Concessionaire Selection Model Based on Data Envelopment Analysis

Abstract

The build-operate-transfer (BOT) project delivery approach is gaining popularity because it offers public employers the advantages of delivering vital infrastructure projects while minimizing the need to secure financing. However, one key challenge for BOT projects is concessionaire selection. Poor concessionaire selection may result in difficulties in execution, or even failures to deliver vital projects to the public. As a result, there is a need for an appropriate methodology to select the concessionaire that provides the best offer and has strong overall capabilities. The purpose of this paper is to propose a concessionaire selection model that is based on data envelopment analysis (DEA). The strengths of the proposed DEA model include its ability to incorporate dozens of subjective and objective criteria and to accommodate any number of considered concessionaires. Based on both extensive literature review and practitioners’ input, the research identifies 22 concessionaire selection criteria. The proposed DEA model was practically illustrated based on a case that includes six competing concessionaires.