Applying choosing by advantages in the public tendering procedure

Abstract

Schottle and Arroyo (2017) and demonstrate that the implementation of choosing by advantages (CBA) in the tendering procedure is beneficial for i) achieving transparency; ii) clarifying what an owner truly values in a project, and iii) creating value, prior to requesting proposals and receiving responses. Furthermore, CBA allows decision-makers to separate the value of the technical proposal versus the cost of the proposal; thus, a bad technical proposal cannot be compensated by a low bid. This paper explains how CBA can be applied in the tendering procedure and also how to adjust the CBA tabular method for public procurement. The authors explain the process steps of the method and outline what the owner needs to define before requesting and evaluating proposals. Finally, based on the constructed case of Schottle et al. (2015) the procedure is analyzed and discussed.