52.217-10
Reverse Auction
FAR 52.217-10 requires offerors to agree to participate in reverse auctions, where offered prices are visible to all participants (without revealing identities), and mandates strict protection of sensitive information throughout the process.
Overview
FAR 52.217-10 establishes the rules and procedures for conducting reverse auctions in federal acquisitions. A reverse auction is a competitive process, typically using an electronic platform, where offerors can see competing prices (but not identities) and submit lower bids until the auction closes. This provision outlines the government's intent to use reverse auctions, the offeror's agreement to participate, procedures for withdrawal, handling of single-offer scenarios, and the protection of sensitive information during the process.
Key Rules
- Reverse Auction Definition and Use
- Defines reverse auction and reverse auction service provider; clarifies that the government may use this method to award contracts or BPAs.
- Offeror Participation and Agreement
- Submission of a quote or proposal constitutes agreement to participate; offerors can withdraw before the auction closes by notifying the contracting officer.
- Disclosure of Prices
- The government may reveal offered prices to all participants (without disclosing identities), except for the awardee after award.
- Single Offer Scenario
- The government reserves the right to cancel the auction if only one offer is received.
- Information Protection
- Reverse auction service providers must protect proposal and source selection information, only releasing it as required by law.
Responsibilities
- Contracting Officers: Must ensure proper use of reverse auctions, manage offeror communications, and protect sensitive information.
- Contractors: Must agree to auction terms, may withdraw before auction close, and should protect proprietary information.
- Agencies: Oversee compliance with information protection and auction procedures.
Practical Implications
- This provision enables transparent, competitive pricing while protecting offeror identities and sensitive data. Contractors must be prepared for dynamic bidding and understand withdrawal procedures. Common pitfalls include misunderstanding disclosure rules or failing to withdraw properly if desired.