MakeorBuy

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Reverse Auction Richard Crafton,
C.P.M. Manager, Procurement Reengineering Westin
ghouse Savannah River Company Co-Chair
Procurement Evaluation and Reengineering Team
(PERT) [phone] richard.crafton_at_doe.gov
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Reverse Auction Is NOT a procurement process
IS a negotiation tool It IS an online auction,
over the internet, for specific goods and/or
services with multiple suppliers, simultaneously
bidding to meet buyers spec. submitting multiple
bids over time to reduce their prices to be
more competitive with other bidders (prices move
downward).
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• Additional Knowledge
• Award can be based on low price / best value /
  sample approval / quality approval / site
  inspection.
• Suppliers bidding can be selected /limited or
  open/unlimited
• can establish a formula for bidding and forward
  pricing
• can request initial bids and option to award on
  first bid
• can request bids to determine the competitive
  range
• can establish a reserve price starting price
• does not apply to all procurements
• Far part 15 revised

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WSRC Reverse Auction

• OBJECTIVE
• To pilot the Reverse Auction Process

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• Identified Specifications
• Senior Project Controls Engineer/Estimators
• Job Description/Criteria
• Two year period
• Best value procurement
• Selected Sources
• Five existing sources
• All small business concerns
• Had price history / current market

6

• Selected a Provider
• Provide a web site
• Training / instructions
• Simulation
• Support service varies
• Detailed procurement research
• Electronic chalkboard
• Prior to Auction
• RFP issued for resumes and initial prices
• Provided specification and contract terms
• Advised best value procurement
• Addressed problems and clarifications
• Communication between sources and provider
• Established time and web address

7

• Auction
• Sign on at start time
• Lots identified
• Sign on and bid
• Bids show on screen
• Bidders identity not visible to others
• Bidders identity visible to buyer
• Bidding continues to closing hour
• Extended five minutes from last bid
• Award
• Based on best value

8

• Conclusion
• Process was simple
• Minimal effort required
• Good negotiation tool
• Increase potential savings
• 1st DOE service/best value reverse auction

9
Reverse Auctions Volume BuyingContinuing
Procurement Reform ConferenceSponsored
byGSA/Federal Technology Servicewith support
from the Air Force and Navy
Corporate Sponsors
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• Organizational Sponsors
• Aronson, Fetridge, Weigle
• Input
• Presented by
• Potomac Forum, Ltd.
• Event Planning and Market Research Support by
• Market Access International, Inc.

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Reverse Auction Volume Buying Continuing
Procurement Reform Conference GSA Federal
Technology Service Dr. Ken Oscar, OMB,
Administrator, Office of Procurement Policy
(Acting) RADM Bill Jenkins, SC, USN, Deputy for
Acquisitions and Business Management, Assistant
Secretary of the Navy Col. Jeffrey Parsons,
USAF, Office of the Assistant Secretary
(Acquisition), Office of the Secretary of the Air
Force Ed Elgart, U.S. Army, Director of
Acquisitions, CECOM, Dept of Army Matt Blum,
OMB, Office of Procurement Policy Steven Kelman,
prior Administrator of the Office of Federal
Procurement Policy in the Office of Management
and Budget
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