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Two envelope contract is to be constructed where each contractor submits two envelope; technical and financial envelope. Select the best contractor considering the following information:

Two envelope contract is to be constructed where each contractor submits two envelope; technical and financial envelope. Select the best contractor considering the following information:

Criterion

Contractors

A

B

C

D

E

Bid amount (106 SR)

8

6.5

6

7.2

7.5

Life cycle cost (106 SR)

2

1.5

2.2

1.3

1.4

Years in business

30

18

16

27

10

Project duration (months)

18

24

23

21

22

Reputation and staff

VG

G

G

E

VG

Note: E = Excellent @ 100%, VG = very Good @ 80%, G = Good @60%

Given that:

  1. Financial evaluation = 40% of them, 30% on Bid amount only
  2. Technical evaluation is distributed evenly on all criteria

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