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eAuction FAQs

The Reverse eAuction Service Framework Agreements is managed by Buying Solutions on behalf of OGC. Under the Frameworks, public sector organisations can contract managed Reverse eAuction and associated support services from an approved service provider.

For specific details on procuring Reverse eAuctions services under the Framework Agreement, please see Buying Solutions.

Frequently asked questions

How do Reverse eAuctions work?

The Reverse eAuction event is conducted on-line with pre-qualified suppliers being invited to compete on predetermined and published award criteria. A Reverse eAuction can be on any combination of criteria, normally converted to a 'price equivalent'. Bidders are able to introduce new or improved values to their bids in a visible and competitive environment. The procedure and duration of the event will be defined before the Reverse eAuction commences. There will be a starting value that suppliers will bid against until the competition closes. The eAuction will be a key stage in the contracting process.

What goods or services would be suitable for Reverse eAuction?

Most procurements that are of sufficient value to attract competition, with a requirement that can be accurately specified and for which there is a competitive market can be suitable for a Reverse eAuction. For further guidance there is a tool that will help with the decision making process.

 

At what stage during my primary procurement would I use the services of a Reverse eAuction supplier?

As soon as you have identified a requirement or registered that a contract is coming up for renewal you need to start planning your Reverse eAuction as part of your procurement. This will include selecting an auction provider.

 

Who else uses eAuctions?

eAuctions are increasingly being adopted by major players in industry and in the public sector. eAuctions are firmly built into the procurement strategies of many private sector companies to source direct materials, products and services and support services. They are increasingly used to support management of the supply chain and are not strategically restricted to primary suppliers. Both central civil government and wider public sector organisations are building eAuctions into their sourcing activities.

 

Is there any help available to assist me in deciding which procurements are suitable for reverse auctions?

Yes, there is an eAuction Decision Tool on the OGC website that provides assistance in evaluating whether an eAuction is suitable for an intended procurement. See OGC eAuctions guidance and the eAuction Decision Tool.

 

Are eAuctions compliant with the EU Directives?

The framework was advertised in OJEU and has been established in accordance with UK procurement legislation and forthcoming EU directive. The correct use of eAuctions is entirely compliant with both current legislation and the new EU public procurement legislative package, which specifically features eAuctions. The EU favours the use of eAuctions because of their transparency and strong competitive element.

 

What is the typical cost of running an eAuction?

The cost of running an eAuction varies depending upon the complexity of any given situation but the pricing schedules for the Buying Solutions framework are available online or by contacting the Customer Service Desk on 0870 268 2222.

 

Are eAuctions specifically about forcing down prices?

No. The use of an eAuction in no way impacts upon Governments' policy to award contracts on the basis of the most economically advantageous tender. An eAuction does offer the buyer the opportunity to arrive either at or close to the true market price in an efficient and transparent way, but does not encourage suppliers to submit bids at unsustainable levels.

 

What are the first steps that I should take if I am considering using eAuctions?

If you have not done so already then you should identify your upcoming purchasing requirements and contact Buying Solutions about using the framework. You should also incorporate a statement within all future procurement adverts that provides you with the option of using an eAuction, to the effect that you reserve the right to use an electronic reverse auction(s) as part of the procurement process.

 

Are eAuctions a hi-tech fad or are they here to stay as part of government procurement?

The inclusion of a specific article on eAuctions in the new EU public procurement legislative package indicates that they are here to stay. This is supported by the EU's enthusiasm for eAuctions in public procurement because of their transparency and the strong competitive element. On a UK level the initial Buying Solutions framework is in place for four years, which demonstrates the Government's commitment to their use.

 

I am a local authority. May I use the framework?

Yes. The framework is open for the use of any public sector body.

 

I am a charity. May I use the framework?

Most charities are able to access Buying Solutions framework agreements. Please contact the Customer Service Desk on 0870 268 2222 to check your eligibility.

 

Can I simply pick a provider from the framework or do I have to run a mini-competition?

You can select a Reverse eAuction service provider directly, providing the choice can be justified on value for money grounds. You may want to talk to more than one provider or run a mini-competition depending on your own departmental policy and procedures.

 

Where can I get more information on Reverse Auctions?

Further information and case studies on the use of eAuctions can be found in eProcurement: Cutting through the hype (PDF, 790KB). Additional examples of eAuctions that have been successfully carried out within central civil government can be found on our website under Case Studies.

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