Company that would be awarded the contract if categories of quality and price are given 80 % and 20% weight respectively. Concept introduction: Bidding is the process used to select the contractor who would do the required work at lowest price. It is the simplest procedure where the cost is calculated and the lowest responsive price is selected to get the work done.

Question

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Answer 1

Question

Chapter 9, Problem 2.5Q

Summary Introduction

Interpretation:Company that would be awarded the contract if categories of quality and price are given 80% and 20% weight respectively.

Concept introduction: Bidding is the process used to select the contractor who would do the required work at lowest price. It is the simplest procedure where the cost is calculated and the lowest responsive price is selected to get the work done.

Expert Solution & Answer

Explanation of Solution

The procurement department of H hotels is evaluating tenders for its newest hotel resort. Four tenders have been received and tender is being evaluated based on quality and price. Quality is being quantized on a 100 point scale where 50 points is for method statement, 10 points for environmental approach and 60 points for quality and seniority of the company’s project team.

Bid prices are converted based on a 100 point score where lowest price is awarded 100 points and 1 point is penalized for each full $100,000 that price exceeds the lowest price in the group of bids.

Details of bids are as follows:

1.) OR LLC bids $4 million for construction cost; $200,000 for setup costs; $300,000 for overhead and profit; design fees of 5% of construction costs and project risk fee of 1% of construction costs.

So total price for bid would be:

$4,000,000+$200,000+$300,000+(5% of $4,000,000)+(1% of $4,000,000)=$4,740,000

2.) WC bids $3.8 million for construction cost; $250,000 for setup costs; $200,000 for overhead and profit; design fees of 4% of construction costs and project risk fee of 1.5% of construction costs.

So total price for bid would be:

$3,800,000+$250,000+$200,000+(4% of $3,800,000)+(1.5% of $3,800,000)=$4,459,000

3.) UC bids $3.6 million for construction cost; $300,000 for setup costs; $150,000 for overhead and profit; design fees of 7% of construction costs and project risk fee of 1% of construction costs.

So total price for bid would be:

$3,600,000+$300,000+$150,000+(7% of $3,600,000)+(1% of $3,600,000)=$4,338,000

4.) DC bids $4.2 million for construction cost; $200,000 for setup costs; $200,000 for overhead and profit; design fees of 4% of construction costs and project risk fee of 2% of construction costs.

So total price for bid would be:

$4,200,000+$200,000+$200,000+(4% of $4,200,000)+(2% of $4,200,000)=$4,852,000

Lowest offer price is from UCcosting $4,338,000 . So price score of UC would be 100 .

Company	Bid price	Difference in bid price with lowest bid price	Price score	Quality score = score for method statement + score for environment approach + score for quality and seniority of project management team
OR LLC	$4,470,000	$132,000	(100−1)=99	(45+9+35)=89
WC	$4,459,000	$121,000	(100−1)=99	(45+10+40)=95
UC	$4,338,000	$0	100	(42+8+32)=82
DC	$4,852,000	$514,000	(100−5)=95	(49+9+39)=97

Now price is given weightage of 20% and quality is given at 80%

Thus weighted score of tender would be:

Company	Price score	Quality score = score for method statement + score for environment approach + score for quality and seniority of project management team	Weighted average score
OR LLC	(100−1)=99	(45+9+35)=89	(0.20×99+0.80×89)=91
WC	(100−1)=99	(45+10+40)=95	(0.20×99+0.80×95)=95.8
UC	100	(42+8+32)=82	(0.20×100+0.80×82)=85.6
DC	(100−5)=95	(49+9+39)=97	(0.20×95+0.80×97)=96.6

Under linear averaging method score of each tender will be result of sum of individual score in each category multiplied by corresponding category weight.

DC should be awarded the contract under average weighted linear cost method as it has the highest average weighted score.

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Students have asked these similar questions

Cost-Based Pricing Decision Jeremy Costa, owner of Costa Cabinets Inc., is preparing a bid on a job that requires $2,610 of direct materials, $2,349 of direct labor, and $1,697 of overhead. Jeremy normally applies a standard markup based on cost of goods sold to arrive at an initial bid price. He then adjusts the price as necessary in light of other factors (e.g., competitive pressure). Last year's income statement is as follows: Sales $175,500 Cost of goods sold 94,770 Gross margin $80,730 Selling and administrative expenses 46,300 Operating income $34,430 Required: 1. Calculate the markup that Jeremy will use. Round your answer to one decimal place. % 2. What is Jeremy's initial bid price? Round your answer to the nearest dollar.

As a general understanding, which of the following is preferred as a result of the bidding phase of procurement, and why: A. Lowest bidder declared as winner. B. Highest bidder declared as winner.

a premier league football club estimates that whilst the price elasticity of demand for its first-team fixtures is (-)0.3, for second-team games the corresponding elasticity is (-)2 2. provide an explanation for this difference in elasticities and advice the club how this might influence its pricing strategy.

Answer 2

Question

Chapter 9, Problem 2.5Q

Summary Introduction

Interpretation:Company that would be awarded the contract if categories of quality and price are given 80% and 20% weight respectively.

Concept introduction: Bidding is the process used to select the contractor who would do the required work at lowest price. It is the simplest procedure where the cost is calculated and the lowest responsive price is selected to get the work done.

Expert Solution & Answer

Explanation of Solution

The procurement department of H hotels is evaluating tenders for its newest hotel resort. Four tenders have been received and tender is being evaluated based on quality and price. Quality is being quantized on a 100 point scale where 50 points is for method statement, 10 points for environmental approach and 60 points for quality and seniority of the company’s project team.

Bid prices are converted based on a 100 point score where lowest price is awarded 100 points and 1 point is penalized for each full $100,000 that price exceeds the lowest price in the group of bids.

Details of bids are as follows:

1.) OR LLC bids $4 million for construction cost; $200,000 for setup costs; $300,000 for overhead and profit; design fees of 5% of construction costs and project risk fee of 1% of construction costs.

So total price for bid would be:

$4,000,000+$200,000+$300,000+(5% of $4,000,000)+(1% of $4,000,000)=$4,740,000

2.) WC bids $3.8 million for construction cost; $250,000 for setup costs; $200,000 for overhead and profit; design fees of 4% of construction costs and project risk fee of 1.5% of construction costs.

So total price for bid would be:

$3,800,000+$250,000+$200,000+(4% of $3,800,000)+(1.5% of $3,800,000)=$4,459,000

3.) UC bids $3.6 million for construction cost; $300,000 for setup costs; $150,000 for overhead and profit; design fees of 7% of construction costs and project risk fee of 1% of construction costs.

So total price for bid would be:

$3,600,000+$300,000+$150,000+(7% of $3,600,000)+(1% of $3,600,000)=$4,338,000

4.) DC bids $4.2 million for construction cost; $200,000 for setup costs; $200,000 for overhead and profit; design fees of 4% of construction costs and project risk fee of 2% of construction costs.

So total price for bid would be:

$4,200,000+$200,000+$200,000+(4% of $4,200,000)+(2% of $4,200,000)=$4,852,000

Lowest offer price is from UCcosting $4,338,000 . So price score of UC would be 100 .

Company	Bid price	Difference in bid price with lowest bid price	Price score	Quality score = score for method statement + score for environment approach + score for quality and seniority of project management team
OR LLC	$4,470,000	$132,000	(100−1)=99	(45+9+35)=89
WC	$4,459,000	$121,000	(100−1)=99	(45+10+40)=95
UC	$4,338,000	$0	100	(42+8+32)=82
DC	$4,852,000	$514,000	(100−5)=95	(49+9+39)=97

Now price is given weightage of 20% and quality is given at 80%

Thus weighted score of tender would be:

Company	Price score	Quality score = score for method statement + score for environment approach + score for quality and seniority of project management team	Weighted average score
OR LLC	(100−1)=99	(45+9+35)=89	(0.20×99+0.80×89)=91
WC	(100−1)=99	(45+10+40)=95	(0.20×99+0.80×95)=95.8
UC	100	(42+8+32)=82	(0.20×100+0.80×82)=85.6
DC	(100−5)=95	(49+9+39)=97	(0.20×95+0.80×97)=96.6

Under linear averaging method score of each tender will be result of sum of individual score in each category multiplied by corresponding category weight.

DC should be awarded the contract under average weighted linear cost method as it has the highest average weighted score.

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Answer 3

Question

Chapter 9, Problem 2.5Q

Summary Introduction

Interpretation:Company that would be awarded the contract if categories of quality and price are given 80% and 20% weight respectively.

Concept introduction: Bidding is the process used to select the contractor who would do the required work at lowest price. It is the simplest procedure where the cost is calculated and the lowest responsive price is selected to get the work done.

Expert Solution & Answer

Explanation of Solution

The procurement department of H hotels is evaluating tenders for its newest hotel resort. Four tenders have been received and tender is being evaluated based on quality and price. Quality is being quantized on a 100 point scale where 50 points is for method statement, 10 points for environmental approach and 60 points for quality and seniority of the company’s project team.

Bid prices are converted based on a 100 point score where lowest price is awarded 100 points and 1 point is penalized for each full $100,000 that price exceeds the lowest price in the group of bids.

Details of bids are as follows:

1.) OR LLC bids $4 million for construction cost; $200,000 for setup costs; $300,000 for overhead and profit; design fees of 5% of construction costs and project risk fee of 1% of construction costs.

So total price for bid would be:

$4,000,000+$200,000+$300,000+(5% of $4,000,000)+(1% of $4,000,000)=$4,740,000

2.) WC bids $3.8 million for construction cost; $250,000 for setup costs; $200,000 for overhead and profit; design fees of 4% of construction costs and project risk fee of 1.5% of construction costs.

So total price for bid would be:

$3,800,000+$250,000+$200,000+(4% of $3,800,000)+(1.5% of $3,800,000)=$4,459,000

3.) UC bids $3.6 million for construction cost; $300,000 for setup costs; $150,000 for overhead and profit; design fees of 7% of construction costs and project risk fee of 1% of construction costs.

So total price for bid would be:

$3,600,000+$300,000+$150,000+(7% of $3,600,000)+(1% of $3,600,000)=$4,338,000

4.) DC bids $4.2 million for construction cost; $200,000 for setup costs; $200,000 for overhead and profit; design fees of 4% of construction costs and project risk fee of 2% of construction costs.

So total price for bid would be:

$4,200,000+$200,000+$200,000+(4% of $4,200,000)+(2% of $4,200,000)=$4,852,000

Lowest offer price is from UCcosting $4,338,000 . So price score of UC would be 100 .

Company	Bid price	Difference in bid price with lowest bid price	Price score	Quality score = score for method statement + score for environment approach + score for quality and seniority of project management team
OR LLC	$4,470,000	$132,000	(100−1)=99	(45+9+35)=89
WC	$4,459,000	$121,000	(100−1)=99	(45+10+40)=95
UC	$4,338,000	$0	100	(42+8+32)=82
DC	$4,852,000	$514,000	(100−5)=95	(49+9+39)=97

Now price is given weightage of 20% and quality is given at 80%

Thus weighted score of tender would be:

Company	Price score	Quality score = score for method statement + score for environment approach + score for quality and seniority of project management team	Weighted average score
OR LLC	(100−1)=99	(45+9+35)=89	(0.20×99+0.80×89)=91
WC	(100−1)=99	(45+10+40)=95	(0.20×99+0.80×95)=95.8
UC	100	(42+8+32)=82	(0.20×100+0.80×82)=85.6
DC	(100−5)=95	(49+9+39)=97	(0.20×95+0.80×97)=96.6

Under linear averaging method score of each tender will be result of sum of individual score in each category multiplied by corresponding category weight.

DC should be awarded the contract under average weighted linear cost method as it has the highest average weighted score.

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Answer 4

Question

Chapter 9, Problem 2.5Q

Summary Introduction

Interpretation:Company that would be awarded the contract if categories of quality and price are given 80% and 20% weight respectively.

Concept introduction: Bidding is the process used to select the contractor who would do the required work at lowest price. It is the simplest procedure where the cost is calculated and the lowest responsive price is selected to get the work done.

Expert Solution & Answer

Explanation of Solution

The procurement department of H hotels is evaluating tenders for its newest hotel resort. Four tenders have been received and tender is being evaluated based on quality and price. Quality is being quantized on a 100 point scale where 50 points is for method statement, 10 points for environmental approach and 60 points for quality and seniority of the company’s project team.

Bid prices are converted based on a 100 point score where lowest price is awarded 100 points and 1 point is penalized for each full $100,000 that price exceeds the lowest price in the group of bids.

Details of bids are as follows:

1.) OR LLC bids $4 million for construction cost; $200,000 for setup costs; $300,000 for overhead and profit; design fees of 5% of construction costs and project risk fee of 1% of construction costs.

So total price for bid would be:

$4,000,000+$200,000+$300,000+(5% of $4,000,000)+(1% of $4,000,000)=$4,740,000

2.) WC bids $3.8 million for construction cost; $250,000 for setup costs; $200,000 for overhead and profit; design fees of 4% of construction costs and project risk fee of 1.5% of construction costs.

So total price for bid would be:

$3,800,000+$250,000+$200,000+(4% of $3,800,000)+(1.5% of $3,800,000)=$4,459,000

3.) UC bids $3.6 million for construction cost; $300,000 for setup costs; $150,000 for overhead and profit; design fees of 7% of construction costs and project risk fee of 1% of construction costs.

So total price for bid would be:

$3,600,000+$300,000+$150,000+(7% of $3,600,000)+(1% of $3,600,000)=$4,338,000

4.) DC bids $4.2 million for construction cost; $200,000 for setup costs; $200,000 for overhead and profit; design fees of 4% of construction costs and project risk fee of 2% of construction costs.

So total price for bid would be:

$4,200,000+$200,000+$200,000+(4% of $4,200,000)+(2% of $4,200,000)=$4,852,000

Lowest offer price is from UCcosting $4,338,000 . So price score of UC would be 100 .

Company	Bid price	Difference in bid price with lowest bid price	Price score	Quality score = score for method statement + score for environment approach + score for quality and seniority of project management team
OR LLC	$4,470,000	$132,000	(100−1)=99	(45+9+35)=89
WC	$4,459,000	$121,000	(100−1)=99	(45+10+40)=95
UC	$4,338,000	$0	100	(42+8+32)=82
DC	$4,852,000	$514,000	(100−5)=95	(49+9+39)=97

Now price is given weightage of 20% and quality is given at 80%

Thus weighted score of tender would be:

Company	Price score	Quality score = score for method statement + score for environment approach + score for quality and seniority of project management team	Weighted average score
OR LLC	(100−1)=99	(45+9+35)=89	(0.20×99+0.80×89)=91
WC	(100−1)=99	(45+10+40)=95	(0.20×99+0.80×95)=95.8
UC	100	(42+8+32)=82	(0.20×100+0.80×82)=85.6
DC	(100−5)=95	(49+9+39)=97	(0.20×95+0.80×97)=96.6

Under linear averaging method score of each tender will be result of sum of individual score in each category multiplied by corresponding category weight.

DC should be awarded the contract under average weighted linear cost method as it has the highest average weighted score.

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Answer 5

Chapter 9, Problem 2.5Q

Summary Introduction

Interpretation:Company that would be awarded the contract if categories of quality and price are given 80% and 20% weight respectively.

Concept introduction: Bidding is the process used to select the contractor who would do the required work at lowest price. It is the simplest procedure where the cost is calculated and the lowest responsive price is selected to get the work done.

Expert Solution & Answer

Explanation of Solution

The procurement department of H hotels is evaluating tenders for its newest hotel resort. Four tenders have been received and tender is being evaluated based on quality and price. Quality is being quantized on a 100 point scale where 50 points is for method statement, 10 points for environmental approach and 60 points for quality and seniority of the company’s project team.

Bid prices are converted based on a 100 point score where lowest price is awarded 100 points and 1 point is penalized for each full $100,000 that price exceeds the lowest price in the group of bids.

Details of bids are as follows:

1.) OR LLC bids $4 million for construction cost; $200,000 for setup costs; $300,000 for overhead and profit; design fees of 5% of construction costs and project risk fee of 1% of construction costs.

So total price for bid would be:

$4,000,000+$200,000+$300,000+(5% of $4,000,000)+(1% of $4,000,000)=$4,740,000

2.) WC bids $3.8 million for construction cost; $250,000 for setup costs; $200,000 for overhead and profit; design fees of 4% of construction costs and project risk fee of 1.5% of construction costs.

So total price for bid would be:

$3,800,000+$250,000+$200,000+(4% of $3,800,000)+(1.5% of $3,800,000)=$4,459,000

3.) UC bids $3.6 million for construction cost; $300,000 for setup costs; $150,000 for overhead and profit; design fees of 7% of construction costs and project risk fee of 1% of construction costs.

So total price for bid would be:

$3,600,000+$300,000+$150,000+(7% of $3,600,000)+(1% of $3,600,000)=$4,338,000

4.) DC bids $4.2 million for construction cost; $200,000 for setup costs; $200,000 for overhead and profit; design fees of 4% of construction costs and project risk fee of 2% of construction costs.

So total price for bid would be:

$4,200,000+$200,000+$200,000+(4% of $4,200,000)+(2% of $4,200,000)=$4,852,000

Lowest offer price is from UCcosting $4,338,000 . So price score of UC would be 100 .

Company	Bid price	Difference in bid price with lowest bid price	Price score	Quality score = score for method statement + score for environment approach + score for quality and seniority of project management team
OR LLC	$4,470,000	$132,000	(100−1)=99	(45+9+35)=89
WC	$4,459,000	$121,000	(100−1)=99	(45+10+40)=95
UC	$4,338,000	$0	100	(42+8+32)=82
DC	$4,852,000	$514,000	(100−5)=95	(49+9+39)=97

Now price is given weightage of 20% and quality is given at 80%

Thus weighted score of tender would be:

Company	Price score	Quality score = score for method statement + score for environment approach + score for quality and seniority of project management team	Weighted average score
OR LLC	(100−1)=99	(45+9+35)=89	(0.20×99+0.80×89)=91
WC	(100−1)=99	(45+10+40)=95	(0.20×99+0.80×95)=95.8
UC	100	(42+8+32)=82	(0.20×100+0.80×82)=85.6
DC	(100−5)=95	(49+9+39)=97	(0.20×95+0.80×97)=96.6

Under linear averaging method score of each tender will be result of sum of individual score in each category multiplied by corresponding category weight.

DC should be awarded the contract under average weighted linear cost method as it has the highest average weighted score.

Answer 6

Chapter 9, Problem 2.5Q

Summary Introduction

Interpretation:Company that would be awarded the contract if categories of quality and price are given 80% and 20% weight respectively.

Concept introduction: Bidding is the process used to select the contractor who would do the required work at lowest price. It is the simplest procedure where the cost is calculated and the lowest responsive price is selected to get the work done.

Expert Solution & Answer

Explanation of Solution

The procurement department of H hotels is evaluating tenders for its newest hotel resort. Four tenders have been received and tender is being evaluated based on quality and price. Quality is being quantized on a 100 point scale where 50 points is for method statement, 10 points for environmental approach and 60 points for quality and seniority of the company’s project team.

Bid prices are converted based on a 100 point score where lowest price is awarded 100 points and 1 point is penalized for each full $100,000 that price exceeds the lowest price in the group of bids.

Details of bids are as follows:

1.) OR LLC bids $4 million for construction cost; $200,000 for setup costs; $300,000 for overhead and profit; design fees of 5% of construction costs and project risk fee of 1% of construction costs.

So total price for bid would be:

$4,000,000+$200,000+$300,000+(5% of $4,000,000)+(1% of $4,000,000)=$4,740,000

2.) WC bids $3.8 million for construction cost; $250,000 for setup costs; $200,000 for overhead and profit; design fees of 4% of construction costs and project risk fee of 1.5% of construction costs.

So total price for bid would be:

$3,800,000+$250,000+$200,000+(4% of $3,800,000)+(1.5% of $3,800,000)=$4,459,000

3.) UC bids $3.6 million for construction cost; $300,000 for setup costs; $150,000 for overhead and profit; design fees of 7% of construction costs and project risk fee of 1% of construction costs.

So total price for bid would be:

$3,600,000+$300,000+$150,000+(7% of $3,600,000)+(1% of $3,600,000)=$4,338,000

4.) DC bids $4.2 million for construction cost; $200,000 for setup costs; $200,000 for overhead and profit; design fees of 4% of construction costs and project risk fee of 2% of construction costs.

So total price for bid would be:

$4,200,000+$200,000+$200,000+(4% of $4,200,000)+(2% of $4,200,000)=$4,852,000

Lowest offer price is from UCcosting $4,338,000 . So price score of UC would be 100 .

Company	Bid price	Difference in bid price with lowest bid price	Price score	Quality score = score for method statement + score for environment approach + score for quality and seniority of project management team
OR LLC	$4,470,000	$132,000	(100−1)=99	(45+9+35)=89
WC	$4,459,000	$121,000	(100−1)=99	(45+10+40)=95
UC	$4,338,000	$0	100	(42+8+32)=82
DC	$4,852,000	$514,000	(100−5)=95	(49+9+39)=97

Now price is given weightage of 20% and quality is given at 80%

Thus weighted score of tender would be:

Company	Price score	Quality score = score for method statement + score for environment approach + score for quality and seniority of project management team	Weighted average score
OR LLC	(100−1)=99	(45+9+35)=89	(0.20×99+0.80×89)=91
WC	(100−1)=99	(45+10+40)=95	(0.20×99+0.80×95)=95.8
UC	100	(42+8+32)=82	(0.20×100+0.80×82)=85.6
DC	(100−5)=95	(49+9+39)=97	(0.20×95+0.80×97)=96.6

Under linear averaging method score of each tender will be result of sum of individual score in each category multiplied by corresponding category weight.

DC should be awarded the contract under average weighted linear cost method as it has the highest average weighted score.

Answer 7

Chapter 9, Problem 2.5Q

Summary Introduction

Interpretation:Company that would be awarded the contract if categories of quality and price are given 80% and 20% weight respectively.

Concept introduction: Bidding is the process used to select the contractor who would do the required work at lowest price. It is the simplest procedure where the cost is calculated and the lowest responsive price is selected to get the work done.

Answer 8

Expert Solution & Answer

Explanation of Solution

The procurement department of H hotels is evaluating tenders for its newest hotel resort. Four tenders have been received and tender is being evaluated based on quality and price. Quality is being quantized on a 100 point scale where 50 points is for method statement, 10 points for environmental approach and 60 points for quality and seniority of the company’s project team.

Bid prices are converted based on a 100 point score where lowest price is awarded 100 points and 1 point is penalized for each full $100,000 that price exceeds the lowest price in the group of bids.

Details of bids are as follows:

1.) OR LLC bids $4 million for construction cost; $200,000 for setup costs; $300,000 for overhead and profit; design fees of 5% of construction costs and project risk fee of 1% of construction costs.

So total price for bid would be:

$4,000,000+$200,000+$300,000+(5% of $4,000,000)+(1% of $4,000,000)=$4,740,000

2.) WC bids $3.8 million for construction cost; $250,000 for setup costs; $200,000 for overhead and profit; design fees of 4% of construction costs and project risk fee of 1.5% of construction costs.

So total price for bid would be:

$3,800,000+$250,000+$200,000+(4% of $3,800,000)+(1.5% of $3,800,000)=$4,459,000

3.) UC bids $3.6 million for construction cost; $300,000 for setup costs; $150,000 for overhead and profit; design fees of 7% of construction costs and project risk fee of 1% of construction costs.

So total price for bid would be:

$3,600,000+$300,000+$150,000+(7% of $3,600,000)+(1% of $3,600,000)=$4,338,000

4.) DC bids $4.2 million for construction cost; $200,000 for setup costs; $200,000 for overhead and profit; design fees of 4% of construction costs and project risk fee of 2% of construction costs.

So total price for bid would be:

$4,200,000+$200,000+$200,000+(4% of $4,200,000)+(2% of $4,200,000)=$4,852,000

Lowest offer price is from UCcosting $4,338,000 . So price score of UC would be 100 .

Company	Bid price	Difference in bid price with lowest bid price	Price score	Quality score = score for method statement + score for environment approach + score for quality and seniority of project management team
OR LLC	$4,470,000	$132,000	(100−1)=99	(45+9+35)=89
WC	$4,459,000	$121,000	(100−1)=99	(45+10+40)=95
UC	$4,338,000	$0	100	(42+8+32)=82
DC	$4,852,000	$514,000	(100−5)=95	(49+9+39)=97

Now price is given weightage of 20% and quality is given at 80%

Thus weighted score of tender would be:

Company	Price score	Quality score = score for method statement + score for environment approach + score for quality and seniority of project management team	Weighted average score
OR LLC	(100−1)=99	(45+9+35)=89	(0.20×99+0.80×89)=91
WC	(100−1)=99	(45+10+40)=95	(0.20×99+0.80×95)=95.8
UC	100	(42+8+32)=82	(0.20×100+0.80×82)=85.6
DC	(100−5)=95	(49+9+39)=97	(0.20×95+0.80×97)=96.6

Under linear averaging method score of each tender will be result of sum of individual score in each category multiplied by corresponding category weight.

DC should be awarded the contract under average weighted linear cost method as it has the highest average weighted score.

Answer 9

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Answer 10

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Answer 11

Ch. 9 - Prob. 1DQ Ch. 9 - Prob. 2DQ Ch. 9 - Prob. 3DQ Ch. 9 - Prob. 4DQ Ch. 9 - Prob. 1P Ch. 9 - Prob. 2P Ch. 9 - Prob. 3P Ch. 9 - Prob. 4P Ch. 9 - Prob. 5P Ch. 9 - Prob. 6P

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