Strategic Forecasting: Unleashing The Power of AI for Smart Predictions in Public Procurement of Infrastructure Projects

Abstract

This research endeavors to revolutionize the landscape of public infrastructure procurements through the implementation of advanced artificial intelligence (AI) techniques. Focusing on water and utility infrastructure projects, the study harnesses historical datasets encompassing tender details, estimated procurement values, bid submissions, winning bid amounts, work contract types (Red FIDIC/Yellow FIDIC), and project locations (continent/coastal). The core objective is to develop a cutting-edge predictive model that enhances precision and efficiency in estimating winning bid amounts. By leveraging AI algorithms, this research aims to provide strategic foresight into bid estimations, enabling more informed decision-making for public procurement stakeholders. The model seeks to optimize the bid selection process, improve transparency, and reduce financial risks. The analysis delves into the intricate relationships between various factors influencing bid outcomes, facilitating a nuanced understanding of the dynamics inherent in infrastructure procurements. The proposed model not only contributes to the strategic forecasting of winning bid amounts but also promotes a paradigm shift in how public procurements are approached. It aligns with the broader goal of promoting data-driven decision-making in the realm of infrastructure development. The findings of this study hold significant implications for policymakers, project managers, and stakeholders involved in infrastructure projects, offering a valuable tool for enhancing the efficiency and effectiveness of public procurement processes. In summary, this research strives to unlock the full potential of AI in the realm of public infrastructure procurements, introducing a transformative approach to bid estimations that empowers decision-makers with enhanced predictive insights. The outcomes of this study are poised to shape a more streamlined, transparent, and efficient future for public procurements, particularly in the context of water and utility infrastructure projects.