Unsupervised Grouping of Public Procurement Similar Items: Which Text Representation Should I Use?

Abstract

In public procurement, establishing reference prices is essential to guide competitors in setting product prices. Group-purchased products, which are not standardized by default, are necessary to estimate reference prices. Text clustering techniques can be used to group similar items based on their descriptions, enabling the definition of reference prices for specific products or services. However, selecting an appropriate representation for text is challenging. This paper introduces a framework for text cleaning, extraction, and representation. We test eight distinct sentence representations tailored for public procurement item descriptions. Among these representations, we propose an approach that captures the most important components of item descriptions. Through extensive evaluation of a dataset comprising over 2 million items, our findings show that using sophisticated supervised methods to derive vectors for unsupervised tasks offers little advantages over leveraging unsupervised methods. Our results also highlight that domain-specific contextual knowledge is crucial for representation improvement.