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Chapter 19 - Public, Online and Reverse Auctions

19.2 Reverse auctions

19.2.8 The reverse auction schedule

The reverse auction will run for a set duration. The auction duration may be extended based on a low price entered in the last minute of the auction. A minimum price reduction will be required to extend the auction. Agencies may, utilize a “minimum bid step” wherein each successive bid must differ from the previous bid by an amount known as a minimum bid step. For example, a further reduction of a certain percentage amount or greater in price is required to extend the auction period. The minimum bid step amount will be determined by the agency in advance of the auction and may be different depending on what is being auctioned. In most cases, the minimum bid step will be an amount less than (“bid decrement”) the previous bid. The minimum bid step will be included in the posted reverse auction solicitation. However, in some cases, such as when bids are given as a percent off manufacturer’s list price, the minimum bid step will be an amount greater than (“bid increment”) the previous bid (e.g., 15 percent off is a better price than 10 percent off). 

Agencies may also utilize an “extension activation period” (EAP) during its reverse auction procurements. The EAP is defined as the number of minutes before the end of an auction, during which, if a bid is received, the agency may choose to extend the auction by a pre- defined number of additional minutes (“the extension”). For example, if the auction parameters are: EAP for three minutes, Extension for five minutes, if a bid is placed within the last three minutes of an auction, the auction would be extended for an additional number of minutes. This process would continue until no more bids were received. 

The award will be made to the lowest responsive and responsible supplier immediately after the auction is completed. The award will be posted on eVA for a minimum of ten (10) calendar days. There is no mandatory public opening of the IFQ responses if an IFQ is held prior to the reverse auctioning event. There is also no mandatory public viewing of the reverse auction event. However, IFQ responses and reverse auction logs are considered public record. Upon request, they will be made available to the public after an award has been made. 

Clarifications, negotiations, and acceptance of all specifications, requirements, terms and conditions, etc., will occur before the supplier is invited to participate in a reverse auction event. After the auction, the agency will permit such changes only with the limitation that the change(s) do not alter the scope or content of the original reverse auction solicitation to a degree that will affect the justification that was used to eliminate other industry partners from being included in the reverse auction. Changes to the specifications or terms and conditions will not be accepted after bidding if those changes in a submitted bid would have rendered the bid unresponsive. 

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