dc.description.abstract | Although the Article 46 of Government Procurement Act clearly states the principle for the rules of setting government estimate for a procurement, there exists tremendous differences for different entities. The reason is because not every entity has developed its own standard operating procedures of set estimate, the procurement personnel may no propose an appropriate estimate, which is suggested by the Article 46 of Government Procurement Act, to the head of the entity or the personnel authorized by the head, and hence may generate an offered price which is so low that it evidently appears to be unreasonable, and thus delay the procurement efficiency. This study aims to develop a standard operating procedure for setting an estimate to mitigate the inefficiency of the procurement.
Taipei County Government has followed the rules suggested by the Article 46 of Government Procurement Act to develop a standard operating procedure for setting an estimate to offer to its related entities for reference. Under the framework of above standard operating procedure, this study takes the advantage of the data from civil and hydraulic construction work procurement in Taishan Towship, Taipei County during 2008 and 2010 to analyze the unit prices of construction items offered by the winning tender, and then propose a “80/20” rule to simplify the cost analysis of government procurement occurred in the moment of setting government estimate. According to the results generated by “80/20” rule, this study further explore a proper weight of reference items for setting the government estimate, such as the drawings, specifications, and contract requirements by taking into account the costs, markets prices, and past award records of government entities, to remove the unreasonable or inappropriate weight of each item, and then generate the most appropriate weights derive by the method of optimization.
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