Sustainable Procurement for improving project performance for oil and gas projects

Abstract

Contract award framework involving multi-dimension parameters can assist in enhancing performance of oil and gas projects. This paper suggests quantitative, holistic contract award framework for public projects and suggests a measure for performance of oil and gas projects. Large numbers of parameters of contract award and project performance are reduced to significant factors using factor analysis where extraction of components is by PCA. Using these extracted factors and their component score, contract award index (CAI) and project performance index (PPI) are constructed by UNDP indexing method using geometric mean. Study found out eight significant factors and their 32 parameters along with component weight for contract award. A single point CAI is computed using these factors to rank bids. Ten factors and their 45 parameters along with component weight are found out to measure project performance. A single point PPI is computed using these factors to score project performance. Analysis of CAI and PPI revealed percentage variation of project performance due to contract award is 22.8%.