EVALUATION OF THE PRICE WEIGHTING OF WINNERS OF PROCUREMENT OF GOODS AND SERVICES IN PUBLIC PROJECTS

Abstract

Competitive tendering for public construction projects is a cornerstone for achieving cost efficiency, transparency, and fair competition in public procurement. However, persistent challenges such as inaccuracies in bid evaluation, contractor selection fraud, and suboptimal project execution hinder its effectiveness. Previous research highlights the potential of forensic accounting and merit point systems in addressing these issues, yet a significant knowledge gap remains regarding the role of bid price weighting and its implications for contractor selection in Indonesia's public sector.

This study aims to fill this gap by analyzing empirical data from electronic procurement documents spanning 2017–2022. A case study method was employed, examining 107 bid submissions to assess bid price weights and their variations. Descriptive statistical tools, including mean, variance, and standard deviation, were used to analyze the data. The results reveal that bid price weights range from 63.75% to 99.50%, with an average weight of 87.63%. A standard deviation of 8.01% indicates moderate variability in bid price weighting, suggesting a lack of standardized evaluation criteria.

The findings underscore the importance of adopting a more balanced evaluation framework that integrates technical quality and price. High price weighting often leads to substandard project outcomes due to inadequate planning or underqualified contractors. Conversely, best-value approaches that combine cost efficiency with technical excellence have demonstrated superior project performance.

The study provides practical implications for policymakers, contractors, and consultants, advocating for revised evaluation criteria that prioritize quality alongside cost. Additionally, integrating e-procurement systems with advanced decision-making models can enhance transparency and objectivity in public procurement. By addressing these gaps, the research contributes to both academic literature and practical efforts to improve public project success through more equitable and transparent procurement practices.