THE USE OF MIXTURES OF MARKET AND EXPERIMENTAL CHOICE DATA IN ESTABLISHING GUIDELINE WEIGHTS FOR EVALUATING COMPETITIVE BIDS IN A TRANSPORT ORGANISATION
mode - bus
Market research, Market assessment, Freight service, Decision support systems, Decision making, Competitive bidding, Choice models, Business practices
The government sector is increasingly using competitive bidding for service deliveries such as the provision of bus and rail services as well as the purchasing of professional engineering services such as project planning, design, and supervision. As part of a program to simplify and introduce consistency in the tender evaluation process, a government transport agency in New Zealand financed a study to investigate the potential of combined revealed and stated preference methods as a way of establishing weights to attach to the criteria used to evaluate offers of engineering services. These techniques have primarily been used in the study of travel choices, yet they have a much broader appeal in studying the decisionmaking process of organizations. In this paper, the authors use a data-mixing model to capture the decision expertise of a transport organization through the revelation of preference weights for each evaluation criterion. Using choice information from market-driven and experimentally derived choice sets, the robustness of the evaluation weights should be able to be increased in comparison to the weights obtained from single data-sourced models. The resulting parameterized tool can be used in subsequent tender evaluations to provide an additional source of advice to supplement/replace that provided by current members of a bid evaluation team.
Hensher, D, Louviere, J, Hansen, D. (2000). THE USE OF MIXTURES OF MARKET AND EXPERIMENTAL CHOICE DATA IN ESTABLISHING GUIDELINE WEIGHTS FOR EVALUATING COMPETITIVE BIDS IN A TRANSPORT ORGANISATION. Transport Policy, Volume 7, Issue 4, p. 279-286.