Reverse Auctions | The Contracting Education Academy

September 5, 2018 By AMK

GSA to close down reverse auction platform after 5 years

Look back over the last say 25 years and see if you can remember the last time an agency publicly admitted defeat with a program or project and decided to move on.

Don’t think about a contract that failed or even an act of Congress ending a specific program, but focus on a service offering that just couldn’t make it.

It’s hard to find one. Right?

This is why the General Services Administration’s decision to shut down its reverse auction tool on Dec. 31 is significant.

GSA is pulling the plug after just over five years.

Keep reading this article at: https://federalnewsradio.com/reporters-notebook-jason-miller/2018/08/gsa-to-close-down-reverse-auction-platform-after-5-years/

March 9, 2017 By AMK

Navy officially adopts GSA reverse auctions acquisition platform

The Department of the Navy, looking for more efficiency in its acquisition process, has adopted the General Service Administration’s Reverse Auctions eTool to increase savings on commonly purchased office products, equipment and services.

Signing a memorandum of understanding on Jan. 18, 2017, the two parties have extended a longstanding partnership for reverse auction procurements, where sellers compete to win business from agencies with prices decreasing as the competitive auction progresses.

The eTool can be used to facilitate the request for and submission of quotes, offers or proposals for products, services and solutions through GSA Multiple Award Schedules and Blanket Purchase Agreements and Open Market (non-schedule) acquisitions.

Keep reading this article at: http://www.federaltimes.com/articles/navy-officially-adopts-gsa-reverse-auctions-acquisition-platform

January 7, 2016 By AMK

Viewpoint: Reverse auctions don’t help agencies or taxpayers

Dozens of organizations representing hundreds of thousands of America’s small construction firms— whether minority-owned, women-owned, veteran-owned, HUBZone or just plain old small business—agree: using reverse auctions to procure construction services for the federal government does not save money, does not encourage quality and does not help small businesses.

Reverse auctions do not guarantee the lowest price for a contract. Rather, like in “The Price is Right” game show, they guarantee that one business will underbid others by just one dollar. A bidder has no incentive to offer its best price and may never have to offer its lowest price. Nevertheless, business do offer their best price for low price technically acceptable procurements and other contracting approaches conducted through sealed bids, where competitors do not know their competitor’s price. Data reporting any bid savings is, therefore, highly questionable.

Reverse auctions do not make sense for the procurement of many contracts, particularly those for professional services and especially construction services.

Keep reading this article at: http://www.govexec.com/contracting/2015/12/viewpoint-reverse-auctions-dont-help-agencies-or-taxpayers/124791/

June 30, 2015 By AMK

Long-time in coming, OFPP reverse auction memo rings hollow

Anne Rung, OFPP administrator, has released a six-page policy memo basically reminding agencies of best practices to keep in mind when using this tool.

But the only real instruction to agencies is for them to send her office a point of contact by July 10.

“OFPP seeks to work with agencies to identify the essential management data points (e.g., price paid for item, fees paid (if any), number of bidders and level of interactive bidding) and mechanisms for collecting and aggregating information in a manner that leverages technology and avoids the need for manual collection,” Rung wrote in the memo. “For your awareness, as a further step, the Federal Acquisition Regulatory Council will open a case to develop coverage on the use of reverse auctions in the Federal Acquisition Regulation and will address the guidance in this memorandum, as appropriate.”

The rest of the memo doesn’t necessarily address any of the long-held concerns by the Government Accountability Office, lawmakers and vendors.

Keep reading this article at: http://www.federalnewsradio.com/517/3875528/Long-time-incoming-OFPP-reverse-auction-memo-rings-hollow

February 24, 2015 By AMK

AF lifts suspension of reverse auctioneer FedBid

Just a few weeks after the Air Force suspended contracts with FedBid, a Vienna, Va. reverse-auction company and requested the company’s debarment, the service lifted the suspension after reaching an administrative agreement, according to a Feb. 20, 2015 Air Force document.

The suspension stems from a Veterans Affairs Department inspector general report that said Susan Taylor, Veterans Health Administration deputy procurement officer, pressured staff repeatedly in emails to speed up the acquisition process and pick FedBid for the reverse auction contracts.

The IG report says Taylor, “improperly disclosed non-public VA information to unauthorized persons, misused her position and VA resources for private gain, and engaged in a prohibited personnel practice when she recommended that a subordinate senior executive service employee be removed from SES during her probation period.”

The agreement will end both the suspension and debarment proceedings as long as FedBid “maintains the business honesty and integrity required of a government contractor and that the company operates in strict compliance with all applicable laws, regulations and terms of its governance contracts and subcontracts.”

Keep reading this article at: http://www.fiercegovernment.com/story/air-force-lifts-suspension-fedbid/2015-02-23

Look back over the last say 25 years and see if you can remember the last time an agency publicly admitted defeat with a program or project and decided to move on.

Anne Rung, OFPP administrator, has released a six-page policy memo basically reminding agencies of best practices to keep in mind when using this tool.

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