Date of Award:

5-1973

Document Type:

Thesis

Degree Name:

Master of Business Administration (MBA)

Department:

Management

Department name when degree awarded

Business Administration

Committee Chair(s)

Gene Kartchner

Committee

Gene Kartchner

Committee

Allen Kartchner

Abstract

The purpose of this paper is to demonstrate a model for competitive bidding. The model is based upon a thorough knowledge of the competitors. The model is designed to optimize a solution, given the desired profit and the minimum probability of success. Various cases are considered showing how the quantitative and qualitative nature of the competitors' bidding history may influence the final optimized solution.

In order to optimize a solution, a reduction in total manhours is usually needed. The reduction in manhours increases the risk of a cost overrun upon job completion. The magnitude of the risk, as well as the final optimized solution, was shown to be a function of the type of contract to be negotiated.

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