electric Transmission Company (REN) to evaluate bids were developed through a decision-conferencing process supported by the MACBETH multicriteria approach and software. This paper presents the various components of this interactive sociotechnical process. Given the number of contracts awarded by REN each year, it was crucial that the models be reusable in similar calls for tenders; this required substantial care in structuring the criteria, with a focus on constructed scales, and building value function models based on qualitative pairwise comparison judgments of difference in attractiveness. Also of particular interest is the approach for weighing benefits against costs.

Suggested Citation

  • Carlos A. Bana e Costa & João C. Lourenço & Manuel P. Chagas & João C. Bana e Costa, 2008. "Development of Reusable Bid Evaluation Models for the Portuguese Electric Transmission Company," Decision Analysis, INFORMS, vol. 5(1), pages 22-42, March.
    • Handle: RePEc:inm:ordeca:v:5:y:2008:i:1:p:22-42
    DOI: 10.1287/deca.1080.0104
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    References listed on IDEAS

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    2. Fernando A. F. Ferreira & Sérgio P. Santos, 2021. "Two decades on the MACBETH approach: a bibliometric analysis," Annals of Operations Research, Springer, vol. 296(1), pages 901-925, January.
    3. Jaime Miranda, 2010. "eClasSkeduler: A Course Scheduling System for the Executive Education Unit at the Universidad de Chile," Interfaces, INFORMS, vol. 40(3), pages 196-207, June.
    4. L. Robin Keller, 2008. "From the Editor..," Decision Analysis, INFORMS, vol. 5(1), pages 1-4, March.
    5. Mónica D. Oliveira & Inês Mataloto & Panos Kanavos, 2019. "Multi-criteria decision analysis for health technology assessment: addressing methodological challenges to improve the state of the art," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 20(6), pages 891-918, August.
    6. L. Robin Keller, 2010. "From the Editor..," Decision Analysis, INFORMS, vol. 7(3), pages 235-237, September.
    7. repec:cup:judgdm:v:4:y:2009:i:6:p:492-508 is not listed on IDEAS
    8. L. Robin Keller & Kelly M. Kophazi, 2009. "From the Editors..," Decision Analysis, INFORMS, vol. 6(2), pages 53-56, June.
    9. Jamie P. Monat, 2009. "The benefits of global scaling in multi-criteria decision analysis," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 4(6), pages 492-508, October.
    10. Ramiro Sanchez-Lopez & Carlos Bana e Costa & Bernard Baets, 2012. "The MACBETH approach for multi-criteria evaluation of development projects on cross-cutting issues," Annals of Operations Research, Springer, vol. 199(1), pages 393-408, October.
    11. Manuel D. N. T. Oliveira & Fernando A. F. Ferreira & Guillermo O. Pérez-Bustamante Ilander & Marjan S. Jalali, 2017. "Integrating cognitive mapping and MCDA for bankruptcy prediction in small- and medium-sized enterprises," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 68(9), pages 985-997, September.
    12. Laura M. Hinestroza-Olascuaga & Pedro M. S. Carvalho & Célia M. S. Cardoso de Jesus, 2021. "Using a Multi-Criteria Model to Assess the Suitability of Potential Sites to Implement Off-Grid Solar PV Projects in South America," Sustainability, MDPI, vol. 13(14), pages 1-21, July.
    13. L. Robin Keller & Kelly M. Kophazi, 2010. "From the Editors..," Decision Analysis, INFORMS, vol. 7(2), pages 151-154, June.

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