17.803
Applicability
Reverse auctions are strictly prohibited for design-build construction, architect-engineer services, sealed bidding, and certain PPE acquisitions as specified by law.
Overview
FAR 17.803 specifies the types of procurements where reverse auction processes are prohibited. This section is critical for contracting professionals to ensure compliance with federal acquisition regulations when considering reverse auctions as a procurement method. It lists specific contract types and situations where reverse auctions cannot be used, including design-build construction, architect-engineer services, sealed bidding, and certain acquisitions of personal protective equipment (PPE) as mandated by various National Defense Authorization Acts (NDAAs).
Key Rules
- Design-Build Construction Contracts
- Reverse auctions are not permitted for design-build construction contracts (see FAR 36.104).
- Architect-Engineer Services
- Procurements for architect-engineer services subject to 40 U.S.C. chapter 11 are excluded from reverse auction use (see FAR 36.601).
- Sealed Bidding Procedures
- Reverse auctions cannot be used for procurements conducted under sealed bidding procedures (see FAR Part 14).
- Acquisition of Personal Protective Equipment (PPE)
- Reverse auctions are prohibited for PPE acquisitions covered by specific NDAA sections and related statutes.
Responsibilities
- Contracting Officers: Must ensure reverse auctions are not used for the prohibited contract types and situations listed in this section.
- Contractors: Should be aware of these restrictions and not propose or participate in reverse auctions for the specified procurements.
- Agencies: Must enforce compliance and provide oversight to prevent misuse of reverse auction processes in these areas.
Practical Implications
- This section exists to protect the integrity and appropriateness of procurement methods for certain sensitive or specialized acquisitions.
- It impacts daily contracting by requiring careful review of contract type and statutory restrictions before selecting a reverse auction process.
- Common pitfalls include inadvertently applying reverse auctions to prohibited procurements, which can result in protests, contract invalidation, or compliance violations.