Risk mitigation in the bidding process using mixed programming

Usually, the early phase of a project is characterized by uncertainties such as external factors, shifting business objectives, poor written requirements or incomplete definition of the procedure for project realization. The bidding process takes place in the project life cycle (PLC) as a very relevant step. Normally, it is undertaken in a very scarce scheduling, with poor automatization and database support in opposition to it would be expected. This paper presents a decision support system to face complex bidding processes and therefore, to help the bid manager. A risk-based approach has been incorporated in the bidding process using a structure where risks, impacts and mitigation actions are involved. Given a set of mitigation actions, the proposed method minimises a specific cost function using mixed programming.