Three Quantitative Management Problems in Public Procurement and Decision Procedures for their Analysis and Solving

Abstract

Three management problems that a state (or a public administration acting on its behalf) faces in procuring goods and/or services are considered: a) choosing the type of a contract to be awarded and the type of a competitive bidding to determine the winning bid, b) setting the initial price for a contract being the subject of the bidding, and c) designing (or choosing) a set of rules for determining the winning bid by means of the chosen competitive bidding. Mathematical models and decision procedures for analyzing and solving these problems are discussed.