"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: