eAuctions

Whilst the term eAuctions or ‘reverse auctions’ may have been heard for several years, there are many buying organisations that have yet to use the tool. Additionally, there are suppliers who have not yet tendered for business through this increasingly popular addition to a procurement professionals toolkit.

The basic function of an eAuction is to allow pre-qualified suppliers to submit a bid via an online auction, conducted in a secure and professional environment. The key advantage for the public sector is that this comes at the end of the current PQQ and ITT process. The eAuction does not remove the need for a comprehensive specification and can be coupled with the use of ‘Most Economically Advantageous Tender’ (MEAT) scoring to ensure a decision based on the criteria defined by the buyer.

An eAuction would be held after the tender submission stage, allowing suppliers to understand their ranking based on their original offer. The suppliers are then given the opportunity to change their price (not quality, as this has been accepted in ITT stage) either based on their starting rank or in response to a competitor’s bid. The aim is to have a ‘win win’ conclusion with a sustainable and mutually beneficial outcome.

Do you have questions regarding the use of an eAuction? We may have answered a few already, however please contact xchangewales@wales.gsi.gov.uk if you would like to discuss this exciting service further and how the xchangewales eSourcing team can support you.