[Opinion] The quality criterion in market procurement

Opinion piece by Prof. Othmane Benmoussa of the Euromed Polytechnic School published on Medias24

The common practice in procurement of awarding contracts to the lowest bidders is not optimal in situations where quality is important but difficult to verify in a contract.

This article shows that the best way to find an appropriate supplier when facing quality problems is to set a floor price below which bids will not be considered. This prevents higher-quality suppliers from being disadvantaged by underbidding and, consequently, reduces the probability that the contract will be awarded to a dubious or underqualified entity. Moreover, this floor price technique, inspired by lowballing, is not only useful for public procurement but is also relevant for private organizations.

⤵️ To read the full article, click on the following link:
https://medias24.com/chronique/le-critere-de-la-qualite-dans-ladjudication-des-marches/