Incorporation of decision engine in electronic procurement model using fuzzy MCDM

Abstract

In order to fulfill the right to information of Bangladeshi people, government has initiated A2I program promoting automation, informationization and transformationization which all are required for successful electronic procurement practice. Central Procurement Technical Unit (CPTU) has adopted the e-GP Access Model consists of the domain like General Public, Development Partners, Tendering Community, Evaluation Committee, Procuring Agencies, Payment Service Providers, Operations & Maintenance Partners, e-GP Administrator. This buyer centric model has been modified to e-Marketplace model also incorporating Decision Engine consists of few subsystems of Procurement Risk Identifier, Bidder Selector, Procurement Maturity Level Identifier and Anti Spyware which were absent in e-GP Access Model. Procurement Risk Identifier is developed based on Raymond J Madacy’s software procurement model where the attributes for procurement project risk are taken with some revision and fuzzy MCDM is applied for those risk attributes to determine the risk level. A risk mitigation algorithm is presented to mitigate the risk found. Beside, the Bidder Selector is outlined with revision of Foriborz Jolai’s model incorporating Price Break Model for considering quantity discount offer which was not found in Jolai model. Procurement maturity is another aspect for professional attitude for organizational and administrative practices. Measurement method for professional maturity in procurement practice is discussed with the application of fuzzy MCDM on the criteria derived by Stephen Guth and grading method is discussed with combining both Stephen Guth and Wilco Van Duinkerken scale of procurement maturity. Finally fuzzy MCDM results have been compared with normal AHP result for the same choice of preference used in the illustrations.