Tender Design Research Articles

Designing an AI purchasing requisition bundling generator

Following the design science methodology, a recommender system has been created with the research objective of finding a novel approach to the bundling problem in order to generate data-driven insights identifying cost potentials across an organization. In this study, a concept that has been implemented in business-to-business marketing at IBM is taken over to procurement in the automotive industry to provide decision support. Thereby, this work builds on information processing theory to utilize artificial intelligence technologies, i.e., natural language processing and supervised learning to augment the skills of buyers, whereby design principles were derived for information technology providers and procurement organizations in private and public settings worldwide. As a key finding, overall, Mini Batch K-means was the most performative model among the selected clustering algorithms. Furthermore, through actively making use of purchasing requisition data typically available in enterprise resource planning systems, the bundling generator artifact can lead to significant improvements in strategic planning and commodity management resulting in better utilization of buyer’s capacities, tender designs, and thus procurement’s value contribution in the transformation toward industry 4.0. The empirical study contributes to the literature on bundling and spend analysis, which has predominantly relied on historical data. By incorporating requisition data, which poses inherent challenges of precision and information-richness, this work expands this traditional approach with a forward-looking perspective.

A concept for multi-winner tenders for medicinal products with balancing between efficient prices, long-term competition and sustainability of supply.

Achieving price efficiency via tenders, the sustainability of competition, and the prevention of shortages are hot topics in the debates about shaping the pharmaceutical markets. Single-winner tenders receive growing criticism for concentrating on achieving low prices at the expense of the long-term maintenance of a competitive pharmaceutical industry, the security of continuous supply, and disregarding the therapeutic needs of patient populations with specific conditions. This paper aims at drafting a concept to assist the design of multi-winner tenders for medicinal products with a focus on supply and sales guarantees, price efficiency, and equity in access. The concept shall be generally applicable to all kinds of medicinal products including generics, biosimilars, and on-patent products in the out- and in-patient sector. Principles for multi-winner tenders for medicinal products are set and a number of delimitations are made in order to get rid of factors that prevent clairvoyance amid the various pricing and reimbursement systems when designing a concept. The steps to plan and implement a multi-winner tendering procedure are drafted on the basis of the defined principles. The tender should consist of planning, bidding, preparation, sales, and evaluation phases. Pharmaceutical companies shall make bids with price and quantity pairs, which shall be ranked by prices and if applicable then taking into account other factors. The tenderer shall predefine market shares to the various places of the ranking. A double ceiling shall be applicable for the sales of the winners: their sales must not exceed their quantity offer and the predefined market share applicable to their place in the ranking. The implementation of the concept will require the careful adjustment of the tender conditions to the specificities of the pharmaceutical market concerned on the one hand and to the local pricing and reimbursement system on the other hand.

Empfehlungen für das Marktdesign zur Befüllung der Gasspeicher

Abstract The gas storage regulations are intended to increase security of supply in winter. Tenders and direct procurement by the Market Area Coordinator should ensure that gas storage facilities are filled. Both instruments can lead to a displacement of other storage volumes. Since direct procurement potentially leads to less displacement and allows for better control of strategic behavior, it may be more effective. Tender design can be improved by setting a reserve price and allowing storage obligation trading in a secondary market. Furthermore, separate tenders for withdrawal options, the elimination of the commodity price surcharge, and further adjustments can be beneficial.

The A24 Blankenburg connection: An innovative design concept for an immersed tunnel project in a busy port

The A24 Blankenburg connection is a new three-lane highway in the Port of Rotterdam connecting two existing highways. The project incorporates a ground level subsurface tunnel of approximately 500 m (Holland Tunnel), an immersed tunnel of approximately 900 m (Maasdelta Tunnel), a fly-over connecting the A15 and a dive-under connecting the A20 and the widening of the existing A20 highway. Challenging to construct the connection is the location in the busiest part of the Port of Rotterdam, one of biggest ports in the world and therefore of great importance to the Dutch economy. The A24 Blankenburg connection is being constructed by the BAAK consortium (consisting of Ballast Nedam and DEME Group). The consortium developed a completely new innovative design concept for the immersed tunnel which embraces the minimization of hindrance both on water as well as on land.This paper will address the original plan, the tender design and some of the key elements of the design and construction of this project.

Off-Patent Biologicals and Biosimilars Tendering in Europe-A Proposal towards More Sustainable Practices.

Background: In Europe, off-patent biologicals and biosimilars are largely procured by means of tender procedures. The organization and design of tenders may play a key role in the evolving biosimilar market, and currently, it is not fully elucidated how tenders for off-patent biologicals and biosimilars are designed and if approaches are aligned with sustaining market competition and societal savings for healthcare systems over the long term. This study aims to (i) explore the design and implementation of tender procedures for off-patent biologicals and biosimilars in Europe, (ii) identify learnings for sustainable tender approaches from purchasers and suppliers, and (iii) formulate recommendations in support of competitive and sustainable tender practices in the off-patent biologicals market. Methods: A mixed methods design was applied. A quantitative web-survey was conducted with hospital pharmacists and purchasers (N = 60, of which 47 completed the survey in full), and qualitative expert-interviews with purchasers and suppliers (N = 28) were carried out. Results: The web survey results showed that the organization and design of tenders for off-patent biologicals and biosimilars, and the experience of hospital pharmacists and purchasers with this, considerably varies on several elements across European countries. From the qualitative interviews, signals emerged across the board that some of the current tender approaches might negatively affect market dynamics for off-patent biologicals and biosimilars. The focus on generating short-term savings and existence of originator favouring tender practices were identified as elements that may limit timely competition from and market opportunity for biosimilar suppliers. The need to optimize tender processes, considering a more long-term strategic and sustainable view, was expressed. In addition, challenges appear to exist with differentiating between products beyond price, showing the need and opportunity to guide stakeholders with the (appropriate) inclusion of award criteria beyond price. Due to the variety in tender organization in Europe, a ‘one size fits all’ tendering framework is not possible. However, on an overarching level, it was argued that tender procedures must aim to (i) ensure market plurality and (ii) include award criteria beyond price (warranted that criteria are objectively and transparently defined, scored and competitively rewarded). Depending on the market (maturity), additional actions may be needed. Conclusions: Findings suggest the need to adjust tender procedures for off-patent biologicals and biosimilars, considering a more long-term strategic and market sustainable view. Five main avenues for optimization were identified: (i) safeguarding a transparent, equal opportunity setting for all suppliers with an appropriate use of award criteria; (ii) fostering a timely opening of tender procedures, ensuring on-set competition; (iii) ensuring and stimulating adherence to laws on public procurement; (iv) securing an efficient process, improving plannability and ensuring timely product supply and (v) safeguarding long-term sustainable competition by stimulating market plurality.

Use of the Safe System Assessment Framework as a Safety Key Performance Indicator

As part of the Northern and South-Eastern Suburban Roads Upgrade packages, Major Road Projects Victoria has sought to incorporate road safety metrics into the tender designs review process. The Australian Road Research Board adapted the Safe System Assessment Framework (Austroads 2016) to meet this need. Twelve road projects were assessed to provide baselines scores for the reference designs. The submitted tender designs will then be reassessed to provide an assessment of road safety in the designs. This work provided an extension in use of Safe System Assessment Framework as well as insight into current gaps in road safety design practice.

Competition Issues in Public Procurement: Is Tender Design the Solution?

Public procurement is one of the most important economic activities for any economy. The forward linkages and its impact on social and industrial policy give it “an engine of growth” dimension. In this attempt, we try to study why competition is crucial for the success of any procurement policy. The fundamental need for public procurement is to be efficient, as an “efficient” public procurement not only reduces public expenditure but also has positive externalities. The basic framework within which we try and study the competition concerns in public procurement is based on two types of concerns, namely collusive and non-collusive. These two types of concerns emanate from a combination of numerous factors like number of sellers, demand conditions, and market dynamics. The factors, which result in inefficient procurement, are often not amenable to quick changes to ward off the threats completely. Therefore, a multi-prolonged approach is needed for efficient public procurement outcomes. Tender designs draw the boundaries of the competition field where sellers compete for the market. Therefore, they can incorporate elements to address specific threats that a particular procurement market face. Hence, the tender design is a potential tool which can be utilised to mitigate and address these concerns.

Concept design of jacket foundations for offshore wind turbines in 10 steps

Simplified design procedures for offshore wind turbine (OWT) support structures are necessary in the concept and tender design stages for assessing the financial viability. Building upon the previous research on simplified monopile design, this paper presents a similar method to design jacket supported OWTs founded on piles or suction caissons. The method is based on the minimum and necessary data, namely the site characteristics (wind speed at reference height, wind turbulence intensity, water depth, wave height and wave period), turbine characteristics (rated power, rated wind speed, rotor diameter, cut-in and cut-out speed, mass of the rotor-nacelle-assembly) and ground profile (soil stiffness variation with depth and soil strength). A flowchart of the design process is also presented for visualisation of the rather complex multi-disciplinary analysis. Insights are given for 3 and 4 legged jackets. The calculation procedures that are required can be easily carried out either through a series of spreadsheets or simple hand calculations. An example problem emulating the design of a jacket on piles is taken from literature to demonstrate the proposed calculation procedure. The data used for the calculations are obtained from publicly available sources and the example shows that the simplified method arrives at a similar foundation to the one reported.

Further operation of flexible biogas plants – realisable bid prices in the EEG 2017

With the tendering procedure of the Renewable Energy Sources Act (Erneuerbare-Energien-Gesetz, EEG) 2017, the opportunity was created to transfer existing biogas plants into a 10-year follow-up remuneration through new commissioning. A detailed analysis of possible revenues and costs can be an advantage when placing bids. Thus provide clarity about the economic situation of a biogas plant during the follow-up period. The aim of this paper is to demonstrate that there are potential economic options for selected existing biogas plants in Germany in the electricity market. Namely to switch to the tender design under EEG 2017 and to take advantage of the 10-year follow-up remuneration. For now, the tender corridors beyond 2022 are not determined yet. But in the course of an upcoming amendment of the Renewable Energy Sources Act it is likely that there will be a notable corridor volume from 2023 onwards. In addition to the ability to operate flexibly, the decisive factor for the economic operation of a plant beyond the 20-year EEG remuneration period is the levelized costs of electricity (LCOE). Or more precisely the LCOE that can be realized in the follow-up period. If a subsidy charge can be achieved that, combined with market earnings, exceeds the average LCOE in the follow-up period, economic operation is ensured. Otherwise, additional sources of revenue or cost reduction potential must be tapped.

Die Bauinstallationen im Baulos SBT 3.1

AbstractOn contract SBT3.1 of the Semmering Base Tunnel, the intermediate access point at Grautschenhof had to be relocated late in the tender design phase due to new geological findings. One consequence of this was the limited space available on the new construction site area. A number of complementary measures were considered by the client in the tender. Supplemented by innovative technical solutions from the SBT 3.1 Grautschenhof joint venture, it was possible to establish a functioning logistics system for four conventional excavations in the tightest of spaces.

Minimum foundation size and spacing for jacket supported offshore wind turbines considering dynamic design criteria

Modes of vibration play a dominant role in the design of WTG (Wind Turbine Generator) support structures. It is necessary to choose the overall system frequency such that the modes of vibration do not coincide with the rotor frequencies as well as the wave frequencies. WTG supported on multiple foundations (such as jackets or seabed frames) may exhibit rocking modes of vibration if the vertical stiffness of the foundation is not large enough which in turn may have serious implications on the fatigue performance of the overall structure. From the O&M (Operation and Maintenance) point of view, it is necessary to design the overall system to have sway-bending as the dominant mode of vibration. This paper develops a formulation for obtaining foundation (for both piles and shallow suction caissons) sizes and spacing such that rocking vibrations are prevented and sway-bending vibrations are achieved. Expressions for the minimum vertical stiffness of foundations are proposed for different configurations: square base, symmetrical (equilateral) triangle, or asymmetrical (isosceles) triangle. Verification of the method is carried out through finite element analysis and a step-by-step solved example is taken to show the application of the formulation. It is hoped that the formulation will assist designers to optimize the foundation arrangement and provide preliminary sizing for tender design.

Impedance Functions for Double-D-Shaped Caisson Foundations

Abstract This article proposes solutions for stiffness estimation of Double-D-shaped caisson foundations embedded in three different types of ground profiles (stiffness variation along the depth: homogeneous, linear, and parabolic). The approach is based on three-dimensional finite element analyses and is in line with the methodology adopted in the Eurocode 8—Part 5 (2004) lumped spring approach. The method of extraction of various stiffness values from the finite element model is described, followed by obtainment of the closed-form solutions. Parametric study revealed the nominal effect of the embedment length of Double-D caissons, and hence only the width and diameter effects are included in the suggested formulations. The obtained results are presented in terms of multiplication factors for Double-D caissons. Final impedance functions for a given width and diameter of a Double-D caisson can be conveniently estimated by multiplying the proposed functions to the circular shaft solutions available in literature. The applicability of the proposed formulations is demonstrated by considering a typical bridge pier supported by Double-D caissons. The proposed formulations require a minimum amount of input parameters and can be used during the tender design to arrive at the required geometry of such foundations.

Initial Design Phase and Tender Designs of a Jacket Structure Converted into a Retrofitted Offshore Wind Turbine

Jackets are the most common structures in the Adriatic Sea for extracting natural gas. These structural typologies are suitable for relative low water depths and flat sandy sea floors. Most of them have been built in the last 50 years. When the underground source finishes, these structures should be moved to another location or removed if they have reached their design life. Nevertheless, another solution might be considered: change the future working life of these platforms by involving renewable energy and transforming them into offshore wind towers. The present research proposal aims to investigate the possibility of converting actual structures for gas extraction into offshore platforms for wind turbine towers. This simplified analysis is useful for initial design phases and tender design, or generally when available information is limited. The model proposed is a new simplified tool used to study the structural analysis of the jacket structure, developed and summarized in 10 steps, firstly adopted to study the behavior of the oil and gas structure and then for the retrofitted wind tower configuration.

An integral flat arch bridge

This paper presents the design and construction of an integral bridge that provides road access over the River Nene in Northampton (UK), to the new university campus. The client's aspirations and planning requirements mandated retention of the existing landscape character while also creating an appropriate landmark. This resulted in an elegant 50 m span flat arch structure with only 3·6 m rise. The awarded tender design proposed an alternative steel–concrete composite solution that is integral with its abutments and includes stiffened counterfort walls. A comparison between several alternative articulations arrangements considered for the rigid frame structure is presented. Sensitivity-based analysis between geotechnical and structural models for the derivation of support stiffness and resulting global load distribution between deck and piled foundations relating specifically to the flat arch arrangement is also described. Finally, a discussion of construction sequence, tolerance considerations, and temporary works for stability in the temporary condition is also presented.

The Effectiveness of the European Union in Safeguarding Competition in Public Procurement Markets

The EU’s single market in government purchases constitutes a fundamental pillar of economic integration throughout the continent, as it amounts to 4% of GDP. If competition is deficient efficiency losses ensue. As we know surprisingly little about the effectiveness of monitoring and enforcement institutions designed to safeguard competition, we investigate whether the European Commission and the Court of Justice of the European Union are effective in changing market behaviour. Using a unique micro-level public procurement database of over 3.7 million contracts linked to all relevant legal decisions from 2009-2014, we investigate two distinct causal mechanisms: i) requiring a change in national public procurement legislation; and ii) striking down anticompetitive practices while leaving legislation unchanged. Theoretically, it is unclear whether any of these interventions would result in a lasting improvement in competitive outcomes such as the number of bidders, supplier composition, and discounts offered, as well as in public sector tender design such as procedure types or open advertisement. Using matched samples difference-in-differences estimation, we find that requiring legislative change has a significant and sizable positive impact on market openness: it increases the number of bidders (1.8-3%), lowers the incidence of single bidding (3-4%), decreases the market share of local winners (3-4%), and lowers prices (0.4-0.6%). Requiring change in anticompetitive practices has no discernible impact. The policy implications are profound, in order to improve the EU-wide single market of government purchases, better monitoring and stronger supranational legal action are needed.

16.12: Winning steel solution for flat arch bridge

ABSTRACTAs part of a new University Campus development in the city of Northampton (UK), a new road access bridge was required to span over the river Nene. The client's aspirations and the planning requirements were set to keep the character of the existing landscape while creating an appropriate landmark structure for the new campus. The client's specimen design included a concrete flat arch bridge spanning 49m with a shallow rise of 3.7m above the navigable channel of the river.During the tender design competition, closer reviews of the concrete solution were undertaken by the design and build team, concluding that the imposed loads to the foundations and the construction method required to build the concrete deck would not prove to be economical. Thus, an alternative design was developed using a steel‐concrete composite structure. The awarded solution includes 220 tonnes of welded steel plates to form a shallow and flat arch structure with deck cross girders.This bridge case study paper discusses the design aspects from development at planning phase to tender design and detail design as well as the specific construction stages related to the steelwork erection.

Conservation tenders in low-income countries: Opportunities and challenges

The number of payments for environmental service schemes (PES) in low-income countries has grown more rapidly than in high-income countries. Yet, scarce funding among potential service buyers in low-income countries arguably makes it even more important to design PES cost-effectively. Tendering conservation contracts is one possible way to improve the cost-effectiveness of PES schemes. There is reason to believe that they are particularly well-suited to overcome some typical constraints in low-income environments. However, experience with conservation tenders in low-income countries remains limited to a handful of scientifically motivated experimental trials. Larger roll-outs can so far only be found in high-income countries, mainly the US and Australia. How different would rolled-out PES tenders perform in low-income countries, and would they require distinct design features? Here, we identify specific opportunities and challenges for implementing conservation tenders in low-income countries. Conceptually, we examine each implementation step of a tendered PES for typical low-income country characteristics. Some may affect the design requirements for successful implementation, in either positive or negative ways, compared with the typical high-income country case. Imperfect markets and information about production systems, high subsistence incomes, high variability in prices and yields, and risk-averse behavior all constitute characteristics which conservation tenders may be particularly suited to address. Conversely, lack of expertise and infrastructure can hamper tender design and the dissemination of information to potential participants. Some of these challenges can be dealt with, but solutions unavoidably increase transaction costs which, in turn, may affect scalability. While tenders reduce poverty alleviation effects when informational rents of service providers are being squeezed, tendered PES programs do not reduce rents to zero under normal circumstances, and can therefore still deliver income transfers and contribute to poverty alleviation.

Conservation tenders in developed and developing countries − status quo, challenges and prospects

Conservation tenders − or procurement auctions − are a competitive mechanism, in which payment for ecosystem service contracts are allocated to landholders based on their submitted bids. These encompass a price and sometimes a measure for the environmental services the landholder offers to provide. This special edition comprises a set of papers from a workshop on conservation tenders across developed and developing countries. These papers assess the status quo, and the challenges and prospects of tendering approaches. Four high level lessons emerge: 1) Conservation tender performance has been robust; 2) Developed − developing country conservation tender differences are modest; 3) Conservation tender prospects are dependent on political and institutional support; and 4) Optimal conservation tender design is circumstance specific.

Design of monopiles for offshore wind turbines in 10 steps

A simplified design procedure for foundations of offshore wind turbines is often useful as it can provide the types and sizes of foundation required to carry out financial viability analysis of a project and can also be used for tender design. This paper presents a simplified way of carrying out the design of monopiles based on necessary data (i.e. the least amount of data), namely site characteristics (wind speed at reference height, wind turbulence intensity, water depth, wave height and wave period), turbine characteristics (rated power, rated wind speed, rotor diameter, cut-in and cut-out speed, mass of the rotor-nacelle-assembly) and ground profile (soil stiffness variation with depth and soil stiffness at one diameter depth). Other data that may be required for final detailed design are also discussed. A flowchart of the design process is also presented for visualisation of the rather complex multi-disciplinary analysis. Where possible, validation of the proposed method is carried out based on field data and references/guidance are also drawn from codes of practice and certification bodies. The calculation procedures that are required can be easily carried out either through a series of spreadsheets or simple hand calculations. An example problem emulating the design of foundations for London Array wind farm is taken to demonstrate the proposed calculation procedure. The data used for the calculations are obtained from publicly available sources and the example shows that the simplified method arrives at a similar foundation to the one actually used in the project.

Standards in green public procurement – A framework to enhance innovation

Green Public Procurement (GPP) is defined as purchasing which reduces environmental impacts across product or service life cycles. Standardization, as another demand-side measure, complements GPP by shaping standards, which when strategically applied in tenders can drive market demand for environmental products and services and stimulate eco-innovation. However, the uptake of GPP, use of standards, and consideration of innovation in public procurement is limited, and analyses often only consider two of the three. To broaden conceptualizations of innovation in GPP, this paper conducts a review and synthesis of relevant literature to examine roles for standards and standardization in GPP according to innovation life cycle stages, from R&D through to commercialization and diffusion. It develops a conceptual space for product and service innovations according to the purchase of off-the-shelf products or services, incremental adaptations through the public procurement of innovation, and radical innovations using pre-commercial procurement and innovation partnerships. Roles for particular types of standards are examined as inputs to these different mechanisms. Focusing on pre-commercial procurement, standardization is then situated according to distinct stages in the R&D process. Four case studies from literature are applied to support this framework. This paper creates a foundation for integrated understanding of the functions of standards - and applicability of standardization - in demand-side product and process development and market penetration for environmental improvement. Its framework may be used as a conceptual space for public procurers across Europe to better visualize characteristics of products and services when making tender design decisions based on functionality and rewarding performance. Further study should also consider procurer capabilities for sourcing and revealing knowledge to improve procurement outcomes, as ultimately capturing the benefits from GPP hinges upon its ability to be conducted in practice.