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Handling conditions on lots in tenders

VAN MANEN, R. (2017) Handling conditions on lots in tenders.

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Abstract:Tendering in lots is strongly encouraged in the most recent EU directives on public procurement. However, unconditionally tendering in lots may suppress dependencies between lots, resulting in failing to achieve maximum value for money for the taxpayer. Conditions on lots allow buyers and suppliers to express dependencies between lots, enabling them to attain cost-effectiveness and impact procurement policy opportunities. These conditions have been effective in private procurement, as shown by anecdotal success cases. However, use is limited in the public sector, despite showing that significant advances in attaining value for money and policy opportunities can be made. The research objective of this thesis is to tackle the potential problem drivers behind the limited use of conditions in the public sector to encourage future use. Four main problem drivers emerge; lack of knowledge on the benefits of conditions, difficulty of formulation and optimization and ambiguity regarding legality of implementing conditions. To tackle these problems, a study of literature and practice cases is conducted, enumerating conditions that may add to either buyer or supplier procurement objectives. After that, the difficulty of formulating these conditions as mathematical programming problems is analysed, after which their respective methods of optimization and associated software are exp.....
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:50 technical science in general, 85 business administration, organizational science
Programme:Industrial Engineering and Management BSc (56994)
Link to this item:http://purl.utwente.nl/essays/73434
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