Decision support for bid evaluation

The process of evaluating bids is characterized by the existence of multiple criteria, some of which are qualitative. Existing methods used in bid evaluation all have their limitations. The use of the analytic hierarchy process (AHP) ratings approach to select a subcontractor for EG&G WASC, Inc. to support the company in its conduct of the Department of Energy’s Clean Coal Program indicates that the approach is useful for evaluating bids and selecting among competing contractors. In a similar manner, program managers can use the approach to evaluate suppliers, purchases and staff. Microcomputer implementation of the approach simplifies its use.