Reverse Auctions
FAR Subpart 17.8 provides the rules and procedures for using reverse auctions in federal procurement to ensure fair competition and best value.
Overview
FAR Subpart 17.8 establishes the regulatory framework for the use of reverse auctions in federal procurement. Reverse auctions are competitive, real-time electronic processes where suppliers compete to provide goods or services by lowering their prices. This subpart outlines the scope, definitions, policy, applicability, procedures, and required solicitation provisions and contract clauses for reverse auctions. It provides guidance to contracting officers and contractors on when and how reverse auctions may be used, ensuring transparency, fairness, and compliance with federal acquisition policies. The subpart also addresses the necessary steps for conducting reverse auctions, including solicitation, evaluation, and award procedures, as well as the inclusion of specific contract clauses to govern the process. Its purpose is to promote competition and achieve best value for the government through the effective use of reverse auction techniques.
Key Rules
- Scope and Definitions
- Clarifies what constitutes a reverse auction and the types of acquisitions covered.
- Policy and Applicability
- Establishes when reverse auctions are appropriate and the types of contracts to which they apply.
- Procedures
- Details the steps contracting officers must follow to conduct a reverse auction, including solicitation, evaluation, and award.
- Solicitation Provisions and Clauses
- Requires the inclusion of specific provisions and clauses in solicitations and contracts involving reverse auctions.
Responsibilities
- Contracting Officers: Must determine appropriateness, follow prescribed procedures, and include required clauses.
- Contractors: Must understand and comply with reverse auction processes and requirements.
- Agencies: Oversee the proper use of reverse auctions and ensure compliance with FAR policies.
Practical Implications
- This subpart exists to ensure reverse auctions are used effectively and fairly in federal procurement.
- It impacts daily contracting by introducing electronic, competitive pricing mechanisms.
- Common pitfalls include failing to follow required procedures or omitting necessary contract clauses, which can lead to protests or contract disputes.