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  • Question

    What is the directive that allows DOD to utilize FEDBID?


    Answer

    The Office of Federal Procurement Policy (OFPP) issued a memo dated 1 June 2015 with the subject Effective Use of Reverse Auctions. The memo reviews the benefits of reverse auctions and offers a set of reminders to help contracting officers maximize the value of the tool.  The GAO also published a report on 9 December 2013 noting the increased use of reverse auctions at a number of agencies.  FedBid meets all of the requirements of the Federal Acquisition Streamlining Act of 1994.  Federal Acquisition Regulations (FAR) no longer prohibit auctions and, in fact, encourage innovative procurement techniques such as Reverse Auctions. In addition, within the last few years, the federal government has explicitly embraced e-commerce initiatives through legislation, such as the E-Government Act of 2002 (PL 107-347), and policy memoranda, such as a May 12, 2004 memo, issued by Office of Procurement Policy and linked on FedBid’s website, which encourages agencies to utilize commercially available online procurement tools, including reverse auctions. In 2005, both GAO (MTB Group, Inc., B-295463) and the Court of Federal Claims (MTB Group, Inc. v. United States) upheld the validity of reverse auctions in federal procurement.  You can also explore the GSA’s reverse auction tool at the GSA website to facilitate requests and submission of quotes for simple commodities and services through GSA Multiple Award Schedules (MAS) and Blanket Purchase Agreements (BPAs).


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