19.2 Reverse auctions

19.2.5 "Best value" reverse auctions

"Best value" reverse auctions, when properly utilized, can result in agencies being able to procure a better overall technology value for certain IT commodities. Agencies can realize technology cost savings through "real time" competition during the course of a reverse auction.

Best value technology procurements place importance on factors other than price, such as total cost of ownership (TCO). The agency may establish source selection criteria in advance of the reverse auction with potential suppliers. By doing so, the agency can be assured of being able to efficiently evaluate the bids received to determine which bid represents the "best value" for the Commonwealth. In utilizing "best value" reverse auctions, agencies should follow these guidelines:

  • "Best value" source selection and evaluation criteria may be established with input from potential qualified suppliers in advance of the reverse auction.
  • Source selection criteria will be made available to all prequalified or potential suppliers prior to the auction.
  • Potential qualified suppliers will provide standardized offerings electronically in advance of the reverse auction for all factors other than price.
  • Agencies will evaluate factors other than price prior to the reverse auction.
  • The agency then performs an integrated evaluation of both price and factors other than price to quantify which supplier is offering the best value.