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This report provides useful information to ammunition managers on the Multiple-Bid Evaluation Model. The purpose of the Multiple-Bid Evaluation Model is to enable management to evaluate the economic and base protection impacts of available alternative solutions for complex procurement actions involving large numbers of multiple bidders, multiple bid levels, and multiple buy periods. The model can be used for single or multiple item buys. The sequence of steps by which the model achieves this objective is as follows: Input data for the model includes the procurement objectives (items, quantities, and time periods), bidder information (all costs associated with selecting a specific bidder), and base protection costs. These base protection costs are total costs of layaway and maintenance of Government-furnished equipment at those facilities which are not selected for a portion of the contract. The data conversion module accepts the verified input data and converts it into usable form for the main processing module. The main processing module uses dynamic programming techniques to identify least-cost and alternative solutions. Dynamic programming is an efficient solution technique for multi-stage problems. In the model, the method used employs an approach in which any two bidders are considered. Then, only those bids made which can enter into the final solution are carried forward as a combination to compete against the next bidder. This procedure is repeated until a final combination is obtained. This final combination represents the least-cost solution.
This report documents the Multiple-Bid Evaluation Model (MBEM) as adapted and used by the JCAP Production and Mobilization Planning Division. The model uses dynamic programming to conduct bid analyses for selection of a combination of suppliers to be awarded portions of a total contract. These analyses include the finding of least cost and next least cost solutions for the total requirement and for fractions of the total requirement. In the case of procuring a single item for a single buy period, the model can also find least and next least costs for each possible number of suppliers. This additional analysis enables management to evaluate the costs of using additional suppliers in order to have a broader production base. The model consists of four independent computer programs for the following situations: (1) a single buy period and a single type item; (2) two buy periods, or two items for one buy period; (3) three buy periods, or three items for one buy period; and (4) a version of Program 1 which finds least cost and next least cost solutions for each possible number of bidders to be selected. This volume contains: MBEM mathematical formulations and the computational methods used; Flowcharts for each program; and Computer listings complete with comments and identification of variables.
Sections 1-2. Keyword Index.--Section 3. Personal author index.--Section 4. Corporate author index.-- Section 5. Contract/grant number index, NTIS order/report number index 1-E.--Section 6. NTIS order/report number index F-Z.
This guide is intended to provide guidance to borrowers on bid evaluation procedures and how to prepare a bid evaluation report to be submitted to the Asian Development Bank, in connection with the procurement of contracts financed in whole or in part from proceeds of its loans.