A Decision Analysis Approach to Repetitive Competitive Bidding

Abstract

Discusses how a repetitive competitive bidding model, developed previously, can be adapted to the differing features of the situation. Focuses, first, on identifying the implications for decision analysis of the strategic nature of repetitive bidding and then on the impact of data to aid in winning a tender. Uses a real example from the construction industry which, for confidentiality reasons, is called Whernside Ltd. States the company is one operating a world‐wide spread of construction and development activities such as; civil engineering, private housing, property development, building, dredging, mining, mechanical engineering, foundation engineering and concrete products manufacture. Tabulates the company's turnover and profit in detail, and demonstrates that if bidding activity is to be continued, the formulation of a long‐term strategy must aim to set a perspective in the prescription of individual bids, so the long‐term accrued benefits are, in some sense, optimal. Documents the tactical bidding decision structure using figures by aid of explanation and goes into great detail by way of pinpointing the bid process. Concludes that from the discussion conclusions may be drawn and the three main ones paragraphed and spelt out with recommendations.