Bid evaluation decision for major project based on analytic hierarchy process and data envelopment analysis cross-efficiency model

Abstract

As is known that there are some drawbacks bid evaluation decision for some major projects, which would easily induce some problems, such as fault decision, low efficiency, poor benefit, etc., or even some social corruptions, which would seriously affect the cooperation and sustainable development of society, economy and environment. Therefore, considering these drawbacks, in this paper, a new model based on analytic hierarchy process and data envelopment analysis (AHP/DEA) cross-efficiency is proposed for bid evaluation decision problems of major project. To deal with the complexity of bid evaluation decision for major project, a set of indices with multiple inputs and outputs is firstly proposed. Then, the DEA cross efficiency is adopted to develop a pairwise comparison matrix, after that, the AHP is applied for bid evaluation decision for major project using the pairwise comparison matrix. Finally, case studies are presented to demonstrate the reasonability and feasibility of the proposed evaluation decision model, it follows from these results that, the proposed new bid evaluation decision model can shed some new light on contractor selection for major projects.