eAuctions

What is it? / How does it work?

eAuctions Processes

There are two main 'models' of auction process:

Assessment based solely on aspects of tenders submitted in the eAuction - entails all of the aspects of the tender being submitted through the auction itself. Typically applied where lowest price is the award criteria but may include non-price aspects expressed as price-equivalents where MEAT applies. In this process tenderers will know how their tender is ranked and will know at the conclusion whether they have submitted a winning tender.

Prior assessment of aspects of the tender submitted outside the eAuction - award on the basis of aspects submitted before and during the auction and is applied where MEAT criteria is used. Non-auction aspects are evaluated prior to the auction and converted into a price equivalent, and then translated into a formula using weightings. The auction aspects are then converted to reflect this. As with the first model, tenderers will know if they have submitted a winning bid at the end of the eAuction. This process is commonly called 'Transformational Bidding'.

Legal Issues

There is no general prohibition on the use of eAuctions with the Open and Restricted procedures in accordance with the EC Directives on Supplies and Services, Utilities and Works. If departments are in any doubt about whether to use eAuctions in a specific situation they should consult their legal advisers.

The eAuction Decision Tool in the following section provides general and indicative information to contracting authorities considering whether to use electronic reverse auctions as part of a procurement exercise. Contracting authorities are responsible for ensuring that any procurement exercise is conducted in accordance with applicable legislation, value for money and best practice.OGC does not accept any liability to any person in respect to the use of this tool or information provided by the tool.