W6_ISHAQ_Tendring_Process

Problem Definition

We are working to procure a Market Management System (MMS) for Oman electricity market. By the end of this year we are going to release the RFP related to the procurement of the MMS. What type of tendering process should be followed in OPWP for this procurement ?

Development of Feasible Alternatives

There are three feasible alternatives for the procurement of the MMS:

1. Direct Tendering
2. Limited Tender
3. Open Tender

Development of the Outcome for Alternative

The following attributes are considered to check which alternative is more suitable for this problem

• Process
• Compete for Quality
• Price
• Collecting contacts

Table 1 lists the comparison date for the three alternatives.

Table 1. Data Alternative

Analysis and Comparison of the Alternative.

Using the compensatory approach, which consists of two models: Non-Dimensional Scaling and Additive Weighting Technique, the following results are calculated.

1.       Non-Dimensional Scaling

The below table shows the dimensionless values with a range from 0 to 1. Turning each attribute into a Base of 1 or dimensionless value, the scoring 1 means the highest/optimum value of attribute (preference decision). On the other hand, the scoring 0 means the minimum value (avoided decision).

Table 2. Dimensionless Scoring model

Table 3. Dimensionless Relative Weighting

Using the quantitative comparison for each attribute in table 2, the total score is calculated to represent the rank of an alternative (table 3). Using the non-dimensional scaling, both limited tender and open tender strategies got the highest rank with a total score 2.

2.       Additive Weighting Technique

Table 4 below, shows the calculation using the additive weighting technique, where ranking the considered attributes by giving higher rank to the preferred attribute. The totals show that having an open tender procurement for the Market Management System ranked the highest value as the best option.

Table 4. Additive Weighting Score

Selection of the Preferred Alternative.

According to table 4 results, the best alternative is processing an open tender practice.

Performance Monitoring and the Post Evaluation of Result.

Having an open tender is an international practice but sometimes during to the complexity and criticality of an IT system, the buyers go through a limited tender who are specialized in the system scope of work. Other attributes could be considered for the evaluation process. For the supplier selection evaluation process, many factors can be considered.

References

1. Open tenders are not the best way to select agencies. (2011, March 8). Retrieved from https://www.trinityp3.com/2011/03/open-tenders-are-not-the-best-way-to-select-agencies/ 
2. Advantages Of Open Tendering Construction Essay. (2015, March 23). Retrieved from https://www.ukessays.com/essays/construction/advantages-of-open-tendering-construction-essay.php 
3. Mwikali, R., & Kavale, S. (2012). Factors affecting the selection of optimal suppliers in procurement management. International Journal of humanities and social science, 2(14), 189-193.
4. Triantaphyllou, E. (2000). Multi-criteria decision making methods. In Multi-criteria decision making methods: A comparative study (pp. 5-21). Springer, Boston, MA.
5. Afshari, A., Mojahed, M., & Yusuff, R. M. (2010). Simple additive weighting approach to personnel selection problem. International Journal of Innovation, Management and Technology, 1(5), 511. 
6. GUILD OF PROJECT CONTROLS COMPENDIUM and REFERENCE (CaR) | Project Controls - planning, scheduling, cost management and forensic analysis (Planning Planet). (n.d.). Retrieved from http://www.planningplanet.com/guild/gpccar/managing-change-the-owners-perspective