Multi-criteria decision analysis in public procurement : a plan from the South

Abstract

The South African constitution prescribes five principles of public procurement without defining the relationship between them: the public procurement system must be fair, equitable, transparent, cost-effective and competitive. The authors show that techniques derived from utility theory provide the analytical tools for analysing and applying these potentially conflicting constitutional requirements. The current regulatory regime around the Preferential Procurement Policy Framework Act is analysed and found to be satisfactory. Competing legislation found in the Broad-Based Black Economic Empowerment Act and its Codes of Good Practice is unlikely to provide such a good fit with the Constitution.