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
