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Electronic Reverse Auction

METHODS OF SUPPLY wiz-icon1

19.10. Electronic Reverse Auction

An entity may engage in procurement by means of an electronic reverse auction under the following conditions:

  • it is feasible for the entity to formulate a detailed description of the subject matter of the procurement;
  • there is a competitive market of suppliers or contractors and it is anticipated that the suppliers or contractors will qualify to participate in the electronic reverse auction thereby ensuring effective competition; and
  • the criteria to be used by the procuring entity in determining the successful submission are quantifiable.

REVERSE AUCTION PROCESS EXPLAINED

The CIG uses a 2-step procurement process in its reverse auction process.

The methodology secures responses that may include initial pricing in Step 1 and final pricing in Step 2 as outlined below which allows only qualified bidders to participate in the reverse auction.

REVERSE AUCTION LIFECYCLE