Press Releases

Government Launches New 'Electronic Reverse Auction' Framework

Ref: 21/03

The Office of Government Commerce (OGC) has today announced the names of the 5 suppliers who will form its new Framework Agreement, designed to supply Electronic Reverse Auction services to the public sector.

Electronic Reverse Auctions offer a simple and efficient way for government to harness the opportunity offered by the web to improve how they purchase products and services.

Electronic Reverse Auctions also increase competitive edge and will demonstrably deliver more value-for-money to the public purse. The main benefit is a much more transparent process that removes constraints from suppliers eager to put forward their best bids for government business.

Commenting on today's announcement, OGC Chief Executive Peter Gershon said:

"The Electronic Reverse Auction is an effective tool for delivering significant value for money gains across the entire public sector. It enables government purchasing staff to undertake faster and more transparent contract negotiations, which is beneficial for both suppliers and buyers alike. I expect that as take up of reverse auctions increases, UK public procurement will become increasingly synonymous with competitiveness and efficiency."

Executive Director of OGC's Supplier & Government Marketplace Directorate, Martin Sykes said:

"These framework agreements give government and the wider public sector access to the best resources available in support of Electronic Reverse Auctions. Procurement staff now have a very effective addition to the tools available to help achieve value for money. Used wisely, the payback should prove to be good for the taxpayer."

Electronic Reverse Auctions differ from traditional auctions in that suppliers bid against each other to offer the lowest bid for a particular contract. Public sector buyers monitor the various bids over the course of the auction until all bidders have reached their final offer.

Average savings for the public sector from the use of Electronic Reverse Auctions are currently estimated at approximately 25% when viewed against traditional paper-based tender processes, with the potential for far higher savings dependent upon the type of goods or services being tendered for. Value-for-money features are not about price alone and are equally likely to be demonstrated in improved quality and service.

The process also ensures total transparency for the buyer and suppliers taking part in the bidding and guarantees security and anonymity for both via secure Internet access.

NOTES TO EDITORS

The Framework Agreement will be managed by OGC's commercial trading arm, OGCbuying.solutions (www.ogcbuyingsolutions.gov.uk).

The full list of Suppliers to the Framework is as follows:

BravoSolution

Achilles

Trading Partners

BT

WIPRO

Established in April 2000, the Office of Government Commerce (www.ogc.gov.uk) was set up to act as a catalyst in procurement issues and to work with civil departments to achieve best value for money in their commercial activities. Responsible for civil central government procurement policy and Best Practice including Construction, Property Management, IT, Supplier Relations including opening up government contracts to SMEs, e-commerce including the Government Procurement Card, the Gateway Review Process, OGCbuying.solutions, including the development of Government buying catalogues such as G-Cat, L-CAT and S-Cat and developing strategic procurement partnerships with the private sector.

Press enquiries to Martin Day on 020 7271 1318 / Martin.day@ogc.gsi.gov.uk or Julie Morgan on 0151 672 2298 / julie.morgan@ogcbs.gsi.gov.uk