Chapter 19 - Public, Online and Reverse Auctions

19.2.6 “Lowest price” reverse auctions

A “lowest price” reverse auction may be utilized to achieve procurement savings for general technology commodities, where there is little product and supplier differentiation and where product price is the only selection criterion. “Lowest price” reverse auctions should be utilized when: 

•  There is little concern about production specifications or the performance history of the qualified suppliers participating in the auction. 
• Comparable bids are expected to be tendered from many suppliers. 
• A complete invitation to qualify (IFQ) has been performed which prequalified suppliers based on ability to deliver known technology product.  

Potential suppliers are invited to bid on specified technology goods and services through real-time electronic bidding. The IFQ is a solicitation process similar to a request for bid or request for proposal, through which potential suppliers are prequalified to participate in a reverse auction. Only those suppliers that meet the requirements of the IFQ and agree to the terms and conditions contained therein are invited to participate in the reverse auction. Some terms and conditions may be negotiated before the invitations to qualify are issued to potential suppliers. 

In a low price reverse auction suppliers may be given 10 calendar days’ notice of reverse auctioning opportunities through eVA. Potential suppliers will receive detailed specifications and requirements, along with the terms and conditions relevant to the technology goods or services being purchased. If an IFQ is utilized, the agency should notify responding suppliers as to whether they have met the qualifications and criteria to be prequalified to participate in the reverse auction. Names of those suppliers that have been invited to or prequalified for the reverse auction will not be disclosed until after the reverse auction has occurred.