52.217-11
Reverse Auction—Orders
FAR 52.217-11 sets clear rules for contractor participation, price visibility, and information protection in government reverse auctions for orders under contracts or BPAs.
Overview
FAR 52.217-11 establishes the rules and procedures for conducting reverse auctions when awarding orders under contracts or blanket purchase agreements (BPAs). 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 clause outlines contractor participation, withdrawal procedures, information disclosure, and the use of reverse auction service providers.
Key Rules
- Reverse Auction Authorization
- The Contracting Officer may use a reverse auction to award orders under contracts or BPAs.
- Contractor Agreement to Participate
- Submission of a quote or proposal in response to a reverse auction solicitation constitutes agreement to participate in the auction.
- Price Disclosure
- The Government may reveal offered prices to all participants during the auction, but not the identities of the offerors (except for the awardee after award).
- Withdrawal from Auction
- Contractors may withdraw from the auction by notifying the Contracting Officer before the auction closes, using the method specified in the solicitation.
- Auction Cancellation
- If only one offer is received, the Government may cancel the auction.
- Use of Service Providers and Information Protection
- The Government may use a reverse auction service provider, and all bid/proposal information must be protected from disclosure except as required by law or as necessary for the auction process.
Responsibilities
- Contracting Officers: Decide whether to use a reverse auction, ensure proper disclosure of prices, manage withdrawals, and protect sensitive information.
- Contractors: Agree to auction terms by submitting offers, may withdraw participation as specified, and must identify any restricted information.
- Agencies: Ensure reverse auction service providers comply with information protection requirements.
Practical Implications
- This clause enables more competitive pricing for government orders and increases transparency in the bidding process. Contractors must be aware that their prices will be visible to competitors (without identity disclosure) and must follow specific procedures to withdraw from participation. Proper handling of sensitive information is critical to maintain compliance and protect proprietary data.