Application of the AHP methodology in making a proposal for a public work contract

In this paper the Analytic Hierarchy Process (AHP) approach is proposed as a tool to select the best discount in defining a proposal for a public work contract. In the tender for public work contracts the quality characteristics of the work and time schedule are strictly defined. Consequently, the only important parameter in order to win the contract is the discount offered compared to the price of the tender. However, the definition of ‘suitable’ discount is a critical process involving the evaluation of many variables and aspects. For this reason, a Decision Support System (DSS) tool is desirable for the proposal management. A hierarchical structure comprising 31 criteria is reported here to illustrate the performance and characteristics of the technique proposed. This structure concerns an analysis of the proposal management process in a company which decorates public garden and park structures.