AuctionReverse: The reverse auction functionality allows the service buyer to enter exact requirements into the secure web-based reverse auction platform and service providers to make. GAO found that: Confusion exists concerning a lack of documentation about reverse auction service provider fees and their application to Federal contracts; there is a lack of sufficient data available for agencies to verify actual cost savings resulting from a reverse auction; the potential benefits of reverse auctions are not being maximized, as many reverse auctions are resulting in the receipt of only one offer or a lack of interactive competition amongst offerors (i.e., the submission of more than one offer by a vendor); and when reverse auctions are used in the acquisition of items from preexisting contracts, agencies need to consider the impact of potentially paying two fees, one to use the contract and one to use the services of the reverse auction service provider, when determining whether the use of a reverse auction is cost effective, in comparison to other methods that are available to obtain pricing for an acquisition. and services, go to documents in the last year, 86 The objective of the rule is to ensure the effective use of reverse auctions to procure supplies and services within the Federal Government. It is also permissible, at the Government's discretion, to indicate to all offerors the cost or price that the Government's price analysis, market research, and other reviews have identified as reasonable (41 U.S.C. (b) Reverse auction. Amend section 13.104 by adding paragraph (c) to read as follows: (c) When conducting a reverse auction, see subpart 17.8. (c) Offeror agreement. With Procurex, you get a full-service approach that weve fine-tuned during our more than 20 years of experience running money-saving reverse auctions. eCommerce. However, depending on the good or service in question, sometimes it is better and generally more efficient over the long run to pay a little more for greater quality. 1503 & 1507. Eisenbach Consulting will then facilitate the transaction for a quick, hassle-freeclose for both parties. About the Federal Register Competition is maximized by leveraging multiple auction strategies such as automatic auction extension & bid decrement rules. In the end, the contract goes to the seller willing to accept the lowest amount. A reverse auction can increase transparency in the bidding process by providing buyers with more information than they would normally be able to obtain. Reverse auctions can be very effective to get the best price on parts when conducted in a manner that is not detrimental to relationships with current suppliers. The description of a reverse auction tells most of the seller's story: The competitive process means they can reduce prices to compete for business until it is no longer profitable enough to commit to being the seller. Even something as complex as Supercomputers can be distilled down to an auction-ready specification that multiple vendors can compete on. Provides Governmentwide policy on: When the use of reverse auctions may be appropriate, conducting reverse auctions, and utilizing reverse auction service providers, including the evaluation of fees; Identifies when reverse auctions shall not be used; Requires contracting officers to evaluate and document that the use of a reverse auction service provider is cost effective; Requires agency acquisitions for reverse auction services to be competed amongst commercial reverse auction service providers, and for the resulting contract or agreement to be sufficiently documented and made available to agency contracting officers for future reference and verification needs; Clarifies requirements for contracting officers when conducting a reverse auction or utilizing the services of a reverse auction service provider; Requires the contracting officer's contact information to be available to offerors; and. Still have questions? Look over some of the more common ones or please contact us withany additional questions and concerns. [FR Doc. Reverse auctions can help save time and money, albeit sometimes at the cost of quality. . provide legal notice to the public or judicial notice to the courts. Prior to joining Procurex, Michael held various roles within the Corporate Executive Board (CEB) across a six-year tenure, culminating in managing the North American client services operations for the Procurement Strategy Council, a program whose membership included more than 600 large institutional organizations and was tasked with solving the most challenging procurement issues. 13771, because this rule is not a significant regulatory action under E.O. Digital-related transformation projects have marched up the priority list with a marked increase in departments looking to leverage advancements in technology to accelerate value. The strategic sourcing data is neatly compiled into easy-to-read reports that can quickly be exported and distributed to key stakeholders. Reverse auction service provider means a commercial or Government entity that provides a means for conducting reverse auctions when acquiring supplies or services to be used by the Government. Many private companies now offer software and/or services to facilitate reverse auctions, as well as use reverse auctions in their own supply chain management scheme. By then, Bret was prepared for his biggest career challenge transforming the reverse auction industry. for better understanding how a document is structured but Our professionals will help you refine your RFP specifications to ensure that only qualified vendors are invited to participate in the web-based auction. This process encourages vendors to leverage their expertise and knowledge in order to offer the best price for the goods or services being offered. ", "I have been in wireless for 12 years and this is the best RFI/RFP process that I have experienced, streamlined, concise, and easy to understand. In fact, as long as vendors know that those non-price factors have been structured in such a way as to keep the playing field level, they appreciate the transparency of the transaction. In her spare time, she likes to read, exercise and mentor young women on interview and application skills to help launch them into professional careers. (1) A competitive marketplace exists for the supplies and/or services being acquired; (2) Multiple offerors can satisfy the agency's requirement; and. David Kindness is a Certified Public Accountant (CPA) and an expert in the fields of financial accounting, corporate and individual tax planning and preparation, and investing and retirement planning. Quick, effective, and convenient way to maximize cost-savings while procuring energy Our reverse auction platform brings leading energy suppliers to the table all at once. As a result of its findings in 2013, GAO recommended that the Director of the Office of Management and Budget amend the FAR to address agencies' use of reverse auctions and issue Governmentwide guidance to maximize competition and savings when using reverse auctions. While this might not sound like the best deal for the sellers, many will still take part in the auction because a) they know they can drop out as soon as the bidding is no longer cost-effective, and b) the promise of good deals will draw many bidders. Serving nearly 20 Million international travellers, San This new subpart: The subpart also prescribes the use of a new provision, FAR provision 52.217-XX, Reverse Auction, and two new clauses, FAR clause 52.217-YY, Reverse Auction-Orders or Calls, and 52.217-ZZ, Reverse Auction Services. with buyers and suppliers within Africa. documents in the last year, by the National Oceanic and Atmospheric Administration This prohibition includes participation in a reverse auction by any entity with which the provider has a relationship that raises an actual or potential conflict of interest; and. Federal Register. Before bidding on a reverse auction site, it is important to carefully examine the terms and conditions of the auction and determine your requirements. Our self-service portal allows vendors to get up and running in no time. How do vendors receive notification of bids? This guide will walk you through: This graph provides our clients with the ability to watch their energy rates fall as suppliers compete and place lower bids. No, the buying entity would evaluate the online bids against their own criteria for value, price and vendor qualifications just as they would in a normal RFP process. Description. The GAO report noted that the FAR does not specifically address reverse auctions and recommended that the Office of Management and Budget (OMB) take steps to amend the FAR to address agencies' use of reverse auctions. Do you have an idea for an auction website that addresses a specific need in some particular industry or community? What exactly are online reverse auctions? Businesses will save time and money by automating the reverse dutch auction procedure, which is why reverse auction software integration should be a top priority. Jennifer Doherty Chief Procurement Officer State of Pennsylvania. Thus, phpProBid is a complete auctioning software to develop a website for auction of products. Traditional auctions involve sellers competing to attract buyers, whereas reverse auctions place buyers in a position of power. In response, the Office of Federal Procurement Policy issued a memorandum on June 1, 2015, entitled Effective Use of Reverse Auctions. Click anywhere outside this form to close. This helps ensure that buyers can find a great product or service at the lowest possible price. In this message, the DoD outlines what it needs and by when and invites interested contractors to submit price proposals within a set time frame. Helping us get some quick wins with small purchases, cleared the way for larger transactions and more significant savings., Procurement Commissioner City of Philadelphia, The savings were so significant working with Procurex, that we were able to accelerate our purchase of buses that the schools needed., Gary Appenfelder Director of Purchasing Nashville Public Schools, Working with Procurex is like getting extra staff members. Krystle is particularly good at building collaborative teams with the right skills to ensure optimal success with client projects. The opposite process happens in a reverse . Learn more here. A decade ago, when Bret took over Procurex, reverse auctions were used almost exclusively for low-level commodity goods and designed primarily to secure the lowest-cost vendor. Reverse Auction is a tool available for the procurement in improving its function as well as its effectiveness. documents in the last year, 663 Any price or proposal information or source selection information received by the reverse auction service provider in relation to the reverse auction shall not be released, outside of the Government. Six agencies were identified as the largest users of reverse auctions, conducting approximately 15,000 reverse auctions in 2016. For others, it is a game changer. Submit comments in response to FAR case 2015-038 to http://www.regulations.gov. Reverse auctions typically take place online through specialized platforms. It means that rather than buyers, sellers bid prices for items. corresponding official PDF file on govinfo.gov. They take what we would do for a normal RFP and get it ready for a reverse auction for us. We bring 20 years of reverse auction experience to the table - expertise that has saved clients millions of dollars. Forward Auction : The Forward auction are electronic auctions, which can be used by sellers to sell their items to many potential buyers. The OFR/GPO partnership is committed to presenting accurate and reliable As a college student studying economics at Penn State University and working part-time at a retail store, Bret became a top performing salesperson, outpacing even the full-time managers. Quickly identify auctions where vendor outreach may be limited, vendor participation is low, or when vendors get stuck in certain stages of the auction process. U.S. Department of Defense, Office of Small Business Programs. Reverse auction processes shall not be used for. headings within the legal text of Federal Register documents. ", "Your software is great! What would typically take hours upon hours of analysis and scenario modeling work to review, can now be evaluated in a matter of minutes. Over our many years in the field, weve probably run a reverse auction for it or something very similar. In contrast, a reverse auction involves buyers submitting bids for products and services, with the lowest bidder winning the contract. Please cite FAR Case 2015-038., DoD, GSA, and NASA are proposing to revise the FAR in response to Government Accountability Office (GAO) report, GAO-14-108, Reverse Auctions: Guidance is Needed to Maximize Competition and Achieve Cost Savings, dated December 2013, and GAO report 18-446, Reverse Actions: Additional Guidance Could Help Increase Benefits and Reduce Fees, dated July 2018. Reverse auctions have become a popular tool for businesses to increase competition and get better deals from vendors. FAR 17.000(d) is added to include reverse auctions in the list of special contracting methods in part 17.Start Printed Page 78817.
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